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    Can a performing agency receive a mipr for production of cannons on an economy act mipr?


    Tried to contact Julie Prest several times but the e-mail address and telephone number she provided was not correct. The e-mail response was undelivered and the individual who answered the telephone did not recognize the name.

    The FAR Part 17.502-2 (Economy Act) states that the interagency agreement can be used for supplies as well as services. In addition, OFPP memo dated 06 Jun 2008 also provides guidance in terms of utilizing interagency agreements. If an agency is unable to obtain the supplies and services conveniently and economically from private sources, then trhe Economy Ac can be used (FAR Part 17.502(c)(1)(ii)). A determination and finding (D&F) needs to be completed prior to utilizing interagency agreements (FAR Part 17.502-1(a)(1)). 

    Contracts do not have project orders. An Indefinite-Delivery Indefinite-Quantity (IDIQ) and a Blanket Purchase Agreement(BPA) have delivery orders (supplies) or task orders (services). However, DoD Financial Management Regulation, Chapter 02, Paragraph 020102, states "all orders or contracts for work or material or for the manufacture of material pertaining to approved projects placed with government-owned establishments shall be considered as obligations in the same manner as obligations placed with commercial manufacturers or private contractors." The term project order is a financial management term vice a contractual term. According to paragraph 020508, there needs to be a bona fide need for the supplies and services, at the time of the interagency agreement.

    Except for research, development, and test and evaluation (paragraph 020518), the project order needs to be fully funded (paragraph 020518). Funding needs to be reviewed in utilizing interagency agreement, especially the appropriation type. According to paragraph 020801, "the apropriation-type accounting for project orders shall be performed by the ordering DoD components in a manner similar to that performed for contracts". Therefore, if the appropriation has expired, prior to the commencement or work effort, this would have a negative impact on the work effort.


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