## *PROCESSING AND ADMINISTERING INTERAGENCY ACQUISITIONS UNDER THE AUTHORITY OF THE ECONOMY ACT*

### TABLE OF CONTENTS May 2002

**[Introduction]{.underline}**

**I. DEFINITIONS**

A. Advance Payment (FAR 17.505)\
B. Bilateral Modification\
C. Charge Back\
D. Contracting Officer (warrant authority)\
E. Cost Structure\
F. Economy Act Determination and Findings\
G. Economy Act\
H. Execute\
I.  Federal Finance System (FFS)\
J. Finance Specialist\
K. Interagency Acquisition (I/A)\
L. Interagency Acquisition Technical Representative (IART)\
M. Legal Review\
N. Modification (unilateral and bilateral)\
O. Obligation\
P. Intra-governmental Payment and Collection (IPAC)\
Q. Requesting Agency (Reclamation)\
R. Requirement\
S. Requisition\
T. Servicing Agency\
U. Unliquidated Obligation

**II. DETERMINATION FOR USE OF AN INTERAGENCY ACQUISITION**

A. Economy Act\
B. Sources to be Considered Before Proceeding with the Interagency
Acquisition Process\
C. Exceptions to Using the Economy Act

**III. ROLES AND RESPONSIBILITIES OF PARTIES INVOLVED WITH THE
INTERAGENCY ACQUISITION**

**IV. INITIATION AND AWARD OF AN INTERAGENCY ACQUISITION**

A. Preparation of the Acquisition Package\
B. Processing the Acquisition Package Through the Acquisition Office\
C. Proposed Interagency Acquisition Review Procedures\
D. Submission of Proposed Interagency Acquisition to the Servicing
Agency\
E. Award of the Interagency Acquisition

**V. IPAC TRANSACTION PROCESS**

A. IPAC by Servicing Agency\
B. BOR IPAC Process

**VI. VERIFICATION OF PAYMENT**

A. Finance Specialist\
B. Interagency Acquisition Technical Representative (IART)

**VII. CHANGES TO INTERAGENCY ACQUISITION**

A. Changes Requiring Modification\
B. Changes Not Requiring Modification

**VIII. INTERAGENCY ACQUISITION CLOSEOUT AND DISPOSITION OF OFFICIAL
FILE**

A. Closeout Process\
B. Document Retention and Disposition

**IX. TROUBLESHOOTING**

IPACs Received Without Relating Interagency Acquisition\
IPAC Received With an Unsigned Interagency Acquisition\
Reimbursable Work Authorization (RWA) Citing the Economy Act\
Gentlemen\'s Agreement\
Use of Purchase Cards to obtain Supplies/Services from other
Bureaus/Agencies\
IPAC that Exceeds the Funds Obligated\
Memorandum Of Understanding (MOU)/Memorandum of Agreement (MOA)\
Agreements with other bureaus for supplies from one of that bureau\'s
contracts

**XI. ATTACHMENTS**

1\. Economy Act Determination Format\
2. Form DI-1886\
3. Interagency Agreement Cover (Signature) Page\
4. Interagency Agreement Format\
5. Important Notice\
6. Interagency Agreement Closeout Checklist\
7. IPAC Bill Request Form

**Introduction :** This Interagency Acquisition (IA) handbook is
designed to be used as a standard desk reference guide that establishes
responsibilities and procedures for processing IAs between the Bureau of
Reclamation (Reclamation) and other Government agencies or major
organizational units within the agency. The established procedures in
this handbook are intended to provide a uniform methodology for
initiating, writing, administering, and paying for supplies or services
acquired by Reclamation from another Government agency or major
organizational unit within the Department of the Interior, when ordered
pursuant to the Economy Act, 31 USC 1535. Refer to Section II.C. when an
authority other than the Economy Act is being used to award an IA. If
you are unsure if your requirement is within the scope of the Economy
Act, contact your local acquisitions office

## I.  DEFINITIONS 

**A. Advance Payment -** Intra-governmental Payment and Collection
(IPAC) prepayments made in contemplation of future receipt of
supplies/services, or other assets provided by a Servicing Agency.

**B. Bilateral Modification -** A modification, consisting of a change
in the dollar amount or in the terms or conditions of an IA, requiring
the signature of both the Servicing Agency Official and the Contracting
Officer **\
\
****C. Chargeback -** An IPAC reversing a transfer of funds which has
been erroneously aid or collected.\
**\
****D. Contracting Officer -** The Government employee who has authority
to enter into, administer, modify, terminate, and closeout an IA. This
individual has been designated, in writing, by the Bureau Procurement
Chief to serve as a Contracting Officer. The Contracting Officer may
bind the Government only to the extent of his/her warrant authority.
Depending on the Region involved, this person\'s job title might also be
\"Grants Specialist\" or \"Financial Assistance Specialist.

