PGI 217.7601 Provisioning.

(1) Definitions. As used in this section—

(i) “Provisioning” means the process of determining and acquiring the range and quantity of spare

and repair parts, and support and test equipment required to operate and maintain an end item for

an initial period of service.

(ii) “Provisioned item” means any item selected under provisioning procedures.

(iii) “Provisioned items order” means an undefinitized order issued under a contract that includes

the Government's requirements for provisioned items. (Provisioned items with firm prices are

acquired by supplemental agreement or by separate contract.)

(iv) “Provisioning activity” means the organization responsible for selecting and determining

requirements for provisioned items.

(v) “Provisioning requirements statement” means the contractual document listing the specific

provisioning requirements for that contract. The statement normally includes—

(A) Instructions, such as the provisioning method to be used;

(B) The extent of provisioning technical documentation and data needed (including administrative

requirements for submission and distribution);

(C) The type and location of provisioning conferences;

(D) Sample article requirements;

(E) The delivery schedule;

(F) Packaging and marking requirements for provisioned items; and

(G) Requirements for provisioning screening.

(vi) “Provisioning technical documentation” means the data needed for the identification, selection,

determination of initial requirements, and cataloging of support items to be acquired through the

provisioning process. It includes such things as provisioning lists and logistics support analysis

summaries. Descriptive data such as drawings and photographs are referred to as “supplementary

provisioning technical documentation.”

(2) Contractual provisions. Contracts containing provisioning requirements shall—

(i) List the provisioning functions to be performed and who will perform them;

(ii) Include a provisioning requirements statement or specify a time limit for its incorporation into

the contract by modification (revisions to the provisioning requirements statement shall also be

incorporated by contract modification);

(iii) Include on the DD Form 1423, Contract Data Requirements List, a schedule for delivery of

provisioning technical documentation, or provide for the schedule to be incorporated later by

contract modification;
(iv) Require flowdown of the appropriate provisioning technical documentation requirement when

the subcontractor prepares the documentation;

(v) Specify any applicable procedures for interim release by the contractor of long lead time items,

and include ordering and funding instructions for such items. As a minimum, the instructions shall

require the contractor to advise the contracting officer or provisioning activity at least 30 days

before release of the items, their estimated costs, and the effective date of release;

(vi) Specify the activity designated to issue provisioned items orders, i.e., contracting officer,

provisioning activity, or administrative contracting officer. When it is expected that more than one

activity will place provisioned items orders against the contract, state the requirements for

provisioned items of each activity as separate contract line items;

(vii) Provide a definitization schedule (normally 120 days after receipt of the contractor's proposal)

and a timeframe for the contractor to furnish price proposals for provisioned items orders (normally

60 days after order issuance);

(viii) Specify exhibit identifiers applicable to the contract line/subline items; and

(ix) Include procedures for processing changes (including cancellations) in quantities of items

ordered.

(3) Issuance of provisioned items orders.

(i) Use the Standard Form 30, Amendment of Solicitation/Modification of Contract, to—

(A) Issue provisioned items orders;

(B) Decrease or cancel quantities of items ordered; and

(C) Cover the contractor's interim release of long lead items when the contracting officer approves

the release (if the release is not approved, the contracting officer shall notify the contractor to

cancel the items).

(ii) Include in Block 14 of the Standard Form 30—

(A) The term PROVISIONED ITEMS ORDER in capital letters and underlined; and

(B) The appropriate exhibit identifier(s) for all attached exhibits.

(iii) Obligate funds to cover the estimated price of the items being ordered. Show individual

estimated prices for each exhibit line item on the accounting and payment office copies.

(iv) Distribution is the same as for the basic contract (see FAR Subpart 4.2). However, if the exhibits

are voluminous, the contracting officer may restrict distribution of the exhibits to the contract

administration office.

(v) See DFARS Subpart 217.74 for additional guidance and limitations on the use of undefinitized

contract actions.

(4) Provisioning conferences. When requested by the contracting officer or provisioning activity, the

contract administration office shall assist the contracting officer or provisioning activity in

scheduling and determining the types of provisioning conferences required, e.g., guidance meetings,

long lead time items conferences, source coding meetings.
(5) Contract administration office monitoring.

The contract administration office (CAO) shall monitor contracts containing provisioning

requirements. As a minimum the CAO shall—

(i) Ensure that the contractor understands the provisioning requirements;

(ii) Review contractor progress in the preparation of provisioning technical documentation and, if

requested by the contracting officer or provisioning activity, inspect it for format and content;

(iii) Ensure the prime contractor flows down provisioning requirements to any subcontractor

charged with preparation of documentation;

(iv) Advise the contracting office or provisioning activity of delays in delivery of provisioning

technical documentation or other related problems (see FAR Subpart 42.11);

(v) Ensure contractor compliance with contract requirements concerning the assignment of national

stock numbers; and

(vi) Ensure that the contractor complies with contractual criteria for release of long lead time items.

(6) Negotiating and executing supplemental agreements.

(i) The administrative contracting officer (ACO) shall definitize provisioned items orders within the

prescribed schedule.

(ii) If the provisioned items order does not contain a delivery date, or the contractor cannot meet the

date, the ACO shall coordinate the negotiated schedule with the contracting officer or provisioning

activity before execution of the supplemental agreement.

(iii) The ACO shall maintain records of provisioned items orders showing—

(A) The adequacy of obligated funds;

(B) Due dates for price proposals; and

(C) Actions taken to obtain additional funds or to deobligate excess funds.

Parent topic: PGI 217.76 -CONTRACTS WITH PROVISIONING REQUIREMENTS