DTRA How-To Guide. Economy Act. Version: June 23, 2014 (CAE Approved) Acquisition Management Department (J4A)

Transcription

1 DTRA How-To Guide Version: June 23, 2014 (CAE Approved) Acquisition Management Department (J4A)

2 Table of Contents 1.0 Preface Requirements Basic Requirements Process Orders Obligations Support Agreements Department of Energy Work for Others Program Federal Budgeting Process and Appropriations Authorization and Appropriation Limitations on Obligations of Appropriated Funds Roles and Responsibilities...18 Acronyms...19 Page 2 of 21

3 1.0 Preface The, 48 CFR (31 U.S.C. 1535), authorizes agencies to enter into agreements to obtain supplies and services by interagency acquisition. It also provides authority for the placement of orders between major organizational units within an agency. The applies to an acquisition when more specific authority does not exist (for example, 40 U.S.C. 501 for Federal Supply Schedules or 40 U.S.C (3) for Government-wide Acquisition Contracts). While the objectives of the are viewed as beneficial, to avoid abuse of the Act s flexibilities, Congress has placed four basic conditions on the use of the authority: 1. Funds Available Money must be available, and the purpose of the product or service must be for something the ordering agency is authorized to do. 2. Interest of the Government The head of the ordering agency must determine that the order is in the best interest of the Government. 3. Performing Agency s Position The performing agency (or servicing agency) must be able to provide the goods and services. The objective of the statute is to permit an agency to take advantage of another agency s expertise or experience, not merely to dump work or funds or avoid legislative restrictions. 4. Lower Cost The ordering (or requesting) agency must determine that it cannot obtain the goods or services as conveniently or economically by contracting directly with a private source. This How-To Guide covers the use of the at the Defense Threat Reduction Agency (DTRA). Within this How-To Guide, DTRA may also be referred to as the Agency/Center. Page 3 of 21

4 DTRA Acquisition Process Figure 1 depicts the DTRA Acquisition Process, highlighting where the Economy Act fits in the process. Figure 1 Figure 1 Key: ASRD = Acquisition Strategy Review Document; BAA = Broad Agency Announcement; CPARS = Contractor Performance Assessment Reporting System; FSS = Federal Supply Schedule; GWAC = Government Wide Acquisition Contract; ID/IQ = Indefinite Delivery/Indefinite Quantity; IO = Interagency Order; MIPR = Military Interdepartmental Purchase Request; PWS = Performance Work Statement; RFP = Request for Proposal; SAP = Simplified Acquisition Procedures; SOO = Statement of Objectives; SOW = Statement of Work. Page 4 of 21

5 2.0 Requirements The is used to obtain goods and/or services from another DoD or Federal agency under the of 1932 (31 U.S.C. 1535). DTRA, as the requesting agency, performs this type of transaction by issuing a purchase request to the other agency, known as the servicing agency. The funding documents used are military interdepartmental purchase requests (MIPRs) and interagency orders (IOs). References: (a) of 1932 (31 U.S.C. 1535). (b) Federal Acquisition Regulation (FAR) Subpart 17.5 (Interagency Acquisitions) (c) FAR Subpart 8.4 (Federal Supply Schedules) (d) Defense Federal Acquisition Regulation Supplement (DFARS) Subpart 208 (e) FAR Subpart (Federally Funded Research and Development Centers) requirements apply to all transfers of funding actions except when a more specific authority applies to the acquisition (reference FAR (b)). Examples include acquisitions from required sources of supplies and services as prescribed in FAR 8.4 and supplemented by DFARS 208. In cases where more specific authority exists, the Agency/Center shall follow those specific statutory requirements and related guidance. The applies to both MIPRs and IOs and may not be used to circumvent any conditions or limitations imposed on the use of the funds. For DTRA purposes, the Initial Strategy Session (ISS), Acquisition Strategy Review (ASR), Determination and Findings (D&F), and documented market research are sufficient to document an appropriate level of acquisition planning for an action. No formal written acquisition plan is required for an action; the acquisition plan is the responsibility of the servicing/performing agency. For actions, market research report requirements are fulfilled by summarizing on the Acquisition Strategy Review Document (ASRD) the market research that was conducted. The summary of a few sentences to several paragraphs should be sufficient to demonstrate that adequate market research, Page 5 of 21

