§ 5.1002 NASA Purchase Request and Acceptance.

(a) The NASA-Defense Purchase Request (NASA Form Number 523) will be used by NASA for requesting procurement of supplies or services, from all activities of the Military Departments.

(b) Except as provided in paragraph (d) of this section, within 30 days after receipt of a NASA-Defense Purchase Request, the Military Department concerned will forward to the initiator of the request a DD Acceptance of MIPR Form, DD Form 448-2, in quadruplicate in accordance with instructions contained in § 5.1109. Each DD Form 448-2 will show the action being taken or to be taken to fill the requirement and the name and complete address of the Department of Defense procurement activity for future direct contact by the initiator.

(c) To the extent feasible, all documents including acceptances, contracts, documents, correspondence, shipping

work or project orders, and Standard Form 1080 (Voucher for Transfer between Appropriations and/or Funds) billings will reference the NASA-Defense Purchase Request number and the item number when appropriate.

(d) Acceptance by the Military Department is not required for NASADefense Purchase Requests covering deliveries of common-use standard stock items which the supplying department has on hand or on order for prompt delivery at published prices.

[26 F.R. 5303, June 14, 1961, as amended at 29 F.R. 11820, Aug. 19, 1964]

§ 5.1003 Changes in estimated total prices.

When a Military Department determines that the estimated total price (Block 9 NASA Form 523) of the items to be procured for NASA is not sufficient to cover the required reimbursement, or is in excess of the amount required, a request for an amendment will be forwarded to the NASA originating office. The request will indicate a specific dollar amount, rather than a percentage, and will include justification for any upward adjustment requested. Upon approval of the request, an amendment to the NASA-Defense Purchase Request will be forwarded to the procuring activity.

As used in this subchapter, the following terms have the meanings set forth below:

[25 F.R. 14156, Dec. 31, 1960]

§ 5.1100-1 Coordinated procurement.

Coordinated procurement refers to procurement (a) of supplies under single procurement as defined in § 5.1100–2, and (b) of supplies and services pursuant to procurement agreements (see § 5.1118). [27 F.R. 1696, Feb. 22, 1962]

§ 5.1100-2 Single procurement.

Single procurement refers to procurement of supplies pursuant to assignments of procurement responsibility made by the Secretary of Defense. The following are approved types of single procurement:

(a) Single department procurement whereby one Military Department procures certain supplies to satisfy the requirements of all the Military Departments (including the procurement responsibility of Single Managers); and

(b) Plant cognizance procurement whereby one Military Department procures certain supplies from a particular plant to satisfy the requirements of all Military Departments, which is presently limited to airframes, aircraft engines and propellers.

[27 F.R. 1696, Feb. 22, 1962]

§ 5.1100-3 Requiring department.

Requiring department refers to the Military Department originating a requisition or purchase request for supplies. [25 F.R. 14156, Dec. 31, 1960]

$5.1100-4 Procuring department. Procuring department refers to the Military Department or agency which is assigned the procurement responsibility for the supplies.

[25 F.R. 14157, Dec. 31, 1960]

§ 5.1100-5 Military Interdepartmental Purchase Request (MIPR).

Military Interdepartmental Purchase Request (MIPR) refers to DD Form 448 (Military Interdepartmental Purchase Request) (see § 16.601 of this subchapter) executed by a Requiring Department, as a request for supplies or nonpersonal services, to be procured or furnished by the Procuring Department, or to be manufactured in its own facilities.

[26 FR. 5303, June 14, 1961]

§ 5.1100-6 Acceptance of MIPR.

Acceptance of MIPR refers to DD Form 448-2 (Acceptance of MIPR) (see § 16.602 of this subchapter) executed by a Procuring Department as notice to the Requiring Department that a MIPR has been received and accepted for procurement action.

[26 F.R. 5304, June 14, 1961]

§ 5.1100-7 Consolidated-Reimbursable Procurement (Category I Method of Funding).

Consolidated-Reimbursable

Procure.

ment (Category I Method of Funding) refers to procurement for the account of the Procuring Department, by contract, without separate identification therein of the items being procured for the Requiring Department, and without separate citation of funds of the Requiring Department, with subsequent delivery to and reimbursement by the Requiring Department.

[26 FR. 5304, June 14, 1961]

§ 5.1100-8 Direct Citation Procurement (Category II Method of Funding). Direct Citation Procurement (Category II Method of Funding) refers to a procurement having separate identification of the items and citing the funds of the Requiring Department, and may be accomplished by combining the requirements of two or more Departments under one contract with separate schedules showing the quantities, prices, dollar amounts, and citation of funds of each Requiring Department, or by

Single procurement in the form of single department procurement shall be effected whenever it will result in net advantages to the Department of Defense as a whole, except so far as it can be demonstrated that the use of such a procurement method will adversely affect military operations. Single department procurement assignments in Alaska, Hawaii, and outside the remainder of the United States, regardless of funds utilized, will be determined by the respective Unified Commanders. Implementation of such assignments will be effected within the unified commands under the direction of the Unified Commanders. [30 F.R. 6968, May 25, 1965]

§ 5.1102 Responsibilities under single

procurement.

