# DLAD PGI PART 25 – FOREIGN ACQUISITION

- DLAD PGI PART 25 – FOREIGN ACQUISITION

- PGI SUBPART 25.8 - OTHER INTERNATIONAL AGREEMENTS AND COORDINATION

- PGI 25.802-71 (S-90) End use certificates (EUCs).

- PGI SUBPART 25.70 – AUTHORIZATION ACTS, APPROPRIATIONS ACTS, AND OTHER STATUTORY RESTRICTIONS ON FOREIGN PURCHASES

- PGI 25.7002-2 Exceptions (domestic non-availability determinations).
- PGI 25.7003-2-91 [RESERVED]

- PGI 25.7301 General.

- PGI SUBPART 25.74 - DEFENSE CONTRACTORS OUTSIDE THE UNITED STATES

- PGI 25.7402 Contractor personnel authorized to accompany U.S. armed forces deployed outside the United States.

- PGI 25.7403-1 General.

- PGI SUBPART 25.78- ACQUISITIONS IN SUPPORT OF GEOGRAPHIC COMBATANT COMMAND’S THEATER SECURITY COOPERATION EFFORTS

- PGI 25.7801-90 (c) Vendor registration and vetting.

DLAD PGI PART 25 – FOREIGN ACQUISITION

PGI SUBPART 25.8 - OTHER INTERNATIONAL AGREEMENTS AND COORDINATION

PGI 25.802-71 (S-90) End use certificates (EUCs).

(a) [Reserved.]

(b) Requests to DLA HQ for EUCs shall show coordination through appropriate local command levels to include supply/demand planning, local Office of Counsel, the HCA or equivalent, and be signed by the Commander or Director. Requests for category I or category II EUC authorization; or a waiver for category III will include:

(1) Memorandum to J7 requesting authorization of the category I or category II EUC; or a memorandum requesting a Category III waiver from the OUSD,

(2) Executive summary,

(3) Draft category I or II EUC for Director, DLA to approve, or

(4) Draft category III waiver request for Director, DLA to approve.

J72 will process EUC requests or waivers and coordinate within HQ to include J3, DG, and J71. J71 will provide copies of signed EUCs in any of the categories to the appropriate office within OUSD.

(e) Category I EUCs.

(1) The Director, DLA may authorize and sign a category I EUC, or authorize the category I EUC and then delegate signature to the Component Acquisition Executive to sign the individual EUC.

(f) Category II EUCs.

(1) Category II EUCs are sent to OUSD(AT&L), who will notify DLA HQ of any further action required before final authorization of the EUC; otherwise, concurrence can be assumed after expiration of the 21 day period. After the 21 day period or receipt of concurrence by OUSD(AT&L), whichever comes first, the DLA Director may authorize and sign the “Declaration of End Use” or authorize execution of the individual EUC and then delegate signature to the Component Acquisition Executive.

(g) Category III EUCs.

(1) OUSD may likely specify that the agency establish procedures to ensure that any possible transfer of the equipment does not occur without obtaining prior approval from the country that requested the EUC.

(i) It is mandatory that field activities discuss how these restrictions on possible transfer will be met in the memorandum to J7 requesting the waiver and in the Executive Summary.

(ii) If required and necessary, the supply chain/contracting activity may prescribe mandatory labeling, training of customers, and/or certifications from requiring activities, that would make a prior approval requirement highly visible to the customer.

(iii) If DLA cannot ensure that there is a process in place, OUSD may not approve the waiver and/or the Director, DLA may not authorize the EUC.

(2) As specified in 6.1.3, Category III, of the DOD Directive, 2040.3, End Use Certificates, the requests for waiver shall address the following:

(i) The reason(s) that it is in the best interests of the U.S. Government to procure the item.

(ii) The limitations to be imposed by the exporting government and a justification for acceptance of those limitations by the U.S. Government.

(iii) A statement that no satisfactory alternative to the item, considering cost, schedule, or operational requirements, is available from domestic or foreign sources without equivalent limitations.

(3) Once the waiver is approved, DLA HQ J72 will prepare the Category III EUC for approval by the DLA Director who may sign or direct the Component Acquisition Executive to sign the individual EUC.