6 commensurate with the complexity and/or value of the acquisition, has been performed. The ASRD must be signed by a DTRA certified Program Manager (PM), a Contracting Officer (KO), and a Financial Manager. The use of contracts through other agencies is a common way to acquire supplies and/or services when it is the best method of procurement. To satisfy the requirements of the FAR, the acquisition team must evaluate whether using another agency s contract vehicle is in DTRA s best interest. In doing so, the team must consider schedule, cost effectiveness, and contract administration/oversight. This evaluation, and the acquisition team s rationale for arriving at their conclusion, must be included in the MIPR or IO package. As part of the evaluation, the acquisition team should: Determine that the tasks to be accomplished or supplies to be provided are within the scope of the servicing agency contract if one is being used. Review funding to ensure that it is used in accordance with appropriation limitations. As appropriate, identify and provide any unique terms, conditions, and requirements to the servicing agency for incorporation into the contract or order. The servicing agency should comply with all applicable DoDunique statutes, regulations, directives, and other requirements. While the Project Officer/Project Manager (PO/PM) have primary responsibility for ensuring compliance, success cannot be achieved without a team approach that includes support from the Contracts Department (J4) and Comptroller Department (J8). Federally Funded Research and Development Centers A Federally Funded Research and Development Center (FFRDC) is an entity that meets some special long-term research or developmental need which cannot be met as effectively by existing in-house or contractor resources. FFRDCs facilitate an agency s use of private sector resources to accomplish research and development tasks that are integral to its missions and operations. The centers are operated, managed, and/or administered by universities, not-forprofit organizations, or industry firms. DTRA can acquire FFRDC services by: Page 6 of 21

7 Issuing an order to the sponsoring agency, who in turn issues an order or other contracting mechanism to the FFRDC under the terms of their FFRDC contract, or When permitted by the sponsor, contracting directly with the FFRDC. The work required must fall within the purpose, mission, and general scope of the effort or special competency of the FFRDC; accomplishing the effort must not place the FFRDC in competition with private industry. It is not the Government s intent that an FFRDC use its privileged information or access to installations, equipment, and real property to compete with the private sector. However, when the work is not otherwise available from the private sector, an FFRDC may perform work for other than the sponsoring agency under the or other applicable legislation. See FAR (a) for more information. MIPR and IO Package Review and Approval MIPR and IO packages submitted for review and approval should be prepared in accordance with this Guide. Efforts that fall under existing D&Fs (assuming adequate scope and ceiling) remain valid until expiration of the existing D&F. For recurring requirements where a blanket D&F is in place, the applicability of the D&F must be verified each time it is used. The D&F requirement for MIPRs can be satisfied with a support agreement (DD Form 1144). The support agreement must have the specific language required to satisfy the D&F and must be signed in accordance with DTRA support agreement policy. 2.1 Basic Requirements DTRA considers all orders sent to another agency to acquire goods or services, regardless of the statutory authority cited, as acquisitions. The Agency/Center performs this type of transaction by issuing: A MIPR. The servicing agency is within DoD (interservice/intraagency Support). An IO. The servicing agency is another Federal agency outside the DoD, e.g., the Department of Energy (interagency support). Page 7 of 21

8 The majority of IOs that DTRA sends to other Federal agencies fall into the category of Interagency Assisted Acquisitions, for which the servicing agency executes a contract action on behalf of the requesting agency. Note: If DTRA contemplates using a non-defense agency to conduct an acquisition on its behalf, Section 801 of Public Law requires the non-defense agency to comply with all applicable procurement requirements of the Defense Agency. If the non- Defense agency fails to certify that it will adhere to DoD procurement requirements, then the Defense Agency (e.g., DTRA) must process a waiver for Section 801 compliance. It is important to include all known and anticipated requirements in the waiver package. Otherwise, once the initial procurement is approved, an additional waiver is required for any work later found to be needed but not included in the original package for that fiscal year. A list of agencies that have certified in accordance with Section 801 or have received a waiver can be found at DTRA s Section 801 information page. The funding document, statement of work, and other supporting documentation sent to the servicing agency should clearly reflect the intended work, including when the work will be completed and how the funding will be used (the purpose, time, and amount of the appropriation). It is important to clearly set forth the requirements and purpose of the order. Ensure that orders are specific, definite, and certain as to the work that is required. For most orders, whether by MIPR or IO, a D&F must be provided by the PO/PM and approved/signed by the KO. According to 31 U.S.C. 1535, FAR (c), Requirements for determination and findings (D&F) : (1) Each order to obtain supplies or services by interagency acquisition shall be supported by a determination and findings (D&F). The D&F shall state that (i) Use of an interagency acquisition is in the best interest of the Government; and (ii) The supplies or services cannot be obtained as conveniently or economically by contracting directly with a private source. Page 8 of 21

