PART I -- CONSIDERATIONS FOR DETERMINING ECONOMY ACT APPLICABILITY
ECONOMY ACT APPLICABILITY
Servicing Agency: Vehicle: Authority: Type of Support: Approval:
AF D&F FAR 17.5 one-time HCO or HCA
(I-CASE)
AF SA* FAR 17.5 recurring HCO or HCA
(I-CASE) DoDI 4000.19
(NOTE: Paragraph 4.3 of DoDI 4000.19 applies. I-CASE examples above are not applicable when DISA orders directly from the I-CASE contract. DISA has limited direct ordering authority for I-CASE.)
Servicing Agency: Vehicle: Authority: Type of Support: Approval:
CNTC D&F FAR 17.5 one-time HCO or HCA
CNTC SA* FAR 17.5 & recurring HCO or HCA
DoDI 4000.19
(NOTE: Paragraph 4.3 of DoDI 4000.19 applies. Under the example for "recurring" support: DISA reimburses CNTC for providing ongoing operation and maintenance of the DMS Transition Hub located at the Naval Computer and Telecommunications Area Master Station, Wahiawa, HI. Although government employees provide these services, HCO or HCA concurrence is required on the DISA Form 9 since funds are leaving the Agency.)
Servicing Agency: Vehicle: Authority: Type of Support: Approval:
USDA/GS D&F FAR 17.5 one-time HCO or HCA
USDA/GS SA* FAR 17.5 & recurring HCO or HCA
DoDI4000.19
Servicing Agency: Vehicle: Authority: Type of Support: Approval:
Army SA* FAR 17.5 recurring HCO or HCA
MITRE DoDI4000.19
(FFRDC)
(NOTE: Paragraph 4.3 of DoDI 4000.19 applies. In this example, the Army requires the use of their documentation to meet the SA requirement so a D&F (FAR Part 1) is used to meet the FAR D&F requirement. Approval authorities are located in DARS Subpart 17.5 and
DISAI 640-50-6, Para 12.)
*The SA constitutes the D&F. DoDI 4000.19; paragraph 4.5 does not require SAs for single item or one-time service support. In the event an SA is not required for a recurring effort and the Economy Act applies, prepare a D&F.
The following applies to all examples given above: DISA is the requesting agency and as such, the requirements office shall send copies of D&Fs and or SAs to the servicing agency
(DARS Subpart 17.504-90). In the case of an FFRDC, send the copies to the sponsor
(FAR Part 35).
ACRONYMS:
ACA Agency Competition Advocate
AF Air Force
CNCTC Commander, Naval Computer & Telecommunications Command
D Director, DISA
DD Deputy Director
D&F Determination & Finding
DoD Department of Defense
DSC Defense Supply Center
DTIC Defense Technical Information Center
DV Vice Director, DISA
FAR Federal Acquisition Regulation
FFRDC Federally Funded Research & Development Contract
I-CASE Integrated Computer-Aided Software Engineering
MITRE MITRE Corporation (FFRDC contractor)
SA Support Agreement (DD Form 1144 or similar form)
SPE Senior Procurement Executive
USDA/GS US Department of Agriculture/Graduate School
● Federal Reserve System
● Central Intelligence Agency *
● Joint Committee on Printing *
● US Information Agency *
● Independent Establishments (Per 5 U.S.C. § 104(1))
● US Postal Service *
● Postal Rate Commission
● Government corporations other than wholly owned Government corporations under 31 U.S.C. § 9101(3) (e.g., mixed-ownership Government corporations under 31 U.S.C. § 9101(2))
o Amtrak
o Central Bank for Cooperatives
o Federal Deposit Insurance Corporation
o Federal Home Loan Banks
o Federal Intermediate Credit Banks
o Federal Land Banks
o National Credit Union Administration Central Liquidity Facility
o Regional Banks for Cooperatives
o Rural Telephone Bank (after ownership conversion)
o US Railway Association
o *Resolution Trust Corporation
o Resolution Funding Corporation
*Exempt from Economy Act--covered by separate statutory authority (40 U.S.C. § 474, Federal Property & Administrative Service Act of 1949).
