What, if any, authority should be used to transfer contracts from DoD to a Federal agency outside DoD? How should the PIID be handled?
Bottom Line Up Front: extensive research revealed nothing in statutory code, executive orders, directives, or regulation(s) that prohibits this being done.
Although very, very uncommon, it has been done before. One example from not long ago occurred between Department of Commerce and Department of Interior.
A call with the question submitter revealed there would be no change to scope or any substantive contract terms and conditions.
First, we’ll provide a link to a very, very similar question asked awhile back on the Where in Federal Contracting site (WIFCON.com) site.
http://www.wifcon.com/discussion/index.php?/topic/2130-transfer-of-contracts-from-govt-agency-to-another-govt-agency-non-dod/. I found the discussion and advice in the thread compelling and informative.
Another option rather than doing a transfer, could be a change in contract administration office (CAO) delegation (see FAR 42.202 and DFARS 242.002); this would be an administrative modification to change, rescind, or redelegate CAO functions.
To execute a contract transfer it is recommended you first get your contracting and financial legal experts of both agencies involved as well as the contractor. It will take significant communication and coordination among the parties to make this happen. Including but not limited to analysis of any funding/appropriations limitations and future payment processes.
The mechanics of how to do this will vary depending on the specific facts. It will be driven mostly by the limits of the business process rules and capabilities of the Agencies contracting writing, financial management, and electronic payment systems rather than acquisition/procurement laws, rules, and regulations.
The question submitter also explained the contracting writing systems of the two agencies ar not compatible. As a result, one potential approach is to have the gaining agency create a new contract (their new PIID) that only has the work left to be accomplished. The losing agency could issue a modification which both terminates for convenience this remaining work which has not been done yet and administratively transfers the contract to the gaining agency (identifies any and all new organizational entities involve). It’s anticipated the partial T4C would be at no cost. In this scenario it is imperative the T4C come at a natural demarkation of work accomplished, accepted, and then paid for (e.g. end of an option and before next option is exercised).
Regarding the PIID itself, see FAR 4.1601(c) and of course both Agency Supplements. Depending on all of the facts, the reasoning at FAR 4.1601(c)(1)(ii) may be a potential rationale. In addition, there is excellent guidance and language found at DFARS 204.1601(c) and the associated PGI.