**THE SECRETARY OF EDUCATION**

**Washington, DC  20202**

**MEMORANDUM**

TO:The Chief Operating Officer 

Federal Student Aid

FROM:The Secretary

SUBJECT: Delegation of Acquisition and Contracting Authority 

I. DELEGATION OF AUTHORITY

Under the authority vested in me by section 412 of the Department of Education Organization Act,  20 U.S.C. §3472, and in accordance with Part D, Section 142 of the Higher Education Act of 1965, as amended, and with Federal Acquisition Regulations (FAR) Title 48 of the Code of Federal Regulations (C.F.R.), I hereby delegate to you, or to your successor in function, or to anyone serving for you in an acting capacity, those authorities to procure and manage property and services in the performance of functions managed by Federal Student Aid (SFA), as set forth in the attached Memorandum of Understanding (MOU) entered into with the Department's Chief Acquisitions Officer (CAO) dated April 18, 2005.

Unless otherwise noted in future delegations of authority, amendments to the authority cited herein are included within the scope of this delegation.

II. RESERVATIONS

Unless otherwise noted, in existing or future delegations of authority, the following are not delegated:

A.unless otherwise provided by law, the authority to submit reports to Congress or the President;

B.the authority to serve as or appoint the agency competition advocate pursuant to 48 C.F.R. Section 6.501; 

Page 2 – Delegation of Authority

C. any authorities reserved by the FAR, the MOU, or other law, solely to the head of the agency, the Chief Acquisitions Officer, or the Senior Procurement Executive; and

D.the authority to impose debarments and suspensions and to manage enforcement of debarments and suspensions.

III. REDELEGATION

Subject to the requirements of law, you may delegate any of the authority delegated to you, and authorize further delegation.

IV. CERTIFICATION AND EFFECTIVE DATE

This delegation is effective upon certification by the Department's Delegations Control Officer and supersedes delegation EA/EN/49.  I hereby ratify actions within the scope of this delegation taken by the Chief Operating Officer prior to the date of certification.

__________/s/_____________

       Margaret Spellings

Attachment

OGC Concurrence and Date:  /s/ David Berthiaume, 4/1/05

Certified Date:  4/18/2005

Departmental Delegations Control Officer:  /s/ Naty G. Beetle

Control Number:  EA/EN/56

# April 18, 2005

# MEMORANDUM OF UNDERSTANDING BETWEEN

**DEPARTMENT’S CHIEF FINANCIAL OFFICER**

**AND**

**FSA’S CHIEF OPERATING OFFICER**

# PURPOSE

The Secretary has delegated certain acquisition and procurement authority to the Department’s Chief Financial Officer (CFO) (who also has been appointed by the Secretary as the Department’s Chief Acquisition Officer (CAO)) and to the Chief Operating Officer (COO) of Federal Student Aid. The purpose of this Memorandum of Understanding (MOU) is to further define and allocate procurement and acquisition responsibilities between FSA’s COO and the Department’s CFO consistent with the Secretary’s delegations and all applicable laws and regulations. 

**GUIDING PRINCIPLE**

The Department’s CFO has overall responsibility for establishing, maintaining and managing a single Department-wide procurement procedure and process to acquire and deliver, on a timely basis, the best value products and services needed by the Department.  As set forth below, the COO has responsibility for certain day-to-day functions and operations related to the acquisition of products and services for FSA.  In fulfilling their responsibilities, both the CFO and COO shall protect the integrity of the procurement system, safeguard the public’s trust, fulfill public policy objectives and comply with applicable procurement laws, regulations and directives.  

**RESPONSIBILITIES OF THE PARTIES:**A Service-Level Agreement (SLA) will be established for the appropriate responsibilities identified below:  (see Attachment A for SLA).

The CAO or delegate will:

1. Approve all justifications for other than full and open competition above $50,000,000 in accordance with the requirements of the Federal Acquisition Regulations (FAR) 6.304(a)(4) and 6.501.  

2. Develop the Department’s acquisition plan and forecast with input from FSA.

3. Establish an official forum to ensure the Department is successful in taking advantage of opportunities for economic purchase quantity buys.

