Economy Act

1
Economy ActNon-Economy ActDetermination and
Findings (DF) Larry Rice (John Marshall)
DSN 225-6590 X 2556(703) 695-6590 X 2556
2
Outline

• Definitions Set the stage
• Laws, Regulations IG Reports
• Title 31 U.S. Code Section 1535
• Title 31 U.S. Code Section 854
• Marine Corps Acquisition Procedures
  Supplement(MAPS) SubPart 17.5
• Players Parties involved Communication !
• Contract Management Process Guide (CMPG)
• Contents of the DF Samples Provided
• DF Processing tips

3
Definitions

• Economy Act Order Congress enacted the Economy
  Act, 31 U.S.C. 1535, which permits one Federal
  agency to provide goods or services to another
  Federal agency, or to another account within the
  same agency, when the requirements of the Economy
  Act have been met. The Economy Act is an enabling
  piece of legislation and without it there would
  be no legal authority to transfer funds between
  Federal Agencies.
• Non-Economy Act Order - Non-Economy Act Orders
  may be placed with a Federal agency that has the
  specific statutory authority to support other
  Federal agencies. Agencies like the General
  Services Administration (GSA) and the Department
  of Interior have been given the authority to
  support other Federal agencies through the
  Acquisition Services Fund (GSA) and various
  Franchise Funds (DOI). A transfer of
  requirements and funds to one of these entities
  is technically not pursuant to the Economy Act,
  thus the term "Non-Economy Act Orders."

4
Definitions

• Assisted Acquisition Contract action placed on
  behalf of the Marine Corps by an official outside
  of the Marine Corps.
• NAVCOMP 2275 to SPAWAR, SPAWAR KO places contract
  action
• Assisting Agency The agency/department/activity
  outside of the Marine Corps with contracting
  responsibility for a Marine Corps requirement.
• Direct Acquisition Contract action placed by a
  Marine Corps KO against a contract vehicle
  established outside of the Marine Corps.
• Delivery Order placed against GSA Schedule by
  Marine Corps KO
• Requiring Activity Activity with the bona fide
  need, appropriate funds and well defined
  performance based statement of work or
  requirement or equipment list.

5
Laws Regulations

• Allow for Interagency acquisitions of supplies
  services and establishes conditions to be met
  when funds are transferred.
• What else applies
• Title 31 U.S. Code Section 1535
• Section 854 of the FY-05 National Defense
  Authorization Act (NDAA)
• Section 811 and 812 of FY-06 NDAA.
• Navy Marine Corps Acquisition Regulations
  Supplement (NMCARS)/MAPS SubPart 17.5 - all
  requirements satisfied using a contract
  vehicle/resources outside Marine Corps (Assisted
  and Direct) require additional review and
  approval (even if no contract action results,
  i.e. organic resources from another agency meet
  the need). Appendix L M.
• Marine Corps guidance much more restrictive
• Multiple memos - USD(C), DPAP, OASN(FMC),
• HQMC LB/PR dated 11 May 07
• Multiple GovWorks memos
• USD(ATL)/(C),14Jun07 ASN(ALM), 7Aug07
  (Prohibition)
• DPAP, 28 Mar08, (rescinding prohibition except
  for furniture)

6
Laws Regulations

• Exceptions (NMCARS/MAPS 17.503)
• Mandatory Sources/Coordinated Acquisitions - FAR
  Part 8.7 DFARS 8.7000
• DLA, Defense Media Center, FSC code 5820 Radio/TV
  
• Micro-purchases of supplies or services using
  GCPC
• Mobile (cellular) phone service Mobile Data
  Svcs(Blackberry)
• NAVFAC AE/Construction/FSC (Army
  Corps-Japan/Okinawa)
• More Exceptions - Mandatory Sources/Other
  Authorities program offices need to investigate
  this. Ask the question Does some other
  authority exist?
• SECNAVINST 5400.15B SYSCOMs responsibilities.
• NAVSEA, NAVAIR, SPAWAR, NAVSUP, MARCORSYSCOM
• Clean Water Act Army Corps for dredging
  navigable waterways.
• Federally Funded Research Development Contract
  FAR 35.017
• Office of Naval Research Contract Center for
  Naval Analysis Marine Corps Program
• DoD Directive 8220.1 Army Single Agency
  Manager Pentagon IT Svcs.
• DoD Directive 4630.13 Federal
  Telecommunications System
• DoD INST 5330.03 DAPS Printing/Duplicating
• Project Orders DoD FMR Volume 11A, Chapter 2

7
What is the problem ?

• Congress has the power of the purse
• - Appropriates funds for specific purposes.
• Purpose, Time Amount
• OFPP, DoD, DON, USMC further prescribe how to
  execute the dollars requirement.
• IAW Financial Management and Acquisition
  Regulations.
• What happens when activities send the funds
  outside the Marine Corps?
• Problem ?
• All players have to ensure compliance with
  regulations.

