Marine Corps Order 7010.20 - Marine Corps Community Services Nonappropriated Funds Procurement Policy

DEPARTMENT OF THE NAVY

HEADQUARTERS UNITED STATES MARINE CORPS
3000 MARINE CORPS PENTAGON
WASHINGTON DC 20350-3000

MCO 7010.20A
M&RA (MR)
26 Jul 2024
MARINE CORPS ORDER 7010.20A
From:
To:

Commandant of the Marine Corps
Distribution List

Subj:

NONAPPROPRIATED FUND (NAF) PROCUREMENT POLICY

Ref:

See enclosure (1)

Encl:

(1) References
(2) Nonappropriated Fund (NAF) Procurement Policy

1. Situation. To publish updated policy for Marine Corps Nonappropriated
Fund (NAF) purchasing and contracting operations. This Order is in
accordance with references (a) through (ae).
2.

Cancellation.

MCO 7010.20.

3. Mission. NAF procurement activities will obtain the best value products
and services on a timely basis, and in accordance with applicable laws,
regulations, and references (a) through (ae).
a. References (a) and (b) establish Department of Defense (DoD) and
Department of the Navy (DON) NAF procurement policy for Nonappropriated Fund
Instrumentalities (NAFIs).
b.

This Order promulgates Marine Corps NAF procurement policy.

c. Per
procurement
Office in a
accessible,
be used.
4.

reference (b), NAFIs not having contracting authority will seek
and purchase card support from an established NAF Procurement
fee for services arrangement. If a NAF Procurement Office is not
the services of an Appropriated Fund (APF) Procurement Office may

Execution
a.

Commander's Intent and Concept of Operations

(1) Commander's Intent. Marine Corps NAFIs will have a uniform
system for conducting NAF procurement.
(2) Concept of Operations. The goal of NAF procurement is to obtain
supplies and services in a fair, equitable, and impartial manner, and to the
best advantage of NAFIs, while complying with applicable laws and
regulations.

DISTRIBUTION STATEMENT A:
unlimited.

Approved for public release; distribution is

MCO 7010.20A
26 Jul 2024
b.

Subordinate Element Missions

(1) Deputy Commandant for Manpower and Reserve Affairs (DC M&RA) is
responsible for setting Marine Corps NAFI policy, overall program oversight,
and serving as the principal advocate for Marine Corps quality of life.
(2) Deputy Commandant for Manpower and Reserve Affairs, Director,
Business and Support Services Division, (DC M&RA (MR)) is responsible for
effective and efficient NAFI management and financial sustainability of all
Marine Corps NAFIs.
(3) Deputy Commandant for Manpower and Reserve Affairs, Branch Head,
Nonappropriated Fund Procurement, Business and Support Services Division (DC
M&RA (MRB)) is responsible for providing plans, policies, and procedures for
implementing Marine Corps NAF procurement policy.
(4) Regional Procurement Directors are responsible for providing
procurement support to installation NAFIs in accordance with this Order and
DC M&RA (MRB) published procedures.
(5) Regional and installation commanders are responsible for ensuring
local NAFIs comply with this Order and DC M&RA (MRB)- published NAF
Procurement Standard Operating Procedures (SOP).
(6) NAFI Activity Program Managers are responsible for identifying
requirements and verifying receipt and acceptance of procured items.
Contracting Officers are responsible for soliciting, evaluating, negotiating,
awarding, and administering contracts. NAFI Activity Program Managers and
Contracting Officers are jointly responsible to ensure that contracts
represent a business arrangement that meets program requirements and
applicable laws and regulations.
5.

Administration and Logistics

a. Records Management. Records created as a result of this Order shall
be managed according to National Archives and Records Administration (NARA)approved dispositions in reference (h), SECNAV M-5210.1 w/CH-1, to ensure
proper maintenance, use, accessibility, and preservation, regardless of
format or medium. Records disposition schedules are located on the
Department of the Navy/Assistant for Administration (DON/AA), Directives and
Records Management Division (DRMD) portal page at:
https://portal.secnav.navy.mil/orgs/DUSNM/DONAA/DRM/Records-and-InformationManagement/Approved%20Record%20Schedules/Forms/AllItems.aspx. Refer to
reference (z), MCO 5210.11F, for Marine Corps records management policy and
procedures.
b. Privacy Act. Any misuse or unauthorized disclosure of Personally
Identifiable Information (PII) may result in both civil and criminal
penalties. The Department of the Navy (DON) recognizes that the privacy of
an individual is a personal and fundamental right that shall be respected and
protected. The DON’s need to collect, use, maintain, or disseminate PII
about individuals for purposes of discharging its statutory responsibilities
shall be balanced against the individuals’ right to be protected against
unwarranted invasion of privacy. All collection, use, maintenance, or
dissemination of PII shall be in accordance with the Privacy Act of 1974, as
amended [reference (aa)] and implemented per reference (n).
c.

Forms.

There are no forms used in this Order.
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MCO 7010.20A
26 Jul 2024
d.

Records Dispositions.
(1) This Order is assigned record schedule 5000-8.

e. Updates. Updates made to this Order must be done in accordance with
the current iteration of reference (ab).
f. Recommendations. Recommendations concerning the contents of this
Order are welcomed and may be forwarded to Director, Business and Support
Services Division (MR) via the appropriate chain of command.
g. Standard Operating Procedures (SOP). Detailed NAF procurement
procedures are in references (w) and (x), which can be found on the Marine
Corps Community Services (MCCS) Crossroads SharePoint Site in the NAF
Procurement Section.
6.

Command and Signal
a.

Command.

b.

Signal.

This Order is applicable to the Marine Corps Total Force.
This Order is effective the date signed.

JAMES F. GLYNN
Deputy Commandant for
Manpower and Reserve Affairs
DISTRIBUTION:

PCN 10255313400

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MCO 7010.20A
26 Jul 2024
TABLE OF CONTENTS
IDENTIFICATION

TITLE

PAGE

Chapter 1

Procurement Authority and Responsibility.................1-1

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.

Purpose..................................................1-1
Exceptions and Clarifications............................1-1
Delegation of Procurement Authority......................1-1
Appointment as Contracting Officer.......................1-4
Authority of Contracting Officer.........................1-4
Qualifications of Nonappropriated Fund (NAF)
Contracting Officers.....................................1-5
Letter of Appointment....................................1-5
Legal Support and Reviews................................1-5
Separation of Functions..................................1-6
Procurement Integrity....................................1-6
Procurement Support......................................1-6
Ratification of Unauthorized Procurement Actions.........1-6
Release of Advance Procurement Information...............1-7
Standards of Conduct.....................................1-7
Procurement Responsibilities.............................1-7

Chapter 2

Administrative Policy and Taxes..........................2-1

1.

13.
14.
15.
16.
17.
18.

Uniform Procurement Instrument Identification
Numbering (PIIN) System..................................2-1
Contract Forms Provided by the Contractor................2-1
Contract Period..........................................2-1
Execution of Contract Actions............................2-1
Official Purchase File...................................2-1
Official Contract File...................................2-1
Advance Payments.........................................2-1
Fixed Assets.............................................2-1
Retiring Official Purchase Files and Contract Files......2-1
Marine Corps Community Services (MCCS) Procurement
Workshops................................................2-1
Procurement Management Reviews and Assistance Visits.....2-1
General Tax Rules for Nonappropriated Fund
Instrumentalities (NAFIs)................................2-2
State and Local Taxes in the United States (U.S.)........2-2
Manufacturer’s Excise Tax................................2-2
Foreign Taxes............................................2-2
Contractor Taxes.........................................2-2
Thresholds...............................................2-2
Congressional and Other Notifications and Approvals......2-2

Chapter 3

Procurement Planning.....................................3-1

1.
2.
3.
4.
5.
6.
7.
8.

General..................................................3-1
Responsibility of the Requesting Activity................3-1
Purchase Request.........................................3-1
Availability and Certification of Funds..................3-1
Lead Time................................................3-1
Contracts Versus Purchase Orders (POs)...................3-1
Specifications...........................................3-2
Insurance Requirements...................................3-2

2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

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MCO 7010.20A
26 Jul 2024
9.
10.
11.

Bonds....................................................3-2
Director, Business and Support Services Division
(DC M&RA (MR)) Contracting Office........................3-2
Appropriated Fund (APF) Contracting Office...............3-2

Chapter 4

Procurement Sources......................................4-1

1.
2.
3.
4.

