# AFFARS PART 5337Service Contracting

- PART 5337
  Service Contracting

- SUBPART 5337.1 — SERVICE CONTRACTS (GENERAL)

- 5337.101 Definitions
- 5337.104 Personal Services Contracts
- 5337.106 Funding and term of service contracts

- 5337.170-2 Approval Requirements

- SUBPART 5337.2 — ADVISORY AND ASSISTANCE SERVICES

- 5337.204 Guidelines for Determining Availability of Personnel

- SUBPART 5337.5 — MANAGEMENT AND OVERSIGHT OF SERVICE CONTRACTS

- 5337.503 Agency-head responsibilities

- 5337.503-90 Management and Oversight of the Acquisition of Services
- 5337.503-9000 Special Interest Authorities

- SUBPART 5337.90 – CONTRACTOR PERSONNEL PERFORMING MISSION ESSENTIAL SERVICES

- 5337.9001 Contract clause

PART 5337
Service Contracting

[Revised October 30, 2009]

SUBPART 5337.1 — SERVICE CONTRACTS (GENERAL)

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5337.101 Definitions

“Services Designated Official (SDO)” means the individual authorized IAW the FY02 National Defense Authorization Act (NDAA), Section 801 and FY06 NDAA, Section 812 to exercise responsibility for the management and oversight of the acquisition of services. These responsibilities include ensuring services acquisitions are at least 50 percent or more performance-based; approving, in advance, any acquisition that is not performance-based; and approving the acquisition of services procured through the use of a contract or task order being awarded by an agency other than DoD.

5337.104 Personal Services Contracts

(b)(i) For “Other Contracting,” the installation commander is authorized to approve determination and findings at DFARS 237.104(b)(i). For PEO programs and acquisitions, the PEO is authorized to approve this determination and finding.

5337.106 Funding and term of service contracts

See DFARS 204.7103 and Informational Guidance IG5304.7103 for guidance on considering severability when forming Service contracts.

5337.170-2 Approval Requirements

(a) Services acquisitions above the micro-purchase threshold must meet performance-based contract requirements. Services acquisitions with an annual contract value above the Simplified Acquisition Threshold (SAT) shall be performance-based IAW AFI 63-124, Performance-Based Services Acquisitions (PBSA). If more than 50 percent of the requirement (contract/task order/delivery order), measured in dollars, is performance-based, then it can be considered PBSA.

(1) When a service acquisition is considered a performance-based service acquisition (PBSA), either the acquisition plan or the Streamlined Acquisition Strategy Summary (SASS) shall be documented IAW 5307.104-92 as to how the PBSA requirement was evaluated and what methodology was used to determine PBSA requirements.

(b) Not all service acquisitions will lend themselves to PBSA objectives. The Services Designated Official (5337.503) is responsible for approving any services acquisition that is not performance-based in accordance with AFI 63-124. This authority includes acquisitions to be purchased within and outside of DoD. Purchase requests for services acquisitions that are not performance-based are signed by the SDO and will include the following statement:

“IAW 10 USC 2330, the Services Designated Official has approved the attached non-performance-based work statement and performance plan. Any contract or task order/delivery order resulting from this request is to be acquired using performance-based principles to the maximum extent practical.”

(c) For services over the simplified acquisition threshold, the Services Designated Official (5337.503) is responsible for approving any purchase requests for services acquisitions to be purchased using a contract or task order being awarded by an agency other than DoD. A copy of the determination and finding required at MP5317.78 shall accompany the purchase request, if applicable. Purchase requests shall include the following statements:

“The attached determination and finding approved by the Services Designated Official authorizes procurement outside of DoD. This acquisition has been determined to be in the best interest of the AF.”

SUBPART 5337.2 — ADVISORY AND ASSISTANCE SERVICES

5337.204 Guidelines for Determining Availability of Personnel

This approval has been delegated to MAJCOM/DRU Commanders and, within AFMC and AFSPC, to the Center Commanders.

SUBPART 5337.5 — MANAGEMENT AND OVERSIGHT OF SERVICE CONTRACTS

5337.503 Agency-head responsibilities
5337.503-90 Management and Oversight of the Acquisition of Services

(a) OSD(AT&L) and the Assistant Secretary of the Air Force (Acquisition) are responsible for service acquisitions $1,000,000,000 and above.

(b) The Air Force Program Executive Office for Combat and Mission Support (AFPEO/CM) is the SDO responsible for:

(1) All services acquisitions below $1,000,000,000 (not in another PEO/DAO portfolio).

(2) All A-76 studies involving 300 or more Full Time Equivalents (FTEs).

(c) All other PEOs/DAOs are the SDOs responsible for programs in their portfolio, except those designated as special interest.

(d) For “Other Contracting”, MAJCOM/DRU Commanders or designees are the SDOs responsible for acquisitions with a total value of $100,000,000 or less, and A-76 studies involving less than 300 FTEs.
5337.503-9000 Special Interest Authorities

(a) A services acquisition can be designated special interest by the organizations identified below. The official designating a services acquisition special interest is responsible for the management and oversight of that acquisition.

(1) OSD(AT&L) and the Assistant Secretary of the Air Force (Acquisition) (ASAF(A)), regardless of the total planned value or program affiliation.

(2) The Assistant Secretary of Defense (Networks and Information Integration) and Air Force Chief Information Officer, for information technology.

(3) AFPEO/CM, under $1,000,000,000 and A-76 studies involving less than 300 FTEs for those service acquisitions not in another PEOs portfolio.

SUBPART 5337.90 – CONTRACTOR PERSONNEL PERFORMING MISSION ESSENTIAL SERVICES

5337.9001 Contract clause

The contracting officer shall insert the clause at 5352.237-9001 – Requirements Affecting Contractor Personnel Performing Mission Essential Services, in solicitations and contracts that require contractors to perform mission essential services.