# DLAD PART 8 – REQUIRED SOURCES OF SUPPLIES AND SERVICES

- SUBPART 8.4 – FEDERAL SUPPLY SCHEDULES

- 8.400 DoD electronic mall (EMALL).
- 8.400(90) DoD EMALL.
- 8.404 Using schedules.

- 8.405-70 Additional ordering procedures.
- 8.406-1(90) Virtual prime vendor solicitations.
- 8.406-4 Termination for cause.

- SUBPART 8.6 – ACQUISITION FROM FEDERAL PRISON INDUSTRIES, INC.

- 8.600-90 Definitions.

- 8.602 Policy.
- 8.604 Ordering procedures.

- 8.604-90 Pricing policies for awards to Federal Prison Industries, Inc. (FPI).

- 8.605 Clearances.

- SUBPART 8.7 – ACQUISITION FROM NONPROFIT AGENCIES EMPLOYING PEOPLE WHO ARE BLIND OR SEVERELY DISABLED

- 8.702 General.

- SUBPART 8.8 – ACQUISITION OF PRINTING AND RELATED SUPPLIES

- 8.802 Policy.

- SUBPART 8.70 – COORDINATED ACQUISITION

- 8.7002 Assignment authority.

- 8.7002-2 Requiring department responsibilities.

- 8.7004 Procedures.

- 8.7004-2 Acceptance by acquiring department.
- 8.7004-3 Use of advance military interdepartmental purchase requests (MIPRs).

- SUBPART 8.72 – [RESERVED]
- SUBPART 8.73 – USE OF GOVERNMENT-OWNED PRECIOUS METALS

- 8.7300 General.
- 8.7302 Policy.
- 8.7303 Procedures.
- 8.7305 Solicitation provisions and contract clauses.

PART 8 – REQUIRED SOURCES OF SUPPLIES AND SERVICES

TABLE OF CONTENTS

SUBPART 8.4 – FEDERAL SUPPLY SCHEDULES

8.400 DoD Electronic Mall (EMALL).

8.404 Using schedules.

8.405-70 Additional ordering procedures for services.

8.406 Ordering activity responsibilities.

SUBPART 8.6 – ACQUISITION FROM FEDERAL PRISON INDUSTRIES, INC.

8.600-90 Definitions.

8.602 Policy.

8.604 Ordering procedures.

8.604-90 Pricing policies for awards to Federal Prison Industries, Inc. (FPI).

8.605 Clearances.

SUBPART 8.7 – ACQUISITION FROM NONPROFIT AGENCIES EMPLOYING PEOPLE WHO ARE BLIND OR SEVERELY DISABLED

8.702 General.

SUBPART 8.8 – ACQUISITION OF PRINTING AND RELATED SUPPLIES

8.802 Policy.

SUBPART 8.70 – COORDINATED ACQUISITION

8.7002 Assignment authority.

8.7002-2 Requiring department responsibilities.

8.7004 Procedures.

8.7004-2 Acceptance by acquiring department.

8.7004-3 Use of advance military interdepartmental purchase requests (MIPRs).

8.702 General.

SUBPART 8.72 – [RESERVED]

SUBPART 8.73 – USE OF GOVERNMENT-OWNED PRECIOUS METALS

8.7300 General.

8.7302 Policy.

8.7303 Procedures.

8.7305 Solicitation provisions and contract clauses.

SUBPART 8.4 – FEDERAL SUPPLY SCHEDULES

(Revised August 15, 2011 through PROCLTR 2011-31)

8.400 DoD electronic mall (EMALL).

8.400(90) DoD EMALL.

(91) General.

DoD EMALL, https://dod-emall.dla.mil/acct/, is a DoD web-based eCommerce electronic ordering site that allows authorized users to search, compare, and purchase commercial and non-commercial products through a single interface. Customers include Federal and, when authorized by law, state and local users. DoD contractors may also be authorized to order on DoD EMALL pursuant to FAR Subpart 51.1.