6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.

Mandatory Sources........................................4-1
Small Business Act.......................................4-1
United States (U.S.) Government Sources..................4-1
Department of Defense (DoD) Nonappropriated Fund (NAF)
Cooperative Efforts......................................4-1
Marine Corps Community Services (MCCS) Cooperative
Efforts..................................................4-1
Commercial Sources.......................................4-1
Purchasing Alcoholic Beverages...........................4-1
Purchasing from Other than the Prime Source..............4-1
Federally Mandated Purchase Programs.....................4-1
Foreign Sources..........................................4-1
Purchases of Foreign Goods in the United States (U.S.)...4-2
Trademark Items..........................................4-2
Source Files.............................................4-2
Source Lists.............................................4-2
Ineligible Sources.......................................4-2
Organizations and Clubs..................................4-2
Warehouse Club Membership Cards..........................4-2

Chapter 5

Contract Types...........................................5-1

1.
2.
3.
4.

General..................................................5-1
Contract Types...........................................5-1
Service Contracting, in General..........................5-1
Equipment, Supply, and Merchandise Contracts,
in General...............................................5-1
Consumables and Subsistence Contracts, in General........5-1
Indefinite Delivery, Indefinite Quantity (IDIQ)
Contracts................................................5-2
Construction and Architect/Engineer (A/E) Contracts,
in General...............................................5-2

5.

5.
6.
7.
Chapter 6

Negotiated Procurement...................................6-1

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.

Policy Overview..........................................6-1
Responsibility...........................................6-1
Fair and Reasonable Price Determination..................6-1
Competitive Negotiation..................................6-1
Noncompetitive Procurement...............................6-3
Follow-On Noncompetitive Procurement Requirements........6-3
Contract Clauses.........................................6-4
Solicitation and Request for Proposal (RFP)..............6-4
Invitation for Bid (IFB).................................6-4
Evaluation Factors.......................................6-5
Solicitation Distribution................................6-5
Solicitation Amendments..................................6-5
Solicitation Protests and Appeals Before Award...........6-5
Two-Step Negotiation.....................................6-5
Pre-Proposal Conferences.................................6-5
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MCO 7010.20A
26 Jul 2024
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.

Receipt, Opening, and Safeguarding of Proposals..........6-5
Late Proposals...........................................6-5
Cancellation of Solicitations............................6-5
Evaluation of Proposals..................................6-6
Responsiveness...........................................6-6
Disclosure of Pre-Award Proposal Information.............6-6
Technical and Price Evaluation Panels....................6-6
Oral Presentations.......................................6-6
Price/Fee Analysis.......................................6-6
Conducting Negotiations..................................6-6
Making the Award.........................................6-6
Post-Award Notification to Offerors......................6-6
Debriefings..............................................6-6
Mistakes Alleged or Discovered After Contract Award......6-6
Purchasing General.......................................6-6
Purchase Card Program Participation......................6-6
Purchase Card Use Limitation.............................6-6
Nonappropriated Fund (NAF) Purchase Card Program.........6-6
Debit Card Use...........................................6-7

Chapter 7

Retail Buying............................................7-1

1.
2.
3.
4.
5.
6.

Retail Buying General....................................7-1
Purchasing...............................................7-1
Item Selection...........................................7-1
Brand-Name Merchandise...................................7-1
Non-Brand-Name Merchandise...............................7-1
Social Responsibility and Labor Standards................7-1

Chapter 8

Contract Administration..................................8-1

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

General..................................................8-1
Designation of Contracting Officer’s Representative
(COR)....................................................8-1
Equal Employment Opportunity and Minimum Wage Notices....8-1
Contract Modifications...................................8-1
Option Clauses...........................................8-1
Change Orders............................................8-1
Constructive Changes.....................................8-1
Novation Agreement.......................................8-1
Contract Protests, Claims, Disputes, and Appeals.........8-1
Contract Termination.....................................8-1

Chapter 9

Construction Contracting and Architect/Engineer (A/E)....9-1

1.
2.
3.
4.

Policy Overview..........................................9-1
Background...............................................9-1
Warrants.................................................9-1
Architect/Engineer (A/E).................................9-1

Appendix A
Appendix B

Glossary of Acronyms and Abbreviations...................A-1
Glossary of Terms and Definitions........................B-1

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MCO 7010.20A
26 Jul 2024
References
(a) DoDI 4105.67 w/CH-2, “Nonappropriated Fund (NAF) Procurement Policy and
Procedure,” December 1, 2017
(b) SECNAVINST 7043.5C
(c) MCO P1700.27B w/CH-1
(d) MCO 7010.19 w/CH-1
(e) DoD 7000.14-R, “Department of Defense Financial Management Regulation
(DoD FMR)”
(f) DoD 5500.7-R, “Joint Ethics Regulation (JER),” August 30, 1993
(g) DoDD 5500.07, “Standards of Conduct,” November 29, 2007
(h) SECNAV M-5210.1 w/CH-1
(i) MCO P10110.31H
(j) NAVMED P-5010-1
(k) DoDI 1015.13, “DoD Procedures for Implementing Public-Private Ventures
(PPVs) for Morale, Welfare and Recreation (MWR), and Armed Services
Exchange Category C Revenue-Generating Activities,” March 11, 2004
(l) DoDI 1330.21, “Armed Services Exchange Regulations,” July 14, 2005
(m) MCO 1754.9B
(n) SECNAVINST 5211.5F
(o) MCO 5530.13
(p) MCO 5380.2
(q) Federal Acquisition Regulation (FAR)
(r) Public Law 103-465, “Uruguay Round Agreements Act,” December 8, 1994
(s) MEDCOM Circular 40-1, “Worldwide Directory of Sanitarily Approved Food
Establishments for Armed Forces Procurement,” November 1, 2018
(t) 48 CFR 52.222-50, “Combating Trafficking in Persons”
(u) 41 CFR 60, “Office of Federal Contract Compliance Programs, Equal
Employment Opportunity, Department of Labor”
(v) DoDI 1015.10 w/CH-1, “Military Morale, Welfare, and Recreation (MWR)
Programs,” May 6, 2011
(w) MCCS NAF Procurement Standard Operating Procedures
(x) MCCS NAF Purchase Card Standard Operating Procedures
(y) DoDI 4000.19, “Support Agreements,” December 16, 2020
(z) MCO 5210.11F
(aa) 5 U.S.C. § 552a
(ab) MCO 5215.1K w/Admin CH-1
(ac) DoD Issuance Style Guide, April 3, 2024
(ad) 10 U.S.C. § 2492
(ae) 15 U.S.C. § 631 et seq.

1-1

Enclosure (1)

MCO 7010.20A
26 Jul 2024
Nonappropriated Fund (NAF) Procurement Policy
Chapter 1
Procurement Authority and Responsibility
1.

Purpose

a. This Order establishes policies governing procurements with NAF
within the United States Marine Corps (USMC). Unless stated otherwise,
references to MCCS within this document apply to all procurement activities
using NAF. Detailed procurement and purchase card procedures are set out in
the most current versions of references (w) and (x).
b. In accordance with reference (ac), within this Order, the following
helping verbs clarify the actor’s level of obligation. “Must” is used to
denote a mandatory action. “Will” is used to denote a required action in the
future. “May” or “can” is used to denote an optional action that the actor
is authorized to perform (a right, privilege, or power that the actor may
exercise at their discretion. “Shall” is not used because it does not
clearly define the actor’s level of obligation.
c.

Marine Corps NAF procurements will:
(1) Be conducted with integrity and fairness.

manner.

(2) Be performed in a timely, high quality, and cost-effective

(3) Solicit team commitment and employ planning as an integral part
of the overall process of acquiring products or services.
(4) Promote competition in the procurement process.
(5) Comply with applicable laws and regulations.
2. Exceptions and Clarifications. Written requests for waivers, exceptions,
and clarifications will be sent through the chain of command to DC M&RA (MR).
Request format can be found in reference (w).
3. Delegation of Procurement Authority. Per reference (c), procurement
authority may be delegated by position title, letter of appointment, or
warrant which is further clarified as follows:
a. “Position title” for individuals with a Retail Buyer Position
Description at Deputy Commandant for Manpower and Reserve Affairs, Business
Operations Directorate, Retail Merchandising Branch (DC M&RA (MRM)), to the
extent that funds are approved and available in the Marine Corps Exchange
(MCX) “open to buy” budget. Retail buyers are authorized to sign Purchase
Orders (POs), open POs for replenishment, Direct Delivery Agreements (DDAs)
and consignment agreements for resale merchandise sold to MCCS patrons
through MCX activities. Retail buyers do not have authority to sign Blanket
Purchase Agreements (BPAs), short- and long-term concessionaire agreements,
services contracts, or revenue-generating services contracts.