**E. Cost Structure -**The 18-digit code used on all source documents
(requisitions, awards, modifications, etc.) to identify the fund,
project, cost authority, main, subproject, and detail. Costs are
recorded and tracked in Reclamation\'s accounting system (FFS) by using
the 18-digit code. The addition of a 19th digit signifies direct
charging to another region. **\
\
\
****F. Economy Act Determination & Findings -** A document signed by the
Contracting Officer and the Chief of the Contracting Office, with proper
review and approvals, justifying the award of an IA pursuant to the
requirements of the Economy Act, 31 U.S.C. 1535. **\
**

**G. Economy Act (31 U.S.C. 1535) -** The Congressional Act authorizing
\"the head of an agency or major organizational unit within an
agency\...\[to\]\...place an order with a major organizational unit
within the same agency or another agency for supplies or services if (1)
the amounts are available; (2) the head of the ordering agency or unit
decides the order is in the best interest of the United States
Government; (3) the agency or unit to fill the order is able to provide
or get by contract the ordered supplies or services; and (4) the head of
the agency decides ordered supplies or services cannot be provided by
contract as conveniently or cheaply by a commercial enterprise.\"

**H. Execute -** The term used when a Contracting Officer signs a
modification, thereby making it a part of the IA.

**I. Federal Financial System (FFS) -** The computer accounting system
the Bureau of Reclamation utilizes to record accounting entries. **\
\
****J. Finance Specialist -** The person in the Finance and Accounting
Services Office responsible for obligation of funds in the Federal
Financial System and for IPACs made by the Servicing Agency

**K. Interagency Agreement (IA) -** The award document, as defined in
the Federal Acquisition Regulation Subpart 17.5, by which an agency
needing supplies or services (the Requesting Agency) acquires them from
another agency or another bureau within the Department of the Interior
(the Servicing Agency). For the purposes of this handbook, the term
\"Interagency Acquisition\" only applies to those acquisitions that cite
the Economy Act, 31 USC 1535, as the authority for placing the order.

**L. Interagency Agreement Technical Representative (IATR) -** The
technical representative requiring the supplies/services who is
responsible for monitoring the work performed under the IA..

**M. Legal Review -** The Contracting Officer is required to submit all
Economy Act Determinations for IAs exceeding or anticipated to exceed
\$500,000 to the Regional Office of the Solicitor for review for legal
sufficiency

**N. Modification -** A document signed by the Contracting Officer
effecting a change to an original IA. Changes may be made to the period
of performance, scope of work, or IA value or obligated amount.

**O. Obligation -** Commitment of dollars by the Requesting Agency to be
used as payment for the performance of services or the providing of
supplies/services by the Servicing agency.

**P. Inter-governmental Payment and Collection (IPAC) -** The
intra-Governmental disbursement and collection system that provides
simultaneous disbursement by the paying agency and collection by the
billing agency. This is accomplished with interfacing computer systems
linked with the U.S. Treasury Department. IPAC eliminates check
issuance, deposit procedures, and paper voucher procedures. **\
\
****Q. Requesting Agency -** The agency/bureau requiring
supplies/services to be provided by a Servicing Agency. **\
\
****R. Requirement -** A Reclamation need for a service/supply that is
proposed to be acquired by another Government agency/bureau.\
**\
****S. Requisition (Purchase Request) -** The purchase request document
providing the description of the requirement and prevalidating funds. It
must be signed by an official having the proper level of prevalidation
authority and included as part of the acquisition package.

**T. Servicing Agency -** The agency providing a service or good. **\
\
****U. Unliquidated Obligation -** Funds obligated by the award of an IA
that have not been expended.

## II. DETERMINATION FOR USE OF AN INTERAGENCY ACQUISITION 

**\
****A. Economy Act**

The Economy Act , 31 U.S.C. 1535, authorizes agencies and major
organizational units within an agency to enter into mutual agreements
with other federal agencies to acquire supplies/services. The Economy
Act applies when more specific authority does not exist. Each IA is
required to be supported by an Economy Act Determination (see IV.B.1 as
prescribed in Federal Acquisition Regulation [FAR)
17.503](http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/17.htm#P232_36959)
. An IA may not be used by an agency (1) to make acquisitions
conflicting with any other agency\'s authority or responsibility or (2)
to circumvent conditions and limitations imposed on the use of funds.
Depending on the dollar value of the proposed IA, various levels of
approval are required as specified in Part IV of this handbook.

**B . Sources to be Considered Before Proceeding with the Interagency
Acquisition Process**

Government agencies, except as otherwise provided by law, must satisfy
requirements whenever possible through the use of sources specified in
the Federal Acquisition Regulation (FAR) Part 8 for supplies or
services, such as:

1\. Agency Inventories (supplies)\
2. Federal Prison Industries (supplies/services)\
3. Committee for Purchase From People Who Are Blind or Severely Disabled
(supplies/services)\
4. General Services Administration Federal Supply Schedules
(supplies/services)\
\
If the supplies/services are not available from any of the above sources
and the IA Technical Representative (IATR) believes that the requirement
can only be obtained from another Government Bureau or Agency, the use
of an IA may be the appropriate contractual instrument.

**C . Exceptions to Using Interagency Acquisitions Under the Economy
Act**

If the requestor intends to sign the award of an IA using other than the
Economy Act as its authority, the requestor is required to obtain an
award number for the IA from the local Acquisition Office. The following
information will be required to be provided in order to process the
request:

1\. Name of agency to be awarded the IA\
2. Description of requirement\
3. Authority being used for the IA\
4. Dollar amount of the IA\
5. Name of the individual signing the IA\
6. Name and telephone number of the point of contact

If award is to be made by someone who is not a warranted contracting
officer, that Reclamation employee is responsible for documentation and
certifications necessary for the transaction (e.g. memo to file
explaining the authority used, prevalidation of funds, and the receiving
process). Use of Reclamation formats for these types of acquisitions is
optional. The Interagency Acquisition should, however, list the
authority under which the Interagency Acquisition is being awarded.

