# AFARS PART 5137

- Subpart 5137.1 -- Service Contracts – General

- 5137.104 -- Personal services contracts.

- 5137.104-90 -- Procedures.
- 5137.104-90-1 -- Contracts requiring authorization at the Secretarial level.
- 5137.104-90-2 -- Contracts for expert, consultant and stenographic reporting services covered by a delegation of authority.

- 5137.112 -- Government use of private sector temporaries.
- 5137.170 Approval of contracts and task orders for services.

- 5137.170-2 Approval requirements.
- 5137.170-3

- Subpart 5137.2 -- Advisory and Assistance Services

- 5137.202 -- Exclusions.
- 5137.204 – Guidelines for determining availability of personnel.

- Subpart 5137.5 -- Management Oversight of Service Contracts

- 5137.5-3 – See 5137.590-4 for review thresholds. [AFARS Revision #21, dated May 22, 2007]

- Subpart 5137.590 -- Army Management and Oversight of the Acquisition of Services

- 5137.590-1 -- Scope of subpart.
- 5137.590-2 -- Applicability.
- 5137.590-3 -- Definitions.
- 5137.590-4 -- Review thresholds.
- 5137.590-5 -- Review procedures.
- 5137.590-6 -- Army Service Strategy Panel (ASSP).
- 5137.590-7-- Acquisition strategy content
- 5137.590-8 -- Data Collection and Reporting.
- 5137.590-9-- Execution Reviews

- Subpart 5137.72 -- Educational Service Agreements

- 5137.7204 -- Format and clauses for educational service agreements.

- 5137.7204-90 -- Establishing educational service agreements.
- 5137.7204-91 -- Purchase requests.
- 5137.7204-92 -- Ordering procedures.
- 5137.7204-93 -- Distribution of orders.
- 5137.7204-94 -- Gratuitous agreements.

- Subpart 5137.90 -- Civil Confinement of Military Absentees and Deserters

- 5137.9001 -- Use of civil detention facilities.

- Subpart 5137.91 -- Videotape, Motion Picture or Videodisc Productions

- 5137.9101 -- Contracting for total productions.

- Subpart 5137.92 -- Overseas Military Banking Facilities

- 5137.9201 -- Solicitation and contract clause.

- Subpart 5137.93 -- Army Continuing Education System (ACES) Contracts

- 5137.9301 -- References.
- 5137.9302 -- Educational services contracts.
- 5137.9303 -- Procedures.

- Subpart 5137.94 -- Security Clearances and Identification for Contractor Personnel

- 5137.9401 -- Responsibilities.

- Subpart 5137.95 -- Training With Commercial Firms

- 5137.9501 -- General.

- Subpart 5137.96 – Accounting for Contract Services

AFARS -- Part 5137
Service Contracting

Subpart 5137.1 -- Service Contracts – General

Deleted. [AFARS Revision #004, dated Jul 26, 2002.]

5137.104 -- Personal services contracts.

(b) (i) See 5137.104-90 for implementation.

(ii)(C)

(2) The U.S. Army Medical Command must approve requirements for services at DFARS 237.104(b)(ii)(A)(2). Queries should be sent to the U.S. Army Medical Command Health Care Acquisition Activity, ATTN: MCAA, 2107 17th St. Ste 69, Bldg 4197, Fort Sam Houston, TX 78234-5069 Telephone (210) 221-3298 / DSN 471 or FAX (210) 221-4082.

[AFARS Revision #21, dated May 22, 2007]

5137.104-90 -- Procedures.

5137.104-90-1 -- Contracts requiring authorization at the Secretarial level.

(a) Personal services contracts pursuant to 10 U.S.C.129(b) and 5 U.S.C.3109 must be authorized by an individual determination and findings (D&F) submitted through contracting channels and the addressee in 5101.290(b)(3) to the Assistant Secretary of the Army (Acquisition, Logistics and Technology) (ASA(ALT)) unless services being acquired are covered by the delegation of authority in 5137.104-90-2.

(b) See 5101.707. Submit electronically each D&F with the following information:

(1) An analysis of the proposed compensation in relation to the work to be performed and the classification act rate of pay for a regular employee performing similar or comparable services.

(2) A statement signed by the Head of the Contracting Activity (HCA) that the employment of the individual(s) by the proposed contract will not cause the installation/activity in which the individual(s) is to work to exceed the civilian personnel authorization established by the Army for that installation/activity.

(3) For stenographic reporting services, the request for D&F must be accompanied by an analysis which clearly establishes that it is either necessary or substantially more economical or feasible to obtain services by contract rather than by Office of Personnel Management (OPM) appointment.

5137.104-90-2 -- Contracts for expert, consultant and stenographic reporting services covered by a delegation of authority.

(a) The contracting officer must prepare a D&F as required by DFARS 237.104(b)(i) for the signature of the authorizing official (see (b)(2), (c) and (d)) to authorize contracts pursuant to 10 U.S.C.129b and 5 U.S.C.3109 for the types of expert, consultant, and stenographic reporting services described in (b), (c) and (d). When a blanket D&F applies, the contracting officer will include in the contract file a copy of the blanket D&F and a statement signed by the contracting officer clearly showing why the blanket D&F is applicable to the proposed contract.

(b) Expert services supporting stage, motion picture or television productions.

(1) Purchase requests for personal services supporting productions must include a clearance from the local multimedia/visual information (VI) activity supporting acquisition outside VI acquisition channels. See 5137.9101, Army Regulation (AR) 25-1 and Department of the Army Pamphlet (DA PAM) 25-91.

(2) Contracts for expert personal services of actors, narrators and other technical and professional personnel listed in the following Figure 37-1 to support stage, motion picture or television production may be authorized by the following:

(i) Executive Director, Army Contracting Command

(ii) Reserved.

(iii) Commander, U.S. Army Medical Command.

