Part 208 - REQUIRED SOURCES OF

SUPPLIES AND SERVICES

208.002 Priorities for use of mandatory Government supply sources.

Subpart 208.4 - FEDERAL SUPPLY SCHEDULES

208.404 Use of Federal Supply Schedules.

208.405 Ordering procedures for Federal Supply Schedules.

208.405-6 Limiting sources.

208.406 Ordering activity responsibilities.

208.406-1 Order placement.

Subpart 208.6 - ACQUISITION FROM FEDERAL PRISON INDUSTRIES, INC.

208.602 Reserved

208.602-70 Acquisition of items for which FPI has a significant market share.

208.606 Evaluating FPI performance.

Subpart 208.7 - ACQUISITION FROM NONPROFIT AGENCIES EMPLOYING PEOPLE WHO ARE

BLIND OR SEVERELY DISABLED

208.705 Procedures.

Subpart 208.70 - COORDINATED ACQUISITION

208.7000 Scope of subpart.

208.7001 Definitions.

208.7002 Assignment authority.

208.7002-1 Acquiring department responsibilities.

208.7002-2 Requiring department responsibilities.

208.7003 Applicability.

208.7003-1 Assignments under integrated materiel management (IMM).

208.7003-2 Assignments under coordinated acquisition.

208.7004 Procedures.

208.7005 Military interdepartmental purchase requests.
208.7006 Coordinated acquisition assignments.

Subpart 208.71 - ACQUISITION FOR NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

(NASA)

208.7100 Authorization.

208.7101 Policy.

208.7102 Procedures.

Subpart 208.72 - Reserved

Subpart 208.73 - USE OF GOVERNMENT-OWNED PRECIOUS METALS

208.7301 Definitions.

208.7302 Policy.

208.7303 Procedures.

208.7304 Refined precious metals.

208.7305 Contract clause.

Subpart 208.74 - ENTERPRISE SOFTWARE AGREEMENTS

208.7400 Scope of subpart.

208.7401 Definitions.

208.7402 General.

208.7403 Acquisition procedures.

Parent topic: Defense Federal Acquisition Regulation

208.002 Priorities for use of mandatory Government supply

sources.

(a)(1) Supplies.

(i) See the guidance at PGI 208.002(a)(1)(i) to obtain information on available items in DoD’s

property inventories.

(v) See subpart 208.70, Coordinated Acquisition, and subpart 208.74, Enterprise Software

Agreements.

Subpart 208.4 - FEDERAL SUPPLY SCHEDULES
208.404 Use of Federal Supply Schedules.

See DoD Class Deviation 2014-O0011- Determination of Fair and Reasonable Prices When Using

Federal Supply Schedule Contracts, dated March 13, 2014. Effective immediately, contracting

officers shall comply with the following policy, in lieu of FAR 8.404(d), Pricing, when using Federal

Supply Schedules. This class deviation remains in effect until incorporated in the DFARS or

otherwise rescinded.

(a)(i) If only one offer is received in response to an order exceeding the simplified acquisition

threshold that is placed on a competitive basis, the procedures at 215.371 apply.

(ii) Departments and agencies shall comply with the review, approval, and reporting requirements

established in accordance with subpart 217.7 when placing orders for supplies or services in

amounts exceeding the simplified acquisition threshold.

(iii) When a schedule lists both foreign and domestic items that will meet the needs of the requiring

activity, the ordering office must apply the procedures of part 225 and FAR part 25, Foreign

Acquisition. When purchase of an item of foreign origin is specifically required, the requiring activity

must furnish the ordering office sufficient information to permit the determinations required by part

225 and FAR part 25 to be made.

(iv) Use the provisions at 252.215-7007, Notice of Intent to Resolicit, and 252.215-7008, Only One

Offer, as prescribed at 215.371-6 and 215.408(3), respectively.

208.405 Ordering procedures for Federal Supply Schedules.

(1) Include an evaluation factor regarding supply chain risk (see subpart 239.73) when acquiring

information technology, whether as a service or as a supply, that is a covered system, is a part of a

covered system, or is in support of a covered system, as defined in 239.7301.

(2) See 215.101-2-70 for the limitations and prohibitions on the use of the lowest price technically

acceptable source selection process, which are applicable to orders placed under Federal Supply

Schedules.

(3) See 217.7801 for the prohibition on the use of reverse auctions for personal protective

equipment and aviation critical safety items.

(4) See 204.7603 for procedures on the required use of the Supplier Performance Risk System

(SPRS) risk assessments.

(i) The contracting officer shall ensure SPRS assessments of price risk and supplier risk are

considered as a part of the award decision.

(ii) When placing an order with a schedule contractor for an end product identified by a material

identifier that is available as described at 204.7603, and item risk was not previously considered

during award of the schedule contract, the contracting officer shall also consider SPRS assessments

of item risk in the award decision.