[25 F.R. 14157, Dec. 31, 1960]

§ 5.1102-1 Single department procure

ment.

The procuring department is generally responsible for the following under single department procurement:

(a) Operational phases of procurement planning (phasing the submission of requirements, consolidating or dividing requirements, analyzing the market, and determining patterns for the phased placement of orders in such a manner as to assure meeting the needs of the Military Departments at the lowest possible price to the Government, and at the same time avoiding unnecessary peaks and valleys of production);

(b) Purchasing;

(c) Contract administration, including arrangements for followup and expediting;

(d) Acquisition of licenses under patents or other proprietary rights covering the subject matter of the procurement and the settlement of patent infringement claims arising out of the procurement. Approval of the Military Department or Departments whose funds are to be charged for the acquisition of licenses or settlement of claims will be obtained;

(a) The procuring department assigned responsibility for plant cognizance procurement is responsible for the following functions related to procurement and mobilization planning for airframes, aircraft engines, and propellers produced in the plants assigned:

(1) Procurement responsibility: (i) Purchasing all items produced in the plant, except:

(a) Research and development projects;

(b) Items or services which the Requiring Department and the Procuring Department agree may be purchased direct from the manufacturer by the Requiring Department;

(c) Overhaul contracts; and

(d) Industry preparedness measures covering items for which an allocation of manufacturing capability has been made under the DOD Industrial Readiness Planning Program, or such other industry preparedness measures as the procuring department may initiate or determine to be appropriate.

(ii) Contract administration of all contracts for items procured in accordance with subdivision (i) of this subparagraph;

(iii) Arrangement for inspection:

(a) Items produced in the plant which are procured in accordance with subdivision (i) of this subparagraph; but

(b) In cases where items are procured by other than the procuring department, the requiring department will perform the inspection services required or arrange with the procuring department for inspection of such items.

(iv) Arrangement for shipment of all items for which it has inspection responsibility;

(v) Auditing and cost accounting services for all items produced in the plant; and

(vi) Coordination of production capacity:

(a) By notifying other departments that production is reaching a saturation point or that excess production capacity is available; and

(b) By coordinating expansion of production capacity.

(2) Mobilization planning responsi bility:

(i) Coordination of all phases of mobilization planning with the assigned plant by any branch of the Armed Services; and

(ii) Assignment of Armed Services Procurement Planning Officer (ASPPO) responsibility to an appropriate office within the Procuring Department for the conduct of the DOD Industrial Readiness Planning Program and preparation of a Request for Planning Action (DD Form 403). (The Remarks block of this form will contain an explanation that the plant has been assigned under the DOD Plant Cognizance Program and that Industrial Readiness Planning Program records should be corrected accordingly. This pertains to changes of ASPPO assignments within or between Procuring Departments. Changes of mobilization planning responsibility between Departments will be accomplished as part of changes in overall DOD plant cognizance.)

(b) The Requiring Department, in dealing through the Procuring Departments, is responsible for:

(1) Providing funds necessary to effect the purchase of required items and stating limitations on use of such funds;

(2) Stipulating quantity, quality, delivery requirements, and shipping instructions;

(3) Taking delivery of all items as specified in the contract delivery schedule;

(4) Keeping the procuring department advised of direct dealings with the plant on procurement of exempted items; and

(5) Keeping the procuring department advised of planned or contemplated procurements of items produced in the plant.

(c) Specific plant assignments are set forth in § 5.1203.

[27 F.R. 1696, Feb. 22, 1962]

§ 5.1103 General principles governing implementation of procurement as signments.

[25 F.R. 14157, Dec. 31, 1960]

§ 5.1103-1 Standard format-develop ment and promulgation of implementing procedures.

Implementation of commodity procurement assignments shall be in accordance with Attachment 2 of Enclosure

(1) of Department of Defense Instruction 4115.1, dated April 12, 1961, Subject: Department of Defense Coordinated Procurement Programs-Commodity Assignments. Assignments of Department of Defense Plant Cognizance shall be carried out in accordance with Department of Defense approved Implementing Procedures, dated March 21, 1952.

127 F.R. 1697, Feb. 22, 1962]

§ 5.1103-2 Relationship

between

re

search and development and single procurement.

Items are not subject to procurement assignment until they have reached the production stage.

[25 F.R. 14157, Dec. 31, 1960]

§5.1103-3 Small dollar value purchases.