(iv) Commander, U.S. Army Information Systems Command.

(v) Reserved.

(vi) Reserved.

(vii) Reserved.

(viii) Commander, U.S. Army Mission and Installation Contracting Command (MICC).

(3) The persons named in 5137.104-90-2(b)(2) may redelegate this authority in writing to individuals under their procurement cognizance.

Figure 37-1.--List of Expert Personal Services Connected With Stage, Motion Picture, or Television Production

Talents | Musical | Translators, Foreign Languages | Production (Film, Video, Animation, Audiovisual) | Production Staff and Technical Crews
Aerial/Still Photographers | Arrangers | Specialized Lip | Animation Artists | Assistant Director (Film, Video, Television, and/or Commercials)
Aged | Composers | Synchronization | Communication Support Technician |
Art Directors | Conductors | Translation |  | Associate Producer
|  |  | Directors (special) |
Atmosphere People | Copyists | Straight Translation | English of Various | Caterer/Craft Services
Best Boys | Musicians |  | Types of Dialects | Directors (Film, Video, Television, and/or
Casting Directors/ Talent Agency |  |  | Film Edit Technician | Commercials)
Character Parts |  |  | Foreign Language of Various Types | Foley Work
|  |  |  | Key Wardrobe
Child |  |  | Dialects | Supervisor
|  |  | of |
Costumer |  |  | Location Support Gear/Equipment | Location Scouts
Director of Photography (Film, Video) |  |  | Technician | Post Audio Studio Mixers
Dolly Grips |  |  | Narrators (lip synchronization) | Production Assistants (Film, Video, Television,
Extras |  |  | Narrators (Off/On-Camera) | and/or Commercials)
Female Leads |  |  |  | Production Managers
Gaffers |  |  | Post Audio Recording and Mixing Technician | Re-recording
Graphic Designers/Artists |  |  | Screen/Script-writer | Technical Advisor
Grips |  |  | Special Effects Technician | Technical Advisor
Hair Stylist |  |  |  | Transportation
|  |  | Television and Motion Picture Cameramen |
Juvenile |  |  | Theater Technician |
Key Grips |  |  | Video Post Production Technician |
Lighting Directors |  |  | Writers (special) |
Location Sound Recordists/ Mixers |  |  |  |
Make-up Artist in Charge and Assistant Make-up Artist |  |  |  |
Male Leads |  |  |  |
Picture Editors (Film, video, Television, and/or Commercial) |  |  |  |
Production Assistant (Film, Video, Television, and/or Commercials) |  |  |  |
Production Designers |  |  |  |
Property masters |  |  |  |
Scenic Artist |  |  |  |
Set Designers |  |  |  |
Set Directors |  |  |  |
Special Business Actor |  |  |  |
Stunt men |  |  |  |
Video Editors |  |  |  |

Figure 37-1 – List of Expert Personal Services Connected with Stage, Motion Picture, or Television Production.

(c) Expert or consultant services in the field of law for performance outside the United States. Except for the employment of lawyers in their full capacity as advocates, the Deputy Commander-in-Chief, U.S. Army, Europe, may authorize contracts of $50,000 or less for the personal services of experts or consultants in the field of law for performance outside the United States. Experts or consultants may be employed solely for the purposes of providing legal advice to military and civilian Army officials. See AR 27-50. This authority may not be redelegated below the level of the Principal Assistant Responsible for Contracting (PARC). Redelegation must be in writing.

(d) Stenographic reporting services. Personal services contracts for stenographic reporting pursuant to 10 U.S.C.129b and in accordance with 5 U.S.C.3109 must be authorized as follows:

(1) The Deputy Assistant Secretary of the Army (Procurement) (DASA(P)) has authority to authorize contracts for stenographic reporting services in connection with White House activities and those categories of services described in (2).

(2) Authority to authorize contracts for stenographic reporting services has been delegated as follows:

(i) To HCAs for hearings in connection with agency Merit System Protection Board appeals and grievances or processing of employee complaints of discrimination under the equal employment opportunity program.

(ii) To HCAs for services for other administrative hearings for which verbatim records are required, either by regulation or by order of the administrative board’s appointing authority.

(iii) To the Executive Director, Army Contracting Command, U.S. Army Materiel Command.

(3) The persons named in 5137.104-90-2(d)(2) may redelegate this authority in writing to individuals under their procurement cognizance. [AFARS Revision #21, dated May 22, 2007]

5137.112 -- Government use of private sector temporaries.

Direct questions about acquisition of these services to the civilian personnel office.

5137.170 Approval of contracts and task orders for services.

[AFARS Revision #10, dated April 30, 2004]

5137.170-2 Approval requirements.

(a) (1) (A) Over $11.5 million and not to exceed the dollar threshold identified at DFARS 237.170-2(a)(2):

(1) For non-Program Executive Officer (PEO) managed items obtain approval of the HCA.

(2) For PEO managed items obtain approval of the PEO.

(B) At or below $11.5 million:

(1) For non-PEO managed items obtain approval of the Principal Assistant Responsible for Contracting (PARC).

(2) For PEO managed items obtain approval of the Program Manager (PM)

(2) Follow the approval requirements at DFARS 237.170-2(a)(2) for acquisitions exceeding the dollar threshold identified at that DFARS subsection.

[AFARS Revision #21, dated May 22, 2007]

(b) Approval will be in accordance with the oversight of service acquisition review thresholds described in 5137.590-4.

(c) See 5117.7802 for the Army review and approval requirements for direct and assisted acquisitions addressed in Enclosure 2, paragraph 4, Management Review and Approval Requirements. [AFARS Revision #18, dated November 8, 2005] [AFARS Revision #21, dated May 22, 2007]

5137.170-3

(b) DFARS 237.170-3(b) is now DFARS 237.170-2. See 5137.170-2(c). [AFARS Revision #21, dated May 22, 2007]

Subpart 5137.2 -- Advisory and Assistance Services

5137.202 -- Exclusions.

