# DLAD PART 1 – FEDERAL ACQUISITION REGULATIONS SYSTEM

- SUBPART 1.1 – PURPOSE, AUTHORITY, ISSUANCE

- 1.101 Purpose.
- 1.104 Applicability.
- 1.105 Issuance.

- 1.105-1 [Reserved.]
- 1.105-2 Arrangement of regulations.
- 1.105-3 Copies.

- 1.108 FAR conventions.
- 1.170 Peer reviews.

- SUBPART 1.2 – ADMINISTRATION

- 1.201-90 Maintenance of the DLAD.
- 1.201-91 Amendment of regulations.
- 1.201-92 DLAD changes.
- 1.201-93 Dissemination and effective date of the regulation (including appendices, revisions, supplements, and manuals).

- SUBPART 1.3 – AGENCY ACQUISITION REGULATIONS

- 1.301 Policy.

- 1.301-90 Procurement letters (PROCLTRs).
- 1.301-91 Contracting office guidance.
- 1.301-92 Contracting office provisions and clauses.

- 1.304 Agency control and compliance procedures.
- 1.390 [Reserved.]

- SUBPART 1.4 – DEVIATIONS FROM THE FAR

- 1.403 Individual deviations.
- 1.404 Class deviations.
- 1.490 Submission of requests for deviations.
- 1.491 Control of deviations.
- 1.492 Streamlined solicitation for DLA Energy contracts (Deviation).
- 1.493 [Reserved]

- SUBPART 1.5 – AGENCY AND PUBLIC PARTICIPATION

- 1.501 Solicitation of agency and public views.

- 1.501-2 Opportunity for public comments.

- 1.590 Changes in contracting processes, techniques, or methods.

- SUBPART 1.6 –CAREER DEVELOPMENT, CONTRACTING AUTHORITY AND RESPONSIBILITIES

- 1.601 General.

- 1.601-90 Critical acquisition responsibilities.
- 1.601-91 Contract quality management plan.

- 1.602 Contracting officers.

- 1.602-1 Authority.
- 1.602-2 Responsibilities.
- 1.602-2-90 Selection, appointment, evaluation, and termination of appointment of contracting officers' representatives (CORs).
- 1.602-3 Ratification of unauthorized commitments and quantum meruit actions.
- 1.602-90 Nonappropriated funds.

- 1.603 Selection, appointment, and termination of appointment.

- 1.603-1-90 General.
- 1.603-3-90 (a) Contracting Officer’s Ordering Representatives.
- 1.603-3-90 (b) Micro-purchase contracting authority.

- 1.690 Contract clearance and oversight.

- 1.690-1 General.
- 1.690-2 Policy.
- 1.690-3 Establishment of clearance approval authority.
- 1.690-4 High-visibility (Hi-Viz) acquisitions.
- 1.690-5 Special interest acquisitions.
- 1.690-6 Acquisition review.
- 1.690-7 Acquisition strategy review panel (ASRP) and integrated acquisition review board (IARB).

- 1.691 Legal review.
- 1.692 Confirmation of quantity and technical requirements.

- SUBPART 1.7 – DETERMINATIONS AND FINDINGS

- 1.703 Class determinations and findings.
- 1.704 Content.

- SUBPART 1.9 – ADMINISTRATION OF DLAD

- 1.900 Administration and explanation.

PART 1 – FEDERAL ACQUISITION REGULATIONS SYSTEM

TABLE OF CONTENTS

SUBPART 1.1 – PURPOSE, AUTHORITY, ISSUANCE

1.101 Purpose.

1.104 Applicability.

1.105 Issuance.

1.105-1 Publication and code arrangement.

1.105-2 Arrangement of regulations.

1.105-3 Copies.

1.108 Federal Acquisition Regulation (FAR) conventions.

1.170 Peer reviews.

SUBPART 1.2 – ADMINISTRATION

1.201-90 Maintenance of the Defense Logistics Acquisition Directive (DLAD).

1.201-91 Amendment of regulations.

1.201-92 DLAD changes.

1.201-93 Dissemination and effective date of the regulation.

SUBPART 1.3 – AGENCY ACQUISITION REGULATIONS

1.301 Policy.

1.301-90 Procurement letters (PROCLTRs).

1.301-91 Contracting office clauses.

1.304 Agency control and compliance procedures.

1.390 [Reserved.]

SUBPART 1.4 – DEVIATIONS FROM THE FAR

1.403 Individual deviations.

1.404 Class deviations.

1.490 Submission of requests for deviations.

1.491 Control of deviations.

1.492 Streamlined solicitation for DLA Energy contracts (Deviation).

1.493 [Reserved.]

SUBPART 1.5 – AGENCY AND PUBLIC PARTICIPATION

1.501 Solicitation of agency and public views.

1.501-2 Opportunity for public comments.

1.590 Changes in contracting processes, techniques, or methods.

SUBPART 1.6 –CAREER DEVELOPMENT, CONTRACTING AUTHORITY AND RESPONSIBILITIES

1.601 General.

1.601-90 Critical acquisition responsibilities.

1.601-91 Contract quality management plan.

1.602 Contracting officers.

1.602-1 Authority.

1.602-2 Responsibilities.

1.602-3 Ratification of unauthorized commitments.

1.602-90 Nonappropriated funds.

1.603 Selection, appointment, and termination of appointment.

1.603-1 General.

1.603-2 Selection.

1.603-3 Appointment.

1.603-90 Ordering officers.

1.603-91 Micro-purchase contracting authority.

1.603-92 Contracting officer review program.

1.603-93 Selection, appointment, and termination of appointment.

1.690 Clearance and oversight.

1.690-1 General.

1.690-2 Policy.

1.690-3 Establishment of clearance approval authority.

1.690-4 High-visibility (Hi-Viz) acquisitions.

1.690-5 Special interest acquisitions.

1.690-6 Acquisition review.

1.690-7 Acquisition strategy review panel (ASRP) and integrated acquisition review board (IARB).

1.691 Legal review.

1.692 Confirmation of quantity and technical requirements.

SUBPART 1.7 – DETERMINATIONS AND FINDINGS

1.703 Class determinations and findings.

1.704 Content.

SUBPART 1.9 – ADMINISTRATION OF DLAD

1.900 Administration and explanation.

SUBPART 1.1 – PURPOSE, AUTHORITY, ISSUANCE

(Revised September 15, 2011 through PROCLTR 2011-44)

1.101 Purpose.

The Defense Logistics Acquisition Directive (DLAD) is issued by the Director, DLA Acquisition (J7), by authority of the Director, Defense Logistics Agency (DLA). It implements and supplements the Federal Acquisition Regulation (FAR), the Defense FAR Supplement (DFARS), the DFARS Procedures, Guidance and Information (PGI) and other Department of Defense publications and, pursuant to FAR 1.304, establishes DLA procedures relating to the acquisition of supplies and services under the authority of Chapter 137, Title 10 of the United States Code, or other statutory authority. The DLAD is not a stand-alone document and shall be read in conjunction with the FAR, DFARS, DFARS PGI, and the DLA Issuances.

1.104 Applicability.

This directive is applicable to the contracting function at all DLA activities.

1.105 Issuance.

1.105-1 [Reserved.]

1.105-2 Arrangement of regulations.

(c) References and citations.

(2) The Defense Logistics Acquisition Directive 5025.30 shall be referred to as the DLAD.

1.105-3 Copies.

1.105-90 The DLAD and its companion resource, Procedures, Guidance and Information (PGI), are available directly from the public DLA Acquisition Website at http://www.dla.mil/Acquisition (and http://www.dla.mil/Acquisition/Pages/DLADPGIandAppendices.aspx).

1.108 FAR conventions.

(c) The estimated contract value for an award action is to be calculated using the guidance at FAR 1.108(c).

1.170 Peer reviews.

(a) Defense Procurement and Acquisition policy (DPAP) peer reviews.

(1) The peer review program has two levels. The first is the DPAP level and the second is the Agency level. DPAP peer reviews are required for pre and post-award actions as follows – all acquisitions for supplies and/or services valued at $1 billion and greater (including options and surge) and all contracts for services valued at $1 billion and greater (including options and surge). See mandatory procedures for DPAP peer reviews at PGI 1.170.

(2) DPAP rolling forecast requirement. In order to plan for peer reviews at the DPAP level, each activity shall provide information regarding acquisitions that meet the $1 billion threshold. The prescribed format, found in PGI 1.170 (a)(2), is mandatory and shall be used to provide this information to J72 by the 15th of September, December, March, and June every year. The report will be updated every quarter - add a new quarter to and delete the oldest quarter from the forecast each period so it always forecasts a year out.

(90) Defense Logistics Agency (DLA) peer reviews.