PGI SUBPART 25.70 – AUTHORIZATION ACTS, APPROPRIATIONS ACTS, AND OTHER STATUTORY RESTRICTIONS ON FOREIGN PURCHASES

(Updated September 9, 2013)

PGI 25.7002-2 Exceptions (domestic non-availability determinations).

(S-90) Requirement.

(a) The Berry Amendment requires designated items be of domestic origin, domestic content, and be manufactured or produced in the United States or its possessions unless an exception applies or unless a determination is made that the product cannot be acquired as and when needed in satisfactory quality and sufficient quantity at U.S. market prices (see DFARS 225.7002-1 for the restriction and 225.7002-2 for exceptions). This general requirement applies to any item of food, clothing (including the materials and components thereof; see DFARS PGI 225.7002-1 for examples distinguishing clothing from non-clothing items), tents, tarpaulins, covers, cotton, and other natural fiber products, woven silk or woven silk blends, spun silk yarn for cartridge cloth, synthetic fabric or coated synthetic fabric, including all textile fibers and yarns that are for use in such fabrics, canvas products, or wool, certain items of individual equipment, and hand or measuring tools. The Director, DLA is authorized to make a domestic non-availability determination (DNAD) that will allow purchase of a covered item. Specialty metals, however, are now subject to a separate domestic sourcing restriction contained in 10 U.S.C. 2533b, and nonavailability determinations for specialty metals require USD(AT&L) approval.

(b) When a contracting activity has a requirement for an item covered by the Berry Amendment for which no exception exists, it cannot be bought unless a DNAD is approved. Formal DNAD requests must be submitted to DLA HQ (J72). Contracting activities must first route DNADs through local coordination and review channels. J7 will review the DNAD request, obtain appropriate coordination, and, if appropriate, forward it to the Director, DLA for approval. The contracting activity should submit the entire DNAD package, including the completed Service certifications (see DFARS 225.7002-2(b)(2)(ii)), at least two months before it is needed. Also, if the domestic non-availability is anticipated to be permanent and no alternatives are possible, the field activity should separately prepare a corresponding FAR case for a permanent waiver request to add the item to FAR 25.104, Nonavailable articles, and include reference to that case in the determination and finding document, and the report and recommendation of the contracting activity. As described in more detail below, a DNAD package consists of the following documents: executive summary; determination and findings; letters to the requiring activities with alternatives; written, certified responses from the requiring activities; report and recommendation of the contracting activity Commander or Director; and warstopper analysis.

(1) Determination and Findings (D&F): This document must concisely focus on the specifics for concluding the item is unavailable domestically. This document must be summary in nature, be no longer than 2 pages, and be prepared with the times new roman 13 point font. Further relevant and supporting details must be included in the report and recommendation of the contracting activity Commander or Director. The D&F must:

(i) Identify the articles or items (or class of items, if applicable) being procured and their domestic availability status.

(ii) Explain whether any Berry Amendment exceptions are applicable and, if they are, explain why they are not adequate to support the requirement.

(iii) Discuss current market research and its results (e.g., market research has not revealed any domestic sources.) A more detailed discussion of the market research efforts and results can be presented in the report and recommendation of the contracting activity Commander or Director.

(iv) Identify the total quantity (including readiness quantities) to be procured and length of time the waiver is needed (e.g., period of contract performance).

(v) Address the DEPSECDEF requirement in DFARS 225.7002-2(b)(2) that the contracting activity analyze alternatives not requiring a Berry Amendment waiver, and the customers’ certified written responses that domestic alternatives are not a satisfactory substitute for the requirement.

(vi) Clearly specify any limiting criteria for use of the requested DNAD, such as restricted to a particular contracting program, weapon system, time period, or other condition. DNAD determinations should generally not be limited to a particular garment or item so as to preclude use in a similar garment or item, if the market research and nature of the requirement demonstrate that the nonavailable item or material can reasonably be determined nonavailable for similar garments or items.

(2) The contracting activity’s letter to the requiring activity (and all other branches of the services that use the item): 1) advising that the required item requires a waiver to the Berry Amendment; and, 2) describing alternatives that do not require a waiver under the Berry Amendment.

(3) The requiring activity’s written response (and written responses from other branches of the Military services that use that item, as applicable), certifying that the proposed alternatives and any other known alternatives not requiring a Berry Amendment waiver are unacceptable and explaining why they are unacceptable. The responses must be signed by an individual with the authority to approve use of an alternate item for the service(s).