(S-90) Field service representative (FSR) services requested by the contractor.

(1) If the contractor requests an FSR be used solely for advisory service or for liaison between the contractor and the military users of the contractor’s equipment or components, the cost of the FSR, to include travel and transportation of baggage and equipment, must not be directly reimbursable by the Government. If the contractor desires to send an FSR for advisory or liaison purposes, the contractor must notify the contracting officer by letter and include --

(i) The name of the FSR;
(ii) The dates, times and places of visits;
(iii) Contract identification; and
(iv) The equipment and components involved.

(A) After verifying the information in the notification letter, the contracting officer must approve the arrangement by countersigning the letter. The countersigned letter must be the FSR’s accreditation and will identify his position and functions in the field.

(2) The contractor must obtain security clearances and the FSR must comply with identification requirements of AR 600-8-14.

(3) An accredited FSR is entitled to the benefits and privileges which AR 600-8-14, paragraphs 6-31b and 6-32, authorizes for U.S. citizen civilian employees of firms under contract to the Department of Defense (DoD) or a Uniformed Service.

(4) The duration of the assignment of an FSR requested by the contractor must be governed by the controls imposed for contracted field services. See AR 700-4.

5137.204 – Guidelines for determining availability of personnel.

The authority to make the determination is delegated to the PARC. [AFARS Revision #001, dated November 29, 2001]

Subpart 5137.5 -- Management Oversight of Service Contracts

5137.5-3 – See 5137.590-4 for review thresholds. [AFARS Revision #21, dated May 22, 2007]

Subpart 5137.590 -- Army Management and Oversight of the Acquisition of Services

5137.590-1 -- Scope of subpart.

As the Army continues to improve its management of service acquisitions, the acquisition team will focus on the importance of developing and maintaining sound acquisition strategies to ensure services are properly planned, based upon clear, performance-based requirements and acquired by sound business practices. The acquisition strategy developed will be flexible and provide rapid delivery of affordable capability to meet the Army mission and customer expectations. Section 2330 of Title 10, United States Code, as amended by section 812 of the National Defense Authorization Act for Fiscal Year 2006 (Pub. L. No. 109-163), requires the establishment and implementation of a management structure for the acquisition of services in the Department of Defense (DoD). (The DoD policy implements the statute and replaces the Acquisition of Services policy issued on May 31, 2002, and the Acquisition of Services Policy stated in Enclosure 8 to DoD Instruction 5000.2 dated May 12, 2003). Priorities established by senior functional principals shall ensure accountability and maximize credibility in cost, schedule, and performance as required by the Under Secretary of Defense (Acquisition, Technology and Logistics) (USD(AT&L)) guidance on Acquisition of Services. (See USD(AT&L) memorandum, subject: Acquisition of Services Policy, dated October 2, 2006.)

This policy and other complementary guidance are intended to strengthen DoD management of the acquisition of services at both the strategic and tactical level, and shall be included in the next revision of Army Regulation (AR) 70-1 and DoD Instruction (DoDI) 5000.2. The implementation of this is not intended to impede the timely acquisition of services in emergency situations.

This policy supersedes AFARS Revision #10, dated April 30, 2004 and AFARS Revision #19, dated May 23, 2006 to 5137.5.

[AFARS Revision #20, dated March 22, 2007]

5137.590-2 -- Applicability.

a. Oversight of services acquisition is the shared responsibility of requiring activities, contracting activities, and the ASA(ALT).

b. The requirements in this subpart apply to all service acquisitions, except those specifically excluded, including any service acquisition determined to be of special interest by the ASA(ALT), the DASA(P), the USD(AT&L) or the Assistant Secretary of Defense for Networks and Information Integration (ASD(NII)).

c. The requirements in this subpart also apply to any acquisition of services that are to be made through the use of --

> (1) A contract or task order that is not a performance-based contract or task order; or

> (2) A contract or task order entered into or issued by an agency other than the DoD.

d. Acquisition of services that occur after a program achieves full operational capability that were not subject to previous milestone reviews shall be subject to the requirements of this subpart.

e. Acquisition of services that are part of a weapon system acquisition program or an automated information system that is managed in accordance with DoDI 5000.2 shall be reviewed and approved as part of that program management process.

f. The requirements in this subpart apply to Research, Development, Test and Evaluation (RDT&E) and associated advisory and assistance services, unless otherwise excluded below:

(i) Requirements associated with Phases I and II of the Small Business Innovation Research Program/Small Business Technology Transfer Program. [AFARS Revision #25, Item XVII, April 1, 2010]

g. Although the requirements in this subpart do not apply to construction activities, the subpart does apply to any advisory and assistance services in support of construction.

h. Senior Officials and Decision Authorities shall retain the ability to respond rapidly to emergencies. Accordingly, services determined to be an emergency acquisition in accordance with FAR 18.001 (a), (b) or (c) may be approved either verbally or electronically by the decision authority. This procedure requires a formal notification of intent by the Contracting Officer to the Decision Authority. This procedure also requires a formal acquisition strategy to be submitted to the decision authority within 30 days of the notice to proceed.

5137.590-3 -- Definitions.

As used in this section --

“Acquisition of services” means the execution of one or multiple contracts or other instruments committing or obligating funds (e.g., fund transfer, placing orders under the Federal Supply Schedules or other existing contracts, etc.) to acquire services for a specified requirement, and includes the following:

> > (1) Entry into a contract or any other form of agreement including, but not limited to, basic ordering agreements, blanket purchase agreements, indefinite delivery/indefinite quantity contracts, and similar ordering agreements.

> > (2) Issuance of a task order or any transfer of funds to acquire a service on behalf of the DoD.