(1) The primary purpose of the DLA peer review is to identify best practices and lessons learned. The reviews also ensure that field contracting offices are implementing regulatory requirements in a consistent and appropriate manner across DLA and to improve quality and effectiveness of the DLA contracting process. The peer review program has two levels of review, the first is the DPAP level and the second is the Agency level. This section covers the Agency level peer reviews, which are required for certain pre and post award actions as detailed below.

(2) Candidates for pre-award DLA peer reviews. Each field activity will nominate a pre-award program that will be reviewed by a peer review team after Milestone A IARB and prior to milestone B IARB by August 1st of every year. The information will be provided to the DLA HQ J72 peer review program manager. (Field activities are defined for purposes of the DLA peer review program as the following: DLA Land and Maritime, DLA Mechanicsburg, DLA Warren, DLA Aberdeen, DLA Albany, DLA Aviation, DLA Huntsville, DLA Philadelphia, DLA Warner Robins, DLA Oklahoma City, DLA Ogden, DLA Troop Support, DLA Contracting Services Office, DLA Energy, DLA Distribution, DLA Document Services, DLA Disposition Services, and DLA Strategic Materials. The peer review will take place prior to soliciting but after Milestone A IARB and prior to the Milestone B IARB. Based on the number of field activities the expectation is that DLA will conduct approximately 18 Milestone A peer reviews and 18 Milestone B peer reviews annually.

(3) Candidates for post-award DLA peer reviews. Each field activity (as defined above) will nominate one post-award service contract (unless they do not have any active service contracts) to be reviewed at IARB Milestone C by August 1st of every year. The information will be provided to the DLA HQ J72 peer review program manager. If the only service contract is for an insignificant dollar amount and there are no plans to continue awarding service contracts by the activity, a decision will be made by the DLA peer review program manager if a peer review is worth pursuing. The peer review will take place prior to the IARB at Milestone C. Based on the anticipated activities with service contracts, the expectation is that DLA will conduct approximately 8 Milestone C peer reviews.

(4) Procedures for DLA peer reviews are at PGI 1.170-90.

SUBPART 1.2 – ADMINISTRATION

1.201-90 Maintenance of the DLAD.

1.201-91 Amendment of regulations.

Recommendations for amending the FAR or the DFARS shall be submitted to DLA HQ, attention: J71. Submittals shall be in the form of a memorandum (without signature block) to the Director, DAR Council and be formatted in accordance with the DAR case guidance provided at 90.7. Recommendations for amending the DLAD shall be submitted in the form of a letter signed by the chief of the contracting office and be in the format of I. Problem; II. Recommendation; and III. Discussion.

1.201-92 DLAD changes.

Numbered changes are issued periodically by the Director, DLA Acquisition (J7), to revise and update the DLAD.

1.201-93 Dissemination and effective date of the regulation (including appendices, revisions, supplements, and manuals).

(a) Chiefs of the contracting offices shall ensure that the FAR, DFARS, DFARS PGI, DLAD, and DLA Issuances including revisions, are accessible by all interested individuals..

(b) Compliance with the DLAD, including any revision to the DLAD, shall be permissive on the date of the revision and shall be mandatory 30 days after issuance, unless otherwise provided in the revision.

SUBPART 1.3 – AGENCY ACQUISITION REGULATIONS

(Revised December 27, 2012 through PROCLTR 2013-18)

1.301 Policy.

(a)(1) DLA implementation and supplementation of the FAR, DFARS, and DFARS PGI are contained in the DLAD under the authorization and subject to the authority of the Director, DLA Acquisition (J7). The DLAD contains —

(i) Clear requirements and procedures of law;

(ii) Mandatory DLA-wide policy;

(iii) Deviations from higher level regulations; and

(iv) Designations or delegations of contracting authority.

(2)(i) Relevant procedures, guidance, and information that do not meet the criteria in paragraph (a)(1) of this section are issued in the PGI. The DLAD and its companion resource, the PGI, contain all enterprise-wide policies and procedures relating to the acquisition of supplies and services within DLA, except those that may otherwise reside in other DLA directives, instructions, manuals, handbooks, or other similar documents.

1.301-90 Procurement letters (PROCLTRs).

PROCLTRs are numbered and issued by DLA Acquisition (J7) to provide agency-specific information and procedural guidance to DLA contracting personnel, to emphasize existing policy, to transmit new or changed policy promulgated by the Office of the Secretary of Defense (OSD) or other higher authority, or to make editorial or administrative revisions. PROCLTRs shall expire upon incorporation into the DLAD. PROCLTRs can be accessed and downloaded, by year, from the internet via the common access card (CAC) – enabled DLA Acquisition (J7) section of eWorkplace. See PGI 1.301-90 for procedural guidance on preparation, review coordinations, and issuance of PROCLTRs.

1.301-91 Contracting office guidance.

(a) Procedural guidance relative to the FAR, DFARS, and/or DLAD may be issued by heads of contracting activities consistent with FAR 1.304 and DFARS 201.304. This authority is delegable to the chief of the contracting office without power of redelegation. In addition, the Director, DLA Acquisition (J7), has delegated this authority to the Commander, DLA Disposition Services. Requests for approval of any regulatory document meeting the criteria prescribed in DFARS 201.304(1) and (3) shall be submitted to J71 for submission by the Director, DLA Acquisition (J7), to the DAR council director for approval by the Director, Defense Procurement and Acquisition Policy. The format, general plan, and numbering system of procedural guidance shall be the same as FAR, DFARS, and DLAD.

(b) Defense supply centers and DLA Disposition Services shall furnish DLA HQ, attention: J71, one copy of each procedural instruction for review after publication. Contracting offices need not separately request approval under DFARS 201.304(1) and will, based on the copy of the procedures provided, be advised by letter if the procedure is disapproved.

1.301-92 Contracting office provisions and clauses.

The authority and procedural requirements addressed in (a) through (d) of this paragraph do not apply to either the development or use of a new economic price adjustment (EPA) clause or a revision to an existing EPA clause, which require DLA HQ approval in accordance with 16.203-3-90:

(a) Provisions and clauses that are developed as a result of negotiations or which fulfill a specific and unique requirement of the acquisition, that do not constitute a deviation from higher level regulations or from DLAD, and that do not require the approval of the Director of Defense Procurement and Acquisition Policy (DPAP), shall be approved by the Chief of the Contracting Office (CCO) for essentiality, appropriateness, and sufficiency, and reviewed by cognizant Office of Counsel prior to incorporation into a solicitation or contract. The CCO may delegate this authority to a level no lower than the policy chief. These provisions and clauses can be approved for one time use only, i.e., for use in a single acquisition or contract. One time use provisions and clauses are not assigned DLAD numbers, but shall be identified in accordance with FAR 52.103 by title, date, and name of organization that developed them. Upon approval, a copy shall be forwarded to DLA HQ, attention: J7.

(b) Requests for proposed repetitive use or “substantially the same as” provisions and clauses shall be signed by the cognizant CCO, accompanied by prescriptive language for their use on either an enterprise or non-enterprise basis, and forwarded to DLA HQ, attention: J71, for review and approval prior to implementation. This authority may be delegated to a level no lower than the Policy Chief. The provision or clause shall have been reviewed for legal sufficiency prior to forwarding to DLA HQ. These are provisions and clauses that are not deviations and do not otherwise require approval by DPAP. J71 shall review these provisions and clauses for essentiality, appropriateness, and sufficiency, and shall obtain the concurrence of General Counsel as part of the approval process. The provision or clause will be assigned DLAD numbers when approved for use, and incorporated into the DLAD by numbered procurement letter (PROCLTR).

(c) Requests for substantive changes to existing provisions and clauses shall be signed by the cognizant CCO and forwarded to DLA HQ, attention: J71, for review and approval prior to implementation. CCOs may delegate this authority to a level no lower than the policy chief. They shall have been reviewed for legal sufficiency prior to forwarding to HQ. These are provisions and clauses that are not deviations and do not otherwise require approval by DPAP. J71 shall obtain the concurrence of General Counsel as part of the approval process. These provisions and clauses shall be incorporated into DLAD by numbered PROCLTR.

(d) Requests for minor changes do not require signature by the cognizant CCO or approval by the cognizant Office of Counsel; email requests will be accepted. Such minor changes may include, but are not limited to, changes to addresses, dates, position titles, spelling errors, and typographical mistakes that do not result in any substantive change to policy. These changes may be considered technical edits and may not require approval of General Counsel or incorporation into the DLAD by numbered PROCLTR.

(e) DLA clauses codified in the Code of Federal Regulations shall be numbered using the prefix of 54.

1.304 Agency control and compliance procedures.

(4) The plan required by DFARS 201.304(4) is comprised of 1.301-91, 1.403, 1.404, 1.491 and this section.