(92) Policy.

DLA HQ J71 will provide contracting guidance for DLA’s enterprise use of DoD EMALL. Only DLA, Military Service, or GSA assigned/managed items shall be available for ordering on DoD EMALL. “Open market” catalogs, which are catalogs of products not under contract with DLA, a military service, or GSA, are not permitted on DoD EMALL. DLA Logistics Information Service will remove all open market catalogs currently on DoD EMALL. The DoD EMALL ordering system will inform all buyers that it is their responsibility to comply with applicable contracting regulations before making DoD EMALL purchases. The DoD EMALL ordering systems will, to the extent practical, automatically enforce applicable ordering rules (such as competition requirements).

(93) Responsibilities.

The Office of the Secretary of Defense (AT&L/Defense Procurement and Acquisition Policy) is the DoD Executive Agent for DoD EMALL, responsible for issuing overarching DoD EMALL policy, and DLA has responsibility for DoD EMALL operations. DLA’s responsibility for DoD EMALL operations is divided as follows: DLA Logistics Information Service, DLIS – DoD EMALL operations program manager; DLA HQ J71 – DLA DoD EMALL contracting policy; DLA Land and Maritime – DLA DoD EMALL contracting; J8 – DoD EMALL program funding; J6 – DoD EMALL IA/IT architecture; DLA Contracting Services Office – DoD EMALL infrastructure/operations support contracting.

(94) Contracting.

(a) The DLA Land and Maritime Enterprise contracting office, the DLA Center of Excellence (COE) for DLA’s DoD EMALL contracting operations, is responsible for DLA contracts that will be specifically awarded for placement on DoD EMALL (DoD EMALL contracts). The DoD EMALL contracting office shall establish contracts only for DLA-assigned/managed items. The DoD EMALL contracting office shall use the 1971 delegation of authority from GSA (Appendix 7, DoD 4140.1-R) to establish Federal Supply Schedule (FSS)-type contracts to the maximum extent practicable. The schedule groupings will be based on product type and other relevant considerations. The DoD EMALL contracting office will consider applicable guidance and clauses in the GSA Acquisition Manual (GSAM) and GSA contracting practices in establishing FSS-type contracts, although use of specific GSA clauses, procedures, and practices is discretionary, and these should be used only if found to be in the best interest of the Government. The DoD EMALL contracting office shall comply with FAR Part 38 in establishing FSS-type contracts.

(b)(i) The DoD EMALL contracting office must concur with DLIS rules of governance to which contractors will be held; (ii) Before DLIS may remove a contract from DoD EMALL, the DoD EMALL contracting office must have determined that a termination of the contract is appropriate and initiated termination of the contract, and (iii) the DoD EMALL contracting office will include in DoD EMALL contracts a requirement that contractors comply with DLIS rules of governance.

(c) Qualified product list and critical safety items shall not be included in DoD EMALL contracts. Other types of items, such as body armor, may be prohibited from placement on DoD EMALL contracts. DLIS should perform a preliminary review of catalogs to ensure part numbered items are cross-referenced to NSNs. Similar reviews should be performed periodically by DLIS after a contract has been established and throughout the life of the contract. DLA managed stocked NSNs should not be included on a DoD EMALL contract, unless that contract is placed within a unique ordering corridor available only to DLA personnel. The DoD EMALL contracting office, in coordination with DLA HQ J71, will develop lists of such prohibited items and enforce that list. Contracts awarded for purposes other than placement on DoD EMALL may be made available for ordering through DoD EMALL, and the item restrictions in this paragraph are not applicable to orders placed through DoD EMALL against these non-DoD EMALL contracts.

(d) Each supply chain shall review and approve their respective items for inclusion on DoD EMALL contracts. The supply chain may delegate in writing to the DoD EMALL COE for contracting the authority to include their respective items unless instructed otherwise by that supply chain. Additionally, each supply chain shall designate a DoD EMALL point of contact to the DoD EMALL program office and the DoD EMALL COE for contracting for processing reviews and approvals and to serve as a conduit for working issues related to the DoD EMALL program.