8
Why all the attention ?

• USMC Inspector General (IG) Report, Financial
  Readiness, 10 July 2007
• DoD IG Report, Report on Potential Antideficiency
  Act violations on DoD Purchases Made Through
  Non-DoD Agencies, D-2007-042, 2 Jan 2007
• DoD IG Report, FY 2005 DoD Purchases Made Through
  the Department of the Treasury, D-2007-032, 8 Dec
  2006
• DoD IG Report, FY 2005 DoD Purchases Made Through
  the General Services Administration, D-2007-007,
  30 Oct 2006
• DRAFT DoD IG Report, FY 2005 DoD Purchases Made
  Through the Department of Interior,
  D2005-D000CF-0276.000, 27 Oct 2006
• Naval Audit Service Audit Report, Interagency
  Procurements at the NAVSEASYSCOM, N2006-0049, 27
  Sep 2006,

9
Who ?

• Requirements Generator, Comptroller,
• Contracting Office, Field Counsel,
• ADC, IL (Contracts)
• The Requiring Individual who generates
  requirements for execution is responsible for
  providing the needed information to the
  comptroller, contracting office, and legal
  counsel so that the requisite documentation can
  be acted upon. As a minimum, the Requiring
  Individual must provide the needed information in
  a format consistent with Appendix L.

10
How?

• USMC Contract Management Process Guide (CMPG)
• Web-enabled guide designed by HQMC, ADC, IL
  (Contracts)
• To benefit acquisition personnel within the
  Marine Corps Field Contracting System (MCFCS),
  requirements generators and program offices.
• The CMPG may be accessed from our USMC,IL
  webpage at
• http //www.hqmc.usmc.mil/cmpg/
• CMPG houses process, regulatory guidance tools
  in the form of templates, samples, and flowcharts
  as well as hyperlinks to additional information
  to promote consistency and standardization across
  the field, reduce variation, and open
  communication channels across the MCFCS to share
  best practices and lessons learned.

11
HQMC CMPG Structure

• Follows the five phases of the contracting
  process
• Planning of a procurement (Economy Act DF
  Coverage 1.5.1 1.7.8)
• Solicitation
• Evaluation of offers
• Award of a contract
• Post award management of contract
• Additional stand-alone modules
• Simplified Acquisition Procedures (SAP)
• Governmentwide Commercial Purchase Card (GCPC)
  Program
• Business Clearance Memorandums (BCMs)
• Ratifications of Unauthorized Commitments (CMPG
  Sec. 5.11)

12
The DF11 Findings and up to 7 Determinations

• UNITED STATES MARINE CORPS
• Regional Contracting Office-Southwest
• PO Box 1609
• Oceanside, California 92051-1609
• In reply refer to
• 4200
• RCO SW 06-010
• 18 Sept 2006
• (Non-) Economy Act Order
• Class Determination and Findings
• Choose (Economy Act Order) or (Non-Economy Act
  Order)
• For Economy Act Order Authority Cite the
  following
• 31 U.S.C. 1535 Sec 854 FY05 NDAA Sec 813 FY06
  NDAA FAR 17.5 DFARS 217.5, 217.78 MAPS 17.503
  DASN(ACQ) memo of 1 Dec 06 Acquisition of
  Services MOPAS 2 OASN(FMC) memo of 30 Mar 07
  Advance Payments to Non-DoD Federal Agencies for
  Interagency Acquisitions
• For Non-Economy Act Order Authority Cite the
  following
• Sec 854 FY05 NDAA Sec 813 FY06 NDAA DFARS
  217.78 USD(C) memo of 16 Oct 06 Non-Economy Act
  Orders OASN(FMC) memo of 31 Jan 07
  Non-Economy Act Orders with Non-DoD Agencies
  DASN(ACQ) memo of 1 Dec 06 Acquisition of
  Services MOPAS 2 OASN(FMC) memo of 30 Mar 07
  Advance Payments to Non-DoD Federal Agencies for
  Interagency Acquisitions