“Decision Authority” means the official with review and approval responsibility as designated and associated with the thresholds at 5137.590-4.

“Information Technology (IT) Services” means the performance of any work related to IT and the operation of IT, including National Security Systems. This includes outsourced IT-based business processes, outsourced information technology and outsourced information functions.

“Service” means the engagement of the time and effort of a contractor whose primary purpose is to perform an identifiable task, or tasks, rather than to furnish an end item of supply.

5137.590-4 -- Review thresholds.

(a) The USD(AT&L) may review and approve non-IT service acquisitions identified by the USD(AT&L) as special interest, regardless of the estimated dollar value. Before an acquisition of non-IT services with a total estimated value greater than $1 billion is approved, advance notification shall be provided to the USD(AT&L) so that a determination can be made as to any Office of the Secretary of Defense (OSD) special interest. The following procedures shall be followed before the final solicitation is issued or, for other than full and open competition, before the negotiations commence:

> (1) A briefing or written notification shall be provided to the Director, Defense Procurement, Acquisition Policy and Strategic Sourcing (DPAPSS), through SAAL-ZP to the address at 5101.290(b)(3), indicating the expected value of the acquisition of services for the projected life (base year and options) of the contract. A copy of the acquisition strategy shall be attached and be consistent with the USD(AT&L) Acquisition of Services Policy memorandum, dated October 2, 2006, paragraph 4.2.3. For Army review thresholds, see Table 1 at 5137.590-4 for the Army Acquisition of Services Categories and the Army Acquisitions of Information Technology Services. If the acquisition strategy uses a sole source approach, attach a justification and approval (J&A) document.

> (2) The Director, DPAPSS shall notify the Senior Official or Decision Authority within 10 working days of receipt if USD(AT&L) will review the acquisition. If DPAPSS does not notify the Senior Official or Decision Authority within 10 working days, the acquisition may proceed. If a review is conducted, it shall be completed within 30 working days of the determination.

> (3) If the USD(AT&L) decides to review the acquisition, issues shall be resolved via procedures specified by the USD(AT&L), or designee, in direct coordination with the DASA(P) or designee.

(b) The ASD(NII)/DoD Chief Information Officer (CIO) is the Senior Official responsible for the management and acquisition of IT services and may review and approve IT service acquisitions identified by the ASD(NII) or the DoD CIO as an item of special interest, regardless of dollar value. Before an IT service acquisition with a total estimated value greater than $500 million is approved, advance notification shall be provided by the DASA(P), through the ASA(ALT) to the ASD(NII) and the DoD CIO so that the a determination can be made as to any ASD(NII)/DoD CIO special interest. The following procedures shall be followed before the final solicitation is issued or, for other than full and open competition, before the negotiations commence:

> (1) A briefing or written notification shall be provided to the Director, Acquisition, OASD(NII), through SAAL-ZP to the address at 5101.290(b)(3), indicating the expected value of the acquisition of services. A copy of the acquisition strategy and, if the acquisition strategy uses a sole source approach, a J&A shall be attached.

> (2) The Director, Acquisition, OASD(NII), shall notify the Senior Official or the Decision Authority within 10 working days of receipt if the ASD(NII)/DoD CIO will review the acquisition. If the Director, Acquisition, does not notify the Senior Official or the Decision Authority within 10 working days, the acquisition may proceed. If a review is conducted, it shall be completed within 30 working days of the determination.

> (3) If the ASD(NII)/DoD CIO decides to review the acquisition, issues shall be resolved via procedures specified by the ASD(NII)/DoD CIO, or designee, in direct coordination with the originating Senior Official or Decision Authority.

(c) If a proposed acquisition contains both hardware and services, and the total estimated value of the non-IT services portion exceeds $1 billion or the total estimated value of the IT services portion exceeds $500 million, it shall be reviewed and approved by USD(AT&L) or ASD(NII), unless excepted. The exception is that service acquisitions that are part of a weapon system acquisition program or an automated information system that is managed in accordance with DoDI 5000.2 will be reviewed and approved as part of that program management review process.

(d) The DASA(P) has the authority to review and approve service acquisitions with a total planned dollar value of $500 million or more and service acquisitions identified by the ASA(ALT) as special interest.

(e) PEOs, Direct Reporting Program Managers (PM), and HCAs will, at a minimum, review and approve service acquisitions not already supported in an approved program acquisition strategy under their cognizance with a total planned dollar value of $250 million but less than $500 million and any service acquisition identified by the PEO/Direct Reporting PM/HCA as special interest.

(f) PARCs, PEOs and Direct Reporting PMs will review and approve service acquisitions with a total planned dollar value of $10 million or more, but less than $250 million.

(g) Directors of Contracting (DOC) and PMs will review and approve service acquisitions with a total planned dollar value greater than the simplified acquisition threshold (SAT), but less than $10 million.

Table 1. Army Acquisition of Services Categories

Acquisitions of Services that do not include Information Technology
Category | Estimated Value | Decision Authority
Special Interest I | As designated by USD(AT&L) or other Senior OSD Official | USD(AT&L) or Senior Officials
Special Interest II | As designated by the ASA(ALT), DASA(P) or other Senior Army Official | ASA(ALT), DASA(P) or other Senior Army Official
Category I | Acquisitions of services valued at $500 million or more (see Note 1) | DASA(P)
Category II | Acquisitions of services valued at $250 million, but less than $500 million | HCAs, PEOs and Direct Reporting PMs
Category III | Acquisitions of services valued at $10 million, but less than $250 million | PARCs, PEOs and Direct Reporting PMs
Category IV | Acquisitions of services valued at greater than the simplified acquisition threshold, but less than $10 million | DOCs and PMs
Army Acquisitions of Information Technology Services
Category | Estimated Value | Decision Authority
Special Interest I | As designated by the ASD(NII)/DoD CIO or other Senior OSD Official | ASD(NII)/DoD CIO
Special Interest II | As designated by the ASA(ALT) or other Senior Army Official | ASA(ALT), DASA(P), Army CIO/G6 or other Senior Army Official
Category I A | Acquisitions of IT services valued at $500 million or more, or acquisitions of IT services designated as special interest acquisitions by the DoD CIO (See Note 2). | ASD(NII)/DoD CIO or DASA(P) (See: Note 2)
Category II A | Acquisitions of IT services valued at $250 million or more, but less than $500 million | HCAs, PEOs and Direct Reporting PMs or as designated
Category III A | Acquisitions of IT services valued at $10 million, but less than $250 million | PARCs, PEOs and Direct Reporting PMs or as designated
Category IV A | Acquisitions of IT services valued at greater than the simplified acquisition threshold, but less than $10 million | DOCs and PMs