EXAMPLES OF ECONOMY ACT EXEMPTIONS
Use of other Government supply sources (Reiterates FAR Subpart 8.002)
● Supplies/Services
● Public utility services (FAR Part 41)
● Printing and related supplies (FAR Subpart 8.8)
● Leased motor vehicles (FAR Subpart 8.11)
● Strategic and critical materials (e.g., metals and ores) from inventories exceeding Defense National Stockpile requirements
● Helium (FAR Subpart 8.5)
Priorities for use of Government supply sources (Reiterates FAR Subpart 8.001)
● Supplies/services listed in descending order of priority—
● Supplies
o Agency inventories
o Excess from other agencies
o Federal Prison Industries, Inc.
o Products available from the Committee for Purchase From People Who Are Blind or Severely Disabled
o Wholesale supply sources, such as stock programs of the GSA, Defense Logistics Agency, Department of Veterans Affairs and military inventory control points
o Mandatory Federal Supply Schedules (FSS) Optional use FSS
o Commercial sources (including educational and nonprofit institutions)
● Services
o Services available from the Committee for Purchase From People Who Are Blind or Severely Disabled
o Mandatory FSS
o Optional use FSS
o Federal Prison Industries, Inc. or commercial sources (including educational and nonprofit institutions)
Government-Wide Acquisition Contracts (GWACs)--GWAC examples follow (not all-inclusive):
● Department of Transportation - I-TOP
● Department of Commerce – COMMITS
● GSA - Contracts funded through the IT fund--two examples follow:
o SEAT Management
o FAST
Although the Economy Act does not apply, if the plan is to obtain any of these supplies or services by having another agency contract for them consider the following as part of the market research: Ensure the action a reasonable alternative to using a DISA contracting office, and is in the best interest of the Government. NOTE: FAR Subpart 17.5 does not apply when a DISA contracting office places orders directly on another agency's contract.
Multi-Agency Contracts (MACs) and or Government-wide Acquisition Contracts (GWACs)
Multi-agency contracts (MACs).
● ECONOMY ACT APPLIES along with applicable Executive branch policies and procedures, including, for IT services.
● MACs are established in accordance with section 5124(a)(2) of the Clinger-Cohen Act for IT (not limited to IT).
Government-Wide Acquisition Contracts (GWACs)
● ECONONY ACT DOES NOT APPLY. GWACs are subject to Executive branch policies and procedures.
● GWACs are established in accordance with section 5112(e) of the Clinger-Cohen Act, 40 U.S.C. § 1412(e) for IT after an agency is designated an executive agent for such by OMB (or otherwise covered by such designation).
● If entered into before 7 August 1996, the GWAC was established under a delegation of procurement authority issued by GSA under the authority of the Brooks Act, 40 U.S.C. § 759.
Franchise Fund Pilot Programs (FFPP)
● ECONOMY ACT DOES NOT APPLY. FFPP are subject to a separate statutory authority.
● FFPP was Government Management Reform Act of 1994 (Public Law 103-356 108 STAT.3413, Sec. 403.
● Executive Agencies that sponsors FFPP, they are: Commerce, Environmental Protection Agency, Health and Human Services, Interior, Treasury and Veteran Affairs.
PART II – FOUR SAMPLE ECONOMY ACT D&FS WITH VARIOUS SIGNATURE FORMATS
Sample Number: |
Dollar Threshold: |
Regulatory Authority: |
Under Cognizance of DoD: |
Sample #1 |
$3,000 to $100K |
FAR/DFARS |
Within DoD |
Sample #2 |
Over $100K |
FAR/DFARS |
Within DoD |
Sample #3 |
Over $3,000 |
FAR only |
Outside DoD |
Sample #4 |
Over $100K |
Non-FAR |
Outside DoD |
The SA may also satisfy the requirements of an Economy Act D&F and requires concurrence by the HCO, and HCA when appropriate. Use a DISA Form 9, “Summary Sheet” for coordinating and staffing an Economy Act D&F (See DARS Subsection 17.500(b)(S-93).
SAMPLE 1
DETERMINATION AND FINDINGS
ECONOMY ACT ORDER
(From $3,000 to $100K within DoD (FAR/DFARS))
Title of Effort Provide title of the statement of work or requirement.
Requesting Agency: Name and Organization Code of the requiring office.