1-1

Enclosure (2)

MCO 7010.20A
26 Jul 2024
b. “Letter of Appointment” for NAF purchase card holders to the single
and monthly purchase limits designated and to the extent funds are approved
and available.
c. “Warrant” for Contracting Officers to the limits specified in the
warrant and to the extent funds are approved and available. DC M&RA (MR)
establishes personnel warrant and training requirements and appoints NAF
Contracting Officers via warrant per reference (w).
(1) The Installation Commander has the responsibility to:
(a) Nominate Contracting Officers.
(b) Ensure Contracting Officers receive the required training.
(c) Exercise fiduciary responsibility by reviewing contractual
instruments.
(2) In accordance with their warrants, NAF Contracting Officers are
delegated the authority to obligate MCCS to the extent funds have been
approved and made available by the requesting activity.
(3) NAF Contracting Officers may not obligate APFs unless separately
authorized under APF procurement regulations.
d. Limited Authority. Unless otherwise stated below or provided herein,
only a warranted MCCS NAF Contracting Officer acting in accordance with this
Order has authority to sign agreements or contracts for equipment, supplies,
and services, including but not limited to: concessionaires (short-term or
long-term commodity sales), revenue-generating services, support services,
construction and Architect/Engineer (A/E), maintenance and repair,
professional services (consultants), Public-Private Ventures (PPVs), vending
machine stocking (including removal or replacement of machines),
entertainment (including bands and DJs), sports professionals (paid
instructors, coaches, or referees), and Information Technology (IT) hardware,
software and support.
(1) Local Direct Delivery Agreements (DDAs) and Consignment
Agreements for Retail and Resale Merchandise. Although the majority of
retail merchandise is purchased at DC M&RA (MR), Central Buying Office (CBO),
there is still a need for some local DDAs and consignment agreements. Local
agreements must be signed by a warranted Contracting Officer or a DC M&RA
(MR) buyer. If both a DC M&RA (MR) contract and a local MCX contract exist
for the same merchandise, the DC M&RA (MR) contract takes priority; the local
contract will be terminated based upon the expiration/termination clause and
will be coordinated between DC M&RA (MR) and the local Contracting Officer to
prevent a lapse in coverage and to address agreement termination fees (if
any). The local MCCS or other NAF activity may not negotiate separate
contracts where a DC M&RA (MR) contract exists. The local MCCS must notify
the DC M&RA (MR) buyer if aware of better pricing than what is available on
the DC M&RA (MR) contract.
(2) Nonappropriated Fund (NAF) Purchase Cards. Appointed cardholders
may use the NAF purchase card when acting in accordance with this Order, the
applicable DC M&RA (MR) SOP, and within the cardholder’s specified dollar
limits. Cardholders who are Contracting Officers may use the NAF Purchase
Card when acting in accordance with this Order, the applicable DC M&RA (MR)
1-2

Enclosure (2)

MCO 7010.20A
26 Jul 2024
SOP, and the limits of their warrants. Unless otherwise allowed by policy,
cardholders may not purchase fixed assets, sign a bi-lateral (two-party)
contract, or sign vendor agreements listing terms and conditions (e.g.,
equipment rental agreements). Cardholders may not purchase resale
merchandise from General Services Administration (GSA) contracts unless GSA
and the contractor specifically authorize use. The cardholder’s authority is
restricted to the purchase of services in the dollar amount set out in their
appointment letter or a single purchase limit of $2,500, whichever is lower;
and to the purchase of construction in the dollar amount set out in their
appointment letter or the single purchase limit of $2,000, whichever is
lower.
(3) Petty Cash. If unable to use a NAF Purchase Card, petty cash is
authorized for use per references (d) and (e).
(4) Call Orders. Call orders placed by designated/authorized
ordering agents against BPAs or DDAs where the master BPA or DDA was signed
by a warranted Contracting Officer or a DC M&RA (MRM) buyer.
(5) Subsistence Food. Call orders for food and food service items
placed by the Food and Hospitality Manager or designee against the Joint
Services Prime Vendor Program Contract or against a BPA signed by a warranted
Contracting Officer. NAF Purchase Cards may be used within designated limits
and as allowed by policy. Purchase requests for all other food and supply
requirements (including food or support to be provided from a catering
company) must be submitted to the supporting NAF Procurement Office. See
reference (s).
(6) Pro Shop Merchandise. Pro shop personnel (golf, bowling, etc.)
may make purchases for pro shop resale merchandise using their NAF Purchase
Cards within designated limits or against a BPA issued by a warranted
Contracting Officer. All other POs or contracts for pro shop merchandise
must be signed by a DC M&RA (MRM) buyer (for resale merchandise only) or a
warranted Contracting Officer (for equipment, supplies, services, or resale
merchandise).
(7) Recreation and Tour Tickets. As designated within the Joint
Service Agreement or within the BPA Ordering Agent Appointment Letter, the
Recreation/Information, Tickets and Tours Manager or designee may place calls
for recreation and tour tickets to entertainment venues against existing
Joint Services Agreements (Military Ticket Program or Military Ticket Voucher
Program) or a BPA signed by a warranted Contracting Officer. All other POs,
BPAs, DDAs, or contracts with entertainment venues (e.g., theme parks, ski
resorts) must be signed by a warranted Contracting Officer.
e.

Exceptions.

The following are not covered by this policy:

(1) Patron Agreements. The MCCS Activity Manager or designee is
authorized to sign agreements between the MCCS activity and an authorized
patron (hereafter referred to as “patron”) which is defined in reference (c).
Patron agreements include but are not limited to: catering agreements
between a patron and the Food and Hospitality or Catering Manager; golf event
agreements between a patron and the Golf Course Manager; marina slip rentals
between a patron and the Marina Manager; and recreation, tickets, or tours
between a patron and a Recreation/Information, Tickets and Tours Manager.
MCCS activities must ensure new or revised patron agreement formats and
standard terms are coordinated with Counsel and their local Forms Management
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Enclosure (2)

MCO 7010.20A
26 Jul 2024
Officer (FMO) / Command Designated Records Manager (CDRM) and privacy point
of contact. Purchase or rental of supplies or services from a vendor to
support a patron agreement (e.g., canopy or chair rentals, or food
concessions) must follow regular NAF procurement procedures. See also
references (i) and (j).
(2) Commercial Sponsorship Agreements. Retail buyers and officials
responsible for procurement or contracting are not authorized to solicit or
sign sponsorship agreements. This does not preclude normal NAF contracting
in support of commercially sponsored MCCS Morale, Welfare and Recreation
(MWR) activities and/or events.
(3) Volunteer Services. Contracts signed by a warranted Contracting
Officer are not necessary for volunteer services, (e.g., coaches), except in
accordance with Marine Corps policy outlined in reference (p).
(4) Memorandums of Agreement (MOAs) and Memorandums of Understanding
(MOUs). Memorandums of Agreement (MOAs) and Memorandums of Understanding
(MOUs) with another government entity do not require signature by a warranted
Contracting Officer and may be signed by the Installation Commanding Officer,
MCCS Director, or other designee.
4. Appointment as Contracting Officer. A warrant is the instrument by which
DC M&RA (MR) grants individuals the authority to enter the MCCS into legally
binding contracts. This authority recognizes an employee's qualifications
for appointment as an MCCS (NAF) Contracting Officer. Warrant authority is
automatically rescinded upon termination of employment or transfer outside of
a procurement position.
5.

