# DLAD PART 8 – REQUIRED SOURCES OF SUPPLIES AND SERVICES

- SUBPART 8.4 – FEDERAL SUPPLY SCHEDULES

- 8.400-90 DoD electronic mall (EMALL).
- 8.406-4 Termination for cause.

- SUBPART 8.6 – ACQUISITION FROM FEDERAL PRISON INDUSTRIES, INC.

- 8.600-90 Definitions.

- 8.602 Policy.

- 8.604-90 Ordering procedures.

- 8.605 Clearances.

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

- 8.702-90 General.
- 8.703-90 Policy for additions of AbilityOne products to the procurement list.

- SUBPART 8.8 – ACQUISITION OF PRINTING AND RELATED SUPPLIES

- 8.802-90 Policy.

- SUBPART 8.70 – COORDINATED ACQUISITION

- 8.7002 Assignment authority.
- 8.7004 Procedures.

- 8.7004-2 Acceptance by acquiring department.
- 8.7004-3 Use of advance military interdepartmental purchase requests (MIPRs).

- SUBPART 8.73 – USE OF GOVERNMENT-OWNED PRECIOUS METALS

- 8.7300 General.
- 8.7302 Policy.
- 8.7303 Procedures.
- 8.7305 Solicitation provisions and contract clauses.

PART 8 – REQUIRED SOURCES OF SUPPLIES AND SERVICES

(Revised November 19, 2013, through PROCLTR 2014-32)

TABLE OF CONTENTS

SUBPART 8.4 – FEDERAL SUPPLY SCHEDULES

8.400-90 DoD electronic mall (EMALL).

8.406-4 Termination for cause.

SUBPART 8.6 – ACQUISITION FROM FEDERAL PRISON INDUSTRIES, INC.

8.600-90 Definitions.

8.602 Policy.

8.604-90 Ordering procedures and pricing policies.

8.605 Clearances.

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

8.702-90 General.

8.703-90 Policy for additions of AbilityOne products to the procurement list.

SUBPART 8.8 – ACQUISITION OF PRINTING AND RELATED SUPPLIES

8.802-90 Policy.

SUBPART 8.70 – COORDINATED ACQUISITION

8.7002 Assignment authority.

8.7004 Procedures.

8.7004-2 Acceptance by acquiring department.

8.7004-3 Use of advance military interdepartmental purchase requests (MIPRs).

SUBPART 8.73 – USE OF GOVERNMENT-OWNED PRECIOUS METALS

8.7300 General.

8.7302 Policy.

8.7303 Procedures.

8.7305 Solicitation provisions and contract clauses.

SUBPART 8.4 – FEDERAL SUPPLY SCHEDULES

8.400-90 DoD electronic mall (EMALL).

(a) General. The DoD EMALL site can be accessed at https://dod-emall.dla.mil/acct/. DoD contractors may also be authorized to order on DoD EMALL pursuant to FAR Subpart 51.1. For Government Purchase Cardholders (GPCHs), see 13.301(S-91).

(b) Policy. Only DLA, military service, or GSA assigned/managed items shall be available for ordering on DoD EMALL. “Open market” catalogs, which are catalogs of products not under contract with DLA, a military service, or GSA, are not permitted on DoD EMALL. The DoD EMALL ordering system will inform all buyers that it is their responsibility to comply with applicable contracting regulations before making DoD EMALL purchases. The DoD EMALL ordering systems will, to the extent practical, automatically enforce applicable ordering rules, such as competition requirements.

(c) Responsibilities.

(1) The Office of the Secretary of Defense (AT&L/Defense Procurement and Acquisition Policy) is the DoD Executive Agent for DoD EMALL, responsible for issuing overarching DoD EMALL policy, and DLA has responsibility for DoD EMALL operations.

(2) DLA’s responsibility for DoD EMALL operations is divided as follows: DLA Logistics Information Service, DLIS DoD EMALL Office, which serves as the Center of Excellence (CEO) for all contracting of non-NSN items in support of DoD EMALL; DLA Acquisition J71, for contracting policy; DLA Finance J8, for program funding; and DLA Information Operations J6, for IA/IT architecture.

