# Presentation: 760975

## Policies and Procedures for Proper Use of Non-DoD Contracts 

- Michael Canales/Domenic Cipicchio
- Defense Procurement and Acquisition Policy
- Office of the Under Secretary of Defense/AT&L

## Proper Use of Non-DoD Contracts 

- DoD spends billions of dollars through non-DoD contract
- vehicles.  This includes:
- Orders issued under these vehicles by DoD personnel
- Orders issued by non-DoD federal entities on DoD’s behalf, using DoD funds
- Examples:
- GSA Schedules
- Government-wide Acquisition Contracts
***Recent Inspector General reviews have found that non-DoD contract vehicles are not always properly used***

## Legislation

- FY 2002 NDAA
- Section 801-Management of Procurement of Services
- Section 803- Competition Requirement for the purchase of services pursuant to  multiple award contracts
- Pending FY 2005 NDAA Language
- 802-Internal Controls for Department of Defense Procurements Through GSA Client Support Centers
- 854-Defense Procurements Made Through Contracts of Other Agencies
- DPAP/Policy POC
- _[Michael.Canales@osd.mil](mailto:Michael.Canales@osd.mil)_
- 703-695-8571

## DFARS Interim Rule & New Policies

- DFARs Interim Rule 2002-D024 (Issued 1 October 2003)
- Applicable to acquisition of services
- Review process and procedures established by each agency or department
- Establishing New Policies
- Applicable to acquisition of both services and supplies
- Applies above the simplified acquisition threshold ($100,000)
- Agencies and departments must establish a pre-award review process/procedures to ensure that using non-DoD vehicles are in the best interest of the Department of Defense
- Provide DoD unique terms and conditions to assisting agencies
- Develop post-award review processes/procedures to analyze data on non-DoD contract vehicle usage

## Pre/Post Award Review Procedures

- Pre-Award Review Processes/Procedures
- Procedures should include consultation with DoD Contracting Officers and Financial managers, and take into consideration the following:
- Does this meet the customer’s needs – quality, delivery, price
- Whether the requirements are within scope of the intended vehicle
- Cost effectiveness (including fees and discounts)
- Schedule
- Contract administration
- Post-Award Review Processes/Procedures
- Coordinate with assisting agencies to analyze data on the number and value of transactions using non-DoD vehicles, as well as measuring the proper use and effectiveness of these vehicles

## Assisting Agency Support of the DoD Customer“With Revenue Comes Responsibility”

**Compliance with the FAR and DFARS **
**Competition Requirements- 803 (2002) **
**PBSA**
**File Documentation**
**Support of DoD Policy  on “Proper Use of Non-DoD Contracts” **
**Verification of compliance with DoD policy**
**Commitment to Open and Timely Communication  with DoD Customer**
**Contract availability**
**Training**
**Internal- Providing assisting agency support to the DoD Customer**
**File documentation**
**DFARS unique  requirements (Berry Amendment, UID, RFID) **
**TOP 100 Users-On-site training **
**On-Line Courses**
**Proper Marketing**

## Assisting Agency Support of the DoD Customer (cont.)“With Revenue Comes Responsibility”

**Compliance reviews/ IG reviews – “802 Like” (2005)  **
**Reliable Data Capture**
**Operating Budget - Plan and Execution **
**Fee Structure/Fees Paid/”854 Like” (2005) **
**FPDS (Assisting Agency, Customer, Commodity, Value)  **
**Accurate advertising and marketing of contract vehicles and organization capabilities**
**Assisting Agency advertising in print, radio, etc. and marketing to individual customers**
**Contractor’s role and responsibility  **