Acquisition of Services
Acquisition of Services
The acquisition of services from private sector entities by or for the DoD with a total estimated acquisition value at or above the simplified acquisition threshold (SAT) as required by the DoDI 5000.74. This includes the acquisition of all advisory and assistance services (A&AS) in support of research and development R&D or construction activities that are categorized within the knowledge based services portfolio group.
The acquisition of services is based on the Seven Steps to the Service Acquisition Process as laid out in DoDI 5000.74, the Defense Acquisition Guidebook (DAG) Chapter 10 – Acquisition of Services, and the Defense Acquisition University (DAU) Service Acquisition Mall (SAM). The seven steps are further broken down into three phases: Plan, Develop, and Execute. The DAG provides additional details and resources for each step within the three phases.
a. 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.
b. Contracted services, along with military and civilian manpower, are an element of the DoD’s Total Force. 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.
c. The DoD Functional Domain Experts (FDEs) for services acquisition management of each service category will be appointed by the USD(AT&L) in order to provide effective strategic oversight of contract service acquisitions. 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.
d. The DoD uses competitive procedures and incentive- and performance-based contracting to the maximum extent practical for the procurement of contracted services.
e. Each requirement for contracted services is reviewed and validated by the requiring activity authority in accordance with DoD Components procedures.
f. 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.
g. Services acquisitions will be managed to provide the greatest opportunity for the DoD to leverage small business capabilities and maximize competition.
h. Contractors should not be used to perform inherently governmental functions as outlined at FAR subpart 7.5; subpart 207.5 of the Defense Federal Acquisition Regulation Supplement; section 2463 of Title 10; Office of Federal Procurement Policy Letter 11-01; and DoDI 1100.22. 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 FAR subparts 7.503(d) and (e).
i. Contractors should not be used to perform work currently performed by DoD civilians or work designated for performance by DoD civilians as outlined in 10 USC Section 2461.
j. The acquisition strategy for contracted services should provide incentives to industry to improve productivity and performance consistent with DoD objectives.
k. 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 2330 (a)(1)(B)(ii).
l. All acquisitions of IT services, regardless of acquisition of services category, are subject to subtitle III, of Title 40, U.S.C. (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.
m. Existing federal government contracts available for use within the DoD, including interagency and federal strategic sourcing initiatives, should be used to the maximum extent practical before awarding new contracts.
n. 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.
o. DoD managers will use “should cost” analysis and establish cost reduction targets.
- DODI 5000.74 Acquisition of Services
- OSD Defense Procurement and Acquisition Policy’s Services Acquisition.
- Defense Acquisition Guidebook (DAG) Chapter 10 – Acquisition of Services
- DoD Handbook of Contract Function Checklists for Services Acquisition (May 2018)
- DoD Market Research Guide for Improving the Tradecraft in Services Acquisition (March 2017)
- DoD Handbook for the Training & Development of the Services Acquisition Workforce (14 July 2017)
- DoD Handbook for Services Acquisition, Independent Government Costs Estimate (IGCE) (December 2017)