(a) The time of delivery or performance is an essential element for inclusion in a contract and must be clearly set forth in each MIPR. In submitting MIPR's, the Requiring Department should take into account the normal administrative lead time of the particular commodity in order to insure delivery by the date required. Delivery and performance schedules on MIPRS shall be designed to meet the requirements of the particular procurement and must be realistic (see § 1.305 of this subchapter). If the delivery schedule as set forth in the MIPR is unrealistic or cannot be accepted by the Procuring Department, the DD Form 448-2, "Acceptance of MIPR" will be so annotated (see § 5.1109-3). Changes in the requested delivery schedule shall be accomplished as set forth in § 5.1108-6. (b) In those cases where a short delivery schedule is mandatory, the MIPR shall be marked "URGENT" in bold letters. The Requiring Department justification for the "URGENT" marking shall be set forth on the MIPR, or an attachment thereto, so that the Procuring Department may determine whether or not it is necessary to apply expediting techniques necessary to assure the required delivery (see § 3.801-3 of this subchapter). [26 F.R. 5304, June 14, 1961] § 5.1106-4 Specifications. The Requiring Department shall be responsible for providing the Procuring Department a list of (or copies of) specifications required for purchase. Under no circumstances will the Procuring Department direct or authorize deviations or waivers from the specifications cited in the MIPR without express authority of the Requiring Department. Required changes in specifications shall be accomplished as set forth in § 5.1108-6. [26 FR. 5304, June 14, 1961] § 5.1106-5 Utilization of existing Department of Defense assets. The Requiring Department is responsible for insuring compliance with § 1.302-1 of this chapter prior to submitting military interdepartmental purchase requests for procurement action. [29 F.R. 11820, Aug. 19, 1964] § 5.1107 Funds and payments. [26 FR. 5304, June 14, 1961] § 5.1107-1 Citation of appropriation and funds of Requiring Department. Contracts and orders shall cite the appropriations or funds of the Requiring Department unless it is not considered feasible and economical to relate payments directly to the end item and ultimate use of the material under procurement. The Procuring Department will, for each commodity, determine which type of funding (direct citation or consolidated reimbursable procurement) will generally be used. The conditions under which it is considered not feasible to cite the funds of the Requiring Department are: (a) Procurement of the end item involves separate procurement of components to be assembled by the Procuring Department. (b) At the time of acceptance of the purchase request (MIPR), it is not considered feasible to identify specific quantities of the end item with the respective Requiring Department because of the possibility of allocation of the material upon a different basis as completed items are delivered. (c) Payments will be made without reference to deliveries of end items; for example, cost-reimbursement type contracts, and fixed-price contracts with progress payment clauses. Only the funds of the Procuring Department will be cited in the consolidated contracts which will provide for payment by the Procuring Department. Reimbursement billings and shipping documents will be referenced to the MIPR number, submitted to the Requiring Department, and paid by disbursing offices of that Department. [26 F.R. 5304, June 14, 1961] § 5.1107-2 Citation of funds of Procuring Department. In cases where citation of the funds of the Requiring Departments is not feasible, funds of the Procuring Department will be cited subject to reimbursement upon delivery to the Requiring Department. In those cases, contracts and orders will provide for payment by the Procuring Department. [26 F.R. 5304, June 14, 1961] § 5.1108 Preparation and use of DD Form 448/448c (MIPR). DD Forms 448 and 448c are substantially self-explanatory. If desired, each (a) MIPR Number: The MIPR number will consist of: (1) The requiring agency identification code as prescribed in the DOD Activity Address Directory (AR 725-50-1; DSAH 4140.1 (for the Department of the Navy and the Defense Supply Agency); AFM 75-6; MCO P4420.2A; CG 364), (2) The last digit of the fiscal year, and (3) The number of the particular MIPR (numbered consecutively by the requiring activity). Amendments will be numbered with the MIPR number suffixed with the amendment number assigned in consecutive numbered sequence. (b) Appropriate checks in Item 9 will be accomplished in compliance with DOD policy which requires interservice screening of items included in Commodity Coordination Groups to determine stock availability within other Departments prior to preparation of a DD Form 