For these types of Interagency Acquisitions, if the value exceeds
\$100,000, the action should be coordinated with the local
acquisition\'s office contracting staff.

The table below lists some of the exceptions to using the Economy Act as
the authority to obtain supplies/services from other Government
Agencies. It includes non-Economy Act purchase examples, their
Government source, the applicable legal authorities, and the responsible
office to contact for assistance in the acquisition. If you are unsure
whether your requirement is subject to the Economy Act, contact the
Acquisition Operations Group, D-7810, for assistance.

  ---------------- ---------------- ---------------------------------------------------------------------------------------------- -------------------
  SUPPLY OR        GOVERNMENT       LEGAL AUTHORITY/\                                                                              RESPONSIBLE
  SERVICE          SOURCE           REFERENCES                                                                                     ORDERING GROUP-
                                                                                                                                   Denver

  Administrative   General Services 40 United States Code (USC) 481                                                                D-7913, Property
  Stores Stock \-- Administration                                                                                                  Operations Team
  Fedstrip orders  (GSA) Supply                                                                                                    
  for supplies     Centers                                                                                                         
  such as paper,                                                                                                                   
  pencils, some                                                                                                                    
  furniture, etc.                                                                                                                  

  Administrative   U S Geological   USGS/ESRI-Data General contract terms                                                          D-7810 by Purchase
  Charges Only for Survey (USGS)                                                                                                   Order - Number
  use of a USGS                                                                                                                    includes a \"PA\"
  contract (i.e.                                                                                                                   in identification
  ESRI or Data                                                                                                                     number
  General)                                                                                                                         

  Building and/or  GSA              41Code of Federal Regulations (CFR) 101.20.002-2\                                              D-7910, Property
  Space Leasing                     [FAR                                                                                           and Facilities
                                    23.705](http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/23.htm#P201_25983)   Group
                                    FAR 45                                                                                         

  Charts and Maps  USGS             43 USC Chapter 2, Section 42                                                                   D-7810 ,
                                                                                                                                   Acquisition
                                                                                                                                   Operations Group -
                                                                                                                                   by Purchase Order
                                                                                                                                   or by technical
                                                                                                                                   staff with
                                                                                                                                   Government Purchase
                                                                                                                                   Card

  Federal          GSA              Federal Supply Schedule FTS 2001 contract terms                                                D-7900 , Property
  Telephone                                                                                                                        and Office Services
  Services (FTS)                                                                                                                   -\
  2001 for long                                                                                                                    Voice & Video
  distance calls                                                                                                                   Lines\
                                                                                                                                   D-7100, Information
                                                                                                                                   Resources
                                                                                                                                   Services - Data
                                                                                                                                   Lines

  Furniture,       Federal Prison   18 USC 4121-4128\                                                                              D-7810, Acquisition
  Signs,           Industries also  [FAR Part                                                                                      Operations Group
  Mattresses,      known as UNICOR  8.6](http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/08.htm#P288_43396)      
  Gloves etc.                                                                                                                      

  Government Owned GSA              40 USC 491 41CFR101.38\                                                                        D-7910, Property
  Automobile                        [FAR Part                                                                                      and Facilities
  Leasing,                          8.11](http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/08.htm#P484_71837)     Group
  Motorpools                                                                                                                       

  GSA-Tri Parts -  GSA              Information Technology Management Reform Act of 1999, 40 USC 757\                              D-7810, Acquisition
  Computer                          Division E of Public Law 104-106, 110 679                                                      Operations Group,
  programming and                                                                                                                  by Purchase Order -
  analyst service                                                                                                                  Number includes a
  contracts with                                                                                                                   \"PA\" in
  GSA as the prime                                                                                                                 identification
  contractor                                                                                                                       number

  Postage (Also    U.S. Post Office Public Law 91-375 USC 101                                                                      D-7810, Acquisition
  sold to the      (USPO)                                                                                                          Operations Group,
  public)                                                                                                                          by Purchase Order
                                                                                                                                   or by RSC on
                                                                                                                                   Government Purchase
                                                                                                                                   Card

  Printing,        Government       Public Law 102-392,\                                                                           D-7921, Printing
  duplicating, and Printing Office  Title II 207 44 USC 501\                                                                       and Duplicating
  related supplies (GPO)            [FAR                                                                                           team, Printing and
  and services                      8.802](http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/08.htm#P472_69992)    Duplication Team

  Purchase Orders  Small Business   15 USC 637(a)\                                                                                 D-7810, Acquisition
  or Contracts     Administration   15 USC. 644\                                                                                   Operations Group
  placed under the (SBA)            FAR 19                                                                                         
  Small Business                                                                                                                   
  Act, Section                                                                                                                     
  8(a) with SBA as                                                                                                                 
  the Prime                                                                                                                        
  Contractor                                                                                                                       

  Reimbursable     GSA              Public Law 94-579, FLPMA, as amended, Section 307                                              D-7910, Property
  Work                                                                                                                             and Facilities
  Authorizations                                                                                                                   Group
  Repair,                                                                                                                          
  modification, or                                                                                                                 
  renovation of                                                                                                                    
  GSA owned and                                                                                                                    
  managed                                                                                                                          
  buildings or                                                                                                                     
  other structures                                                                                                                 

