Professional Documents
Culture Documents
Contingency Contracting Handbook
Contingency Contracting Handbook
Working Group 1
Capt John Travieso Maj Larry Herring Ms Mary Clare Peate
Lt Col Samuel Harbin TSgt Jennifer George Prof Cory Yoder
Ms Lynn Harper Lt Col Richard Ward
Lt Col Ann Christianson LTC Vaneada Terrell
LTC John Coombs Capt Mark Harris
CDR Pat Ingram Mr Lou Gaudio
Working Group 2
Col Michelle Obata Ms Esther Fischer COL John Lazar
Ms Lynn Connors Mr Dave Johnson
Mr Bill Long SGM Ethan Jones
Ms Gail Foley LTC John Coombs
Contents
4 Handbook Use, Updates, and Replacement Questions
Introduction and
Foreword
6 Foreword
D
uring a deployment, contingency operation, or response to natural
disasters things can change in a hurry. One minute you find
yourself operating in a sustained operational environment and
the next deployed to a bare base
or in the field supporting disaster
relief operations. The challenges
you face may be very familiar or
unprecedented. There may be
little or no time to prepare and
you may have nothing but your
own wits to guide you. The
success of your mission may be
completely or partly dependent
upon your ability to solve
problems and think quickly.
Your job as a contingency
contracting officer (CCO) is to
locally acquire the items needed
to support the mission. In doing
Mr Shay Assad, Director of Defense so, you should be conscious of the
Procurement and Acquisition Policy fact that many foreign business
cultures expect kickbacks, finder’s fees, exchange of gifts, or other
gratuities that are illegal for US personnel to provide or accept. You should
always ensure ethics regulations are closely observed. As a CCO, you must
7 Foreword
Purpose
Our goal in producing this handbook is to provide a pocket-sized guide
to help you meet the needs of those whom you are supporting. This is
crucial to your success and that of the overall mission. No one can
remember verbatim all the training he or she has received, and that is where
this handbook will, hopefully, fill in the gaps. It is by no means a stand-
alone document and must be read together with the Federal Acquisition
Regulation, the Defense Federal Acquisition Regulation Supplement, and
Operational Contract Support in Joint Operations (Joint Publication
4-10). The Defense Contingency Contracting Handbook provides a
consolidated source of information for CCOs conducting contingency
contracting operations in a Joint environment. The hard-copy book is
intended to be used in conjunction with the attached DVD and is available
at the Defense Procurement and Acquisition Policy (DPAP) Web site at
http://www.acq.osd.mil/dpap/pacc/cc/jcchb/, under the contingency
contracting tab. Both the handbook and DVD shall be used to train at
home station, for reference and to train while deployed. The handbook
and attached DVD provide useful tools, templates, and training which
enable the CCO to be effective in any contracting environment.
Authority
The Defense Contingency Contracting Handbook is authorized by the
Director, Defense Procurement and Acquisition Policy. It was prepared
Mr Shay Assad
Director of Defense Procurement
and Acquisition Policy
CHAPTER Chapter 1
CONTENTS Ethics, Fraud Indicators, Standards
of Conduct, and Procurement Integrity
Key Points
............. 10
Introduction
............. 10
Tenets of
Government
Service
............. 11
Conflict of
Interest
............. 13
Gift Prohibition
............. 14
Reporting Gifts
............. 15
Combat
Trafficking in
Persons (CTIP)
............. 16
Identifying
Fraud
Indicators
............. 17
Interacting with
Contractor
Employees
............. 22
Checks and
Balances
............. 23
Ethics
10 Chapter 1
Key Points
• Ethics are vitally important, particularly in the contingency
environment because of the cultural differences.
• Strictly avoid any conflict of interest or apparent conflict of interest.
• You must not forget your duty is to the United States (US)
government, Department of Defense (DoD), and your customer.
• You may not accept any gift because of your official position and
you may not accept any gift from a contractor, a potential
contractor, or a partnering contractor.
• There are very limited exceptions to the gift prohibition.
Unavoidable violations must be documented and reported to
counsel immediately.
• DoD will not tolerate any form of human trafficking or forced labor
by any of its contractors or contractor personnel.
• If you are ever in doubt, contact your legal advisor and notify your
chain of command.
Introduction
T
he need to maintain high ethical standards and procurement
integrity is always important for DoD contracting officers.
However, this requirement can be even more challenging in a
deployed environment where the expectations and business habits of the
suppliers with whom you will be dealing may be affected by varying
cultural, political, and economic conditions.
Chapter 1
Ethics, Fraud Indicators, Standards of
Conduct, and Procurement Integrity
The pressures to meet mission requirements can be even more intense
in a contingency contracting environment. If you are not vigilant, these
pressures can cloud your judgment as to the right way to conduct yourself
and represent the US and DoD. Two of your biggest responsibilities as a
contingency contracting officer (CCO) are as follows:
• You must place loyalty to the US Constitution and the law above
your private gain.
• You shall not hold financial interests that conflict with your official
duties.
One of the most basic ethical principles is that you may not take official
action on a matter that may impact your personal interests. Thus, the ethics
rule provides that an employee is prohibited (by statute) from participating
personally and substantially in an official capacity in any particular matter
in which he or she (or any person whose interests are imputed to him or
her) has a financial interest if the matter will have a direct and predictable
effect on that interest. In other words:
• If you are officially involved in a matter that could affect your own
financial interests, or those of someone you are related to or
associated with, you must remove yourself from acting on that
matter in your official capacity.
• If your official involvement creates even the appearance of a
conflict of interest to a reasonable person, you should remove
yourself from that matter or, at a minimum, seek legal advice.
• It is one of the very few areas of the law where you do not have to be
guilty to find yourself in trouble—even looking guilty can land you
in trouble—appearances count.
• When conflicts of interest arise, there are conventional ways to
handle them, with advice from your ethics counselor.
• Disqualification or recusal (stepping aside from decisions that
could affect your financial interests)
• Waivers of disqualification (continuing your involvement, but
only with full disclosure and permission from agency officials)
• Divestiture (removing the financial interest that creates the
conflict, which often involves selling the financial interest at
issue)
• You may accept gifts from a prohibited source with a face value up
to a total of $50 per calendar year, but any gifts on a single occasion
must not exceed $20 in value. Additional details and hypothetical
scenarios can be found in 5 CFR 2635.204(a). Further restrictions
may be implemented by deployed commanders.
• When in a foreign area you “may accept food, refreshments, or
entertainment in the course of a breakfast, luncheon, dinner, or other
meeting or event” if all of the following conditions are met: (5 CFR
2635.204(i)(1)-(4))
• The market value, converted to US dollars, does not exceed the
per diem rate for the foreign area specified in the Department of
State’s maximum per diem allowances for foreign areas. (http://
aoprals.state.gov/web920/per_diem.asp)
Chapter 1
Ethics, Fraud Indicators, Standards of
Conduct, and Procurement Integrity
• There is participation in the meeting or event by non-US
citizens or by representatives of foreign governments or other
foreign entities.
• Attendance at the meeting or event is part of the employee’s
official duties.
• The gift of meals, refreshments, or entertainment is from a person
other than a foreign government.
The Anti-Kickback Act of 1986 “prohibits actual or attempted kickback
payments or offers to provide kickbacks, which include any money, fees,
commission, credit, gift, gratuity, thing of value, or compensation of any
kind, to include obtaining or rewarding favorable treatment. “Any person
who knowingly and willfully engages in conduct prohibited [by the Anti-
Kickback Act] shall be imprisoned for not more than 10 years or shall be
subject to a fine … or both.” (41 United States Code [USC] §54; Article
92, 134 of the Uniform Code of Military Justice [UCMJ]; US Department
of Justice Criminal Resource Manual)
You must never solicit gifts of any type, regardless of their nature or
dollar value. You must understand that a bribe occurs when someone
“directly or indirectly gives, offers, or promises anything of value to any
public official, former public official, or person selected to be a public
official, for or because of any official act performed or to be performed by
such public official.” Giving or accepting a bribe is a crime that is
punishable by a fine, imprisonment, or both. (18 USC §201; Article 92,
134 UCMJ)
Reporting of Gifts
As a CCO, you may encounter situations in which local vendors are willing
to supply escorts as a form of gratuity, kickback, bribery, or compensation.
Sex trafficking is defined as “the recruitment, harboring, transportation,
provision, or obtaining of a person for the purpose of a commercial sex
act.” (48 CFR 22.1702)
There are specific implications for the CCO. FAR Subpart 22.17,
Defense Federal Acquisition Regulation Supplement (DFARS) Subpart
Chapter 1
Ethics, Fraud Indicators, Standards of
Conduct, and Procurement Integrity
222.17, and DFARS Procedures Guidance and Information (PGI) 222.17,
provide policy and guidance applicable to all contracts. If faced with a
situation involving sex trafficking, CCOs should immediately inform his
or her chain of command and legal counsel. CCOs should take immediate
action to impose suitable remedies, including termination, on contractors
that support or promote trafficking or fail to monitor the conduct of their
employees and subcontractors with regard to trafficking in persons.
The US government does not tolerate any form of trafficking in persons
or forced labor. DoD PGI 222.1703(ii) states, “trafficking includes
involuntary servitude and debt bondage. These trafficking practices will
not be tolerated in DoD contractor organizations or their subcontractors
in supporting DoD operations.”
It is the contractor’s responsibility to know of its employees’ activities,
and to comply with CTIP US policy. FAR 52.222-50, Combat Trafficking
in Persons, is required in all solicitations and contracts.
purchase card holders during their initial and refresher training classes.
Training our representatives on the front lines will increase the number
of trained sensors to detect and prevent fraud.
Common Fraud Offenses
• Bribery, kickbacks, and gratuities.
• Making or using a false statement.
• Falsely making or altering a document.
• Making or presenting a false claim.
• Companies conducting business under several names.
• Collusive bidding (bid rigging).
• Conflicts of interest.
• Conspiracy to defraud.
• Disclosure of proprietary data or source selection sensitive
information.
• Insufficient delivery of contracted items.
• Intentional failure to meet specifications. Note that not all failures
to meet contract specifications constitute a crime. A CCO should
discuss any suspected contract fraud with legal support. For
example, a contractor uses one coat of paint instead of two; uses
watered loads of concrete; installs inferior memory chips in
computers; uses inferior automobile replacement parts.
Common Fraud Schemes
• Rigged specifications.
Chapter 1
Ethics, Fraud Indicators, Standards of
Conduct, and Procurement Integrity
• The requesting organization tailors specifications to meet the
qualifications of one particular company, supplier, or product.
• Unvarying patterns in small purchases.
• Unvarying patterns in small purchases may indicate that a buyer
is awarding contracts to favored vendors without soliciting
competitive offers from additional firms. The buyer may also be
entering fictitious competitive quotations and consistently
awarding to a favored vendor at inflated prices.
• Splitting large requirements.
• Contracting or requiring activity personnel may be splitting
requirements into small purchase orders to avoid the scrutiny
required for larger dollar value contracts.
• Duplicate payment.
• A vendor submits the original voucher for payment, while the
purchaser, acting alone or in collusion with the vendor, collects
for the same item from the cash fund.
• Overstatement of shipment weights.
• Carriers may be defrauding the government by artificially
inflating the weight of a shipment. Possible methods include:
• Fuel Bumping. Getting the tare weight with less than a full tank
of gas and the gross weight with a full tank.
• Double Billing on Small Shipments (500 to 3,000 pounds).
Getting two tare weight tickets for the truck, picking up the two
small shipments, getting two gross weight tickets for the
combined weight of both shipments, and then submitting both
tickets for payment.
• False Weights. Paying the weight master to provide a false weight
ticket or having a supply of blank or false weight tickets. If blank
tickets are used, the weight will usually be handwritten rather
than printed.
1. Most of the information in this chapter was taken from the Defense Acquisition
University (DAU) “Contingency Contracting Refresher Module” and DAU CLM
049, “Procurement Fraud Indicators.” It has been supplemented with information
provided by the Office of Counsel for the Commandant of the Marine Corps
and the Air Force Logistics Management Agency.
2. Information was taken from the Air Force Center of Environmental Excellence
“Contracting Officer Representative’s Ethics Briefing.”
3. Information was taken from information produced by the Fraud Integrated
Process Team and the DoD Fraud, Waste, and Abuse Hotline trifold brochure.