Notes: 1. Acquisitions of services with a value estimated at greater than $1 billion dollars (base year and options) shall be referred to USD(AT&L) using these procedures and formally reviewed at USD(AT&L) discretion. 2. Proposed acquisitions of IT services with a total estimated value over $500 million dollars (base year(s) and options) shall be referred to ASD(NII) using these procedures and formally reviewed at ASD(NII) discretion. 3. Dollar amounts are in Fiscal Year 2006 constant year dollars. 4. Acquisitions of services that are part of a weapon system acquisition program or automated information system program managed according to DoD Instruction 5000.2 shall be reviewed and approved as part of program oversight. 5. If a proposed acquisition contract includes both hardware and services, and the estimated value of the services portion exceeds the values specified in 5137.590-4(c), it shall be reviewed by USD(AT&L) or ASD(NII) unless an exception applies. 6. Related task orders within an ordering vehicle shall be viewed as one effort for the purpose of determining the appropriate thresholds. 7. Oversight of Category IV and IV A Acquisitions of Services should be implemented as soon as possible at any time before but no later than 1 October 2009.

5137.590-5 -- Review procedures.

Service acquisitions meeting the review thresholds above will be forwarded to the appropriate approval authority for review and approval prior to issuance of the solicitation. For service acquisitions requiring USD(AT&L), ASD(NII) or DASA(P) review and approval, the acquisition strategy will be submitted to the Office of the DASA(P), ATTN: Procurement Policy and Support (SAAL-PP) to the address at 5101.290(b)(3). The acquisition strategy shall be prepared by the requiring activity in conjunction with the supporting contracting activity. At a minimum, the strategy will contain all the information included at 5137.590-7.

5137.590-6 -- Army Service Strategy Panel (ASSP).

(a) General requirements.

> (1) ASSPs shall be conducted at Headquarters, Department of the Army (HQDA) level for all service acquisitions with a total planned value of $500 million or above, or any service acquisition determined to be of special interest by the ASA(ALT), regardless of dollar value. The ASSP chairperson has the authority to waive the requirement for an ASSP.

> (2) PEOs, Direct Reporting PMs and HCAs shall conduct ASSPs for service acquisitions with total planned values of $250 million or more and less than $500 million and shall establish requirements/procedures to govern the process.

> (3) For service acquisitions with a total planned dollar value of $10 million or more and less than $250 million, a review and approval process shall be implemented by the PARCs, PEOs and Direct reporting PMs consistent with operational impact and risks associated with the service acquisition.

> (4) For service acquisitions with a total planned dollar value of greater than the simplified acquisition threshold and less than $10 million, a review and approval process shall be implemented by the DOCs consistent with operational impact and risks associated with the service acquisition. These procedures shall be implemented no later than October 1, 2009.

(b) The HQDA ASSP process will provide senior Army functional principals the opportunity to review proposed acquisition strategies and proposed metrics for service acquisitions; and to reach consensus on strategies that are most advantageous to the Army. ASSPs shall be conducted as early as possible in the acquisition planning process to develop a systematic and disciplined approach to achieve an affordable, efficient/effective acquisition. The Office of the DASA(P) will serve as the coordinator for all ASSPs conducted at the Headquarters, Department of the Army level.

(c) ASSP chairperson.

> (1) By direction from the ASA(ALT), the HQDA ASSP will be chaired by the DASA(P).

> (2) The ASSP Chairperson will provide feedback on ASSPs to the ASA(ALT).

(d) ASSP Membership. As unique requirements of each acquisition dictate, the ASSP Chairperson shall determine ASSP membership.

> (1) The standing ASSP membership includes the following: the DASA(P), the Deputy General Counsel (Acquisition), the Assistant Secretary of the Army (Financial Management and Comptroller), the Director, Army Small Business, and the senior representative from either the requirement or program management arena.

> (2) For acquisition of IT services, the Army CIO/G6 shall be a standing member.

> (3) When an Acquisition Strategy from the U.S. Army Contracting Command is submitted for review and approval, the ASSP membership will be augmented by the Commander/Executive Director Army Contracting Command and the Command Counsel, from the Headquarters U.S. Army Contracting Command or their designees.

> (4) Other members will be invited as acquisition issues dictate. Based upon consensus reached among ASSP members, recommendations are provided to the ASA(ALT) or his designee for review and consideration on the instant acquisition strategy.

(e) If formal source selection procedures will be used, do not identify the name of the Source Selection Authority (SSA) during the ASSP meeting.

(f) ASSP minutes and acquisition strategy approval. At the conclusion of the ASSP, the ASSP coordinator will prepare the ASSP minutes and obtain approval of the acquisition strategy from the Decision Authority. The Decision Authority will approve metrics for the service acquisition requiring the Decision Authority review and approval.

(g) Timelines.

> (1) Review, coordination and approval of the acquisition strategy will be conducted in a streamlined and efficient manner. The goal of the process is to have the acquisition strategy reviewed and approved within 15 working days from receipt of the request.