(5) Requests for the Secretary of Defense, USD(AT&L), and OUSD(AT&L) DPAP approvals required by DFARS 201.304, shall be signed by the cognizant CCO, reviewed for legal sufficiency, and submitted to DLA HQ, attention: J71, for approval and processing through the Director of the DAR Council. J71 shall obtain the concurrence of General Counsel as part of the approval process. Once the required approvals are obtained, the changes shall be incorporated into DLAD by numbered PROCLTR.

1.390 [Reserved.]

SUBPART 1.4 – DEVIATIONS FROM THE FAR

1.403 Individual deviations.

(a) Except for individual deviations to the coverage listed in DFARS 201.402(1)(i), through (vi), and individual deviations granted in accordance with DFARS 201.403(2), deviations from FAR, DFARS, a Department of Defense Directive, or the DLAD which affect only one contract or transaction, may be made only after approval by the Senior Procurement Executive (SPE).

(b) Requests for deviations to the coverage listed in DFARS 201.402(1)(i) through (vi) shall be submitted to DLA HQ, attention: J71, for submission by the SPE to the DAR council director for approval by the Director, Defense Procurement and Acquisition Policy (DPAP).

1.404 Class deviations.

(a) Requests for class deviations shall be submitted to DLA HQ, attention: J71, for submission to the Director, DLA Acquisition (J7), for approval, or to the DAR council director for approval by the Director, DPAP.

(b) Requests for class deviations pursuant to DFARS 201.404(b)(i) and (ii) shall be submitted to DLA HQ, attention: J71, for submission to the DAR council director for approval by the Director, DPAP, or to the SPE for approval, respectively.

(90) All class deviations for the FAR, DFARS, and DLAD which are required for longer than three years will be incorporated in the DLAD.

1.490 Submission of requests for deviations.

(a) Requests for authority to deviate from the provisions of the FAR or the DFARS shall be submitted to DLA HQ, attention: J71. Submittals shall be formatted in accordance with the guidance at 90.702. Requests for authority to deviate from the provisions of the DLAD shall be submitted in the form of a letter signed by the supply chain head of the contracting activity (HCA) (unless delegated to the chief of the contracting office and be in the format of I. Problem, II. Recommendation, and III. Discussion. The deviation request shall include a statement that the request has been reviewed and concurred in by local counsel. Pertinent comments by local counsel should be forwarded with the request.

(1) Requests for new deviations which will be needed beyond the normal three year expiration period should be submitted to DLA HQ, attention: J71, as permanent deviations to be incorporated into the DLAD. The deviation request shall also include appropriate DLAD language.

(2) Requests for extension of existing deviations should also be requested as permanent DLAD coverage unless superseding regulatory changes are in process.

(b) Requests for class deviations which have a significant cost or administrative impact upon contractors or offerors must be published in the Federal Register. See 1.501-2.

(1) Class deviations for which publication is required should be submitted to J71 in sufficient time to allow for a 60 day public comment period, resolution of public comments, review of the resolved comments by the DAR Council and approval by the Director, DPAP.

(2) If a paperwork reduction or regulatory flexibility analysis is required, additional time should be allowed for these analyses.

(c) For those class deviations which have originated in a DLA field activity and do not have significant cost or administrative impact upon contractors or offerors, the originator will initiate action for renewal or extension, when appropriate, at least 90 days prior to the expiration date.

1.491 Control of deviations.

A register shall be maintained by J71 of the deviations granted to the FAR, DFARS, and DLAD. Each deviation shall be recorded in the register and shall be assigned a control number (i.e., FARS DEV (FAR system deviation) YY-##)). The control number shall be included in the document authorizing the deviation and shall be cited in all references to the deviation.

1.492 Streamlined solicitation for DLA Energy contracts (Deviation).

DLA Energy is authorized to either eliminate or modify various clauses and provisions in buying petroleum, petroleum-related services, and coal. FAR and DFARS clauses/provisions eliminated or modified and DLA Energy clauses which have been modified are listed at 90.13.

1.493 [Reserved]

SUBPART 1.5 – AGENCY AND PUBLIC PARTICIPATION

1.501 Solicitation of agency and public views.

1.501-2 Opportunity for public comments.

(b)(2) Contracting office comments on proposed rules published for public comment in the Federal Register shall be submitted to DLA HQ, attention: J71. J71 will take appropriate action on such comments. Actions may include consideration in DAR council committee, submission to the DLA DAR council policy member for resolution at the DAR council, or consolidation of comments and submission directly to the FAR secretariat or the DAR council case manager.

(S-90) J71 will be the focal point for any Federal register notices of proposed rules submitted by contracting offices requiring the public comment process. The appropriate contracting office will be responsible for the analysis of public comments and the preparation of a final rule. The final rule will be submitted to J71 for review and submission through the DAR council to the Director, Defense Procurement and Acquisition Policy.

1.590 Changes in contracting processes, techniques, or methods.

(a) General. Whenever a contracting office contemplates a significant change in a contracting process, technique, or method which may have a substantial impact on industry and/or the Government, the activity shall promptly notify DLA HQ, attention: J71, of the contemplated change and the reasons for the change. This notification is necessary for DLA HQ to respond to any reactions from industry, the Congress, or the using military departments. In addition, DLA HQ has information which may not be available at the field level and can evaluate the significance of the proposed action to the Agency as a whole. It is essential that DLA HQ know what is contemplated before a significant change is publicized.

(b) Significant changes. Contemplated changes which are significant and which require notification to DLA HQ are (but not limited to) a change in--

(1) A longstanding inspection requirement or procedure;

(2) The method of providing and/or accounting for Government-provided property;

(3) A type of contract which constitutes a significant departure from the acquisition technique previously utilized;

(4) Solicitation techniques and the elements used in evaluation of offers;

(5) The region/area from which acquisition of an item has been previously accomplished;

(6) The location of a contracting office; or

(7) Item specification which prompts a major change in manufacturing and/or processing techniques.

(c) Data to support request. To determine the impact of a contemplated change in contracting method, requests for approval of a proposed change in a contracting method should contain the following information:

(1) A description of the present and proposed contracting methods;

(2) A statement of the difficulties encountered in the use of the present method and/or the improvements foreseen as the result of a change;

(3) A statement as to the degree of impact of the change expected on industry and/or the Government; and

(4) A statement as to the net benefits accruing to the Government as a result of the change.

SUBPART 1.6 –CAREER DEVELOPMENT, CONTRACTING AUTHORITY AND RESPONSIBILITIES

(Revised December 13, 2012 through PROCLTR 2013-03)

1.601 General.

Authority conferred upon the heads of contracting activities (HCA) or the chief of the contracting office (CCO) under any paragraph of the DLAD may be delegated with power of redelegation to other officials, except when specifically limited by law or the provisions of the pertinent DLAD paragraph. The CCO will maintain a list of all delegations and promptly notify DLA HQ, attention: J71, of any changes. Commanders or Directors may serve as the acting supply chain HCA when the supply chain HCA is unavailable. Deputy Commanders or Directors may also serve as the acting supply chain HCA when the Commander or Director and supply chain HCA are both unavailable, by signing as “Acting Commander/Director”. Supply chain HCAs exist in DLA Land and Maritime, DLA Troop Support, DLA Aviation, and DLA Energy.

1.601-90 Critical acquisition responsibilities.

(a) For those supply chains designated as contracting activities (see DFARS 202.101, definition of “contracting activity”), the functions in (b) below are to be performed by the HCA, with further delegation of one or more of the functions in (b) below authorized to no lower than the CCO, at the supply chain HCA’s discretion. For those DLA organizations with the Director, DLA Acquisition (J7) serving as the HCA (see 2.101, definition of “contracting activity”), the functions in (b) below (with the exception of (b)(2)) are delegated to the CCO.

(b) Responsibilities. The HCA is responsible for maintaining oversight of the activity’s procurement function and ensuring the fundamental integrity of the activity’s procurement system. Key functions are to:

(1) Have responsibility for the contract policy, pricing, and clearance and oversight functions.

(2) Serve as the Defense supply center’s clearance authority (see 1.690-3(a)).

(3) Ensure adequate oversight of simplified acquisitions via monthly reviews and internal procurement management reviews (PMRs). (These monthly reviews are separate from the DLA automated procurement systems internal controls (APSIC) process reviews required at mandatory PGI 1.601-90(b).) The HCA shall ---

(i) Ensure that—

(A) Monthly reviews include a representative sample of acquisitions solicited, evaluated and awarded through the automated procurement system;

(B) The sample size is sufficient to achieve a 90% confidence level with a 10% error rate; and

(C) A statistical program such as EZ-Quant is used to compile the sample of acquisitions;

(ii) Require feedback from monthly reviews, and implement corrective actions and training as necessary;

(iii) Expeditiously report issues with regard to any problems with system logic or operations, including known or potential noncompliance with applicable law or regulation, to the DLA Acquisition Policy and Systems Division (J71); and

(iv) Ensure that the APSIC process is supported by appropriate supply chain personnel (see mandatory PGI 1.601-90(b)(3)(iv).)