(3) The DOD EMALL Office will receive contracting authority from and be subject to the contracting oversight of DLA Disposition Services.

(d) Contracting.

(1) The DoD EMALL Office is responsible for DLA contracts that will be specifically awarded for placement on DoD EMALL and shall comply with the following:

(i) Establish contracts only for DLA-assigned and/or managed items and shall use the delegation of authority from GSA to establish Federal supply schedule (FSS) type contracts to the maximum extent practicable. (Refer to Appendix 7 of DoD 4140.1-R DOD Supply Chain Material Management Regulation.) The schedule groupings will be based on product type and other relevant considerations;

(ii) Consider applicable guidance and clauses in the GSA Acquisition Manual (GSAM) and GSA contracting practices in establishing FSS type contracts, although use of specific GSA clauses, procedures, and practices is discretionary, and these should be used only if found to be in the best interest of the Government. When establishing FSS-type contracts, comply with FAR Part 38;

(iii) Concur with DLIS rules of governance to which contractors will be held and include a requirement in DoD EMALL contracts stating that contractors must comply; and

(iv) Before a contract may be removed from DoD EMALL, the DoD EMALL contracting office must have determined that a termination of the contract is appropriate and initiated termination of the contract.

(2) Qualified product list and critical safety items shall not be included in DoD EMALL contracts. Other types of items, such as body armor, may be prohibited from placement on DoD EMALL contracts.

(i) The DoD EMALL Office will perform a preliminary review of catalogs to ensure part numbered items are cross-referenced to NSNs. Similar reviews will be performed periodically after a contract has been established and throughout the life of the contract.

(ii) DLA managed stocked NSNs should not be included on a DoD EMALL contract, unless that contract is placed within a unique ordering corridor available only to DLA personnel. The DoD EMALL Office, in coordination with DLA Acquisition J71, will develop lists of such prohibited items and enforce that list.

(iii) Contracts awarded for purposes other than placement on DoD EMALL may be made available for ordering through DoD EMALL, and the item restrictions in this paragraph are not applicable to orders placed through DoD EMALL against these non-DoD EMALL contracts.

(3) Each contracting activity or office shall review and approve their respective items for inclusion on DoD EMALL contracts. The contracting activity or office may delegate in writing to the DoD EMALL Office for contracting the authority to include their respective items unless instructed otherwise by that contracting activity or office. Additionally, each contracting activity or office shall designate a DoD EMALL point of contact to the DoD EMALL Office for contracting for processing reviews and approvals and to serve as a conduit for working issues related to the DoD EMALL program.

(4) A valid price analysis technique shall be used to determine price reasonableness of DoD EMALL contracts in accordance with FAR Subpart 15.4. Price analysis is required because DoD EMALL contracts are not directly competed on a price basis before being added to DoD EMALL.

(e) Ordering. Ordering against DoD EMALL contracts is subject to FAR and DFARS Subpart 8.4. Orders against non-DoD EMALL contracts available for ordering on DoD EMALL are subject to the ordering requirements applicable to the particular contract.

8.406-4 Termination for cause.

(e)(S-90) Reporting. In accordance with FAR 8.406-4(e), report termination information in Federal Awardee Performance and Integrity Information System (FAPIIS) (see 49.402-8(S-90)(a)).

SUBPART 8.6 – ACQUISITION FROM FEDERAL PRISON INDUSTRIES, INC.

8.600-90 Definitions.

"Current market price (CMP)," as used in this subpart, means the actual current price for purchase of the item in the competitive market place in the quantities normally bought and sold and at customary terms and conditions. If actual sales prices are unavailable or nonexistent, the CMP means a price which is estimated in a similar manner as prescribed in FAR 19.807(b) and (c) (but see guidance on valid price comparisons in FAR 15.404-1(b)(2)(ii)(A)-(C)).

"Unrestricted," as used in this subpart, refers to the portion of the acquisition not purchased from FPI, whether or not a set-aside has been made. (See Part 19).