13
DF Continued
FINDINGS 1. Requiring Office. Provide the name
of the requiring office, including the Requiring
Individual in the following format. a. Name
of Activity b. Activity Mailing Address
c. DoD Activity Address Code (DoDAAC) for
requiring office d. Requiring Individual
name, telephone, and e-mail address 2.
Assisting Agency. Provide the name of the
Government Agency that will receive the funds and
provide or procure the required goods or
services. Provide the name of the assisting
agency in the following format. a. Name of
Agency b. Address of Agency c. Name
of Agency Point of Contact (POC) or Contracting
Officer d. Telephone and e-mail address of
POC or Contracting Officer
14
DF Continued
3. Service Provider. Describe how the Assisting
Agency will perform the requirement, e.g., by
means of a contract or by use of its own
resources. For services acquisitions, provide the
following pursuant to Table 3 of ASN(RDA) policy
memo of 01 December 2006 a. Types and
amounts (man hours) of services acquired.
b. Type of contract vehicle (i.e., fixed
price/cost-type/TM). c. Whether or not
the contract action was/will be performance
based. d. Extent of competition received
in placing the action. Where practicable, include
the number of offerors, contractor name, and
contract number to be utilized. e. Whether
the contractor is a large business, an
educational or non-profit, a small business and
type of small business (i.e., small business,
small disadvantaged, woman- owned, HUB-zone, etc.
(FAR Part 19)) or a required source of supply
(FAR Part 8). 4. Non-Economy Act Order
Authority. For Non-Economy Act Orders only,
provide the statutory authority for the GSA
Acquisition Services Fund or the Franchise Fund.
(See page L-7)
15
DF Continued
5. Description of the Requirement. (Requirement
Funds For Specific Period) Provide a
description of the type of goods or services to
be provided or procured. Details concerning
the requirement will be explained in the
following format. a. The Requirement. The
Requiring Individual is to provide a firm, clear,
specific, and complete description of the goods
or services to be ordered. The use of generic
descriptions is not acceptable. In addition,
attach a copy of the specification (for supplies)
or Performance Work Statement (PWS) (for
services). For services attach a copy of the
Quality Assurance Surveillance Plan (QASP).
b. Acquisition Planning and Market Research.
Provide documented evidence of the Acquisition
Planning and Market Research that was conducted
in accordance with FAR Part 7 and 10. c.
Cost Estimate. Provide an Independent Government
Cost Estimate for the requirement and the basis
for that estimate. d. Performance or
Delivery. Provide specific performance or
delivery requirements, e.g., delivery dates, or
for services include proposed period of
performance. e. Contracting Officers
Representative (COR). Identify the Government
Official who will be the COR for the requirement
who will oversee the performance and accept the
services to be provided. The COR must be properly
trained and appointment in writing by the
Contracting Officer. f. DoD-Unique Terms and
Conditions. Provide any terms, conditions, and
requirements to comply with DoD/DON-unique
statutes, regulations, directives and other
requirements, e.g., 10 U.S.C. 2410a - severable
services Berry Amendment.
16
DF Continued
6. Certification of Funding Data by Comptroller.
a. Provide a statement as to the funds to be
used for the requirement to include Fiscal Year,
Type of Funds, and Dollar Amount, e.g.,
FY07, OM,MC PMC RDTE and 11.5M. A table
will be used to describe a situation where more
than one year or type of funds will be used to
support the requirement. b. Certify that the
funds cited on the order serve a bona fide need
arising, or existing, in the fiscal year or years
for which the appropriation is available for
obligation. c. Certify that the type of funding
provided is appropriate for the goods or services
being acquired. d. Certify that funds will be
deobligated as outlined in enclosure (1),
paragraph D.2. of the OASN(FMC) memo dated 31
January 2007. e. If the General Services
Administration (GSA) Acquisition Services Fund or
a Franchise Fund is to be used, and advance
payment is contemplated, cite the specific
statutory authority that authorizes the Marine
Corps to agree to the advance payment. See the
OASN(FMC) memo of 30 Mar 07 Advance Payments to
Non-Department of Defense Federal Agencies for
Interagency Acquisitions.
17
DF Continued
7. Cost/Fees. Identify fees, if any,
negotiated by the Marine Corps contracting
