CONOPS Elements

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Contingency Contracting Training
Contingency Funding and Requirement Process
Agile Contracting SupportAnytimeAnywhere
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Overview

• Key Points
• Fiscal Law Constraints
• Types of Funding
• Types of Appropriations
• Uses of DoD Appropriations
• Operations and Maintenance (OM) Funds
• Purchase Requests
• Contracting Related Boards
• Funding Procedures
• Paying Agent duties

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Key Points

• Appropriated funds are subject to three basic
  fiscal constraints
• Time A current fiscal years (FY) funds must be
  used for current needs.
• Purpose Funds must be expended for the purpose
  established by Congress.
• Amount The Anti-Deficiency Act (ADA) prohibits
  obligating or spending money before it is
  appropriated.
• Contingency contracting officers (CCO) should
  consult with the finance office to ensure proper
  use of each type of funding under their control.

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Fiscal Law Constraints

• Time Availability of Appropriations as to time
• A definite life span (e.g. 1 year for OM)
• Must be used for the needs that arise during
  their period of availability (Bona fide needs
  rule)

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Fiscal Law Constraints(Supplies Services)

• Bona fide needs rule
• Provides that a fiscal years (FY) appropriations
  only be obligated to meet a bona fide need
  arising in (or sometimes before) the fiscal year
  for which the appropriation was made
• Ex Funds appropriated for FY09 must only be
  used for FY09 needs

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Fiscal Law Constraints (Construction)

• Bona fide needs rule
• Construction contracts obligated and awarded late
  in a FY must have a performance start within 90
  days of award
• A progress schedule should be used to determine
  the commencement of work

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Fiscal Law Constraints

• Purpose Color of Money or appropriated funds
  must be expended for the purpose established by
  Congress
• Logically related to the appropriation
• Not be prohibited by law
• Not be otherwise provided for
• Amount Anti-Deficient Act / Insufficient funds
  violations

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Type of Funds

• Operation and Maintenance (OM)
• MILCON Construction (MILCON)
• Nonappropriated Funds (NAF)
• Official Representation Funds (ORF)

• Combatant Commander Initiative Fund (CCIF)
• Emergency and Extraordinary Expenses (EEE)
• Overseas Humanitarian, Disaster, and Civic
  Assistance (OHDACA)

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Type of Funds

• Appropriated Funds (AFPD 65-1) Funds provided
  by statute, under the jurisdiction of House and
  Senate Appropriation Committees
• Allows Federal Agencies to incur obligations and
  to make payments out of the Treasury for specific
  purposes (e.g. OM funds, day-to-day expenses for
  training exercises, deployments, and operating
  and maintaining installations)

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Type of Funds

• OM
• Covers day-to-day expenses during training
  exercises, deployments, etc.
• MILCON funds not to be used
• Construction and maintenance/repair can be
  performed on one project
• Each type of work is funded separately
• If the work is integrated and cannot be
  separated, work is funded as construction
• MILCON
• Includes any construction, development,
  conversion, or extension carried out with
  respect to a military installation (includes
  foreign real estate under the operational control
  of the U.S. military)
• Construction projects over 1.5M require approval
  by Congress

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Type of Funds

• Nonappropriated Funds (AFPD 65-1) cash and other
  assets received from sources other than monies
  appropriated by the Congress of the United States
• These funds are for the collective benefit of
  military personnel, authorized civilians, and
  their family members (e.g. consider whether NAF
  funding is available to purchase plaques,
  mementos, coins and organizational mugs and
  t-shirts)

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Type of Funds

• NAF purchase procedures and guidance differ based
  on Service
• Most procedures point out mandatory FAR clauses
• NAFI
• Nonappropriated Funds Instrumentalities is
  outside the scope of NAF functions

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Type of Funds

• If NAFs are available, they can be used to
  purchase plaques, mementos, coins, organizational
  mugs, and t-shirts
• OM funds cannot be used for mementos to build
  goodwill with local officials additionally,
  coins cannot specify a commanders name
• Appropriated funds can used to purchase awards,
  but not tokens of appreciation (personal gifts)

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Type of Funds

• Mixing Appropriated and Non-Appropriated Funds
• For construction and Architect and Engineer (AE)
  contracts that cite both appropriated and NAF
  funds, contracts should be written as
  appropriated fund contracts with all appropriated
  fund requirements

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Type of Funds

• Official Representation Funds (ORF) AFI 65-603
• Commanders have some discretion to use these
  funds without the normal statutory controls.
• Dos
• Only be used for providing official courtesies to
  authorized guests, which may include foreign
  dignitaries.
• Courtesies may include gifts, mementos, or tokens.

