Government Contracting - DFARS Part 208 - Required Sources of Supplies and Services - Win Federal Contracts

DFARS - 2021
Defense
Federal Acquisition Regulation
Supplement
Complimentary Webinar Series
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com

DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
About The Series
- Complimentary Webinar Series
- Every Wednesday at 12pm EST
- Recorded and posted on our website and YouTube
Channel
- Speakers are attorneys, consultants, subject matter
experts in defense contracting

The National Veteran Small Business Coalition (NVSBC)
is the largest non-profit trade association in the country representing veteran
and service-disabled veteran-owned small business in the federal
marketplace as prime and subcontractors. NVSBC provides networking,
match-making, coaching, and training opportunities for members.
Please visit: www.nvsbc.org

 Full training calendar: virginiaptac.org & useful links
 Register for free counseling: https://virginiaptac.org/services/counseling/
 Your “one stop” shop for Government Contracting assistance
 Reach us at ptac@gmu.edu or 703-277-7750
This procurement technical assistance center is funded in part through a cooperative agreement with the Defense Logistics Agency.

Judy
Bradt, CEO
The Art Of Human Connection
In The Federal Arena
The right data.
For the right
conversations.
With the right people.
At the right time.
Judy.Bradt@GrowFedBiz.com
• Activate your custom sales plan.
• Meet your Federal Humans sooner.
• Grow your Federal Business.
• JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com

Title Date Registration Link Partner
GSA Schedule: What’s In It
For You? (Virtual)
February 24, 2021
9:30am - 11:30am
https://attendee.gotowebin
ar.com/rt/68560953272137
52332
GSA Schedule:
Procurement Training
(Virtual)
March 16, 2021
10:00am - 12:00pm
https://clients.virginiasbdc.o
rg/workshop.aspx?ekey=14
0410024
For You? (Virtual)
May 25, 2021
10:00am - 12:00pm
ar.com/rt/41951342514843
26668
Marketing and Messaging
For Federal Contractors
(Virtual)
July 01, 2021
4:00pm – 6:00pm
https://catalystcenter.ecent
erdirect.com/events/97144
3
For You? (Virtual)
July 08, 2021
12:30pm - 2:0pm
ar.com/rt/19046459221525
46572

About Us
- Professional services for federal contractors
- Market Analysis
- Proposal Writing / Pricing
- Contract Compliance & Administration

Advertise In Our Newsletter:
Reach 23,000+ Subscribers! Includes
Government & Government Contractors
Hello@JenniferSchaus.com

Hot Topics
In Government Contracting
Virtual Conference – Thursday, MAR 04 (8am-11:30am)
AGENDA
Session 1 – CMMC – Where Are We Now?
Session 2 – Strategically Using the SBA’s Mentor-Protege Program
Session 3 – Competitive vs Profitable Pricing – Can You Have It All
Session 4 – NDAA, EO’s & Federal Contracting Opportunities In The
Biden Administration
Session 5 – Back to Business – PPP Eligibility and Forgiveness in 2021

Our 2021 Webinar News
* Use Code “DFARS”
for a $15 Discount!

About Our Speaker
Jeffery Chiow
Rogers Joseph O’Donnell
jchiow@rjo.com
(202) 601-8365

DFARS Part #208
Required Sources of Supplies and Services
Wednesday, 24 February 2021

DFARS Part #208
• 208.002 Priorities for use of mandatory supply sources.
• SUBPART 208.4 —FEDERAL SUPPLY SCHEDULES (FSS)
• SUBPART 208.6 —ACQUISITION FROM FEDERAL PRISON INDUSTRIES, INC. (Significant Market Share)
• SUBPART 208.7 —ACQUISITION FROM NONPROFIT AGENCIES EMPLOYING PEOPLE WHO ARE BLIND OR SEVERELY
DISABLED (AbilityOne)
• SUBPART 208.70 —COORDINATED ACQUISITION (Army, Navy, AF, DLA, DTRA, GSA & IMM)
• SUBPART 208.71 —ACQUISITION FOR NATIONAL AERONAUTICS AND SPACE ADMINISTRATION (NASA)
• SUBPART 208.73 —USE OF GOVERNMENT-OWNED PRECIOUS METALS
• SUBPART 208.74 —ENTERPRISE SOFTWARE AGREEMENTS (DoD ESI Program)