officer that are to be charged by the Assisting
Agency to process and administer the order.
Include fee percentage and estimated dollars. If
for more than one year, use a table format. 8.
Justification and Rationale for the Action.
Explain why the use of an Economy Act Order or
Non-Economy Act Order is in the best interest of
the Marine Corps in terms of the following.
Address whether the Assisting Agency (A) Will
satisfy the requirement under an existing
contract the Assisting Agency has in place to
meet its own needs (B) Has capabilities or
expertise to enter into a contract for the
requirement the Marine Corps does not have
and/or, (C) Has the capability to perform and
will perform the requirement with its own
resources. Regardless of which rationale
is used, address how the approach supports the
following a. Satisfying Marine Corps
customer requirements b. Cost
effectiveness (taking into account discounts and
fees) c. Delivery schedule d.
Non-availability of suitable contracts within the
Marine Corps e. Ease of contract
administration and any other applicable
considerations.
18
DF Continued
DETERMINATION A. The use of an (Economy
Act Order) or (Non-Economy Act Order) is in the
best interest of the Government. B. This
requirement cannot be obtained as conveniently or
economically by contracting directly with a
private source. C. DoD/DON unique terms
and conditions were provided to the assisting
agency and will be included in the contract
award. D. Funding is available and
appropriate for the acquisition. If the assisting
agency will be contracting for the goods and
services, choose at least one of the following
and insert as paragraph E in the Determination
section of the DF (E.) The acquisition
will appropriately be made under an existing
contract of the Assisting Agency, entered into
before placement of this (choose) Economy Act
(or) Non-Economy Act Order, to meet its own
requirements for the same or similar services.
Goods or services being ordered are within the
scope of the basic contract. (F.) The
Assisting Agency has capabilities or expertise to
enter into a contract for this requirement that
is not available within the Marine Corps.
(G.) The assisting agency is specifically
authorized by law or regulation to purchase this
requirement on behalf of other agencies.
19
DF Continued
APPROVALS (Typed Name and Title to be included
below all signatures) Approved_(Signature)_______
__________________________ _____________
Requirements/Program Management Official
Date Approved_(Signature)______________
____________________ _____________
Comptroller Date Legally
Sufficient_(Signature)___________________________
_____________ CL
Counsel Date Approved_(Signatu
re)_________________________________ ____________
_ Marine Corps Contracting Officer
Date ( ) Check box if
Note 1 applies. Approved_(Signature)__________
_______________________ _____________
Assistant Deputy Commandant, IL (Contracts)
Date ( ) Check box
if Note 1 applies. Note 1 Department of the
Navy review and approval requirements for the
Management and Oversight Process for
the Acquisition of Services (MOPAS) are satisfied
concurrently with the approval of this DF.
(NMCARS 5237.170-2(a) and (b))
20
Approval Matrix ForAssisted Economy Act Orders
21
Approval MatricesNon-Economy Act Assisted
Acquisitions Direct Acquisitions
22
Tips to Facilitate Processing of DFs

• ASK THE QUESTION! Does the authority already
  exist to go to the Assisting Agency?
• Use the checklist!
• Keep it short and sweet
• Use Class DF if for multiple years/recurring
  requirement.(notgt5 yrs in duration)
• Remember, Requirement Funds Period
  (w/expiration date).
• Activity generated control in upper right
  header of all pages (e.g. MCBH 10001)
• If multiple years (Class DF)
• Use tables for estimated funds by FY and fund
  type
• For services use tables for labor hours/labor
  types
• DF must stand on its own, we want supporting
  documents but dont attach.
• Package should include
• 1) DF in MS Word format
• 3) Stand alone signature page - .pdf
• 4) SOW (MOU/MOA if applicable)
• 5) Quality Assurance Surveillance Plan (QASP)
  (for services)
• 5) Government Estimate

23
Challenges and Opportunities

• Identify opportunities to coordinate similar
  requirements (Strategic Sourcing Initiative).
• Discover types of services and supplies not being
  properly supported within the Marine Corps.
• Steer requirement to the correct source.
• Leverage areas of expertise.
• Increase compliance.
• Avoid Antideficiency Act violations
• Purpose, Time, Amount
• More efficient acquisition planning.

24
Wrap Up
Beat Army !