9 (2) If the order requires contract action by the servicing agency, the D&F must also include a statement that at least one of the following circumstances applies: (i) The acquisition will appropriately be made under an existing contract of the servicing agency, entered into before placement of the order, to meet the requirements of the servicing agency for the same or similar supplies or services. (ii) The servicing agency has the capability or expertise to enter into a contract for such supplies or services that is not available within the requesting agency. (iii) The servicing agency is specifically authorized by law or regulation to purchase such supplies or services on behalf of other agencies. (3) The D&F shall be approved by a contracting officer of the requesting agency with authority to contract for the supplies or services to be ordered, or by another official designated by the agency head, except that, if the servicing agency is not covered by the Federal Acquisition Regulation, approval of the D&F may not be delegated below the senior procurement executive of the requesting agency. (4) The requesting agency shall furnish a copy of the D&F to the servicing agency with the order. 2.2 Process An acquisition process under the is very similar to processing a contract action, and many of the pre-/post-award activities are the same. This includes defining the requirement, ensuring funds are available, conducting market research, planning the acquisition, monitoring execution, and closing out the order when work is complete. The required documentation is similar to that for a contract action. The following checklists outline required documentation: Purchase Request Checklist for MIPR Purchase Request Checklist for IO Page 9 of 21

10 The checklists can be accessed in the Acquisition ToolBook: Page 10 of 21

11 2.3 Orders Each order is supported by a written D&F (FAR (c)), statute, or support agreement signed by an authorized DTRA official. The D&F identifies the servicing agency, describes the requirement, outlines the period of performance, and identifies any fees applied. It explains: Why the action is in the best interest of the Government; Why the goods/services cannot be provided as conveniently by contracting directly with commercial businesses or public and private organizations, such as universities; The unique capabilities of the servicing agency that are not available at DTRA; How goods/services are clearly within the scope of the servicing agency s mission; and If an action is something the servicing agency normally contracts for itself. FAR requires that the determination concludes that the action constitutes the most advantageous strategy. Generally, it is the responsibility of the KO to review and accept/approve the D&F. However, for IOs to servicing agencies not covered by the FAR (e.g., the Federal Aviation Administration, the Central Intelligence Agency, the Tennessee Valley Authority, and the Library of Congress), the D&F shall be approved/signed by the Senior Procurement Executive. The D&F and requirements document (statement of work, performance work statement, or statement of objectives) are sent to the servicing agency with the funding document. Page 11 of 21

12 2.4 Obligations Two types of obligations exist with orders: Cost Reimbursable (MIPR or IO): An order is accepted into a DoD appropriation account or business operation fund, and the servicing agency invoices against the appropriation. Funds are obligated when the acceptance is returned and the obligation is recorded in the Defense Agencies Initiative (DAI) system. Accounting is accomplished by both the servicing agency and requesting agency. Direct Cite (MIPR Only) Citation of customer funds as the financing source is included on a servicing agency s contract documents. (The DTRA line of accounting is inserted into the funding line of the servicing agency contract.) Funds are obligated upon receipt of the obligating document from the servicing agency and entered into the financial database. All accounting is accomplished by the requesting or ordering activity. The advantages of one type, as opposed to the other, depend on the amount of oversight and visibility into expenditures of funding required and the recognition of administrative costs. With a direct-cite MIPR, accounting for expenditures is accomplished by the requesting/ordering agency. With a cost-reimbursable MIPR, the servicing agency must track and report accounting of all expenditures, and the requesting/ordering agency must verify. Page 12 of 21

