SECNAV Instruction 7043.5C - Nonappropriated Fund Procurement Policy

DEPARTMENT OF THE NAVY
OFFICE OF THE SECRETARY
1000 NAVY PENTAGON
WASHINGTON DC 20350·1000

SECNAVINST 7043.5C
ASN (M&RA)
03 May 2021
SECNAV INSTRUCTION 7043.5C
From:

Secretary of the Navy

Subj:

NONAPPROPRIATED FUND PROCUREMENT POLICY

Ref:

(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)

DoD Instruction 4105.67 of 26 February 2014
SECNAVINST 11011.47D
SECNAVINST 5430.7R
10 U.S.C. §2492
10 U.S.C. §§2302-2339b
15 U.S.C. §631
41 U.S.C. §§8301-8303
19 U.S.C. §§2501-2581
SECNAV M-5214.1

1. Purpose. To establish Nonappropriated Fund (NAF)
procurement policy within the Department of the Navy (DON).
2.

Cancellation.

SECNAVINST 7043.5B.

3. Applicability. This instruction applies to all contracts
and leases entered into by, or on behalf of, DON Nonappropriated
Fund Instrumentalities (NAFI) created in accordance with and
governed by references (a) and (b) using NAF.
4.

Policy

a. The Assistant Secretary of the Navy for Manpower and
Reserve Affairs (ASN (M&RA)) shall develop and oversee policies
and programs designed to enhance the quality of life of DON
military personnel and family members, to include NAF programs
involving Morale, Welfare, and Recreation, Military Resale, and
NAF procurement and construction, per reference (c).
b. NAFI are instrumentalities of the United States and have
the inherent authority to enter into contracts, including
construction contracts. However, this excludes Appropriated
Fund (APF) contracts. NAF procurements shall be accomplished in
accordance with reference (a). Real property leases using NAF
shall be governed by references (a) and (b). Military dining

SECNAVINST 7043.5C
03 May 2021
facility contracts may be awarded and administered under the
provisions of reference (d).
c. Personnel accomplishing NAF procurements must comply
with applicable standards of conduct for the Department of
Defense and Executive Branch. NAF procurements must be
accomplished by trained procurement personnel in a fair,
equitable, and impartial manner and conducted in a manner to
ensure the best value for the NAFI.
d. APF and NAF procurement personnel shall perform NAFfunded contract actions in accordance with reference (a).
e. Pursuant to reference (a), the following do not apply to
NAF procurements:
(1) Federal Acquisition Regulation.
(2) Defense Federal Acquisition Regulation Supplements.
(3) Navy and Marine Corps Acquisition Regulation
Supplement.
(4) References (e) and (f).
(5) References (g) and (h) for purchase of resale items.
f. NAF activities may use the NAF government purchase card,
or other commercial payment card, for resale and non-resale
items and services procured with NAF when appropriate and cost
effective.
5.

Responsibilities
a.

ASN (M&RA):

(1) May prescribe such NAF procurement authority
limitations or dollar thresholds as deemed necessary and
prescribe the criteria for when centralized procurement offices
will be used to accomplish NAF procurements.
(2) Must review, and submit to the Secretary of the Navy
for approval, facility leases with an annual cost of $200,000 or
greater before contract award.

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SECNAVINST 7043.5C
03 May 2021
(3) May establish procurement advisory groups where NAF
procurement personnel and legal counsel supporting NAFIs can
meet to discuss means of improving procurement actions.
Advisory groups will consist solely of U.S. Government
personnel.
(4) Will coordinate all NAFI real property leases with
the Assistant Secretary of the Navy for Energy, Installations
and Environment to ensure compliance with reference (b).
b. NAF procurement managers shall establish procurement
authorities, policies, procedures, management oversight, and
internal control systems in accordance with the references and
this instruction.
6. Action. All DON NAFI and DON procurement offices executing
procurement actions using NAF shall comply with the provisions
of this instruction.
7.

Records Management

a. Records created as a result of this instruction,
regardless of format or media, must be maintained and
dispositioned according to the records disposition schedules
found on the Directives and Records Management Division (DRMD)
portal page:
https://portal.secnav.navy.mil/orgs/DUSNM/DONAA/DRM/SitePages/Ho
me.aspx.
b. For questions concerning the management of records
related to this instruction or the records disposition
schedules, please contact your local Records Manager or the DRMD
program office.
8. Information Management Control. The reporting requirement
contained in paragraph 5a(2) is exempt from information
collection control in accordance with reference (i), Part IV,
paragraph 7q.

THOMAS W. HARKER
Acting

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SECNAVINST 7043.5C
03 May 2021
Distribution:
Electronic only, via Department of the Navy Issuances Website:
https://www.secnav.navy.mil/doni/.

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