8.602 Policy.

(a) In other than automated acquisitions, the contracting officer shall document in writing the basis for the comparability determination, to include the significance of each factor under the circumstances of the acquisition. The comparability determination must be retained in the contract file.

(1)(S-90) Use the provision at 52.208-9001 for acquisitions valued below the simplified acquisition threshold that involve items listed on the FPI Schedule when the solicitation will also serve as a market research tool. FPI will receive an order if its items are found comparable to items from private sources.

(2)(S-90) Competitive buys are subject to set-aside requirements, except that FPI will be solicited and permitted to compete, and could still receive the award, in acquisitions of these items that are otherwise set aside for small business participation. Small business concerns must be notified of this possibility when set-asides are used under these circumstances.

8.604-90 Ordering procedures.

(a) Awards to FPI shall be on a free on board (f.o.b.) origin basis unless otherwise specified.

(b) Prices for FPI contracts shall be rounded off to the nearest four decimal places.

(c) When a contract action involves allotment to FPI of the entire quantity of the required item and current market quotations are not available, prior contract prices (adjusted to reflect changes in market prices of components since the last contract and differences in any other cost factors, e.g., labor, operating supplies, employee fringe benefits) shall be used as the basis for determining the current market price.

(d) In no event shall a unit price higher than the highest award price, adjusted for any significant differences between the buys, be considered to be the current market price. Exclude a high price if resulting from a distressed bid, or bidder's mistake, or if the award price was inflated because of additional requirements.

(e) To ensure that the award price to FPI, for the partial or total quantity, does not exceed the current market price, the contracting officer shall:

(1) Request FPI to furnish its cost estimate, FPI Form 73 (Unit Cost Estimate) with supporting documentation, such as material quotes, for all first time buys and whenever current actual market prices are unavailable or when there is basis for concern regarding an FPI quote;

(2) Consider requesting FPI to furnish its cost history, FPI Form 9 (Production Order and Cost Sheet) for the most recently completed contract(s) for the item (if none, for the most comparable item), along with identification of any apparent errors;

(3) Obtain an independent cost/price analysis of purchases estimated to exceed $200,000 and other actions as deemed appropriate. (See 15.404-1(c)(S-91)). Coordinate with the contracting office’s pricing division on the price or cost/price analyses performed on other large purchases with the cost and price analysis element in accordance with FAR, DFARS and DLAD 15.404-1(b) and (c);

(4) Establish prenegotiation objectives as appropriate considering whether the objective is based on pricing data or on cost data plus a weighted guideline profit analysis (see DFARS 215.404-72 for non-profit organizations);

(5) Negotiate with FPI to achieve price reasonableness (see FAR 15.405(d)), and that the price does not exceed the current market price. Elevate negotiation to higher levels of management as necessary;

(6) Document the price reasonableness determination in the contract file; and

(7) Refer instances of unreasonable price which cannot be corrected to a higher authority in accordance with FAR 15.405(d) and DLAD 15.405(d)(S-90). Include a price survey of other potential suppliers and a recommendation concerning whether a clearance request to purchase the item competitively is warranted and needed (see FAR 8.605).

(f) In awards involving multiple destinations, each destination, for purposes of determining the price to be paid FPI, shall be considered a separate award.

(g) When the price comparison involves Government furnished material (GFM) or Government furnished property (GFP), differences in transportation costs for the GFM or GFP shall be considered. Also consider differences in Government transportation costs of end items to the same destination points and any variations in the percentages of GFM usage and/or operating and maintenance costs of GFP.

(h) Firm delivery orders shall be given to FPI upon determination of the quantity to be awarded FPI. The following procedures are to be utilized in determining prices to be included on these delivery orders:

(1) When a concurrent commercial contract is being made, the price quoted by FPI shall be cited on the FPI delivery order and clause 52.208-9000 shall be included in the order. In the event the current market price determined by the contracting officer under the "unrestricted" acquisition is lower than the quoted FPI price, the FPI price shall be adjusted to the lower price; provided, however, that in the time elapsed between the delivery order to FPI and the opening date on the "unrestricted" portion, there has been no significant change in market conditions. Should there have been a significant change in market conditions, the current market price for an FPI order will be determined under the provisions of subparagraph 8.604-90(c).