448. Items within the scope of MILSTRIP (see DOD operating manual "MILSTRIP" of 1 September 1961, as amended) which are determined to be available from within stocks of other Departments will be obtained by use of DD Form 1348/1348m, "DOD Single Line Item Requisition System Document". Items not covered by MILSTRIP and determined to be available from within stocks of other Departments will be obtained by use of DD Form 1149, “Requisition and Invoice/Shipping Document". (c) Attachments to MIPRS (Item 10) must be prepared in sufficient numbers so that each copy of a MIPR submitted to the Procuring Department is complete with a copy of all attachments. (d) If payment is to be made by an office other than the office to which the invoice is to be mailed (Item 13), the information to this effect will be set forth in detail as an attachment to the MIPR. (e) The Requiring Department shall initiate and forward DD Form 254, "Security Requirements Check List", when work or information in connection with a requested procurement requires security protection. [26 F.R. 5304, June 14, 1961, as amended at 29 F.R. 9751, July 21, 1964] § 5.1108-2 Consolidation of require ments. The primary object of coordinated procurement is to obtain for the Government maximum economy through the consolidation of requirements and the elimination thereby of competitive purchases among the Departments. The Procuring Department will whenever possible consolidate in one contract its own requirements plus all requirements received via MIPRS. A MIPR normally shall be restricted to one major end item including its required spare parts, ground support equipment, etc., when applicable. MIPRS for other than major end items normally shall be limited to items within a single Federal Supply Classification. [26 F.R. 5305, June 14, 1961] § 5.1108-3 Cutoff dates for submission of MIPRs. (a) Unless otherwise agreed between the Departments, a cutoff date of February 28 of each year is established for the receipt of MIPRS citing annual (expiring) appropriations which must be obligated by June 30 of that fiscal year. If circumstances arise which require the submission of MIPRS citing expiring appropriations after the cutoff date. the Requiring Department will communicate with the Procuring Department prior to submission to ascertain whether or not it will be possible for the Procuring Department to execute a contract or otherwise obligate the funds by the end of the fiscal year. Procuring Departments will make every effort to obligate funds for all such MIPRS accepted after the cutoff date. However, acceptance of a late MIPR does not constitute assurance by the Procuring Department that all such funds will be obligated. The provisions of these instructions are not to be construed as restrictive in the processing of MIPRS when it is within the capabilities of the Procuring Department to execute contracts or otherwise obligate the funds prior to the end of the fiscal year. (b) MIPRS citing continuing appropriations are not restricted by law to time limits for obligation; therefore, the cutoff date of February 28 is not applicable to such MIPRS and procurement action should continue regardless of whether obligation will be accomplished before or after the end of the fiscal year. However, as the timely accomplishment of obligations is a factor affecting delivery of material, every effort must be made by the Procuring Department to obligate available funds as soon after receipt of the MIPR as is possible. [26 F.R. 5305, June 14, 1961] $5.1108-4 Notification of inability to obligate. On May 1 of each fiscal year, the Procuring Department will advise the Requiring Department of any MIPRS on hand citing annual appropriations on which they will be unable to obligate the funds prior to the fund expiration date. If an unforeseen situation develops after May 1 which will prevent execution of a contract, the Procuring Department will notify the Requiring Department of that fact by the most expeditious means and return the MIPR accompanied by a letter of transmittal authorizing purchase by the Requiring Department including the reason that procurement could not be accomplished. [26 F.R. 5305, June 14, 1961] § 5.1108-5 Number of copies to be submitted. Unless specific agreements are reached between Departments, only ten copies of each MIPR (each complete with all attachments) will be forwarded to the Procuring Department. 