Policy
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.