17.703 Policy
Source: FAR 17.703 on acquisition.gov
Nondefense agencies must certify annual compliance with all DoD and federal procurement requirements for acquisitions above the simplified acquisition threshold, unless a waiver is granted.
Overview
FAR 17.703 establishes the policy for nondefense agencies conducting acquisitions on behalf of the Department of Defense (DoD) when the value exceeds the simplified acquisition threshold. It requires nondefense agencies to certify compliance with all applicable procurement requirements, including DoD-specific regulations, unless a waiver is granted. The section outlines certification, notification, and documentation procedures to ensure that DoD’s unique requirements are incorporated and that all relevant laws and regulations are followed.
Key Rules
- Certification Requirement
- Nondefense agencies must certify annually that they comply with all applicable procurement requirements for DoD acquisitions above the simplified acquisition threshold, unless a waiver is granted.
- Compliance Standards
- Agencies must adhere to the FAR, DFARS, DoD financial management regulations, and any DoD-unique requirements provided by the DoD acquisition official.
- Submission of Certifications
- Certifications must be submitted within 30 days of the start of each fiscal year to the Principal Director, Defense Pricing and Contracting.
- Provision of DoD-Unique Requirements
- DoD acquisition officials must provide any DoD-unique terms and conditions to the nondefense agency contracting officer, or confirm in writing if none exist.
- Waiver Process
- The Under Secretary of Defense for Acquisition and Sustainment may waive the certification requirement for specific acquisition categories if necessary for DoD interests.
- Public Availability
- Certifications, waivers, and related information are made publicly available online.
Responsibilities
- Contracting Officers: Ensure compliance with all applicable procurement requirements and incorporate DoD-unique requirements as provided.
- Contractors: Must comply with all incorporated DoD and federal procurement requirements in contracts awarded through nondefense agencies.
- Agencies: Nondefense agencies must certify compliance, submit documentation, and ensure their processes meet DoD and federal standards.
Practical Implications
- This policy ensures that DoD’s interests and regulatory requirements are protected when nondefense agencies conduct acquisitions on its behalf.
- Contractors should be aware that DoD-specific requirements may be added to contracts, even when awarded by nondefense agencies.
- Failure to comply with certification or notification requirements can delay or jeopardize acquisitions.
(a) A DoD acquisition official may request a nondefense agency to conduct an acquisition on behalf of DoD in excess of the simplified acquisition threshold only if the head of the nondefense agency conducting the acquisition on DoD's behalf has certified that the agency will comply with applicable procurement requirements for that fiscal year except when waived in accordance with paragraph (e) of this section.
(b) A nondefense agency is compliant with applicable procurement requirements if the procurement policies, procedures, and internal controls of the nondefense agency applicable to the procurement of supplies and services on behalf of DoD, and the manner in which they are administered, are adequate to ensure the compliance of the nondefense department or agency with-
(1) The Federal Acquisition Regulation and other laws and regulations that apply to procurements of supplies and services by Federal agencies; and
(2) Laws and regulations that apply to procurements of supplies and services made by DoD through other Federal agencies, including DoD financial management regulations, the Defense Federal Acquisition Regulation Supplement (DFARS), DoD class deviations, and the DFARS Procedures, Guidance, and Information (PGI). (The DFARS, DoD class deviations, and PGI are accessible at: http://www.acq.osd.mil/dpap/dars" target="_blank">http://www.acq.osd.mil/dpap/dars).
(c) Within 30 days of the beginning of each fiscal year, submit nondefense agency certifications of compliance to Principal Director, Defense Pricing and Contracting at:
Department of Defense
Office of the Under Secretary of Defense (Acquisition and Sustainment)
Defense Pricing and Contracting
Contract Policy
Room 3B938
3060 Defense Pentagon,
Washington D.C. 20301-3060.
(d) The DoD acquisition official, as defined at 17.701, shall provide to the servicing nondefense agency contracting officer any DoD-unique terms, conditions, other related statutes, regulations, directives, and other applicable requirements for incorporation into the order or contract. In the event there are no DoD-unique requirements beyond the FAR, the DoD acquisition official shall so inform the servicing nondefense agency contracting officer in writing. Nondefense agency contracting officers are responsible for ensuring support provided in response to DoD’s request complies with paragraph (b) of this section.
(e) Waiver. The limitation in paragraph (a) of this section shall not apply to the acquisition of supplies and services on behalf of DoD by a nondefense agency during any fiscal year for which the Under Secretary of Defense for Acquisition and Sustainment has determined in writing that it is necessary in the interest of DoD to acquire supplies and services through the nondefense agency during the fiscal year. The written determination shall identify the acquisition categories to which the waiver applies.
(f) Nondefense agency certifications, waivers, and additional information are available at https://www.acq.osd.mil/asda/dpc/cp/policy/interagency-acquisition.html" target="_blank">https://www.acq.osd.mil/asda/dpc/cp/policy/interagency-acquisition.html.