13 3.0 Support Agreements Support agreements record an agreement between two or more Government parties to acquire supplies and/or services. Agreements within the DoD between DoD units are called Intra-Agency Support Agreements (Interservice Support Agreements), while agreements with organizations outside the DoD are called Interagency Support Agreements (Intergovernmental Support Agreements). Details can be found in DoD Instruction , Enclosure 3, Section 2. Note: DoD Instruction does not apply to Assisted Acquisition Interagency Agreements. There are four types of support agreements: 1. Memorandum of Understanding (MOU); 2. Memorandum of Agreement (MOA); 3. Interservice/Intragovernmental Support Agreement (ISA or IGSA); or 4. Assisted Acquisition Interagency Agreement (IA). Each type is described in greater detail below: 1. MOUs document general areas of understanding between parties where the actions of one party generally do not depend on the actions of the other party. MOUs are used within the DoD or between DoD and non-dod Federal activities. Normally, there is no funding associated with them. 2. MOAs are used to document support requirements more specific than an MOU. The actions of one party may depend on the actions of the other party. They are used within DoD or between DoD and non-dod Federal activities. 3. ISAs or IGSAs are used to document recurring reimbursable support between agencies. They are used within DoD or between DoD and non- DoD Federal activities. 4. Assisted Acquisition IAs are used for assisted acquisitions with an organization outside DoD. If the assisted acquisition is over $500,000, the IA must follow the Office of Management and Budget (OMB)/Office of Federal Procurement Policy (OFPP) IA format, which has two parts: Part A An umbrella agreement covering all programs between the two agencies. Page 13 of 21

14 Part B Different for each specific project, it includes the elements of a typical IO Package (statement of work, D&F, etc.). Note: DTRA uses the procurement package uploaded into the standard DAI financial management system to satisfy Part B requirements; a separate Part B form is not required. 4.0 Department of Energy Work for Others Program Special conditions apply when using the Department of Energy (DOE) Work for Others (WFO) Program. Defense Procurement and Acquisition Policy has addressed these special conditions via a memo, which affects all DOE WFO programs in excess of $150,000. A warranted DoD KO will ensure each program meets the specific conditions outlined in the memo by verifying that: Sufficient market research has been completed and sufficient documentation exists to demonstrate that the specific DOE location/center is capable of performing the required tasks. The description of the supplies and/or services to be provided is specific, definite, and certain. Either an D&F (FAR 17.5, DFARS 217.5) has been properly executed for the requirement or, if the is not the authority under which DOE will be operating when executing the requirement, the requirements of DFARS (b) have been met and a Best Interest Determination/Best Procurement Approach determination (FAR 17.5) has been executed. An IA Part B, in the general format prescribed by the OFPP (June 2008), as amended, has been prepared and executed for the requirement. The IA Part B shall affirmatively document all DoD-unique requirements or stipulate that none exist. Note: DTRA uses the DAI procurement package to satisfy Part B requirements; a separate OFPP Part B form is not required. An assessment that the proposed cost/price is reasonable has been performed. At a minimum, this will include an Independent Government Cost Estimate prepared by DoD; detailed pricing information (proposal prepared by DOE) that has been reviewed by the cognizant DoD Technical Project Manager/Contracting Officer s Representative (COR) Page 14 of 21

15 to ensure the hours and skill mix proposed are reasonable for the task(s) to be accomplished; and an assessment that the quantity and type of materials proposed are necessary and reasonable. A qualified DoD Technical Project Manager/COR, meeting Type A COR requirements in accordance with the Under Secretary of Defense (Acquisition, Technology, and Logistics) Memorandum, "DoD Standard for Certification of Contracting Officer's Representatives (COR) for Service Acquisitions," March 29, 2010, has been appointed to perform COR functions, including monitoring contractor performance and reviewing contractor invoices. 5.0 Federal Budgeting Process and Appropriations A basic understanding of the appropriation process and basic types of funding is essential to processing financially sound, viable, and proper transactions. 5.1 Authorization and Appropriation An Authorization Act is a statute passed annually by Congress, that authorizes the appropriation of funds for programs and activities. An Authorization Act does not provide budget authority. That authority stems from the Appropriations Act. The appropriation is the statutory budget authority that enables agencies to incur obligations and make payments out of the Treasury for specified purposes. An Authorization Act sets policies and funding limits, while the Appropriations Act is required before an agency can cut a check or sign a contract. DTRA s appropriation process includes many types of funding, or colors of money, including: Operations and Maintenance (O&M); Research, Development, Test & Evaluation (RDT&E); Procurement, Defense Wide (PDW); Cooperative Threat Reduction (CTR); Base Realignment and Closures (BRAC). Page 15 of 21