  Standard Forms   GSA              CFR 41 Part 101-11                                                                             D-7913, Property
  and Optional                                                                                                                     Operations Team -
  Forms                                                                                                                            by Fedstrip

  Finger Prints,   Office of        5 Code of Federal Regulations Chapter 1 (1-1-99 Edition) Office of Personnel Management, Part  D-4200, Reclamation
  Background       Personnel        736, Subpart B                                                                                 Program Group,
  Checks, Staffing Management (OPM)                                                                                                Diversity and Human
  Services,                                                                                                                        Resources
  Vacancies                                                                                                                        

  Department of    Bureau of Land   BLM maintains all DOI forms                                                                    D-7921, Records and
  the Interior     Management (BLM)                                                                                                Office Services
  Forms                                                                                                                            Group, Printing and
                                                                                                                                   Duplication Team

  Film and Video   U.S. Film and    Government Management Reform Act                                                               Non-manditory use
  Production       Video                                                                                                           by anyone requiring
                   Productions,                                                                                                    Film or video
                   Minerals                                                                                                        production
                   Management                                                                                                      
                   Service                                                                                                         
  ---------------- ---------------- ---------------------------------------------------------------------------------------------- -------------------

## *III. ROLES AND RESPONSIBILITIES OF PARTIES INVOLVED WITH THE INTERAGENCY AGREEMENT*

+-----------------------------------+----------------------------------+
| **TITLE/ORGANIZATION**            | **RESPONSIBILITY**               |
+-----------------------------------+----------------------------------+
| INTERAGENCY ACQUISITION TECHNICAL | 1\. Identifies requirement\      |
| REPRESENTATIVE (IATR)             | 2. Prepares and submits the      |
|                                   | acquisition package to the       |
| Reclamation Service Center,       | Acquisition Operations Group\    |
| Commissioner\'s Office, Other     | 3. May prepare IA for Servicing  |
| Reclamation Region or Field       | Agency signature\                |
| Office                            | 4. Monitors Servicing Agency\'s  |
|                                   | work progress\                   |
|                                   | 5. Reviews Servicing Agency\'s   |
|                                   | backup documentation for         |
|                                   | Intra-governmental Payment and   |
|                                   | Collection (IPAC)\               |
|                                   | 6. Notifies Finance Specialist   |
|                                   | if there is a discrepancy in the |
|                                   | IPAC\                            |
|                                   | 7. If necessary, requests        |
|                                   | Contracting Officer to modify    |
|                                   | price, period of performance or  |
|                                   | work required\                   |
|                                   | 8. Provides information to the   |
|                                   | person responsible for IA        |
|                                   | closeout                         |
+-----------------------------------+----------------------------------+
| CONTRACTING OFFICER               | 1\. Determines an IA is the      |
|                                   | appropriate method of            |
| (May also be the Grants           | procurement\                     |
| Specialist or the Financial       | 2. Obtains all required          |
| Assistance Specialist)            | approvals\                       |
|                                   | 3. May prepare IA documents for  |
|                                   | Servicing Agency signature\      |
|                                   | 4. Awards (signs) and may        |
|                                   | administer the IA and all        |
|                                   | modifications\                   |
|                                   | 5. Coordinates IA closeout with  |
|                                   | Finance, the IATR, and Property\ |
|                                   | 6. Prepares IA records for       |
|                                   | transfer to Archives             |
+-----------------------------------+----------------------------------+
| SERVICING AGENCY OFFICIAL         | 1\. Receives IA award\           |
|                                   | 2. Furnishes the required        |
| Federal Government Agency or      | services or supplies\            |
| Bureau                            | 3. Initiates original IPAC       |
|                                   | transaction\                     |
|                                   | 4. Submits backup documentation  |
|                                   | for IPAC to IATR                 |
+-----------------------------------+----------------------------------+
| FINANCE SPECIALIST                | 1\. Enters all transactions as   |
|                                   | appropriate in FFS and monitors  |
| Finance & Accounting Services,    | all balances\                    |
|                                   | 2. Verifies IPAC billing period\ |
| Review & Analysis Team,           | 3. Receives and enters IPAC      |
|                                   | transactions into FFS\           |
| located in Denver                 | 4. Notifies IATR of IPAC         |
|                                   | transactions\                    |
|                                   | 5. Rectifies any IPAC            |
|                                   | discrepancies\                   |
|                                   | 6. Supports Contracting Officer  |
|                                   | and IATR in IA closeout\         |
|                                   | 7. Transfers financial records   |
|                                   | to Archives                      |
+-----------------------------------+----------------------------------+

 

## *IV. INITIATION AND AWARD OF AN INTERAGENCY AGREEMENT* 

 

**A. Preparation of the Acquisition Package**

The acquisition process begins with the IATR. The IATR identifies a
requirement which can best be performed by another Government agency and
prepares an acquisition package. This acquisition package must include
(1) a specific statement of work, including any special required terms
and conditions; (2) a justification for acquiring the supplies/services
from another Government agency rather than using other acquisition
procedures prescribed in the Federal Acquisition Regulation (FAR); and
(3) a purchase request containing the dollar amount of the acquisition
along with the cost structure to be charged. In some Regions, the IATR
prepares a complete draft of the IA and the Economy Act Determination
for Review by the CO.

