According to the IMM Program it states that anything over the SAT has to have a waiver, but anything under is at the discretion of the Contracting Officers to justify a local purchase. Would my 5 year BOA's need a waiver for the Basic or would the Contracting Officer be able to do independent justifications for each order as they are all under the SAT? Is there more instruction to clarify this?
DFARS 208 and PGI 208 are clear that a requiring department (Air Force) can do their own contracting and does not need a waiver if the acquisition is less that the Simplified Acquisition Procedure as defined in FAR PART 2. You want to know if you can use the order prices or must you use the expected value of the BOA as a whole. I would use the definition of “contract” in FAR 2 and the description of a BOA at FAR 16.703 (a) as my guide. The FAR 2 definition says that ‘job orders or task letters issued under basic ordering agreements are the contract”. The description at FAR 16.703(a) supports the FAR 2 definition and says “A basic ordering agreement is not a contract”. Therefore, I believe it is correct for the contracting officer to do independent justifications for each order, as long as each order price is under the SAT. The threshold requirements apply to the order, not the basic agreement.
Open full Question Details
If you are still concerned, you should contact the IMM waiver authority at DLA.
DFARS 208.7003-2 Assignments under coordinated acquisition.
Requiring departments must submit to the acquiring department all contracting requirements for items assigned for coordinated acquisition, except—
(a) Items obtained through the sources in FAR 8.002(a)(1)(i) through (vii);
(b) Items obtained under 208.7003-1(a);
(c) Requirements not in excess of the simplified acquisition threshold in FAR Part 2, when contracting by the requiring department is in the best interest of the Government;
PGI 208.7003-1 Assignments under integrated materiel management (IMM).
(b) When an item assigned for IMM is to be acquired by the requiring activity under DFARS 208.7003-1(a)(3), the contracting officer must—
(i) Document the contract file with a statement of the specific advantage of local purchase for an acquisition exceeding the micro-purchase threshold in FAR Part 2; and
(ii) Ensure that a waiver is obtained from the IMM manager before initiating an acquisition exceeding the simplified acquisition threshold in FAR Part 2, if the IMM assignment is to the General Services Administration (GSA), the Defense Logistics Agency (DLA), or the Army Materiel Command (AMC). Submit requests for waiver to— threshold in FAR Part 2, if the IMM assignment is to the General Services Administration (GSA), the Defense Logistics Agency (DLA), or the Army Materiel Command (AMC). Submit requests for waiver to—
FROM FAR 2 definitions: “Contract” means a mutually binding legal relationship obligating the seller to furnish the supplies or services (including construction) and the buyer to pay for them. It includes all types of commitments that obligate the Government to an expenditure of appropriated funds and that, except as otherwise authorized, are in writing. In addition to bilateral instruments, contracts include (but are not limited to) awards and notices of awards; job orders or task letters issued under basic ordering agreements; letter contracts; orders, such as purchase orders, under which the contract becomes effective by written acceptance or performance; and bilateral contract modifications. Contracts do not include grants and cooperative agreements covered by 31 U.S.C.6301, et seq. For discussion of various types of contracts, see Part 16.
16.703 -- Basic Ordering Agreements.
(a) Description. A basic ordering agreement is a written instrument of understanding, negotiated between an agency, contracting activity, or contracting office and a contractor, that contains
(1) terms and clauses applying to future contracts (orders) between the parties during its term,
(2) a description, as specific as practicable, of supplies or services to be provided, and
(3) methods for pricing, issuing, and delivering future orders under the basic ordering agreement. A basic ordering agreement is not a contract.