217.700 - Scope of subpart
This subpart—
(a) Implements section 854 of the National Defense Authorization Act for Fiscal Year 2005 (Pub. L. 108-375), section 801 of the National Defense Authorization Act for Fiscal Year 2008 (Pub. L. 110-181), and section 806 of the National Defense Authorization Act for Fiscal Year 2010 (Pub. L. 111-84); and
(b) Prescribes policy for the acquisition of supplies and services through the use of contracts or orders issued by non-DoD agencies.

217.7000 - Scope of subpart
This subpart prescribes policy and procedures for exchange of nonexcess personal property concurrent with an acquisition. 40 U.S.C. 503 permits exchange of personal property and application of the exchange allowance to the acquisition of similar property. This subpart does not authorize the sale of nonexcess personal property.

217.7001 - Definitions
As used in this subpart—
(a) “Exchange (trade-in) property” means property which—
(1) Is not excess but is eligible for replacement (because of obsolescence, unserviceability, or other reason); and
(2) Is applied as whole or partial payment toward the acquisition of similar items (i.e., items designed and constructed for the same purpose).
(b) “Property” means items that fall within one of the generic categories listed in DoD Manual 4140.01, Volume 9, DoD Supply Chain Materiel Management Procedures: Materiel Programs.

217.7102 - General
(a) Activities shall enter into master agreements for repair and alteration of vessels with all prospective contractors located within the United States or its outlying areas, which—
(1) Request ship repair work; and
(2) Possess the organization and facilities to perform the work satisfactorily. (Issuance of a master agreement does not indicate approval of the contractor's facility for any particular acquisition and is not an affirmative determination of responsibility under FAR Subpart 9.1 for any particular acquisition.)
(b) Activities may use master agreements in work with prospective contractors located outside the United States and its outlying areas.
(c) Activities may issue job orders under master agreements to effect repairs, alterations, and/or additions to vessels belonging to foreign governments.
(1) Contractors shall treat vessels of a foreign government as if they were vessels of the U.S. Government whenever requested to do so by the contracting officer.
(2) Identify the vessel and the foreign government in the solicitation and job order.

217.7103-2 - Period of agreement
(a) Master agreements remain in effect until cancelled by either the contractor or the contracting officer.
(b) Master agreements can be cancelled by either the contractor or the contracting officer by giving 30 days written notice to the other.
(c) Cancellation of a master agreement does not affect the rights and liabilities under any job order existing at the time of cancellation. The contractor must continue to perform all work covered by any job order issued before the effective date of cancellation of the master agreement.

217.7103-4 - Emergency work
(a) The contracting officer, without soliciting offers, may issue a written job order to a contractor that has previously executed a master agreement when—
(i) Delay in the performance of necessary repair work would endanger a vessel, its cargo or stores; or
(ii) Military necessity requires immediate work on a vessel.
(b) Follow the procedures at PGI 217.7103-4 when processing this type of undefinitized contract action.

217.7103-5 - Repair costs not readily ascertainable
Follow the procedures at PGI 217.7103-5 if the nature of any repairs is such that their extent and probable cost cannot be ascertained readily.

217.7103-6 - Modification of master agreements
(a) Review each master agreement at least annually before the anniversary of its effective date and revise it as necessary to conform to the requirements of the FAR and DFARS. Statutory or other mandatory changes may require review and revision earlier than one year.
(b) A master agreement shall be changed only by modifying the master agreement itself. It shall not be changed through a job order.
(c) A modification to a master agreement shall not affect job orders issued before the effective date of the modification.

217.7104 - Contract clauses
(a) Use the following clauses in solicitations for, and in, master agreements for repair and alteration of vessels:
(1) 252.217-7003 , Changes.
(2) 252.217-7004 , Job Orders and Compensation.
(3) 252.217-7005 , Inspection and Manner of Doing Work.
(4) 252.217-7006 , Title.
(5) 252.217-7007 , Payments.
(6) 252.217-7008 , Bonds.
(7) 252.217-7009 , Default.
(8) 252.217-7010 , Performance.
(9) 252.217-7011 , Access to Vessel.
(10) 252.217-7012 , Liability and Insurance.
(11) 252.217-7013 , Guarantees.
(12) 252.217-7014 , Discharge of Liens.
(13) 252.217-7015 , Safety and Health.
(14) 252.217-7016 , Plant Protection, as applicable.
(b)(1) Incorporate in solicitations for, and in, job orders, the clauses in the master agreement, and any other clauses on subjects not covered by the master agreement, but applicable to the job order to be awarded.
(2) Use the clause at 252.217-7016 , Plant Protection, in job orders where performance is to occur at the contractor's facility.

217.7303 - Solicitation provision
(a) Use the provision at 252.217-7026, Identification of Sources of Supply, or one substantially the same, in all solicitations for supplies when the acquisition is being conducted under other than full and open competition, except when -
(1) Using FAR 6.302-5;
(2) The contracting officer already has the information required by the provision (e.g., the information was obtained under other acquisitions);
(3) The contract is for subsistence, clothing or textiles, fuels, or supplies purchased and used outside the United States;
(4) The contracting officer determines that it would not be practicable to require offerors/contractors to provide the information, e.g., nonrepetitive local purchases; or
(5) The contracting officer determines that the exception at 217.7302(b) applies to all items under the solicitation.
(b) If appropriate, use the provision at 252.217-7026, Identification of Sources of Supply, or one substantially the same, in service contracts requiring the delivery of supplies.