Chapter 1 Notes
Ethics, Fraud Indicators, Standards of
Conduct, and Procurement Integrity
Chapter Acronyms
AFOSI – Air Force Office of Special Investigations
CCO – Contingency Contracting Officer
CID – US Army Criminal Investigation Command
COR – Contracting Officer Representative
CFR – Code of Federal Regulations
CTIP – Combat Trafficking in Persons
DAU – Defense Acquisition University
DCAA – Defense Contract Audit Agency
DCIS – Defense Criminal Investigative Service
DFARS – Defense Federal Acquisition Regulation Supplement
DoD – Department of Defense
FAR – Federal Acquisition Regulation
MFR – Memorandum for Record
NCIS – Navy Criminal Investigation Service
PIIN – Procurement Instrument Identification Number
PGI – Procedures, Guidance, and Information
QAE – Quality Ansurance Evaluator
UCMJ – Uniform Code of Military Justice
US – United States
USC – United States Code
Authorities and
Structure
28 Chapter 2
Introduction
C
ontingency contracting officers (CCO) must know and understand
their contracting authority and the organizational construct that
they are working in. This chapter discusses the CCO’s legal
authorities while distinguishing between command and contracting
authority. It further provides a general overview of contracting structure,
support organizational options, and the typical structure and staffing of
a Joint Theater Support Contracting Command. Some aspects of the
structure and staffing described could also be used in humanitarian and
disaster relief situations. (See also Chapter 9)
Contracting Structure
This section provides guidance for establishing a Joint, large-scale,
deployed OCONUS organization. The proposed structure should not be
considered as the only organizational structure, but rather viewed as a
template or example.
Head of Contracting Activity. The HCA, or SCO if delegated, is
responsible for oversight of contracting to ensure that it is compliant with
statute, regulation, and sound business practices. For a small scale
contingency in which the Service components are providing their own
contracting support, the HCA assignment will remain within the Service
channels. In large-scale contingencies in which a lead Service or Joint
theater support contracting command structure is required, DoD will assign
an agency as the DoD executive agent in accordance with Department of
Defense Directive 5101.1, DoD Executive Agent. The executive agent
assignment will generally be in conjunction with the designation of a
lead Service for common user logistics in accordance with Joint
Publication 4-07, Joint Tactics, Techniques, and Procedures for Common-
User Logistics During Joint Operations.
Senior Contracting Official. The SCO establishes policies and
procedures for developing, reviewing, and managing the contingency
contracting process. This includes:
• Maintain the highest degree of integrity; set the tone for the rest of
the office
• Know the mission (RCC Mission Brief)
• Tie effects of the contracts to the mission
• Engage with your customer
• Set priorities for requirements (per internal and external customers)
• Educate your customer
• Business advisor
• Develop vendor base
• Encourage contracting innovation while using sound business
judgment
• Manage continuity of your office
Note: See Defense Acquisition University offers CON 234, “Advanced
Contingency Contracting Course for the COCO.”
CCO Responsibilities. The purpose of the CCO is to acquire supplies
and services needed by the warfighter to support essential missions in
response to a crisis, contingency, or declaration of war.
To read more about CCO responsibilities consult the DVD.
The CCO has the following duties and responsibilities:
Joint Staff
The Joint Staff assists the Chairman of the Joint Chiefs of Staff (subject to
the authority, direction, and control of the Chairman of the Joint Chiefs
of Staff) and the other members of the Joint Chiefs of Staff in carrying out
their responsibilities.
J1—Manpower and Personnel Directorate of a Joint Staff. The Joint
theater support contracting command J1 performs personnel actions to
include working personnel assignments, Joint manning document-related
actions, awards, and ratings. The J1 generally would be a personnel officer
with no specific rank or contracting-related experience.
J2—Intelligence Directorate, J3—Operations Directorate, and J5—
Plans Directorate. A Joint theater support contracting command would
not normally need a separate J2 or J5 office. The J2/3/5 officer, normally
an O-5 with contracting experience, is responsible to assist the commander
and SCOs with synchronizing support to ongoing operations and planned
future operations. The J2/3/5 focus is on supporting the JFC commander’s
intent with effective and efficient contracting actions. If needed, the J2/
3/5 could also contain separate policy and contract compliance divisions.
Chapter Acronyms
CCO – Contingency Contracting Officer
CO – Contracting Officer
COCO – Chief of Contracting Office
COR – Contracting Officer’s Representative
DCAA – Defense Contract Audit Agency
DoD – Department of Defense
FAR – Federal Acquisition Regulation
FRAGO – Fragmentation Order
HCA – Head of Contracting Activity
JFC – Joint Force Commander
NCO – Noncommissioned Officer
OCONUS – Outside the Continental United States
POC – Point of Contact
RCC – Regional Contracting Center
RCO – Regional Contracting Office
SCO – Senior Contracting Official
US – United States
Contingency
Funding
40 Chapter 3
Introduction
C
ongress limits the authority of the Department of Defense (DoD)
and other executive agencies to use appropriated funds. This
chapter begins by discussing these limitations and types of
contingency contracting funding. It further discusses procedures on how
requirements are generated through the use of purchase requests and
contracting related boards.
Supplies.
The bona fide need for supplies normally exists when the government
actually will be able to use the items. Thus, a command would use a
currently available appropriation for computers needed and purchased
in the current FY. Conversely, commands may not use current year funds
for computers that are not needed until the next FY. Year-end spending
for computers that will be delivered within a reasonable time after the
new FY begins is proper; however, as long as a current need is documented.
Note that there are lead time and stock level exceptions to the general
rule governing purchases of supplies.
Services.
How does the application of the Bona Fide Needs Rule differ when services
cross FYs? The difference is based on whether the services are considered
severable or nonseverable. Severable services are services that are
continuing and recurring in nature such as lawn maintenance, janitorial
services, or security services. The benefit of the service is realized at the
time that services are provided, even if the contract has not been performed
to completion. Most base operations support services provided by a
contractor supporting a deployed unit would be considered severable.
Services are considered severable if they can be separated into
components that independently provide value to meet a customer’s needs.
10 USC §2410a permits funding a contract (or other agreement) for
severable services for up to 12 months using current appropriation when
the contract is executed, even if some services will be performed in the
subsequent fiscal year. Conversely, nonseverable services represent a
single undertaking that cannot be feasibly subdivided. If the services
produce a single or unified outcome, product, or report, the services are
considered nonseverable. Some examples include studies culminating
in the delivery of a final report, the overhaul of an engine, and painting a
building. Note that lead time exception can apply to start date of service
type contracts.
Chapter 3
Contingency Funding and Requirements Process
Construction.
Construction contracts obligated and awarded late in a FY (September)
must have a performance start within 90 days of award. For example, if a
contract was awarded on 15 September with that given FY funds,
performance must commence and invoices must be submitted by 13
December of the new FY as derived from DoD fiscal law. Typically,
commencement of work can be in the form of the contractor ordering
materials and delivering them to the government and the government
taking receipt (possession) of materials that will remain in the government’s
possession (contractors cannot store at their businesses), surveying land,
breaking ground, and other such functions. The key in determining what
is considered performance of work is to have the elements of work included
on a progress schedule that will serve as means to allocate a percentage of
work performed and invoiced.
Purpose
31 USC §1301(a), commonly referred to as the purpose statute, prohibits
spending money on objects other than those for which appropriations
were made. Funds must be expended for the purpose established by
Congress. There is a three-pronged test known as the Necessary Expense
Doctrine which states that expenditures must:
• Be Logically Related to the Appropriation. The expenditure must
be for a particular statutory purpose, or necessary and incident to
proper execution of the general purpose of the appropriation. A
necessary expense will contribute materially to the effective
accomplishment of an authorized function.
• Not be Prohibited by Law. The rationale that a certain expenditure
is necessary to carry out the mission of the agency is insufficient to
overcome a statutory prohibition. Also, agencies may presume that
restrictions in an appropriations act are effective only for the FY
covered unless the legislation clearly indicates its permanent
character.
Purchase Requests
This is the most important area for the customer. Investing the time to
provide contracting with an adequate purchase description can ensure
that contracting fulfills the customer’s needs in a timely manner.
Contracting activities and their customers will consider both technical
needs and business strategies when defining and specifying requirements.
CCOs must ensure specifications reflect only what is needed to meet the
requirements of the mission and the SOW, SOO, or PWS will not
unnecessarily restrict competition or innovation. Additionally,
commercial item descriptions will be used as much as practicable and
functional specifications will be used instead of detailed design
specifications whenever reasonable.
Purchase Descriptions. Purchase descriptions serve two purposes:
allows the buyer to determine what to buy and where; and allows the
vendor to quote properly and deliver the correct item. Adequate item
descriptions ensure that customers get what they need at the best value
possible. Keep in mind, commonly accepted stateside standards and
commercial practices are not the same as in contingency locations.
Item descriptions, specifications, and technical requirements should
always be clear and concise. Describe the requirement in sufficient detail
to leave no room for doubt. Ambiguous descriptions delay contracting
action and may lead to the purchase of the wrong product or service.
Chapter 3
Contingency Funding and Requirements Process
• What is it?
• What is it made of? (paper, wood, and so forth)
• What are its principal descriptive characteristics? (size, color, and
shape)
• What does it do? (holds, drives, connects, and so forth)
• What is it used for? (indicate its purpose)
• How is it used? (by itself, with other equipment, and so forth)
• Where is it used? (component part or a complete assembly)
Preparing a Purchase Description. A generic purchase description is
written in simple language, such as would be used in private purchases,
with one exception. Brand names are prohibited without separate written
justification. A generic description is the most desired, in that it clearly
identifies what is required, yet provides for the maximum competition
among available sources. The purchase description should clearly describe
the essential physical and functional characteristics of the item required.
It should include as many of the following characteristics as necessary to
express the minimum requirements of the government:
• Kind of material
• Electrical data, if any
• Dimensions
• Principles of operation
• Restrictive or significant environmental conditions
• If part of an assembly, the location within the assembly
• Essential operating conditions
• Special features, if any
• Intended use
• Operation to be performed
• Equipment with which the item is to be used
• Other requirements, as appropriate
If the customer cannot write an adequate purchase description, a less
desirable alternative exists by identifying a specific product followed by
the words “brand name” or “equal.”
Overly Restrictive Characteristics. A description that is too strict can
be just as undesirable as the opposite extreme. Whenever possible, a
description should allow tolerance. For example, if an item is required to
be painted, the color should allow for variances unless only one color is
acceptable. Likewise, tolerances should be allowed with other
characteristics such as weight, and size if possible.
Inadequate Specifications and Descriptions. Inadequate descriptions
are normally returned to the originator for clarification. Specifically, the
challenge is to determine the minimum needs of the government and then
write an item description that contains only those salient physical,
functional, and other characteristics that are essential to meet those needs.
Restrictive descriptions can sometimes lead to protests on the part of the
contractors and further complicate and delay the acquisition of the
supplies or services. Poor descriptions contribute to misunderstanding
between the government and the contractors, and may lead to inferior
products, unnecessarily high prices, or both. One common problem is
abbreviations. Keep abbreviations to a minimum and only use them when
Chapter 3
Contingency Funding and Requirements Process
they are universally understood and are not otherwise confusing. Careful
screening of the purchase request item description by approving
authorities will preclude delays in procurement action.
Performance-Based Requirements.
• Construction Projects
• Cost breakdown
• Drawings and specifications (required to be submitted to the
contracting officer for review prior to finalizing a contract)
• Itemized cost breakdown supporting liquidated damages
Chapter 3
Contingency Funding and Requirements Process
support contracts along with external support contracts such as the military
department, civil augmentation programs, and Defense Logistics Agency
(DLA) prime vendor contracts. The JARB is normally made up of
representatives of the Service component logistic staffs, special operations
forces (SOF), component staff, DLA, Defense Contract Management
Agency (DCMA), Joint force engineer, J6, Joint force comptroller, staff
judge advocate, and other JFC staff members as directed. It also should
include representatives from designated theater support and external
support contracting organizations. The theater support and external
support contracting members’ main role in the JARB process is to inform
the other JARB members which contracting mechanisms are readily
available for their particular acquisition, to include limits of the local
vendor base for each type of support. This would facilitate the decision
Chapter 3
Contingency Funding and Requirements Process
Funding Procedures
Bulk Funding. If the contracting office is issued a bulk funded PR, the
contracting office is responsible for maintaining a record of obligations
and the remaining balance of funds. The bulk funding concept is the
system whereby the CCO receives authorization from the certifying officer
to obligate funds on purchase documents against a specified lump sum
reserved for that purpose over a specified period of time. Rather than
obtaining individual obligation authority on each purchase document,
funds are precommitted. Strict control of the bulk funds is necessary to
preclude the misuse of funds.
Request and Authority to Cite Funds. When approved by the
accounting and finance officer or official designee, the bulk funding
document (AF Form 616, DA Form 3953, DD Form 1348, or NAVSUP
Form 1250-2) certifies funds are available and records them as
commitments in the accounting records. The amount approved is an
estimate of the amount that may be obligated by the recipient. Funds are
available for a specific period of time and for a designated purpose. Bulk
funding documents may be issued to the contracting office to permit certain
types of local requirements to be funded without having the budget officer
or certifying officer certify funds are available for each requisition. If
contracting is issued a bulk funding document, the CCO will be
responsible for keeping a record of obligations and the remaining balance
of funds (on the reverse of the form). Lastly, since the accounting
classifications for supplies and services are different, separate bulk funding
documents are required.
Other Funding Procedures. The CCO or the customer should contact
the budget office for procedures to fund:
Types of Funding
by action of the elements or by wear and tear in use, and which have
not been corrected through maintenance. Maintenance and repair
work would be paid for via O&M funds, not MILCON. When
construction and maintenance or repair are performed together as an
integrated project, each type of work is funded separately, unless
the work is so integrated that separation of construction from
maintenance or repair is not possible. In the latter case, fund all
work as construction.
Special Rules Applicable to Construction. There are several sources
for funding military construction in a contingency:
Chapter Acronyms
ADA – Antideficiency Act
A&E – Architecture and Engineer
AFI – Air Force Instruction
AOR – Area of Responsibility
CCIF – Combatant Commander Initiative Fund
CCO – Contingency Contracting Officer
CERP – Commanders’ Emergency Response Program
CLPSB – Combatant Commander Logistic Procurement Support
Board
COR – Contracting Officer’s Representative
CUL – Common User Logistics
DA – Department of the Army
DAU – Defense Acquisition University
DCMA – Defense Contract Management Agency
DD – Department of Defense Form
DFARS – Defense Federal Acquisition Regulation Supplement
DLA – Defense Logistics Agency
DoD – Department of Defense
E&EE – Emergency and Extraordinary Expenses
EEIC – Element of Expense Identification Code
ESP – Emergency and Special Project
FAR – Federal Acquisition Regulation
FY – Fiscal Year
GCC – Geographic Combatant Commander
HNS – Host Nation Support
JARB – Joint Acquisition Review Board
JCSB – Joint Contracting Support Board
JFC – Joint Force Commander
JOA – Joint Operations Area
MILCON – Military Construction
Key Points
. . . . . . . . . . . . . . 76
Introduction
. . . . . . . . . . . . . . 76
Types Of
Contingencies
. . . . . . . . . . . . . . 77
Predeployment
Planning
. . . . . . . . . . . . . . 81
Plugging In
Downrange
. . . . . . . . . . . . . . 89
NATO Tasking
. . . . . . . . . . . . . . 92
Special Requirements
for Acquisition
Planning
. . . . . . . . . . . . . . 93
Civil Augmentation
Programs (CAP)
. . . . . . . . . . . . . . 97
Contingency
Contracting Support
Phases
. . . . . . . . . . . . . 110
Exhaustion of
Logistics Supply and
Required Sources of
Supply
. . . . . . . . . . . . . 121
Types of Contract
Support
. . . . . . . . . . . . . 124
Service Theater
Support Contracting
Organizations and
Capabilities
. . . . . . . . . . . . . 129
DoD Combat Support
Agencies
. . . . . . . . . . . . . 133
Planning and
Guidance
76 Chapter 4
Introduction
J
oint force commanders (JFC) use the Joint operation planning process
(JOPP) in developing plans for the employment of military power to
shape events, meet contingencies, and respond to unforeseen crises.
The JOPP is an adaptive, collaborative process to provide actionable
direction to commanders and their staffs across multiple echelons of
command. It underpins planning at all levels and for missions across the
Chapter 4
Planning and Guidance
Types of Contingencies
Contingency contracting is defined as direct contracting support to
tactical and operational forces engaged in the full spectrum of armed
conflict and noncombat contingency operations, both domestic and
overseas. There are two types of contingencies: declared and nondeclared.
Examples of contingency operation support are major theater wars,
smaller-scale contingencies, noncombat contingency operations, and
domestic disasters or emergency relief. It may also include military training
exercises, routine installation and base operations, and systems or
inventory control point contracting in the continental United States
(CONUS) and outside the continental United States (OCONUS). Refer to
JP 3-0 for more information on types of operations.
• Arms control
• Combating terrorism
• Counter-drug operations
• Peace operations
• Support to insurgents
Operation Joint Endeavor (Bosnia) is an example of the dozens of
contingency operations conducted in recent years.
Military Operations Other Than War (MOOTW). Operations that
encompass the use of military capabilities across the range of military
operations short of war. These military actions can be applied to
complement any combination of the other instruments of national power.
MOOTW can occur before, during, and after war.
Domestic Disaster and Emergency Relief. Per JP 3-28, domestic
disaster and emergency relief operations can range from domestic natural
and man-made disasters, to civil disturbances, to terrorist incidents within
Chapter 4
Planning and Guidance
the US. DoD missions in the area of disaster relief include efforts to mitigate
the results of natural or man-made disasters such as hurricanes,
earthquakes, floods, oil spills, riots, and air, rail, or highway accidents.
Examples of domestic disaster and emergency relief are DoD support to
relief efforts following Hurricanes Isabel, Floyd, Hugo, and Katrina. See
Chapter 9 for additional information on domestic disaster and emergency
relief.
Military Exercises. Routine military exercises may feel anything but
routine to the CCO supporting them. Anyone who has participated in Foal
Eagle, Cobra Gold, Bright Star, Key Resolve, National Training Center
rotation, or similar types of exercises will attest that there is a very definite
sense of urgency, pressure, or risk of life or national interest associated
with them. Moreover, they do not qualify as declared contingencies or as
a major contingency type and generally receive no special consideration
for other forms of relief. CCOs must be fully cognizant of the distinction
between what is contractually permitted in an actual contingency and
what is permitted in an exercise preparing for such a contingency.
Predeployment Planning
• Contractor employees may not report for work, or may abandon the
job site, or refuse to drive vehicles in certain areas.
• Vendors and shops may close during hours of darkness or cease
operations.
• The threat of snipers, terrorists, and enemy action against the CCO
while traveling in the local community increases significantly.
For more information on JCASO and JOCSTs, see Concept for the Joint
contingency acquisition support office (JCASO).
Site Surveys.
Generally, the ADVON team will conduct the site survey. It should include
sources, business customs, maps, interpreter sources, and other important
information. Take a camera on the site survey and get everything on film.
Pictures of runways, water pumps, generators, control towers, and perimeter
fencing will greatly aid engineering, operations, and security forces
personnel who could not make it to the site survey. Pictures will also
refresh your memory for requirements later on. Make sure you check with
the US embassy or host nation to see if you need to seek permission to
take pictures.
Plugging In Downrange
Once your feet hit the ground, your next task is to learn how to plug in!
You must quickly find your support structure (J4) and meet with the on-
site commander to discuss the following:
NATO Tasking
There are two situations when a CCO might get deployed for NATO. One
situation is a national tasking (US troop contribution), when the FAR and
normal warrant would be used. Second, there is the NATO tasking against
Chapter 4
Planning and Guidance
office for deliveries since the CCO must be prepared to award contracts
immediately upon arrival at the deployment site. This is why it is
important to have access to boiler plate statements of work, procurement
instrument identification number logs, various contracting forms, and
other documents as required. Boiler plate items should be preloaded onto
the CCO’s laptop and in hard copy in the Contingency Contracting Kit.
SF 44s, purchase orders, GCPC, and blanket purchase agreements (BPA)
will be the primary contracting methods you will use in this phase. Below
are definitions of contracting statements that are incorporated in a
solicitation and award.
• Statement of Work. This document is provided by the customer
explaining the work to be accomplished on a requested project.
Details might include the general scope of work, complexity,
purpose of the supplies or services the government will acquire
under the contract, where it is to be performed, what standards are to
be followed, how the results will be evaluated, and other pertinent
requirements.
• Performance Work Statement. This document is a statement of work
for performance-based acquisitions that describes the required
results in clear, specific, and objective terms with measurable
outcomes.
• Statement of Objectives. This document is a government-prepared
document incorporated into the solicitation that states the overall
performance objectives. It is used in solicitations when the
government intends to provide the maximum flexibility to each
offeror to propose an innovative approach.
Phase II: Joint Reception, Staging, Onward Movement, and
Integration (JRSOI) (Formally Known as Buildup). The JRSOI phase
is characterized by a reception and beddown of the main body of
deploying forces. In this phase, additional contracting personnel, contract
support personnel, and Defense Contract Audit Agency [DCAA] audit
support, generally will arrive with their units, though not necessarily at a
rate commensurate with the number of troops to be supported. The CCO’s
priorities during this phase will continue to be responsiveness to life
support requirements, but attention must also be given to the following
actions:
Class Item
Subsistence (food) and gratuitous (free) health and
I
comfort items
Clothing, individual equipment, tentage, organizational
tool sets and kits, hand tools, unclassified maps,
II
administrative and housekeeping supplies, and
equipment
Petroleum, oil and lubricants (package and bulk):
petroleum, fuels, lubricants, hydraulic and insulating oils,
III preservatives, liquids and gases, bulk chemical products,
coolants, deicer, antifreeze compounds, components,
additives of petroleum and chemical products, and coal
Construction materials, including installed equipment and
IV
all fortification and barrier materials
Ammunition of all types: bombs, explosives, mines,
V fuzes, detonators, pyrotechnics, missiles, rockets,
propellants, and associated items
Personal demand items (such as health and hygiene
products, soaps and toothpaste, writing material, snack
VI
food, beverages, cigarettes, batteries, and cameras—
nonmilitary sales items)
Major end items such as launchers, tanks, mobile
VII
machine shops, and vehicles
Medical materiel including repair parts peculiar to medical
VIII
equipment
Repair parts and components to include kits, assemblies,
IX and subassemblies (repairable or nonrepairable) required
for maintenance support of all equipment
Material to support nonmilitary programs such as
X agriculture and economic development (not included in
Classes I through IX)
Misc Water, salvage, and captured material
Table 3. Supply Classes
and how fast, these CAP task orders can be transferred to theater
support contracts. See JP 4-10, Appendix B, “Services’ External
Support Contract Overview,” for more details on the Service CAP
organizations and capabilities.
Coordinating Theater Support and External Support Contracting
Effort. It is very important that the J4 staff ensure that the CSIP
synchronizes the theater support, Service CAP, and any DLA contracting
efforts to ensure that there is not undue competition for the same locally
available supplies, equipment, and subcontractor employees. Without
proper coordination, this competition between CAP and theater support
contracts will inevitably drive up the prices of local goods and services
and could create shortages.
Interagency Support. Similar to multinational support, US forces may
be required to provide common user logistics support to both
governmental and nongovernmental organizations. In many operations,
interagency support may be limited in scope and may not pose a
significant challenge to the JFC; however, in some stability operations
this support can be much more significant as discussed in the section
below. In most cases, a lead Service will provide this support through
theater support contracts. CAP task orders, or a combination of both. The
key to success of interagency support is the establishment of clear
communication channels to the supported organization and collecting
their requirements as early as possible in the planning cycle.
Notes
1. It is anticipated that this threshold will increase. Please check FAR 13.003 for
changes in the SAT.
2. Ibid.
Chapter 4 Notes
Planning and Guidance
Chapter Acronyms
AAR – After Action Report
ACC – Army Contracting Command
ACO – Administrative Contracting Officer
ACSA – Acquisition and Cross-Servicing Agreement
ADVON – Advanced Echelon
AETC – Air Education and Training Command
AFCAP – Air Force Contract Augmentation Program
AFCESA – Air Force Civil Engineering Support Agency
AOR – Area of Responsibility
ASC – Army Sustainment Command
BEAR – Basic Expeditionary Airfield Resources
BPA – Blanket Purchase Agreement
CAAF – Contractors Authorized to Accompany the Forces
CAP – Civil Augmentation Program
CCAS – Contingency Contract Administration Services
CCDR – Combatant Commander
CCO – Contingency Contracting Officer
CERP – Commanders’ Emergency Response Program
CID – Criminal Investigation Division (Army)
COCOM – Combatant Command
CONUS – Continental United States
COR – Contracting Officer’s Representative
CS – Combat Support
CSB – Contracting Support Brigade
CSIP – Contracting Support Integration Plan
CSS – Combat Service Support
DBA – Defense Base Act
DCAA – Defense Contract Audit Agency
DCMA – Defense Contract Management Agency
DD – Department of Defense (Forms)
Contracting
Processes
142 Chapter 5
Contracting Processes
Key Points
• In any contingency operation, quality acquisition support to the
commander is critical to mission accomplishment.
• The absence of direction should be interpreted as permitting
innovation and the use of sound business judgment.
• A wide selection of contract types is available in order to provide
needed flexibility in acquiring the supplies and services required.
Most contingency purchases can be accomplished through
simplified acquisition procedures (SAP).
• Contingency contracting officers (CCO) should emphasize price
negotiations, even if they have competition, at sustained or
established locations.
• The type of contract selected determines both the clauses to be
included and the degree of risk accepted by the government.
• The objective is to select the contract type that places a reasonable
degree of risk upon the contractor and provides the contractor with
the greatest incentive to perform efficiently and economically.
• Figures 5 and 6 outline and review basic contracting processes and
contract formats.
Introduction
W
e have an ethical obligation to abide by laws and regulations.
However, in an instance where there is an absence of clear-cut
directions, remember, Federal Acquisition Regulation (FAR)
1.102 (4)(e) encourages us to think outside of the box.
This chapter provides a quick reference to limitations and exceptions
to contracting operating procedures in a contingency environment.
Specific augmentation programs that are common to the contingency
Chapter 5
Contracting Processes
Figure 5. Basic Contracting Processes
environment are covered and explained, along with SAP. Frequently used
contract types, instruments, and appointed personnel (such as ordering
officers) are also covered. This chapter provides the CCO with a discussion
of determinations and findings, justification and approvals, and equipment
lease or purchase decisions that may apply to the contracting process.
