# DLAD PART 51 – USE OF GOVERNMENT SOURCES BY CONTRACTORS

- SUBPART 51.1 – CONTRACTOR USE OF GOVERNMENT SUPPLY SOURCES

- 51.100 Scope of subpart.
- 51.101 Policy.
- 51.102 Authorization to use Government supply sources.
- 51.103 Ordering from Government supply sources.

PART 51 – USE OF GOVERNMENT SOURCES BY CONTRACTORS

TABLE OF CONTENTS

SUBPART 51.1 – CONTRACTOR USE OF GOVERNMENT SUPPLY SOURCES

51.100 Scope of subpart

51.101 Policy

51.102 Authorization to use Government supply sources

51.103 Ordering from Government supply sources

SUBPART 51.1 – CONTRACTOR USE OF GOVERNMENT SUPPLY SOURCES

51.100 Scope of subpart.

For DLA, Government sources of supply include items in DLA inventories and on existing DLA contracts. (For DLA-managed items, this includes items coded with acquisition advice codes D (centrally managed, stocked, and issued); H (direct vendor delivery, non-stocked items); and, Z (numeric stockage objective (NSO) items).

51.101 Policy.

(a)(4) A class deviation permits DLA contracting officers to authorize DLA contractors access to DLA-managed items under other-than cost-reimbursement contracts.

51.102 Authorization to use Government supply sources.

(a)(i) A class deviation to FAR Part 51.101(a) permits DLA contractors to access DLA sources of supply when such use is specifically authorized in their DLA contracts. This access will integrate advantageous pricing and/or delivery terms into DLA’s new business arrangements.

(a)(ii) This deviation shall not apply to commodities where contractor access to discounted or favorable pricing is prohibited by law, such as pharmaceuticals.

(e)(4) Contractor access to DLA sources of supply is limited to DLA-managed national stock numbered (NSN) or part numbered (P/N) items provided to DoD customers that are specifically authorized under the DLA contract. Supplies accessed under this authority may only be used in the performance of the contract that authorizes the access. The contract should specify any ceiling quantities that may apply to an item. Authorization must be limited to stocked items or items available under existing DLA contracts. DLA contractors will be authorized access to DLA sources of supply for NSN(s) or P/N(s) only when the contracting officer can clearly demonstrate a benefit to the Government as outlined in FAR 51.102(a). The rationale supporting this decision will be coordinated with the managing Inventory Control Point (ICP), documented in writing for each NSN or P/N, signed by the contracting officer, approved by the procuring ICP director of contracting, and included in the contract file.

(f)(1)(a)(i) The authorizing ICP shall ensure contractors order only DLA-managed items as authorized in the contract, including, as a minimum, that supplies sold are used only in the performance of authorized contracts and, any benefit from this use is passed on to the Government.

(f)(1)(a)(ii) To demonstrate the benefits of permitting contractor access to Government sources of supply, the price of each item obtained from a Government source of supply should be the Government price charged to the contractor plus a handling fee determined fair and reasonable by the contracting officer. Items contractors order must be reconciled against items authorized in their contracts. Periodic reconciliation of the quantities DLA sold to the contractor with the quantities of those same items the contractor supplied to DoD customers, or holds under surge responsibilities, under the authorizing contract will provide the visibility needed to monitor contractor’s usage and trigger appropriate action for improper use. In the case of improper use, the contracting officer shall determine the appropriate corrective action.

The contract shall include language requiring the contractor to ensure that, as the contract nears completion, no purchases are made that would result in Government supply source items remaining with the contactor after contract completion. The contracting officer should also monitor performance to ensure this is not occurring. Special provisions must be made for surge items.

51.103 Ordering from Government supply sources.

(d) When contractor use of a DLA-managed supply source is determined to be the best value, considering price, delivery and other factors, contract language should hold the contractor responsible to meet the delivery requirements whether or not Government supply sources are used. Failure to meet the contract delivery requirements is a contractor caused delay.