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Type of Funds

• Donts
• May not place an individuals name on the coins
• May not be used to provide gifts, mementos, or
  tokens to DoD personnel (e.g. coins presented to
  outstanding contributors in the command)
• Foreign Disaster Assistance (FDA)
• The President may direct SECDEF to provide
  disaster assistance (including transportation,
  supplies, services, and equipment) outside the
  United States to respond to manmade or natural
  disasters when necessary to prevent loss of life

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Type of Funds

• Combatant Commander Intiative Fund (CCIF)
• Controlled by the Chairman of the Joint Chiefs of
  Staff, who can provide funds to the combatant
  commanders from OM appropriations for emergences
  and extraordinary expenses
• Funds are used to enhance warfighting capability,
  readiness, and sustainability of the forces

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Type of Funds

• Emergency and Extraordinary Expenses (EEE)
• Funds may be used by Service Secretaries for
  unanticipated emergencies or extraordinary
  expenses
• Can be used for short-notice construction, but
  typically not
• If the cost exceeds 500K the SecDef must notify
  appropriate committees of Congress

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Type of Funds

• Overseas Humanitarian Disaster and Civic
  Assistance (OHDACA)
• Humanitarian, disaster, and civic aid to foreign
  countries
• Use requires DoD to give 15 days prior notice to
  Congress before transferring any defense articles
  or services to another nation or UN peace-related
  operations

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Type of Funds

• Commanders Emergency Response Program (CERP)
• Military commanders can quickly direct money to
  meet humanitarian, relief, and reconstruction
  needs
• Projects are usually small-scale, low-dollar,
  short-term, etc.
• FAR exempts many types of CERP projects
• Cleaning highways, upgrade schools, clinics, etc.

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Types of Appropriations

• Funds for Air Force operations are made available
  by Congress through a variety of appropriations
• Investment Appropriations
• Research, Development, Test, and Evaluation
  (RDTE) (3600)
• Aircraft Procurement (3010)
• Missile Procurement (3020)
• Other Procurement (3080)
• Military Construction (MILCON) (3300)

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Types of Appropriations

• Operation and Maintenance Appropriations
• Operation and Maintenance Appropriations (OM)
  (3400)
• Military Personnel (MILPERS) (3500)
• AFMAN 65-604

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Uses of DOD Appropriations

• 3010 (Aircraft Procurement)
• Procurement of
• Aircraft Weapon Systems
• MODs
• Spares and Repair Parts
• Training devices
• Common Support Equipment
• Mission support (PMA)

• 3600 (RDTE)
• Development of
• Weapon systems, equipment, material,
• Application software
• Developmental engineering
• Test
• Developmental Test Evaluation (DTE)
• Initial Operational Test Evaluation (IOTE)
• Mission support (PMA)

• 3400 (O M)
• Civilian Payroll
• Travel
• Education and training
• Base Operations Support (BOS)
• Expenses of operational military forces
• Maintenance (Facilities and Software)
• Minor construction lt 750,000 else use MILCON
• Investment equipment lt 250,000
• Mission support (PMA)

• 3080 (Other Procurement)
• Investment equipment gt 250,000
• Installation costs of investment equipment
• Mission support (PMA) for System Acquisition
  programs

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Operations and Maintenance (OM) Funds

• One Year Appropriation
• Must be fully obligated by 30 Sep
• Funds are released on quarterly basis
• Two categories distinguish use of funds
• Civilian Pay
• Day-to-day operating expenses (non-pay)

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Purchase Requests

• Most requests are legitimate and allowed to
  proceed without prioritization
• Prioritize requests using a readiness center on a
  contingency support staff
• If this option is not used, the responsible
  contracting office will handle the prioritization
  process

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Purchase Requests

• Essential parts of a purchase request
• Clear and detailed description of what is
  required of the contractor/vendor
• (e.g. noun, part , photo of item and SOW/PWS)
• Certified funds
• (Deployed CC and CO to establish approval
  authority)
• Quality Assurance personnel or contract monitor
  to assist clarification

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Purchase Requests

• Purchase request development Pitfalls to Avoid
• Overly restrictive characteristics
• Inadequate description or specifications
• Complicated technical terms or jargon
• Dictating how to instructions vice performance
  expectations

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Purchase Requests

• In the very beginning of a contingency
• Initially, verbal requests are fine
• A suspense for receipt of backup paperwork
• Adequate description of the requirement
• Verbal requests ? written requests
• Needed for authorized purchase
• Requirements for all formats
• Deployed commander approval
• Funds have been certified