4. Establish, maintain and enforce Departmental acquisition policy in accordance with applicable procurement laws and regulations including, but not limited to:

· Communicating Department acquisition policies, procedures, and regulations;

· Updating the EDAR (Education Department Acquisition Regulations);

· Ensuring the list of debarred/suspended firms and individuals is adequately publicized within the Department so those firms and individuals listed can be readily identified by all Department officers, including the COO;

· Approving deviations from the FAR, EDAR or other Department policies, regulations or procedures;

· Deciding agency level protests; and

· Reporting to the President and Congress.

5. Provide oversight management to all Departmental procurement activities including, but not limited to:

· Conducting contract management pre and post award reviews with reports to the FSA COO of FSA activities. 

6. Provide guidelines for acquisition workforce management including but not limited to: 

· Qualifications and certifications for Contracting Officers and Contract Specialists;

· Waivers for Contracting Officer appointments where the candidate does not meet Department qualification standards; and

· Establishing career management procedures, plans and policies.

7. Establish, maintain, and communicate standards for the conduct of audit activities in support of the acquisition function for the Department including:

· Coordinate the conduct of audit activities and develop a SLA with the Department’s Office of Inspector General (OIG).  Such SLA should cover:  the OIG field pricing support services; input and coordination responsibilities of the acquisition staff; reasonable delivery and response times; as well as, the contingency plan if OIG services are not available to meet the needs of the Department; and

· Set procedures to provision contract audit support when OIG support is not reasonably available. 

8. Provide procurement management information systems for contract activities, e.g., contract document generation, workload management, reporting, procedures, etc.

# FSA’s COO or delegate will:

1. Communicate to FSA’s acquisition workforce all policies, practices and procedures established by the Department’s CFO.  In addition, the COO will educate FSA’s acquisition workforce on these policies and procedures assuring that FSA’s acquisition practices are consistent with applicable procurement laws and regulations and the CFO’s policies, practices and directives. 

2. Appoint a competition advocate for FSA; responsibility includes approving sole source procurements less than or equal to $10,000,000.

3. Establish a “head of the procuring activity”; responsibility includes approving proposed sole source procurements over $10,000,000 but not exceeding $50,000,000.

4. Perform acquisition planning as defined in Part 7 of the FAR for all FSA acquisitions. 

5. Serve as the small business advocate for FSA as defined in Part 19 of the FAR in assisting the Department in meeting small business goals.

6. Work with the CFO to apply the specific FSA acquisition authorities vested in the COO per the PBO Act of 1998.

7. Direct all pre-award contract activities for FSA including:

· Developing acquisition strategies;

· Performing market research;

· Reviewing and approving solicitations, including statements of work and objectives;

· Developing and issuing solicitations;

· Performing price analysis and conducting evaluations of proposals and conducting discussions and negotiations with offerors; and

· Awarding contracts.

8. Direct all post-award contract activities for FSA acquisitions including: 

· Monitoring vendor performance;

· Managing Government Furnished Property (GFP);

· Reviewing and approving solicitations, modifications and orders;

· Issuing task orders/delivery orders;

· Issuing contract modifications;

· Performing price analysis and conducting negotiations on all task orders/delivery orders and contract modifications, as appropriate;

· Monitoring and approving the processing of payments; and

· Processing contract closeouts.

9. Adhere to all acquisition workforce standards as dictated by the CFO including:

· Qualification for appointment; and

· Professional development.

10. Manage the Acquisition Workforce assigned to FSA acquisitions including:

· Recruiting and selecting staff;

· Training and educating staff;

· Supervising staff; and 

· Issuing warrants to staff members meeting Department qualification standards (all waivers must be approved by the CFO).

11. Reporting in procurement systems and Department reports including:

· Input for the Federal Procurement Data System (FPDS);

· Input for annual procurement plans;

· Input for past performance into EDCAPS;

· Input into EDCAPS of solicitations and contract awards; and

· Vendor Subcontract Plan Reports (SF295/294);

· Identification, qualifications, warrant authority and training of all individuals in the acquisition workforce.

12.  Report FSA contract award activity to the CAO/SPE on a monthly                                       basis. 

13.  Prepare and transmit to the CAO/SPE an annual report by fiscal year on FSA competition advocate activities in accordance with 41 U.S.C. Sec. 418. 