(4) Report and recommendation of the contracting activity Commander or Director. This document should be signed by the Commander or Director of the contracting activity (or individual acting in that capacity). It provides for a more comprehensive and lengthy discussion of the facts than the D&F. There is no limit on the length of the report and recommendation of the activity Commander or Director. This report should describe in reasonable detail:

(i) The supply and procurement situation; the contractor’s commercial practices; any special or unusual circumstances; results of market research conducted and constraints, if any; the reasonable conclusions drawn; exchanges between engineering support activities and customers concerning the possible existence of alternative items that do not require a Berry Amendment waiver. Attach copies of market research related documents and any other records, and letters from contractors that explain why they are unable to either obtain the product domestically or identify the source of their product or components (more relevant for prime vendor procurements), as appropriate.

(ii) Potential political ramifications, Congressional involvement, morale issues, small business concerns, mission failure, troop support issues, etc., as appropriate. The discussion must include a procurement impact statement that describes the outcome if the DNAD is not approved.

(iii) The activity Commander or Director must include a finding that the analysis of alternatives and customer’s certification that no alternatives are satisfactory is reasonable and acceptable based on the activity’s knowledge of the item and market research.

(5) Warstopper analysis. Prior to submitting the DNAD request, ensure an analysis was conducted on the item to determine if the item is a candidate for a Warstopper investment that would result in obtaining domestic availability. Include with the package, even if it did not receive further approval from J74 to proceed as a warstopper project, a clear statement that the item has or does not have wartime demand or Service identified war reserve material requirements and a statement by the Chief of the Industrial Base group that the item has or does not have a reasonable opportunity to implement an industrial base measure that meets the requirements found in the industrial capability program – warstopper program management issuance, program description and approval document.

(c) The contracting activity will provide a copy of their executive summary to J72 as part of their DNAD request, including coordination by the HCA or equivalent and chief or supply chain counsel. A DNAD package will be assembled by J72 for the DLA HQ Senior Procurement Executive’s (SPE) submission to the Director, DLA. DLA HQ (J72) will staff the DNAD package for coordination with DLA Acquisition Policy Division (J71), Acquisition Programs and Industrial Capabilities Division (J74), DLA Office of General Counsel (DLA-DG), and DLA Office of Small Business Programs, and process for SPE signature to transmit it to the Director, DLA.

(d) Once the SPE signs the DNAD package, it will be forwarded to the Director, DLA. The Director, DLA will approve or disapprove the DNAD request and advise the DLA SPE of the decision. The SPE will then advise the contracting activity of the decision. J71 will provide a copy of each approved DNAD to USD(AT&L) within 10 days of receiving the determination.

(e) For each DNAD that is granted, the contracting activity is required to submit an annual report in accordance with 25.7002-2(S-90)(c).

(f) The requestor of the DNAD shall also conduct follow-on discussions with J74 concerning the feasibility of a warstopper project that could serve to limit the duration of the DNAD’s use.

(S-91) Minimizing Berry Amendment or specialty metals violations.

(a) DLA contractors are becoming aware of the increased attention and visibility that the Berry Amendment domestic source restrictions are receiving, and of the restrictions imposed by this statute, and the DFARS implementing guidance. This heightened awareness has resulted in a number of contractors notifying DLA of their violation of this statute and requesting DLA grant a “waiver.”

(b) Identification of potential violations after contract award.

(1) Once aware of a violation, DLA is presented with the challenge of not accepting the non-conforming end item(s) pending waiver consideration in order to ensure no Anti-Deficiency Act (ADA) violation occurs. This not only can result in delayed delivery to the customer, it also may place the contractor in an untenable financial position.

(2) To minimize the impact, the affected contracting activity must quickly analyze the market to verify that no domestic source is available and prepare a DNAD. In this situation, contracting officers must ensure that any DNAD requested is for the minimum time frame needed (but not exceeding the maximum reasonable time period needed) for a contractor or industry to become compliant, if it found that the contractor(s) was unaware of the requirement, but once made aware, can comply with a domestic source within a suitable start-up period.