Servicing Agency: Name of the contracting activity and that it is a DoD activity and complies with the FAR and DFARS.
Type of Effort: Describe the type of supplies/services to be acquired.
Location of Effort: Provide the performance locations.
Total Cost: Insert the dollar amount and type of funds.
Period of Performance: Insert performance period as days or months after contract award unless start and completion dates are known.
Performing the Work Provide the percentage of work that will be performed by the prime contractor and its subcontractors. If Government employees will perform some of the effort, also include their percentage of effort.
Recurring Requirement: This is not a recurring requirement. (If the requirement is recurring prepare a SA.)
Title of Program Plan: Include Title of Program Plan and its associated cost/line item number.
Rationale Explain the rationale and benefits of obtaining the supplies and/or services from the servicing agency instead of having DISA obtain them. The rationale should be concise, clear and convincing, and must include a summary of the market research conducted to include the proposed business deal (i.e., T&M, cost, FFP, sole source, 8a, set aside, etc.).
Accountability: Explain the process to be used by the requiring office to record deliverables/acceptance in accordance with the SOW or requirement. Explain how the record is visible for oversight.
Contract Number: Include the contract number and contractor’s name.
Requirements POC: Provide the name, code, position title, and telephone number.
DETERMINATION
In accordance with 31 U.S.C. 1535 and FAR Subpart 17.503, it is my determination to place the following order for supplies and or services pursuant to the Economy Act.
FINDING
(1) Based on the information provided, the use of an interagency acquisition is in the best interest of the Government and supplies or services cannot be obtained as conveniently or economically by contracting directly with a private source.
[Include one of the three circumstances as paragraph “(2)” if the Economy Act order requires contract action by the servicing agency: (1) The acquisition will appropriately be made under an existing contract of the servicing agency, entered into before placement of the order, to meet the requirements of the servicing agency for the same or similar supplies or services; (2) The servicing agency has capabilities or expertise to enter into a contract for such supplies or services which is not available within the requesting agency; or (3) The servicing agency is specifically authorized by law or regulation to purchase such supplies or services on behalf of other agencies.
Include the following as paragraph “(3)” if ordering against an existing contract” “The acquisition will appropriately be made under an existing contract of the (contractor’s name), entered into before placement of the order, to meet the requirements of the servicing agency for the same or similar supplies and/or services. Per FAR Subpart 17.504(d) (3) the requirements office by its concurrence have verified that the “contracts utilized to meet its requirements contain provisions protecting the Government from inappropriate charges and that adequate administration will be provided “by the servicing activity”.]
Deputy Principal Director: Deputy Principal Director’s signature is certification that the requirement is valid and the proposed acquisition strategy or approach is in the Government’s best interest.
Signature: ___________________________ ___________________
NAME DATE
TITLE
APPROVAL: (DARS Subpart 17.503(a))
Signature: ____________________________________ ___________________
HEAD OF THE CONTRACTING OFFICE DATE
SAMPLE 2
DETERMINATION AND FINDINGS
ECONOMY ACT ORDER
(Over $100K within DoD (FAR/DFARS))
Title of Effort: Provide title of the statement of work or requirement.
Requesting Agency: Name and Organization Code of the requiring office.
Servicing Agency: Name of the contracting activity and that it is a DoD activity and complies with the FAR and DFARS.
Type of Effort: Describe the type of supplies or services to be acquired.
Location of Effort: Provide the performance locations.
Total Cost: Insert the dollar amount and type of funds.
Period of Performance: Insert performance period as days or months after contract award
unless start and completion dates are known.
Performing the Work: Provide the percentage of work that will be performed by the prime
contractor and its subcontractors. If Government employees will
perform some of the effort, also include their percentage of effort.
Recurring Requirement This is not a recurring requirement. (If the requirement is recurring prepare a SA.)
Title of Program Plan: Include Title of Program Plan and its associated cost/line item number.
Rationale: Explain the rationale and benefits of obtaining the supplies and/or services from the servicing agency instead of having DISA obtain them. The rationale should be concise, clear and convincing, and must include a summary of the market research conducted to include the proposed business deal (i.e., T&M, cost, FFP, sole source, 8a, set aside, etc.).
Accountability: Explain the process to be used by the requiring office to record deliverables/acceptance in accordance with the SOW or requirement. Explain how the record is visible for oversight.