(4) Ensure that a review and approval channel consisting of DAWIA certified or certifiable 1102s or 1101s in the contracting career path, matrixed if necessary, is in place to provide review and approval of contracting actions specified by regulation. This review and approval channel shall also assist in the resolution of complex contracting issues that are elevated by contracting officers.

(5) Select, appoint, and terminate the appointment of contracting officers when such authority has been delegated to the chief of the contracting office in accordance with 1.603-1.

(6) Manage the activity’s contracting officer warrant program (see 1.603-1(91)). The objective of this program is to ensure that only those officials who fully meet appropriate selection criteria are appointed and retained as contracting officers when an organizational need occurs.

(7) Manage the activity’s contracting officer review program (see 1.603-92).

(8) Ensure compliance with the requirements for evaluations of contracting officers and others in the contracting career field as specified in 1.603-93.

(9) Ensure that contracting personnel, including those in developmental programs, obtain the mandatory training, education, and experience required by DoD Directive 5000.52 to become certified at the appropriate levels as specified in DoD Instruction 5000.66.

(10) Assure that Defense Acquisition University (DAU) course quotas are requested in sufficient numbers to meet training requirements and that these quotas are used or returned in time for the Army training requirements and resources system (ATRRS) to reallocate the spaces.

(11) Ensure that contracting personnel, including supply chain depot level repairable (DLR) and supply, storage, and distribution (SS&D) employees, complete required, approved contract administration and contracting officer representative (COR) training as specified in mandatory PGI 1.601-90(b)(8) and mandatory PGI 1.602-2-90, as applicable for their position(s).

(12) Ensure that all DLA field activities develop a method to track continuous learning points (CLPs) for contracting personnel. Local training coordinators are responsible for monitoring compliance with contract administration training requirements.

(13) Ensure that critical acquisition positions (CAPs) (as designated by the Component Acquisition Executive (CAE)) are filled only by Acquisition Corps members.

(14) Ensure that requests for waiver of CAP requirements are processed through the HCA to the CAE in accordance with DoD Instruction 5000.66, which specifies when the requirement may be waived.

(15) Provide opportunities for both civilian and military members of the AT&L workforce to acquire the education, training, and experience necessary to qualify for senior positions, as required in DoD Instruction 5000.66.

(16) Implement a contract quality management plan that describes how integrity is preserved within the contracting function (see 1.601-91).

(17) Develop and implement a contracting officer representative tracking (CORT) tool deployment plan and strategy with business rules and training as directed in the Under Secretary of Defense, Acquisition Technology and Logistics memorandum dated March 21, 2011, Subject: Deployment of the Department of Defense (DoD) Contracting Officer Representative Tracking (CORT) Tool. Guidance and registration procedures are found at http://www.acq.osd.mil/dpap/pdi/eb/cor.html.

(18) Ensure robust and timely contract management and administration is performed for contingency support contracts, particularly those with performance in the Central Command Area of Responsibility (CENTCOM AOR).

(i) This management and administration shall include training and designating highly qualified contracting officer representatives (CORs) in-theater as well as monitoring their performance.

(ii) Coordinate with the DLA support team (DST) commander on logistical and contractual issues as needed for theater support contracts, since the DST commander has responsibility for all in-theater DLA personnel assets in that DST, to include CORs.

(19) Ensure continuous and adequate oversight of any contractors performing close to inherently Governmental functions, such as inspecting or receiving goods and/or services. Include this oversight as part of the general monitoring of contractor performance. Report and resolve all instances of contractors appearing to perform an inherently Governmental function for a DLA contract to the director or commander of the contracting activity or office.

1.601-91 Contract quality management plan.

(a) Each HCA shall be responsible for a contract quality management plan (CQMP). J73 has developed and maintains the CQMP for DLA Aviation, DLA Land and Maritime, and DLA Troop Support Construction and Equipment. The purpose of the plan is to assure that each HCA has in place an effective management control plan for assuring contracting system controls and integrity and for continuous improvement of contract quality in all phases of the procurement process. The CCO shall develop the plan for and on behalf of the HCA. (See 1.601-90.)

(b) The CQMP shall address the following elements:

(1) A description of the procedures in place assuring that the center senior procurement official (CSPO) has been assigned responsibility for the contract policy, pricing, and clearance and oversight functions (see 1.601-90(b)(1)).

(2) A description of how continuous contract quality improvement will be achieved utilizing the eight contract clearance standards at 1.690-4.

(3) A description of the contracting review and approval channel within the activity. This review and approval channel shall consist of DAWIA certified or certifiable GS-1102s or 1101s in the contracting career path.

(4) A description of the activity’s contracting officer warrant program (see 1.603-1(91)).

(5) A description of the activity’s contracting officer review program (see 1.603-91).

(6) How the contracting activity complies with the requirements for evaluations of contracting officers and others in the contracting career field as specified in 1.603.94.

(7) A description of how the CCO ensures that activity contracting personnel, including those in a developmental program, attend mandatory DAWIA training courses and that they obtain the required education and experience.

(8) A description of how the activity’s DAWIA certification process is managed.

(9) A description of how the activity’s critical acquisition positions are determined and the procedures for processing a waiver request.

(10) A description of how the activity’s program for developing a pool of talent for filling multi-functional supervisory vacancies is managed. (See AQP/MMS letter dated July 14, 1994, subject: Supervisory Development Programs in Commodity Business Units, Commodity Management Groups, and Like Organizations.)

(c) The CQMP and substantial revisions thereto shall be submitted by the HCA for approval by the Director, DLA Acquisition (J7). The plan shall be kept current.

1.602 Contracting officers.

1.602-1 Authority.

(a) Each appointing authority shall prepare and maintain a current listing of all of the activity’s contracting officers and the limits of their authority. This list shall also include the name and location of any contracting officer assigned to an activity but physically located at other than the central activity. The listing shall be in the sample format at (b) below. A copy of this listing will be provided to DLA HQ, attention: J73, annually at the beginning of each fiscal year.

(b) Sample format for listing of contracting officers:

Name | Grade | Date of Current Warrant | Dollar Level | Candidate Selection | Meets Criteria | Interim Appointment
|  |  |  |  | (Yes or No) | (Yes or No)

(c) Contracting officer warrants lists shall be reviewed by J73. The review will include the following considerations: a contracting office's needs for the number and dollar values of warrants relative to the office's size and mission; whether warrants should be limited or unlimited; whether warrants are rescinded when appropriate; whether contracting officers meet the FAR, DFARS, and DLAD selection criteria; the number and duration of waivers to selection criteria; and whether a periodic review of contracting officers warrants by the contracting office has been accomplished.

1.602-2 Responsibilities.

1.602-2-90 Selection, appointment, evaluation, and termination of appointment of contracting officers' representatives (CORs).

(a) Applicability.

(1) This policy applies to all individuals delegated specific duties and responsibilities in writing by the contracting officer regardless of the specific terminology applied to that individual, to include contracting officer's representative (COR), contracting officer's technical representative (COTR), alternate COR (ALTCOR) or assistant COR (ACOR), line item manager (LIM), task order manager (TOM), quality assurance personnel (QAP), quality assurance evaluator (QAE), or technical point of contact (TPOC).

(2) This requirement does not apply to personnel assigned to provide contract administration support under FAR 42.202(a) or quality assurance support under FAR 46.502.

(b) Designation, evaluation, and termination of the designation of the contracting officer’s representative (COR).

(1) The designation, evaluation, and termination of designation of a COR shall be made by the contracting officer after nomination by the requiring activity.

(i) Sample letters of designation and termination with evaluation procedures are found at PGI 1.602-2-90.

(ii) The initial COR designation by the contracting officer shall be made no later than the date of contract award (see DFARS PGI 201.602-2(i)(A)).

(A) The designation shall take into consideration the ability, training, and experience of the COR nominee and shall assure that the nominee is appropriately qualified to act as an authorized representative of the contracting officer.

(B) The individual’s program management skills should also be considered when nominating and designating a COR, if the requirement is complex.

(iii) The contracting officer and COR shall conduct an initial orientation session at the time of designation to jointly discuss the customer’s objectives, scope of the contract with key performance indicators, and how to track and report the contract’s performance metrics.

(2) The COR shall complete approved training prior to being issued a letter of designation. See mandatory PGI 1.602-2-90 for required approved training.

(3) The COR designation shall be in writing by letter from the contracting officer and shall define the scope and limitations of the authorized representative's authority.

(i) Unless the COR’s designation contains other provisions for automatic termination, the designation shall be effective, unless sooner revoked, until the COR is reassigned or the individual's employment is terminated.