Let’s start with FAR Part 8, specifically 8.002, Priorities for use of mandatory Government sources.
With the exception of the following, which have specific sources:
(a) Public utility services (part 41); (b) Printing and related supplies (subpart 8.8); (c) Leased motor vehicles
(subpart 8.11); (d) Strategic and critical materials (e.g., metals and ores) from inventories exceeding
Defense National Stockpile requirements; and (e) Helium (Part 8.5)
“agencies shall satisfy requirements for supplies and services via mandatory government sources in this order:
(1) Supplies.
(i) Inventories of the requiring agency.
(ii) Excess from other agencies (subpart 8.1).
(iii) Federal Prison Industries, Inc. (subpart 8.6).
(iv) Supplies on the Procurement List maintained by [AbilityOne] ( subpart 8.7).
(v) Wholesale sources, e.g. stock programs of GSA (41 CFR 101-26.3), DLA (41 CFR 101-26.6), VA (41 CFR 101-
26.704), and military inventory control points.
DFARS Part #208

DFARS Part #208
Continuing with services:
(2) Services. Services that are on the Procurement List from AbilityOne (subpart 8.7).
(b) Other sources may be used as prescribed in 41 CFR 101-26.301 (GSA stock items) and in an unusual and compelling
urgency as prescribed in 6.302-2 and in 41 CFR 101-25.101-5 (local purchase).
(c) The statutory obligation for Government agencies to satisfy their requirements for supplies or services available from
AbilityOne also applies when contractors purchase the supplies or services for Government use.

DFARS Part #208
• That mandatory purchasing precedence applies to DoD like any other Agency, but DoD takes off from that
point in the DFARS
• “…agencies shall satisfy requirements for supplies and services from or through the mandatory government sources
and publications listed below in descending order of priority”
• DFARS 208.002
• Subpart 208.70 – Coordinated Acquisition
• Subpart 208.74 – Enterprise Software Agreements

DFARS Part #208
208.4 – Federal Supply Schedules (1 of 3)
• Let’s again start with FAR 8.4
• “The Federal Supply Schedule program is directed and managed by GSA and provides Federal agencies (see 8.004)
with a simplified process for obtaining commercial supplies and services at prices associated with volume buying.
Indefinite delivery contracts are awarded to provide supplies and services at stated prices for given periods of time.
• Parts 13, 14, 15, and 19 (with specific exceptions) do not apply to BPAs or orders placed against FSS contracts (but
see 8.405-5).
• BPAs and orders placed against a MAS, are considered to be issued using full and open competition (see 6.102(d)(3)).
Thus, when establishing a BPA or placing FSS orders ordering activities shall not seek competition outside of the
Schedules or synopsize the requirement.
• 8.405 – sets out the procedures for ordering
• 8.405-1, Supplies and services not requiring a Statement of Work
• 8.405-2, Services requiring a Statement of Work
• 8.405-3, Blanket purchase agreements

• 208.404 – An exercise in cross-referencing
• (a)(i) If only one offer is received for an order >SAT, follow procedures at 215.371
• Promote competition, potentially by resoliciting
• Ensure a fair and reasonable price through cost or price analysis
• (a)(ii) For FSS orders >SAT, follow DFARS 217.7 (directed or assisted non-DoD acquisitions)
• (a)(iii) If there are foreign items follow DFARS Part 225 and FAR Part 25
• (a)(iv) If applicable, use clauses that support (a)(i) – resoliciting and ensuring fair pricing
• 208.405 – Ordering procedures (augmenting FAR 8.405)
• Include an evaluation factor regarding supply chain risk (subpart 239.73) for IT services or supplies that
are for covered systems (full/partial/in support of)
• 208.405-6
• For an order or BPA >SAT, that is a follow-on to an order or BPA justified on the basis that only one
source is capable or was itself a logical follow-on, follow PGI 208.405-6 (one level up)
DFARS Part #208

DFARS Part #208
• 208.406 Ordering activity responsibilities -- Follow PGI 208.406
(1) When ordering from schedules, ordering offices—
• Rules for when to use DD Form 1155, Order for Supplies or Services vs. SF 1449, Solicitation/Contract/Order for
Commercial Items
(2) Schedule orders may be placed orally if—
• The contractor agrees to furnish a delivery ticket for each shipment
• Invoicing procedures are agreed upon.
(3) For purchases where cash payment is an advantage, the use of imprest funds in accordance with DFARS 213.305 is
authorized when—
• The order does not exceed the threshold at FAR 13.305-3(a); and
• The contractor agrees to the procedure.
(4) If permitted under the schedule contract, use of the Governmentwide commercial purchase card—
• Is mandatory for placement of orders valued at or below the micro-purchase threshold; and
• Is optional for placement of orders valued above the micro-purchase threshold