> (2) Before the DASA(P) approves a strategy for an acquisition of services with a total planned dollar value of $1 billion or more, or an IT services acquisition with a total planned dollar value of $500 million or more, advance notification must be provided to the USD(ATL) or ASD(NII), as appropriate, in accordance with 5137.590-4. The USD(AT&L) and/or ASD(NII)/DoD CIO will provide the ASA(ALT) a determination whether to conduct a review of the acquisition strategy within 10 working days of receipt of the acquisition strategy. If a review is conducted, it will be completed within 30 days of the determination. If no determination to conduct a review is made within 10 working days of receipt, the acquisition may proceed.

5137.590-7-- Acquisition strategy content

(a) At a minimum the acquisition strategy will address the following:

> (1) Requirement. The outcomes to be satisfied and if such outcomes are performance-based (see FAR Subpart 37.6). If not performance-based, obtain the Army Acquisition Executive (AAE) approval for acquisitions exceeding the dollar threshold identified at DFARS 237.170-2(a)(2); the measures of success for the service acquisition; and how the requirement was previously satisfied (if not new).

> > (i) Will the requirement be satisfied through the use of a non-DOD contract? If so, indicate whether appropriate approval has been obtained in accordance with the policy and procedures described at 5117.7802.

> > (ii) Include a discussion of the procurement history.

> > (iii) Address challenges that drive the mission or acquisition approach.

> > (iv) Indicate if there is any congressional interest in the requirement.

> > (v) Discuss opportunities for strategic sourcing.

> > (vi) All acquisitions of IT services, regardless of dollar value, are subject to the Clinger-Cohen Act: Subtitle III of Title 40 of the United States Code (40 U.S.C. 11101 et seq.) (Formally, Division E of the Clinger Cohen Act of 1996 40 U.S.C. 111101 et seq.) Discuss the specific applicability and implications of the Clinger-Cohen Act.

> (2) Risk Management. Provide an assessment of current and potential technical, cost, schedule and performance risks, the level of stated risks, and a risk mitigation plan.

> (3) Competition. Explain how full and open competition will be provided. If other than full and open competition applies to the acquisition, provide an explanation of why and a citation of the statutory authority that allows less than full and open competition. Plans for competition for any foreseeable follow-on acquisitions should also be addressed.

> > (i) Describe the nature and extent of the market research that was conducted. This should, at a minimum, address the identification of small business sources capable of performing the services and a discussion of how this information impacted the acquisition strategy for both prime and subcontracting opportunities.

> > (ii) Is this a consolidated requirement? If so, indicate whether appropriate approval has been obtained (see 5107.170-3(S-90)).

> (4) Implications. How the new acquisition will support the achievements of small business goals/targets. How the new acquisition will support any other socio-economic and applicable directed programs.

> > (i) If this is a bundled requirement include the benefit analysis as prescribed in the DOD Benefit Analysis Guidebook located at: http://www.acq.osd.mil/osbp/news/guidebook.htm.

> > (ii) Indicate whether the Small Business Administration Procurement Center Representative (SBA PCR) has concurred on the DD Form 2579.

> > (iii) Include a discussion of subcontracting potential and goals.

> (5) Business Arrangements. How the acquisition will be funded, the type of business arrangements anticipated (e.g., single contract, multiple award task order contract, task orders under existing multiple award contracts, interdepartmental transfers, and interdepartmental purchase requests), the duration of each business arrangement (base period and all option periods), cost estimate for the total planned acquisition, and pricing arrangements (e.g., fixed price, cost reimbursement, time and materiel, labor hour, or variations, based on guidance in FAR Part 16 and, for commercial services, in FAR Part 12). Task orders executed within a service acquisition reviewed pursuant to this subpart do not require a separate review, provided the task order is issued under the approved conditions. At a minimum, address the following:

> > (i) Include the total estimated dollar value of the procurement, to include all options.

> > (ii) Address whether funding is available and the type of funds that will be used.

> > (iii) Address the contract type and the basis for selection. If award fee contract type is used include a discussion of the award fee plan, related criteria and evaluation process to include how attainment of the metrics will be incorporated in the award fee evaluation.

> > (iv) Include a discussion of the source selection process - whether it will be formal or informal, proposed evaluation criteria, and the basis for award. If a formal source selection process will be used, do not identify the name of the SSA in the strategy.

> > (v) Discuss any waivers or deviations that will be required.

> > (vi) Discuss contract administration to include the involvement of the contracting officer representative (COR) and/or the Defense Contract Management Agency (DCMA).

> > (vii) Discuss the existing or planned management approach following contract award to include the tracking procedures or processes used to monitor contract performance.

> > This approach could include, but not be limited to, a quality assurance surveillance plan and written oversight plans and responsibilities.

> > (viii) Include a milestone schedule which contains key points up to time of award.

> (6) Multi-year contracts. If the acquisition strategy calls for a multi-year service contract (as distinguished from contracts that span multiple years – see FAR Subpart 17.1 and DFARS Subpart 217.171) to be entered into under the authority of 10 U.S.C. 2306c, the acquisition strategy must address the Army’s plans for budgeting for termination liability. Office of Management and Budget (OMB) Circular A-11 requires that multi-year service contracts be scored as operating leases. The acquisition strategy must address the budget scorekeeping that will result from use of the proposed contracting strategy.

> (7) Leases. Include a lease-purchase strategy if required by OMB Circular A-94, Section 13.

> (8) Metrics. Address the cost, the schedule and the performance metrics to include the plan for measuring service acquisition outcomes against requirements. If metrics are not submitted with the acquisition strategy, the metrics must be submitted for the Decision Authority approval prior to execution of any business instrument (e.g., contract, military interdepartmental purchase request (MIPR)) that initiates the acquisition.