(3) Specialty metals is now a separate domestic sourcing restriction contained in 10 U.S.C. 2533b, requiring USD(AT&L) approval for any DNADs requested by DLA.

(c) The following preaward steps should serve to minimize potential Berry Amendment or specialty metals violations after contract award. While the potential use of the suggestions below may depend on the size and complexity of the procurement, the suggestions provide a guide for use.

(1) Pre-proposal conference: If a Berry Amendment or specialty metal covered item is to be procured and a pre-proposal conference held, the domestic source restrictions should be highlighted to the attendees. This highlights the importance to the attendees, and allows for the correction of misunderstandings (e.g., different from the Buy American Act).

(2) Full text clause inclusion: The Berry Amendment is implemented by DFARS clause 252.225.7012 (252.225-7008/7009/7010 for specialty metals are separate restrictions from Berry) and 252.225-7015 for hand or measuring tools. Many activities incorporate these clauses by reference which requires the contractor to actively research the content of the clause. While it is the responsibility of the contractor to adequately understand all solicitation requirements, including the contents of 252.225-7008/7009/7010/7012/7015, the statutory background of the clause, the heightened attention compliance with the clause is receiving, and the significant difficulties non-compliance presents makes the clause an ideal candidate for full text inclusion in the solicitation.

(3) Plain language: The development and inclusion in solicitations of “plain language” that spells out the Berry Amendment and other domestic source restrictions is a consideration. However, such language must be used with caution and must have DLA HQ approval. Subtle changes in the wording of the domestic source restrictions could be legally and contractually misinterpreted by the contractor, causing conflict with the exact requirements of the clauses at DFARS 252.225-7012/7014/7015. Any such “plain language” wording would need to have significant legal review to confirm that nothing in the developed wording modifies the requirements of the clauses. Additionally, the “plain language” should only address the part of the Berry Amendment or domestic sourcing restriction that applies to the commodity being solicited.

(4) Mandatory discussion Item: When negotiated procurements are conducted for Berry Amendment covered items, domestic source restrictions as identified in DFARS 252.225-7012/7014/7015 should be a mandatory discussion item with the contractor. Contractors should be asked to confirm their understanding of the requirement in the documentation submitted with their final proposal revisions or other submitted documentation.

(5) Preaward surveys: If a preaward survey is required in accordance with FAR 9.106, the contracting activity should consider requesting the survey to also confirm the prospective contractor’s ability to trace the origin of materials incorporated into the end product being acquired.

(6) Evaluation factor: The contracting activity can consider whether use of an evaluation factor that determines the contractor’s ability to verify the source of materials is appropriate. Additionally, such a factor should be used judiciously, considering the complexity of the manufacturing process and size of the procurement so as not to unduly burden less “at risk” procurements.

(7) Additional considerations: The development or use of a formal contractor certification verifying compliance with the requirements of the Berry Amendment is not authorized (see FAR 1.107). If, however, there is any reason to doubt an offeror’s compliance with Berry Amendment requirements during the source selection process, the contracting officer must take steps to verify the offeror’s ability and willingness to comply, including making inquiry to the offeror and following up to ensure that offeror responses are adequate to support compliance.

(d) Post award actions relative to the domestic source restrictions of the Berry Amendment or specialty metals restriction fall into 2 general categories: 1) actions that may be taken to ensure continued contractor compliance during contract performance; and 2) action that should be taken once a potential violation is detected. Although it is clearly the performing contractor’s responsibility to ensure full compliance with all contract requirements, including the domestic sourcing restrictions specified in DFARS 252.225-7012/7014/7015, DLA can take reasonable steps, where appropriate, to validate the contractor’s continuing compliance. Such actions may reduce the potential for violations during performance. Violations detected during performance could result in Government non-acceptance of materials, delaying support to the warfighter, and non-payment to the contractor for the non-conforming items.

(e) Potential actions to ensure continued contractor compliance include:

(1) Domestic sourcing restrictions, especially Berry Amendment and specialty metal compliance should be a discussion item at post award conferences.

(2) The Defense Contract Management Agency (DMCA) is delegated responsibility to review, approve or disapprove, and maintain surveillance of the contractor’s purchasing system per FAR 42.302(a)(50). The contracting activities should consider requesting additional on-going DCMA emphasis of the contractor purchasing system’s ability to implement domestic source restrictions, and continuing verification of such through random records audits, etc.

