1. What are FAR, DFAR, or other regulations that are applicable to the transfer of these ships under the Economy Act?
2. What type of documentation/requirements that the requesting activity must produce/perform prior to the transfer operation and maintenance to the servicing agency?
3. In the D&F process, who are the key players and steps? How is DISA involved in the process? What does PL2 and DV SPE stand for in the D&F process?
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- What are FAR, DFAR, or other regulations that are applicable to the transfer of these ships under the Economy Act?
FAR SubPart 17.5, DFARS 217.5, DoD Instruction 4000.19, “Interservice and Intragovernmental Support”, DOD Financial Management Regulation (FMR), Volume 11A, Chapter 3 and NMCARS 5217.5 for Navy activities are key regulations applicable to transactions where goods or services are procured from other federal agencies under the Economy Act, Title 31, United States Code (U.S.C.), sections 1535 and 1536.
- What type of documentation/requirements that the requesting activity must produce/perform prior to the transfer operation and maintenance to the servicing agency?
FMR 030101: Transactions include interservice and intergovernmental support, where an activity needing supplies or services (requesting agency/customer) obtains them from another activity (servicing agency/performer). Within the Department of Defense (DoD), Economy Act orders typically are executed by issuance of a DD Form 448, “Military Interdepartmental Purchase Request (MIPR).”
FMR 030103: Legal authority must be established in accordance with 31 U.S.C., section 1535 to ensure funds are available, the head of the requesting agency determines the transaction is in the best interest of the United States, the transferring activity can fulfill the request and the head of the agency determines the goods or services cannot be provided more economically by a commercial enterprise.
FMR 030202: In general, all Economy Act orders must be supported by a Determinations and Findings (D&F) that the use of interagency support capabilities is in the best interest of the government and that the required goods, supplies or services cannot be obtained as conveniently or economically by contracting directly with a private source.
FMR 030203: For intergovernmental agreements, DoD with non-DoD federal activities, authority to enter into the agreements may be delegated, although designees may not be lower than Senior Executive Service, Flag, or General Officer levels.
FMR 030402: The requesting official should provide a certification, on or attached to the Economy Act order, that the funds cited on the Economy Act order are properly chargeable for the purposes cited in the order.
FMR 030403: Economy Act orders citing an annual or multiyear appropriation must serve a bona fide need arising, or existing, in the fiscal year (or years) for which the appropriation is available for obligation. Otherwise, a valid obligation is not accomplished. Bona fide need generally is a determination of the requesting activity and not that of the servicing activity. A servicing activity should, however, refuse to accept an Economy Act order if it is obvious that the order does not serve a need existing in the fiscal year for which the appropriation is available.
FMR 030501: An Economy Act order may be placed on any form that is acceptable to both the requesting and servicing agencies involved based upon the documentation standards in Chapter 1, paragraph 010204, of this Volume. Typically, between DoD Components, a DD Form 448, MIPR is used to place the order.
Key players are the Requiring Activity (Program Management Official), Servicing Activity, Legal Counsel (Sufficiency Review), Contracting Officer, Approving Official (May or may not be delegated below Head of Contracting Activity), and above $50M: Deputy Assistant Secretary of The Navy (Acquisition and Procurement) and Assistant Secretary of the Navy (Research, Development and Acquisition).
The process should include defining the requirement including performance and delivery, documenting market research, conducting an independent cost estimate, defining any unique terms and conditions, funding certification, legal sufficiency review and providing the justification for using an interagency agreement under the Economy Act.
- In the D&F process, who are the key players and steps?
The question doesn’t provide enough background to ensure accuracy of the answer but it may be that DISA’s involvement is based on the planned use of a multi-agency IDIQ contract, of which DISA has several. These are often used in interagency agreements due to the relative ease of creation through these vehicles. DISA may also be involved in IT acquisitions to provide oversight on information assurance and ensure adequate protection levels.
PL2: Protection Level 2
DV SPE: Vice Director, Senior Procurement Executive. The DV is a DISA specific acronym.
See flow charts at https://acc.dau.mil/CommunityBrowser.aspx?id=510532
- How is DISA involved in the process? What does PL2 and DV SPE stand for in the D&F process?