Guide Department of Defense Trends in Overseas Contract Obligations

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Consistent with statutory and regulatory requirements for the acquisitions of services, authorizes DoD Component decision authorities to tailor the procedures in this instruction to best achieve cost, schedule, and performance objectives. This exemption will apply to the response and initial deployment phase, but will terminate as soon as practical based on conditions on the ground and a determination by the decision authority. This exemption will apply to the response and initial recovery phase, but will terminate as soon as practical during the sustainment phase managing reconstruction and recovery efforts based on conditions on the ground and a determination by the decision authority.

Acquisition of contracted services is a command responsibility: unit, organization, and installation commanders are responsible for the appropriate, efficient, and effective acquisition of contracted services by their organizations. Contracted services are procured by means that are in the best interests of the DoD. Service contracts are entered into and managed in accordance with applicable laws, regulations, directives, and requirements. Component Level Leads CLLs will be appointed by the Component heads to assist the FDE in actively overseeing the life-cycle process of contracted services acquisitions.

The DoD uses competitive procedures and incentive- and performance-based contracting to the maximum extent practical for the procurement of contracted services. Each requirement for contracted services is reviewed and validated by the requiring activity authority in accordance with DoD Components procedures. See Enclosure 5. The steps outlined in Figure 1 should be used to the maximum extent practical to ensure the use of proven, repeatable processes and procedures contributing to successful services acquisitions.

Defense Offsets

Services acquisitions will be managed to provide the greatest opportunity for the DoD to leverage small business capabilities and maximize competition. Contractors should not be used to perform inherently governmental functions as outlined at subpart 7. The reliance on contractors to perform functions that are critical or closely associated with inherently governmental functions will be limited and approved by exception only as outlined at subparts 7. Contractors should not be used to perform work currently performed by DoD civilians or work designated for performance by DoD civilians as outlined in Section of Reference h.

The acquisition strategy for contracted services should provide incentives to industry to improve productivity and performance consistent with DoD objectives. The government workforce acquiring and managing contracted services will be trained and experienced to acquire and manage acquisitions of contracted services in accordance with section a 1 B ii of Reference h.

Reference k. For all acquisitions of IT services, decision authorities and chief information officers CIOs will ensure that that acquisition strategy and related planning address the relevant aspects of Reference k before contract award. See Enclosure 7 for IT Services guidance. Existing federal government contracts available for use within the DoD, including inter- agency and federal strategic sourcing initiatives, should be used to the maximum extent practical before awarding new contracts. The acquisition strategy and acquisition plan for contracted services will provide appropriate mechanisms to identify and manage intellectual property issues to allow industry a fair and reasonable return on investment, but avoid vendor lock, and enable the competitive and cost-effective transition to follow-on service providers.

Where competition is determined not to be feasible or practical, acquisition strategies and plans will incorporate processes to generate improved performance or cost savings with the sole source vendor, such as incentives and performance metrics.

SUBJECT: Defense Acquisition of Services

Enclosure 3 outlines the oversight responsibilities when acquiring contracted services to support DoD requirements. Enclosure 4 outlines the key management roles and responsibilities when acquiring contracted services to support DoD requirements.

Defense Acquisitions: How and Where DOD Spends Its Contracting Dollars

Enclosure 5 establishes a process for developing, analyzing, reviewing, and validating requirements for the acquisition of contracted services, as required by section of Reference g. Enclosure 6 establishes data collection requirements and reporting requirements to support annual updates to the senior officials and FDEs and the annual reporting requirements under the Inventory of Contracts for Services ICS of Reference h. Enclosure 7 provides acquisition considerations for IT services. IT services include providing the operation, support, and maintenance of IT and may include providing commercial or military unique IT equipment with the services.

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Cleared for public release. E2: 1. Establishes policy and provides oversight for the acquisition of contracted services across the DoD. Serves as the senior official responsible for the management of the acquisition of contracted services for or on behalf of the Defense Agencies and other DoD Components outside the Military Departments, in accordance with section a 3 of Reference h. Serves as or designates the senior DoD decision authority for the acquisition of contracted services for Defense Agencies and other DoD components outside the Military Departments.