16 The appropriated funds have a three-phase lifecycle: 1. Current Funds. These funds are available for new obligations. The time funds are current or available depends on the color of money. (a) (b) (c) (d) O&M funds are available for 1 year. RDT&E funds are available for 2 years. PDW funds are available for 3 years. CTR funds are available for 3 years. At the end of the period of availability, the unobligated balances are transferred to the expired account. 2. Expired Funds. These funds are no longer available for new obligations but are still available to pay bills for 5 years. They can be used to make upward adjustments or to liquidate valid, previously incurred obligations. 3. Canceled Funds. After 5 years in the expired category, funds are considered canceled and are no longer available for any purpose. Funds become canceled after they have been expired for 5 years. Figure 2 highlights the life of the most commonly known funds through the various classifications. Page 16 of 21

17 Current, Expired, and Canceled Funds time in years Figure Limitations on Obligations of Appropriated Funds An agency s authority to obligate is limited by purpose, time, and amount. The purpose of an obligation looks at whether the obligation is used for something Congress intended when the appropriation was passed. An agency may use funding only for programs and purposes for which the appropriation was made. Purpose is covered under the Misappropriation Act, also known as the Purpose Statute. The time of an obligation examines whether the requirements covered by the obligation are within the appropriations period of availability. For example, O&M funds are available for obligation for the year for which they were appropriated (the current fiscal year). Time is covered under the Bona Fide Need Rule. Page 17 of 21

18 The amount of an obligation is concerned with whether an obligation is in excess of the amount provided in the appropriation or whether an obligation was incurred in advance of an appropriation. Violations are covered under the Anti-Deficiency Act. Severability and Non-severability Determination To ensure proper application of the purpose, time, and amount limitations, a severable versus non-severable determination must be made with respect to the work/service required. A service is non-severable if it produces a single or unified outcome, product, or report that cannot be feasibly subdivided. In contrast, a service is severable if it can be separated into components that independently meet a separate need of the Government. The PM is primarily responsible to make the severability/non-severability determination, however, all non-severable determinations must be reviewed by the General Counsel (GC) for concurrence. Page 18 of 21

19 6.0 Roles and Responsibilities The PM/PO is ultimately responsible for planning, preparing for, executing, and monitoring the action. The KO supports the PO/PM by ensuring that supporting documentation for actions is adequate. The budget analyst and finance and accounting personnel are responsible for ensuring that funding is available, proper, and compliant with fiscal law. Key Personnel Project Officer/ Program Manager Contracting Officer Budget Analyst/Finance and Accounting Overall Roles Completes the documentation required by the MIPR/IO Package Checklist; Coordinates with the KO to determine whether the forthcoming requirement is covered by and/or within the scope of a blanket D&F; Provides the D&F; Prepares the Technical Evaluation/Cost Reasonableness Determination. Supports the PO/PM and ISS/ASR; ensures the adequacy of supporting documents for Economy Act actions; Approves D&Fs. Issues the MIPR or IO to the servicing agency; Ensures that the DTRA Department of Defense Activity Address Code is included on each MIPR or IO. Page 19 of 21

20 Acronyms ASR ASRD BAA BRAC COR CPARS CTR DAI D&F DFARS DOE DPAP DTRA FAR FFRDC IA ID/IQ IGSA IO ISA ISS KO MIPR MOA MOU O&M OFPP OMB PDW PM PO PWS R&D RDT&E RFP Acquisition Strategy Review Acquisition Strategy Review Document Broad Agency Announcement Base Realignment and Closures Contracting Officer s Representative Contractor Performance Assessment Reporting System Cooperative Threat Reduction Defense Agencies Initiative Determination and Findings Defense Federal Acquisition Regulation Supplement Department of Energy Defense Procurement and Acquisition Policy Defense Threat Reduction Agency Federal Acquisition Regulation Federally Funded Research and Development Center Interagency Agreement Indefinite-Delivery/Indefinite-Quantity Intragovernmental Support Agreement Interagency Order Interservice Support Agreement Initial Strategy Session Contracting Officer Military Interdepartmental Purchase Request Memorandum of Agreement Memorandum of Understanding Operations and Maintenance Office of Federal Procurement Policy Office of Management and Budget Procurement Defense Wide Program Manager Project Officer Performance Work Statement Research and Development Research, Development, Test, and Evaluation Request for Proposal Page 20 of 21

21 SAP SOO SOW WFO Simplified Acquisition Procedures Statement of Objectives Statement of Work Work for Others Page 21 of 21