**EFFECTIVE DATE**

The terms of this MOU will become effective upon signature of the parties.  It shall remain in effect until modified in accordance with the procedures herein described.

**MODIFICATIONS**

The MOU may be modified upon the mutual written consent of the FSA COO and the Department’s CFO.

**RELATIONSHIP TO OTHER AUTHORITIES**

Nothing in this MOU is intended to restrict any FSA action that it would be otherwise authorized to take under the PBO legislation.

# CONTACT INFORMATION FOR LIAISONS

A. Contact for FSA

Patrick Bradfield

Director, FSA Acquisitions

B. Contact for CFO

Glenn Perry

Director, Contracts and Acquisitions Management

The undersigned approve the terms and conditions of this MOU.

_________________/s/____________________________4/8/05___________

Jack MartinDate

Chief Financial Officer

US Department of Education

_________________/s/__________________________4/18/05__________

Theresa S. ShawDate

Chief Operating Officer

Federal Student Aid

ATTACHMENT A

SERVICE-LEVEL AGREEMENTS

Contracts and Acquisitions Management (CAM)

### 1.   Approvals by the Chief Acquisition Officer/Senior Procurement Executive (CAO/SPE) for the following FSA requests will be received within five (5) business days after receipt of all necessary documentation:

· Non-competitive actions;

· Deviations; and

· Departmental Contract Review Board (CRB) review for agency interest acquisitions.

2.   The CAO/SPE will update EDAR to reflect changes referenced in the Services Acquisition Reform Act (SARA), Federal Acquisition Service Act (FASA), Federal Acquisition Reform Act (FARA), Part 15 rewrite, and PBO legislation, as well as, agency procedures that are referenced in the FAR within six (6) months of this agreement and will publish these procedures for consistent procurement processes throughout the Department.  (See list of agency procedures).

3.   The CAO/SPE will define Department standards for senior acquisition leaders within six (6) months of this agreement.

4.   The CAO/SPE will establish standard procedures for capturing past performance in EDCAPS within one (1) month of this agreement.

5.   The CAO/SPE will establish and publish training standards for Contracting Officer’s Representatives, Contracting Officers, Contract Specialists, in addition to training for other members of the acquisition workforce, e.g., program managers, in procurement functions within two (2) months of this agreement.

6.   The CAO/SPE will update procedures in the ACS Departmental Directive OCFO:2-107, Acquisition Planning, by June, 2005.

7.   The CAO/SPE will provide a procurement management information system for workload management, acquisition schedule forecast, and to manage other procurement related functions as defined jointly by the SPE and FSA by July 2005.

8.   The CAO/SPE jointly with FSA will establish quarterly meetings to discuss procurement activities occurring within the two organizations such as, new Department acquisition policies, procedures and regulations, and new standards for reporting.

 9.   The CAO/SPE will publish standards for conduct and procedures for the Department’s CRB and contract management reviews within one (1) month of this agreement.

10.  The CAO/SPE will provide standards and policies for developing and issuing Interagency Agreements.

Federal Student Aid (FSA)

1.    FSA will provide input into the following procurement systems and Department reports:

· Input for the Federal Procurement Data System (FPDS) at time of contract award;

· Input for annual procurement plans pursuant to the Department’s policy;

· Input into the Department’s past performance database (EDCAPS), semi-annually or annually NLT 11/30 and within sixty (60) days of contract completion;

· Input for EDCAPS for solicitations and contract awards as documents are created; and

· Vendor Subcontract Plan Reports (SF295/294) pursuant to the Department’s policy.

2.   FSA will do contract closeouts pursuant to the Department’s policy.

3.  FSA will adhere to the Department’s policy for developing and obligating all awards in EDCAPS.

4.   FSA will submit monthly contract activity reports to the CAO/SPE no later than 5 business days after the closing of the reporting period. 

�  Due to the formal position of the CFO including the responsibilities of the CAO, all references to the CFO are synonymous with CAO.

� Contract Management Review (CMR) - periodic (typically, twice annually) assessment by the Procurement Executive of each Department Procuring Activity’s processes, procedures, and output.  Focus is on ensuring successful procurement practices by identifying systemic causes of deficiencies and recommending corrective actions.