# DLAD PART 7 – ACQUISITION PLANNING

- 7.000-90 Scope of part.

- SUBPART 7.1 – ACQUISITION PLANS

- 7.102-90 Policy.

- 7.103 Agency-head responsibilities.

- 7.104-90 General procedures.

- 7.107 Additional requirements for acquisitions involving bundling.
- 7.170 Consolidation of contract requirements.

- 7.170-290 Definitions.
- 7.170-3 Policy and procedures.

- 7.190 Peer review program. For Defense Procurement and Acquisition policy (DPAP) peer review program procedures, see PGI 1.170-2-90. For DLA peer review procedures, see PGI 1.170-5-90.

- SUBPART 7.2 – PLANNING FOR THE PURCHASE OF SUPPLIES IN ECONOMIC QUANTITIES

- 7.202 Policy.

- 7.203-90 Solicitation provisions and contract clauses.

- SUBPART 7.3 – CONTRACTOR VERSUS GOVERNMENT PERFORMANCE

- 7.304 Procedures.
- 7.306 Evaluation.

- SUBPART 7.90 – USE OF NON-DOD CONTRACTS

- 7.9001 General considerations.
- 7.9002 Policies and procedures pertaining to direct acquisitions.
- 7.9003 Policies and procedures pertaining to assisted acquisitions.

PART 7 – ACQUISITION PLANNING

TABLE OF CONTENTS

7.000-90 Scope of part.

SUBPART 7.1 – ACQUISITION PLANS

7.102 Policy.

7.103 Agency-head responsibilities.

7.104 General procedures.

7.104-90 [Reserved.]

7.104-91 [Reserved.]

7.105-90 Contents of written acquisition plans.

7.107 Additional requirements for acquisitions involving bundling.

7.170 Consolidation of contract requirements.

7.170-2 Definitions.

7.170-3 Policy and procedures.

7.190 Peer review program.

SUBPART 7.2 – PLANNING FOR THE PURCHASE OF SUPPLIES IN ECONOMIC QUANTITIES

7.202 Policy.

7.203 Solicitation provision.

SUBPART 7.3 – CONTRACTOR VERSUS GOVERNMENT PERFORMANCE

7.304 Procedures.

7.306 Evaluation.

SUBPART 7.90 – USE OF NON-DOD CONTRACTS

7.9001 General considerations.

7.9002 Policies and procedures pertaining to direct acquisitions.

7.9003 Policies and procedures pertaining to assisted acquisitions.

7.000-90 Scope of part.

This part also prescribes policies and procedures for the --

(a) Use of non-Department of Defense contract vehicles, including both assisted and direct acquisitions, for acquiring supplies or services.

(b) Peer Review Program. For Defense Procurement and Acquisition policy (DPAP) peer review program procedures, see PGI 1.170. For Defense Logistics Agency (DLA) peer review procedures, see PGI 1.170-90.

SUBPART 7.1 – ACQUISITION PLANS

(Revised July 1, 2013 through PROCLTR 2013-54)

7.102-90 Policy.

(a) As stated in FAR, acquisition planning is to be performed for all acquisitions, but what is entailed, and the format it will take, will depend on the scope, dollar value, and duration of the acquisition. As stated in paragraph (c) of this section, written plans are required for all acquisitions with values greater than the simplified acquisition threshold (SAT).

(b) Planning to ensure that the Government meets its needs in the most effective, economical, and timely manner sometimes includes consideration of the use of contract vehicles not originally put in place by DoD personnel (e.g., Federal supply schedules). The considerations for use of these vehicles, as well as the procedures to be followed and safeguards to be employed when sending contracting dollars outside the Department, are set forth in 7.90, 17.5, 17.78, and 17.96.

(c) Acquisition plans are required for all acquisitions expected to exceed the simplified acquisition threshold (SAT), including those accomplished by means of direct or assisted acquisitions using non-DoD contract vehicles; see subpart 7.90, of this section.