(e) A valid price analysis technique shall be used to determine price reasonableness of DoD EMALL contracts in accordance with FAR Subpart 15.4. Price analysis is required because DoD EMALL contracts are not directly competed on a price basis before being added to DoD EMALL. The statistical sampling approach in 15.402-91 is one such approach that could be used. Once a viable pricing software tool is validated (approved), the information from the tool may also be used for determining the price reasonableness of DoD EMALL contracts.

(95) Ordering.

Ordering against DoD EMALL contracts is subject to FAR Subpart 8.4, and in particular to the requirements in FAR 8.404, 8.405, and 8.406, and to DFARS Subpart 208.4 for orders over the Simplified Acquisition Threshold (SAT). Orders against non-DoD EMALL contracts available for ordering on DoD EMALL are subject to the ordering requirements applicable to the particular contract.

8.404 Using schedules.

(a) General. The use of Federal Supply Schedules does not obviate the need for conducting a bundling or consolidation analysis for acquisitions described in FAR 2.101 (definition of “single contract,” paragraph (3) of the bundling definition) or DFARS 207.170-2 (definition of “multiple award contract” within the definition of consolidation). See, generally, sections 7-107 and 7.170.

8.405-70 Additional ordering procedures.

(c)(l) The requirement from Section 803 of the FT 2002 National Defense Authorization Act (P.L. 107-107) to provide for notice to “as many (schedule) contractors as practicable” can be fulfilled by using the General Services Administration’s e-Buy web site at www.gsaAdvantage.gov. E-Buy is an electronic RFQ system that automatically notifies vendors of solicitations from agencies for goods and services.

(90) For additional requirements pertaining to use of Federal Supply Schedules, see Subpart 7.90.

8.406-1(90) Virtual prime vendor solicitations.

Use 52.208-9002, Defense Logistics Agency Mandatory Source Requirements, in all virtual prime vendor (VPV) type solicitations which include items that DLA has awarded on requirements contracts or when the required source of supply is Federal Prison Industries (FPI), National Industries for the Blind (NIB) or National Industries for the Severely Handicapped (NISH).

8.406-4 Termination for cause.

(e)(90) Reporting. If the reporting requirement in FAR 8.406-4(e) is applicable, contracting officers are responsible for ensuring the termination data is reported in the FAPIIS module of the PPIRS using the procedures at PGI 8.406-4(e)(90).

SUBPART 8.6 – ACQUISITION FROM FEDERAL PRISON INDUSTRIES, INC.

8.600-90 Definitions.

"Current market price (CMP)," as used in this subpart, means the actual current price for purchase of the item in the competitive market place in the quantities normally bought and sold and at customary terms and conditions. If actual sales prices are unavailable or nonexistent, the CMP means a price which is estimated in a similar manner as prescribed in FAR 19.807(b) and (c) (but see restriction on price comparisons in FAR 15.404-1(b)(90)(2)(ii)).

"Unrestricted," as used in this subpart, refers to the portion of the acquisition not purchased from FPI, whether or not a set-aside has been made. (See Part 19).

8.602 Policy.

(a) The contracting officer must use the results of market research (see 10.001(a)(2)(93)) to determine the comparability of the FPI product, considering all three areas of price, quality, and time of delivery. In other than automated acquisitions, the contracting officer shall document in writing the basis for the comparability determination, to include the significance of each factor under the circumstances of the acquisition. The comparability determination must be retained in the contract file. The contracting officer is strongly encouraged to consult with counsel on acquisitions stemming from such comparability determinations.

(i)(90) Use the provision at 52.208-9001, Acquisition of Federal Prison Industries Items, for acquisitions valued below the simplified acquisition threshold that involve items listed on the FPI Schedule when the solicitation will also serve as a market research tool. FPI will receive an order if its items are found comparable to items from private sources.