(2) When the circumstances described in subparagraph 8.604-90(c) exist, action shall be taken to determine the current market price. Should that price be lower than the FPI quoted price, contact shall be made by the means with the FPI and the circumstances and factors used in the determination explained. Should an agreement not be reached as to the current market price within 5 consecutive days from the date of contact, the order shall be issued on the basis of the current market price determined by the contracting officer, and 52.208-9000 shall be included on the FPI delivery order.

(3) After issuance of a delivery order containing 52.208-9000, every effort will be made by the contracting officer to reach an agreement as to the current market price applicable to the order. Agreements reached shall be confirmed by a revision to the delivery order stating the price applicable to the order, and deletion of 52.208-9000 from order.

(4) Efforts to obtain agreement, to include exchange of data on which the current market price was based, may continue up to the time of inspection and acceptance of the first delivery. If agreement is not reached by that time, the case shall be submitted to DLA Acquisition Operations (J72) as unresolvable, and shall contain a detailed explanation of the factors determining the current market price which was not acceptable to the FPI.

(i) Ceiling priced awards.

(1) Clause 52.208-9000 may be utilized only if:

(i) The contract or order will be issued to FPI at a fair and reasonable price that exceeds the estimated current market price;

(ii) The contracting officer completes action specified in 8.604-90(e)(7); and

(iii) The chief of the contracting office determines in writing that ordering the urgently needed schedule item cannot be further delayed and approves such award.

(2) After issuing a contract/order containing 52.208-9000, the contracting officer shall brief the chief of the contracting office of efforts to reach an agreement as to the current market price reduction applicable thereto. Agreements reached shall be confirmed by a revision to the contract or order stating the applicable price and removing 52.208-9000.

(3) Efforts to obtain agreement may continue up to the time of inspection and acceptance of the first delivery. If agreement has not been reached by that time, the case shall be submitted by the chief of the contracting office to DLA Acquisition Operations (J72) as unresolvable and shall contain a detailed explanation of the factors used in determining the current market price and/or reasonable price which were not acceptable to the FPI.

8.605 Clearances.

(a)(2) Waiver procedures and a waiver form can be found at internet address: http://www.unicor.gov/customer/waiverform.htm. The mail address for waiver requests is:

UNICOR Customer Service Center

Post office (P.O.) Box 13640

Lexington, Kentucky 40583-3640

(c)(S-90) Use of the alternative dispute resolution process established by FPI should be considered whenever a clearance is denied. Waiver appeal request forms, at www.unicor.gov/unicor/appeal.html, may be addressed as follows, with an information copy provided the local SADBU:

Ombudsman

Federal Prison Industries

320 First Street NW

Washington, District of Columbia 20534

The ombudsman may also be contacted at telephone: (202) 305-3515; fax: (202) 305-7340.

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

8.702-90 General.

(a) It is DLA policy to cooperate fully with AbilityOne and its central nonprofit agencies (CNAs) in accordance with statutory and regulatory mandates, and to provide the maximum practicable opportunity by which AbilityOne entities may become full partners with DLA at either the prime or subcontract level.

(b) Contractor participation in a program of support for AbilityOne entities shall be the focus of an evaluation factor to be included in solicitations or other announcements for contracting arrangements that use negotiated source selection procedures; see 15.304(c)(S-91).

(c) When making a decision whether to exercise an option, the contracting officer shall evaluate whether the contractor has satisfactorily performed in accordance with the contract terms and conditions and the contractor’s proposal or plan, if applicable, relating its commitment to use of AbilityOne entities. Field elements of the Defense Contract Management Agency shall be used to assist in assessing a contractor's compliance with these requirements.

(d) In addition to using an evaluation factor in accordance with 8.702-90(b) of this section, the contracting officer shall provide incentives, through measures such as the following, for prime contractors to subcontract with AbilityOne entities, to the maximum extent possible, even when not statutorily obligated to do so.