126 F.R. 5305, June 14, 1961] All changes, whether prior to or after conversion to a contract, that affect the contents of the MIPR must be processed as a MIPR amendment. This includes such changes as a decrease in quantity, increase in funds, decrease in funds, change in part, stock or drawing number, packaging, specifications, delivery schedules, engineering change proposals, etc., subject to the provisions of § 5.1112, as applicable. Such changes can be initially provided by expeditious means such as telegraphic message but shall be confirmed by a MIPR amendment. If requirements increase the quantity of items ordered or cover additional items of supplies or services not provided for in the original MIPR, such increased requirements shall be submitted on a new MIPR which will cross reference the original MIPR. (a) Only those items of the DD Form 448 that are applicable to the change, revision, etc., being written, which vary or deviate from the data shown on the basic MIPR or prior amendment thereto will be filled out. All other items will have "n/c" inserted to reflect no change. However, basic information in items 1 through 8 must always be shown. [26 F.R. 5305, June 14, 1961] § 5.1108-7 funds. Requests for additional When the Procuring Department requires additional funds to complete procurement actions for the Requiring Department, the request for additional funds must identify the exact items involved and the reason why additional funds are required. The Requiring Department shall take expeditious action to provide such funds by an amendment to the MIPR or to reduce requirements accordingly. In case of any anticipated delay in furnishing required additional funds, the Procuring Department will be advised accordingly. [26 F.R. 5305, June 14, 1961] § 5.1109 Acceptance of MIPR. Within 30 days after receipt of a MIPR, the Procuring Department shall formally accept the MIPR by accomplishment of DD Form 448-2, "Acceptance of MIPR". If this time limit cannot be met, the Requiring Department will be informed of the reason for the delay, and the anticipated date the MIPR will be accepted. When accepted for consolidated-reimbursable procurement, the accomplished DD Form 448-2 is the authority for the Requiring Department to record the obligation of funds (DOD Directive 7220.6). When accepted for direct citation procurement, the accomplished DD Form 448-2 is notification that copies of contracts will be furnished at a later date and a conformed copy of the contract will be the authority to record the obligation. The accepting activity of the Procuring Department will remain responsible for the MIPR even though that activity may split the MIPR into segments for actions among other procurement activities. [26 F.R. 5305, June 14, 1961] § 5.1109-1 Qualified acceptance. Where contingencies, price revisions or variations in quantities are anticipated by the Procuring Department under consolidated-reimbursable procurement, the acceptance will be SO annotated on DD Form 418-2. When the acceptance is qualified, the Procuring Department will periodically advise the Requiring Department prior to submission of billings, of any changes in the acceptance figure so that an amendment to the MIPR may be issued by the Requiring Department and the appropriate adjustment may be made to the recorded obligation to reflect the current price. [26 F.R. 5305, June 14, 1961] § 5.1109-2 Non-qualified acceptance. If the acceptance of a MIPR is not qualified by the Procuring Department for anticipated contingencies under consolidated-reimbursable procurement, the price on the acceptance will be final and will be the one billed at time of delivery. [26 F.R. 5305, June 14, 1961] § 5.1109-3 Preparation and use of DD Form 448-2. (Acceptance of MIPR). (a) DD Form 448-2 is substantially self-explanatory, however, certain details are defined below. Only pertinent items should be accomplished. (1) Check the specific terms in Item 6 under which the MIPR is being accepted. (See § 5.1107.) (2) If any one of the MIPR line items is not accepted, Item 7 will be checked and the affected MIPR line item number and reason recorded in Item 13. (3) Items 8 and 9 will be used only: (i) When Item 6c acceptance is indicated, identify the MIPR line item numbers that will be provided under each method of financing in Item 8a and 9a respectively; or (ii) If quantities or estimated costs cited in a MIPR require adjustment, the affected MIPR line item numbers will be listed together with the adjusted quantities or estimated costs in the columns provided under items 8 and 9 as may be appropriate. (4) Whenever a MIPR is accepted in part or in total under Category II (direct citation) method of financing, the Procuring Department will forecast in Item 10 the approximate date that contractual placement is expected to be accomplished. (5) Enter the total amount of funds in Item 11 required by the Procuring Department to fund the MIPR items, as accepted. (6) Complete Item 12 only in those cases where the amount recorded in Item 11 is not in agreement with the amount recorded in Item 5. This will serve either as (i) request on the Requiring Department to issue a MIPR amendment to provide the additional funds required, or (ii) authority for the Requiring Department to withdraw the available excess