(91) If, despite the comparability of the FPI product, the contracting officer nevertheless concludes that purchase of the item from a private-sector source is in the best interests of the Government (e.g., for readiness or industrial-base reasons), a clearance may be pursued from FPI in accordance with FAR 8.605.

(ii)(90) Competitive buys are subject to set-aside requirements, except that FPI will be solicited and permitted to compete, and could still receive the award, in acquisitions of these items that are otherwise set aside for small business participation. Small business concerns must be notified of this possibility when set-asides are used under these circumstances. See 19.502-1(b)(90).

(a)(90) In no event shall a unit price higher than the highest award price, adjusted for any significant differences between the buys, be considered to be the current market price. Exclude a high price if resulting from a distressed bid, or bidder's mistake, or if the award price was inflated because of additional requirements.

(a)(91) In addition to assuring that the award price to FPI does not exceed the current market price, the contracting officer shall:

(i) Request FPI to furnish its cost estimate (FPI Form 73, Unit Cost Estimate) with supporting documentation (material quotes, etc.) for all first time buys and whenever current actual market prices are unavailable or when there is basis for concern regarding an FPI quote;

(ii) Consider requesting FPI to furnish its cost history (FPI Form 9, Production Order and Cost Sheet) for the most recently completed contract(s) for the item (if none, for the most comparable item), along with identification of any apparent errors;

(iii) Obtain an independent cost/price analysis of purchases estimated to exceed $200,000 and other actions as deemed appropriate ( but see 15.404-1(a)(90)(1)(ii) and 15.404-1(a)(90)(2)). Coordinate price or cost/price analyses (FAR/DFARS/DLAD 15.404-1(b) and (c))-3) performed on other large purchases with the cost and price analysis element;

(iv) Establish prenegotiation objectives as appropriate considering whether the objective is based on pricing data or on cost data plus a weighted guideline profit analysis (see DFARS 215.404-72 for non profit organizations);

(v) Negotiate with FPI to assure price reasonableness (see FAR 15.405(d)(90), and that the price does not exceed the current market price. Elevate negotiation to higher levels of management as necessary;

(vi) Document the price reasonableness determination in the contract file; and

(vii) Refer instances of unreasonable price which cannot be corrected to a higher authority in accordance with FAR/DLAD 15.405(d)(90). Include a price survey of other potential suppliers and a recommendation concerning whether a clearance request to purchase the item competitively is warranted and needed (FAR 8.605 and 8.606).

(a)(92) When the price comparison involves Government-furnished material or property (GFM or GFP), differences in transportation costs for the GFM or GFP shall be considered. Also consider differences in Government transportation costs of end items to the same destination points and any variations in the percentages of GFM usage and/or operating and maintenance costs of GFP.

8.604 Ordering procedures.

(b)(90) Contracts and orders to FPI shall be on an f.o.b. origin basis unless otherwise specified.

(c)(90) Ceiling priced awards.

(i) The clause at 52.208-9000, Price Adjustment on Federal Prison Industries, Inc. (FPI) Contract/Order, may be utilized only if (i) the contract/order will be issued to FPI at a fair and reasonable price that does not exceed the estimated current market price; (ii) the contracting officer completes action specified in 8.602(a)(91)(vii); and (iii) the chief of the contracting office determines in writing that ordering the urgently needed Schedule item cannot be further delayed and approves such award.

(ii) After issuing a contract/order containing the clause at 52.208-9000, the contracting officer shall brief the chief of the contracting office or designee of efforts to reach an agreement as to the current market price reduction applicable thereto. Agreements reached shall be confirmed by a revision to the contract/order stating the applicable price and removing the clause at 52.208-9000.

(iii) Efforts to obtain agreement may continue up to the time of inspection and acceptance of the first delivery. If agreement has not been reached by that time, the case shall be submitted by the chief of the contracting office (not delegable, except that the Executive Director for Procurement at DLA Aviation may further delegate this authority to the Deputy Executive Director for Procurement and the chief, Base Support Division without power of redelegation) to DLA HQ, attention: J73 as unresolvable and shall contain a detailed explanation of the factors used in determining the current market price and/or reasonable price which were not acceptable to the FPI.

