By definition (as per the DoD Financial Management Regulations):
- A Military Interdepartmental Purchase Request (MIPR) is an order issued by one military service to another to procure services, supplies, or equipment for the requiring service. The MIPR (DD Form 448) may be accepted on a direct citation or reimbursable basis. It is an Economy Act (31 U.S.C . § 1535 and 31 U.S.C. § 1536) order subject to downward adjustment when the obligated appropriation is no longer valid for obligation.
- The process for accepting a MIPR is defined in the Federal Acquisition Regulation (FAR) 253.208-2: https://www.acq.osd.mil/dpap/dars/dfars/html/r20060616/253208.htm
As outlined in FAR 253.208-2, the servicing (receiving) agency must first identify (in block 6) whether the items requested will be provided as:
- All Reimbursement (Category I), or
- All Direct Citation of Funds (Category II), or
- Both Category I and Category II
If the servicing (receiving) agency chooses “c. Both Category I and Category II”, they must then indicate the MIPR line item numbers that will be provided under each method of financing (Reimbursement or Direct Citation) in Blocks 8a and 9a, respectively.
Also note that you should complete a DD Form 448-2 for all MIPR amendments involving an adjustment of funds or delivery schedule, or if requested by the requiring department
From there, the rules and policies governing Reimbursable and Direct Citation of Funds apply:
- Reimbursable Order: This refers to a situation in which the servicing (receiving) agency accepts funds provided by the MIPR into its own DoD appropriation or business operations fund. Funds are normally considered obligated upon acceptance of the MIPR by the servicing agency (i.e., when the receiving agency signs and returns the DD Form 448-2 to the requesting agency).
- Direct Citation: This refers to a situation in which the servicing (receiving) agency awards a contract on behalf of the requesting agency and uses the appropriation fund cite provided by the requesting agency on the MIPR. The direct citation order is recorded as an obligation by the requesting agency when it is notified in writing that the servicing agency has awarded the contract or when a copy of that contract is received. When direct cite is used, the source document of the obligation is returned to the requesting agency, which accomplishes all required accounting. The term “direct cite” is not valid if there is a reimbursable order to a DoD appropriation account or to a business operation fund (e.g., a revolving fund).
Lastly, and as a best practice in general with any issue pertaining to fiscal law, you should consult and work with your local comptroller and legal offices to ensure that the specific details of your particular situation are being legally addressed.