(3) Prime vendor (PV) contracts present a unique challenge due to the multitude of parts and supplies that are frequently involved. The opportunity for domestic sourcing violations, particularly Berry Amendment violations, is even greater because of the commerciality of the products provided under these contracts. Contracting activities should consider developing contract provisions that require the PV contractor to periodically assess their suppliers’ compliance with Berry Amendment and other applicable domestic source restrictions. The nature and extent of the provisions would depend upon the particulars (i.e., number of items under contract, length of period of performance, extent that supplies to be provided are subject to Berry Amendment restrictions, etc.). Potential alternatives include periodic (e.g., quarterly) review of a certain percentage of total items under contract. The review could be as straightforward as the PV contractor sending the suppliers a standardized sheets explaining the restrictions of the Berry Amendment and other domestic sourcing restrictions and requiring the supplier to notify the prime contractor of any potential violation. The supplier could also be required to acknowledge receipt of the document by signing and returning it to the prime.

(f) Actions taken after contractor notification of a potential Berry Amendment or specialty metals violation:

(1) Verification: Ensure the item in question is subject to the restrictions of the Berry Amendment or other domestic sourcing restriction. Direct the contractor to positively determine the origin of the item in question.

(2) Suspend Government acceptance: The Government, in accordance with FAR 46.407, should not accept items that have non-domestic content in violation of the Berry Amendment or specialty metals restriction. Continued Government acceptance without the required DNAD could create an ADA violation under the Berry Amendment. The contracting activity should consider the issuance of a stop work order pending resolution of the violation. Allowing the contractor to continue performance after notification of the violation could subject the Government to additional claimed contract costs and further exacerbate the violation.

(3) Suspend payment: The contracting activity should ensure the Defense Finance and Accounting Service does not issue payment for non-conforming products nor make any new unauthorized progress payments pending resolution.

(4) Market research: Determine whether the item in question has a domestic source available.

(5) Substitute Product: For those items where it is subsequently determined a domestic source is not available, contracting activities should coordinate the potential use of an alternate item with the technical specification office of primary responsibility.

PGI 25.7003-2-91 [RESERVED]

PGI SUBPART 25.73 – ACQUISITIONS FOR FOREIGN MILITARY SALES (FMS)

(Revised July 1, 2013 through PROCLTR 2013-57)

PGI 25.7301 General.

(a) Definitions.

“Implementing Agency” means the U.S. Military Service that is managing the FMS case. It is identified by the letter used in the first position of the requisition document number. An FMS document number will look something like these: BATA54-3028-A001 or DCNA5V-3065-0002 or PTWB54-3014-0099. The implementing agencies are B-Army: the U.S. Army Security Assistance Center (USASAC) at New Cumberland, PA; D-Air Force: Air Force Security Assistance Center Directorate (AFSACD) at Wright Patterson AFB, OH; P-Navy/K-Marine Corps: NAVSUP Weapon Systems Support (WSS) at Philadelphia, PA.

“Purchaser” means the FMS customer.

(b) [Reserved.]

(c)(i)-(iii) [Reserved.]

(c)(iv)(A) Shipping terms for any contract of foreign military sales (FMS) material shall be as free on board (f.o.b.) origin. (Refer to DFARS PGI 225.7301(c)(iv).) These shipping terms ensure that cargo is recognized as U.S. Government property when shipped. With appropriate consideration obtained, existing contracts that contain f.o.b. destination terms for FMS shipments may be modified to f.o.b. origin as needed to facilitate an FMS shipment.

(B) An exception granted to DLA by the Defense Security Cooperation Agency (DSCA) allows medical equipment and medical systems that the contracting officer has determined require manufacturer installation to be shipped as f.o.b. destination. The Principal Director, Strategy, Defense Security Cooperation Agency, granted an exception to DLA for these items by memorandum, Subject: Response to Request for Standard Deviation from the Free on Board (f.o.b.) Requirement, dated April 13, 2010. J7 has granted a class deviation, FARS DEV 2013-08, to implement the DSCA exception. This exception is the only current exception in DLA to the f.o.b. origin policy for FMS shipments.

(c)(v) [Reserved.]

