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The scenario is that a mission (range op) requirement included the request to procure monitors, monitor stands, coolers and tables versus rent. The concern is that those items are being requested to be procured vs rented for future range use and not just the specific mission (with specific times/dates). Further, we know this specific office has attempted to add supply items to Task Orders to try and circumvent the normal procurement process for things not even remotely related to a mission in the past, adding all the more suspicion.

The question is whether it is appropriate and allowable to procure vs rent the aforementioned items to be used for the mission and then kept and used for the range's other missions via this vehicle or, because the items benefit the range as a whole and are really not mission specific/critical, they should be procured independently. What if any regulations governs this? Thank you in advance for any input.

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“What if any regulations govern this?” Acquisitions must be within the scope, terms and conditions of both the task order and applicable portions of the base IDIQ contract. 

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Beyond the specific scope of the base IDIQ and task order your question also reaches to issue of appropriations law and such things as availability of appropriations (use, bona fide needs rule, etc.).  While the acquisition folks can have reservation about use of funds the project people are the responsible purse string holders for using money within the side boards of the appropriation (funds) they have been provided for specific mission goals.  There may be more than a deep dive on the appropriations side than the view you are providing of simply rent versus own.  To help in researching your question a great reference is the GAO "Red Book" (Principles of Federal Appropriation Law) which can be found here - http://www.wifcon.com/bonafidecontents.htm  Using it as a reference for the project people may also help in your education of them with regard to the concern you express.

 

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How much money are you talking about in total?  
 

This is really a question for your comptroller, budget officer, or finance/accounting person.  Generally if you get a requisition that has certified funds, you can assume all the proper questions were asked and the certifying official approved use of the funds for the intended purpose.

 

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6 hours ago, formerfed said:

How much money are you talking about in total?  
 

This is really a question for your comptroller, budget officer, or finance/accounting person.  Generally if you get a requisition that has certified funds, you can assume all the proper questions were asked and the certifying official approved use of the funds for the intended purpose.

 

The funding can be appropriate for the intended purpose but if the purpose is outside the contract’s (including base and task order) scope and its terms and conditions, it’s Probably improper to add the work by change to this task order.  

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If the funding is appropriate for the purpose but the needs are not within scope, how difficult can it be to simply purchase these supply items separately? Might require purchasing from two or three suppliers rather from one source but don’t seem to be major amounts.

If any competent supply clerk or purchasing agent could easily buy this stuff, then a contracting office ought to be able to relatively easily do it, too without going through a prime contractor/integrator  (I.e. $435 hammers and $600 toilet seats). Is it that hard to buy supplies these days? If so, hire my wife. She can search for and buy an amazing amount of stuff in minutes. FEDEX, UPS and Amazon truck drivers all know our address by heart.

What about using a GPC? You shouldn’t have to buy what appears to be unrelated stuff from one source.

Maybe are not small $$ amounts of individual Items of tables,  monitors, coolers, etc...

Ah...it’s year end - of course! Dump that money fast. Drain the Swamp.

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Is it the nature of range operations that there arent staff, storage and issue resources available,  so stuff is generally rented for each training session?  Government owned stuff has accountability processes, procedures and issues. If Government property is lost or damaged there is, in DoD, a  Financial Liability Investigation of Property Loss (FLIPL) system. When I was in the Air Force, I was appointed to make a “Report of Survey” and accountability recommendation for a hundred or so missing KC-135 aircraft insulated hot/cold beverage containers that crews took to Guam,Viet Nam and Thailand, then switched out on each long flight.  Inevitably, some disappeared because many people handled them and it was War (excuse me - Conflict). My recommendation was no gross negligence - the system was weak. Plus, numerous crews flew individual planes over and back to our SAC base. 

 

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PRoy12, I'm not clear on what the contract covers, but you mentioned range ops.  I take that to mean range operations.  The range operations contracts I am familiar with cover a wide variety of tasks and would include purchasing the items you have mentioned.  Is your concern that the items are covered by the contract but should be acquired through a separate order or are you concerned that the acquisition of such items is not covered by the contract and cannot be acquired under that contract even if a separate order is issued?

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On 9/17/2020 at 7:37 PM, PRoy12 said:

The scenario is that a mission (range op) requirement included the request to procure monitors, monitor stands, coolers and tables versus rent. The concern is that those items are being requested to be procured vs rented for future range use and not just the specific mission (with specific times/dates). ... The question is whether it is appropriate and allowable to procure vs rent the aforementioned items to be used for the mission and then kept and used for the range's other missions via this vehicle ....

Did anybody perform a lease vs. buy analysis as required by FAR 7.401?

Also, 7.402(a)(1) states "Generally, the purchase method is appropriate if the equipment will be used beyond the point in time when cumulative leasing costs exceed the purchase costs." Therefore, it seems to me that the question to be answered is whether the requestor will use the equipment for a period that exceeds the point at which cumulative leased costs exceed the purchase price. If so, purchasing seems to be the appropriate course of action.

Not that the key word is used. Used is different from required.

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Here_2_help’s response seems to be the answer to OPs question.  The reason I mentioned seeking the Comptrollers input is the emphasis on mission.  I assumed this was a one time effort and had special funding. But the thread seemed to drift without any further input from the OP.  If range operations is ongoing, thenhere_2_helps response is exactly correct.  If someone has a continuing need, funds are available, and the items are more economically acquired by purchase (confirmed by an analysis),why lease?

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11 hours ago, formerfed said:

Here_2_help’s response seems to be the answer to OPs question.  The reason I mentioned seeking the Comptrollers input is the emphasis on mission.  I assumed this was a one time effort and had special funding. But the thread seemed to drift without any further input from the OP.  If range operations is ongoing, thenhere_2_helps response is exactly correct.  If someone has a continuing need, funds are available, and the items are more economically acquired by purchase (confirmed by an analysis),why lease?

The lease vs purchase analysis is a an acquisition planning exercise but doesn’t seem to  completely address the OP’s questions concerning whether it is appropriate and allowable to use an existing task order vehicle to purchase rather than rent some supply items. The lease vs. purchase analysis isn’t necessarily the KO’s responsibility to perform. Acquisition planning is a team responsibility. However, the Lease vs purchase consideration would be a valid consideration.

Beyond the valid question of lease vs. purchase, there are additional considerations, as identified above.  

Do the scope and purpose of the existing contract allow either lease or purchase? What is the magnitude of the purchase? Funding considerations?

The OP has been asked to clarify the scenario. Of course, the OP may have enough take away info here to determine the answer to their question without further input to the thread. 

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On 9/17/2020 at 10:37 PM, PRoy12 said:

The question is whether it is appropriate and allowable to procure vs rent the aforementioned items to be used for the mission and then kept and used for the range's other missions via this vehicle or, because the items benefit the range as a whole and are really not mission specific/critical, they should be procured independently. What if any regulations governs this? Thank you in advance for any input.

This is the only question asked.  Everything else about the contract and scope came up as thread drifts.

As far as lease versus, most contracts like range ops don’t get into detail like that.  The OP hasn’t asked about scope.  The person seems lost about whether items can be purchased for a short duration period for the immediate range need.  The advice here_2_help gives is the OP should come up and ask what a long term need is and do a lease versus purchase analysis.  Since rent money comes from a different pot that purchase, that’s why I suggested asking the Controller.  The program office just needs to tell both people how long the need is.

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PRoy asked if It is appropriate and allowable to Purchase vs rent the items using this task order or should they be “procured independently.” It appeared to me that they are currently using the task order to rent items.

Didnt ask if purchase vs rent is appropriate or allowed. 

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