Authority of Contracting Officer

a. MCCS Contracting Officers have authority to enter into, administer,
or terminate NAF contractual actions and to make NAF contract-related
decisions. NAF contracts are contracts of the U.S. Government, but they do
not obligate APF. MCCS Contracting Officers may bind the MCCS only to the
extent of the authority delegated to them. The Contracting Officer’s
appointing authority establishes the limits of authority.
b. A contract action is defined as an award or modification of a PO,
delivery order, or contract. Dollar value authority is applicable to each
contract action. Contracting Officers will not modify a contract that has a
dollar value over the dollar limitations authorized by their warrants.
c. Guidance in deciding the dollar value in various contractual actions
is provided below:
(1) Fixed dollar contracts:
option periods.

the amount of contract award, including

(2) Indefinite delivery contracts, DDAs, and open POs: the value of
the total estimated procurement for the current contract period including
option periods (even if it is known that items and prices for later periods
may be changed). The total estimated dollar amount must include orders
expected to be placed by other authorized NAFIs, if known.
(3) Concession, vending, and agency contracts: the estimated total
gross sales for the term of the contract, including option periods.
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Enclosure (2)

MCO 7010.20A
26 Jul 2024
(4) Contract or order modification: the value of the contract or
order as modified, even if the modification amount is within the dollar
limitation of the warrant.
(5) POs, task orders, and delivery orders:

the amount of the award.

d. No contract will be entered into unless the Contracting Officer
ensures that all requirements of law, executive orders, regulations, and
other applicable procedures, including clearances and approvals, have been
met.
e. To meet the goals of MCCS, Contracting Officers have wide latitude to
exercise business judgment. Contracting Officers will:
(1) Verify that the purchase request is complete, including all
required signatures, certification of funds availability, and contains
sufficient descriptive data to make the purchase.
(2) Be responsible for managing contractor relationships by
overseeing the integrity and effectiveness of the procurement process,
ensuring that contractors are treated fairly and objectively, and maintaining
effective communications with contractors throughout contract performance.
(3) Take into consideration the advice of specialists in audit, law,
finance, engineering, transportation, and other fields, as appropriate.
f. NAF Contracting Officers will be guided by the Standards of Conduct
as prescribed by references (f) and (g) and address areas of conflicts of
interest, favoritism, gifts and gratuities, and post-Government employment.
Questions will be directed to local Ethics Counselors.
g. DoD NAF civilian employees are subject to the same fiduciary
responsibilities as APF civilian employees. Penalties for violations include
administrative actions, monetary fines, or imprisonment. Questions will be
directed to MCCS Counsel.
6.

Qualifications of Nonappropriated Fund (NAF) Contracting Officers

a. With the exception noted below, only General Schedule or NAF paybanded positions, or military personnel assigned to MCCS may be appointed as
NAF Contracting Officers.
b. At the request of the installation commander and with the concurrence
of Counsel, DC M&RA (MR) may grant NAF Contracting Officer warrant authority
up to $50,000 to local national employees in overseas locations.
7. Letter of Appointment. Upon DC M&RA (MR) issuance of a warrant, the
Installation Commander (or Assistant Chief of Staff (AC/S)) or MCCS Director,
if designated) must issue a letter of appointment to the Contracting Officer
containing command-specific guidance and applicability, as appropriate.
Letters of appointment will follow the procedures in reference (w).
8. Legal Support and Reviews. The Office of Counsel for the Commandant, and
its field offices are component offices of the Department of the Navy Office
of General Counsel and will provide legal support and assistance to MCCS and
NAF contracting activities worldwide. NAF procurement personnel are strongly
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encouraged to submit all questions of a legal, policy, or business nature on
any subject that is of concern to their respective regional MCCS Counsel or
supporting command counsel. If no regional MCCS Counsel or command counsel
is available, inquiries should be made to DC M&RA (MRB). Each request for
legal review and assistance should include a statement of the issue,
supporting documentation (including solicitation documents, contract files,
etc.), and any other information needed to assist in resolving the matter.
Requests for legal support and reviews will follow the procedures in
reference (w).
9.

Separation of Functions

a. Distinct procurement functions, set out below, will be performed
sequentially by different personnel in order to preserve the integrity of the
procurement process. Additional required procedures are set out in reference
(w).
(1) Preparation of the purchase request and certification of funding
availability by requesting activity personnel.
(2) Award of the order or contract by procurement personnel.
(3) Receipt of goods or services by receiving or warehouse personnel,
or by requesting activity personnel.
(4) Payment by accounts payable personnel.
b. Small activities may not be able to assign separate personnel for
each function; however, these duties must be separated to the maximum extent
practicable to preserve checks and balances needed to preclude fraud, waste,
and abuse. In no event will all of the above functions be performed by the
same individual. Procurement personnel will not engage in receiving and/or
invoice payment functions, or report to personnel responsible for those
functions.
c. A limited exception to the separation of functions requirement is
granted to individuals making purchases with a purchase card and individuals
entering purchase requests and orders into an electronic procurement system.
10. Procurement Integrity. MCCS personnel involved in the procurement
process, and in a position to influence the contract award decision, must
comply with procurement integrity guidelines. Personnel includes but is not
limited to: Contracting Officers, legal counsel, requesting activity
personnel, technical evaluation panel members, and Contracting Officers’
Representatives (CORs). In addition, the Contracting Officer, by awarding a
contract delivery order, PO, and taking other actions relative to such
contract actions, is making a procurement integrity certification. See the
Procurement Integrity Section of reference (w) for additional guidance.
11. Procurement Support. In addition to the assigned responsibilities, MCCS
Procurement Offices may support other MCCS activities or other NAF activities
outside MCCS organizational responsibility. If support of other activities
is to be handled on a continual basis, a written MOA under reference (ad)
between the activities is recommended. See reference (w) for further detail
and requirements.

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12. Ratification of Unauthorized Procurement Actions. An unauthorized
procurement action is an agreement (either verbal or written) that commits
NAF and/or resources to a concern that is not binding solely because the MCCS
representative who made it lacked the authority to enter into that agreement
on behalf of the NAFI. The ratification of an unauthorized procurement
action is an after-the-fact approval of the commitment of NAF. An
unauthorized procurement action purportedly on behalf of the MCCS may result
in a void or voidable contract and, in some circumstances, may result in the
personal liability of the individual making the unauthorized commitment.
Requests to ratify an unauthorized procurement action will follow the
procedures set out in reference (w).
13. Release of Advance Procurement Information. MCCS personnel will not
provide potential contractors with advance information concerning proposed
procurements. Such information will be released only by duly appointed
Contracting Officers acting within the scope of their authority.
14. Standards of Conduct. MCCS procurement personnel will act in a fair and
impartial manner and abide by references (f) and (g).
15.

Procurement Responsibilities
a.

DC M&RA (MR) will:

(1) Contract for equipment, supplies, support services, retail
merchandise, and revenue-generating services, construction and A/E Services
for internal and for system-wide or regional requirements that support
several or all MCCS locations. Regional MCCS Procurement Offices have
limited authority to enter into cooperative effort contracts per Chapter 4 of
this Order.
(2) Provide procurement support for MCCS activities when a
procurement action exceeds local warrant authority and support is not
available from another MCCS Procurement Office as allowed by Chapter 1 of
this Order.
(3) Contract for organization-wide support agreements, including but
not limited to: banking services, credit card processing services, employee
and MCCS enterprise organization services (e.g., insurance, health
maintenance, and employee benefit plans). See reference (y).
(4) Designate mandatory-use contracts. MCCS locations must seek a
written waiver from DC M&RA (MR) prior to contracting for products or
services that are available from mandatory-use contracts. See Chapter 4 of
this Order and reference (w) for further detail and requirements.
(5) Assist MCCS Procurement Offices with procurement policy guidance
and interpretation to include dissemination of changes to MCCS NAF
Procurement SOP and applicable thresholds.
b. RPO Directors review requirements; determine appropriate methods of
procurement; assign, review and approve procurement work at any installation
within their respective region; and monitor and mentor the performance of RPO
and installation procurement staff.

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Chapter 2
Administrative Policy and Taxes
1. Uniform Procurement Instrument Identification Numbering (PIIN) System.
MCCS solicitations and contracts (including POs, delivery/task orders,
agreements, and other contractual instruments) will be numbered in a
standardized format as set out in reference (w).
2. Contract Forms Provided by the Contractor. Signing contractor-provided
contract forms on behalf of the MCCS is not authorized unless prior
concurrence has been obtained by Counsel.
3. Contract Period. Generally, MCCS contracts may be for any length of time
up to five years. Contracts for major systems or that involve capital
investment may be for longer periods in accordance with reference (w). When
contract requirements are repetitive, multi-year or multiple year contracting
is recommended.
4. Execution of Contract Actions. Contracting Officers will sign and
execute NAF contract actions on behalf of the MCCS. The Contracting Officer
will personally sign all contracts, POs, and supporting documents that
require the signature of the Contracting Officer. Additional required
procedures concerning the execution of contract actions and the distribution
of contract instruments are set out in reference (w).
5. Official Purchase File. MCCS must maintain an official purchase file.
Additional required procedures concerning maintenance of the official
purchase file are set out in reference (w).
6. Official Contract File. MCCS must maintain an official contract file.
Additional required procedures concerning maintenance of the official
contract file are set out in reference (w).
7. Advance Payments. Advance payments are disfavored but may be provided on
any type of contract. The Contracting Officer will authorize advance
payments sparingly. Advance payment is the least preferred method of
contract financing and will not be authorized if other standard payment
procedures (partial, progress, and payment on receipt) are available.
8. Fixed Assets. Fixed assets are defined in reference (d).
purchase fixed assets.

