# DLAD PART 2 – DEFINITIONS OF WORDS AND TERMS

- SUBPART 2.1 – DEFINITIONS

- 2.101 Definitions.

PART 2 – DEFINITIONS OF WORDS AND TERMS

TABLE OF CONTENTS

SUBPART 2.1 – DEFINITIONS

2.101 Definitions.

SUBPART 2.1 – DEFINITIONS

(Revised November 5, 2013 through PROCLTR 2014-05)

2.101 Definitions.

“Acquisition Executives” as used in this Directive means the senior acquisition executives for DLA Aviation, DLA Energy, DLA Land and Maritime, and DLA Troop Support.

“Acquisition Strategy Review Panel (ASRP)” means a DLA Headquarters (HQ) review that will review and approve the proposed contracting approach (see 1.690-7 and PGI 1.690-7).

“Alpha contracting” means an innovative contracting technique, typically used in satisfying non-competitive (or limited competition) requirements, that transforms the acquisition process from a consecutive, sometimes iterative, process into a more efficient concurrent process using a team approach to concurrently develop a requirement through award and implementation. Information on alpha contracting within DoD can be found at http://www.dau.mil.

“Analysis of alternatives (AoA)” means an abbreviated evaluation of potential sourcing strategies in support of a performance based logistics (PBL) acquisition.

“Assisted acquisition” means a contract awarded or task or delivery order placed on behalf of DLA, in an amount over the simplified acquisition threshold and with the use of DLA or DoD funds, by an official of the United States employed by other than a Department of Defense activity. This definition includes situations in which DLA or DoD funds are provided to an acquisition activity which then obligates its own funds on the contract or order.

“Bridge contract” means a non-competitive contract or order, or an extension to an existing sole source or competitive contract or order, that is awarded to the existing contractor to bridge th e time between the end of the existing contract or order and the award of a follow-on contract or order. The exercise of all options or extension provisions under FAR 17.207 is not considered a bridge.

“Business case analysis (BCA)” means a document that identifies viable functional alternatives and presents economic and technical arguments for carrying out alternatives over an acquisition life cycle to achieve stated business objectives. The BCA is designed to identify costs and benefits that the Defense Logistics Agency (DLA) will realize through the initiation of supply and services acquisition strategies. This analysis will help determine the alternative that is in the Government's best interest. The BCA process compares DLA's current "as-is" or status quo benefits and costs of doing business to the benefit and costs of viable acquisition alternatives.

“Business clearance” means, depending on the decision point of the acquisition, approval to proceed with an acquisition. For competitive acquisitions, business clearance is approval to issue a solicitation; approval to enter into discussions; or approval to request final proposal revisions. For non-competitive acquisitions, business clearance is approval to request a proposal, or approval to enter into negotiations.

“Chief of the Contracting Office (CCO)” means a Government employee with certification in the acquisition career field who has direct managerial responsibility for the operation of a contracting office as defined in FAR 2.1. CCOs are listed below.

Contracting Office | CCO
DLA Aviation Supplier Operations at Richmond, VA | Chief of the Contracting Office
DLA Aviation Strategic Acquisition at Richmond, VA | Chief of the Contracting Office
DLA Aviation Strategic Acquisition/AU, Ogden | Chief of the Contracting Office
DLA Aviation Strategic Acquisition/AO, Oklahoma City | Chief of the Contracting Office
DLA Aviation Strategic Acquisition/AP, Philadelphia | Chief of the Contracting Office
DLA Aviation Strategic Acquisition/AW, Warner Robins | Chief of the Contracting Office
DLA Aviation Strategic Acquisition/AH, Huntsville | Chief of the Contracting Office
DLA Energy | Director, Procurement Process Support Directorate
DLA Land and Maritime, including all detachments who do not have a CCO onsite | Director, Procurement Process Support Directorate, DLA Land and Maritime
DLA Land Warren (ZG) | Director, Depot Level Repairable Procurement Operations
DLA Land Aberdeen (DLA Land ML) | Director, Depot Level Repairable Procurement Operations
DLA Land Albany (DLA Land and Maritime – SAPD) | Director, Procurement Process Support Directorate
DLA Maritime Mechanicsburg (DLA Maritime – ZI) | Director, Depot Level Repairable Procurement Operations
DLA Troop Support (includes Medical, Subsistence, Clothing and Textile (C&T), Construction and Equipment (C&E), Industrial Hardware; DLA Troop Support Europe and Africa; and DLA Troop Support Pacific) | Director, Procurement Process Support Directorate
DLA Contracting Services Office | Chief of the Contracting Office
DLA Disposition Services | Chief of Contracting
DLA Distribution | Chief of Contracting
DLA Document Services | Chief of Contracting
DLA Logistics Information Services | Chief of Contracting
DLA Strategic Materials | Director of Contracting
Defense Media Activity (DMA), including DMA Riverside Contracting Office and DMA Fort Meade Contracting Office | Director, Acquisition and Procurement