DFARS Part #208
208.6 – Federal Prison Industries
• Implements Section 827 of the 2008 NDAA
• Identify items for which FPI’s share of the DoD market for the supply class including that item is >5%
• List maintained at https://www.acq.osd.mil/dpap/cpic/cp/specific_policy_areas.html#federal_prison
• When acquiring an item on that list:
• Use competitive procedures, e.g. FAR 6.102, FAR 19.5, FAR Part 13 (simplified) or 16.5 (task order)
• Include FPI in the solicitation process
• When acquiring an item where DoD does not have >5% market share:
• Follow FAR 8.602
• CO conducts market research to make unilateral determination whether the FPI item is comparable to supplies
available from private sector that best meet the Government needs re: price, quality, and time of delivery.
• If comparable, purchase from FPI at www.unicor.gov
• If not, follow competitive procedures, inviting FPI to the solicitation

DFARS Part #208
208.7 – Acquisition from Nonprofit Agencies Employing People Who Are Blind or Severely Disabled
AbilityOne Commission
• Start with FAR 8.7, specifically 8.703
• Committee maintains a Procurement List of all supplies and services required to be purchased from AbilityOne
participating nonprofit agencies: http://www.abilityone.gov .
• Questions concerning the Procurement List may be submitted to info@abilityone.gov or
• Via mail to Committee for Purchase From People Who Are Blind or Severely Disabled, 1401 S. Clark Street, Suite
10800, Arlington, VA 22202-3259
• Telephone (703) 603-7740.
• Items identified in the GSA Supply & Customer Service Center Catalogs with a black square and the words "NIB/NISH
Mandatory Source," and in similar catalogs issued by DLA and VA
• Other Federal agencies are required to purchase certain supply items on the Procurement List from GSA, DLA and VA
DFARS Adds:
• Follow PGI 208.705 – Use DD Form 1155, Order for Supplies or Services, to place orders with central
nonprofit agencies

DFARS Part #208
208.70 – Coordinated Acquisition (1 of 3)
• Coordinated Acquisition Program – Commodity Assignments listed in PGI 208.7006
• Integrated Materiel Management Program – DoD 4140.26-M, Defense Integrated Materiel Management
Manual for Consumable Items
• There are “Acquiring departments” and “Requiring departments”
• 208.7002 – Assignment Authority
• Commodity assignments are made to a single DoD department, agency or GSA
• Assignments to the departments and agencies, made by DUSD Logistics
• Assignments to GSA through MOU with GSA by DUSD Logistics
• OCONUS – by the Unified Commanders
• CONUS – if not otherwise assigned, by agreement of the agency heads
• Agreements can be one-time or continuing
• Military interdepartmental purchase request (MIPR) from one department to another – can be oral

• 208.7002-1 Acquiring department responsibilities
• See PGI 208.7002-1
• The acquiring department generally is responsible under coordinated acquisition for—
(1) Operational aspects of acquisition planning (phasing the submission of requirements to contracting,
consolidating or dividing requirements, analyzing the market, and determining patterns for the phased placement of
orders to avoid unnecessary production fluctuations and meet the needs of requiring departments at the lowest price);
(2) Purchasing;
(3) Performing or assigning contract administration, including follow-up and expediting of inspection and
transportation; and
(4) Obtaining licenses under patents and settling patent infringement claims arising out of the acquisition.
(Acquiring departments must obtain approval from the department whose funds are to be charged for obtaining
licenses or settling claims.)
DFARS Part #208

DFARS Part #208
• 208.7002-2 Requiring department responsibilities
• See PGI 208.7002-2
• The requiring department is responsible for—
(1) Ensuring compliance with the order of priority in FAR 8.001 before submitting a requirement to the acquiring department
(2) Providing the acquiring department—
(i-iii) The complete and certified documentation; any additional supporting data that the acquiring department
contracting officer requests; and executed determination and findings required by FAR 6.302-7(c)(1);
(iv-viii) When requesting full and open competition, all data required by FAR 6.202(b)(2); determinations required by
DFARS Part 225 or FAR Part 25 if there are foreign end products; a complete definition of the requirements; justification
required by FAR 17.205(a) for any option quantities requested; a statement whether used/refurbished material, surplus
property, or residual inventory will be acceptable
(ix) A statement whether the acquiring department may exceed the total MIPR estimate and, if so, by what amount; and
(x) Six copies of each MIPR and its attachments (except specifications, drawings, and other data).