(1) Acquisition plans shall be prepared, as applicable, in accordance with FAR 7.105, DFARS 207.105, and DLAD PGI 7.105-90. Acquisition plans shall be approved no lower than the contracting officer or at a higher level as established by the chief of the contracting office (CCO); acquisition plans shall be reviewed and approved by the CCO prior to solicitation for all actions that are not long term with a value equal to or greater than $2 million, and for all long term actions with a value equal to or greater than $10 million.

(i) For acquisitions with a dollar value above the SAT up to $10 million, contracting officers shall at a minimum prepare a streamlined acquisition plan (SAP) (see PGI 7.105-90). These acquisitions generally are less complex in nature. Since there are many ways to acquire the required products or services sought, planning is imperative. At the discretion of the contracting officer, an acquisition plan, as required in subparagraph (ii) in this section, may be prepared for those actions where it would be more appropriate.

(ii) For acquisitions above $10 million, an acquisition plan shall be prepared in accordance with FAR 7.105, DFARS 207.105, and DLAD PGI 7.105-90.) The level of detail provided in the acquisition plan should be commensurate with the complexity and dollar value of the acquisition. With the exception of acquisitions subject to an ASRP or IARB, at the discretion of the contracting officer, an acquisition plan, as required in subparagraph (i) in this section, may be prepared for those actions where it would be more appropriate.

(iii) Every acquisition plan for a services acquisition over $10 million that is not subject to ASRP or IARB review must include a request for coordination from the applicable services portfolio manager prior to final approval.

(A) Coordination may be concurrent with other coordinations/approvals, as long as the applicable portfolio manager is notified of any major change to the acquisition plan.

(B) Portfolio managers shall have 5 business days to provide formal comment. Any comments received from the portfolio manager within the 5 business days should be considered and addressed prior to solicitation. No response shall be construed as concurrence.

(C) A copy of the comments and the response to these comments shall be placed in the file, and copied to the portfolio manager.

(D) Contracting officers shall forward a copy to the applicable portfolio manager of all acquisition plans for acquisitions of services estimated to be $1 million or greater, but less than $10 million, at least 30 days prior to solicitation.

(2) For acquisitions accomplished by means of non-DoD contract vehicles, including placement of orders against Federal supply schedules, this review and approval must be at a level above the buyer; see 7.90.

(3) Approval prior to solicitation can be waived per supply chain guidance for urgent requirements.

(4) Acquisition plans for services shall be coordinated with the DLA HQ J7 Senior Service Manager or his/her designated representative prior to approval.

(5) If a DLA activity or functional unit that does not have contracting authority in its own right (e.g., a DLA HQ J-code activity or Defense Logistics Agency Office of Operations Research and Resource Analysis (DORRA) intends to acquire support through use of a non-DoD contracting vehicle on either a direct- or assisted-acquisition basis (see definitions in Part 2), that activity must contact the DLA contracting office that generally provides its contracting support, and request that contracting office to implement the appropriate review and approval procedures.

(i) Every program office that expends funds in its own right (that is, without requesting that its requirements be placed on contract by the local activity’s or supply chain’s contracting office) must involve DLA contracting personnel in the review and approval process for the proposed acquisition.

(ii) Contracting offices that exercise this function on behalf of others must ensure that their supported activities are provided an explanation of this policy, and they must receive assurance from each such supported activity that the latter will not expend funds for contract support (including funds provided via military interdepartmental purchase request (MIPR)) without the express involvement of a DLA contracting office, at levels in accordance with the review and approval guidelines set forth in 1.690. (See also 7.90.)

(6) Actions that do not require a streamlined acquisition plan or an acquisition plan:

(i) Individual orders (except non-DoD orders greater than the SAT) against contracts when the contract-level acquisition plan is adequate to cover all anticipated orders and the order is issued in strict compliance with the terms of the basic contract

(ii) A modification of the contract.

(iii) Acquisition of replenishment parts, below DFARS 207.103 thresholds.

(7) Market surveys (see FAR 7.102) and market research (see FAR and DLAD Part 10) shall be performed consistent with any local operating procedures and cited in the acquisition plan.