MCCS may

9. Retiring Official Purchase Files and Contract Files. When a contract
instrument (including POs, delivery orders, and agreements) expires through
termination or otherwise, the file will be maintained in accordance with
reference (h).
10. Marine Corps Community Services (MCCS) Procurement Workshops. DC M&RA
(MR) may schedule procurement workshops in compliance with current DON
guidance. The AC/S or MCCS Director at each installation will budget travel,
lodging, and per diem funds for at least one or two MCCS procurement
representatives to attend annually.
11. Procurement Management Reviews and Assistance Visits. DC M&RA (MRB)
will conduct procurement management reviews of contracting and purchasing
activities, and conduct informal assistance visits to provide training,
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mentoring, or support. Reviews will be documented with written reports that
reflect significant observations, recommendations, and areas of commendable
performance or of serious deficiencies.
12. General Tax Rules for Nonappropriated Fund Instrumentalities (NAFIs).
As an instrumentality of the U.S., an MCCS NAFI is entitled to the same
immunity accorded the U.S. Government from the taxes of states, the District
of Columbia, and territories and possessions of the U.S.
13. State and Local Taxes in the United States (U.S.). Contracting Officers
will analyze each purchase action to ensure that MCCS does not pay
inapplicable taxes.
14. Manufacturer's Excise Tax. Items purchased for overseas MCCS
activities, other than activities in Alaska and Hawaii, are exempt from the
Federal Manufacturer's Excise Tax by virtue of exportation.
15. Foreign Taxes. MCCS is precluded from paying or collecting foreign
taxes. By virtue of international agreements, MCCS is exempt from most
foreign customs, duties, and taxes; see reference (r). Specific advice will
be obtained from MCCS Counsel.
16. Contractor Taxes. MCCS contractors are responsible for payment of all
federal, state, host country, and local taxes applicable to the property,
income, and transactions of the contractor.
17. Thresholds. Contracting Officers are required to know the dollar
thresholds used to determine applicable clauses, (e.g., to apply the Buy
American Act, Service Contract Act, and other clauses). As needed, DC M&RA
(MRB) will update the amounts in the relevant SOP.
18. Congressional and Other Notifications and Approvals. The requesting
activity must coordinate congressional and other notifications and/or obtain
approvals as required; however, copies of notification or approval
documentation must be retained in the official contract file. All
congressional notifications must be routed officially through the chain of
command, including coordination with DC M&RA (MR). As part of the
procurement planning process, Contracting Officers must be familiar with the
requirements for all congressional and other notifications and approvals.

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Chapter 3
Procurement Planning
1.

General

a. Procurement planning is the key to successful development of a
requirement and subsequent execution of the procurement. Requesting activity
personnel will coordinate with the Contracting Officer early in the initial
requirement development phase, preferably well in advance of the fiscal year
in which contract award is requested.
b. As part of the procurement planning process, requesting activity
personnel will determine the activity’s requirements and research the market
as a means of getting information on sources of supply and current state-ofthe-art products and services. Determining requirements is not a
responsibility of procurement personnel. Requests for information by the
requesting activity are for research purposes only.
c. Requesting activities conducting market research will ensure such
research is not construed as a representation that a contract will be
awarded. Requesting activities may inquire in general terms about supplier
pricing to determine a budget but must not request official quotes or
proposals. Information received from vendors for this purpose must not be
considered a quote even though the vendor may use the word “quote” in
responding to market research.
2. Responsibility of the Requesting Activity. Requesting activity personnel
determine which supplies or services most adequately meet the activity’s
needs, clearly define those supplies or services, and provide an Independent
Government Estimate (IGE) on the purchase request. See reference (w).
3. Purchase Request. The requesting activity will forward its requirements
to the Procurement Office on a purchase request, also known as a procurement
request or requisition.
4. Availability and Certification of Funds. Funds will be made available
using the electronic procurement system approval process. In the event the
electronic procurement system is unavailable for an extended period, funds
may be made available through certification on a paper purchase request
(including requests for contract extension or modification).
5. Lead Time. Requesting activities must make every effort to establish a
realistic delivery date to allow the purchase to be properly accomplished.
Purchase requests will be submitted to the Procurement Office in sufficient
time to allow for the procurement process to be completed, production time,
and delivery of the supplies or services by the required delivery date.
6. Contracts Versus Purchase Orders (POs). The administrative cost of
establishing and administrating two-party (bilateral) contracts is not
warranted for much of the equipment, supplies, and merchandise purchased by
MCCS. The preferred method of procurement will be by PO, delivery order, or
purchase card. See reference (w).

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7.

Specifications

a. Specifications, including statements of work and purchase
descriptions, will not be so restrictive as to improperly eliminate
competition. Industry-developed specifications are encouraged when
available.
b. Specifications must be clearly written, and all sections of a
contract must be consistent with each other in order to effect timely and
economical procurements.
8. Insurance Requirements. In compliance with DC M&RA (MR) insurance
guidelines, contractors are required to carry insurance in amounts sufficient
to protect the interest of the MCCS and the U.S. Unless otherwise allowed by
policy or other guidance, the Contracting Officer will use the standard
insurance clauses issued by DC M&RA (MR). When deviation is required, the
Contracting Officer will forward to MR Composite Insurance Program Manager
for review and approval.
9. Bonds. MCCS may use performance bonds to protect the MCCS's interest.
See reference (w) for further detail and requirements.
10. Director, Business and Support Services Division (DC M&RA (MR))
Contracting Office. Contracting and purchasing personnel at DC M&RA (MR) are
available to assist MCCS Procurement Offices with procurement policy
guidance, sample specifications/work statements, evaluation criteria, etc.
11. Appropriated Fund (APF) Contracting Office. MCCS procurement personnel
are encouraged to request the assistance of installation/regional APF
contracting personnel on source list development, local vendor information,
etc.

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Chapter 4
Procurement Sources
1. Mandatory Sources. DC M&RA (MRB) designates mandatory-use contracts for
equipment, supplies, and services and posts ordering instructions to
http://crossroads/MRB/default.aspx. MCCS Procurement Offices are required to
use mandatory-use contracts unless granted a waiver, or a written
determination is made that the product or service is not comparable. See
reference (w) for further detail and requirements.
2. Small Business Act. The provisions of the Small Business Act (reference
(ae)) do not apply to NAF procurements. However, small business, small
disadvantaged business, and minority business concerns are not excluded from
competing for MCCS requirements.
3. United States (U.S.) Government Sources. MCCS may use other government
activities, both APF and NAF, as sources for goods and services.
4. Department of Defense (DoD) Nonappropriated Fund (NAF) Cooperative
Efforts. MCCS will participate in DoD NAF cooperative efforts contracts that
are designated as mandatory-use and is encouraged to participate in contracts
designated as available for system-wide use.
5. Marine Corps Community Services (MCCS) Cooperative Efforts. MCCS
activities will participate in regional or system-wide MCCS contracts
designated as mandatory-use.
6. Commercial Sources. MCCS will purchase standard commercial products
readily available in commercial trade whenever feasible.
7. Purchasing Alcoholic Beverages. MCCS may purchase alcoholic beverages
subject to federal and state laws and regulations.
8. Purchasing from Other than the Prime Source. MCCS activities will
purchase from the prime source when possible unless industry practice deems
it more appropriate to purchase from vendor representative firms.
9. Federally Mandated Purchase Programs. As applicable, MCCS NAF
procurements should apply federally mandated purchase programs as set out in
reference (w). These include, but are not limited to, the Buy American Act,
the Berry Amendment, the DoD International Balance of Payments Program, Trade
Agreements, and other agreements such as Status of Forces Agreements (SOFAs),
Host Nation Agreements (HNAs), and relevant treaties. Questions on
applicability should be directed to Counsel.
10.