funds. When funds of two or more appropriations are involved, proper breakdown information will be provided in Item 13. (7) Item 13 will be used to record (1) justification, by MIPR line item, for any additional funds required; (ii) explanation for rejection of MIPR whether in part or in total, and (iii) such other data as may be pertinent. The (b) DD Form 448-2 shall be accomplished on all MIPR amendments involving an adjustment of funds. Procuring Department will acknowledge receipt of a MIPR amendment not involving an adjustment of funds when so requested in the letter transmitting the amendment. (c) The Requiring Department will be furnished four copies (one signed) of each accomplished DD Form 448-2 unless otherwise agreed between the Departments. [26 F.R. 5306, June 14, 1961] § 5.1109-4 Withdrawal of funds. (a) When the Procuring Department accepts a MIPR for consolidated-reimbursable procurement in a lesser amount than authorized on the MIPR, the DD Form 448-2 is the authorization for the Requiring Department to withdraw such excess funds by MIPR amendment. Upon receipt of the final billing (SF 1080) and a subsequent determination that all items requested on the MIPR have been delivered and billed in an amount less than the MIPR, the Requiring Department may adjust their fiscal records accordingly without authorization from or notice to the Procuring Department. (b) When the Procuring Department has accepted a MIPR for direct citation procurement, and initial contract placement is completed, any unused funds remaining on the MIPR become excess and are no longer authorized for use of the Procuring Department. Any such excess funds will be immediately reported to the Requiring Department. Although the Procuring Department is prohibited from further use of such excess funds, the Requiring Department will confirm the In the procurement of end items where the Government furnishes components which are covered by a procurement assignment, such components shall be procured in accordance with the procurement assignment. However, direct purchase may be made by a Requiring Department in exceptional cases where agreement is reached with the Procuring Department or is authorized in accordance with § 5.1201. [26 F.R. 5306, June 14, 1961] § 5.1110-3 Purchase of components over and above those initially purchased with the end item. The procurement of components covered by a procurement assignment, over and above those initially purchased with the end item, shall be effected in accordance with the procurement assignment. However, direct purchase may be made by a Requiring Department in exceptional cases where agreement is reached with the Procuring Department or is authorized in accordance with § 5.1201. [26 F.R. 5306, June 14, 1961] § 5.1111 orders. Distribution of contracts and The Procuring Department will make bulk distribution to the Requiring Department of ten copies of all contracts and orders (including modification, changes, etc.) directly citing the funds of the Requiring Department. Two of the ten copies will be signed or authenticated. If the Procuring Department incorporates MIPR requirements into existing contracts by issuance of supplemental agreements, etc., one copy of the basic contract will be furnished to the 315 [26 F.R. 5306, June 14, 1961] § 5.1112 Cancellation of requirements. (a) Direct citation Procurement. When all or any part of the supplies or services requested in the MIPR are to be canceled by the Requiring Department, that Department will so notify the Procuring Department by telegraphic notice. In the event that the Procuring Department has not entered into a contract for the supplies and services to be canceled, the Requiring Department will be immediately notified to that effect. Upon receipt of such notification the Requiring Department shall initiate a MIPR amendment to revoke the estimated amount shown on the original MIPR for the canceled items. (1) In the event that the items to be canceled have already been placed under contract, the following procedure will apply. Within 30 days after receipt of the notice of cancellation from the requiring department, the procuring department will issue a Termination Data Letter to the requiring department (original and 4 copies) which will contain as a minimum the information set forth below: Subject: Termination Data Re: Termination No. Contractor To: 1. As termination action is now in progress on the above contract, the following information is submitted: (a) Brief Description of Items terminated. (b) You are notified that the sum of $_____ is available for release under the subject contract which sum represents the difference between $------, the value of items terminated under subject contract, and $------ estimated to be required for settlement of the terminated contract. The estimated amount available for release is |