(8) The acquisition plan shall accompany justifications for other than full and open competition (see FAR 6.301, 6.304, and DLAD 6.304) when forwarded to the activity competition advocate. The activity competition advocate shall also be provided a copy of the acquisition plan for acquisitions where there is no history of receipt of more than one offer and price competition is not expected to be received on the acquisition.

(9) See 17.9503, Acquisition Planning, for acquisition planning requirements for prime vendor, modified prime vendor, and other tailored logistics support contracting initiatives.

7.103 Agency-head responsibilities.

(a) Requirements for contract actions, which must be awarded by the end of the fiscal year, must be submitted to the contracting office by 31 July of that fiscal year. Solicitations for requirements received after 31 July shall not be issued unless approved by the chief of the contracting office.

(1) A contract action log shall be maintained by the contracting office for all purchases of contracted advisory and assistance services, periodicals, pamphlets, and audiovisual products. Existing logs may be used for this purpose, provided some means is devised to readily identify these types of contract actions that are highly vulnerable to waste.

(b) – (c) [Reserved.]

(d) Written acquisition plans required by 7.102-90 may be effected on a system basis (see FAR 7.102) using a comprehensive plan for a specified period of time (i.e., quarterly, semi-annually or annually).

7.104-90 General procedures.

(a) For Defense Procurement and Acquisition Policy (DPAP) peer review program procedures, see mandatory coverage at PGI 1.170-2-90.

(b)(1) The Defense Production Act (DPA) and the Defense Planning Guidance (DPG) require DoD to maintain an adequate production base to promote national security. In this regard, industrial preparedness actions are taken to ensure that the industrial base is adequate to offset war reserves shortfalls and provide combat support in emergencies.

(i) When an item is being considered as an item of supply from a new source, an industrial capabilities assessment for the item should be accomplished or updated. This assessment is especially important when the item will be supplied by a single source, as well as when it is a critical item with a war reserve shortfall, a critical item that has experienced high demand in previous contingencies, a military unique item, or a weapon system item coded essentiality codes 1, and 5, or 7. For these types of items, adequate capacity is necessary to meet surge and sustainment (S&S) requirements.

(ii) Assessment of newly sourced items is not required if previous analysis on capacity to do an entire family of items (that newly sourced items belong to) shows the new source already has sufficient equipment, facilities, personnel, and materials to meet S&S requirements for the newly sourced items.

(b) (2) (i) Measures to ensure S&S requirements (i.e., items, quantities, and delivery terms) are defined, S&S capability is developed, and S&S capability can be tested (as required in 17.9303)) must be undertaken for all new business arrangements (e.g., prime vendor, virtual prime vendor, corporate contracts, etc.) and long-term contracts. These measures are especially crucial when the new support method will eliminate or reduce DLA inventories.

(ii) Acquisition plans for these new arrangements and LTCs must address S&S requirements, capability, and testing. If surge and/or sustainment requirements are not included in the solicitation (e.g., they do not exist, they are covered under other contractual arrangements, they are covered via sufficient peacetime assets, etc.), state this in the acquisition plan and explain the basis for not including them.

(c) The contracting officer is responsible for taking timely actions to assure that the procurement cycle for forecasted requirements is adequate so it is not necessary to place an award or order on an undefinitized basis.

7.104-91 [Reserved.]

7.105-90 Contents of written acquisition plans.

(a) In accordance with FAR 7.105, contracting officers, program managers, planning specialists, or other officials responsible for the program or requirement will identify potential vulnerabilities when developing acquisition strategies/plans and when conducting post award and contract administration functions and will develop mitigation strategies.

(1) Contracting personnel shall specifically consider and identify vulnerabilities that create opportunities for fraud, address them in mitigation plans as part of acquisition planning, and include them in lessons learned. These vulnerabilities should be addressed during the development of the acquisition strategy and in written acquisition plans for procurements above the simplified acquisition threshold.

(2) Heads of contracting activities (HCAs) will establish a process to collect issues relating to pre-award and contract administration activities and share lessons learned with the acquisition community. HCAs will ensure that the lessons learned and any corrective actions are considered by the contracting team when beginning future acquisition planning.