Foreign Sources

a. Contracting Officers will not purchase any items that cannot be
lawfully imported into the U.S. because of governmental restrictions, such as
counterfeit trademarked items or copyright limitations on trade names.
b. Services and construction requirements at locations outside the U.S.
may be negotiated with eligible sources consistent with host-country laws,
treaties, or SOFAs.

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c. MCCS activities located outside the U.S. will, within the limits of
sound business practice, stock merchandise of U.S. origin in preference to
equivalent merchandise from foreign sources.
d. Questions concerning purchasing jurisdiction in foreign areas will be
forwarded to MCCS Counsel.
11.

Purchases of Foreign Goods in the United States (U.S.)

a. Purchases in the U.S. of duty-paid foreign goods physically located
in the U.S. are authorized. Importers having an exclusive franchise for
distribution in the U.S. of foreign items are considered the prime source for
these items.
b. Contracting Officers will apply for a tax “drawback” when applicable.
Drawback is a refund of U.S. customs duty paid on goods imported and later
exported; (e.g., when a contractor imports sugar for a product that is later
exported to overseas activities, the contract should include a tax drawback
provision). In such cases, the contractor agrees to process claims for
drawback of customs duty or refund federal excise tax and to remit proceeds,
less the cost of processing the claim, to MCCS. Contracting Officers may use
drawback information (amount of duty paid) to compute the cost of an item
excluding duty.
12. Trademark Items. U.S. registered trademarked items will be bought
directly from trademark owners or from authorized, designated, licensed, or
franchised distributors. MCCS will not buy and sell counterfeit items
bearing registered trademark logos.
13. Source Files. Source files may be paper or electronic.
(w) for further detail and requirements.

See reference

14. Source Lists. A source list is required for each competitive
solicitation. It is developed prior to each solicitation from the source
files or from market research and is retained in the solicitation file.
15. Ineligible Sources. MCCS requirements will not be purchased from
ineligible individuals or firms. Firms or individuals listed in a source
file or on a source list who are later found to be debarred or suspended, or
who are otherwise determined to be ineligible, will be removed from source
files and lists to the extent required by such debarment, suspension, or
other determination of ineligibility.
16. Organizations and Clubs. Unless otherwise prohibited, the MCCS may
issue an order or contract with a private organization when the total amount
is under the competition threshold and when the service is infrequent. MCCS
is not authorized to provide procurement services to private organizations or
clubs authorized to operate on the installation. Contact MCCS Counsel with
questions.
17. Warehouse Club Membership Cards. The MCCS may use a PO or petty cash to
purchase a warehouse club membership. The membership card must be issued in
the MCCS name versus an individual’s name.

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Chapter 5
Contract Types
1. General. A contract defines the legal rights and obligations of the
contracting parties. Contracts may, under specified conditions, be
established on simple documents such as POs, or they may be complex in
nature, containing detailed specifications and performance standards. The
following must be present for a valid contract: competent parties, legal
subject matter, legal consideration, mutual agreement, and mutual obligation.
MCCS will use a variety of contract vehicles to meet customer requirements.
2.

Contract Types

a. MCCS will enter into fixed-price type contracts; MCCS will not enter
into cost-reimbursement contracts without the prior approval of DC M&RA (MR).
MCCS fixed price contracts will be established by written PO, delivery order,
or contract. The selection of the type of contract and the purchasing
procedure to be used in a particular situation will be determined by the
Contracting Officer.
b. MCCS contracts may also be described as either Exchange or nonExchange contracts. This distinction is important for legal jurisdiction
over contract disputes. The Contract Disputes Act applies to Exchange
contracts and to the jurisdiction of Armed Services Board of Contract Appeals
(ASBCA), and if ASBCA decision is appealed, the U.S. Court of Appeals for the
Federal Circuit during contract disputes. Non-exchange contracts are not
subject to the Contract Disputes Act and should not be drafted in such a
manner as to imply such jurisdiction.
3. Service Contracting, in General. A service contract is a contract that
directly engages the time and effort of a contractor whose primary purpose is
to perform an identifiable task rather than to furnish an end item of supply.
A service contract can cover services performed by either professional or
nonprofessional personnel and can be performed by an individual or an
organization. Service operations may sell ancillary products similar to
those sold by commercial firms. If product sales are permitted, the contract
will include this requirement (or option) and address product pricing. MCCS
is to acquire services in accordance with law and regulation.
4. Equipment, Supply, and Merchandise Contracts, in General. MCCS will
purchase off-the-shelf commercial equipment, supplies, and merchandise for
use or resale of the MCCS. An off-the-shelf item is produced and placed in
stock by a supplier before orders are received.
5.

Consumables and Subsistence Contracts, in General

a. Consumable items are products that lose their identity during use or
are consumed during the course of daily business. These are classified as
non-edible items. Consumable items include, but are not limited to, paper
products, fuel, postage stamps, and airline tickets.
b. Subsistence includes all food and beverage items.
classified as edible or drinkable items.

These are

c. Procurement of consumable and subsistence items will be in accordance
with law and regulation. Greater detail is set out in reference (w).
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6. Indefinite Delivery, Indefinite Quantity (IDIQ) Contracts. Indefinite
delivery contracts are used when the exact times and/or exact quantities of
future deliveries are not known at the time of award. There are three types
of Indefinite Delivery, Indefinite Quantity (IDIQ) contracts: indefinite
quantity, definite quantity, and requirements. These contracts are often
referred to as IDIQ contracts. Delivery orders placed against these
contracts must be within the scope, issued within the period of performance,
and be within the maximum value of the contract. See reference (w) for
additional guidance.
7.

Construction and Architect/Engineer (A/E) Contracts, in General

a. Construction is defined as the erection, installation, or assembly of
a new facility; the addition, alteration, expansion, usable conversion,
relocation, replacement, or extension of an existing facility; the relocation
of facilities and equipment; the adjustment of interior arrangements or other
physical characteristics of a facility; the installation of utilities and
equipment made a part of a facility; and related site preparation,
excavation, filling, landscaping, land improvements, and other improvements.
It includes pouring, dredging, excavating, and painting. It does not include
installation of carpet, wall covering, or draperies.
b. A/E Services are professional services of an architectural or
engineering nature that are associated with research, planning, development,
design, construction, alteration, or repair of real property. A/E Services
do not include interior design services or project validation assessments.
These services will use standard service contract procedures.

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Chapter 6
Negotiated Procurement
1.

Policy Overview

a. DoD policy encourages the use of competitive procurement procedures
to procure goods and services to the maximum extent practicable. Negotiation
with contractors is intended to meet the requiring activity’s needs and
obtain the best possible prices, terms and conditions while complying with
law and regulation.
b. Contracting Officers must obtain required competition or approve
justifications for non-competitive procurement, conduct evaluations and
negotiations, determine price reasonableness, determine responsibility, and
make the award decision based on best value to meet the needs of the
requesting activity.
2.

Responsibility

a. Responsibility refers to an offeror’s ability to perform a contract.
No MCCS contract or PO may be awarded to any person or firm unless the
Contracting Officer determines that the prospective contractor is
responsible. See reference (w) for additional detail.
b. A contract award, to include issuances of delivery orders, exercise
of options and making award by any contract process, cannot be made without
the Contracting Officer’s determination of the contractor’s responsibility.
3. Fair and Reasonable Price Determination. MCCS contracts and POs for each
non-resale procurement over the competition threshold will include a fair and
reasonable price determination.
4. Competitive Negotiation. MCCS must engage in competitive negotiation to
the maximum extent practicable.
a. Competition is the preferred method of MCCS procurement. Competition
encourages multiple sources to seek NAF contracts. Competition helps lower
contract costs or prices and helps drive up the quality of the goods and
services provided. There are occasions when the advantages of competition
are outweighed by the administrative costs and time needed to conduct
competition; however, expediency is not a valid basis for not obtaining
competition for a requirement. Limiting competition is authorized when
supported by law or as provided in this Order. Contracting Officers are
encouraged to seek advice and guidance from DC M&RA (MRB) and Counsel.
b. Requirements may be solicited from only one source if the price is
determined fair and reasonable, the potential contractor is determined
responsible, and one or more of the following apply (see reference (w) for
process):
(1) The requirement is for a brand-name resale item.
(2) The purchase is for packaged beverages to be obtained from the
franchised distributor in the area.