“Commercial item” – See 12.102(90) regarding determinations of commerciality.

“Component Acquisition Executive” (CAE) means the Director, DLA Acquisition (J7), pursuant to Delegation of Acquisition and Acquisition Management Authority memorandum dated January 29, 2007. The CAE is responsible for all acquisition matters within DLA.

“Contract clearance” means approval to award a contract or exercise an option, as appropriate.

"Contracting activity." The Director, DLA Acquisition (J7) shall exercise the functions, not otherwise delegated, of head of the contracting activity for any DLA contracting office not designated as a "contracting activity" pursuant to DFARS 202.1. Actions required by the FAR, DFARS, this directive, or other directives involving the functions of the head of the contracting activity not otherwise delegated shall be referred to DLA HQ, attention: J71.

“Contracting Offices" means contracting offices not designated as contracting activities in DFARS 202.101, including the contracting offices listed below. The Director, DLA Acquisition (J7), shall exercise the functions of head of the contracting activity, not otherwise delegated, for any contracting office not designated as a contracting activity. Actions required by the FAR, DFARS, this directive, or other directives involving the functions of the Head of the Contracting Activity not otherwise delegated shall be referred to DLA Acquisition Operations (J72).

DLA Contracting Services Office

DLA Disposition Services

DLA Distribution

DLA Document Services

DLA Logistics Information Service

DLA Strategic Materials

Defense Media Activity (DMA)

“Corporate contract” means a multi-item, multiple year long-term supply contract that includes items managed across supply chains and/or military services. This type of contract may be identified by a “9” in the tenth position of the procurement instrument identification number (PIIN). (See 4.7003, 4.7004, and DFARS 204.7003.)

“Defense Supply Center” (DSC) as used in this directive means DLA Land and Maritime, DLA Aviation, and DLA Troop Support unless otherwise stated in individual paragraphs.

“Depot Level Repairable (DLR) Detachment” means the DLA DLR procurement office at a military service site that is responsible for providing direct contracting and related support for procurement of depot level repairable items.

“Direct acquisition” means a task or delivery order placed by a DLA buyer, contracting officer, ordering officer, or other authorized DLA official, in an amount over the simplified acquisition threshold and with the use of DLA or DoD funds, against a contract vehicle established outside the Department of Defense.

“Economy Act order.” Specific statutory authority is required for a DoD activity to place an order with a non-DoD Agency for goods or services, and to pay the associated cost. If a more specific statutory authority does not exist, the default is the Economy Act, 31 U.S.C. 1535. The FAR states that the Economy Act may also be used as the authority for the placement of orders “between major organizational units within an agency.” Within the Department of Defense, this means that a military service or Defense agency may use the Economy Act to acquire goods or services from or through another DoD component when other, more specific statutory authority is unavailable. Guidance for use of the Economy Act as the authority for interagency acquisitions can be found in FAR Subpart 17.5, DFARS Subpart 217.5, Subpart 17.5 of this guidance (the DLA Acquisition Directive), and volume 11A, Chapter 3 of the DoD Financial Management Regulations, DoD 7000.14-R. Guidance for use in intradepartmental acquisitions can be found in volume 11A, Chapter 3 of the DoD Financial Management Regulation and DoDI 4000.19, Interservice and Intra-Governmental Support.

