# DLAD PGI PART 8 – REQUIRED SOURCES OF SUPPLIES AND SERVICES

- DLAD PGI PART 8 – REQUIRED SOURCES OF SUPPLIES AND SERVICES

- PGI SUBPART 8.4 – FEDERAL SUPPLY SCHEDULE

- PGI 8.406-4 Termination for cause.

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

- PGI 8.703-90 (b) Procedures for additions of Ability One products to the procurement list.

DLAD PGI PART 8 – REQUIRED SOURCES OF SUPPLIES AND SERVICES

PGI SUBPART 8.4 – FEDERAL SUPPLY SCHEDULE

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

PGI 8.406-4 Termination for cause.

(a) – (d) [Reserved.]

(e)(S-90) Reporting.

(1) Each DLA activity shall identify a point of contact (POC) or POCs responsible for entering information relating to terminations in the Federal Awardee Performance and Integrity Information System (FAPIIS) in accordance with FAR 8.406(e). Activities that have satellite contracting offices (e.g., DLR sites) may designate separate POCs at each individual location. The contracting officer or acquisition specialist shall provide the required information to their FAPIIS POC in sufficient time for the information to be reported in the Federal Awardee Performance and Integrity Information System. Reference material to include the FAPIIS Users Manual is available at http://www.cpars.csd.disa.mil/fapiismain.htm.

(2) FAPIIS POCs are responsible for entering the record in FAPIIS within the time frame specified in FAR 42.1503(f). FAPIIS POCs shall notify the contracting officer when the record has been submitted. The contracting officer shall document the contract file to show that the action was reported to the Federal Awardee Performance and Integrity Information System.

(3) The DLA activity also shall report the termination via email to DLA HQ Acquisition Policy and Systems Division (J71) within three (3) working days after the termination is reported to the . Federal Awardee Performance and Integrity Information System. The email shall be sent to HQJ71.Reports@dla.mil and include the contract number, date and type of termination, any change, and date data was reported to the Federal Awardee Performance and Integrity Information System.

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

(Revised December 13, 2012 through PROCLTR 2013-14)

PGI 8.703-90 (b) Procedures for additions of Ability One products to the procurement list.

(1) Refer to Ability One’s site for general guidance at http://www.abilityone.gov/procurement_list/services_commodity.html.

(2) When AbilityOne seeks to add items to the procurement list for DLA or DoD use only, the AbilityOne liaison will work directly with the appropriate supply chain’s contracting officer in conjunction with the supply chain’s small business office on obtaining concurrence for the proposed addition as well as requirements, pricing/costs, drawing/specifications, and proposed delivery schedules. The supply chain’s contracting officer signs the price concurrence letter, which is AbilityOne form CBSD 1005, when an agreeable price proposal is submitted. The contracting officer will attempt to complete these actions within 30 days.

(3) When AbilityOne seeks to add items to the procurement list for a total Government requirement (TGR) or for a broad Government requirement (BGR) that are assigned to DLA for management and/or procurement, AbilityOne is required to submit a business case analysis (BCA) and supporting documents to DLA HQ J334 for consideration.

(i) The BCA package is submitted by a central nonprofit agency (CNA), NIB or NISH, for AbilityOne to the DLA HQ J3 technical and quality assurance division. The DLA HQ J334 Technical and Quality Assurance Division determine if the national stock number (NSN) is managed by GSA or DLA. If responsibility is with GSA, the DLA HQ J334 Technical and Quality Assurance Division notifies the submitting central nonprofit agency that items are not managed by DLA and no further action by DLA will be required. If management responsibility is found to be with DLA or if DLA is assigned procurement responsibility for an item, a copy of the business case analysis is sent to the small business office AbilityOne liaison in the appropriate supply chain to begin the review. The small business office will contact the appropriate supply chain technical and quality point of contact.

(ii) The contracting officer shall work with the cognizant supply chain technical and quality point of contact to ensure the following review is accomplished.

(A) For existing NSNs, the technical and quality point of contact reviews the item’s technical information for potential technical limitations to AbilityOne providing the support, such as controlled sources.