The chapter further discusses the tools to organize and track contracts
and the means of providing oversight through the contracting officer’s
representatives (COR) in order to ensure accountability. It is the CCO’s
job to facilitate the purchasing needs of our customers. This chapter
concludes by explaining the duties of a paying agent and the execution
of ratification procedures when unauthorized commitments are made.
request quotations or offers from two sources not included in the previous
solicitation. Note that the competition requirements are not waived by
using simplified acquisition procedures. In other words, for micro-
purchases to be made outside the United States (US) in support of a
contingency operation under $25K, a CCO needs to support price
reasonableness. To the extent practicable, micro-purchases shall be
distributed equitably among qualified suppliers and micro-purchases may
be awarded without soliciting competitive quotations if the contracting
officer or individual appointed in accordance with FAR 1.603-3(b)
considers the price to be reasonable.
Oral Solicitations.
Oral solicitations or request for proposals (RFP) are authorized when a
written solicitation would delay the acquisition of supplies and services
to the detriment of the government and a solicitation notice is not required
under FAR 5.202 (such as perishable items, support of contingency
operations, or other emergency situations). This technique does not excuse
the CCO from complying with all other statutory and regulatory
requirements. Oral solicitations are typically used as a last resort due to
potential problems associated with them and they must immediately be
followed up in writing. The CCO’s documentation also must provide
sufficient rationale for the use of oral solicitations. The contract file
includes:
Micro-purchases
Governmentwide Commercial Purchase Card (GCPC).
Contract Types
Selecting Contract Types. (FAR 16.101) A wide selection of contract
types is available to the government and contractors in order to provide
needed flexibility in acquiring the large variety and volume of supplies
and services required by agencies. Contract types vary according to:
The contract types are grouped into two broad categories: fixed-price
contracts (FAR 16.2) and cost-reimbursement contracts (FAR 16.3).
The specific contract types range from firm-fixed price, in which the
contractor has full responsibility for the performance costs and resulting
profit (or loss), to cost-plus fixed-fee, in which the contractor has minimal
responsibility for the performance costs and the negotiated fee (profit) is
Chapter 5
Contracting Processes
fixed. In between are the various incentive contracts (FAR 16.4), in which
the contractor’s responsibility for the performance costs and the profit or
fee incentives offered are tailored to the uncertainties involved in contract
performance.
Fixed-Price Contracts. (FAR 16.2)
Under a fixed-price contract the government must be able to describe
exactly the required contract results and allow the contractor the flexibility
to plan, manage, and execute the work to achieve those results. This type
of contract has tremendous advantages, as the performance and cost risk
lie with the contractor. Contract types commonly seen in a contingency
environment are:
purchases. The better the customer defines its needs up front, the
better the competition and prices that will be realized.
• The CCO should do a spend analysis of known requirements to
determine which categories of supplies and services might be
suitable for a centralized contract. One way to determine this is to
review the number of simplified acquisition actions being made for
the same items.
Letter Contracts and Undefinitized Contract Actions (UCA). (DFARS
217.74)
UCA means any contract action for which the contract terms,
specifications, or price are not agreed upon before performance begins.
Examples include letter contracts, basic ordering agreements, and
provisioned item orders, for which the price has not been agreed upon
before performance has begun. A UCA shall be approved by the HCA
prior to award. The regional contracting center (RCC) chief will forward
a request for approval to award a UCA through the senior contracting
official to the HCA. UCAs shall be accomplished IAW DFARS 217.74.
UCA approval authorities shall establish procedures for RCC chiefs to
track UCAs and submit a written report to them for any UCA that is not
definitized within 180 days after the contractor submits a qualifying
proposal. The report shall list each UCA, explain why it was not
definitized within the allotted time frame, and provide a new definitization
date. CCOs shall document the contract file with the justification for the
delay, and prepare a new milestone schedule if the DFARS definitization
schedule milestones are bettered. UCAs that exceed 180 days substantially
elevate the overall financial risk to the government. Every effort should
be made to definitize contract actions before that time. Requests for
approval to issue a UCA shall include a written statement of urgency.
(DFARS 217-7404) The urgency statement for UCAs must cite why the
government would be seriously injured if the action was delayed to permit
negotiation of a price. A UCA (including an undefinitized task order or
Chapter 5
Contracting Processes
• The findings in a class D&F shall fully support the proposed action
either for the class as a whole or for each action. A class D&F shall
be for a specified period, with the expiration date stated in the
document.
• The contracting officer shall ensure that individual actions taken
pursuant to the authority of a class D&F are within the scope of the
D&F.
• Expiration dates are required for class D&Fs and are optional for
individual D&Fs. (FAR 1.706)
Content. (FAR 1.704) Each D&F shall set forth enough facts and
circumstances to clearly and convincingly justify the specific
determination made. As a minimum, each D&F shall include, in the
prescribed agency format, the following information:
Justification and Approval (J&A) for Other than Full and Open
Competition. In using other than full and open competition procedures,
the contracting officer must complete a thorough written justification in
accordance with (IAW) FAR 6.303, explaining the reasons for proceeding
with the award of a contract without full and open competition. The CCO
should ensure that a fair and reasonable price is achieved. This justification
Chapter 5
Contracting Processes
Figure 7. Average Cost of NTVs Over Time Using Different Acquisition Approaches
Chapter 5
Contracting Processes
regard to the lease versus purchase decision. The report also identifies
another important issue—the management of NTVs and the problems
associated with not properly managing them and not centralizing their
purchase. This could lead to unnecessary and more expensive leases and
purchases. If the requirement is for procuring or leasing vehicles vice
transportation services, CCOs should review procurement restrictions with
the General Services Administration.
Buy American Act does not apply to articles, materials, and supplies to be
used outside the US, its possessions, Puerto Rico, and any other place
subject to its jurisdiction. (FAR 25.001(a)(1) A foreign end product may
be purchased if the contracting officer determines that the price of the
lowest domestic offer is unreasonable. In view of this exception, most
acquisitions conducted overseas in support of a foreign contingency
operation will not be subject to the Buy American Act and the
implementing regulations at FAR Subpart 25.1 and 25.2.
Balance of Payments Program. This program applies to purchases of
supplies, services, or construction for use outside the US. The program
applies a preference for domestic products by requiring upward adjustment
of foreign end product offers by 50 percent for evaluation purposes.
Exceptions to the program (FAR 25.303) are as follows:
• A foreign end product may be acquired for use outside the United
States, or a foreign construction material may be used in
construction outside the United States, without regard to the
restrictions of the Balance of Payments Program if:
• The estimated cost of the end product does not exceed the
simplified acquisition threshold.
• The end product or construction material is listed at FAR
25.104, or the head of the contracting activity determines that a
requirement (1) can only be filled by a foreign end product or
construction material (see FAR 25.103(b)), (2) is for end
products or construction materials that, by their nature or as a
practical matter, can only be acquired in the geographic area
concerned (ice or bulk material such as sand, gravel, or other
soil material, stone, concrete masonry units, or fired brick), or (3)
is for perishable subsistence products and delivery from the
United States would significantly impair their quality at the
point of consumption.
• The acquisition of foreign end products is required by a treaty or
executive agreement between governments.
Chapter 5
Contracting Processes
The Trade Agreements Act provides the authority for the President to
waive the Buy American Act and other discriminatory provisions for
eligible products from countries that have signed an international trade
agreement with the United States, or that meet certain other criteria, such
as least developed nation status. The President has delegated this waiver
authority to the US trade representative.
Berry Amendment. CCOs must comply with the Berry Amendment.
Unless a specific exception in law applies, the products, components, or
materials listed below must be grown, reprocessed, reused, or produced
wholly in the US if they are purchased with funds made available (not
necessarily appropriated) to DoD.
Item, Component, or Material. (DFARS 252.225-7012)
• Food
• Clothing, and the materials and components thereof, other than
sensors, electronics (this exception for electronics only applies to
clothing with electronics), or other items added to, and not normally
associated with, clothing (and the materials and components
thereof)
• Tents
• Tarpaulins
• Covers
• Natural fibers or yarns
• Cotton and natural fiber products
• Natural fabrics (including all fibers and yarns therein)
• Synthetic fabrics (including all fibers and yarns therein)
• Fabric blends (including all fibers and yarns therein)
• Items of individual equipment (items in federal supply class 8465)
made from or containing fibers, yarns, fabrics, or materials
(including all fibers, yarns, fabrics, or materials therein)
Chapter 5
Contracting Processes
• Hand tools
• Measuring tools
DFARS 225.7002-2 explains various Berry Amendment exceptions.
Several exceptions, which may be applicable in a deployed environment,
are listed below:
• Acquisition at or below the simplified acquisition threshold.
• Acquisition of any of the items in DFARS 225.7002-1 (a) or (b), if
the Secretary concerned determines that items grown, reprocessed,
reused, or produced in the United States cannot be acquired when
needed in a satisfactory quality and sufficient quantity at US market
prices.
• Acquisition of items listed in FAR 25.104(a), unless the items are
hand or measuring tools.
• Acquisition outside the US in support of combat operations.
• Acquisition of perishable foods by or for activities located outside
the US for personnel of those activities.
• Acquisitions of food, specialty metals, or hand or measuring tools in
support of contingency operations or for which the use of other than
competitive procedures has been approved on the basis of unusual
and compelling urgency in accordance with FAR 6.302-2.
• Emergency acquisition by activities located outside the US for
personnel of those activities.
• Acquisition of foods manufactured or processed in the US,
regardless of where the foods (and any component if applicable)
were grown or produced. Acquisitions of specialty metals when the
acquisition furthers an agreement with a qualifying country (see
DFARS 225.872).
• Acquisition of chemical warfare protective clothing when the
acquisition furthers an agreement with a qualifying country. (See
DFARS 225.872 and the requirement in DFARS 205.301 for
Payment Information
exchange may be the most prudent and effective way to reduce prices
proposed. For supplies, services, and construction, experience in the
USCENTCOM theater has shown that the price drops dramatically
whenever discussions are opened up with an offeror. The CCO’s bargaining
position is enhanced when the product or service is available elsewhere,
or the requirement is not urgently needed. If these two factors are reversed
and the contractor is aware of that, the CCO may be hard pressed to
negotiate a better deal.
Price Negotiation Memorandum (PNM).
The business culture in most deployed locations is to negotiate pricing.
CCOs should put more emphasis on price negotiations, even if you have
competition, at sustained or established locations. In awarding negotiated
contracts, contracting officers should always engage in aggressive
negotiations based on prenegotiation objectives. (FAR 15.405) All
negotiation results must be documented in a PNM. (FAR 15.406-3)
Fair and Reasonable Prices.
A CCO’s memorandum, explaining how fair and reasonable prices were
obtained by the government and the basis for the price reasonableness
determination, should be included in the contract file (fair and reasonable
price).
Certified Cost or Pricing Data.
The award of any negotiated contract or modification of any contract in
excess of $650K will require the contractor to submit certified cost or
pricing data, unless one of the exemptions to the requirement for certified
cost or pricing data applies. (FAR 15.403-4(a)(1)) A waiver can be sought
by the CCO if there exists a reasonable basis for it. When the certificate of
cost or pricing data is required, then offerors will complete the certificate
form at FAR 15.403-4(b)(2).
Contractual Forms
Threshold/
Contract
Transaction Use Limitations
Instrument
Limit
6
Governmentwide $3,000 /Up to –Up to simplified – No clauses
commercial simplified acquisition threshold – Up to
purchase card acquisition as payment in simplified
threshold in a conjunction with other acquisition
contingency purchase methods threshold for
operation if –No cash advance General
conditions from –No rental/lease or Services
Defense Federal real estate Administration
Acquisition – No increment-
Regulation tation
Supplement – No telecom-
213.301(3) are munications
met.
6
Convenience $2,500 –(Federal Acquisition –Check trans-
checks Regulation [FAR] 13.3) actions
Commercial items –No clauses
without technical
specifications
–Simultaneous order
placement and item
delivery
6
Standard $3,000 –Purchase –No clauses
Form (SF) 44 Contingency up Order/receiving –Commercial
–White=Seller to simplified report/invoice/public items without
Invoice/ acquisition voucher technical specs
Accounting threshold –Supplies immediately –FAR Part 12
and Finance available and does not apply
–Blue=Seller’s nonpersonal services –One delivery,
copy –Purchases under one payment
–Pink=Receiv- $3,000 do not require –Can
ing copy competition (except: decentralize
–Green=Keep first time buys, price ordering officer
in book exceeds government
estimate, suspect
price may not be
reasonable)
–Multipurpose form
6
DD Form 1155 >$100K – Order supplies or –Commercial
services purchase only
– Purchase
order/delivery order
Threshold/
Contract
Transaction Use Limitations
Instrument
Limit
DD Form 250 –Material inspection and
receiving reports
SF Form –Solicitation/Contract/
1449 Order of commercial
items
SF Form –Solicitation/Contract/
1442 Order of construction
SF Form 26 –Award contract
SF Form 33 –Solicitation offer and
award (3 in 1)
SF Form 30 –Amend
Solicitation/Modification
of Contract
• Name of supplier.