Serves as the senior DoD decision authority for any special interest acquisition as defined in Table 1. May delegate decision authority to DoD Component heads, or the heads of other appropriate oversight entities, with further delegation permitted, unless otherwise provided in the delegation, to the component acquisition executive as the senior official responsible for the acquisition of contracted services.

E2: 2. Is responsible for all contracting and procurement policy matters for the acquisition of services in the DoD, including e-Business. Coordinates as appropriate with the FDE regarding the specific portfolio or portfolio group for the acquisition, and with the OSD Office of Small Business Programs on all proposed acquisition of services acquisition strategies. E2: 3.


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In accordance with section of Reference h and DoDD In accordance with section a of Reference h , is responsible for the policies and procedures for determining the most appropriate and cost efficient mix of military, civilian, and contractor personnel to execute the DoD mission. In accordance with section a of Reference h , guides the collection of data regarding functions and missions performed by contractors, the calculation of contractor full-time equivalents for direct labor, and the conduct and completion of the annual reviews of contracted services. In accordance with section of Reference h , implements guidelines and procedures pertaining to the in-sourcing of work to government performance that is being performed under contract.

Consistent with References i and j , establishes and maintains the policies and procedures for workload alignment and manpower mix, to include criteria for identifying closely associated with inherently governmental and critical functions. The Director, CAPE, establishes policies and procedures for conducting cost estimates and analysis for the acquisition of contracted services.

E2: 5. Implement the policy and procedures in this instruction within their respective Component. Statutory requirements cannot be waived unless the statute expressly provides a procedure for the waiver of requirements. Complete review of ICS in accordance with the requirements of section a of Reference h. E3: 1. The DoD will manage services acquisitions in order to improve productivity and efficiency. Requirements will be addressed from an appropriate enterprise-level so that resulting contract awards are aligned with mission, performance, and cost objectives.

Portfolio management requires collection and sharing of data within and across organizations, employing cross-departmental teams, and identification and promulgation of best practices and lessons learned. Collaboration among requiring organizations and contracting activities enables the DoD to leverage its resources and buying power.

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Portfolio management requires experts who specialize in specific market sectors. Such expertise results in enhanced support to the warfighter by maximizing efficiency and increasing productivity by tailoring management to the unique aspects of the various categories of services. By fostering collaboration, portfolio management:. E3: 2. The DoD portfolio management structure is based on the taxonomy for the acquisition of services, as provided in subpart There are 9 portfolio groups assigned for the acquisition of services, as listed in Figure 2.

The portfolio groups are overseen through the FDE structure, as described in section 3b of this enclosure, except for the Research and Development and Construction Services portfolio groups. FDEs are not assigned for these two groups because section c of Reference h excludes these portfolio group services.

U.S. Department of Defense Contract Spending and the Industrial Base, 2000-2013

DoD Components will ensure that services are acquired efficiently and with increased productivity by:. E3: 3. The FDE provides strategic portfolio management overseeing the life- cycle process of services acquisition in his or her portfolio by:. CLLs are senior functional leaders within the DoD Component functional communities aligned within the FDE structure, whose role is to support the strategic management and leadership of portfolio groups across the DoD Component.

CLLs also should consider total force mix capabilities during the development process.

Staff and other organizations and stakeholders provide support to this program management chain of command, which is responsible for the execution of the services acquisition. The SAE of each Military Department under the authority, direction, and control of the Secretaries of each Military Department, will be the senior official responsible for the management of acquisition of contracted services for and on behalf of the Military Department, with further delegation to the senior procurement executives.

The CAE of each DoD Component under the authority, direction, and control of each Component head, will be the senior official responsible for the management of acquisition of contracted services for and on behalf of his or her respective Component. SSMs are the services acquisition experts and decision authorities under the authority, direction, and control of the Secretaries of each Military Department or their Component head, responsible for the planning, strategic sourcing, execution, and management of acquisitions of contracted services.

SSMs establish appropriate management structures and processes to ensure effective implementation and execution of the acquisition of services using this instruction. SSMs and their designated decision authorities across the service categories outlined at Table 1, should identify, forecast, and track pending requirements. E4: 3. Develop processes for the effective management, planning, and execution of services acquisitions within their Military Department or Component. Develop processes to implement Services Requirements Review Boards SRRBs ensuring requirements are reviewed, validated, and approved, verifying need and appropriate level of service.