(1) Use of AbilityOne entities under previous contracts as part of the overall past performance evaluation factor in source selection;

(2) Evaluation of present performance regarding subcontracting with AbilityOne entities in determining placement of orders under multiple-award contracts; and/or

(3) Consideration of contractor present and past performance with reference to AbilityOne entities in the exercise of options (see 8.702-90(c)).

8.703-90 Policy for additions of AbilityOne products to the procurement list.

(a) DoD 4140.1-R, Appendix 7, Supply Management Relationship Agreement between DoD and GSA, gives DoD authority to procure assigned products for the entire Federal Government; this authority has been assigned by DoD to DLA.

(b) DLA will participate in the AbilityOne process for adding new DLA-managed/procured items to its procurement list. See PGI 8.703-90(b) for procedural guidance.

(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 contracting officer responsible for the item in conjunction with the small business office on obtaining concurrence for the proposed addition as well as requirements, pricing/costs, drawing/specifications, and proposed delivery schedules. The 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 aTotal 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 Technical and Quality Assurance (J334) for consideration.

(i) The BCA package is submitted by a central nonprofit agency (CNA), NIB or NISH, for AbilityOne to J334, which determines if the national stock number (NSN) is managed by GSA or DLA. If responsibility is with GSA, J334 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 BCA is sent to the small business office AbilityOne liaison to begin the review. The small business office will contact the appropriate technical and quality point of contact.

(ii) The contracting officer shall work with the cognizant 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 contracting activity 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) Reviewing the BCA 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) Including a statement of price reasonableness in the contract file. An existing customer demand/supply request form is not required. If the BCA 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 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, J334, and DLA Acquisition Programs (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 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, J334, and 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 8.8 – ACQUISITION OF PRINTING AND RELATED SUPPLIES

8.802-90 Policy.

(a) Policy and procedures for the acquisition or production of printing are contained in DLAI 5330.1, Publications, Forms, Printing, Duplicating, Micropublishing, Office Copying, and Automated Information Management Programs.

SUBPART 8.70 – COORDINATED ACQUISITION

8.7002 Assignment authority.

(a)(4) Exclusions to Defense Logistics Agency or General Services Administration Assignments by Agreement. All proposed agreements in accordance with DFARS 208.7002(a)(4) to permit a Military Service to acquire Military Service-managed items for which the estimated obligation of a one-time authorization will exceed $150,000, or when the annual obligations are expected to exceed $150,000 for a continuing authorization, shall be submitted for review and approval by DLA HQ, attention: J71, prior to consummation of the agreement. Continuing authorizations will not be granted for periods exceeding 12 months, notwithstanding the amount of estimated annual obligations. Requests shall be submitted by letter in sufficient detail to support the proposed agreement and shall be signed at a level no lower than the Chief of the Contracting Office.

8.7004 Procedures.

8.7004-2 Acceptance by acquiring department.

(a) Upon receipt, MIPRs and other requests for non-DLA managed items should be routed directly to individuals responsible for procurement for processing. Simultaneously, such requests will be routed for review by staff elements with corollary interest (operational, functional or policy-type offices having oversight responsibility for technical/quality issues), as necessary. The contracting officer or designated acceptance official shall request that reviewing elements furnish comments within 10 days. This must be done within 20 days of receipt of the MIPR, in order to meet the 30 day acceptance time-frame. The acceptance official will act as the team leader to obtain any necessary advice and counsel from local experts in order to accomplish the acquisition mission successfully.

(S-90) Each procurement, whether covering a military service-managed or DLA-managed item, will take its priority position based on the factors surrounding the particular procurement and not on the type of item or origin of the purchase request.

8.7004-3 Use of advance military interdepartmental purchase requests (MIPRs).