217.7400 - Scope
This subpart prescribes policies and procedures implementing 10 U.S.C. 2326.

217.7404 - Limitations
See PGI 217.7404 for additional guidance on obtaining approval to authorize use of an undefinitized contact action, documentation requirements, and other limitations on their use.
(a) Foreign military sales contracts.
(1) A contracting officer may not enter into a UCA for a foreign military sale unless—
(i) The UCA provides for agreement upon contractual terms, specifications, and price by the end of the 180-day period beginning on the date on which the contractor submits a qualifying proposal; and
(ii) The contracting officer obtains approval from the head of the contracting activity to enter into a UCA in accordance with 217.7404-1 .
(2) The head of the contracting activity may waive the requirements of paragraph (a)(1) of this section, if a waiver is necessary in order to support any of the following operations:
(i) A contingency operation.
(ii) A humanitarian or peacekeeping operation.
(b) Unilateral definitization by a contracting officer. Any UCA with a value greater than $50 million may not be unilaterally definitized until—
(1) The earlier of—
(i) The end of the 180-day period, beginning on the date on which the contractor submits a qualifying proposal to definitize the contractual terms, specifications, and price; or
(ii) The date on which the amount of funds expended under the contractual action is equal to more than 50 percent of the negotiated overall not-to-exceed price for the contractual action;
(2) The head of the contracting activity, without power of redelegation, approves the definitization in writing;
(3) The contracting officer provides a copy of the written approval to the contractor; and
(4) A period of 30 calendar days has elapsed after the written approval is provided to the contractor.

217.7404-2 - Price ceiling
UCAs shall include a not-to-exceed price.

217.7404-4 - Limitations on obligations
(a) The Government shall not obligate more than 50 percent of the not-to-exceed price before definitization. However, if a contractor submits a qualifying proposal before 50 percent of the not-to-exceed price has been obligated by the Government, then the limitation on obligations before definitization may be increased to no more than 75 percent (see 232.102-70 for coverage on provisional delivery payments).
(b) In determining the appropriate amount to obligate, the contracting officer shall assess the contractor’s proposal for the undefinitized period and shall obligate funds only in an amount consistent with the contractor’s requirements for the undefinitized period.

217.7404-5 - Exceptions
(a) The limitations in 217.7404-2, 217.7404-3, and 217.7404-4 do not apply to UCAs for the purchase of initial spares.
(b) The head of an agency may waive the limitations in 217.7404(a), 217.7404-2, 217.7404-3, and 217.7404-4 for UCAs if the head of the agency determines that the waiver is necessary to support -
(1) A contingency operation; or
(2) A humanitarian or peacekeeping operation.

217.7500 - Scope of subpart
This subpart provides guidance on additional requirements related to acquisition of replenishment parts.

217.7501 - Definition
“Replenishment parts,” as used in this subpart, means repairable or consumable parts acquired after the initial provisioning process.

217.7504 - Acquisition of parts when data is not available
Follow the procedures at PGI 217.7504 when acquiring parts for which the Government does not have the necessary data.

217.7506 - Spare parts breakout program
See PGI 217.7506 and DoD Manual 4140.01, Volume 9, DoD Supply Chain Materiel Management Procedures: Materiel Programs, for spare parts breakout requirements.

217.7601 - Provisioning
(a) Follow the procedures at PGI 217.7601 for contracts with provisioning requirements.
(b) For technical requirements of provisioning, see DoD Manual 4140.01, Volume 2, DoD Supply Chain Materiel Management Procedures: Demand and Supply Planning.

217.770 - Procedures
Departments and agencies shall establish and maintain procedures for reviewing and approving orders placed for supplies and services under non-DoD contracts, whether through direct acquisition or assisted acquisition, when the amount of the order exceeds the simplified acquisition threshold. These procedures shall include—
(a) Evaluating whether using a non-DoD contract for the acquisition is in the best interest of DoD. Factors to be considered include—
(1) Satisfying customer requirements;
(2) Schedule;
(3) Cost effectiveness (taking into account discounts and fees). In order to ensure awareness of the total cost of fees associated with use of a non-DoD contract, follow the procedures at PGI 217.770 (a)(3); and
(4) Contract administration (including oversight);
(b) Determining that the tasks to be accomplished or supplies to be provided are within the scope of the contract to be used;
(c) Reviewing funding to ensure that it is used in accordance with appropriation limitations; and
(d) Collecting and reporting data on the use of assisted acquisition for analysis. Follow the reporting requirements in subpart 204.6.

217.7701 - Procedures
Follow the procedures at PGI 217.7701 when acquiring over and above work.

217.7702 - Contract clause
Use the clause at 252.217-7028 , Over and Above Work, in solicitations and contracts containing requirements for over and above work, except as provided for in Subpart 217.71.

217.7801 - Prohibition
In accordance with section 814 of the National Defense Authorization Act for Fiscal Year 2017 (Pub. L. 114-328) as amended by section 882 of the National Defense Authorization Act for Fiscal Year 2018 (Pub. L. 115-91) (see 10 U.S.C. 2302 note), contracting officers shall not use reverse auctions when procuring items designated by the requiring activity as personal protective equipment or an aviation critical safety item, when the requiring activity advises the contracting officer that the level of quality or failure of the equipment or item could result in combat casualties. See 252.209-7010 for the definition and identification of critical safety items.
NO DFARS TEXT