(b) Refer to PGI 7.105-90 for procedural guidance on preparing acquisition plans.

7.106 [Reserved.]

7.107 Additional requirements for acquisitions involving bundling.

(a) “Necessary and justified” (with regard to bundling) is a two-part determination, made with the aid of market research. It means not only that the bundle is considered essential from a management perspective, but also that the benefits accruing from the bundling of requirements, as compared to not doing so, would be measurably substantial (as defined in FAR 7.107(b)). Note that the definition of “measurably substantial” contains a requirement for quantification of benefits.

(b) [Reserved.]

(c)(S-90) If quantification of the benefits of a bundled acquisition does not equal quantification levels set forth in FAR 7.107(b), ordinarily the contracting officer shall not bundle requirements. However, in exceptional situations the contracting officer may still proceed with the contracting action. The contracting officer shall seek the approval, in a determination and findings, of the Under Secretary of Defense for Acquisition, Technology and Logistics (USD(AT&L)), that bundling is necessary and justified. In that case, even though the quantified benefits do not reach the specified dollar equivalents, they must be shown to be critical to the agency’s mission success. The acquisition strategy described in the request to USD(AT&L) shall provide for maximum practicable participation by small business concerns. (See Part 19 for further guidance on maximizing small business participation.) Reduction of administrative or personnel costs alone cannot be used as justification for bundling in support of the request to USD(AT&L).

(S-91) For an acquisition requiring USD(AT&L)’s permission to proceed with the bundled requirement, the contracting officer shall submit the request for approval of the determination and finding to J72; it will be routed through Director, DLA Acquisition (J7), J3, DLA-Small Business Programs and DLA General Counsel, and the Director, DLA, who will sign out the request to OSD. There are no timeframes in the statute or FAR for use of this procedure, but it is essential that justifications be submitted at the earliest possible date. Therefore, the contracting officer shall forward the request within 30 days of determining that the proposed acquisition will not generate savings in accordance with established levels, as set forth in FAR 7.107(b) (that is, within 30 days of performing a bundling analysis). The contracting officer shall not issue a bundled solicitation until the determination and finding granting the permission has been received from USD(AT&L).

(d) [Reserved.]

(e) In establishing the procurement strategy for any bundled requirement, whether or not of a dollar value constituting substantial bundling, the contracting officer may want to address the following considerations as part of the market research required to be conducted in accordance with FAR 10.001(a)and (c) and 10.002(e): benefits; impediments to small business prime contracting participation; actions to maximize small business subcontracting participation; and affirmative determination that the benefits justify bundling. However, in cases not involving substantial bundling, FAR does not require that the documentation of the research results be so extensive as it would be for instances of substantial bundling. See 7.102-90 for the proper use of business case analyses in the documentation of benefits of bundling; see 10.001 for the extent and type of market research necessary to support the required level of documentation.

(S-90)(1) If a bundling analysis has already been performed on a contract action, it is not necessary to perform a new bundling analysis before exercising an option.

(2) For new acquisitions, procurement history should be analyzed from the three immediately preceding years to determine whether there have previously been separate, smaller contracts for these requirements that were or could have been performed by small businesses.

(3) For any contract containing an “add/delete” clause, the contracting officer shall perform a bundling analysis before adding individual/groups of items via clause exercise, if the change modifies the contract and constitutes a new requirement. On the other hand, if the add/delete clause is merely a mechanism by which items, always intended to be part of the acquisition and included in the initial analysis, are “phased in” (for pricing and other purposes), then the additions do not constitute a new requirement, and a new bundling analysis is not required.

(S-91) The SBA can appeal to the head of a contracting agency certain decisions made by the agency that SBA believes will adversely affect small businesses.