(ii) Revocation of a COR’s designation may be effected at any time by the designating or higher authority, or any successor to either. Revocation shall be made in writing by letter.

(c) Compliances and requirements.

(1) The COR shall maintain compliance with DoD Directive 5500.7-R, Joint Ethics Regulation and DoD Regulation 5500.07 Standards of Conduct.

(2) For all contracts over the micro-purchase threshold when a COR is assigned, the COR shall register in the DoD contracting officer’s representative tracking (CORT) tool and adhere to documentation requirements, as stated in the guidance, instructions, and registration procedures found at http://www.acq.osd.mil/dpap/pdi/eb/cor.html.

(3) Requirements related to the duties of a COR for provisioning are addressed at 17.7601-93.

(4) The COR shall be familiar with and utilize the Department of Defense Contracting Officer Representative Handbook in the performance of his/her duties. The guide, dated March 22, 2012, issued by the Director, Defense Procurement and Acquisition Policy, Office of the Undersecretary of Defense (Acquisition, Technology, and Logistics), is found at http://www.acq.osd.mil/dpap/policy/policyvault/ USA001390-12-DPAP.pdf. Further mandatory guidance for CORs is provided in PGI 1.602-2-90.

(5) A COR located in contingency areas of responsibility under the purview of a DLA support team (DST) command shall also be subject to the authority of the DST commander. Mandatory guidance for the contingency CORs is provided in PGI 1.602-2-90(d).

(S-92) For supply chains using any procurement system that utilizes automated solicitation, evaluation, and award processes to execute purchase orders, the CCO shall-

(1) Ensure that any contracting officer whose electronic signature is placed on fully-automated awards and associated acquisition documents has-

(i) Been trained in system logic and the manner in which it is intended to address all regulatory requirements associated with solicitation, evaluation, and award (see mandatory PGI at 1.601-90(b)(3)(iv)); and

(ii) Designated the system in writing as the contracting officer’s electronic agent for the purposes of soliciting, evaluating, and awarding purchase orders and consented in writing to the application of his/her electronic signature on fully-automated awards generated by the system (see mandatory PGI at 1.602-2(92));

(2) Maintain records documenting that the requirements at 1.602-2(92) have been met (see mandatory PGI at 1.602-2(92)); and

(3) Ensure when a designated automated systems contracting officer is replaced that the requirements of this section are satisfied with regard to the replacement contracting officer, and that the system is immediately updated to use the electronic signature of the replacement contracting officer.

1.602-3 Ratification of unauthorized commitments and quantum meruit actions.

(a) Definitions.

“Unauthorized commitment”, see FAR 2.101.

“Quantum meruit,” (translated: "as much as deserved") as used in this subsection, is an equitable doctrine premised on the principle that one who benefits from the labor of another should not be unjustly enriched even if there is no agreement or contract between the parties. To establish a right to relief under this theory, first there must be a threshold determination that the goods or services for which payment is sought would have been a permissible procurement, had the proper procedures been followed. Second, the Government must have received and accepted a benefit. Third, the vendor must have acted in good faith. Finally, the amount to be paid must not exceed the reasonable value of the benefit received.

(b) Policy.

(1) Acquisition managers shall proactively schedule and update plans for DLA contract actions needed by DLA requiring officials. Vigilant planning and oversight minimizes unauthorized contract actions by government personnel. Repetitive unauthorized actions by requirements personnel necessitate written elevation to requirements supervisors/managers for disciplinary action.

(2) [Reserved.]

(3) (i) The Director, DLA Acquisition (J7) has delegated the authority to ratify unauthorized commitments valued at or below the simplified acquisition threshold at FAR 2.101 to the Commander or Director of the activities listed in (A) through (D) of this subsection, without power of redelegation:

(A) DLA Disposition Services,

(B) DLA Distribution,

(C) DLA Document Services, and

(D) Defense Media Activity (DMA).

(ii) Supply chain Acquisition Executives are responsible for review coordination and approval of unauthorized commitments of their own supply chains. Heads of Contracting Activities (HCAs) may delegate their ratification authority (FAR 1.602-3(b)(2)) for unauthorized commitments valued at or below the simplified acquisition threshold at FAR 2.101 to the Chief of the Contracting Office. The authority to ratify unauthorized commitments in excess of the simplified acquisition threshold may not be delegated.

(iii) The DLA Contracting Services Office (DCSO), DCSO-D, shall process, but not approve, unauthorized commitments for all DCSO offices and those offices or activities without contracting authority that are not aligned under a supply chain. DCSO-D shall report frequent or repetitive actions in support of other offices to the Director, DLA Acquisition (J7) through DLA Headquarters (HQ), Acquisition Operations Division (J72).

(4) (i) To determine whether a claim is a situation for an unauthorized commitment/ ratification or one for a quantum meruit, consult local counsel.

(ii) Proposed ratification of an unauthorized commitment valued in excess of the simplified acquisition threshold at FAR 2.101 from those activities in paragraphs 1.602-3(b)(3)(i)(A) through (D) of this subsection shall be forwarded by letter signed by the Commander, Director, or the Administrator, to DLA HQ, Acquisition Operations Division (J72), who will coordinate review by DLA HQ and approval by the CAE. Referrals in the D&F shall clearly document: (A) that the authority of FAR 1.602-3 exists and that ratification is within the limitations of FAR 1.602-3(c); (B) the circumstances surrounding the unauthorized commitment; and (C), as appropriate, a description of the corrective action taken to preclude such unauthorized commitments in the future. For guidance on the ratification process, see PGI 1.602-3(b)(4)(ii), ratification checklist.

(iii) If the situation is determined to be one of quantum meruit, see PGI 1.602-3 (b)(4)(iii) for the quantum meruit checklist, which provides guidance for submitting the claim to the CAE, through a letter signed by the Commander, Director, Administrator of the activity, or the DCSO-D to DLA HQ, Acquisition Operations Division (J72). In accordance with DODI 1340.21, enclosure 6, the authority to resolve disputes regarding quantum meruit claims has been delegated to the CAE and cannot be further delegated. The CAE will issue an initial determination and notice to the claimant.

1.602-90 Nonappropriated funds.

Appropriated fund contracting officers may act in an advisory capacity on nonappropriated fund contractual instruments. Appropriated fund contracting officers, however, shall not perform the duties of a contracting officer on any contractual instrument obligating only nonappropriated funds except when required by AR 215-4, Nonappropriated Fund Contracting. Contracting officers shall be separately warranted for contracting with nonappropriated funds.

1.603 Selection, appointment, and termination of appointment.

1.603-1-90 General.

The authority in FAR 1.603-1 for selection, appointment, and termination of appointment of contracting officers has been delegated by the Director, DLA to the DLA Heads of Contracting Activities (HCAs). For the activities not designated as contracting activities (see 2.101), the Director, DLA Acquisition (J7), as HCA, has delegated this authority to the Directors of those activities. This authority is delegable, without power of redelegation to the chief of the contracting officer (CCO). For the DLA Contracting Services Office and DLA Strategic Materials, the delegation is to the CCO without power of redelegation.

(a) Definitions.

"Appointing authority" means any person delegated the authority to appoint contracting officers in accordance with 1.603-1-90 above.

"Warrant limitations" are limitations, in addition to the DLAD, laws, Executive Orders, and other applicable regulations, which are imposed on the authority of contracting officers either by delegation or actions of the appointment authority. These limitations may include, but are not limited to, dollar obligation ceilings, interim appointment period, requirements for prior reviews by higher authority, or other approval requirements.

(b) The DLA contracting officer warrant program.

(1) As prescribed in FAR 1.603-1, DLA has established the DLA contracting officer warrant program for the selection, appointment, and termination of appointment for contracting officers.

(2) The objective of this program is to ensure that only those officials who fully meet appropriate selection criteria are appointed and retained as contracting officers when an organizational need occurs. Contracting officers must demonstrate that they possess the required knowledge of contracting officer authority and responsibility, the role of a contracting officer, activity and/or agency contracting procedures, decision making skills, as well as expected standards of conduct and ethical behavior.

(3) See PGI 1.603-1-90 for specific mandatory procedures, guidance, and instructions on the selection, appointment, and termination of appointment for contracting officers.

(4) Contracting officer review program.

(i) Each appointing authority will establish a contracting officer warrant review program consisting of the following:

(A) An annual assessment of the organizational need for contracting officer appointments.

(1) The annual review will include the following considerations:

(i) a contracting office's needs for the number and dollar values of warrants relative to the office's size and mission;

(ii) whether warrants should be limited or unlimited; whether warrants are rescinded when appropriate;

(iii) whether contracting officers meet the FAR, DFARS, and/or DLAD selection criteria;

(iv) the number and duration of waivers to selection criteria; and

(v) whether a periodic review of contracting officers warrants by the contracting office has been accomplished.