(c)(vi) All FMS contracts must include the MILSTRIP document number, supplemental address, and national stock number (NSN) for each contract line item number (CLIN).

(c)(vii)(A) In order to reduce misdirected shipments of FMS materiel, the contracting officer shall ensure that shipping addresses are not in FMS contracts. Instead, place a notice in the contract requiring the contractor to contact the applicable administering agency for shipping instructions, either by contacting the Supply Chain Transportation Office helpdesk at DLA Distribution for DLA-administered contracts or DCMA Transportation for DCMA-administered contracts as outlined in clause 52.247-9034, Point of Contact for Transportation Instructions. Contracts will not contain both DLA and DCMA as a Point of Contact for shipping instructions.

(B) Additional contract provisions may be appropriate to satisfy unique requirements for requisitions that contain a "Z" or "Y" and/or verification from the product specialist. However, do not list the freight forwarder or embassy addresses in the contract. Unique shipment requirements will be contained in the Transportation Plan as outlined in the Department of Defense (DOD) Manual 5100.38-M, Security Assistance Management Manual, Chapter C7.13.

(C) DLA Acquisition personnel are advised that under the terms of the letter of offer and acceptance (LOA) negotiated with foreign governments, title transfers to the foreign government at the contractor’s loading dock, except for the exception in (c)(iv)(B).

(D) Inspection and acceptance procedures for FMS.

(1) DLA Acquisition personnel are advised that since all FMS orders will be shipped f.o.b. origin, except for those in (c)(iv)(B), acceptance and inspection shall also be performed at origin. Inspection and acceptance is at destination for (c)(iv)(B).

(i) The contracting officer may authorize a Certificate of Conformance (CoC) from the supplier for FMS orders as being in the best interest of the Government. (See 46.390 and 46.392 regarding certificates of conformance.)

(A) Certificates of Conformance, when authorized by the Contracting Officer, shall be required of suppliers for each FMS line item being shipped. The CoC is included with the inspection receiving report and accompanies the shipment.

(2) See also 46.601-91 and the prescribed clause, 52.246-9020, Distribution of Material Inspection and Receiving Report, to be included as applicable in the contract.

(i) The clause requires the contractor to include hard copies of the Department of Defense (DD) Form 250, Wide Area Work Flow Receipt and Acceptance (WAWF-RA) Receiving Report in the exterior and interior shipping documentation for each package being shipped.

(ii) Alert suppliers of this requirement, as FMS orders without the hard copy shipping documentation are frequently delayed or detained.

(iii) For suppliers who qualify for DCMA’s Alternate Release Procedures (ARP) or other risk-based surveillance procedures, acceptance will be accomplished by the electronic signature of the DCMA quality assurance representative on the electronic DD 250 form found in Wide Area Work Flow.

(iv) For suppliers who do not qualify for ARP or other risk-based surveillance procedures, DCMA will perform inspection/acceptance manually, if needed.

(E) Acquisitions procured offshore (procurements awarded to outside contiguous United States (OCONUS) suppliers).

(1) DLA acquisition personnel, in accordance with the Security Assistance Management Manual, C.3.3.4.3 and C.7.19, must notify the implementing agency of any material procured offshore within three weeks after source identification. The implementing agency (see definition), which can be identified by the letter used in the first position of the requisition document number, is the U.S. Military Service that is managing the FMS case. The FMS cell in any of the centers can provide contact information for the implementing agencies. If the LOA permits, the purchaser may, for logistics reasons, request that the procurement be made from a contiguous United States (CONUS) source; the implementing agency will notify DLA of the purchaser’s decision.

(2) Notice of Availability (NOA). If the procurement is made from an offshore vendor, the contract administrator must send a Notice of Availability, DD 1348-5, to the appropriate notice of availability address listed in the Military Assistance Program Address Directory (MAPAD). (See https://www.transactionservices.dla.mil/daashome/mapad.asp.) Based on the Notice of Availability, the purchaser or its freight forwarder may direct movement of the materiel to an offshore facility in the same region as the materiel’s origin or to the freight forwarder’s facility in the CONUS. The purchaser is responsible for the cost of the movement to the CONUS freight forwarder, all export and/or import licenses, and customs clearance requirements imposed by the materiel’s country of origin and the United States Government.