(iii) Use the provision at 252.204-7024, Notice on the Use of the Supplier Performance Risk System,

as prescribed in 204.7604 to the extent permitted by the Federal Supply Schedule.
208.405-6 Limiting sources.

For an order or blanket purchase agreement (BPA) exceeding the simplified acquisition threshold

that is a follow-on to an order or BPA for the same supply or service previously issued based on a

limiting sources justification citing the authority at FAR 8.405-6(a)(1)(i)(B) or (C), follow the

procedures at PGI 208.405-6 .

208.406 Ordering activity responsibilities.

208.406-1 Order placement.

Follow the procedures at PGI 208.406-1 when ordering from schedules.

Subpart 208.6 - ACQUISITION FROM FEDERAL PRISON

INDUSTRIES, INC.

208.602 Reserved

208.602-70 Acquisition of items for which FPI has a significant market share.

(a) Scope. This section implements 10 U.S.C. 3905.

(b) Definition. “Item for which FPI has a significant market share,” as used in this subsection, means

an item for which FPI’s share of the DoD market for the federal supply class including that item is

greater than 5 percent, as determined by DoD in consultation with the Office of Federal

Procurement Policy. A list of the federal supply classes of items for which FPI has a significant

market share is maintained at

https://www.acq.osd.mil/asda/dpc/cp/policy/other-policy-areas.html#fpi .

(c) Policy.

(1) When acquiring an item for which FPI has a significant market share—

(i) Acquire the item using—

(A) Competitive procedures (e.g., the procedures in FAR 6.102, the set-aside procedures in FAR

Subpart 19.5, or competition conducted in accordance with FAR Part 13); or

(B) The fair opportunity procedures in FAR 16.505, if placing an order under a multiple award

delivery-order contract; and

(ii) Include FPI in the solicitation process, consider a timely offer from FPI, and make an award in

accordance with the policy at FAR 8.602(a)(4)(ii) through (v).

(2) When acquiring an item for which FPI does not have a significant market share, acquire the item

in accordance with the policy at FAR 8.602.
208.606 Evaluating FPI performance.

See DoD Class Deviation 2013-O0018, Past Performance Evaluation Requirements, issued on

September 24, 2013. This class deviation requires past performance reporting for contracts awarded

under FAR 8.6, Acquisition from Federal Prison Industries, Inc., when the thresholds in this

deviation are exceeded. This deviation is effective until incorporated in the DFARS or rescinded.

Subpart 208.7 - ACQUISITION FROM NONPROFIT

AGENCIES EMPLOYING PEOPLE WHO ARE BLIND OR

SEVERELY DISABLED

208.705 Procedures.

See DoD Class Deviation 2013-O0018, Past Performance Evaluation Thresholds and Reporting

Requirements, issued on September 24, 2013. This class deviation requires past performance

reporting for contracts awarded under FAR subpart 8.7, Acquisition from Nonprofit Agencies

Employing People Who are Blind or Severely Handicapped, when the thresholds in this deviation are

exceeded. This deviation is effective until incorporated in the DFARS or rescinded.

Follow the procedures at PGI 208.705 when placing orders with central nonprofit agencies.

Subpart 208.70 - COORDINATED ACQUISITION

208.7000 Scope of subpart.

This subpart prescribes policy and procedures for acquisition of items for which contracting

responsibility is assigned to one or more of the departments/agencies or the General Services

Administration. Contracting responsibility is assigned through—

(a) The Coordinated Acquisition Program (commodity assignments are listed in PGI 208.7006 ); or

(b) The Integrated Materiel Management Program (assignments are in DoD 4140.26-M, Defense

Integrated Materiel Management Manual for Consumable Items).

208.7001 Definitions.

For purposes of this subpart—

“Acquiring department” means the department, agency, or General Services Administration which

has contracting responsibility under the Coordinated Acquisition Program.

“Integrated materiel management” means assignment of acquisition management responsibility to

one department, agency, or the General Service Administration for all of DoD's requirements for the

assigned item. Acquisition management normally includes computing requirements, funding,
budgeting, storing, issuing, cataloging, standardizing, and contracting functions.

“Requiring department” means the department or agency which has the requirement for an item.

208.7002 Assignment authority.

(a) Under the DoD Coordinated Acquisition Program, contracting responsibility for certain

commodities is assigned to a single department, agency, or the General Services Administration

(GSA). Commodity assignments are made—

(1) To the departments and agencies, by the Deputy Assistant Secretary of Defense (Logistics);

(2) To GSA, through agreement with GSA, by the Deputy Assistant Secretary of Defense (Logistics);

(3) Outside the contiguous United States, by the Unified Commanders; and

(4) For acquisitions to be made in the contiguous United States for commodities not assigned under

paragraphs (a)(1), (2), or (3) of this section, by agreement of agency heads (10 U.S.C. 3065).

