Acquisition Policy SCM-OC July 2015
Lesson Outline US DOD Acquisition Policy and Authority Acquisition Framework USG, Foreign Government and Industry procurement relationship Offsets
01 August And / Or Procurement Where is the USG going to get “our stuff” from and how will it happen? Stock
Acquisition Policy Acquisition for FMS purchasers will be in accordance with U.S./DoD regulations and procedures. This affords the foreign purchaser the same benefits and protection that apply to DoD procurement and is one of the principal reasons why foreign governments and international organizations prefer to procure through FMS channels.
SAMM C6.3.1: SAMM C6.3.1: Federal Acquisition Regulation (FAR) provisions applicable to the DoD also apply to FMS procurements. DFARS Subpart : DFARS Subpart : The Defense Federal Acquisition Regulation Supplement (DFARS) apply to purchases and contracts by DoD activities made in support of foreign military sales. Acquisition Authority
Acquisition Framework
01 August Defense Acquisition Management Framework Defense Acquisition System (DoDD )DoDD and Joint Capabilities Integration & Development System (JCIDS - CJCSI H)CJCSI H Operations & Support BA Engineering & Manufacturing Development Production & Deployment Operations & Support C Materiel Solution Analysis Technology Development Full Rate Production Decision Materiel Development Decision Sustainment Disposal Low Rate Initial Production Full-Rate Prod & Deployment Integrated System Design System Capability & Manufacturing Process Demonstration Foreign Military Sales USD (Policy) LOAs DISAM
01 August Defense Acquisition Management Framework Defense Acquisition System (DoDD )DoDD and Joint Capabilities Integration & Development System (JCIDS - CJCSI H)CJCSI H Operations & Support BA Engineering & Manufacturing Development Production & Deployment Operations & Support C Materiel Solution Analysis Technology Development Full Rate Production Decision Materiel Development Decision Sustainment Disposal Low Rate Initial Production Full-Rate Prod & Deployment Integrated System Design System Capability & Manufacturing Process Demonstration Defense Acquisition University DISAM Foreign Military Sales USD (Policy) LOAs International Armament Cooperation Programs USD (AT&L) International Agreements
01 August Procurement Relationships
01 August Buyer/Seller Relationships United States Government ForeignGovernmentForeignGovernmentDefenseContractorDefenseContractor LOA CONTRACT 1 2
DoD Procurement Relationships ItemManagerItemManager ContractingOfficerContractingOfficer Procurement Contract United States Government SystemManagerSystemManager Purchase Request Authorizations & Appropriations DefenseContractorDefenseContractor
FMS Procurement Relationships CaseManagerCaseManager ItemManagerItemManager ContractingOfficerContractingOfficer ForeignGovernmentForeignGovernment LOA Procurement Contract United States Government SystemManagerSystemManager MILSTRIP Purchase Request Directive DefenseContractorDefenseContractor
Procurement Methods Competitive Method Default - procurement method Noncompetitive Method Exception - Country request for procurement using other than full and open competition (commonly referred to as “sole source”)
FMS Source Selection LOA Standard Terms & Conditions, Sec 1.2 The USG will furnish the items from its stocks and resources, or will procure them under terms and conditions consistent with DoD regulations and procedures.
Customer In Contract Process At contracting officer discretion, customer can participate in discussions with industry on: Technical Specifications Delivery Schedules Price/Performance Tradeoffs Other Requirements Unique to FMS Purchaser
Customer In Contract Process FMS Customer Cannot: Observe Negotiations Involving Cost or Pricing Data Receive contractor proprietary data Direct exclusion of specific firms
Contract Administration Procuring Contracting Officer (PCO) DoD Contracting Officers conduct source selection, contract negotiation, and contract award. Work in the Program Management Offices and Program Executive Offices Administrative Contracting Officer (ACO) Defense Contract Mgmt Agency (DCMA) performs contract administration and quality assurance Defense Contract Audit Agency (DCAA) auditors support both PCOs and ACOs
Contract Administration CaseManagerCaseManager ItemManagerItemManager MILDEP PCO ForeignGovernmentForeignGovernment LOA United States Government SystemManagerSystemManager MILSTRIP Purchase Request PR Directive Negotiate & Award DCMAACODCMAACO Administer DefenseContractorDefenseContractor
Offsets
Offset Definition Commercial compensation practices demanded by a foreign purchaser and agreed to by a contractor that obligate the contractor to perform actions that will “Offset” the outflow of money.
Offset Relationships United States Government ForeignGovernmentForeignGovernment United States Contractor Contractor LOA CONTRACT OFFSET 1 23
Direct = Compensation in goods related to defense system being sold Indirect = Compensation in goods unrelated to the defense system sold Indirect Offset deemed allocable and reasonable per DFARS SUBPART Types of Offsets
Release of Contract Data SAMM C SAMM C SAMM C Contractual obligations between the USG and FMS purchaser are contained in LOA FMS purchaser has no privity of contract and therefore no legal right to the contract Release can be considered if contract is unclassified and only covers purchaser’s requirement