**B. Processing of the Acquisition Package Through the Acquisition
Office**

Upon completion of the acquisition package, the IATR submits it to the
office in charge of awarding IAs. The package is then assigned to a
Contracting Officer for processing. Before award of an IA, the
Contracting Officer ensures that all requirements of law, executive
orders, regulations and all other applicable procedures, including
clearances and approvals, have been met. One of these requirements is
the Economy Act Determination.

1\. Economy Act Determination: After review of the package, the first
document prepared is the Economy Act Determination.

a\. Depending on the Region involved, either the Contracting Officer or
the IATR prepares the Economy Act Determination. The preparation of this
document may require interaction between the IATR and the Contracting
Officer to ensure that adequate information has been obtained to support
the award of the IA (in regions where the Contracting Officer prepares
the Determination, the IATR is required to submit a justification for
entering into an IA). The Economy Act Determination must state that:

\(1\) funds for the acquisition are available;\
(2) the acquisition using an IA is in the best interest of the United
States Government;\
(3) the Servicing Agency is able to provide or get by contract the
required supplies or services; and\
(4) the supplies or services cannot be provided by contract as
conveniently or economically by contracting directly with a private
source. (see Attachment No. 1 for a suggested format to be used when
preparing the Economy Act Determination).

In order to make the statement in \"(4)\" above, market research may
have to be performed which may include advertising the requirement. Once
completed, the Economy Act Determination is signed by the Contracting
Officer.

b\. If the Economy Act order requires contracting action by the
servicing agency, the Economy Act Determination shall also include a
statement that at least one of the following circumstances is
applicable\--

\(1\) The acquisition will appropriately be made under an existing
contract of the servicing agency, entered into before placement of the
order, to meet the requirements of the servicing agency for the same or
similar supplies or services;

\(2\) The servicing agency has capabilities or expertise to enter into a
contract for such supplies or services which is not available within the
requesting agency; or

\(3\) The servicing agency is specifically authorized by law or
regulation to purchase such supplies or services on behalf of other
agencies.

It should also be noted that acquisitions under the Economy Act for
\"on-going services\" are not exempt from the A-76 requirements of [FAR
Subpart
7.3](http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/07.htm#P170_32857)
, Contractor Versus Government Performance.

There are times when, after discussion with the IATR, the Contracting
Officer determines that the requirement cannot be obtained through an
IA. In such cases, the requirement is obtained using other contracting
methods.

2\. Reviews and Approvals

a\. Small Business Approval (Denver Office Only). All purchase requests
for proposed IAs are required to be reviewed and approved by the
acquisition office\'s Business Utilization and Development Specialist
(BUDS). Reviews are made to determine if the requirement could be
obtained from a small business. The Contracting Officer requests
approval through submission of a DI-1886 (see Attachment No. 2) and the
proposed Economy Act Determination.

\(1\) Requirements less than \$25,000. Review and approval is performed
by the BUDS in the Acquisition Operations Group.

\(2\) Requirements greater than or equal to \$25,000. Reviewed and
approved initially by the BUDS and forwarded to the Small Business
Administration (SBA) for concurrence.

b\. Review by the Chief of the Contracting Office. Following the
approval in \"a\" above, if required, the Chief of the Contracting
Office is required to approve proposed Economy Act Determinations for
actions of \$500,000 or less (Reclamation Acquisition Regulations
1417.503).

c\. Review by the Office of the Solicitor. The Office of the Solicitor
is required to review Economy Act Determinations for legal sufficiency
if the anticipated dollar amount of requirement is greater than or equal
to \$500,000 (DIAR 1417.502)..

d\. Review by the Bureau Procurement Chief (BPC). In accordance with WBR
1417.502(c), Economy Act Determinations above \$500,000 made under [FAR
17.502](http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/17.htm#P227_36320)
must be submitted by the Contracting Officer to the BPC (D-7800) for
approval (Reclamation Acquisition Regulations
[1417.503](http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/17.htm#P232_36959)).

**C. Proposed Interagency Acquisition Review Procedures**

Depending on the Region, the IA is either prepared by the Contracting
Officer or the IATR. Attachment Nos. 3 and 4 contain suggested formats
to be used for both the signature cover page and body of the IA. All
working copies of the IA should be watermarked with the word \"DRAFT\"
to alert everyone that the document is not an awarded IA and may not be
used by any party to start work or initiate billing/payment (IPAC).

**D. Submission of Proposed Interagency Acquisition to the Servicing
Agency**

Depending on the Region, the proposed IA (without \"DRAFT\" watermark)
is then sent to the Servicing Agency for signature by either the
Contracting Officer or the IATR.. An \"IMPORTANT NOTICE\" page printed
on colored paper is to be placed on top of each IA copy sent to the
Servicing Agency for signature. This page will state that (1) the
attached document is a proposed IA requiring signatures of both the
Servicing Agency and the Requesting Agency before becoming a properly
awarded IA; (2) the Servicing Agency may not use the proposed IA as an
authorization to begin work; and (3) the Servicing Agency may not use
the proposed IA to initiate any IPAC billing.

**E. Award of the Interagency Acquisition**

Upon receipt of the signed copies from the Servicing Agency, the
Contracting Officer officially awards the IA by signing it. Depending on
the Region, copies of the IA are then distributed by either the
Contracting Officer or the IATR to the Contracting Officer, the
Servicing Agency, the Finance Specialist, the IATR, and the Property
office (if property is furnished or purchased) with the Contracting
Officer retaining an original signed copy.