(i) Agreement may be on either a one-time or a continuing basis. The submission of a military

interdepartmental purchase request (MIPR) by a requiring activity and its acceptance by the

contracting activity of another department, even though based on an oral communication,

constitutes a one-time agreement.

(ii) Consider repetitive delegated acquisition responsibilities for coordinated acquisition assignment.

If not considered suitable for coordinated acquisition assignment, formalize continuing agreements

and distribute them to all activities concerned.

(b) Under the Integrated Materiel Management Program, assignments are made by the Deputy

Assistant Secretary of Defense (Logistics)—

(1) To the departments and agencies; and

(2) To GSA, through agreement with GSA.

208.7002-1 Acquiring department responsibilities.

See PGI 208.7002-1 for the acquiring department’s responsibilities.

208.7002-2 Requiring department responsibilities.

See PGI 208.7002-2 for the requiring department’s responsibilities.

208.7003 Applicability.
208.7003-1 Assignments under integrated materiel management (IMM).

(a) Acquire all items assigned for IMM from the IMM manager except—

(1) Items purchased under circumstances of unusual and compelling urgency as defined in FAR

6.302-2. After such a purchase is made, the requiring activity must send one copy of the contract

and a statement of the emergency to the IMM manager;

(2) Items for which the IMM manager assigns a supply system code for local purchase or otherwise

grants authority to purchase locally; or

(3) When purchase by the requiring activity is in the best interest of the Government in terms of the

combination of quality, timeliness, and cost that best meets the requirement. This exception does not

apply to items—

(i) Critical to the safe operation of a weapon system;

(ii) With special security characteristics; or

(iii) Which are dangerous (e.g., explosives, munitions).

(b) Follow the procedures at PGI 208.7003-1 (b) when an item assigned for IMM is to be acquired by

the requiring department in accordance with paragraph (a)(3) of this subsection.

208.7003-2 Assignments under coordinated acquisition.

Requiring departments must submit to the acquiring department all contracting requirements for

items assigned for coordinated acquisition, except—

(a) Items obtained through the sources in FAR 8.002(a)(1)(i) through (vii);

(b) Items obtained under 208.7003-1 (a);

(c) Requirements not in excess of the simplified acquisition threshold in FAR Part 2, when

contracting by the requiring department is in the best interest of the Government;

(d) In an emergency. When an emergency purchase is made, the requiring department must send

one copy of the contract and a statement of the emergency to the contracting activity of the

acquiring department;

(e) Requirements for which the acquiring department's contracting activity delegates contracting

authority to the requiring department;

(f) Items in a research and development stage (as described in FAR Part 35). Under this exception,

the military departments may contract for research and development requirements, including

quantities for testing purposes and items undergoing in-service evaluation (not yet in actual

production, but beyond prototype). Generally, this exception applies only when research and

development funds are used.

(g) Items peculiar to nuclear ordnance material where design characteristics or test-inspection

requirements are controlled by the Department of Energy (DoE) or by DoD to ensure reliability of
nuclear weapons.

(1) This exception applies to all items designed for and peculiar to nuclear ordnance regardless of

agency control, or to any item which requires test or inspection conducted or controlled by DoE or

DoD.

(2) This exception does not cover items used for both nuclear ordnance and other purposes if the

items are not subject to the special testing procedures.

(h) Items to be acquired under FAR 6.302-6 (national security requires limitation of sources);

(i) Items to be acquired under FAR 6.302-1 (supplies available only from the original source for

follow-on contract);

(j) Items directly related to a major system and which are design controlled by and acquired from

either the system manufacturer or a manufacturer of a major subsystem;

(k) Items subject to rapid design changes, or to continuous redesign or modification during the

production and/or operational use phases, which require continual contact between industry and the

requiring department to ensure that the item meets the requirements:

(1) This exception permits the requiring department to contract for items of highly unstable design.

For use of this exception, it must be clearly impractical, both technically and contractually, to refer

the acquisition to the acquiring department. Anticipation that contracting by negotiation will be

appropriate, or that a number of design changes may occur during contract performance is not in

itself sufficient reason for using this exception.

(2) This exception also applies to items requiring compatibility testing, provided such testing

requires continual contact between industry and the requiring department;

(l) Containers acquired only with items for which they are designed;

(m) One-time buy of a noncataloged item.

(1) This exception permits the requiring departments to contract for a nonrecurring requirement for

a noncataloged item. This exception could cover a part or component for a prototype which may be

stock numbered at a later date.

(2) This exception does not permit acquisitions of recurring requirements for an item, based solely

on the fact that the item is not stock numbered, nor may it be used to acquire items which have only

slightly different characteristics than previously cataloged items.