(B) For proposed new items, the technical services branch determines if there is sufficient information provided to develop an adequate procurement item description (PID) or if an existing NSN can be revised to allow acceptance of the proposed item. An existing customer demand/supply request form is not required. If the BCA adequately supports the need to add the new item, the technical and quality point of contact will work with DLA Logistics Information Service to catalog the new item. The technical and quality point of contact provides a summary of their findings to the appropriate supply chain small business office.

(C) The supply chain shall designate a contracting officer to review the BCA and evaluate the AbilityOne request. The designated contracting officer shall normally have responsibility for the DLA-managed/procured item(s) that is/are proposed for addition to the procurement list. The designated contracting officer is responsible for the following:

(1) The contracting officer shall review the business case analysis file, all supporting data, and market comparisons to determine price reasonableness. The price must be fair and reasonable based on a range of other current quotes or market comparisons; AbilityOne is not expected to be the absolutely lowest price, nor are they expected to match out-of-date prices, loss leaders, salvage prices, sale prices especially when using raw materials that have high market volatility. AbilityOne prices are free on board (f.o.b.) origin.

(2) The contracting officer shall include a statement of price reasonableness in the contract file. An existing customer demand/supply request form is not required. If the business case analysis adequately identifies a need it should be considered for sponsorship regardless of demand history.

(i) If the proposed addition is for an existing NSN for which there is long term contract coverage, the contracting officer may base price reasonableness on comparison with the current contract price.

(ii) When comparing the proposed fair market price (FMP) to an f.o.b. destination contract price, the contracting officer may add the estimated freight to the proposed fair market price for an accurate comparison. The proposed fair market price plus the estimated freight cost should be reviewed in accordance with standard price analysis in order to determine contract price for procurement list addition concurrence.

(iii) If the proposed fair market price plus the estimated freight is unreasonably higher than the DLA f.o.b. destination contract price, the contracting officer shall not concur with the proposed addition to the procurement list.

(A) The contracting officer shall notify the supply chain small business office AbilityOne liaison that it is not in the best interest of the Government to support the procurement list addition at a price unreasonably higher than the current contract price.

(B) The AbilityOne liaison notifies the appropriate central nonprofit agency, DLA HQ J334 and J74 of the denial. The central nonprofit agency may either propose a lower price or withdraw the BCA.

(iv) If the proposed addition is for a new NSN, the contracting officer shall base price reasonableness on comparison with similar items, market research or a method found at FAR 13.106-3 or, if necessary, FAR 15.404-1.

(3) If the contracting officer concurs with the proposed addition, the contracting officer shall sign and electronically send the signed AbilityOne form CBSD 1005 to the supply chain small business office AbilityOne liaison with a brief statement in the email that he/she concurs with the proposal; include the BCA number for the proposal that was provided as reference. The contracting officer will attempt to complete these actions within 30 days. The AbilityOne liaison will be responsible for sending the information, with BCA number as reference, to the applicable central nonprofit agency, DLA HQ J334, and DLA HQ J74.

(4) Upon receipt of the procurement list addition notice and confirmation that the non-profit agency is ready for production, the contracting officer determines the appropriate contracting vehicle for the item. The contracting officer should consider the Government-wide nature of the procurement list and ensure the item is available to all Federal agencies.

(i) If the item is an existing NSN that is on a term contract or blanket purchase agreement (BPA), the contracting officer coordinates with the stock procuring contracting officer to find out when the current option period expires.

(ii) New additions for new NSNs may be added to AbilityOne agreements any time after receipt of the procurement list addition notice and production-ready letter.

(iii) Additions for existing NSNs that are on requirements contracts cannot be added to an AbilityOne agreement until after the current option period expires.

(iv) If the addition is for existing NSNs on a prime vendor contract, the contracting officer will determine whether to require the prime vendor to acquire the product from AbilityOne or to remove the NSN(s) from the contract and add to an AbilityOne agreement.