• BPA number.
• Date of purchase.
• Purchase number.
• Itemized list of supplies or services furnished.
• Quantity, unit price, and extension of each item less applicable
discounts.
• Date of delivery or shipment.
• Invoicing method options are as follows:
• A summary invoice shall be submitted at least monthly or upon
expiration of the BPA, whichever occurs first, for all deliveries
made during a billing period and for which payment has not
been received. The summary invoice shall also identify the
delivery tickets covered therein, stating their total dollar value
and supported by receipted copies of the delivery tickets. The
CCO in coordination with the COR will validate the invoice.
• An itemized invoice shall be submitted at least monthly or upon
expiration of the BPA, whichever occurs first, for all deliveries
made during a billing period and for which payment has not
been received. These invoices need not be supported by copies
of delivery tickets. The CCO in coordination with the COR will
verify accuracy of the invoices.
• When billing procedures provide for an individual invoice for
each delivery, these invoices shall be accumulated by the CCO
or the assigned COR, provided that a consolidated payment will
be made for each specified period, and the period of any
discounts will commence on the final date of the billing period
or on the date of receipt of invoices for all deliveries accepted
during the billing period.
-
government
contractor
190 Figure 8. Acquisition Process, Part 1
Chapter 5
Contracting Processes
Figure 8. Acquisition Process, Part 2
include a statement that the member has been counseled as to the pecuniary
liability of the duty.
Cash Advances. The amount of cash given to the paying agent by the
disbursing office is governed by:
• Has written authorization from the CCO. The CCO should give a
copy of the written authorization to the finance and accounting
officer, in effect delegating authority to sign a contract instrument.
• Has been trained by the CCO to use the form.
• Is teamed with an appointed and trained paying agent. In addition,
the paying agent must also be designated in writing.
Designation. The CCO may designate individuals as FOOs, either from
within or outside the contracting organization, with the authority to
receive more funds from the comptroller before proceeding with any
purchases. After a valid purchase request (PR) is received by the FOO, he
or she must consider the following:
Once the CCO conducts a final review and documents the outcome,
the CCO will issue an official Revocation of Authority to the FOO
terminating his or her appointment. One copy will be provided to the
terminated FOO, one copy will be provided to the FOO’s commanding
officer, one copy to the appropriate disbursing office and one copy will
be maintained on file with the contingency contracting office. Any
additional purchases or business agreements by the FOO after revocation
of his or her authority will be considered unauthorized commitments for
which the former FOO may be held liable.
FOO Violations. The CCO may revoke the FOO appointment for any
violations of regulations, orders, or statutory authority. These violations
Chapter 5
Contracting Processes
include, but are not limited to, unauthorized commitments, split purchases,
purchases not authorized by the CCO, purchases made over the FOO’s
dollar limitation, delinquent reconciliation with the CCO, or training
delinquencies. Violations may result in the revocation of the appointment
of the FOO and of any additional FOOs within the unit, section, or battalion.
In the case of an unauthorized commitment, the revocation will remain
effective until the unauthorized commitment is ratified by the appropriate
authority and reviewed by legal to determine if disciplinary action is
recommended. For other violations, the CCO may reinstate the FOO
appointment upon correcting the deficiency.
Chapter Acronyms
AOR – Area of Responsibility
BPA – Blanket Purchase Agreement
CAAF – Contractors Authorized to Accompany the Forces
CAP – Civil Augmentation Program
CAR – Contract Action Reporting
CCO – Contingency Contracting Officer
CONUS – Continental United States
COR – Contracting Officer’s Representative
D&F – Determination and Findings
DBA – Defense Base Act
DD – Department of Defense (Form)
DFARS – Defense Federal Acquisition Regulation Supplement
DoD – Department of Defense
DoDD – Department of Defense Directive
EFT – Electronic Funds Transfer
FAR – Federal Acquisition Regulation
FFP – Firm-Fixed-Price
FMR – Financial Management Regulation
FOO – Field Ordering Officer
FPDS-NG – Federal Procurement Data System—Next Generation
GCPC – Governmentwide Commercial Purchase Card
HCA – Head of Contracting Activity
HQDA – Headquarters Department of the Army
IACR – International Agreement Competitive Restrictions
IAW – In Accordance With
J&A – Justification and Approval
LPTA – Lowest Price Technically Acceptable
MILCON – Military Construction
NAFTA – North American Free Trade Agreement
NDAA – National Defense Authorization Act
Chapter 5 Notes
Contracting Processes
Key Points
. . . . . . . . . . . . . 212
Introduction
. . . . . . . . . . . . . 212
Administration
Documentation
. . . . . . . . . . . . . 213
File
Management
. . . . . . . . . . . . . 213
General Contract
Administration
. . . . . . . . . . . . . 217
Construction
Contract
Administration
. . . . . . . . . . . . . 222
Contract
Monitoring
. . . . . . . . . . . . . 225
Contract
Modifications
. . . . . . . . . . . . . 230
Transferring
Contract Functions
. . . . . . . . . . . . . 235
Terminations
. . . . . . . . . . . . . 236
Contract
Closeout
. . . . . . . . . . . . . 241
Contract
Administration
212 Chapter 6
Contract Administration
Key Points
• All Federal Acquisition Regulation (FAR) and Defense Federal
Acquisition Regulation Supplement (DFARS) administrative
recordkeeping and file management requirements continue under
contingency, humanitarian assistance, or peacekeeping conditions.
• Contract files must be organized and sufficiently annotated to
document the actions taken and the supporting rationale for the
entire procurement process.
• Contracting does not end with contract award. Contract
administration completes the cycle and assures the customer’s needs
are satisfied.
• Fast and accurate reporting is the key to satisfactory contract
performance. Timely identification and documentation of deficient
contractor performance is critical.
• Contracting officer’s representatives (COR) must be appointed and
trained properly.
• When the contractor has satisfactorily completed performance of the
terms of the contract, and final payment has been made, the contract
file should be closed out as soon as possible.
Introduction
T
his chapter discusses actions a contracting officer should take to
administer a contract. It covers actions to be taken and
documentation to be included from contract award to contract
closeout. This includes monitoring, transferring, terminating, and closing
out contracts.
Chapter 6
Contract Administration
Administration Documentation
Contract administration documentation involves recordkeeping and
ensuring adequate documentation exists to provide an audit trail. It cannot
be overemphasized how important it is to accurately document all
purchases, especially in a contingency environment. Since normal checks
and balances may not exist during contingency situations, contingency
contracting officers (CCO) can be assured auditors will be interested in
all paperwork when the unit returns home.
Problems You Will Face. You can expect to face difficulty obtaining
detailed documentation from contractors. This holds true not only for
documents supporting their claims, but also for general purchases, as
many overseas vendors operate on a strict cash-and-carry basis, and are
not in the habit of providing paper receipts or using invoicing procedures.
General guidance on recordkeeping is provided by FAR 4.8 and DFARS
204.8.
File Management
• Notice of award
• The original of the signed contract, all contract modifications, and
documents supporting modifications
• Notice to unsuccessful bidders or offerors and record of any
debriefing
• Post-award conference records
• Orders issued under the contract
• COR appointment letters and training
• Quality assurance records
• Property administration records
• Bills, invoices, vouchers, and supporting documents
• Record of payments or receipts
• Receiving documentation
• Contract completion documents
Format, Numbering, and Transfer.
• File large purchase orders and contracts in six part folders. Avoid
the use of multiple manila folders.
• Maintain a central registry of all contract instruments including
basic instruments and modifications, amendments or other changes.
• Establish a file tracking system that permits the location of files to
be closely monitored as they are used within the contracting office
and eventually closed out or transferred to another activity for
administration. You must be able to locate files quickly to support
efficient contracting operations and potential audits or reviews.
• Logs, either through an automated system or manual, will be
maintained to identify purchase requests that are open, completed,
and closed. This will provide a common reference point through the
• Unit of measure
• Quantity (for example, job, lot, or each)
• Item description
• Contracting officer’s name
• Customer organization
• Date of receiving report
• Date of final payment
• Date contract was closed out
• Location of contract file
• Remarks (to include pertinent e-mail)
Contract Administration. The contracting process does not end with the
award of a contract, purchase order, or delivery order. All the effort spent
in planning, describing, and funding the customer’s requirement could
potentially go for naught without effective administration of the resultant
contractual instrument. The role of contract administration is to complete
the cycle, assure the customer’s needs are satisfied, and the contractor is
fully compensated for services or supplies rendered per contract terms
and conditions.
Purchase, Pickup, Receive, and Deliver. The CCO’s responsibilities
for supply purchases are more challenging during deployments than
during peacetime. Many of these challenges are associated with the lack
of proper receipt of goods and services. First, the lack of reliable
communications in many contingency environments makes it necessary
to travel to the vendor’s location. Second, most businesses will be cash-
and-carry, which may require the CCO to officially receive and deliver
items on behalf of the customer. There are times, of course, when the CCO
will not have to make delivery. For example, a large order of construction
materials will have to be delivered by the contractor or picked up by the
customer. For the most part, the CCO can count on being the link in the
supply chain for validating proof of delivery. Contracting may set up a
receiving area outside the installation and then have the customers pick
up orders there, or shuttle the merchandise into the compound or base.
Other options include the customer going into town to pick up their goods,
or the CCO or his designee delivering the items to the customer. There is
no policy or procedure set in stone regarding where merchandise will be
received. Expect frequent changes and some possibly cumbersome
procedures throughout your deployment.
Followup. Because you are in a deployed situation you may not have
the benefit of interconnected computer information systems. Therefore,
followup is a must with your customer. Having as much information
available as possible for your customer along the way will save you a lot
of headaches in the end. If the delivery date has passed, the customer
received the wrong item, part of an item, or a broken or damaged item,
you will hear about it. The customer should be prepared to describe what
was received versus what the order said. The best method is to instruct
your customer not to sign for a purchase until the problem is resolved.
Sometimes, however, the discrepancy is not immediately apparent. In any
event, the customer should call you as soon as practical (if possible, when
the delivery truck is still there), so you can assist. Written followup is
essential because it helps keep the facts straight when dealing with
vendors. The customer should never deal with the vendor directly in
resolving a discrepancy. It is your job to take care of your customers.
Receipt, Inspection, and Payment. Goods and services are inspected
by the customer. Once the item is delivered or service is performed, the
customer must sign a receiving report acknowledging receipt and
authorizing payment. The contractor’s invoice is then submitted to the
contracting office. Next, the contracting office will ensure the invoice is
correct. This receiving report must accompany the invoice in order for
Chapter 6
Contract Administration
• Strive for a central base receiving point where all goods can be
processed. This will ensure all goods are accounted for and will aid
in timely payment to vendors.
• Have supply provide a receiving individual to accompany the CCO
on all initial buys. Accountability and control will be established
from the onset. Note, however, this approach has limited
application. It will only solve the problem for government pickup
items. Direct vendor deliveries to the base will still require proper
receipt.
entry. What is required may therefore vary from not only country to
country, but also from base to base within a country. Additionally, some
nationalities aren’t allowed on any military installation. You must pay
particular attention to this in the Middle East where virtually all normal
laborers or truck drivers are third country nationals. Regardless of your
location, solicitations and contracts shall contain a provision identifying
which credentials are required for base entry.
Generally, contractors submit requests for passes for their employees
and vehicles in coordination with the contracting officer or designated
representative. As with bases in the US, you must ensure passes are
returned whenever one of the following conditions occur:
• The contract is complete.
• A particular individual is no longer working on the contract.
• A vehicle or piece of equipment is no longer required for the work
required by the contract.
The security personnel must establish clear procedures or local
installation authorities to facilitate access to the base. In some cases,
deliveries and shipments have been held at the gate for hours or not made
at all due to access problems. To work around some of these problems,
installations often establish receiving sections outside the gate and then
reload supplies and equipment onto government vehicles to make final
delivery.
Shipment of Supplies and Equipment to an Overseas Location.
Waiting for the supplies and equipment ordered from the United States
can be very frustrating for the CCO’s customers. To minimize shipping
time, contractors can use the mail or similar commercial services (for
example, DHL or Federal Express), if available. While the shipping time
may be shorter, shipments sent by ordinary mail incur some additional
risk because they are not traceable.
not a place to decide how the work really should be done (that is all
in the contract), but a time to review the terms, conditions, and
specifications to ensure everyone knows what is happening. The
contracting officer chairs the meeting.
• Each contract, regardless of value, has a designated COR. The COR
(unless his or her authority is expanded) has no authority to
interpret the specifications for the contractor, effect changes, or
direct the contractor’s employees; neither does the building
occupant.
• Invoice
• Release of claims (if contractor refuses to sign, a memorandum of
record must be included in the file)
• Receiving report
Contract Monitoring
As a representative of the contracting officer, it is the COR’s responsibility
to ensure the contractor has provided at least the minimum contract
requirements. Any perceived deviations from the statement of work (SOW),
statement of objectives, or performance work statement should be brought
to the attention of the contracting officer. The customer should not attempt
to interpret these documents for the contractor and cannot direct changes
or accept substitute performance. Many people have improperly cost the
government (or themselves) money by making seemingly nonchalant
remarks asking the contractor to act outside the scope of the contract.