(f) Actions in accordance with DFARS 208.7004-3 may be taken by a contracting activity or office upon receipt of an advance MIPR (or similar type purchase request), provided the purchase request contains a statement reading essentially as follows: "A firm requirement exists for the item(s) contained in this MIPR; purchase of the items will be supported by the commitment of funds which are expected to be made available (within the next *** days)/(prior to the end of this fiscal year)." Any other written advice from the requiring activity that the requirement is firm and that there is a reasonable expectation that funds will be made available for obligation purposes against the specific advance MIPR, may be accepted in lieu of a statement embodied in the MIPR. This advice will be used as the basis to proceed with the purchase action up to the point of award.

(1) Invitation for Bids (IFBs) or Request for Proposals (RFPs) issued on the basis of unfunded advance MIPRs shall clearly state that no awards will be made until such time as funds become available for obligation purposes. (See FAR 32.703-2.)

(2) In instances such as those authorized herein, the requiring activity will be notified of the scheduled award date of the IFB or RFP and that, if funds are not made available by that date, the solicitation may be canceled. The scheduled award date may be extended at the discretion of the contracting office.

(3) If a requiring activity indicates that funds will not be forthcoming, the solicitation shall be canceled. All offerors shall be notified immediately of such cancellation (see FAR 14.404-3). If the solicitation is canceled prior to the solicitation opening or closing date, unopened offers shall be returned to offerors.

SUBPART 8.73 – USE OF GOVERNMENT-OWNED PRECIOUS METALS

8.7300 General.

(a)(1) DoD has assigned DLA the mission to reclaim precious metals from precious metal bearing scrap and waste materials, and to make available reclaimed precious metals as Government-Furnished Property (GFP) in acquisition of items containing precious metals. This section implements DoD Directive 4160.22, Recovery and Utilization of Precious Metals, which establishes DoD policy governing the management of the recovery and the use of precious metals derived from precious metal bearing scrap and waste materials generated by all elements of DoD worldwide.

(2) DLA is assigned the responsibility for managing the overall program and has designated DLA Disposition Services as the activity charged with the responsibility for managing the retrieval and refining of precious metals. DLA Troop Support has been assigned the supply management function for precious metals.

8.7302 Policy.

(a) All DLA elements generating precious metal bearing scrap and waste materials shall establish and operate an internal program to assure the economical reclamation of precious metals, consistent with the overall DoD policy of effecting maximum use of excess property to meet DoD needs. Recovered precious metals, after refinement, will be made available to DoD elements for their use as Government furnished property (GFP) to reduce new acquisition costs.

(b) Responsibilities. Contracting activities, or for those DLA activities not designated as a contracting activity (see DFARS 202.101), the Commander, Director, or Administrator, are responsible for the following:

(1) Reporting precious metal bearing scrap and waste materials to the DLA Disposition services manager.

(2) Taking appropriate disposition action, including shipping, based on direction from the DLA Disposition services manager.

(3) Using the refined precious metals maintained in storage by the DLA Troop Support precious metals inventory manager, as GFP, whenever feasible, for contracts requiring use of precious metals.

8.7303 Procedures.

The procuring contracting officer (PCO) shall provide instructions to the administrative contracting officer (ACO) for metal disposal upon completion of the contract. 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, 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 that the required quantity be reserved to cover the acquisition including the estimated delivery schedule. DLA Troop Support will reserve requested quantities of precious metals for 120 days.

(b) To requisition precious metals, the contracting officer shall submit a military standard requisitioning and issue procedure (MILSTRIP) requisition to DLA Troop Support. 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

8.7305 Solicitation provisions and contract clauses.

(a) To maximize participation in the precious metals recovery program, the contract specialist shall follow the procedures at Subpart 8.73 and DFARS Subpart 208.73 and, when applicable, add clause 52.208-9007 and DFARS clause 252.208-7000 in solicitations and contracts.

(1) When DFARS 252.208-7000 applies, insert the clauses at 52.208-9007 and FAR 52.245-1 in solicitations and contracts

(a)(S-90) When DFARS 252.208-7000 and FAR 52.245-1 were incorporated in the solicitation, and the contracting officer has later determined no GFP or precious metals will be furnished on the award, the contracting officer may use clause 52.208-9003.