(1) One such appealable decision pertains to any bundling of contract requirements the SBA considers to be unnecessary or insufficiently justified. Whenever a proposed aggregation of requirements, at least some of which were formerly filled by small businesses, is likely to render the resultant contract unsuitable for award to a small business concern, the SBA may challenge that solicitation. (See the definition of bundling at FAR 2.101 for aspects of a procurement that might make small business participation unlikely.) Given the seriousness of these consequences, the contracting officer must be able to show that any such proposed bundle is “necessary and justified” (as defined in 7.107(a), above), and that benefits that are anticipated to accrue to the Government will be “measurably substantial,” as explained in FAR 7.107(b). Reduction of administrative or personnel costs are not considered sufficient justification for bundling, unless these savings are expected to be substantial.

(2) If the contracting officer cannot determine that a bundling of requirements is necessary and justified, and that its benefits will be measurably substantial (including situations where the contracting officer cannot quantify such benefits), the contracting officer shall not proceed with the bundling without approval by USD(AT&L).

(S-92) In cases where there is disagreement between the SBA and the contracting officer over a bundled or substantially bundled requirement, the PCR or SBA Area Office may initiate an appeal to the head of the contracting activity. Levels of appeal and associated timeframes are provided in FAR 19.402(c)(2) and, for general reference, 19.505.

7.170 Consolidation of contract requirements.

7.170-290 Definitions.

(a) As used in DFARS 207.170-2 to describe the aggregation of two or more requirements into a solicitation to obtain offers for a single contract or a multiple award contract, the term “previously provided” refers to the current or most recent awards for the requirements’ fulfillment, rather than to a “look back” for an indefinite number of years or for their entire acquisition history. Any aggregation of requirements into a single solicitation valued over $6 million that meets the consolidation definition in DFARS 207.170-2 is considered a consolidation within the meaning of this section, whether or not the previous contracts were provided by small businesses. (Despite the lack of a specific reference to small business, though, the legislation that this coverage implements was intended to enhance the participation of small business entities. See Part 19 for a complete treatment of small business issues.)

(b) If requirements are currently being solicited under a single solicitation that will result in multiple contracts not subject to FAR 16.5, and the immediately preceding contracts for the same requirements were also awarded under multiple contracts resulting from a single solicitation not subject to FAR 16.5, then these requirements are not consolidations. However, the inclusion or exclusion of the words, “all or none,” in a solicitation for requirements that would otherwise be considered a consolidation does not have a bearing on whether or not the solicitation is, in fact, consolidated. If, at the time of acquisition planning, currently separate requirements are aggregated into a single solicitation with the possibility of their being awarded as a single or multiple award in accordance with the definition at DFARS 207.170-2, the acquisition is considered a consolidation, whether or not a different award determination is made upon receipt of offers.

(c) As with bundling, “substantial” benefits of consolidation are those that are essential, ample, and not illusory. They should, but , unlike bundling, need not absolutely be quantified.

7.170-3 Policy and procedures.

(a)(1) See PGI 10.002-90 (d) for a discussion of market research as it pertains to the consolidation of contract requirements.

(a)(2) [Reserved.]

(a)(3) The Senior Procurement Executive (SPE) has authorized the field activity’s Acquisition Executive (AE) to execute a determination that a consolidation is necessary and justified for a procurement valued at up to $100 million. That authority will not be further delegated.

7.190 Peer review program. For Defense Procurement and Acquisition policy (DPAP) peer review program procedures, see PGI 1.170-2-90. For DLA peer review procedures, see PGI 1.170-5-90.

SUBPART 7.2 – PLANNING FOR THE PURCHASE OF SUPPLIES IN ECONOMIC QUANTITIES

7.202 Policy.

(a) [Reserved.]

(b) For solicitations for IDCs and other long-term contracts covering voluminous items for which response by the offeror to the clause at FAR 52.207-4 is not practicable, see 7.203-90.

7.203-90 Solicitation provisions and contract clauses.

(a) The FAR provision shall be tailored, or a locally developed clause used, to obtain volume discounts, market basket discounts and/or separate prices at the offeror’s price break quantities, across the range of potential order quantities, under IDC and other long-term contracts where response to the standard FAR provision is impracticable.