## V. IPAC TRANSACTION PROCESS 

 

**A. IPAC by Servicing Agency**

The Intra-governmental Payment and Collection System (IPAC) is utilized
to process all payments against IAs. In addition to initiating an IPAC
transaction, the Servicing Agency provides the detailed supporting
documentation to Reclamation as noted in Block 10 of the IA signature
cover page. At a minimum, the documentation should include the IA number
and an explanation of the costs involved. The Servicing Agency processes
the IPAC transaction using Reclamation\'s Agency Location Code (ALC)
14-06-0905.

**B. BOR IPAC Process**

1\. Funds are automatically removed from BOR\'s accounts when a
Servicing Agency activates an IPAC. Therefore, no approval is required
from the IATR for the IPAC made by the Servicing Agency. IPAC
transactions are received on a daily basis from the Department of the
Treasury. The Finance Specialist reviews the transaction and checks the
IPAC description to verify that it includes the following:

a\. BOR IA Number\
b. Billing Period\
c. BOR Accounting Information\
d. Servicing Agency Contact Name and Telephone Number

If items \"a\" through \"d\" above have not been included with the IPAC
transaction, the Finance Specialist has the discretion to either (a)
immediately charge back the IPAC or (b) obtain clarification from the
Servicing Agency\'s IATR or financial contact listed on the award
document. An immediate chargeback is warranted if an agency has
repeatedly omitted the required data from the IPAC description.\
\
2. Once discrepancies in the IPAC description have been resolved, the
Finance Specialist matches the transaction with the IA. The Finance
Specialist checks (a) FFS to ensure that adequate funds are obligated to
cover the cost incurred, and (b) the IA to ensure the billing period is
within the IAs period of performance. If a problem exists with the
obligation or billing period, the Finance Specialist contacts either the
IATR or the Contracting Officer, for further assistance.

3\. The Finance Specialist processes the valid IPAC transaction in FFS
of funds automatically taken by the Servicing Agency. Transactions for
costs incurred are processed as Direct Disbursements (DD). Returned
funds from erroneous billings or refunds from advance payments are
processed as Cash Receipts (CG).

## VI. VERIFICATION OF PAYMENT 

 

**A. Finance Specialist**

Once the IPAC has been recorded in FFS, the Finance Specialist sends an
e-mail message to the IATR. This message (including the IA number,
amount of transaction and billing period) notifies the IATR that the
IPAC transaction has been entered into FFS. The Finance Specialist files
copies of both the sent e-mail message and the Mail Envelope Properties
screen showing the date and time the e-mail was delivered to the IATR.
From that point on, the IPAC payment is presumed to be correct, unless
the Finance Specialist receives a response from the IATR indicating
otherwise.

**B. Interagency Acquisition Technical Representative (IATR)**

The Servicing Agency is directed in Block 10 of the IA signature cover
page to send all supporting documentation directly to the IATR for
review. The IATR has the responsibility to determine if the supporting
documentation and the IPAC transaction coincide.

If there is a discrepancy in the IPAC payment or supporting
documentation such as work status, period of performance, or dollar
amounts, the IATR must immediately notify the Finance Specialist.
Written notification should be via e-mail explaining the discrepancies
and any corrective action to be taken by the Finance Specialist, such as
charging back all or part of the IPAC.

## VII. CHANGES TO INTERAGENCY ACQUISITIONS 

 

**A. Changes Requiring Modification**

The Finance Specialist may only adjust the FFS amount or period of
performance upon receiving a signed modification from the Contracting
Officer. These types of modifications are initiated by the IATR through
the Contracting Officer. The modification states in clear language the
action to be taken by the Finance Specialist as it pertains to the
amount or period of performance.

1\. Changes Increasing the Obligated Amount of the IA

The IATR is required to submit a requisition or written request (memo or
e-mail) containing all the elements of a requisition to the Contracting
Officer for all modifications resulting in the obligation of additional
funds to the IA. If other than a requisition, the request must be from
an individual having proper funding authority.

a\. Review by the Office of the Solicitor.

\(1\) The Contracting Officer is required to submit an Economy Act
Determination to the Office of the Solicitor for review as specified in
part IV.B.2.c. for actions which were not expected to exceed \$500,000
when initially awarded, but will equal or exceed \$500,000 as a result
of a modification.

\(2\) In accordance with WBR 1401.7001-2(a)(4), the Contracting Officer
must submit all modifications exceeding \$500,000 to the Office of the
Solicitor for review.

b\. Review by the Bureau Procurement Chief (BPC): In accordance with WBR
1417.502(c), Economy Act Determinations for all actions (awards or
modifications) having a cumulative total value above \$500,000 made
under [FAR
17.502](http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/17.htm#P227_36320)
must be submitted by the Contracting Officer to the BPC for approval.

2\. Changes Not Increasing the Obligated Amount of the IA

The IATR is required to submit a written request to the Contracting
Officer for any proposed modifications (a) changing the IA total value
(b) reducing the IA obligated amount; (c) adjusting the period of
performance; or (d) altering the statement of work.