Contract Number: Include the contract number and contractor’s name.
Requirements POC: Provide the name, code, position title, and telephone number.
DETERMINATION
In accordance with 31 U.S.C. 1535 and FAR Subpart 17.503, it is my determination to place the following order for supplies and or services pursuant to the Economy Act.
FINDING
(1) Based on the information provided, the use of an interagency acquisition is in the best interest of the Government and supplies or services cannot be obtained as conveniently or economically by contracting directly with a private source.
[Include one of the three circumstances as paragraph “(2)” if the Economy Act order requires contract action by the servicing agency: (1) The acquisition will appropriately be made under an existing contract of the servicing agency, entered into before placement of the order, to meet the requirements of the servicing agency for the same or similar supplies or services; (2) The servicing agency has capabilities or expertise to enter into a contract for such supplies or services which is not available within the requesting agency; or (3) The servicing agency is specifically authorized by law or regulation to purchase such supplies or services on behalf of other agencies.
Include the following as paragraph “(3)” if ordering against an existing contract” “The acquisition will appropriately be made under an existing contract of the (contractor’s name), entered into before placement of the order, to meet the requirements of the servicing agency for the same or similar supplies and/or services. Per FAR Subpart 17.504(d) (3) the requirements office by its concurrence have verified that the “contracts utilized to meet its requirements contain provisions protecting the Government from inappropriate charges and that adequate administration will be provided “by the servicing activity”.]
Deputy Principal Director: Deputy Principal Director’s signature is certification that the requirement is valid and the proposed acquisition strategy or approach is in the Government’s best interest.
Signature: ___________________________ ___________________
NAME DATE
TITLE
APPROVAL: (DARS Subpart 17.503(a))
Signature: ________________________________________ ___________________
HEAD OF THE CONTRACTING ACTIVITY DATE
SAMPLE 3
DETERMINATION AND FINDINGS
ECONOMY ACT ORDER
(Over $3,000 outside of DoD (FAR Only))
Title of Effort: Provide title of the statement of work or requirement.
Requesting Agency: Name and Organization Code of the requiring office.
Servicing Agency: Name of the contracting activity and that it is a Federal activity and complies with the FAR..
Type of Effort: Describe the type of supplies/services to be acquired.
Location of Effort: Provide the performance locations.
Total Cost: Insert the dollar amount and type of funds.
Period of Performance: Insert performance period as days or months after contract award unless start and completion dates are known.
Performing the Work: Provide the percentage of work that will be performed by the prime
contractor and its subcontractors. If Government employees will
perform some of the effort, also include their percentage of effort.
Recurring Requirement: This is not a recurring requirement. (If the requirement is recurring prepare a SA.)
Title of Program Plan: Include Title of Program Plan and its associated cost/line item
number.
Rationale: Explain the rationale and benefits of obtaining the supplies and/or services from the servicing agency instead of having DISA obtain them. The rationale should be concise, clear and convincing, and must include a summary of the market research conducted to include the proposed business deal (i.e., T&M, cost, FFP, sole source, 8a, set aside, etc.).
Accountability: Explain the process used by the requiring office to record deliverables/acceptance in accordance with the SOW or requirement. Explain how the record is visible for oversight.
Contract Number: Include the contract number and contractor’s name.
Requirements POC: Provide the name, code, position title, and telephone number.
DETERMINATION
In accordance with 31 U.S.C. 1535 and FAR Subpart 17.503, it is my determination to place the following order for supplies/services pursuant to the Economy Act.
FINDING
(1) Based on the information provided, the use of an interagency acquisition is in the best interest of the Government and supplies or services cannot be obtained as conveniently or economically by contracting directly with a private source.
[Include one of the three circumstances as paragraph “(2)” if the Economy Act order requires contract action by the servicing agency: (1) The acquisition will appropriately be made under an existing contract of the servicing agency, entered into before placement of the order, to meet the requirements of the servicing agency for the same or similar supplies or services; (2) The servicing agency has capabilities or expertise to enter into a contract for such supplies or services which is not available within the requesting agency; or (3) The servicing agency is specifically authorized by law or regulation to purchase such supplies or services on behalf of other agencies.