SUBPART 7.3 – CONTRACTOR VERSUS GOVERNMENT PERFORMANCE

7.304 Procedures.

(a) –(b) [Reserved.]

(c)(1) Where the Director, DLA Acquisition (J7) is the HCA (see 2.101), solicitations in which a comparison will be made between contractor and Government performance in accordance with OMB Circular A-76 shall be forwarded to DLA HQ, attention: J71 for review and approval prior to release (see 1.690-6(b)(3)).

(S-90) Procedures for SBA requested 8(a) commitments. When, due to application of the confidentiality requirements of FAR 7.304(d), it is not possible to obtain an in-house cost estimate independent of the Government's sealed in-house offer for use in determining an estimated current fair market price (FMP), the contracting officer may determine the FMP based on cost or price analysis in accordance with the provisions in FAR 19.805 and 19.806, as appropriate. When agreement is reached with the SBA or its subcontractor on the terms and conditions of the proposed contract, the Government's sealed in-house estimate shall be opened and the cost comparison completed in accordance with FAR 7.306(b). When agreement between SBA or its subcontractor as to the terms and conditions of the proposed contract is not reached and the SBA withdraws its certification, the Government's sealed in-house estimate shall not be opened. A competitive solicitation shall subsequently be issued, either on a set-aside or non-set-aside basis in accordance with FAR 7.306. The 8(a) firm(s) for which the SBA commitment was originally required shall be provided an opportunity to offer on the competitively issued solicitation. The procedures of FAR 7.306(a) or (b), as appropriate, apply to the balance of the cost comparison process.

(S-91) With respect to requests for information related to commercial activities cost studies, the contracting officer (or other authorized individual) must consider the guidelines contained in DLAR 5400.14, DLA Freedom of Information Act Program, paragraph VIII.E., and promptly determine if such information should be withheld or released. Requests shall not be required to be submitted under the Freedom of Information Act (FOIA) in order to be considered. If the information is to be withheld, the requestor shall be notified immediately of the decision to withhold the information and of the right to submit a written request for the information under FOIA, if the request was not submitted under FOIA initially. Requests for information may be an indication that the solicitation contains defects or ambiguities, or that the CA solicitation process would be improved by dissemination of the information to all prospective offerors. Therefore, as a part of the disposition of each request, the contracting officer shall consider the need to issue an amendment to the solicitation.

7.306 Evaluation.

(a) Sealed bidding.

(1) – (2) [Reserved.]

(3) The contract file must be forwarded to DLA HQ, attention: J73, for review and approval, and the PLFA must be advised by J73 that the file is approved before the PLFA commander signs the decision summary form (DLA Form 1764, Cost Comparison Analysis In-House versus Contract Performance, or DLA Form 1764a, Cost Comparison Analysis Expansions, New Requirements, and Conversion to In-House). The contracting officer shall not sign the decision summary form until J73 approval of the contract file has been received or until J73 comments, that are a condition of approval, have been properly addressed.

SUBPART 7.90 – USE OF NON-DOD CONTRACTS

7.9001 General considerations.

(a) The use of non-DoD contracts by DLA personnel, via either direct or assisted acquisitions (see definitions at 2.101), to procure supplies and services is often an effective way to accomplish acquisitions in support of the Agency mission. Because of this, the use of these vehicles, including but not limited to the Federal Supply Schedules awarded by the General Services Administration or the multiple award contracts put in place by the Department of the Interior, Department of the Treasury, or any other federal activity, is encouraged when it is determined to be the best method of procurement to meet DLA requirements. However, acquisition planning must be done for all buys valued at amounts greater than the simplified acquisition threshold to determine whether using such a vehicle is actually the best method for satisfying the requirement. Market research and the early involvement of financial management and requirements personnel are essential steps in the process. Contracting personnel must take care to ensure that non-DoD contracts are not used to circumvent conditions and limitations imposed by DoD Authorization Acts and other legislation on the use of funds; to ignore other Defense-specific programs and policies; or to compensate for poor or non-existent acquisition planning.