5137.590-8 -- Data Collection and Reporting.

a. The following data shall be available for each acquisition of service in excess of the simplified acquisition threshold. Data are required regardless of whether the purchase is made in the form of a contract, task order, delivery order, military interdepartmental purchase request, or any other form of interagency agreement --

> (1) Description of the service purchased;

> (2) The total estimated dollar value (base and option years) of the contracts/task orders/MIPRs;

> (3) The total estimated value of the instant acquisition and the total dollar amount obligated to date on the contract;

> (4) The form (contract, purchase order, delivery or task order, etc.) of the contracting action used to make the purchase;

> (5) The type of contract action used to make the purchase (i.e., fixed price, cost, time and materials, etc.);

> (6) Whether the purchase was made through --

> > (i) A performance-based contract, performance-based task order or other performance-based arrangement that contains firm fixed prices for the specific tasks to be performed;

> > (ii) Any other performance-based contract, performance-based task order, or performance-based arrangement; or

> > (iii) Any contract, task order, or other arrangement that is not performance-based.

> (7) In the case of a purchase made through an agency other than the Department of Defense, the agency through which the purchase is made;

> (8) The extent of competition provided in making the purchase and whether there was more than one offer; and

> (9) Whether the purchase was made from --

> > (i) A small business concern;

> > (ii) A small business concern owned and controlled by socially and economically disadvantaged individuals;

> > (iii) A small business concern owned and controlled by women;

> > (iv) A qualified small business concern located in a historically underutilized business zone;

> > (v) A small business concern owned and controlled by service-disabled veterans; or

> > (vi) A small business concern owned and controlled by veterans.

b. Data shall be consolidated, by form (contract, purchase order, delivery or task order, etc.) of purchase, at the HCA level and provided on an annual basis through SAAL-PP to the DASA (P) by October 30th of each year.

c. Services that are part of a weapon system acquisition program or an automated information system that is managed in accordance with DoDI 5000.2 shall be accounted for as part of that program management process.

5137.590-9-- Execution Reviews

a. Annual report(s) on program(s) progress towards meeting the approved metrics will be submitted to the Decision Authority on every approved acquisition strategy. The appropriate Decision Authority may specify a more frequent reporting schedule.

b. For service acquisitions with a total planned dollar value of $250 million and greater, this information shall be consolidated at the Decision Authority level and provided through the DASA(P), ATTN: SAAL-PP (to the address at 5101.290(b)(3)), to the AAE by October 30th of each year.

c. Service acquisitions that are part of a weapon system acquisition program or an automated information system that is managed in accordance with DoDI 5000.2 are excluded from this requirement. However, service acquisitions that occur after a program reaches full operational capability that have not been subject to previous milestone reviews shall be subject to this review requirement.

Subpart 5137.72 -- Educational Service Agreements

5137.7204 -- Format and clauses for educational service agreements.

DD Forms 1155 or Standard Forms 26, as appropriate, may be used as order forms under educational service agreements.

5137.7204-90 -- Establishing educational service agreements.

Requests and information necessary for the establishment of an educational service agreement will be furnished by one of the offices in 5137.7204-93.

5137.7204-91 -- Purchase requests.

(a) Requests to issue an order under the educational service agreement must include --

(1) The estimated cost of training by year, semester, term or quarter;

(2) The authority to adjust cost figures without requesting approval whenever the actual cost of a course will exceed the estimated cost by less than $100, except when the course is taught by professors of military science; and

(3) The information in 5137.7204-92(c)(1)-(4).

(b) The contracting officer shall obtain additional funds in writing from the funding activity when the actual cost of a course will exceed the estimated cost by $100 or more, except when the course is taught by professors of military science.

5137.7204-92 -- Ordering procedures.

(a) Issue a separate order for each required training session (i.e., year, semester, term or quarter) and obligate funds to cover the instruction of those individuals identified on the order form for the period specified.

(b) To preclude delays in enrollment, an order for the next fiscal year may be issued prior to the availability of funds, notwithstanding 5101.602-2. Insert the clause in FAR 52.232-18, Availability of Funds, in the order. When the funds become available, the contracting officer shall use Standard Form 30 to modify the order to cite the appropriation chargeable and to delete the Availability of Funds clause.

(c) An order may authorize the enrollment of any number of military personnel or Reserve Officers' Training Corps (ROTC) scholarship cadets and must --

(1) Identify each individual authorized to enroll by name and rank (for ROTC scholarship cadets, show social security number in lieu of rank);

(2) Identify the individual as an Army Medical Department member or ROTC scholarship cadet, when applicable;

(3) Identify each course for which the individual is enrolling and its actual or estimated cost;

(4) State the appropriation chargeable for the instruction of each individual; and

(5) Include the statement: “Whenever the actual cost of a course will exceed the estimated cost shown on this order by $100 or more, the Contractor shall submit a written request for approval to the Contracting Officer prior to commencing instruction.”

5137.7204-93 -- Distribution of orders.

Distribute one copy of each order, modification, and payment voucher to --

(a) Commander, AMEDDC&S, Department of Health Education and Training, Attn: MCCS-HE, 750 Greeley Road, Bldg. 4011, Suite 201, Fort Sam Houston, TX 78234-5075 for Army Medical Department personnel;

(b) The appropriate professor of military science for ROTC scholarship cadets;

(c) Office of the Deputy Chief of Staff, G1, Director of Military Personnel Management, Officer Division, Attn: DAPE-MPO-S, 300 Army Pentagon, Washington DC 20310-0300, for Army officer personnel other than those identified in (a) and (b); and (d) Office of the Deputy Chief of Staff, G1, Director of Military Personnel Management, Enlisted Division, Attn: DAPE-MPE-PD, 300 Army Pentagon, Washington DC 20310-0300, for Army enlisted personnel other than those identified in (a). [AFARS Revision #21, dated May 22, 2007]

5137.7204-94 -- Gratuitous agreements.