Include the following as paragraph “(3)” if ordering against an existing contract” “The acquisition will appropriately be made under an existing contract of the (contractor’s name), entered into before placement of the order, to meet the requirements of the servicing agency for the same or similar supplies and/or services. Per FAR Subpart 17.504(d) (3) the requirements office by its concurrence have verified that the “contracts utilized to meet its requirements contain provisions protecting the Government from inappropriate charges and that adequate administration will be provided “by the servicing activity”.]
Deputy Principal Director: Deputy Principal Director’s signature is certification that the requirement is valid and the proposed acquisition strategy or approach is in the Government’s best interest.
Signature: ___________________________ ________________________
NAME DATE
TITLE
APPROVAL: (DARS 17.503(a))
Signature: _____________________________________ ______________
HEAD OF CONTRACTING ACTIVITY DATE
SAMPLE 4
DETERMINATION AND FINDINGS
ECONOMY ACT ORDER
(Over $100K outside of Federal Government (Non-FAR ))
Title of Effort: Provide title of the statement of work or requirement.
Requesting Agency: Name and Organization Code of the requiring office.
Servicing Agency: Name of the contracting activity.
Type of Effort: Describe the type of supplies/services to be acquired.
Location of Effort: Provide the performance locations.
Total Cost: Insert the dollar amount and type of funds.
Period of Performance: Insert performance period as days or months after contract award
unless the start and completion dates are known.
Performing the Work Provide the percentage of work that will be performed by the prime contractor and its subcontractors. If Government employees will perform some of the effort, also include their percentage of effort.
Recurring Requirement: This is not a recurring requirement. (If the requirement is recurring prepare a SA.)
Title of Program Plan: Include Title of Program Plan and its cost or line item number.
Rationale: Explain the rationale and benefits of obtaining the supplies and/or services from the servicing agency instead of having DISA obtain them. The rationale should be concise, clear and convincing, and
must include a summary of the market research conducted to include the proposed business deal (i.e., T&M, cost, FFP, sole source, 8a, set aside, etc.).
Accountability: Explain the process to be used by the requiring office to record deliverables/acceptance in accordance with the SOW or requirement. Explain how the record is visible for oversight.
Contract Number: Include the contract number and contractor’s name.
Requirements POC: Provide the name, code, position title, and telephone number.
DETERMINATION
In accordance with 31 U.S.C. 1535 and FAR Subpart 17.503, it is my determination to place the following order for supplies/services pursuant to the Economy Act.
FINDING
(1) Based on the information provided, the use of an interagency acquisition is in the best interest of the Government and supplies or services cannot be obtained as conveniently or economically by contracting directly with a private source.
[Include one of the three circumstances as paragraph “(2)” if the Economy Act order requires contract action by the servicing agency: (1) The acquisition will appropriately be made under an existing contract of the servicing agency, entered into before placement of the order, to meet the requirements of the servicing agency for the same or similar supplies or services; (2) The servicing agency has capabilities or expertise to enter into a contract for such supplies or services which is not available within the requesting agency; or (3) The servicing agency is specifically authorized by law or regulation to purchase such supplies or services on behalf of other agencies.
Include the following as paragraph “(3)” if ordering against an existing contract” “The acquisition will appropriately be made under an existing contract of the (contractor’s name), entered into before placement of the order, to meet the requirements of the servicing agency for the same or similar supplies and/or services. Per FAR Subpart 17.504(d) (3) the requirements office by its concurrence have verified that the “contracts utilized to meet its requirements contain provisions protecting the Government from inappropriate charges and that adequate administration will be provided “by the servicing activity”.]
Deputy Principal Director: Deputy Principal Director’s signature is certification that the requirement is valid and the proposed acquisition strategy or approach is in the Government’s best interest.
Signature: ___________________________ ___________________
NAME DATE
TITLE
RECOMMENDING APPROVAL: (DARS 17.503(a))
Signature: _____________________________________ ___________________
HEAD OF THE CONTRACTING ACTIVITY DATE
APPROVAL: (DARS 17.503(a))
Signature: ____________________________________ ___________________
SENIOR PROCUREMENT EXECUTIVE DATE
PART III – FLOW CHART DIAGRAMS FOR THE ECONOMY ACT PROCESSES
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