“Head of agency” or “agency head” means the Director, DLA Acquisition (J7) pursuant to delegation of authority memorandum dated January 27, 2007.

“High-visibility (Hi-Viz)” refers to acquisitions that are deemed to represent high risk to DLA in terms of factors such as mission criticality, financial investment, and stewardship responsibilities. (See also 1.690-4.)

“Inventory control point (ICP)” as used in this directive means DLA Land and Maritime, DLA Energy, DLA Aviation, and DLA Troop Support, unless otherwise stated in individual paragraphs.

“Integrated acquisition review board (IARB)” means the DLA HQ decision-making authority that conducts a detailed review and approval of acquisitions prior to key decision points. The IARB has the ability to continue the acquisition, modify the strategy, terminate the process, or determine how next phases should proceed. (See 1.690-7 and PGI 1.690-7.)

“Integrated product team (IPT)” means a team composed of representatives from appropriate functional disciplines working together to build successful programs, identify and resolve issues, and make sound and timely recommendations to facilitate decision-making. There are three types of IPTs: overarching IPTs (OIPTs) that focus on strategic guidance, program assessment, and issue resolution; working level IPTs (WIPTs) that identify and resolve program issues, determine program status, and seek opportunities for acquisition reform; and program level IPTs that focus on program execution and may use input from industry.

“Interagency acquisition.” means an acquisition in which a DoD activity (requesting DoD agency/customer) needing goods or services obtains them from or with the assistance of a non-DoD agency (assisting/servicing agency/performer). For example, a DLA purchase from the General Services Administration’s Federal Supply Schedules is considered an interagency acquisition. (See Subpart 7.90.)

“Long term contract” means any contract with a contract period, including base and options, greater than three (3) years. (See 16.190 and 17.9301.)

”Non-economy act order.” This is an order, entered into under specific statutory authority, by a DoD component with a non-DoD Agency for the provision of goods or services that will be executed by a non-DoD Agency contracting activity (assisted acquisitions). Specific statutory authorities are the acquisition services fund, through which purchases are authorized to be made from the General Services Administration (GSA) (see 41 United States Code (U.S.C.) 251 et seq. and 40 U.S.C. 501); Franchise Fund authority (first established by Public Law (P.L.) 103-356, Title IV, section 403; see 31 U.S.C. 501 note), by which other Federal agencies may enlist the support of the Departments of the Treasury or Interior, among others; and project order authority, derived from 41 U.S.C. 23, which permits use of depot-level maintenance and repair (organic manufacturing) facilities by the DoD components. Considerations for use of any non-Economy Act authority for interagency acquisitions can be found in Subpart 17.96.

“Non-severable services.” This is a service contract whose benefit to the requiring activity only occurs at the end of the contractual period, because performance cannot easily be broken down into discrete undertakings. Non-severable work and services must be delivered whole or to completion in order for the requiring activity to realize any benefit from contract performance. For example, no benefit would be realized from a contract with a 12-month term for construction of a bridge that is terminated after 6 months, because the structure completed to that point would be unable to fulfill the original requirement for which the bridge was intended. A more pertinent example for DLA is a contract for performance of a study and preparation of a report. Even though performance proceeds throughout the contract term, the value of the study would not be realized before the research was completed and the results analyzed, since the contract could not readily be separated into individual tasks, and its purpose is to produce the report.

“Partnership” means a support arrangement between DLA and a military service, DoD organization, such as the National Defense University, or a civilian Federal Agency, such as the Department of Veterans Affairs, to provide support at a defined service level.

“Performance Based Logistics (PBL)” means acquisitions of material and/or logistics support, such as inventory management, storage, materiel handling, and transportation, customer direct or DLA direct, where performance is measured or evaluated based on measurable outcomes that, to the maximum extent practicable, must be related to improved readiness, availability, or reduced overall costs to the customer and DLA. Performance-based logistics (PBL) acquisitions may include long term contracts (LTC), prime vendor (PV) contracts, tailored logistics support (TLS) contracts, and corporate contracts. (See 17.95 and 90.15.)