Contract Modifications
the contractor can submit a claim. The contracting officer must then
issue a final decision to a contractor’s claim (see Chapter 7).
• A valid contracting officer’s final decision must: (FAR 33.211)
• Be in writing.
• Be the decision of the contracting officer.
• Inform the contractor of the right to appeal.
• Adequately inform the contractor of the reasons behind the
contracting officer’s decision.
Terminations
There are basically two options for termination of contracts. They include
T4C and termination for default (T4D) or cause. Once you’ve decided
which method to pursue, be prepared to negotiate a fair and reasonable
settlement. Remember that termination implies a breach of contract, and
adequate compensation is appropriate. Follow local procedures for
reporting and reviewing any termination actions.
To read more about terminations consult the DVD.
• Notice of termination should be in writing. It will state or contain:
• The contract is being terminated.
• Extent of termination.
• Any special instructions.
• The steps the contractor should take to minimize impact on
personnel if the termination, together with all other outstanding
terminations, will result in a significant reduction in the
contractor’s work force.
Chapter 6
Contract Administration
Cure Notice.
If a contract is to be terminated for default before the delivery date, a cure
notice is required by the default clause. Before using this notice, it must
be ascertained that an amount of time equal to or greater than the period
of cure remains in the contract delivery schedule or any extension to it. If
the time remaining in the contract delivery schedule is not sufficient to
permit a realistic cure period of 10 days or more, the cure notice should
not be issued.
After the cure notice is issued:
• Negotiate changes
• Prepare modification to T4D
• Document negotiations
• Obtain contractor’s receipt of cure notice
Contract Closeout
contracting officer will sign and attach this form to the DD Form
1594.
• When the physically completed contract involves government
property in the possession of the contractor, the contracting
officer will forward a DD Form 1593, Contract Administration
Completion Record, to the property administrator requesting the
actual or estimated dates for completion of property
administration. The DD Form 1593 should also be used to verify
that other functional activities have completed their required
closeout actions.
• The contracting officer will review the status of funds on
physically completed contracts to ascertain whether funds are
available for removal prior to final payment.
• For all contracts not in excess of the SAT, the contracting officer
shall include in the contract file a statement that all contract actions
have been completed. The completed form or statement is authority
for closing out the contract file.
• When the purchasing office administers a contract, that office is
responsible for ensuring that all required purchase actions and
contract administration have been completed, utilizing as necessary
DD Form 1597, Contract Closeout Checklist, and DD Form 1593,
Contract Administration Completion Record.
• When all required actions have been completed, the purchasing
office shall prepare a Contract Completion Statement, DD Form
1594, for all contracts in excess of the SAT. The contract
completion statement shall be made a part of the official contract
file.
• DFARS 204.804 prescribes the use of the DD Form 1594.
Chapter 6
Contract Administration
When FOO and BPA authorized callers are ready to redeploy, be sure they
return their original appointment order, any completed forms and
documents, updated PIIN logs, and any unused forms (especially SF 44).
Throughout the contingency, you should be getting Joint Uniformed
Lessons Learned System and after action report input from your ordering
officers.
See FAR 4.804-5 for procedures on closing out the contract files. The
main issues are as follows:
Chapter Acronyms
BPA – Blanket Purchase Agreement
CCO – Contingency Contracting Officer
COR – Contracting Officer’s Representative
DCMA – Defense Contract Management Agency
DD – Department of Defense (Form)
DFARS – Defense Federal Acquisition Regulation Supplement
DoD – Department of Defense
FAR – Federal Acquisition Regulation
FOO – Field Ordering Officer
GFE – Government-furnished Equipment
GFP – Government-furnished Property
HCA – Head of Contracting Activity
IAW – In Accordance With
LD – Liquidated Damages
PIIN – Procurement Instrument Identification Number
REA – Request for Equitable Adjustment
SAT – Simplified Acquisition Threshold
SF – Standard Form
SOW – Statement of Work
T4C – Termination for Convenience
T4D – Termination for Default
TCO – Termination Contracting Officer
US – United States
Chapter 6 Notes
Contract Administration
Protests and
Appeals
248 Chapter 7
Introduction
G
ood lines of communication between the contingency
contracting office and the supporting legal office are critical to
successfully deal with a bid protest or appeal. As part of
deployment preparations, the CCO must identify and know how to work
with supporting legal counsel. Additionally, protests can sometimes be
averted by frank and open communication with the vendor. Vendors may
recognize significant errors in solicitations and evaluations overlooked
by the CCO due to the pace of the operation. Encourage vendors to attempt
to resolve their concerns with the CCO, then pursue an agency protest if
not resolved by the CCO, and then file with the Government
Accountability Office (GAO) as a last resort. Although the vendor has
complete freedom to protest in any forum, and the CCO is never an
advocate of the vendor, the interests of the government can often be best
protected when vendor concerns are resolved quickly and at the lowest
level.
This chapter discusses actions a contracting officer should take when
notified of a possible protest, claim, dispute, or appeal.
Chapter 7
Protests, Claims, Disputes, and Appeals
Protests
a protest filed with the GAO after the dates contained in subparagraph
FAR 33.104(c)(1), the contracting officer need not suspend contract
performance or terminate the awarded contract unless the contracting
officer believes that an award may be invalidated and a delay in receiving
the supplies or services is not prejudicial to the government’s interest.
Responding to a Protest—the First 24 Hours. The actions the CCO
should accomplish within 24 hours of receipt of a written protest include:
• Chances are that the CCO and the contingency contracting office
have extremely limited administrative support and equipment. GAO
protests are typically document intensive, requiring considerable
copying and collating. Given these circumstances, the CCO and
supporting legal counsel should determine how to best assemble the
agency report.
• The CCO should immediately coordinate with and begin
transmitting key contract documents to supporting legal counsel.
This enables government counsel to understand the facts and issues,
and to assess the merits of the protest early in the process. It also
allows the legal office to begin assembling the agency report to the
GAO.
• Agency Report. The documents required in an agency report to the
GAO include:
• CCO’s statement of relevant facts.
• The bid or proposal submitted by protester.
• The bid or proposal of the awardee.
• The solicitation.
Chapter 7
Protests, Claims, Disputes, and Appeals
Contract Claims
• The CCO should recognize that not every contractor request for
costs or other relief is a claim. A contractor request for equitable
adjustment may be just that—a straightforward request that is
related to changed or increased contract requirements. If so, the
CCO may be able to dispose of such requests relatively quickly.
Unlike requests for adjustments, submission of a contract claim
begins accrual of interest on the claim.
• A working understanding of the flexibility that exists under the
FAR and the Defense Federal Acquisition Regulation Supplement,
an understanding of what is and is not a contract claim, assigning
and maintaining communications with a trained contracting
officer’s representative (COR), ensuring good contract file
documentation exists, and applying alternative dispute resolution
techniques are some ways to mitigate the administrative burden that
contractor claims can place on the CCO and the overall
contingency contracting mission. To help alleviate this burden, the
CCO should seek early and frequent counsel from the supporting
legal office.
Chapter 7
Protests, Claims, Disputes, and Appeals
Seizures
Commanders may, under the principle of military necessity, and subject
to restrictions, seize private property during hostilities. Seizing private
or public property for mere convenience is unlawful. As a result of a seizure
of civilian property, commanders may not leave civilians without
The rules for handling contract disputes and appeals are the same in a
contingency contracting environment as they are for routine contract
actions occurring at home base. Under the Contract Disputes Act, CCOs
receive no special treatment or waiver of applicable rules simply because
a contingency contract action is at issue. As with bid protests, the CCO’s
legal support will likely be provided via a reachback attorney. Experience
shows that early involvement by legal counsel can help avoid an appeal
altogether. That said, if an appeal is received, legal counsel should be
extremely effective in assessing and orchestrating any government
response to a contractor’s appeal. The underlying record of evidence
related to any contract dispute is critical to crafting the government’s
response. Through the application of a few simple practices, the CCO can
locator process that permits the CCO and his successors to identify
and locate witnesses—to include personnel who redeploy away
from the contingency. At a minimum, the CCO should inform key
individuals of the appeal, their role in the appeal, and ensure that
the government can locate them if necessary.
• Contract Files and Related Documentation. The key to success in
prosecuting any contract dispute is the availability of contract
documents. Without the necessary documents, a case is seriously
weakened. Hence, the CCO should establish an administrative
process for obtaining and filing documentation underlying a
contract action.
• Consider developing an electronic contract file where documents,
digital pictures, charts, and other records can be readily stored and
retrieved. Note: CCOs should make an electronic copy of all e-mails
pertaining to claims and include them with the contract file prior to
leaving the AOR. This documentation may be needed later to assist
with claims.
• As appropriate, use your reachback legal office to assemble the
underlying record for any contract appeal (referred to as the Rule 4
file [Title 28a USC, Rule 4]). This is where the CCO’s practice of
establishing an electronic contract file pays dividends.
arising under or relating to the contract, the contracting officer shall use
the disputes clause (FAR 52.233-1) with its Alternate I.
Reminder. In preparing contracts and solicitations, remember to insert
the disputes clause at FAR 52.233-1 unless the conditions in FAR
33.203(b) apply, and to insert the applicable law for the Breach of
Contract Claim clause at FAR 52.233-4.
Chapter Acronyms
ADR – Alternative Dispute Resolution
AOR – Area of Responsibility
CCO – Contingency Contracting Officer
CFR – Code of Federal Regulations
COR – Contracting Officer’s Representative
FAR – Federal Acquisition Regulation
GAO – Government Accountability Office
HCA – Head of Contracting Activity
IAW – In Accordance With
PCRB – Property Control Record Book
SJA – Staff Judge Advocate
US – United States
USC – United States Code
Chapter 7 Notes
Protests, Claims, Disputes, and Appeals
Key Points
. . . . . . . . . . . . 268
Introduction
. . . . . . . . . . . . 268
Cultural
Awareness
. . . . . . . . . . . . 268
Situational
Awareness
. . . . . . . . . . . . 273
Communication with
Vendors (Elicitation,
Espionage, and
Subversion)
. . . . . . . . . . . . 275
Antiterrorism and
Security
. . . . . . . . . . . . 276
Antiterrorist
Countermeasures
. . . . . . . . . . . . 277
Personnel
Recovery
. . . . . . . . . . . . 278
Cultural
Awareness
268 Chapter 8
Introduction
A
s a CCO, your travels will take you to many places around the
globe. With that in mind, this chapter was written to provide you
with an understanding of foreign acquisitions, business advisor
considerations, antiterrorism and security, antiterrorist countermeasures,
and operations security (OPSEC) issues that are inherent with doing
business in a foreign country.
Cultural Awareness
• Recognize other nations may not have lifestyles and habits similar
to our own. Resist the temptation to make value judgments.
• Establish a rapport with local nationals. If you do so, they can
forewarn you about suspicious activities and may even ward off
impending attacks. They may also prevent you from making grave
social errors that might offend other local nationals.
• Try to learn as much of the local language as possible, but
especially know key phrases such as “I need a policeman,” “Help,”
“Fire,” or “I need a doctor.”
• Avoid becoming involved in local politics and steer clear of civil
disturbances.
• Know how to use local telephones and keep sufficient pocket
change on hand to use them.
• Try to blend in with your environment as much as possible. Rather
than going to popular, American-frequented restaurants and bars, try
local establishments suggested by your trusted local national
friends, as the tourist attractions can become targets.
• If major attractions in the country are experiencing security
problems—stay away. Instead, try to keep a low profile by visiting
less frequented places.
Ethics. CCOs should always ensure that the appropriate ethics
regulations are observed. When ethical or procurement integrity
requirements conflict with local practices, CCOs should explain to
contractors the restrictions placed on United States (US) procurement
officials. All personnel should be conscious of the fact that many business
cultures expect kickbacks, finder’s fees, exchange of gifts, or other
gratuities that are illegal for US personnel to provide or accept. Be aware
that many business cultures encourage the use of deceptive techniques
during negotiations; the rule of law and corruption level influence
outcomes. Further, in austere areas contractors may promise more than
they can deliver or faster timelines than are actually possible. CCOs should
conduct site inspections and see the products whenever possible. CCOs
must be vigilant in advising US commanders, requirements personnel,
and CCO appointed representatives about practices which may violate
standards of conduct as prescribed in Department of Defense (DoD)
Regulation 5500.7-R, Joint Ethics Regulation. Personnel should obtain
the assistance of the legal office for guidance with respect to ethics matters.
For more information on ethics see Chapter 1.
Negotiating Practices. Much of the business conducted by contractors
overseas is by negotiation. When setting the price of an item, keep in
mind the first price quoted is usually only a starting position for
negotiations. Be advised most of the foreign contractors with whom you
will be dealing can be shrewd negotiators. Negotiating for lower prices
should be considered a normal business practice. Two or three rounds of
exchange may be the most prudent and effective way to reduce prices
proposed. For supplies, services, and construction, experience in the
USCENTCOM (United States Central Command) theater has shown that
the price drops dramatically whenever discussions are opened up with an
offeror. The CCO’s bargaining position is enhanced when the product or
service is available elsewhere, or the requirement is not urgently needed.