(2) The results of the annual review shall be documented in a report and approved by the chief of the contracting office.

(B) Appointment of a contracting officer review board to accomplish the following:

(1) Review and approve initial contracting officer appointment procedures.

(2) Once every three years conduct reviews of each contracting officer appointment as described below:

(i) An evaluation of the contracting officer's work products to include a cumulative assessment of the results of preaward and postaward reviews of contract actions by the activity contract review personnel.

(ii) An examination of the contracting officer's individual development plan to include completion of mandatory training courses for the level of warrant held, on-the-job training, and required college degree or 24 semester hours of business related study, unless exempted based upon criteria set forth in DFARS 201.603-2(2).

(iii) A review of the contracting officer's professional competency which may include an appearance before the contracting officer review board to demonstrate that the contracting officer possesses the required knowledge of contracting officer authority and responsibility, the role of a contracting officer, activity/agency contracting procedures, decision making skills, and ethics.

(3) Place written documentation of the results of the triennial review in the contracting officer's appointment file.

(4) The contracting officer review board will be composed of contracting personnel who have held contracting officer warrants from the following offices (or equivalent): Director or Deputy Director of contracting, plans, policy and systems office, business review office, and a senior contracting officer from a contracting team.

(4) Deputy Secretary of Defense (DepSecDef) memorandum dated August 27, 2008, Subject: Reinforcing the Evaluation Requirements of Contracting Officers under Department of Defense Instruction (DoDI) 5000.66, identifies the requirement for Component Acquisition Executives and Senior Procurement Executives to self-certify biennially that their organizations comply with DoDI 5000.66.

(i) Each Head of the Contracting Activity (HCA) and the chiefs of contracting offices at activities for which the, Director, DLA Acquisition (J7) is the HCA, will submit a supporting certification for their organization every two years to DLA Acquisition Compliance Oversight and Acquisition Workforce Division, J73, who will then provide a summary report to submit to the Director, DLA Acquisition (J7).

(ii) The certification shall be submitted no later than September 30 of the year in which it is required.

(iii) The certification will demonstrate that the component activities are in compliance with DoDI 5000.66. Each certification will confirm that all first level evaluations of contracting officers are performed by a contracting official in the contracting career field who has direct knowledge of the individual's performance and is at least one level above the contracting officer.

(iv) Upon receipt of certification from each activity or organization, the DLA Component Acquisition Executive (CAE) will certify compliance on behalf of DLA to Defense Procurement and Acquisition Policy (DPAP).

(5) Requirements for evaluations of contracting officers and other Government personnel in the contracting career field in accordance with DoDI 5000.66 “Operation of the Defense Acquisition, Technology, and Logistics Workforce Education, Training, and Career Development Program,” December 21, 2005 are as follows.

(i) The first level performance evaluations of contracting officers shall be performed by individuals in the contracting career chain (GS-1102s and GS-1101s) who are certified in the Defense Acquisition Workforce Improvement Act (DAWIA) contracting career field at a level no lower than that of the individual being evaluated.

(ii) For those contracting activities without a supply chain HCA, the first level performance evaluation for the chief of the contracting office shall be performed by the contracting activity’s Commander, Director, or Administrator.

(iii) If personnel in the contracting career field are not contracting officers, they shall have an opportunity for review of their performance appraisals by an individual in the contracting career field who is DAWIA certified in contracting at a level no lower than the individual being evaluated.

1.603-3-90 (a) Contracting Officer’s Ordering Representatives.

(1) DLA contracting officers are authorized to designate qualified individuals as contracting officer’s ordering representatives for contracts and ordering vehicles awarded by or administered by DLA contracting officers for supplies or items.

(i) Contracting officers shall ensure that contracting officer’s ordering representatives are familiar with DoD contract reporting requirements and shall comply with the DoD contract reporting requirements for such actions. (See DFARS 204.6.)

(ii) Limitations on the authority of each the Contracting Officer’s Ordering Representative shall be stated in the contract or in the letter of designation. (See PGI 1.603-3-90 (a) for a sample designation letter.)

(2) Designation and termination authority.

(i) Contracting officers may designate contracting officer’s ordering representatives, for the purposes of placing orders under contracts or other ordering vehicles, such as indefinite delivery contracts, DLA federal supply schedules, and blanket purchase agreements (BPAs), including FAR Part 13 BPAs and BPAs for DLA federal supply schedules/multiple award contracts), provided that the contracting officer designating the contracting officer’s ordering representative determines that the designation is essential for the customer’s most efficient and effective use of the ordering vehicle.

(ii) Contracting officer’s ordering representatives are prohibited from taking any of the following actions:

(A) Alter the contract or procurement action in any way, either directly or by implication, including changing place of delivery, performance, or inspection and acceptance.

(B) Issue modifications to orders, administrative or otherwise.

(C) Terminate a contract, order, or BPA for default or convenience.

(D) Order supplies not expressly within the scope of the contract, purchase order, or BPA unless the cognizant contracting officer confirms in writing that the items are within scope before the order is placed or the items are accepted, as applicable.

(E) Issue instructions to the contractor to stop or start work.

(F) Authorize delivery or disposition of Government property not authorized by the contract.

(G) Re-delegate ordering authority.

(H) Place orders against contracts or other procurement actions, to include micro-purchases, not specifically authorized by the letter of designation or clause 52.201-9001, Contracting Officer’s Ordering Representatives Under the Contract.

(3) Procedures.

(i) See PGI 1.603-3-90 (a)(3).

(ii) Field contracting activities may supplement the DLAD PGI only for procedures and shall not confer additional authority upon contracting officer’s ordering representatives, beyond the FAR, DFARS, and DLAD. Supplementary procedures shall be submitted by the CCO to DLA HQ J71 for concurrence, after review by local counsel.

(4) Solicitation provisions and contract clauses.

(i) Use 52.201-9001, Contracting Officer’s Ordering Representatives Under the Contract, in indefinite delivery contracts (including DLA Federal Supply Schedule/Multiple Award Contracts and BPAs under DLA Federal Supply Schedule/Multiple Award Contracts) when a contracting officer’s ordering representative will be used to place the delivery orders; the contracting officer shall identify the contracting officer’s ordering representatives in the clause and by separate written designation, which details authority and responsibilities. The written signed designation letter shall be documented in the contract file.

1.603-3-90 (b) Micro-purchase contracting authority.

(1) Individuals authorized to make micro-purchases shall be so designated, in writing, and, except for individuals authorized to only make such purchases with the Government commercial purchase card, are required to complete the Defense Small Purchase Course.

(2) Issuance of a Government-wide commercial purchase card constitutes authority to make micro-purchases (see FAR 1.603-3(b)). This procurement authority is issued under the procedures of the DLA credit card instruction, DLAI DLA Government purchase Card Program Issuance and is not subject to the limitation on delegation of authority for selection, appointment, or termination at 1.603-1 or the contracting officer review program at 1.603-92.

1.690 Contract clearance and oversight.

1.690-1 General.

(a) Applicability. The requirements of this section apply to all contracting actions.

(b) The Director, DLA Acquisition (J7) establishes and maintains clearance and oversight as a system of internal controls and a basis for certification of the procurement system required by Executive Order 12931, Federal Procurement Reform, dated October 13, 1994.

(c) Clearance and oversight are conducted to ensure an effective program for monitoring, evaluating, documenting, and improving the quality of the procurement system’s performance. (See PGI 1.690-1 for standards.) Five key concepts are paramount:

(1) Strengthening procuring contracting officer (PCO) ownership of the procurement process.

(2) Placing accountability and responsibility at the appropriate level.

(3) Enhancing professional development.

(4) Streamlining the review and approval process by having a common procedural structure.

(5) Focusing on process improvements.

1.690-2 Policy.

(a) Heads of Contracting Activities (HCAs) shall have an effective management system that assures the procurement system provides supplies and services with reasonable prices, timely delivery, at the required quality, and that it meets the statutory, regulatory, and program needs of the Agency.

(1) HCAs shall institute clearance procedures to provide oversight and monitoring of all phases of the procurement system.

(i) Clearance procedures for all acquisitions shall have a structure similar to that for the acquisition strategy review panel (ASRP) and integrated acquisition review board (IARB). Reviews will be conducted when developing the acquisition strategy, prior to issuing a solicitation, prior to entering into discussions or negotiations, and prior to award. (See 1.690-7.)

(ii) Clearance procedures shall provide contracting supervisory chain review and approval of procurements.

(2) Clearance shall be at a level appropriate to the complexity, risk, priority, and maximum estimated dollar value of procurements in addition to the clearance requirements for ASRP and IARB in 1.690-7.

(b) Clearance by the field activity is required prior to submitting any contract action for ASRP or IARB, or any other higher-level review.