“Portfolio Manager” means Government individuals who are responsible for managing acquisitions of services. (Refer to 37.102(S-91).)

“Primary Level Field Activity(ies)” as used in this Directive means DLA Aviation, DLA Disposition Services, DLA Distribution, DLA Energy, DLA Land and Maritime, and DLA Troop Support.

“Prime Vendor (PV)” means a distributor who provides a commercial product line and incidental services to customers in an assigned region or area of responsibility. The prime vendor provides the products or services, which are to be delivered within a specified period of time after order placement. All PV contracts are tailored logistics support contracts.

“Procurement Management Review (PMR)” means the DLA Acquisition (J7) review that is conducted by an independent and objective team of contracting professionals from DLA Acquisition and field contracting activities and offices to provide periodic and specific subject and/or area reviews of contracting activities and offices. (See the DLA Procurement Management Review (PMR) Handbook found on eWorkplace.)

"Senior Procurement Executive" means the Director, DLA Acquisition (J7). The SPE also serves as the agency’s Component Acquisition Executive (CAE) pursuant to Delegation of Authority memorandum dated January 27, 2007.

“Senior Services Manager “ means the senior official responsible within DLA for the management of acquisition of services. (Refer to 37.102(S-91).)

“Services Program Manager” means the DLA HQ J74 subject matter expert on acquisition of services. This position supports the senior services manager.

“Severable services.” An agreement consisting of independent undertakings, expressed in a single instrument, is a severable services contract. It is capable of being divided, or “disassociated,” into legally distinct rights or obligations as a contract. A severable service is one that provides full value every day; that is, benefit is received by the requiring activity throughout the period while materials, work, or services are being performed. Even if the services are stopped prior to the originally planned end of the contract’s term, the requiring activity would still have received benefit. For example, contracts for the provision of daily secretarial and administrative support, or for weekly trash removal, are severable: if either contract was for a period of a year, but was terminated after 6 months, 6 months of benefit would have accrued to the receiving activity.

“Simplified acquisition threshold:” The contracting officer is delegated the authority to make the determination that the acquisitions are to be used to support a contingency operation or to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack. This determination should be placed in the contract file.

“Solicitations” includes “request for quotations” or “request for proposals” (see FAR Parts 13 and 15).

“Special interest acquisitions” means 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, or other OSD organizations, or a high potential to attract such interest. (See 1.690-5.)

“Supply, Storage, and Distribution (SS&D)” depot or site means the DLA SS&D procurement office at a military service site that is responsible for providing direct contracting and related support for procurement of logistics support functions and related items for the military service site.

“Supply Chains” as used in this Directive means DLA Aviation, DLA Energy, DLA Land and Maritime, and DLA Troop Support, unless otherwise stated in individual paragraphs.

“Tailored Logistics Support (TLS) Contract “ means an acquisition that is flexible, mobile, integrated, compatible, and precise in targeting support to the point of the customer’s need, which supports the full range of logistics functions, including shipping, receiving, storage, inventory management, and transportation or traffic visibility, to achieve a solution for a customer. Acquisitions included in this category are prime vendor (PV) contracts, similar existing support arrangements known as modified prime vendor initiatives (MPV), and future initiatives that have characteristics of PV arrangements, but are not considered traditional PV contracts; however, not all TLS contracts are PV contracts. (See 17.95.)

“Unified procurement/Defense working capital fund authority.” The Economy Act does not apply to intra-DoD procurements where items have been specifically assigned to DLA under the unified procurement system for DoD agencies (see DoD 4140.1-R and 4140.26-M). DLA has separate, specific statutory authority, 10 U.S.C. 2208, for acquisitions and sales of assigned items. Since DLA sales of items subject to DLA integrated materiel management are made pursuant to this statute, they are not subject to the Economy Act (see FAR 17.500(b)). The unified system is implemented in FAR section 8.002, pertaining to required sources of supply, and in DFARS Subpart 208.70, Coordinated Acquisition.