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(3) The estimated cost of equipment, supplies, or services is below
the competition threshold. Refer to applicable requirements in Chapter 4 for
the Buy American Act and Trade Agreements Act, Chapter 5, Service Contract
Labor Standards, and Chapter 9 of this Order, and Construction Wage Rate
Requirements statute (formerly Davis-Bacon Act).
(4) When no competitive interest is apparent in contracts for
services, including revenue-generating services, having average monthly sales
of $2,500 or less. The contract file will be documented to reflect attempts
to generate competitive interest.
(5) When contracting for short-term commodity sales concessions
(refer to Chapter 5 of this Order).
(6) When the purchase is made from a prescribed mandatory source such
as Federal Prison Industries (FPI) or AbilityOne (refer to Chapter 4 of this
Order).
(7) When the purchase is made from a DoD NAFI cooperative effort
contract. DoD NAFIs include Navy Exchange Command (NEXCOM); The Exchange
(previously known as Army and Air Force Exchange Services (AAFES));
Commander, Navy Installations Command (CNIC), Fleet and Family Readiness
(F&FR); Army Family and Morale, Welfare and Recreation (Army MWR); Air Force
Nonappropriated Fund Purchasing Office (AFNAFPO); and Coast Guard Exchange
System (CGES). MCCS need not seek further competition or make a separate
determination of fair and reasonable pricing for supplies, material or
equipment when using these sources because the Contracting Officer who
awarded the original contract has already justified the competition
requirement and determined the prices to be fair and reasonable. A fair and
reasonable determination must be made for services awarded as a level of
effort taking into consideration the hourly rates and hours anticipated to
conduct the work.
(8) When the purchase is made from a competitively awarded GSA
contract. GSA contracts that are referred to as “Schedule” contracts but are
also known as “Multiple Award Schedule (MAS)” or “Federal Supply Schedule”
contracts, require the Contracting Officer to review, compare, and award
based on best value. GSA Schedule contracts are IDIQ, multiple award type of
contracts, meaning they provide for an indeterminate number of orders and can
be awarded to multiple contractors at once. GSA Schedule contracts do not
qualify as a valid justification for single or sole source procurement based
solely on designation as a GSA contract. It is the Contracting Officer’s
decision whether to issue a solicitation or to use GSA Schedule contracts.
If issuing a solicitation, the Contracting Officer may include GSA
contractors on the source list and advise all offerors to propose their best
pricing, either GSA or open market. If the requirement exceeds the
simplified acquisition threshold, then the Contracting Officer must issue a
competitive solicitation. See reference (w).
(9) When purchasing training requirements up to $50,000, excluding
travel and lodging expenses, provided that the training courses are
commercially available through a regular dealer. See reference (w).
(10) When the purchase is made from a nonprofit institution or
federally funded research and development center.

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(11) When the purchase is for a Marine Corps Ball venue, it may be
reasonable to justify a single source contract award based on unique features
regarding performance, technical, functional, or aesthetic characteristics
offered by the venue that are not available from another source. See
reference (w).
c. Under no circumstance will a requirement be split to avoid
contracting procedures or competition requirements.
5.

Noncompetitive Procurement

a. Noncompetitive procurements will be discouraged and generally should
not be used for MCCS procurements involving commercial off-the-shelf
equipment and supplies.
b. A noncompetitive procurement is a contract for the purchase of
supplies or services that resulted after negotiating with only one source.
Requirements may be solicited by MCCS from one or a limited number of sources
under certain circumstances. The Contracting Officer will determine that the
prerequisites for a one source or a limited source purchase have been met.
Requirements will not be split to avoid contracting procedures, competition
requirements or any other threshold. Noncompetitive procurement actions may
be appropriate in the following circumstances:
(1) Sole Source. Competition is not required when the supplies or
services are only available from a sole source, the source is determined
responsible, and no other type of supplies or services will satisfy MCCS
requirements. See reference (w) for additional guidance.
(2) Single Source. Supplies or services are also exempt from
competition when there is reasonable justification to conclude that MCCS
minimum needs can only be satisfied by one single source. See reference (w)
for additional guidance.
c.

Justification for Noncompetitive Procurement Actions

(1) Contracting Officers will not commence negotiations for
noncompetitive procurements, unless they:
(a) Ensure technical personnel and requesting activities provide
documentation to support their recommendation for noncompetitive procurement.
(b) Ensure the justification contains sufficient facts and
rationale to justify noncompetitive procurement.
6.

Follow-On Noncompetitive Procurement Requirements

a. Equipment and supplies may be deemed to be available only from the
original source in the case of a follow-on contract for continued development
or production (e.g., additional units, replacement items, license or
maintenance fees related to a software package, or for integration with
existing systems) when it is likely that award to any other source would
result in:
(1) Substantial duplication of cost to MCCS that is not expected to
be recovered through competition.

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(2) Unacceptable delays in fulfilling MCCS requirements.
b. Services may be deemed to be available only from the original source
in the case of follow-on contracts for the continued provision of highly
specialized services, to include professional services (e.g., highly
specialized services provided by a research analysis contractor that has a
patent on research tools used to collect USMC data in past years where MCCS
would have to pay additional money to reconstruct the data used in the past
as well as the current timeframe in order to obtain a comparative analysis),
when it is likely that award to any other source would result in:
(1) Substantial duplication of cost to MCCS that is not expected to
be recovered through competition.
(2) Unacceptable delays in fulfilling MCCS requirements.
c. In addition to the above, follow-on contracts for equipment,
supplies, or services may be deemed available only from the original source
when multiple quotations are not reasonably obtainable or when competitive
negotiation is otherwise impractical.
7.

Contract Clauses

a. All MCCS contracts and POs, despite the format used, require specific
clauses be included. MCCS contracts will include the following mandatory
clauses per reference (a): Changes, Examination of Records, Claims
(Disputes), and Terminations.
b. All MCCS NAF contracts will identify the responsible NAFI and will
state that no APFs of the U.S. will be obligated, due or payable to the
contractor.
c. Each MCCS contract will include contract clauses required by
applicable statutes, regulations, or DoD issuances.
8. Solicitation and Request for Proposal (RFP). Requests for Proposals
(RFPs) may be used at the discretion of the Contracting Officer for any
procurement; however, they will be used when:
a. Complex requirements, drawings and/or detailed specifications are
involved.
b. Contracts will be awarded based on best value with consideration
given to price and non-price technical evaluation factors. Two methods most
used for best value procurement include the Trade-Off Process and the Lowest
Price Technically Acceptable (LPTA) Process. Refer to Appendix A of
reference (w), for definitions.
9. Invitation for Bid (IFB). An IFB, using sealed bid procedures, furnishes
a requirement and potential contractors generally provide only prices. With
an IFB, there is no opportunity for the bidder to negotiate the terms of the
contract and no deviations from the terms of the IFB are allowed. IFBs are
an APF procurement method and will not be used by MCCS activities.

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10. Evaluation Factors. The solicitation will set out evaluation factors.
Factors considered in evaluating offers will be tailored to each procurement
and include only those factors that will have an impact on selecting the
source. Contracting Officers will use, at minimum, price, or fee as a factor
in all MCCS procurements. Poor past performance ratings may disqualify an
offeror from receiving an award.
a. Other non-cost evaluation factors, such as compliance with
solicitation requirements, technical excellence, management capability or
personnel qualifications and present ability to meet the performance
schedule, may be considered.
b. Offerors should meet all solicitation requirements, such as terms and
conditions, representations and certifications, and technical requirements,
in addition to those identified as evaluation factors or subfactors. Failure
to meet a requirement may result in an offer being ineligible for award.
c. Prior experience may be an additional evaluation factor and is
considered more directed at the specific MCCS procurement than past
performance.
d. Solicitations using complex evaluation techniques, such as best value
or weighted factors, will receive legal review and concurrence prior to
issuance. See reference (w) for further guidance.
11. Solicitation Distribution.
accordance with reference (w).

Solicitation distribution will be made in

12. Solicitation Amendments. The Contracting Officer may make changes to
solicitations. Such changes may include changes in quantity, specifications,
or delivery schedule; correcting defects or ambiguities; or changing the
closing date for receipt of proposals. See reference (w) for further detail
and requirements.
13. Solicitation Protests and Appeals Before Award. MCCS will seek to
resolve solicitation protests and appeals before award in an amicable manner.
14. Two-Step Negotiation. MCCS may use two-step procurement procedures.
See reference (w) for requirements and procedures.
15. Pre-Proposal Conferences. MCCS may use pre-proposal conferences as a
means of briefing prospective offerors after a solicitation has been issued,
but before offers are prepared.
16. Receipt, Opening, and Safeguarding of Proposals. MCCS will safeguard
proposals so that properly submitted proposals are received, maintained, and
used in a manner consistent with the terms of the solicitation and in a
manner conforming to applicable law and regulation. See reference (w) for
further detail and requirements.
17. Late Proposals. MCCS will not solicit or encourage late proposals.
reference (w) for further detail and requirements.