If these two factors are reversed and the contractor is aware of that, the
CCO may be hard pressed to negotiate a better deal.
CCOs must ensure that the government pays a fair and reasonable price.
The availability of the needed supply or service in the local marketplace,
the feasibility of meeting the need from outside the local area, the ability
to secure delivery within the requested time frame, the urgency of the
need, and consideration for the need to build the local economy are all
part of the determination of a fair and reasonable price. As the contingency
environment is dynamic, it is important to document what conditions were
like to support the determination of fair and reasonable price. For
additional information on negotiating practices see Chapter 5.
http://www.cia.gov/cia/publications/factbook/index.html
http://www.globalbusinessleadership.com/
Additional guidance on cultural awareness is listed below.
Situational Awareness
Operations Security Awareness. Your awareness of the security
fundamentals allows you to focus attention on security measures needed
during emergencies and in certain peacetime operations. OPSEC is a
broad-based security program designed to prevent all types of sensitive
information from getting into the wrong hands. Such information can be
Chapter 8
Cultural and Situational Awareness
Antiterrorist Countermeasures
• Air travel
• Government facilities
• Ground travel
• Hostage survival
• Hotel security
• Individual protective measures
• Protecting residence
Chapter 8
Cultural and Situational Awareness
Personnel Recovery
Personnel Recovery Defined. Personnel recovery is the sum of military,
diplomatic, and civil efforts to prepare for and execute the recovery and
reintegration of isolated personnel.
Isolated Personnel. US military, Department of Defense civilians and
contractor personnel (and others designated by the President or Secretary
of Defense) who are separated from their unit (as an individual or group)
while participating in a US sponsored military activity or mission, and
are (or may be) in a situation where they must survive, evade, resist, or
escape.
Personnel Recovery Requirements. The geographic combatant
commander and subordinate commands must plan for the possible
isolation, capture or detention of contractors by adversarial organizations
or governments. Contractors must be included in the personnel recovery
plan as demonstrated in JOPES [Joint Operation Planning and Execution
System] and subordinate operational orders and plans, as well as contractor
integration plans. Regardless of the threat environment, contracts should
require contractors to be personnel recovery trained, to prepare Department
of Defense Form 1833, Isolated Personnel Report (ISOPREP), and to
prepare an evasion plan of action (EPA). The contract should also clearly
identify the organization and responsibility for ensuring personnel
recovery training is accomplished and the ISOPREPs and EPAs are
included in the theater’s personnel recovery plan, and recovering and
reintegrating isolated contractors.
See JP 3-50, Personnel Recovery, for more information on personnel
recovery planning, and ISOPREP, and EPA development.
See Chapter 4 for additional information on personnel recovery.
Chapter Acronyms
CAAF – Contractors Authorized to Accompany the Forces
CAOCL – Center for Advanced Operational Culture Learning
CCO – Contingency Contracting Officer
CID – Criminal Investigation Division
DoD – Department of Defense
EPA – Evasion Plan of Action
FOO – Field Ordering Officer
ISOPREP – Isolated Personnel Report
JOPES – Joint Operation Planning and Execution System
NCIS – Navy Criminal Investigation Service
OO – Ordering Officer
OPSEC – Operations Security
OSI – Office of Special Investigation
SOFA – Status of Forces Agreement
US – United States
USAFRICOM – United States Africa Command
USCENTCOM – United States Central Command
USPACOM – United States Pacific Command
USSOUTHCOM – United States Southern Command
Disaster
Response
282 Chapter 9
Introduction
D
omestic emergencies affect the public welfare, endanger life and
property, or disrupt the usual process of government. Domestic
emergencies may result from enemy attack, a natural disaster
Chapter 9
Domestic and Overseas Disaster Response
Domestic Emergencies
contingencies, but has some nuances that can make it very different than
planning and executing contracting support in foreign contingencies.
The National Response Framework (NRF). The NRF is an all-hazards
plan that provides the structure and mechanisms for national-level policy
and operational direction for incident management to ensure timely and
effective federal support. The NRF is applicable to all federal departments
and agencies that have primary jurisdiction for, or participate in,
operations requiring coordinated federal response. The NRF identifies
how federal departments and agencies will respond to state, tribal, or local
requests for assistance (RFA). The NRF is coordinated and managed by
FEMA. The overall coordination of federal incident management activities
is executed through the Secretary of Homeland Security. See http://
www.fema.gov/pdf/emergency/nrf/about_nrf.pdf for more information.
Robert T. Stafford Act. The Robert T. Stafford Disaster Relief and
Emergency Assistance Act (Public Law 107-136) (42 USC Section 5121),
Chapter 9
Domestic and Overseas Disaster Response
incidents that range from the serious but purely local, to large-scale or
catastrophic disasters.
Normally, FEMA is the lead federal agency in domestic emergency
operations. When required, US military support assists FEMA or other
lead federal agencies as directed by DoD. Generally, this military support
comes in the form of organic military forces with limited contracted
support. Additional information on disaster or emergency response
contracting can be found at www.acquisition.gov. The following are key
principles for providing contracting support during domestic disaster and
emergency operations:
the NGB JTF-State may also form and dispatch a contracting tiger team
of experienced contracting personnel capable of soliciting, awarding, and
administering large service and military construction contracts.
because it is not in the FAR. The fact that the FAR does not endorse a
particular strategy or practice does not necessarily mean that it is
prohibited by law, executive order, or other regulation. (FAR 1.102-4(e))
Micro-Purchases
1
(Normally under $3K ) See definition at FAR 2.101
1
– $15K per transaction within the United States
1
– $25K per transaction outside the United States
may not find out your contractor is not qualified until after contract
award, when the contractor can’t obtain performance and payment
bonds. This is a local judgment call, but the use of terminations for
convenience is a viable alternative in this situation. Bid bonds can
be waived due to the emergency circumstances; however, there are
no provisions available to the contracting office to waive
performance and payment bonds. If a contractor is unable to obtain
this bonding on a construction contract, the contract must be
terminated.
Long-Term Issues. The effects of a disaster often last beyond the initial
recovery effort. If the disaster causes extensive damage to the installation,
recovery can take a long time. While most long-term support involves
administering construction contracts, there are other long-term efforts.
This section discusses long-term contracting issues and offers suggestions
to avoid common pitfalls.
• The type of emergency involved and the associated needs with each
phase of the emergency (such as initial response and recovery).
• The types of acquisition vehicles that were relied on, contract terms
and conditions, and prices paid.
• Roles and responsibilities assumed by other agencies providing
acquisition assistance and the interagency agreements used to
document responsibilities.
• How the acquisitions were funded.
• The types of logistical challenges encountered in delivering
products and services, and steps taken to address these challenges.
• Any legal issues that arose.
• Management’s overall assessment of agency and contractor
performance.
Chapter 9
Domestic and Overseas Disaster Response
On-Scene Operations
Initial contracting actions during a recovery effort are the most critical.
How you assess your support capabilities and how widespread the damage
is will set the tone for the entire recovery process.
Activating Recall Procedures. Your first priority during an emergency
is to get your personnel to work. If you are fortunate, you will be able to
contact them by telephone or recall announcements over the radio or
television. You may, however, have to go house to house to recall
Chapter 9
Domestic and Overseas Disaster Response
personnel. The more personnel you are able to recall, the more
comprehensive your support will be.
Assessing Damage to the Contracting Office. Quickly assess the
physical appearance of the contracting office. Assess its overall
functioning capabilities and decide whether to stay or relocate to your
alternate site. At a minimum, you must find a site where personnel safely
may access tables, desks, and phones. Consider the following when
evaluating the contracting office and alternate sites:
• Establish one focal point for each customer. The local commander
will have the majority of initial inputs, some of which may not have
been properly coordinated. Communicate to the commander that
you need one point of contact for all requests.
• Establish comprehensive procedures for receiving goods. Have a
central receiving point for all goods brought into the installation. If
the goods are delivered directly to the customer, establish a point of
contact and instruct the customer on the proper method of receiving
goods. Make your customer responsible for the timely submission
of paperwork.
Dealing with Rental Requests. During the first week of recovery there
may be numerous requests for rental of equipment, vehicles, and
temporary living and office quarters. Consider the following factors before
filling your customers’ requests.
Heavy Equipment. Before renting, first make sure you cannot borrow
the equipment from other bases, posts, military installations, or federal
agencies. During hurricane recovery operations at Charleston and Shaw
Air Force Bases, several pieces of equipment were received from other
installations and the Southwest Asia (SWA) transportation unit at Seymour
Johnson Air Force Base. The SWA unit alone transported 42 pieces of
heavy equipment and vehicles to Shaw and 17 pieces to Charleston. There
are two reasons to exhaust all internal sources before renting:
Chapter Acronyms
AAR – After Action Report
BPA – Blanket Purchase Agreement
CCO – Contingency Contracting Officer
CCR – Central Contractor Registration
DFARS – Defense Federal Acquisition Regulation Supplement
DLA – Defense Logistics Agency
DoD – Department of Defense
DoDI - Department of Defense Instruction
DOS – Department of State
EFT – Electronic Funds Transfer
ER – Emergency Response
FAR – Federal Acquisition Regulation
FDR – Federal Disaster Relief
FEMA – Federal Emergency Management Agency
GCPC – Governmentwide Commercial Purchase Card
GPS – Global Positioning System
HCA – Head of Contracting Activity
ICS – Incident Command System
NGB-JTF – National Guard Bureau Joint Task Force
NGO – Nongovernmental Organization
NRF – National Response Framework
OPLAN – Operation Plan
RCP – Requisition Control Point
RFA – Request for Assistance
SWA – Southwest Asia
US – United States
USC – United States Code
Chapter 9 Notes
Domestic and Overseas Disaster Response
T
he Defense Contingency Contracting Handbook is designed to
provide general guidance on contracting in a contingency
environment. However, the contingency contracting world is
extremely complex and requires an understanding that is much more
extensive than the handbook’s scope. The Web site and DVD are designed
as a supplement to the handbook and to provide additional resources for
the contingency contracting officer.
There are more than 1,000 additional resources available on the DVD/Web
site. This chapter highlights the most commonly used resources available
via the Defense Contingency Contracting Handbook Web pages (Figure 11).
Topic Checklist Training Scenarios Guides Games Tools Policy Templates Forms
A
Agreements X X
Administra-
X X X X X X X X
tion
Acquisition
Planning
X X X X X
Advanced
Echelon
Team
X
(ADVON)
After Action
Reports
X X X X
Alternative
Dispute
Resolution
X X
(ADR)
Antiterrorist
Countermea- X X X
sures
B
Blanket
Purchase
Agreements
X X X X X X
(BPA)
Bona Fide
Needs Rule
X X
C
CCO
Authority
X X
Changes
Clause
Resources
DVD/Web Site
316 Chapter 10
Additional Resources Available on the DVD/Web Site
Civilian Deployment X
Civil Augmentation
Programs (CAP)
Claims X X X X X X
Command/Contracting
X X X X X X
Lines of Authority
Commercial Contracts X X X X
Conflict of Interest X X X X
Construction Contracts X X X X X X X X
Constructive Changes
Contingency Contracting
Support Phases
Contract Closeout X X X X X
Contract Types X
Cost-Reimbursement X
Definite Quantity X X X
Fixed Price X
Incentive Type X
Indefinite Delivery X X X
Letter Contracts X X X X
Requirements
Contracts
Contracting Officer's
X X X X
Representative (COR)
Contractor Security X X X
Contractors Authorized to
Accompany Forces X X X X X
(CAAF)
Cost Analysis X X X X X X
Cultural Awareness X X X X
Cure Notice X X X
D
Determination & Findings
X X
(D&F)
Disputes and Appeals X X X X X X
Domestic Emergency
X X X
Operations
E
Emergency Acquisition
X X X X X
Authorities
Ethics X X X X X
CTIP X X X X
Fraud Indicators X X X
Gift Prohibition X X X X
F
Field Ordering Officer
(FOO)/Ordering Officer X X X X X
(OO)
File Management X X
Forms X X X X
AF Form 9 X X X
AF Form 4009 X
DD 360 CARS X
DD 1149 X
DD 1155 X
DD 1348 X
DA 3953 X
NAV SUP 1250-2 X
SF 44 X X X X X
SF 1449 X X X X
Funding X X X X X X X X
Accounting Classification
X
Codes
Fiscal Law X X
Foreign Disaster
X
Assistance
Fund Cites
Government Financing
Options
Fund Types X X X X X X X X X
CCIF
CERP X X
MILCON X X
NAF X X X X X X
ORF X
O&M
OHDACA X
G
Government Estimates X X X
Governmentwide
Commercial Purchase X X X X X X X X
Card (GCPC)
H
Host Nation Support
X
(HNS)
Humanitarian and Civic X
Assistance (HCA)
I
Imprest Fund and Third
X X X X X X
Party Drafts
Initial Set-up Actions X X X X X X
J
JCC I-A Info X X X X X
J&As X X X X X
L
Lease or Purchase X X X X
Liquidated Damages X
M
Maintenance and Repair X
Modifications X X X X X X
Market Research X X X X X
N
NATO Tasking X
O
Options X X X X
P
Past Performance X X X X
Performance-Based
X X
Requirement
Preconstruction
X
Conference
Predeployment Planning X X X X
Pricing X X X X X X
Certified Cost and
X X X
Pricing Data
Fair and Reasonable X X X X
Price Negotiation
X X X X
Memorandum (PNM)
Procurement
X X
Appropriation
Proof of Delivery X X
Protests X X X X X X
Purchase Request (PR) X X X X X X
PR Logs X X
Q
QAE X X X X
QASP X X
R
Ratifications X X X X X X
Receiving Reports X X X X
Release of Claims X
Request for Proposal
X X
(RFP)/Quote (RFQ)
Requirements Packages X X X X
S
Services X X X X X X
Shipments of Supplies
X X X
and Services
Show Cause Notice X X X
Simplified Acquisitions X X X X X X X
Site Survey X X
Sole Source X X
Source Selection X X X X X X X
SOW X X X X X
Supplies X X X X
T
Technical Evaluations X X X X
Terminations X X X X X X
Thresholds
Transportation X X X
U
UCAs X X X
Unauthorized
X X X
Commitments/Ratifications
W
Warrants-CCO
X X X
Appointments
T
here are over 1,000 additional resources available on the Defense
Contingency Contracting Handbook’s supplemental DVD/Web
site, but in the fast-paced contingency contracting environment,
finding that much-needed resource may take too much time. This chapter
provides the general structure of the DVD/Web site. It also provides tips
to reduce search time on the Web site.