PGI SUBPART 25.74 - DEFENSE CONTRACTORS OUTSIDE THE UNITED STATES

(Revised July 1, 2013 through PROCLTR 2013-56)

PGI 25.7402 Contractor personnel authorized to accompany U.S. armed forces deployed outside the United States.

Follow the most current guidance for the Synchronized Predeployment and Operational Tracker (SPOT) at the website provided at DFARS PGI 225.7402-5(a)(iv).

PGI 25.7403-1 General.

(e) For information and guidance relating to DoD antiterrorism/force protection policy for DLA contracts that require performance or travel outside the United States contact DES-SO, antiterrorism program manager, DSN 427-5400 or commercial (703) 767-5400.

PGI SUBPART 25.78- ACQUISITIONS IN SUPPORT OF GEOGRAPHIC COMBATANT COMMAND’S THEATER SECURITY COOPERATION EFFORTS

PGI 25.7801-90 (c) Vendor registration and vetting.

(1) The contracting officer shall ensure that all solicitations and resulting contracts with performance requirements in the CENTCOM Theater of Operations shall include written notice that all non-U.S. offerors, and all proposed non-U.S. subcontractors, must be registered online at the Joint Contingency Contracting System (JCCS) website in order to be eligible for award.

(i) Contracting officers issuing a solicitation for contracts with performance requirements in the CENTCOM theater of operations must register for an account in JCCS and must complete system training requirements prior to release of the solicitation. Instructions for account registration and training can be found online at http://www.jccs.gov.

(ii) Prior to the award of any contract with a performance requirement in the CENTCOM theater of operations, to a non-U.S .company, the contracting officer shall use the information obtained from JCCS to assist in conducting a responsibility determination of the company in accordance with FAR Part 9.

(A) In accordance with FAR 9.104-4, the contracting officers may directly determine a prospective subcontractor’s responsibility. DLA contracting officers shall use the information obtained from JCCS to assist in conducting a responsibility determination for all non-U.S. subcontractors being proposed by prime contractors in responses to solicitations with performance requirements in the CENTCOM theater of operations.

(B) Information from JCCS shall be used to assist the contracting officer in determining whether a contractor meets the general standards outlined for responsibility found in FAR 9.104-1, and shall not be used to establish undisclosed evaluation award criteria.

(2) The contracting officer should proceed to award the contract when he/she is able to make a determination that a prospective contractor is presently responsible and information received from JCCS supports such a determination (i.e. C2X approved). Information received from JCCS to support the award determination shall be included in the official contract file with the contracting officer’s determination of responsibility.

(3) The contracting officer shall withhold award of a contract to a prospective contractor and coordinate with J72 when information from JCCS does not support a finding that a prospective contractor is presently responsible or when a prospective contractor, or its subcontractor, has not registered in JCCS (i.e. not sent to C2X, C2X rejected, or sent to C2X). When communicating on this matter, extreme care shall be taken not to discuss specific details over non-secure means.

(4) If the contracting officer determines the need to pursue additional vetting, then the following steps will be taken:

(i) Request for expedited vetting:

(A) After ensuring all required vendor data has been entered into JCCS, the contracting officer will immediately alert their assigned DLA HQ J72 analyst and DLA HQ DI (NiPR email: diacounterintelligence@dla.mil) before forwarding requests for expedited vetting. The assigned DLA HQ J72 analyst after consulting with DLA HQ DI will instruct the contracting officer on how to submit the request (specific email addresses) and recommend an appropriate security classification in accordance with Department of Defense Instruction (DODI) 5200.01.

(B) The request includes either initially urgent requests or normal requests that become urgent. A request is considered urgent when the customer informs the contracting officer in writing that a delay will have cause severe operational impacts outweighing the risk of awarding to a potential rejected contractor.

(C) Once the request is received, the DLA HQ J72 analyst and DLA HQ DI representative will consult with the senior contracting office – Afghanistan (SCO-A) vetting representative to ascertain the criticality of the requirement.

(1) If all concur, the DLA HQ J72 analyst will forward the request to the DLA HQ J7 Director for coordination before officially submitting to the SCO-A vetting representative.

(2) If not, then the DLA HQ J72 analyst and DLA HQ DI representative will contact the contracting officer to discuss and determine whether additional information is needed and/or the request cannot be forwarded to SCO-A at the present time.