(c) The contracting officer has primary responsibility for the quality of the contracting arrangement.

(1) Contracting officers shall review every proposed contract and supporting file before signing the contract, with the exception of automated procurements (see 12.1, 13.1 and 19.2(d)(10)), and before forwarding the file for review by higher authority, if required.

(2) Documentation shall be in sufficient detail to permit reconstruction by a reviewer of all significant actions without consulting with the contracting personnel responsible for the procurement.

(d) As a component of the overall DLA acquisition management strategy, field activities will conduct surveillance and report results to J7 through HQ J72 and HQ J73 to ensure DLA’s high visibility (Hi-Viz) and special interest acquisitions receive oversight at an appropriate management level. (See 1.690-4 and 1.690-5.)

1.690-3 Establishment of clearance approval authority.

(a) Clearance authority at the contracting activities and offices for acquisitions valued at $50 million and below is established by the Head of the Contracting Activity (HCA), unless the chief of the contracting office (CCO) has been delegated authority to establish clearance.

(b) Dollar thresholds. In calculating whether a contract action’s value meets a dollar threshold, use the total anticipated maximum estimated dollar value for an acquisition, including the base and option periods and surge requirements. (See 1.108(c) and FAR 1.108(c).)

(c) For each contracting activity, the HCA is the clearance authority for all acquisitions above $50 million and less than the thresholds in Table 1 of this subsection.

(1) The HCA for a primary level field activity (PLFA) may delegate clearance authority for acquisitions designated as other procurements up to $100 million to the CCO.

(2) Where J7 is the HCA, clearance authority up to the threshold in Table 1 for acquisitions designated as other procurements is delegated to the CCO. J7 will otherwise review procurements for those activities in the role of the SPE.

(d) The Senior Procurement Executive (SPE), or designee, is the clearance authority for contract actions at or above the thresholds in Table 1 of this paragraph. These actions, which include long term contracts, require review in accordance with 1.690-6 and 1.690-7.

Table 1. SPE Clearance Thresholds
Supply chain, activity, or site | Dollar threshold
All | All acquisitions that require DPAP review (see 1.170 and DFARS 201.170)
All | All information technology (IT) only acquisitions that require DoD ASD(NII)/CIO review
All | All High Visibility (Hi-Viz) acquisitions, regardless of value (per 1.690-4)
All | All new DLA partnerships with a military service or organization for PBL or PV acquisitions, regardless of value
All | All tailored logistics support (TLS) (see 17.95) acquisitions, regardless of value
All | All corporate contracts (see 2.101), regardless of value
All | All A-76 competitions, regardless of value
All | All bundled contracts (see FAR 2.101), regardless of value
All | All letter contracts and undefinitized contract actions, regardless of value; and all unpriced change orders with an estimated value exceeding $5 million (see17.7403)
All | Definitizations beyond the mandated time frames which require the approval of the DLA Director (see 17.74)
All, except DLA Troop Support Clothing and Textiles, Medical, Subsistence, Construction and Equipment, and Industrial Hardware | All acquisitions under FAR 6.302-3, Industrial mobilization; engineering, developmental, or research capability; or expert services; regardless of value
DLA Troop Support Clothing and Textiles, Medical, Subsistence, Construction and Equipment, and Industrial Hardware | All acquisitions > $10 million under FAR 6.302-3, Industrial mobilization; engineering, developmental, or research capability; or expert services
Other procurements based on the following dollar thresholds |
DLA Aviation | $1 billion
DLA Energy | $1 billion
DLA Land and Maritime | $1 billion
DLA Troop Support | $1 billion
DLA Contracting Services Office | $30 million
DLA Disposition Services | $30 million
DLA Distribution | $30 million
DLA Document Services | $10 million
DLA Logistics Information Services | $10 million
DLA Strategic Materials | $1 million
Defense Media Activity | $5 million

1.690-4 High-visibility (Hi-Viz) acquisitions.

High-visibility (Hi-Viz) acquisition surveillance is a component of the overall DLA acquisition management strategy. It is intended to ensure that acquisitions that represent the highest risk to the Agency in terms of factors such as mission criticality, financial investment, and stewardship responsibilities receive oversight at an appropriate management level. Hi-Viz surveillance will be conducted and reported for acquisitions as prescribed in this section.

(a) The following acquisitions will be tracked by the DLA Acquisition Operations Division (J72) and reported on a bi-weekly basis to the DLA Director:

(1) Acquisitions designated by the Director, DLA, the Vice Director, DLA, or the Director, DLA Acquisition (J7). These acquisitions may be recommended by DLA Headquarters (HQ) or buying activity headquarters senior staff.

(2) Buying activities should nominate acquisitions that are known to represent a high level of risk to the Agency.

(b) The following acquisitions will be tracked by HQ J72 and reported on a weekly basis to the Senior Procurement Executive (SPE):

(1) Acquisitions designated by the SPE. These acquisitions may be recommended by DLA HQ or buying activity headquarters senior staff.

(2) Buying activities should nominate acquisitions that are known to represent a high level of risk to the Agency.

(3) Acquisitions that would otherwise be reported at the buying activity headquarters level that are processed by the DLA Contracting Services Office will be reported to the SPE.

(c) The following acquisitions will be tracked and reported at the buying activity headquarters level:

(1) Acquisitions designated by the buying activity’s Commander, Director or senior staff.

(2) Any other acquisitions not designated for higher-level reporting that have been reviewed or will be reviewed by an integrated acquisition review board (IARB).

(d) The acquisitions designated in this section must be reviewed at the level specified, but buying activities may designate subordinate levels of review for other acquisitions.

(e) Acquisitions designated for review by the DLA Director or the SPE will be reported by the buying activities to HQ J72 on a weekly basis at a time specified by HQ J72 using a HQ J72 prescribed format, which will be separately furnished and is subject to change.

(1) Acquisitions monitored at the buying activity level may be reported in any approprie format.

(2) Buying activities will be required to provide updates to the DLA Director on their Hi-Viz surveillance programs in a prescribed format on a quarterly basis, or as otherwise specified by the Director.

(f) As part of the Hi-Viz surveillance program, the buying activities will establish and maintain procedures that provide for regularly-scheduled post award in-process reviews of their Hi-Viz acquisitions.

(1) At a minimum, these reviews will be conducted for each acquisition reported at the DLA Director level; these reviews will be conducted at the buying activity’s Commander, Director or Head of the Contracting Activity level.

(2) In-process reviews of other Hi-Viz acquisitions may be conducted at subordinate levels.

(g) Acquisitions reported to the DLA Director may only be removed from Hi-Viz surveillance with the permission of the Director or Vice Director.

(1) Senior leaders at buying activities may make requests for removal from Hi-Viz surveillance to the Director or Vice Director with a copy to J7 or may submit requests with appropriate justification through J7.

(2) Acquisitions monitored by the SPE may only be removed from Hi-Viz surveillance with the permission of the SPE, which may be obtained by direct request or may be requested through HQ J72.

(3) Acquisitions monitored at the buying activity level may be removed from Hi-Viz surveillance at the discretion of the buying activities, with the exception that items subject to approval by the IARB must be monitored through award, at a minimum.

(h) Correspondence addressing the overall direction of or non-routine issues relating to a contract subject to Hi-Viz surveillance, to include correspondence with Department of Defense officials or Members of Congress, must be coordinated with the SPE prior to release.

1.690-5 Special interest acquisitions.

Special interest acquisitions are those acquisitions, including contract actions under existing contracts, where there is known special or significant interest by members of Congress, the White House, media, Government Accountability Office, DoD Inspector General Office, Office of the Under Secretary of Defense for Acquisition, Technology and Logistics or its subordinate organizations, other Office of the Secretary of Defense organizations, or a high potential to attract such interest. Classification as a special interest acquisition is separate from classification as a Hi-Viz acquisition under 1.690-4, although the same acquisition may be both special interest and Hi-Viz.

(a) Whenever a contracting office is processing or otherwise responsible for a special interest acquisition, the activity shall promptly notify DLA Acquisition Compliance Oversight and Acquisition Workforce (J73) and DLA Acquisition Operations (J72) of the acquisition.

(1) This notification is necessary to make DLA HQ leadership aware of the special interest and to be able to respond to inquiries from the interested parties.

(2) The notifications will be provided to HQ J73 and include the following information, tailored as necessary based on the stage of the acquisition, e.g., pre-award versus post-award:

(i) Contract data. Solicitation or contract number, modification number, or delivery order number, estimated or actual value of the action and total cumulative estimated or actual value of the contract, description of what is being bought, current or planned period(s) of performance, and date or anticipated date of the latest significant action and any other status information relevant to the special interest issue(s).

(ii) Offeror or contractor data. Name, address, actual or planned place of performance (if significant work is performed at a different location from the company’s main address), and congressional district.