Upon receiving the request to modify the IA from the IATR, the
Contracting Officer determines if there is sufficient authority to
initiate a modification and whether the Servicing Agency will be
required to sign the modification. After conferring with the Servicing
Agency, the Contracting Officer or the IATR prepares and sends the
proposed modification, if it is required, to the Servicing Agency for
signature. Once signed and returned by the Servicing Agency, the
Contracting Officer executes the modification by signing it. Then either
the Contracting Officer or the IATR distributes signed copies of the
executed modification to the Servicing Agency, the Finance Specialist,
and the IATR, with the Contracting Officer retaining an original signed
copy.

Upon receipt of the executed modification, the Finance Specialist makes
any FFS entries or notations required by the modification, such as
changes in obligated amounts or periods of performance.

**B. Changes Not Requiring a Modification**

There are times when the cost structure has to be changed. This is an
internal Reclamation procedure that does not affect the Servicing
Agency\'s performance of the IA. Only the IATR designated on the IA may
make a written request directly to the Finance Specialist to change the
cost structure. The Finance Specialist then provides the Contracting
Officer via e-mail with information regarding the amount of funds
previously expended against the replaced cost structure, the funds
currently obligated against the new cost structure, and the name of the
person who is requesting the change who is responsible for coordinating
the process.

## VIII. INTERAGENCY ACQUISITIONT CLOSEOUT AND DISPOSITION OF OFFICIAL FILE 

Inquires regarding the closeout or disposition status must be directed
to the Contracting Officer who is responsible for coordinating the
process.

**A. Closeout Process**

An IA is ready for closeout when the final date of the performance
period has been reached, services have been performed satisfactorily or
acceptable supplies have been delivered, and final payment has been
made.

The Contracting Officer contacts the Servicing Agency to verify that
work has been performed, and that the full payment for supplies or
services has been received (see Attachment No. 6). The Contracting
Officer, IATR, and Finance Specialist compare their records of
performance and payments to make sure that all are in agreement.

1\. Interagency Acquisition without Unliquidated Obligations. If the
amounts obligated for the IA are all expended, the IA can be closed out
and the IA file folders prepared for archiving.

2\. Interagency Acquisition with Unliquidated Obligations. If the
amounts obligated for the IA are not all expended, and all payments have
been made, there are two methods of handling the IA closeout depending
upon the Servicing Agency\'s IPAC timing.

a\. Advance Payment. If a payment was IPAC\'d in advance, and the work
is complete, the Contracting Officer requests an accounting of
expenditures under the IA from the Servicing Agency. If the full amount
of the advance payment has not been expended, the Contracting Officer
issues a bilateral modification to reconcile the IA amount and remaining
obligation. In addition, the Contracting Officer or the IATR sends an
IPAC Bill Request Form (see Attachment No. 7) along with the
modification to Finance and Accounting Services, D-7733. The form will
direct the Finance Specialist to IPAC the Servicing Agency for any
residual funds.

b\. Incurred Cost Payments. When all required payments have been made
and there is an unliquidated obligation, the Contracting Officer issues
a bilateral modification to the IA deobligating that amount. The Finance
Specialist uses that modification to reduce the amount of the obligation
in FFS.

**B. Document Retention and Disposition**

When the IA has been closed out, most IA documents created in the
Acquisition Operations Group and Finance and Accounting Services offices
are sent to the National Archives and Records Administration, Federal
Records Center for permanent storage. Records for IAs are coded
\"ADM-13.00\", indicating a permanent retention period.

The Contracting Officer completes a Closeout Form (Attachment No. 6)
indicating the record retention code and time period of retention. The
Closeout Form will be forwarded to Finance and Accounting Services,
Review and Analysis Team, D-7733, so that the financial record retention
period is identical. A copy of this form should be placed in the IA
files in both Acquisition and Finance.

Once the documents are boxed and sent to Records Management, D-7922,
information about the IA is entered into a computer database for
archival retrieval before they are forwarded to the Federal Records
Center, so that they may be tracked and accessed if the need arises.
Archived IA documents are available for future use by request through D

## IX. TROUBLESHOOTING 

 

