Overview
FAR Subpart 17.7 establishes the policies and procedures for nondefense agencies (such as GSA or NASA) performing acquisitions on behalf of the Department of Defense (DoD). It ensures that when a civilian agency buys supplies or services for the DoD, the procurement complies not only with standard Federal Acquisition Regulations but also with DoD-specific laws, financial regulations, and the Defense Federal Acquisition Regulation Supplement (DFARS).
Key Rules
- Certification Requirement: A nondefense agency can only conduct acquisitions for the DoD exceeding the Simplified Acquisition Threshold (SAT) if the head of that agency has certified compliance with applicable procurement requirements for that fiscal year.
- Regulatory Compliance Scope: "Compliance" is defined as following the FAR, DoD financial management regulations, DFARS, DoD class deviations, and DFARS Procedures, Guidance, and Information (PGI).
- Annual Deadline: Nondefense agencies must submit their certifications of compliance to the DoD Principal Director, Defense Pricing and Contracting, within 30 days of the start of each fiscal year.
- Applicability Exception: These rules do not apply to joint programs conducted between the DoD and elements of the Intelligence Community (e.g., CIA, ODNI).
- Waiver Authority: The Under Secretary of Defense for Acquisition and Sustainment (USD(A&S)) has the authority to waive the certification requirement if it is determined to be in the best interest of the DoD.
Responsibilities
- DoD Acquisition Official:
- Must provide the servicing nondefense agency with any DoD-unique terms, conditions, statutes, or regulations.
- If no DoD-unique requirements exist, they must inform the nondefense contracting officer of this in writing.
- Nondefense Agency Head:
- Responsible for certifying that their agency's policies and internal controls are adequate to meet DoD-specific procurement standards.
- Nondefense Agency Contracting Officer:
- Responsible for ensuring that the specific support provided to the DoD complies with the FAR and all provided DoD-unique requirements.
- Under Secretary of Defense for Acquisition and Sustainment (USD(A&S)):
- Responsible for reviewing and issuing written waivers for the acquisition of supplies or services through nondefense agencies when necessary.
Practical Implications
- Prevention of "Regulation Shopping": This subpart prevents DoD entities from using civilian agencies to circumvent stricter defense-specific procurement laws (like the Berry Amendment or specific specialty metals restrictions).
- Increased Administrative Burden on Civilian COs: Contracting Officers at non-DoD agencies must become familiar with DFARS and DoD PGI when handling DoD funds, which may require additional training or coordination.
- Interagency Agreement Complexity: When drafting Interagency Agreements (IAAs) or Military Interdepartmental Purchase Requests (MIPRs), DoD officials must be diligent in attaching "DoD-unique" clauses, as the civilian CO is not inherently required to know every defense-specific deviation unless notified.
- Fiscal Year Start-up: There is a critical window at the beginning of each October where DoD officials must verify that the assisting agency has filed its annual certification before placing large new orders.