208.7004 Procedures.

Follow the procedures at PGI 208.7004 for processing coordinated acquisition requirements.

208.7005 Military interdepartmental purchase requests.

Follow the procedures at—
(a) PGI 253.208-1 when using DD Form 448, Military Interdepartmental Purchase Request; and

(b) PGI 253.208-2 when using DD Form 448-2, Acceptance of MIPR.

208.7006 Coordinated acquisition assignments.

See PGI 208.7006 for coordinated acquisition assignments.

Subpart 208.71 - ACQUISITION FOR NATIONAL

AERONAUTICS AND SPACE ADMINISTRATION (NASA)

208.7100 Authorization.

NASA is authorized by Pub. L. 85-568 to use the acquisition services, personnel, equipment, and

facilities of DoD departments and agencies with their consent, with or without reimbursement, and

on a similar basis to cooperate with the departments/ agencies in the use of acquisition services,

equipment, and facilities.

208.7101 Policy.

Departments and agencies shall cooperate fully with NASA in making acquisition services,

equipment, personnel, and facilities available on the basis of mutual agreement.

208.7102 Procedures.

Follow the procedures at PGI 208.7102 when contracting or performing services for NASA.

Subpart 208.72 - Reserved

Subpart 208.73 - USE OF GOVERNMENT-OWNED PRECIOUS

METALS

208.7301 Definitions.

As used in this subpart—

“Defense Supply Center, Philadelphia (DSCP)” means the Defense Logistics Agency field activity

located at 700 Robbins Avenue, Philadelphia, PA 19111-5096, which is the assigned commodity

integrated material manager for refined precious metals and is responsible for the storage and issue

of such material.
“Refined precious metal” means recovered silver, gold, platinum, palladium, iridium, rhodium, or

ruthenium, in bullion, granulation or sponge form, which has been purified to at least .999

percentage of fineness.

208.7302 Policy.

DoD policy is for maximum participation in the Precious Metals Recovery Program. DoD components

shall furnish recovered precious metals contained in the DSCP inventory to production contractors

rather than use contractor-furnished precious metals whenever the contracting officer determines it

to be in the Government's best interest.

208.7303 Procedures.

Follow the procedures at PGI 208.7303 for use of the Precious Metals Recovery Program.

208.7304 Refined precious metals.

See PGI 208.7304 for a list of refined precious metals managed by DSCP.

208.7305 Contract clause.

(a) Use the clause at 252.208-7000 , Intent to Furnish Precious Metals as Government-Furnished

Material, in all solicitations and contracts except—

(1) When the contracting officer has determined that the required precious metals are not available

from DSCP;

(2) When the contracting officer knows that the items being acquired do not require precious metals

in their manufacture; or

(3) For acquisitions at or below the simplified acquisition threshold.

(b) To make the determination in paragraph (a)(1) of this section, the contracting officer shall

consult with the end item inventory manager and comply with the procedures in Chapter 11, DoD

4160.21-M, Defense Materiel Disposition Manual.

Subpart 208.74 - ENTERPRISE SOFTWARE AGREEMENTS

208.7400 Scope of subpart.

This subpart prescribes policy and procedures for acquisition of commercial software and software

maintenance, including software and software maintenance that is acquired—

(a) As part of a system or system upgrade, where practicable;
(b) Under a service contract;

(c) Under a contract or agreement administered by another agency (e.g., under an interagency

agreement);

(d) Under a Federal Supply Schedule contract or blanket purchase agreement established in

accordance with FAR 8.405; or

(e) By a contractor that is authorized to order from a Government supply source pursuant to FAR

51.101.

208.7401 Definitions.

As used in this subpart—

“Enterprise software agreement” means an agreement or a contract that is used to acquire

designated commercial software or related commercial software services such as software

maintenance.

“Enterprise Software Initiative” means an initiative led by the DoD Chief Information Officer to

develop processes for DoD-wide software asset management.

“Software maintenance” means services normally provided by a software company as standard

services at established catalog or market prices, e.g., the right to receive and use upgraded versions

of software, updates, and revisions.

208.7402 General.

(a) Departments and agencies shall fulfill requirements for commercial software and commercial

software services, such as software maintenance, in accordance with the DoD Enterprise Software

Initiative (ESI) (see https://www.esi.mil/). ESI promotes the use of enterprise software agreements

(ESAs) with contractors that allow DoD to obtain favorable terms and pricing for commercial

software and commercial software services. ESI does not dictate the products or services to be

acquired.

(b) Include an evaluation factor regarding supply chain risk (see subpart 239.73) when acquiring

information technology, whether as a service or as a supply, that is a covered system, is a part of a

covered system, or is in support of a covered system, as defined in 239.7301 .

208.7403 Acquisition procedures.

Follow the procedures at PGI 208.7403 when acquiring commercial software and related services.