208.7003 Applicability [Coordinated Acq. & IMM]
• 208.7003-1 Assignments under IMM
• Acquire all items assigned for IMM from the IMM Manager, except:
• Unusual and compelling urgency – must send copy of contract and statement of emergency to Mgr.
• Authorized local purchase per IMM Mgr.
• Best interests in terms of quality, timeliness and cost – not applicable to items
• Critical to safe operation of weapons; with special security characteristics; dangerous/munitions
• 208.7003-2 Assignments under Coordinated Acquisition
• Must submit to acquiring department all requirements for items assigned for coordinated acq., except:
• Items obtained from 8.002(a)(1) priority, e.g. (i) requiring agency inventory; (ii) excess from other
agencies; (iii) Federal Prisons (UNICOR); (iv) AbilityOne; (v) stock programs of GSA, DLA, VA
• <SAT; emergency purchase (explain emergency); requirements delegated back to requiring activity;
items in R&D stage (FAR 35) if R&D funds used; nuclear ordnance material if design/test controlled
by DoE or DoD, but not dual-use; national security items (FAR 6.302-6); original source follow-on
(FAR 6.302-1); major system component; rapid design; containers; non-catalogued item
DFARS Part #208

DFARS Part #208
208.7004 – 7006 Procedures, MIPRS, Coordinated Acq. Assignments
• 208.7004 Procedures – Follow PGI 208.7004
• 208.7005 MIPR
• Follow PGI 253.208-1 when using DD Form 448, MIPR and
• PGI 253.208-2 when using DD Form 448-2, Acceptance of MIPR
• 208.7006 Coordinated acq. Assignments – Follow PGI 208.7006
• Part 1 – Army Assignments
• Part 2 – Navy Assignments
• Part 3 – Air Force Assignments
• Part 4 – DLA Assignments
• Part 5 – DTRA Assignments
• Part 6 – GSA Assignments

DFARS Part #208
208.71 – NASA Acquisitions
• NASA is authorized to use acquisition services, personnel, equipment and facilities of DoD with their consent,
with or without reimbursement, and to cooperate with DoD departments/agencies in the use of acquisition
services, equipment and facilities
• Departments and agencies shall cooperate with NASA on the basis of mutual agreement
• Follow PGI 208.7102 when contracting or performing services for NASA
• PGI 208.7102
• NASA will use NASA Form 523, NASA-Defense Purchase Request
• DoD will respond within 30 days with DD Form 448-2, Acceptance of MIPR
• DoD entities not required to accept NASA-Defense Purchase Requests for common-use standard stock items it
keeps on hand for prompt delivery at published prices

DFARS Part #208
208.73 – Government–owned Precious Metals
• Integrated Material Manager for refined precious metals is Defense Supply Center, Philadelphia
• “Refined precious metal” means recovered silver, gold, platinum, palladium, iridium, rhodium, or ruthenium,
in bullion, granulation or sponge form, which has been purified to at least .999 percentage of fineness
• Policy for maximum participation in the Precious Metals Recover Program.
• Dod components shall furnish recovered precious metals contained in the DSCP inventory to production
contractors rather than use contractor-furnished precious metals whenever the CO determines it to be in
the Government’s best interest
• Follow PGI 208.7303 for Precious Metals Recovery Program
• See PGI 208.7304 for a list of refined precious metals managed by DSCP
• 208.7305 Contract Clause -- Use clause at 252.208-7000, Intent to Furnish Precious Metals as GFM in all
solicitations and contracts, except:
• When CO has determined required metals not available from DSCP (after consultation with DSCP per
Chapter 11, DoD 4160.21-M, Materiel Disposition Manual; when CO knows the items do not require
precious metals in manufacture; <SAT

DFARS Part #208
208.74 Enterprise Software Agreements
• 208.7400 scope
• Applies to acquisition of commercial software and maintenance, including that which is acquired:
• In system upgrade, as applicable; under service contract; under agreement administered by another
agency; under FSS or BPA; by a contractor authorized to order from Government supply (FAR 51.101)
• 208.7401 Definition
• “Software maintenance” means services normally provided by a software company as standard services
at established catalog or market prices, e.g. the right to receive and use upgraded versions of software,
updates and revisions
• 208.7402 General
• DoD entities shall fulfill requirements for commercial software and relates services in accordance with
DoD Enterprise Software Initiative (ESI) available at www.esi.mil
• Include an evaluation factor regarding supply chain risk (subpart 239.73) when acquiring IT, whether as a
service or as a supply that is a covered system/part/in support
• Follow PGI 208.7403 when acquiring commercial software and services

THANK YOU To Our Speaker
Jeffery Chiow
Rogers Joseph O’Donnell
jchiow@rjo.com
(202) 601-8365

Thank You For Attending!
DFARS - 2021
Defense Federal Acquisition Regulation Supplement
Complimentary Webinar Series

Government Contracting - DFARS Part 208 - Required Sources of Supplies and Services - Win Federal Contracts

Recommended

Recommended

More Related Content

More from JSchaus & Associates

More from JSchaus & Associates (20)

Recently uploaded

Recently uploaded (20)

Government Contracting - DFARS Part 208 - Required Sources of Supplies and Services - Win Federal Contracts