(S-90) In order to make use of non-DoD contracts on either a direct or assisted acquisition basis, any activity or functional unit that does not have a contracting office or contracting personnel must contact the DLA activity or supply chain that customarily provides its contract support, so that the review and approval requirements of Subpart 7.1 and of this Subpart may be fulfilled. It is no longer permissible for any DLA activity or program office to expend funds for acquiring goods or services (including funds provided via MIPR to another DoD or a non-DoD activity) without the involvement of DLA contracting personnel; specifically, this means the involvement of a warranted contracting officer for all acquisitions valued greater than the simplified acquisition threshold.

(b) Any acquisition of services via a non-DoD multiple-award contract vehicle must be consistent with the requirements of Section 803 of the National Defense Authorization Act for Fiscal Year 2002, Competition Requirements for Purchase of Services Pursuant to Multiple Award Contracts (implemented in DFARS 208.405-70 and 216.505-70). This section is concerned with the “fair opportunity to compete” and “fair notice of intent” requirements and exceptions pertaining to multiple-award contracts (MACs). The rule “follows the money:” Civilian agencies that receive DoD funds to obtain services for DoD must comply with DFARS 208.405-70, Additional ordering procedures for services, and 216.505-70, Orders for services under multiple-award contracts. However, there is a distinction made between GSA FSS and all other non-DoD MACs. For the former, the contracting officer is required to contact as many schedule holders as practicable to ensure that at least three responses are received. For the latter, all contractors offering under the MAC must be given a fair notice of intent to make the purchase, and all must be afforded an opportunity to make an offer and have it fairly considered. See 8.405-70(c)(1) and DFARS 208.405-70, DFARS 216.505-70, and DLAD 37.105, Competition in service contracting, for further information.

(c) Nothing in this subpart is intended to affect the applicability of FAR Section 8.002, Priorities for Use of Government Supply Sources; FAR 8.405-6, Sole Source Justification and Approval (for orders against FSS); FAR Subpart 17.5, Interagency Acquisitions under the Economy Act; or DoD Instruction 4000.19, Interservice and Intragovernmental Support.

(d) Financial management personnel are responsible for ensuring:

(1) That the individual preparing the documentation required in 7.9002(b) and 7.9003(b) certifies that all applicable DLA review and approval policies have been followed.

(2) That funds are available and appropriate for the procurement action.

7.9002 Policies and procedures pertaining to direct acquisitions.

(a) All direct acquisitions of supplies or services are subject to the review levels specified in DLAD 1.690. Direct acquisitions of services shall also comply with the documentation, review and approval requirements of 37.590. A DLA contracting officer shall review and execute, within the limits of his/her warrant, the direct acquisition of supplies and/or services for every acquisition with a total value over the simplified acquisition threshold.

(b) For all direct acquisition orders for supplies or services placed against non-DoD contracts, including GSA federal supply schedule (FSS) orders, and for each blanket purchase agreement issued against a GSA FSS, the buyer, contracting officer, ordering officer or other authorized DLA official maintaining the contract file shall document that:

(1) The order is in the best interests of DLA. Consider such factors as satisfying customer requirements; cost effectiveness, taking into account discounts and fees, and price; delivery schedule; non-availability of a suitable contract within DoD; contract administration/oversight; small business opportunities; and any other factors, as applicable.

(2) Supplies or services to be provided are within the scope of the non-DoD contract.

(3) Funding is available and appropriate for the acquisition. The documentation shall reflect that the financial management organization validated that funds are appropriate for the acquisition; see 7.9001(d)(2), above.

(4) Any terms, conditions and/or requirements unique to DoD or DLA are incorporated into the order to comply with applicable statutes, regulations and directives (e.g., the requirement that the items listed in DFARS 225.7002-1, pertaining to restrictions on food, clothing, fabrics, specialty metals, and hand or measuring tools, and that are procured with DoD funds, be of domestic origin).