8.604-90 Pricing policies for awards to Federal Prison Industries, Inc. (FPI).

(a)(1) Prices in awards to FPI for the partial or total quantity of an acquisition shall not exceed current market prices.

(2) On acquisitions involving multiple awards to both commercial contractors and to FPI of a mandatory item, the current market price will be a price considered by the contracting officer to reflect current market levels, but in no event a unit price higher than the highest award price made on the unrestricted portion adjusted for applicable cost factors, unless it is determined that the price was the result of a distressed bid, bidder's mistake, or inflated because of Department of Defense requirements. In awards involving multiple destinations, each destination, for purposes of determining the price to be paid FPI, shall be considered a separate award. The term "unrestricted" as used in this part refers to the portion of the acquisition not purchased from FPI, whether or not a small business set-aside has been made.

(3) When a contract action involves allotment to FPI of the entire quantity of the required item and current market quotations are not available, prior contract prices (adjusted to reflect changes in market prices of components since the last contract and differences in any other cost factors, e.g., labor, operating supplies, employee fringe benefits) shall be used as the basis for determining the current market price.

(4) Awards to FPI shall be on a free on board (f.o.b.) origin basis unless otherwise specified.

(5) Prices for FPI contracts shall be rounded off to the nearest mil.

(b) The cost of transportation of Government furnished property to both FPI and to commercial contractors shall be excluded. Differences in Government transportation costs of end items to the same destination point under FPI award and under awards to commercial contractors shall be included. Also, variation in the cost of Government furnished property, based on stated percentages of usage of Government-furnished property allowances, shall be included.

(c) Firm delivery orders shall be given to FPI promptly upon determination of the quantity to be awarded FPI. The following procedures are to be utilized in determining prices to be included on these delivery orders:

(1) When a concurrent commercial contract is being made, the price quoted by FPI shall be cited on the delivery order and the clause at 52.208-9000 shall be included in the order. In the event the current market price determined by the contracting officer under the "unrestricted" acquisition is lower than the quoted FPI price, adjustment shall be made to the lower price; provided, however, that in the time elapsed between the delivery order to FPI and the opening date on the "unrestricted" portion, there has been no significant change in market conditions. Should there have been a significant change in market conditions, the current market price for an FPI order will be determined under the provisions of subparagraph (a)(3), above.

(2) When the circumstances described in subparagraph (a)(3) above exist, immediate action shall be taken to determine the current market price. Should that price be lower than the quoted price, prompt contact shall be made by the most expeditious means with the FPI and the circumstances and factors used in the determination explained. Should an agreement not be reached as to the current market price within 5 consecutive days from the date of contact, the order shall be promptly issued on the basis of the current market price determined by the contracting officer, and the clause set forth at 52.208-9000, Price Adjustment on Federal Prison Industries, Inc. (FPI) Delivery Orders, shall be included on the FPI delivery order.

(3) After issuance of a delivery order containing the clause at 52.208-9000, every effort will be made by the contracting officer to reach an agreement as to the current market price applicable to the order. Agreements reached shall be confirmed by a revision to the delivery order stating the price applicable to the order, and rescission of the clause at 52.208-9000.

(4) Efforts to obtain agreement, to include exchange of data on which the current market price was based, may continue up to the time of inspection and acceptance of the first delivery. If agreement is not reached by that time, the case shall be submitted to DLA HQ, attention: J73, as unresolvable, and shall contain a detailed explanation of the factors determining the current market price which was not acceptable to the FPI.

8.605 Clearances.

(a)(2) Waiver procedures and a waiver form can be found at internet address: http://www.unicor.gov/customer/waiverform.htm. The mail address for waiver requests is:

UNICOR Customer Service Center

P.O. Box 13640

Lexington, KY 40583-3640

(a)(90) To expedite the determination of FPI’s capability and capacity to produce an item, a cooperative interface should be established between FPI's staff and center technical staff.