(D) Request for re-vetting or re-assessment:

(1) In the event the apparently successful offeror or contracting officers become aware of any contractors or subcontractors on existing contracts who have been vetted and are given “rejected” eligibility, the contracting officer will immediately contact their assigned DLA HQ J72 analyst. Being careful not to disclose sensitive or classified information, the contracting officer will convey the fact, he/she would like to discuss, “a C2X rejected vendor associated with [provide solicitation number or name of acquisition].” The J72 analyst will set-up and schedule a secure means to communicate with the contracting officer and gather additional information.

(2) The assigned DLA HQ J72 analyst will contact DLA HQ DI and the senior contracting official – Afghanistan’s (SCO-A) vetting representative to confirm the apparently successful offeror is rejected. If time permits, the J72 analyst or DI may request U.S. CENTCOM re-assess the rejected vendor. Re-assessments normally take at least 90 days to complete.

(3) Once the rejection is confirmed, the assigned DLA HQ J72 analyst will coordinate with the contracting officer, DLA HQ DI, General Counsel, and other concerned offices as required, to schedule a secure conference to discuss the matter.

(4) The contracting officer will file the request(s) in the official contract file.

(5) The contracting officer will have the following information ready to discuss as a minimum:

(i) Executive overview of the program and acquisition;

(ii) Brief history of the competition; and

(iii) The desired outcome, for example, either pursuing an exception to policy or awarding to the next apparently successful offeror with a C2X approved rating, along with justification supporting the position.

(6) The contracting officer will carry out the action decided at the meeting with the assistance, as needed, of DLA HQ J72 analysts and DLA HQ DI, and document the file accordingly, to include documentation of requests.

(5) Applicable clauses.

(i) The following clauses are to be incorporated into solicitations and contracts with an estimated value of more than $100,000 that are being, or will be, performed in the U.S. Central Command Theater of operations. This requirement applies to all such contracts that will be awarded on or before December 31, 2014.

(A) DFARS 252.225-7993, Prohibition on Contracting with the Enemy in the United States Central Command Theater of Operations (DEVIATION 2012-O0005)(JAN 2012)

(B) DFARS 252.225-7994, Additional Access to Contractor and Subcontractor Records in the United States Central Command Theater of Operations (DEVIATION 2012-O0005)(JAN 2012)

(6) Reporting requirements.

(i) Sections 841(e) and 842(b) of the fiscal year (FY) 2012 National Defense Authorization Act (NDAA) require the Secretary of Defense to submit a report of the use of these authorities each year, no later than March 1, in calendar years 2013, 2014 and 2015. Department of Defense (DoD) components shall submit their information to Defense Procurement and Acquisition Policy (DPAP) for a departmental report.

(A) DLA Headquarters (HQ) J71 will consolidate the reporting information for submission by DLA HQ J7 to DPAP.

(B) Each contracting office component shall submit the following information to DLA HQ J71 by January 15, in calendar years 2013, 2014 and 2015. Once all responses are received, DLA HQ J7 will submit a consolidated enterprise response not later than February 1 in calendar years 2013, 2014 and 2015.

(ii) Reporting period and due dates: Reports are to be submitted to DPAP covering each of the periods:

(A) January 1, 2012-December 31, 2012 - due to DPAP not later than January 31, 2013.

(B) January 1, 2013-December 31, 2013 - due to DPAP not later than January 31, 2014.

(C) January 1, 2014-December 31, 2014 - due to DPAP not later than January 31, 2015.

(iii) The reports will contain the following information:

(A) Section 841: The number of instances in which this authority was exercised to restrict, terminate, or void contracts, grants and cooperative agreements, and the basis for the actions taken for each instance.

(B) Section 842: The number of instances in which this authority was exercised to examine records. The basis for the action taken for each instance and a summary of the results of any examination of records so undertaken.

(iv) Reporting format: Reports are to be submitted to J71 as a Microsoft word document and contain the following:

(A) The reporting period.

(B) Instances in which the authority was exercised during reporting period with the following information:

(1) Contract number and value of each instance;

(2) Description of action taken for each instance; and

(3) Results of action taken for each instance,

(v) DLA HQ J71 will consolidate the information into a single report and add the official cover letter to be signed by the Director, DLA Acquisition.