The DVD is an exact copy of the Web site (with respect to contents).
The DVD exists for those who do not have Internet capability. The DVD
is enclosed in an envelope as Attachment 1 at the back of the Defense
Contingency Contracting Handbook. Please note that you must click the
file labeled “Start.html” to launch the DVD. The Defense Contingency
Contracting Handbook Web site is located at http://www.acq.osd.mil/
dpap/pacc/cc/jcchb/.
Using the
DVD/Web Site
322 Chapter 11
Using the Supplemental DVD/Web site
section in Chapter 1 entitled “Gift Prohibition.” Within the text, there are
hundreds of hot links which allow you to quickly access relevant FAR
references, forms, Web sites and much more.
Index
A Choice of Law 174
Abandoned or Unclaimed Property 243 Civil Augmentation Programs 97
Acquisition and Cross-Servicing Claims Under ADR 262
Agreements 90 Class Determinations and Findings 159
Acquisition Method 156 Class J&As 162
Acquisition Process 190 Closeout of CCO, Field Ordering
Acquisition Process and Contracting Related Officer 243
Boards 55 Combat Trafficking in Persons 16
Action Upon Receipt of Protest 250 Combatant Commander Initiative Fund 68
Administration Documentation 213 Combatant Commander Logistics
Administrative Change 232 Procurement Support 56
Administrative Requirements for Command Authority 29
Referrals 104 Commanders’ Emergency Response
ADR Elements 262 Program 69
Advance and Partial Payments 196 Commercial Advance and Interim
Advance Planning for Emergencies 296 Payments 197
Advanced Echelon Teams 88 Commerciality of the Requirement 155
After Action Reports 86, 300 Common Fraud Indicators 20
Air Force Contract Augmentation Common Fraud Offenses 18
Program 99 Common Fraud Schemes 18
Antiterrorism and Security 276 Competition Requirements Under SAP 145
Antiterrorist Countermeasures 277 Conflict of Interest 13
Authorities and Structure 28 Construction Contract Administration 222
Constructive Change 232
B Contingency Approval Thresholds 177
Balance of Payments Program 166 Contingency Contracting Officer’s
Basic Contracting Processes 143 Authority 30
Berry Amendment 168 Contingency Contracting Support
Best Value and Trade-Off 192 Phases 110
Bilateral Modifications 233 Contingency Funding and Requirements
Blanket Purchase Agreements 185 Process 40
BPA Authorized Caller 188 Contingency Operations 80
BPA Authorized Callers Accounts 243 Contingency Threshold Requirements 79
Bulk Funding 60 Contract Action Reporting 204
Buy American Act 165 Contract Administration 212, 217
C Contract Claims 255
Contract Closeout 241
Cash Advances 196 Contract Disputes and Appeals 259
CCO Continuity Book 87 Contract Files 213
CCO’s Final Decision 257 Contract Modifications 230
Change Orders 231 Contract Monitoring 225
Changes Clause 234 Contract Monitoring System 226
Chapter Acronyms 25, 37, 71, Contract Payments 220
135, 208, 244, 264, 279, 312 Contract Settlements and Alternative Dispute
Checks and Balances 23 Resolution 261
Topical
Index
328 Topical Index
Key Points
of Contact
A1-2 Appendix 1
Notes
Critical Checklists
Critical
Checklists
A2-4 Apendix 2
Checklist Notes
Blanket Purchase Agreements Checklist
Reference: FAR 13.303, Blanket
Item Purchase Agreements (BPAs) Applicable
Number Reference: FAR 16.7, Agreements and Present
Does it meet the circumstances at FAR
1
13.303-2?
Is it prepared in accordance with FAR
2 13.303-2?
BPA
A2-6 Apendix 2
Checklist Notes
Construction Contract Checklist
Note: Procedures may differ based on
the AOR. Contact responsible
Item component OPR for command-specific Applicable
Number procedures. and Present
PRE-AWARD DOCUMENTS
Is there a certified purchase request and
independent government cost estimate (required
1 if exceeding the SAT)? (FAR 36.203 and
DFARS PGI 236.203)
Is the project for minor construction (O&M funds
(10 USC 2805, unspecified minor construction)
2 up to $750K or $1.5M to correct conditions that
present a threat to life, health or safety?
Has CE and contracting reviewed/determined if
a stand-alone construction contract or an IDIQ
3 contract (roofing, asbestos removal, paving) is
most appropriate?
Does the requirements package include a SOW,
4 specifications, drawings, performance period,
and liquidated damages?
Is a source list and market research results
5 included?
If other than full and open competition, are the
6 appropriate justification and approval/related
correspondence included?
Did the solicitations state the magnitude of the
construction project (requirement in terms of
7 physical characteristics and estimated price
range)? (FAR 36.204 and DFARS 236.204)
Were competitive proposals utilized in order to
8 allow for discussions? (FAR 6.401(b)(2)
Are the appropriate determinations/approvals
and determinations and findings included?
9 (liquidated damages, Buy American Act,
construction materials exception) (FAR 11.501 &
FAR 25.202)
Are the invitation for bid/request for
10 proposal/amendments included in the file?
Is a pre-bid, pre-negotiation conference/site visit
11 required/documented?
Construction
Contract
A2-8 Appendix2
Critical Checklists
CONTRACT ADMINISTRATION
Did the contractor submit a progress schedule
30 and progress reports?
Before progress payments are made, are
invoices compared with progress reports
separately submitted by both the contractor and
31 contracting officer technical representative and
are copies of payment vouchers included in the
file?
Are the drawings, specifications/statement of
32 work, and material approval submittals on file?
Did the CCO evaluate contractor performance
and prepare a performance report using the DD
Form 2626, Performance Evaluation
33 (Construction), for each construction contract of
$550K or more or more than $10K, if the
contract was terminated for default?
Was a punch list of discrepancies provided and
34 resolved before final inspection and
acceptance?
Does the file include final inspection and
35 acceptance documentation from the requiring
activity?
Is a release of claims submitted and signed by
36 the contractor after contract completion?
Is there a contract completion statement (DD
37 Form 1594)?
Apendix 2
Checklist Notes
Section Title
Part I. The Schedule
Section A–Solicitation/contract form
Section B–Supplies or services and prices/costs
Section C–Description/specifications/statement of
work
Section D–Packaging and marking
Section E–Inspection and acceptance
Section F–Deliveries or performance
Section G–Contract administration data
Section H–Special contract requirements
1a
Part II. Contract Clauses
Section I–Contract clauses
Contract
Administration
A2-14 Appendix2
Critical Checklists
Expedited
Procedures
A2-20 Appendix2
Critical Checklists
Gratuities
A2-28 Appendix2
Critical Checklists
Contracting Officer
Atch
Receipt from finance
Apendix 2
Checklist Notes
J&A
A2-32 Appendix2
Critical Checklists
Letter
Contracts
A2-36 Apendix 2
Checklist Notes
Contingency Micro-Purchase Checklist
Note: Procedures may differ based on the
Item AOR. Contact responsible component Applicable
Number OPR for command-specific procedures. and Present
1 Is funding certified and available? (FAR 32.702)
Did CCO verify requirement cannot be met through
2 required sources of supplies/services? (FAR
13.201(e) and FAR 8.002)
Will the purchase of supplies or services be used
to support a contingency operation or to facilitate
3 defense against or recovery from nuclear,
biological, chemical, or radiological attack?
(13.201(g)(1)) Note: see thresholds below.
-$15K in the case of any contract to be awarded
and performed, or purchase to be made, inside the
US. (13.201(g)(1)(i))
3a
-$25k in the case of any contract to be awarded
and performed, or purchase to be made, outside
the US. (13.201(g)(1)(ii))
To the extent possible, did the CCO distribute
4 micro-purchases equitable among qualified
suppliers? (FAR13.202(a)(1))
If micro-purchase was awarded without soliciting
5 competitive quotes, did CCO determine the price
was reasonable? (FAR 13.202(a)(2))
Micro-Purchase
A2-38 Apendix 2
Checklist Notes
Modification Checklist
Answers to the following questions should be Applicable
Item and
Number in the affirmative: Present
The work contained in the modification is within the
1
scope of work of the statement of work.
The dollar value of the modification is within scope.
The impact of a dollar change for purpose of scope
2 determination should be evaluated on a case-by-
case basis; however, a change of 25% in dollar
value can be used as a guide.
If the work and/or dollar values are determined to
3 be out of scope, has a J&A been executed? (FAR
6.304)
Funding being used for the modification is
consistent with the work being done (correct fund
type, year, purpose). If applicable, bonafide need
4
considerations have been addressed. In addition,
the funding document meets the requirements to
address environmental considerations.
The change in contract value that would result from
the modification does not exceed any statutory
5 levels approved for the project. This review
prevents entering into an Antideficiency Act
violation.
An independent government technical assessment
of the impact of the modification in terms of
manpower and labor hours and other direct costs is
6
accomplished by the functional and provided to the
contracting officer for use in developing the pre-
negotiation objective.
The contracting officer has developed a
7
prenegotiation objective?
Legal review has been accomplished for all actions
8
for which legal review is required?
The modification indicates, by contract section, the
9
changes made to the contract.
Changes to Section B and the contract amount
10
shown on the award form area have been
Modifications
A2-40 Appendix2
Critical Checklists
Ratifications
A2-46 Appendix2
Critical Checklists
Requiring
Activity
A2-50 Appendix2
Critical Checklists
SF 44
A2-58 Apendix 2
Checklist Notes
Simplified Acquisition
Note: Procedures may differ based on the area of
responsibility (AOR). Contact responsible
Item component office of primary responsibility (OPR) Applicable
Number for command-specific procedures. and Present
Purchase Request (FAR 32.702)
a. Electronic or original funding documentation in file?
1 b. Funds increase letter in file (if applicable)?
c. Fund cite matches award and sufficient funds
available?
Perform Market Research/Competition
a. Review required sources of supply? (FAR 8.002)
b. If <simplified acquisition threshold, did the CCO
2
consider solicitation of at least three sources to
promote competition to the maximum extent
practicable? (FAR 13.104(b))
Are acquisitions >micro-purchase threshold
3 publicized IAW agency regulations? (FAR 5.101, FAR
5.202(a)(12) and FAR 5.303 exceptions)
Has the acquisition plan been ap proved by the
4 appropriate authority and does it meet the content
requirements of FAR 7.105 and DFARS 207.105?
Did the CCO forward actions as required to the
appropriate board/council (Joint Contracting Support
5
Board/Acquisition Strategy Council) for review and
approval as required?
Were determination and findings (FAR 1.704)
included as required (commercial contract, fair and
reasonable price, time and materials contract, period
6
of performance extension, exercise of options) (See
accompanying handbook DVD for a summary listing
of D&Fs)?
Solicitation
a. Is a copy of the solicitation in file? (If
synopsis/solicitation is done, place that in file)
b. If a service > $2500 and SCA is applicable, was an
7 SF 98 to include applicable wage determination? (If
SCA exempt, include FAR 52.222-48 in solicitation
which must be completed and returned with proposal.
SCA nonapplicability memo signed by CCO must
also be in file)
Simplified
Acquisition
A2-60 Appendix2
Critical Checklists
Site
Activation
A2-66 Appendix2
Critical Checklists
Terminations
A2-70 Apendix 2
Checklist Notes