(91) See 7.104 for guidance on industrial preparedness planning in connection with requirements that are being considered as an item of supply for FPI.

(c)(90) Use of the alternative dispute resolution process established by FPI should be considered whenever a clearance is denied. Waiver appeal request forms, at www.unicor.gov/unicor/appeal.html, may be addressed as follows, with an information copy provided the local SADBU:

Ombudsman

Federal Prison Industries

320 First Street NW

Washington, DC 20534

The ombudsman may also be contacted at telephone: (202) 305-3515; fax: (202) 305-7340.

SUBPART 8.7 – ACQUISITION FROM NONPROFIT AGENCIES EMPLOYING PEOPLE WHO ARE BLIND OR SEVERELY DISABLED

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8.702 General.

(90) It is DLA policy not only to cooperate fully with the Committee for Purchase from People Who Are Blind or Severely Disabled (the Committee), its Central Nonprofit Agencies (CNAs) (namely, the National Industries for the Blind (NIB) and NISH - formerly, the National Industries for the Severely Handicapped), and the individual nonprofit agencies (previously known as workshops and/or work centers) in accordance with statutory mandates, but also to provide the maximum practicable opportunity by which these “AbilityOne”, (formerly called Javits-Wagner-O’Day Act (“JWOD”)) entities may become full partners in DLA's reengineered business processes at either the prime or subcontract level.

(91) Contractor participation in a program of support for “AbilityOne” entities shall be the focus of an evaluation factor to be included in solicitations or other announcements for contracting arrangements which use source selection procedures. The contracting officer shall use an evaluation factor encouraging the maximum practicable use of “AbilityOne ” entities as subcontractors (i.e., beyond statutorily mandated use of these entities by prime contractors; see FAR 8.001(c)). This factor shall apply to all source selections where the resultant contract is expected to exceed $500,000, unless omission is approved by the chief of the contracting office. (Inclusion of this coverage in solicitations below $500,000, though optional, is encouraged in all appropriate circumstances.) Proposals that demonstrate a strong commitment to affording “AbilityOne ” entities a real opportunity to participate in the Government contracting arena, including prime vendor and virtual prime vendor arrangements, shall be rated more favorably than those that demonstrate little or no such commitment. See 15.304(c)(91).

(i) The contracting officer should consult with the local office of counsel prior to making this evaluation factor more important than other socioeconomic factors, to ensure that it does not displace any other factors required by statute or overall DoD policy.

(92) In making decisions whether to exercise options on contracts, the contracting officer shall evaluate whether a firm has or has not performed in accordance with its commitment to use of “AbilityOne” entities. Field elements of the Defense Contract Management Agency shall be used to assist in assessing a contractor's compliance with these requirements.

(93) See 15.304(c)(91) for the prescription for use of solicitation provisions 52.215-9004, Javits-Wagner-O'Day Act Entity Proposal, and 52.215-9005, Javits-Wagner-O'Day Act Entity Support Evaluation.

(94) For applicable contract actions, the contracting officer shall provide incentives for prime contractors to subcontract with “AbilityOne” entities, even when they are not statutorily obligated to do so. These contract actions include:

(i) Evaluation of current or proposed participation in this program of support for “AbilityOne” as an independent factor (separate from any overall past performance evaluation factor) in source selection;

(ii) Use of “AbilityOne” entities under previous contracts as part of the overall past performance evaluation factor in source selection;

(iii) Evaluation of present performance regarding subcontracting with “AbilityOne” entities in determining placement of orders under multiple-award contracts; and/or

(iv) Consideration of contractor present and past performance with reference to “AbilityOne” entities in the exercise of options for the follow-on years of long-term contracts.

(95) In order for determinations to be made regarding the efficacy and viability of this coverage, each contracting activity shall, ten days after the end of each fiscal quarter, submit a report to J71 indicating the percent change in the extent of non-mandatory prime contractor support (i.e., percent of total subcontracting dollars) for “AbilityOne” entities.