SUBPART 8.73 USE OF GOVERNMENT-OWNED PRECIOUS METALS

(Revised March 22, 2012 through PROCLTR 2012-30)

8.7303 Procedures.

In accordance with DoD 4160.21-M, Defense Materiel Disposition Manual, Chapter 11, Precious Metals Recovery Program (PMRP), the following procedures apply:

(a) Prior to soliciting offers for awards of contracts requiring precious metals, the contracting officer shall contact the DLA Troop Support precious metals supply planner, DLA Troop Support-FCBC, phone: 215-737-8579, fax: 215-737-8588, indicating the item, quantity, and grade of precious metal required for the acquisition. If the required amount is available, request in writing to DLA Troop Support-FCBC that the required quantity be reserved to cover the acquisition including the estimated delivery schedule. DLA Troop Support-FCBC will reserve requested quantities of precious metals for 120 days. The precious metal national stock number (NSNs) managed by DLA Troop Support-FCBC are as follows:

NSN Nomenclature Unit of Issue 9660-00-042-7768 Platinum granules......... Troy ounce. 9660-00-151-4050 Platinum sponge............Troy ounce. 9660-00-042-7733 Gold bullion/granules....Troy ounce. 9660-00-042-7765 Palladium granulations..Troy ounce. 9660-01-039-0320 Palladium sponge...........Troy ounce. 9660-00-106-9432 Silver bullion/granules...Troy ounce. 9660-01-010-2625 Rhodium.........................Troy ounce. 9660-01-011-1937 Iridium sponge.........................Troy ounce. 9660-01-039-0313 Ruthenium sponge.......................Troy ounce.

(b) To requisition precious metals, the contracting officer shall submit a military standard requisitioning and issue procedure (MILSTRIP) requisition to DLA Troop Support-FCBC. The requisition shall cite full troy ounces (partial ounces shall be rounded off to the nearest whole ounce). See instructions in 8.7303(d) for how to calculate. Exception data shall be cited in the “remarks” section of the requisition. The exception data are:

(1) An unclassified "ship to" address specifying exact location (building, office, and individual) and applicable zip code. The DoDAAC is not always sufficient for delivery;

(2) The number of the contract or work order on which the precious metal is to be used, for control and audit purposes;

(3) The end item application, the NSN, the part number, or any other data that identifies the item or component in which the precious metal shall be used, as well as the quantity of precious metal which shall be used for each item or component, if known ; and

(4) Name and telephone number of a point of contact at the requisitioning activity, to resolve any problem, as required.

(c) The Defense working capital fund issue price to the requiring activity is established by DLA Troop Support based on PMRP recovery costs plus an authorized surcharge (such as for administration, insurance, and transportation). Transportation is usually accomplished by premium method (armored van); therefore, multiple requisitions to the same destination should be consolidated whenever possible. Delivery normally will be accomplished within 3 weeks after receipt of the requisition by the DLA Troop Support supply planner.

(d) The formulas for computing the number of troy ounces of Government-Furnished (GF) precious metal are provided in 8.7303(d)(1)-(3). Quantities are rounded to the nearest whole number.

(1) If the end item being procured is in troy ounces: Multiply the number of end items being procured by the percent of precious metal in the end item.

Example: Requirement is for 30,000 troy ounces of precious metal brazing alloy, and each troy ounce of the alloy has a 31% precious metal content.

30,000 x .31 = 9,300 troy ounces of GF precious metal

(2) If the end item being procured is in avoirdupois (avoir) pounds (American pound weight): Multiply the total number of pounds being procured by the percent of precious metal in the end items; then multiply that total by 14.583 (equivalency used to convert avoir pound weight to troy ounces).

Example: Requirement is for 26,538 pounds of precious metal brazing alloy, and each pound of alloy has a 15.5% precious metal content.

26,538 x .155 = 4,113.39 (avoir pound of precious metal needed)

4,113.39 X 14.583 = 59,985.56 or 59,986 troy ounces of GF precious metal

(3) If the end item being procured is in troy pounds: Multiply the total number of troy pounds being procured by the percent of precious metal in the end item; then multiply the number of troy pounds of precious metal by 12 (number of troy ounces in a troy pound).

Example: Requirement is for 12,156 troy pound of precious metal brazing alloy, and each troy pound of alloy has a 15.5% precious metal content.

12,156 x .155 = 1,884.18 (troy pounds of precious metal)

1,884.18 x 12 = 22,610.16 or 22,610 troy ounces of GF precious metal