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Economy Act Question


AJB

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If an agency wants to provide funds to issue a task order off another agency's contract, where does it say that the agency issuing the funds has to abide by the rules and regulations governing the agency entering into the contract? For instance, let's say a non-DoD agency wants to issue a construction contract off a DoD ID/IQ contract. What is the authority that means that the non-DoD agency has to abide by the $750K statutory cap on using O&M for minor construction? I looked everywhere, including the Economy Act, and I can't find any statement directing agencies to abide by the rules of the issuing agency.

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I'm confused by your question. Is the funding agency (Agency A) also the ordering Agency? Or is Agency A providing funds to Agency B (the agency that issued the ID/IQ) and having Agency B be the ordering agency?

One would think (hope) that if there is a statutory cap that it is addressed in the ID/IQ terms and conditions - either through contract clauses or within the Special Contract/Order Requirements section - thus making who the funding agency is irrelevant.

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If an agency wants to provide funds to issue a task order off another agency's contract, where does it say that the agency issuing the funds has to abide by the rules and regulations governing the agency entering into the contract? For instance, let's say a non-DoD agency wants to issue a construction contract off a DoD ID/IQ contract. What is the authority that means that the non-DoD agency has to abide by the $750K statutory cap on using O&M for minor construction? I looked everywhere, including the Economy Act, and I can't find any statement directing agencies to abide by the rules of the issuing agency.

From my review of the FAR and DoD Financial Management Regs, it appears that DoD should be guided by any constraints on the requesting agency's funds. Take a look at FAR 17.502-1(a)(1)(iii):

17.502 -- Procedures.

17.502-1 ? General.

(a) Determination of best procurement approach?

(1) Assisted acquisitions. Prior to requesting that another agency conduct an acquisition on its behalf, the requesting agency shall make a determination that the use of an interagency acquisition represents the best procurement approach. As part of the best procurement approach determination, the requesting agency shall obtain the concurrence of the requesting agency's responsible contracting office in accordance with internal agency procedures. At a minimum, the determination shall include an analysis of procurement approaches, including an evaluation by the requesting agency that using the acquisition services of another agency?

(i) Satisfies the requesting agency's schedule, performance, and delivery requirements (taking into account factors such as the servicing agency's authority, experience, and expertise as well as customer satisfaction with the servicing agency's past performance);

(ii) Is cost effective (taking into account the reasonableness of the servicing agency's fees); and

(iii) Will result in the use of funds in accordance with appropriation limitations and compliance with the requesting agency's laws and policies.

Beyond the FAR, there is a DoD Financial Management Regulation: DOD 7000.14-R. VOLUME 11A, CHAPTER 3, paragraph 030402 says the following:

Certification of Availability for Purpose. Economy Act orders are subject to the same fiscal limitations that are contained within the appropriation from which they are funded. However, the performing entity may not be aware of all such appropriation limitations. Therefore, the requesting official should provide a certification, on or attached to the Economy Act order, that the funds cited on the Economy Act order are properly chargeable for the purposes cited in the order.

If you have proof that your appropriation does not come with the $750k constraint, provide it along with the certification.

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