2 Interagency Acquisitions Breakout Session # D08 Name: Nicholas “Chip” Retson Senior Counsel Defense Acquisition Regulation System Mike Canales Senior Analyst Contract Policy & International Contracting Office of the Undersecretary of Defense Date:July 31, 2012 Time:11:15am-12:30pm

AGENDA May 8, Introduction Key Definitions History “Ancient” – Economy Act Modern – DoD, OFPP, IGs Step-By-Step Analysis

Who We Are May 8, SECDEF USD(AT&L) Defense Procurement & Acq Policy Contract Policy & Int’l Contracting Defense Acquisition Regulation System DOD General Counsel MIKE CHIP

DAR Council ARMY NAVY DLA NASA DCMA USAF Chair OSD Counsel Deputy Chair DARS Analysts DAU Liaison DARS Publisher DAR Council 5

TODAY IS A “GREAT” DAY

Preventing Abuse of Interagency Contracts 7 Final FAR rule (effective February 2, 2012) Published on January 3, FAC , 77 FR 183. Implements section 865, paragraphs (b) and (d), of the National Defense Authorization Act for FY FAR Case What Brought Us Here Today!

The “Business” Relationships 8 May 3, Buyer and Seller 2.Co-Purchasers 3.A hires B Agency A purchases from Agency B Agency A joins with Agency B to get economies of scale - Direct or Unassisted Purchases Agency A hires Agency B to negotiate and manage A’s contracts in toto - Indirect or Assisted Purchases

Authorities 9 Economy Act (1932); Govt Employees Training Act (1958) Information Technology Management Reform Act (1996) (Clinger-Cohen Act)  Authorizes Govt-wide acquisition contract (GWACs) Federal Property & Administrative Services Act (1949) (amended by Federal Procurement Policy Act of 1974)  The underlying basis for Federal Supply Schedules (FSS)  a/k/a GSA Schedules or Multiple-Award Schedules (MAS) Govt Management Reform Act of 1994  Franchise Funds and Inter-agency assist entities

Key Definitions 10 May 8, 2011 Best Procurement Approach Interagency Management Agreement Requesting Agency Servicing Agency Intra-governmental Transaction Inter-agency Acquisition Assisted Acquisition Direct Acquisition The Economy Act* * 31 U.S.C.1535

History 11 May 8, 2011 MODERN Acquisition Reform War Against Terror OFPP Interagency Acq Working Group Section 801, Nat’l Def Auth Act for FY 2008 FAR Case “ANCIENT” Economy Act –1932 Depression Era Save by using existing Contracts Direct/Unassisted –1942 Indirect/Assisted –1982 Contract Srvcs

Preventing Abuse of Interagency Contracts Final rule strengthens FAR subpart 17.5, Interagency Acquisitions (IAA). Reinforces internal management controls to improve the interagency acquisition process and minimize duplication. Addresses concerns that agencies, through single agency and multi-agency contracts, may be duplicating each other’s contracting efforts.

FAR does not apply (17.500(c) (a ) Interagency Transaction (Agency Internal Resources) Interagency Transaction (Agency Internal Resources) FAR 17.5 applies Intra-governmental Transactions Intra-governmental Transactions Interagency Acquisition (Contract) Interagency Acquisition (Contract) FSS Orders ≤ $500K (exception to BPA Determination ) FSS Orders ≤ $500K (exception to BPA Determination ) All Others Best Procurement Approach Determination ( (a)) Best Procurement Approach Determination ( (a)) Preventing Abuse of Interagency Contracts A

Assisted Acquisition (Written Agreement) MAC* Direct Acquisition Economy Act Acquisition Economy Act Acquisition Assisted Acquisition (Written Agreement) Non-Economy Act Acquisition Non-Economy Act Acquisition (b) FSS, GWAC D&F Req’d *Multi-agency contract Preventing Abuse of Interagency Contracts A

Adds new FAR –Determination of best procurement approach. –Written agreement for assisted acquisitions. Adds new FAR –Business case requirements for new multi-agency contracts.

Preventing Abuse of Interagency Contracts FAR subpart 17.5 does not apply to: –Orders of $500K or less issued against Federal Supply Schedules (FSS) –Interagency reimbursable work performed by Federal employees (other than acquisition assistance), or –Interagency activities where contracting is incidental to the purpose of the transaction.

“Look, I’m not saying it’s going to be today. But someday--- someday--- you guys will be happy that you’ve taken along a lawyer.”

18 May 8, 2011 REFERENCES SLIDES

Definitions 19 May 8, 2012 FAR “Interagency acquisition” means a procedure by which an agency needing supplies or services (the requesting agency) obtains them from another agency (the servicing agency), by an assisted acquisition or a direct acquisition. The term includes— (1) Acquisitions under the Economy Act (31 U.S.C. 1535); and31 U.S.C (2) Non-Economy Act acquisitions completed under other statutory authorities, [e.g., General Services Administration Federal Supply Schedules in subpart 8.4 and Governmentwide acquisition contracts (GWACs)].

Definitions (cont) 20 May 8, 2012 FAR “Assisted acquisition” means a type of interagency acquisition where a servicing agency performs acquisition activities on a requesting agency’s behalf, such as awarding and administering a contract, task order, or delivery order. FAR “Direct acquisition” means a type of interagency acquisition where a requesting agency places an order directly against a servicing agency’s indefinite-delivery contract. The servicing agency manages the indefinite-delivery contract but does not participate in the placement or administration of an order.

Web Link Resources 21 May 8, 2012 Office of Federal Procurement Policy: Dept of Defense: Dept of Energy: