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    Can an Economy Act MIPR with funds that have not expired be amended such that the new MIPR would be Project Order MIPR?


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    The following is information from a different Ask a Professor question that explains the difference between Economy Act MIPR and Project Order MIPRs.
     
    Economy Act and Project Order are two separate items.  Project Orders are specific, definite, and certain purchase request to order goods and non-severable services from a DoD-owned and operated activity separate and distinct from the Economy Act; analogous to contracts placed with commercial vendors. Examples include:  Equipment overhaul or maintenance shops;  Manufacturing or processing plants or shops;  Research and development laboratories;  Computer software design activities;  Testing facilities;  Proving grounds owned and operated by DoD; and Engineering and construction activities.  Project Orders are governed by DoD pursuant to authority contained in Title 41, United States Code (U.S.C.) Section 23 which states "These Project Orders serve to obligate appropriations in the same manner as orders or contracts placed with commercial enterprises (obligation criteria contained in 31 U.S.C. 1501).
     
    All project orders must be identified as such by the inclusion of a statement such as:  “This order is placed in accordance with the provisions of 41.U.S.C. 6307…”  A good source of guidance can also be found in DoD 7000.14R Financial Management Regulation Vol 11A, Chapter 2 (Project Orders). 
     
    Economy Act Orders are transactions where goods or services are procured from major organizations under the Economy Act within the same agency or other federal agencies and pay actual costs of those goods and services. Examples include: Base support (host-tenant) services such as Administrative, civilian personnel and community services, Environmental compliance, Fire protection, police and security/guard services, and Food and health services;  Testing and evaluation; and  Level of effort workyears.  Economy Act, Title 31, U.S.C. Section 1535 and 1536 governs the Economy Act Orders which was passed in 1932 to obtain economies of scale and eliminate overlapping activities; Contractor vs Gov’t FAR Subpart 7.3 .  Economy Act applies only in the absence of a more specific acquisition authority.  FAR 17.502-2(b). Economy Act Orders must be supported with a written Determination and Findings (D&F) stating best interest of the government  FAR 17.502-2(c). A good source of guidance can also be found in DOD 7000.14R Financial Management Regulation Vol 11A, Chapter 3 (Economy Act Orders). 
     
    Given that distinction, it seems it would be permissible assuming the funds were appropriated for that change in purpose (purposes behind Project Order and Economy Act Orders are different).  It is important to comply with the requirements of each type of order (specified in DoD FMR Vol 11A).
     
     

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