(a) A gratuitous agreement is an agreement with a civilian educational institution or with a commercial firm for training of military personnel for which the Government does not pay.

(b) Requests and information necessary for the execution of a gratuitous agreement will be furnished the contracting office by one of the offices in 5137.7204-93.

(c) Furnish two copies of the gratuitous agreement to the appropriate addressee in 5137.7204-93. In addition, furnish a copy of the agreement to all Army activities likely to have use for the training covered by the agreement.

Subpart 5137.90 -- Civil Confinement of Military Absentees and Deserters

5137.9001 -- Use of civil detention facilities.

See AR 190-9 and AR 190-47.

Subpart 5137.91 -- Videotape, Motion Picture or Videodisc Productions

5137.9101 -- Contracting for total productions.

(a) The Army Multimedia and Visual Information Directorate (AMVID), U.S. Army Services and Operations Agency, Office of the Administrative Assistant to the Secretary of the Army, is the only multimedia/visual information activity authorized to contract for total productions. See AR 25-1 and DA PAM 25-91.

(b) Requests for contracted total productions and non-local productions (per AR-25-1) will be directed to the local visual information activity for processing to the AMVID, Production Acquisition Division, ATTN: JDSO-VIA, 601 North Fairfax Street, Suite 334, Alexandria, Virginia 22314-2007.

(c) The contracting officer must ensure that procurement request for contracting total productions are forwarded to the AMVID, Production Acquisition Division, ATTN: JDSO-VIA, 601 North Fairfax Street, Suite 334, Alexandria, Virginia 22314-2007.

(d) For advisory and assistance services for audiovisual productions please contact AMVID, Production Acquisition Division, ATTN: JDSO-VIA, 601 North Fairfax Street, Suite 334, Alexandria, Virginia 22314-2007.

[AFARS Revision #21, dated May 22, 2007]

Subpart 5137.92 -- Overseas Military Banking Facilities

5137.9201 -- Solicitation and contract clause.

Use the following clause in all solicitations and contracts for the operation of overseas military banking facilities:

AFARS 5152.237-9000, Cost Allowability for Military Banking Facilities Contracts (Aug 1992).

Subpart 5137.93 -- Army Continuing Education System (ACES) Contracts

5137.9301 -- References.

AR 621-5 establishes the ACES and prescribes policies and responsibilities for its administration.

(a) AR 350-20 provides for mission-required language training contracted for through ACES.

(b) AR 25-1 describes information centers.

(c) AR 380-67 establishes Army security requirements for instructor personnel employed and paid by American universities to teach at overseas military installations.

5137.9302 -- Educational services contracts.

(a) Educational services contracts may be executed to support ACES for Active Component, Reserve Component and Army National Guard soldiers and to provide Headstart language and host nation acculturation programs for Active Component adult family members.

(b) In the continental United States (CONUS), postsecondary and off-duty high school instruction shall be obtained by tuition assistance procedures described in AR 621-5. In outside of the continental United States (OCONUS) areas, administrative and logistical support for postsecondary programs may be obtained by contracting if competitive procedures are used.

(c) Contracts must be used for the following:

(1) Conducting Army Education Center instruction for programs listed in AR 621-5 and AR 350-20.

(2) Testing of individuals or groups of individuals who desire to participate in ACES.

(3) Army Learning Center services such as the use of professional, paraprofessional or technical personnel to operate computer laboratories, information centers, language laboratories, military publications reference libraries and provide adjunct instruction for ACES participants.

(4) Education Transition Management services (for Active Component only).

(5) Education program development, such as curriculum development, software and courseware development.

(6) Training for professional development of ACES full-time, permanent, professional staff.

5137.9303 -- Procedures.

See above cited Army Regulations at 5137.9302(c)(1).

Subpart 5137.94 -- Security Clearances and Identification for Contractor Personnel

5137.9401 -- Responsibilities.

The contractor is responsible for obtaining required security clearances and identification cards, tags, and badges in accordance with AR 600-8-14.

Subpart 5137.95 -- Training With Commercial Firms

5137.9501 -- General.

(a) Refer questions about obtaining commercial training for Army Medical Department personnel to Commander, AMEDDC&S, Department of Health Education and Training, Attn: MCCS-HE, 750 Greeley Road, Bldg. 4011, Suite 201, Fort Sam Houston, TX 78234-5075 or by telephone to DSN 471-9528 or (210) 295-9528.

(b) Refer questions about obtaining commercial training for other Army personnel to the Office Of The Deputy Chief Of Staff, G1, Director of Military Personnel Management, Attn: DAPE-MP, 300 Army Pentagon, Washington DC 20310-0300, or by telephone to DSN 225-5881 or (703) 695-5881.

[AFARS Revision #21, dated May 22, 2007]

Subpart 5137.96 – Accounting for Contract Services

5137.9601--General

a. Contracting officers shall include in all contracts, task/delivery orders and modifications, the requirement to report contractor manpower.

b. All services, regardless of dollar threshold, that are internal Army requirements are to be reported. The following categories of services are exempt from the reporting requirement:

(1) Foreign Military Sales

(2) Utilities

(3) Construction

c. The requiring activity is responsible for including the reporting requirement in the statement of work and the contracting officer will provide a separate line item in Section B to allow for payment in compliance with this requirement.

d. The Contractor Manpower Reporting Application was established by the Secretary of the Army on 7 Jan 05 and it provides most of the source data for compliance with Section 807 of the FY 08 NDAA mandate to conduct an annual inventory of activities performed pursuant to contracts for services.

e. Data may be entered into the CMR system at any time during the contract’s period of performance, however data must be accurate and complete and entered into CMR during the data gathering period of 1 October through October 31 for every year or part of a year, for which the contract is active. [AFARS Revision #25, Item XVIII, April 1, 2010]