SUBPART 8.8 – ACQUISITION OF PRINTING AND RELATED SUPPLIES

8.802 Policy.

(a) Policy and procedures for the acquisition or production of printing are contained in DLAI 5330.1, Publications, Forms, Printing, Duplicating, Micropublishing, Office Copying, and Automated Information Management Programs.

SUBPART 8.70 – COORDINATED ACQUISITION

8.7002 Assignment authority.

(a)(4) Exclusions to Defense Logistics Agency or General Services Administration Assignments by Agreement. All proposed agreements in accordance with DFARS 208.7002(a)(4) to permit a Military Service to acquire Military Service-managed items for which the estimated obligation of a one-time authorization will exceed $150,000, or when the annual obligations are expected to exceed $150,000 for a continuing authorization, shall be submitted for review and approval by DLA HQ, attention: J71, prior to consummation of the agreement. Continuing authorizations will not be granted for periods exceeding 12 months, notwithstanding the amount of estimated annual obligations. Requests shall be submitted by letter in sufficient detail to support the proposed agreement and shall be signed at a level no lower than the Chief of the Contracting Office.

8.7002-2 Requiring department responsibilities.

(a) Requisitions for metalworking machinery in FSG 34 should be submitted to DLA Aviation-JHCA to determine availability of comparable idle assets and initiation of a purchase request. Local procurement is prohibited unless a local procurement authorization request has been submitted to and approved by DLA Aviation -JHCA.

8.7004 Procedures.

8.7004-2 Acceptance by acquiring department.

(a) Upon receipt, MIPRs and other requests for non-DLA managed items should be routed directly to individuals responsible for procurement, as determined appropriate locally, for processing. Simultaneously, such requests will be routed for review by staff elements with corollary interest (operational, functional or policy-type offices having oversight responsibility for technical/quality issues), as necessary. The contracting officer or designated acceptance official shall request that reviewing elements furnish comments within 10 days. This must be done within 20 days of receipt of the MIPR, in order to meet the 30 day acceptance time-frame. The acceptance official will act as the team leader to obtain any necessary advice and counsel from local experts in order to accomplish the acquisition mission successfully.

(90) Each procurement, whether covering a military service-managed or DLA-managed item, will take its priority position based on the factors surrounding the particular procurement and not on the type of item or origin of the purchase request.

8.7004-3 Use of advance military interdepartmental purchase requests (MIPRs).

(f) Actions in accordance with DFARS 208.7004-3 may be taken by a defense supply center (DSC) upon receipt of an advance MIPR (or similar type purchase request), provided the purchase request contains a statement reading essentially as follows: "A firm requirement exists for the item(s) contained in this MIPR; purchase of the items will be supported by the commitment of funds which are expected to be made available (within the next *** days)/(prior to the end of this fiscal year)." Any other written advice from the requiring activity that the requirement is firm and that there is a reasonable expectation that funds will be made available for obligation purposes against the specific advance MIPR, may be accepted in lieu of a statement embodied in the MIPR. This advice will be used as the basis to proceed with the purchase action up to the point of award.

(1) Invitation for Bids (IFBs) or Request for Proposals (RFPs) issued on the basis of unfunded advance MIPRs shall clearly state that no awards will be made until such time as funds become available for obligation purposes. (See FAR 32.703-2.)

(2) In instances such as those authorized herein, the requiring activity will be notified of the scheduled award date of the IFB or RFP and that, if funds are not made available by that date, the solicitation may be canceled. The scheduled award date may be extended at the discretion of the contracting office.

(3) If a requiring activity indicates that funds will not be forthcoming, the solicitation shall be canceled. All offerors shall be notified immediately of such cancellation (see FAR 14.404-3). If the solicitation is canceled prior to the solicitation opening or closing date, unopened offers shall be returned to offerors.