Requirements of small dollar value will be procured in accordance with the provisions of the approved implementing procedures covering the particular assignment. Such implementing procedures will normally provide a small dollar limitation of $2,500; however, in special situations the limit may vary depending upon the commodity area and may be expressed either in a higher or lower dollar value, by tonnage, less-thancarload lot quantities, or other units, as appropriate. Such implementing procedures will clearly state that requirements of a value or quantity less than the prescribed limitations will, wherever feasible, be procured by the Requiring Department. A MIPR for nonmilitary type items of a value or quantity less than the prescribed limitations will contain a notation that procurement by the Requiring Department was not considered to be feasible. A MIPR for a military type item need not contain such a notation. The Procuring Department will not return a MIPR submitted in accordance with the foregoing but will prosure such items.

[25 FR. 14157, Dec. 31, 1960, as amended at 27 FR. 1697, Feb. 22, 1962]

shall be transmitted promptly to the purchasing activity of the Procuring Department.

[25 F.R. 14157, Dec. 31, 1960]

§ 5.1103-5 Department of Defense Manufacturing Establishment.

When procurement assignments have been made for items required by manufacturing establishments of the Military Departments, these items shall be obtained through the facilities of the Procuring Department unless such action will unduly hinder or delay production. When procurements are made other than through the Procuring Department, one copy of the contractual instrument bearing or accompanied by a statement of the circumstances necessitating such procurement shall be transmitted promptly to the purchasing activity of the Procuring Department. This section is not applicable when purchases are made pursuant to § 5.1103-3.

For items which have been decentralized by requiring departments, the procuring department will establish, in collaboration with the requiring departments, an economical central buying point. The economical central buy point will be $2,500 or higher as determined by the inventory control point of the procuring department. When requiring departments intend to procure decentralized items in amounts exceeding the economical central buy point, such procurement will be accomplished by the procuring department.

[27 F.R. 1697, Feb. 22, 1962]

§ 5.1104 Items in short supply.

In cases where shortages develop in supplies being purchased, the normal procedure will be to resolve the problem on a Departmental level. If mutual agreement cannot be reached, subject shall be referred to the Assistant Secretary of Defense (Supply and Logistics) for decision.

[25 F.R. 14157, Dec. 31, 1960]

the

§ 5.1105 Transfer of uncompleted con

tracts.

[25 F.R. 14157, Dec. 31, 1960] § 5.1105-1 Effect of assignment of procurement responsibility.

As a general rule, when the procurement responsibility for a commodity or

§ 5.1105-3

Contracting officers under transferred contracts.

In the case of any contract transferred, or to be transferred, to any Department, the successor to the contracting officer for each such contract shall be the Head of the Procuring Activity (or any contracting officer thereof) to which the administration of any such contract is assigned, and any such successor shall have all of the rights and responsibilities of a contracting officer under such transferred contract.

[25 F.R. 14158, Dec. 31, 1960]

§ 5.1106 Purchase authorization. [25 F.R. 14158, Dec. 31, 1960]

§ 5.1106-1 MIPR's or other Authorized Purchase Requests.

Military Interdepartmental Purchase Requests or other authorized purchase requests (see Subpart F, Part 16 of this subchapter), when received by the Procuring Department, shall be the authority to procure the supplies or nonpersonal services in accordance with single procurement assignments or agreements between the Departments concerned as provided in § 5.1118. The Procuring Department is authorized to create obligations against the funds cited in a MIPR without further referral to the Requiring Department. The Procuring Department has no responsibility

to determine the validity of a stated requirement in an approved procurement request; however, it should bring to the attention of the Requiring Department apparent errors in the requirement. [26 F.R. 5304, June 14, 1961]

§ 5.1106-2 Determinations and findings.

(a) General. (1) When procurement is by negotiation, the Procuring Department, except as provided in subparagraphs (2) and (3) of this paragraph, shall make the determinations and findings in accordance with Subpart C, Part 3, of this chapter, with respect to coordinated procurement. The Requiring Department shall furnish with the purchase request the information required by the Procuring Department to develop the determinations and findings.

(2) With respect to 10 U.S.C. 2304(a) (13), the Requiring Department shall make the determinations and findings in accordance with Subpart C, Part 3 of this chapter. Two copies of the determinations and findings shall be attached to the purchase request and shall be utilized by the Procuring Department as authority for negotiation, and the Procuring Department need not make further determinations and findings.

(3) With respect to 10 U.S.C. 2304(a) (16) and when the procurement agreements under § 5.1118 (as distinguished from single procurement) do not include mobilization planning responsibility, the Requiring Department shall make the determinations and findings in accordance with Subpart C, Part 3 of this chapter. Two copies of the determinations and findings shall be atached to the purchase request and shall be utilized by the Procuring Department as authority for negotiation, and the Procuring Department need not make further determinations and findings. With respect to single procurement (§ 5.1100-2), the Procuring Department shall make the determinations and findings.

(b) Foreign end products. Where a foreign end product is specified by the Requiring Department, that Department is responsible for determining that a domestic source end product is not available as required by § 6.102-3(b) of this chapter. Two copies of the determination that a domestic source end product is not available shall be furnished to the Procuring Department with the military interdepartmental purchase request. [30 F.R. 5986, Apr. 29, 1965]