+--------------------------+-------------------------------------------+
| **PROBLEM**              | **ACTION REQUIRED**                       |
+--------------------------+-------------------------------------------+
| IPACs Received Without\  | The Finance Specialist should contact the |
| Relating Interagency     | Servicing Agency to determine:            |
| Acquisition              |                                           |
|                          | \- If there is an IA in place,\           |
|                          | . obtain the IA number, name of both the  |
|                          | IATR and the Contracting Officer;\        |
|                          | . contact the Contracting Officer to      |
|                          | obtain a copy of the signed IA;\          |
|                          | . finally, the IPAC may then be costed;\  |
|                          | \                                         |
|                          | - If there is not a signed IA in place,   |
|                          | the Finance Specialist should contact the |
|                          | Acquisition office for assistance.        |
+--------------------------+-------------------------------------------+
| IPAC Received With an    | The Finance Specialist needs to contact   |
| Unsigned Interagency     | the Acquisition office to verify if there |
| Acquisition              | a signed IA in place:                     |
|                          |                                           |
|                          | -   If there is a signed IA, then IPAC    |
|                          |     may be costed;                        |
|                          |                                           |
|                          | -   If there is no signed IA,             |
|                          |     Acquisitions will direct the Finance  |
|                          |     Specialist to charge back the IPAC.   |
+--------------------------+-------------------------------------------+
| Reimbursable Work\       | For Reimbursable Work Authorizations that |
| Authorization (RWA)\     | cite the Economy Act as their             |
| Citing the Economy Act   | authorization, a copy of the Economy Act  |
|                          | Determination prepared and signed by the  |
|                          | Contracting Officer is required to be     |
|                          | included in Finance\'s RWA folder prior   |
|                          | to payment being approved:                |
|                          |                                           |
|                          | -   If there is an Economy Act            |
|                          |     Determination, payment may be costed; |
|                          |                                           |
|                          | -   If the RWA has no Economy Act         |
|                          |     Determination attached, the Finance   |
|                          |     Specialist should contact the Chief   |
|                          |     of the Contracting Office, D-7810,    |
|                          |     Acquisition Operations Branch,        |
|                          |     445-2431 for assistance.              |
+--------------------------+-------------------------------------------+
| Gentlemen\'s Agreement   | No form of handshake or gentleman\'s      |
|                          | agreement to transfer funds to another    |
|                          | bureau/agency pursuant to the Economy Act |
|                          | is allowed. All transfers of funds to     |
|                          | other bureaus/agencies must be            |
|                          | accomplished by issuance of an IA. If the |
|                          | IA is to be awarded under the authority   |
|                          | of the Economy Act, a written Economy Act |
|                          | Determination signed by a Contracting     |
|                          | Officer is required. The Finance          |
|                          | Specialist should direct the requestor to |
|                          | the Acquisition office for assistance.    |
+--------------------------+-------------------------------------------+
| Use of Purchase Cards to | The use of purchase cards to pay for      |
| Obtain supplies/services | supplies/services from other              |
| from Other               | agencies/bureaus is acceptable. If the    |
|                          | purchase is one that requires it, the     |
|                          | card user has to obtain an Economy Act    |
|                          | Determination, signed by a Contracting    |
|                          | Officer warranted to purchase             |
|                          | supplies/services within the dollar       |
|                          | amount of the proposed purchase. If the   |
|                          | purchaser is not sure if the purchase     |
|                          | requires an Economy Act Determination,    |
|                          | he/she should contact the Acquisition     |
|                          | office for advice.                        |
+--------------------------+-------------------------------------------+
| IPAC that Exceeds the    | The Finance Specialist contacts the IATR  |
| Funds Obligated          | or Contracting Officer to find out        |
|                          | whether a modification is forthcoming. If |
|                          | services/supplies are not valid, the IATR |
|                          | will send an e-mail message to the        |
|                          | Finance Specialist who will take the      |
|                          | appropriate action (e.g. chargeback the   |
|                          | Servicing Agency).                        |
+--------------------------+-------------------------------------------+
| Memorandum of            | The MOU/MOA is an agreement by two or     |
| Understanding            | more parties to cooperate in a mutual     |
| (MOU)/Memorandum of      | endeavor. It is not intended to be a      |
| Agreement (MOA) .        | detailed working document but may be used |
|                          | as an \"umbrella\" agreement that         |
|                          | provides an initial basis for more        |
|                          | detailed subagreements, such as IAs.      |
|                          | MOUs/MOAs do not obligate or exchange     |
|                          | private or Federal funds, supplies,       |
|                          | equipment, or services. They are usually  |
|                          | signed by agency or department officials  |
|                          | while an IA requires the signature of a   |
|                          | warranted Contracting Officer from the    |
|                          | Requesting Agency.                        |
|                          |                                           |
|                          | -   Finance should never fund any         |
|                          |     MOU/MOA. If an MOU/MOA is received in |
|                          |     Finance requesting funding, the       |
|                          |     matter should be referred to D-7810,  |
|                          |     Acquisition Operations Group, for     |
|                          |     resolution.                           |
|                          |                                           |
|                          | -   MOUs/MOAs are not required to be in   |
|                          |     place prior to award of IAs.          |
|                          |                                           |
|                          | -   Any IA written pursuant to a MOU/MOA  |
|                          |     requires a separate Economy Act       |
|                          |     Determination.                        |
+--------------------------+-------------------------------------------+
| Agreements with other    | These types of acquisitions are usually   |
| bureaus for supplies     | for supplies from the Servicing Agency\'s |
| from one of that         | contract with a private concern. Supplies |
| bureau\'s contracts      | are delivered directly to Reclamation by  |
| (sometimes referred to   | the contractor, by-passing the Servicing  |
| as Partnership           | Agency. The problem here is that often    |
| Agreements)              | the contractor invoices Reclamation       |
|                          | directly instead of invoicing the         |
|                          | Servicing Agency with whom it has a       |
|                          | contract. This is not allowed. The        |
|                          | contractor must invoice the Servicing     |
|                          | Agency who will then IPAC Reclamation for |
|                          | the funds. This must be made clear in the |
|                          | IA.                                       |
+--------------------------+-------------------------------------------+

 

 

## X. ATTACHMENTS 

1\. Attachment No. 1 - Economy Act Determination Format **\
**2 Attachment No. 2 - Form DI-1886\
3. Attachment No. 3 - Interagency Agreement Cover (Signature) Page\
4. Attachment No. 4 - Interagency Agreement Format\
5 Attachment No. 5.- Important Notice\
6. Attachment No. 6.- Interagency Agreement Closeout Checklist\
7. Attachment No. 7 - IPAC Bill Request Form