SUBPART 8.72 – [RESERVED]

SUBPART 8.73 – USE OF GOVERNMENT-OWNED PRECIOUS METALS

(Revised 3/22/2012 through PROCLTR 2012-30.)

8.7300 General.

(a) Recovery and utilization of precious metals (silver, gold, platinum, palladium, rhodium, iridium) from scrap materials.

(1) DoD has assigned DLA the mission to reclaim precious metals from precious metal bearing scrap and waste materials, and to make available reclaimed precious metals as Government-Furnished Property (GFP) in acquisition of items containing precious metals. This section implements DoD Directive 4160.22, Recovery and Utilization of Precious Metals, which establishes DoD policy governing the management of the recovery and the use of precious metals derived from precious metal bearing scrap and waste materials generated by all elements of DoD worldwide.

(2) DLA is assigned the responsibility for managing the overall program and has designated DLA Disposition Services as the activity charged with the responsibility for managing the retrieval and refining of precious metals. DLA Troop Support has been assigned the supply management function for precious metals.

8.7302 Policy.

(a) All DLA elements generating precious metal bearing scrap and waste materials shall establish and operate an internal program to assure the economical reclamation of precious metals, consistent with the overall DoD policy of effecting maximum use of excess property to meet DoD needs. Recovered precious metals, after refinement, will be made available to DoD elements for their use as Government furnished property (GFP) to reduce new acquisition costs.

(b) Responsibilities. Supply chain HCAs, or for those DLA activities not designated as a contracting activity (see DFARS 202.101), the Commander, Director, or Administrator, are responsible for the following:

(1) Reporting precious metal bearing scrap and waste materials to the DLA Disposition services manager.

(2) Taking appropriate disposition action, including shipping, based on direction from the DLA Disposition services manager.

(3) Using the refined precious metals maintained in storage by the DLA Troop Support precious metals inventory manager, as GFP, whenever feasible, for contracts requiring use of precious metals.

8.7303 Procedures.

Follow the procedures at PGI 8.7303 for the precious metals recovery program. The procuring contracting officer (PCO) shall provide instructions to the administrative contracting officer (ACO) for metal disposal upon completion of the contract.

8.7305 Solicitation provisions and contract clauses.

(a) To maximize participation in the precious metals recovery program, the acquisition specialist shall follow the procedures at DFARS Subpart 208.73 and DLAD PGI 8.73, and add the following clause and provision as prescribed in paragraphs 8.7305(a)(1)-(2).

(1) Insert the clause at 52.208-9007, Precious Metals (Government-Furnished Property), in all solicitations and contracts except as provided in 8.7305(a)(1)(i)-(iii). When this clause is used, insert the clauses at FAR 52.245-1 and DFARS 252.208-7000 in the solicitation and contract. Do not insert the clause:

(i) When the contracting officer has determined that the required precious metals are not available from DLA Troop Support (see PGI 8.7303(a));

(ii) When the contracting officer knows that the items being acquired do not require precious metals in their manufacture (i.e., when precious metals indicator code (PMIC) is “A, item does not contain precious metal”); or

(iii) For acquisitions at or below the simplified acquisition threshold.

(2) Insert the provision at 52.208-9008, Evaluation of Offers for Items Containing Precious Metals, in all solicitations except as provided in 8.7305(a)(2)(i)-(iii). When this provision is used, insert the clauses at FAR 52.245-1 and DFARS 252.208-7000 in the solicitation.

(i) When the contracting officer has determined that the required precious metals are not available from DLA Troop Support (see PGI 8.7303(a));

(ii) When the contracting officer knows that the items being acquired do not require precious metals in their manufacture (i.e., when precious metals indicator code (PMIC) is “A, item does not contain precious metal”); or

(iii) For acquisitions at or below the simplified acquisition threshold.

(a)(S-90) When 252.208-7000 and 52.245-1 were incorporated in the solicitation, however, the contracting officer has later determined no GFP or precious metals will be furnished on the award, the contracting officer may use 52.208-9003 Precious Metals Not Furnished in the contract.