(iii) Special interest. Narrative of reasons for and nature of known or potential special interest and parties involved or potentially involved.

(iv) Contracting activity. Contracting office and contracting office point of contact.

(v) Source documentation. Copy of source document or communication, e.g., letters, memorandums, and/or emails that generate the interest.

(b) If required to provide offeror data that is considered source selection sensitive, the contracting activity shall ensure the notification is properly marked in accordance with FAR 2.101 and 3.104-4 “Source Selection Information – See FAR 2.101 and 3.104”. Any e-mails, including protected information, should be digitally signed and encrypted.

(c) Contracting activities will ensure they have a process in place to track and report all special interest acquisitions to include notification of the supply chain acquisition chain of command.

1.690-6 Acquisition review.

In acquisition planning, contracting offices shall take into account the requirement for scheduling and conducting acquisition reviews as well as DPAP and DLA peer reviews in accordance with 1.170 and PGI 1.170, acquisition review and clearance, and documentation requirements.

(a) Acquisition reviews focus on key principles in taking an enterprise-wide approach, assessing metrics with expected outcomes, and establishing an acquisition to produce a business arrangement that is in the best interests of both DLA and DoD.

(b) Field activity reviews, including an acquisition review board (ARB) similar in structure to the ASRP and IARB, shall be conducted at a level appropriate to the complexity, risk, priority, and dollar value of the contract action.

(c) HCAs must conduct an ARB for all acquisitions over $50 million.

1.690-7 Acquisition strategy review panel (ASRP) and integrated acquisition review board (IARB).

(a) Contract actions valued at or above the thresholds in Table 1 in 1.690-3 shall be submitted for ASRP and IARB review and clearance.

(b) The SPE or designee may direct an ASRP or IARB review of any acquisition, such as a special interest or high-risk procurement (e.g., acquisitions with Congressional, policy, audit, legal, or other high-risk issues), as well as any acquisition with significant findings from a procurement management review.

(c) For acquisitions requiring DPAP peer reviews or other DoD reviews, the ASRP and IARB will be conducted as appropriate prior to such reviews.

(1) All competitive acquisitions valued at $1 billion and above, and all non-competitive acquisitions valued at $500 million and above shall be presented to DPAP for peer reviews in accordance with 1.170, PGI 1.170, DFARS 201.170, and DFARS PGI 201.170. For any acquisitions subject to a DPAP peer review, IARB reviews occur in advance of the corresponding DPAP peer review.

(2) All IT services acquisitions valued at over $500 million shall be presented to the Assistant Secretary of Defense for Networks and Information Integration, Chief Information Officer (ASD(NII)/CIO), as the decision authority in accordance with DODI 5000.02, Operation of the Defense Acquisition System, dated December 8, 2008, Enclosure 9, paragraph 5.

(d) Detailed procedures on the ASRP and IARB, including membership, responsibilities, briefing and documentation requirements, are in PGI 1.690-7.

(1) The ASRP and IARB may be tailored in certain acquisition situations upon request in writing to the division chief, DLA Acquisition Operations (J72), and with the approval of the SPE or designee.

(2) Contracting activities and offices shall coordinate with HQ J72 before submitting a request to tailor ASRP and/or IARB procedures.

(e) The ASRP occurs first, as early as possible in the acquisition planning process and well in advance of any substantial effort to develop required acquisition documentation, followed by an IARB for each phase.

(f) IARB reviews shall occur at three critical decision points, which correspond to the phases of a DPAP peer review (see DFARS PGI 201.170), as described in this section.

(1) Preaward phases 1, 2, and 3 IARB.

(i) For competitive procurements:

(A) The phase 1 IARB occurs prior to issuance of the solicitation and is equivalent to phase 1 of DPAP preaward peer review for competitive procurements.

(B) Phase 2 IARB.

(1) For award without discussions, there is no phase 2 IARB, rather only phase 3, which is award.

(2) For award with discussions, the phase 2 IARB occurs prior to issuing the request for final proposal revisions and is equivalent to phase 2 of DPAP preaward peer review for competitive procurements.

(C) The phase 3 IARB occurs prior to contract award and is equivalent to phase 3 of DPAP preaward peer review for competitive procurements.

(ii) For non-competitive (or limited competition) procurements:

(A) The phase 1 IARB occurs prior to issuing the request for proposals; there is no equivalent DPAP preaward peer review for non-competitive procurements.

(B) The phase 2 IARB occurs prior to opening negotiations and is equivalent to phase 1 of DPAP preaward peer review for non-competitive procurements.

(C) The phase 3 IARB occurs prior to contract award and is equivalent to phase 2 of DPAP preaward peer review for non-competitive procurements.

(2) The phase 4 IARB occurs postaward and prior to exercising options for services contracts and is equivalent to phase 4 of DPAP postaward peer review for services contracts.

(g) Waiver of ASRP and/or IARB review.

(1) Limited situations that may warrant a waiver would be acquisitions that are subject to the ASRP and IARB only because of dollar value and will use only required Government supply sources, such as Federal Prison Industries (FPI), AbilityOne participating nonprofit agencies which include National Industries for the Blind (NIB) and National Industries for the Severely Handicapped (NISH), as well as mandatory Federal supply schedules.

(2) For other very limited circumstances, a waiver can be requested by the HCA or, for contracting offices for which the Director, DLA Acquisition is the HCA, the CCO, through the division chief, Acquisition Operations, DLA Acquisition (J72), to the SPE. The request must be fully supported by an explanation of the particular facts and circumstances of the procurement that justify a waiver. Approval of a waiver by the SPE is made on an individual basis only.

(3) Insufficient procurement planning will not substantiate a waiver request.

(4) A waiver of one, some, or all of the acquisition review phases may be requested in writing.

(h) Forecasting ASRPs and IARBs.

(1) Field activities shall provide a rolling annual forecast to facilitate planning and tracking, as well as actual scheduling of ASRPs and IARBs.

(2) The rolling forecast shall be submitted from at least the level of CCO to HQ J72 at the end of each quarter, i.e., December 31, March 31, June 30, and September 30. (See DLAD PGI 1.690-7(h).)

1.691 Legal review.

(a) Legal advice and assistance of assigned legal counsel shall be obtained in the preparation of provisions or clauses other than standard provisions or clauses which are to be contained in solicitations; prior to taking action to resolve any instance of defective cost or pricing data or false claim; in the preparation and review of acquisition documents for procurements that are subject to the ASRP and IARB; and on any questionable legal areas in the preparation and/or execution of contractual documents.

(b) Defense supply centers shall issue instructions on the legal review of solicitations and contractual documents issued by their activities.

(c) Contracting offices not designated as a contracting activity listed at 2.101 shall ensure that legal review is accomplished on all solicitations and contractual documents in excess of $150,000.

1.692 Confirmation of quantity and technical requirements.

(a) Prior to solicitation of repetitively single/sole source purchases in excess of $150,000, the contracting officer shall consider requesting review of all technical data by the responsible specification preparing activity/engineering support activity. Such a review should be requested if the contracting officer believes it is necessary in order to assure that the data is current, potential sources are identified, and lengthy, complex, or expensive testing requirements are eliminated to the extent practicable (i.e., qualified products list (QPL), first article requirements). The contracting officer shall also ensure that consideration has been given to other actions that may encourage competition, i.e., Government furnished tooling, alternate contract type, provisions for economical production quantities.

(b) Immediately prior to the award of any supply contract (other than an indefinite delivery contract) in excess of $500,000 or for mobilization requirements, the contracting officer shall confirm that the quantities are still required and that the technical requirements are still current. "Immediately prior to award" means that point in time when all required approvals have been obtained and the contract is ready for release to the contractor. Confirmation of quantity and technical requirements for military interdepartmental purchase requests (MIPRs) shall be obtained verbally from the MIPR Liaison/Coordinator or item manager levels of the requiring departments. Appropriate documentation shall be included in the contract file. Contracting offices are encouraged to establish similar procedures for significant awards below $500,000 as may be appropriate for their types of contract actions.

SUBPART 1.7 – DETERMINATIONS AND FINDINGS

1.703 Class determinations and findings.

(b) Class determinations and findings (CDF) may not be extended beyond their effective periods. When a CDF is required for an additional period, a new CDF shall be executed. New requests shall set forth a summary of the acquisitions completed under the earlier CDF, as well as acquisitions contemplated under the new request.

(c) Heads of contracting activities shall periodically review effective CDFs to assure that they are still needed.

1.704 Content.

(g)(90) The printed name and title of the official authorized to sign the D&F shall be included with the signature and the date signed.

SUBPART 1.9 – ADMINISTRATION OF DLAD

1.900 Administration and explanation.

The administration and explanation of the DLAD is the responsibility of the Director, DLA Acquisition (J7).