(5)(i) All procedures contained in this subpart, and in 1.690, 17.5, 17.78, and 37.5, as applicable, have been followed. Also, although PGI 17.9602 contains procedures that specifically support Subpart 17.96, which pertains to non-Economy Act assisted acquisitions, certain procedures have applicability to direct acquisitions. Accordingly, these PGI sections also need to be addressed for each direct acquisition from a non-DoD agency.

(ii) A signed certification to this effect shall be included in the file; see 7.9001(d)(1), above.

7.9003 Policies and procedures pertaining to assisted acquisitions.

(a) All assisted acquisitions of supplies or services are subject to the review levels specified in 1.690. Assisted acquisitions of services shall also comply with the documentation, review and approval requirements of 37.590. An assisted acquisition of supplies or services requires review by a DLA warranted contracting officer for every transaction with a total value over the simplified acquisition threshold.

(b) For all assisted acquisitions of supplies or services placed against non-DoD contracts (including GSA federal supply schedule (FSS) orders), the buyer, contracting officer, ordering officer or other authorized DLA official maintaining the contract file shall document that:

(1) The use of a non-DoD contract is in the best interests of DLA. Consider such factors as satisfying customer requirements; cost effectiveness (taking into account discounts and fees) and price; delivery schedule; non-availability of a suitable contract within DoD; contract administration/oversight; small business opportunities; and any other factors, as applicable.

(2) Supplies or services to be provided are within the scope of the (non-DoD) contract to be used. Coordinate with the non-DoD contracting officer to verify the requirement is within the scope of the assisting agency’s selected contract.

(3) The funding appropriation is legal and proper for the acquisition and used in accordance with any appropriation limitations. (The documentation shall reflect that the financial management organization validated that funds are appropriate for the acquisition; see 7.9001(d)(2), above, and 17.9604.

(4) Any terms, conditions and/or requirements unique to DoD or DLA are incorporated into the order or contract to comply with applicable statutes, regulations and directives (e.g., the requirement that the items listed in DFARS 225.7002-1, pertaining to restrictions on food, clothing, fabrics, specialty metals, and hand or measuring tools, and that are procured with DoD funds, be of domestic origin).

(5) All procedures contained in this subpart, and in 1.690, 17.5, 17.78, 17.96, and 37.5, and PGI 17.96, as applicable, have been followed. A signed certification to this effect shall be included in the file; see 7.9001(d)(1).

(6)(i) For interagency acquisitions subject to the Economy Act (31 U.S.C. 1535), comply with the determination and findings (D&F) requirements at FAR 17.503, and provide the D&F, signed by a senior executive or flag or general officer, to the servicing activity (i.e., the non-DoD activity whose contract is being or shall be used) in accordance with FAR 17.504 and DFARS 217.504.

(ii) Assisted acquisitions by GSA are generally authorized by other statutes, such as the Federal Property and Administrative Services Act or the Clinger-Cohen Act, and are therefore not subject to the Economy Act; no D&F is required to be prepared. To the extent other non-DoD contracts are authorized under other statutes (e.g., GWACS authorized under 40 U.S.C.11302(e); use of Franchise Fund activities authorized by various public laws (see 31 U.S.C. 501 note); and similar specific statutory authorities), the Economy Act does not apply, and D&Fs are not required to be prepared. For complete treatment of these non-Economy Act transactions, see Subpart 17.96.

(7) Departmental policy, as set forth in the October 29, 2004 memorandum, Proper Use of Non-DoD Contracts, jointly signed by USD(AT&L) and the Principal Deputy Under Secretary of Defense (Comptroller), reflects the requirements of Section 854 of the National Defense Authorization Act for Fiscal Year 2005. That section requires data to be collected and reported on the use of assisted acquisitions throughout the Department of Defense, specifically with reference to service charges imposed on these purchases by the assisting (non-DoD) activity. The Federal Procurement Data System – Next Generation (FPDS-NG) will eventually provide the automated reporting capability to fulfill this requirement. Until DLA is a full participant in the FPDS-NG system, each contracting activity shall locally maintain a list of all assisted acquisitions placed on their behalf, with the service charge identified for each. This list shall be submitted to J71 on a fiscal-year basis no later than October 31st each year.