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Purchase Requests

• During the Sustainment Phase an appropriate
  requisition document must be utilized to request
  supplies/services or construction submitted on
  any of the following forms
• AF Form 9 Department of the Army Form 3953
• AF Form 4009 AF Form 616
• DD Form 1348 Navy Supplement Form 1250-2
• DD Form 448
• - Military Interdepartmental Purchase Request

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Purchase Requests

• What is a Funding Document?
• Administratively reserves (commit) the funds for
  a specific obligation based on firm requirements
• Certified by the Financial Services office (FSO)
  for availability of funds after having the
  propriety of funds certified within the System
  Program Office (SPO) or Staff Office
• FSO records commitment

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Purchase Requests

• Stages of Funding Accountability
• Commitments
  
• Administrative reservations of funds
• Certify fund availability for future obligations
• Obligations
• Liabilities for goods or services not yet
  received
• Record orders placed, contracts awarded based on
  proper documentary evidence

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Purchase Requests

• Stages of Funding Accountability
• Expenditures
• Liabilities for goods or services received but
  not yet paid for
• Record physical or constructive receipt of goods,
  services performed, and amounts owed without
  current performance requirements
• Record of payments made for goods or services
  received
• AFMC FMRS ch 29

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Purchase Requests

• Lines of Approval
• Office of Primary Responsibility (OPR)
• Deployed commanders and CO determine who may
  submit PRs
• Only COs can obligate the government

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Purchase Requests

• Purchase Descriptions
• What and where to buy
• Price
• Generic description
• Technical requirementsclear and concise
• Leave no room for doubt, but dont be overly
  restrictive
• Abbreviations

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Purchase Requests

• Services, Contract Repair, and Construction
  Buying
• Services and construction are ongoing
• Documentation
• Statement of work (SOW)
• Statement of objectives (SOO)
• Performance-based work statement (PWS)
• Simplified acquisition threshold (SAT)
• Finance and contracting relationship

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Contracting Related Boards

• Ground Combatant Commander responsible for
  ensuring effective and efficient use of support
  and capabilities
• Should consider directing
• Combatant Commander Logistics Procurement Support
  Board (CLPSB)
• Joint Acquisition Review Board (JARB)
• Joint Contracting Support Board (JCSB)

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Contracting Related Boards

• Contracting Related Boards
• Most requirements will require prioritization
  from deployed commanders in the field
• Depending on the requirement/source of funding,
  each PR will need to be approved/prioritized by
  the appropriate commander
• Joint requirements-either joint controlled
  item/service or joint funded the originating
  Service component will hold a service-unique
  requirements board to validate/prioritize the
  Services requests

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Typical Funding Procedures

• Bulk Funding
• Request and Authority to Cite Funds
• CCO responsible fore keeping records on
  obligations and remaining balance of funds
• Other Funding Procedures
• Contact budget office
• Funds Certification Officer

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Funding Procedures
Fund Cite Example 57 8 3400 308 67A2
231010 01 59290 503300 ESP 8Z

• Agency
• FY
• Type of Appropriation
• Fund Code and Fiscal Year
• OAC and OBAN
• RC and CC Code

• Budget Activity Code
• EEIC
• Accounting and Disbursing Number
• Emergency and Special Projects

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Paying Agent Duties

• CCOs and Paying Agents should work jointly to
  accomplish the following
• Ensure their respective duties are
  appointed/documented in writing from the deployed
  commander
• Ensure bulk and multiple types of
  appropriated/non-appropriated funding to support
  the deployed mission
• Establish PR initiation/certification/reconciliati
  on process
• Develop funding strategies to foster business
  partnerships and economic growth in-theater (e.g.
  use of progress, advance interim, and partial
  payments)

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Paying Agent Duties

• DoD Financial Management Regulation, Volume 5,
  Paragraph 020604
• CCOs not normally designated as paying agents
• CCOS must be designated paying agents to make
  cash payments

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Paying Agent Duties

• Payments
• Advance and Partial Payments
• Noncommercial
• Commercial
• Options Instead of Advance Payments
• Considerations
• Partial Payment
• Settlement of Paying Agent Account

43
Summary

• Key Points
• Fiscal Law Constraints
• Types of Funding
• Types of Appropriations
• Uses of DoD Appropriations
• Operations and Maintenance (OM) Funds
• Purchase Requests
• Contracting Related Boards
• Funding Procedures
• Paying Agent duties

44
Agile Contracting SupportAnytimeAnywhere