Integrating the Department of Defense Supply Chain: Techincial Report

By Eric Peltz; Marc Robbins | Go to book overview

APPENDIX A
Legal and Regulatory Environment for FDT Alternatives1

Introduction

This appendix explores the level of discretion DoD contracting officers have in various situations concerning the choice of transportation methods for FDT. In particular, it focuses on whether and under what circumstances DoD contracting officers may solicit and award contracts on an FOB origin basis, as opposed to the routine FOB destination contracts that are now the norm for classes II, IIIP, IV, and IX. As a threshold matter, the ability to solicit and award FOB origin contracts is necessary if DoD-managed FDT were to be pursued.

Three main sections of this appendix trace the three legal-regulatory sources of contracting governance. The first is a brief review of statutory authorities contained in the United States Code. The second is a more detailed discussion of the contract management requirements contained in the FAR. This discussion delves into both the contract requirements and the inspection and acceptance requirements that accompany the government’s QA role. The third section discusses how the FAR applies to DoD activities and supplements the regulatory scheme outlined in the FAR with the Defense Federal Acquisition Regulation Supplement (DFARS), DTR, and also the DLA Troop Support Guiding Principles for Acquisition (DGPA).

Where appropriate, the appendix highlights areas of vagueness and possible legal confusion that might cast doubt on whether a contracting official is able to choose alternative contract terms for first destination transport. For the purposes of this discussion, the scope of the appendix is limited to the contracting requirements associated with first destination shipments that are both originating from and destined for locations within CONUS.


Statutory Sources Governing Federal Contract Administration

The federal government’s procurement actions are, in the broadest sense, governed by the acquisition statutes. Although the annual authorization and spending legislation tackles the yearly budgetary issues for the federal government, they also are the common mechanism for establishing more permanent federal procurement policies. However, although they are the source of the government’s contracting authority, they do not contain the details of the contracting procedures affecting procurement. Those are a product of regulation (discussed in the next sections).

1 We thank our supporting author Geoffrey McGovern for the text in this appendix.

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