See

18. Cancellation of Solicitations. MCCS may cancel a solicitation at any
time before award when the Contracting Officer determines it is in the best
interest of MCCS.

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19. Evaluation of Proposals. MCCS will evaluate proposals in accordance
with law, regulation, and the terms of the solicitation.
20. Responsiveness. MCCS will treat a proposal as responsive when it
fulfills all substantive requirements set out in the solicitation.
21. Disclosure of Pre-Award Proposal Information. MCCS will not normally
disclose information contained in any proposal until after contract award
except under special circumstances and with the concurrence of MCCS Counsel.
22. Technical and Price Evaluation Panels. MCCS may use such panels to
assist the Contracting Officer in evaluating offeror proposals.
23. Oral Presentations.
written information.

MCCS may use oral presentations to supplement

24. Price/Fee Analysis. MCCS may conduct price/fee analysis to determine
whether a proposed price or fee is fair and reasonable.
25. Conducting Negotiations. MCCS may conduct negotiations in accordance
with the processes set forth in the reference (w).
26. Making the Award. In negotiated procurements, MCCS will award contracts
by having the Contracting Officer sign, date and furnish the contract to the
successful offeror. MCCS may use other contract vehicles to make award.
27. Post-Award Notification to Offerors.
give notice to unsuccessful offerors.

The MCCS Contracting Officer will

28. Debriefings. MCCS may conduct debriefings to offerors.
(w) for further detail and requirements.

See reference

29. Mistakes Alleged or Discovered After Contract Award. MCCS will address
mistakes alleged or discovered after contract award in accordance with
processes set forth in reference (w).
30. Purchasing General. MCCS will make procurements through the use of a
PO, delivery order, Basic Ordering Agreements (BOAs), blanket purchasing
agreements or other documents. See reference (w) for further detail and
requirements.
31. Purchase Card Program Participation.
designated NAF Purchase Card Program.

MCCS will participate in the

32. Purchase Card Use Limitation. MCCS activities may not enter into local
purchase card programs without prior approval of DC M&RA (MR). See reference
(x) for additional guidance.
33. Nonappropriated Fund (NAF) Purchase
Program provides a streamlined method of
supplies and services. DC M&RA (MRB) is
Manager (PCPM) for the MCCS NAF Purchase

Card Program. The NAF Purchase Card
purchasing commercially available
the NAF Purchase Card Program
Card Program.

a. Agency Program Coordinator (APC). RPOs must have Agency Program
Coordinators (APCs) for the Purchase Card Program in accordance with
reference (x).

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b. Delegation of Authority. Cardholders and approving officials will be
appointed in writing. See references (w) and (x) for further detail and
requirements.
34. Debit Card Use. Per reference (m), a Deployment Readiness Coordinator
(DRC) or Uniformed Readiness Coordinator (URC) may be assigned the
responsibility for executing NAF intended to support unit, personal, and
family readiness needs including unit recreational, social, and family
readiness activities. To accomplish this responsibility, the local MCCS and
unit commander may establish a debit card account for use by the DRC/URC
within designated dollar limits. See reference (m) for further guidance.

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Chapter 7
Retail Buying
1.

Retail Buying General

a. The selection of resale items should be comparable to practices and
procedures in the commercial retail trade. Commercial terms and conditions
must be reviewed by MCCS Counsel prior to execution by a Contracting Officer
or Buyer.
b. Consistent with law and regulation, the NAFI stocks items and brands
in high demand by customers. Broad consumer acceptance of an item in the
commercial sector is adequate evidence of customer demand for the item to be
stocked.
c. Merchandise for U.S. resale in MCCS activities will be limited to the
items or categories and cost limitations authorized in the Armed Services
Exchange Policy per references (k) and (l).
2. Purchasing. MCCS may make procurements through the use of a PO, delivery
order, BOA, or similar document.
3.

Item Selection

a. Market research includes but is not limited to, attendance at trade
shows, and vendor product presentations per reference (l).
b. MCCS’ objective is to stock items and brands most in demand by
customers.
c. Products will be evaluated based on selection factors such as
quality, price, consumer trends, customer acceptance, and past sales
experience.
d. Eligible sources may present products for purchase consideration.
Buyers will record visits by vendors and contractors to include a summary of
matters discussed in the interview. Products will be evaluated on a fair and
impartial basis along with all others.
e. Merchandise for U.S. resale in MCCS activities will be limited to the
items or categories and cost limitations authorized in reference (l).
4. Brand-Name Merchandise. Because of the nature
resale items will be purchased on a noncompetitive
sources of brand-name products. Identification of
stock assortment justifies noncompetitive purchase

of the MCCS mission, most
basis from the prime
brand-name items in the
from the prime source.

5. Non-Brand-Name Merchandise. Unless otherwise justified, competitive
procedures will be used when buying non-brand-name items. The resale items
will be standard commercial products readily available in the retail trade.
6. Social Responsibility and Labor Standards. Suppliers and manufacturers
of private label merchandise, or manufacturers of merchandise imported
directly by MCCS or MCCS subcontractors, will comply with Social
Responsibility and Labor Standards requirements; see reference (t).

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Chapter 8
Contract Administration
1. General. Contract administration is the management of a contract from
the time of award through its expiration or termination and final retirement
of records. See reference (a). The purpose of contract administration is to
ensure that the contractor performs according to the contract provisions and
that MCCS receives the quantity and quality of the goods or services for
which it contracted.
2. Designation of Contracting Officer's Representative (COR). An MCCS
Contracting Officer may designate a COR to assist in contract administration
functions. Final responsibility for contract administration rests with the
Contracting Officer.
3. Equal Employment Opportunity and Minimum Wage Notices. The Contracting
Officer will provide Equal Employment Opportunity and Minimum Wage notices to
the contractor at the time of award; see reference (u).
4. Contract Modifications. Contracts may be modified in accordance with
procedures in reference (w).
5. Option Clauses. An option clause may allow MCCS to purchase additional
supplies or services, or extend the period of the contract, if the action is
taken within the time specified in the contract’s option clause and when
determined to be in the best interest of the MCCS.
6. Change Orders. Change orders should not be used if a mutually agreeable
modification can be negotiated. The Changes Clause of the contract permits
the Contracting Officer to make unilateral changes in those areas identified
in the clause and provides an equitable adjustment to the contractor if the
change causes an increase or decrease in the cost of the work or in the time
required for performance.
7. Constructive Changes. In general, constructive changes are not
recognized as part of the Changes Clause. Constructive changes are defined
as any conduct by a Contracting Officer or other authorized representative,
other than a formal change order or supplemental agreement, which has the
effect of requiring the contractor to perform new work or different work from
that required by the contract. Such changes entitle the contractor to relief
under the Changes Clause and will be avoided.
8. Novation Agreement. A Novation Agreement is used to transfer the
operation or performance of a contract to another party, when requested by a
contractor, and when in the best interest of MCCS. In the novation, the NAF
Contracting Officer agrees to recognize the third party as a successor in
interest to the MCCS contract. Coordinate all novations with MCCS Counsel.
See reference (w) for additional information.
9. Contract Protests, Claims, Disputes, and Appeals. It is MCCS policy to
review and resolve contract protests, claims, disputes, and appeals that are
brought forth in a timely manner in accordance with reference (w).
10. Contract Termination. Contracting Officers will terminate contracts in
accordance with contract terms, law, and regulation.

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Chapter 9
Construction Contracting and Architect/Engineer (A/E)
1. Policy Overview. MCCS must engage in construction contracting to meet
customer requirements. MCCS personnel must follow the procedures and
requirements of reference (w).
2. Background. NAF construction projects are critical as they directly
affect the quality of life of Marines and their families. DC M&RA (MR)
issues NAF construction and A/E warrants as necessary to support the Marine
Corps NAF Construction Program.
3. Warrants. MCCS personnel requesting NAF construction/A/E warrants must
have completed the applicable training and have the requisite contracting
experience to be eligible. The request for a construction/A/E warrant will
be processed through DC M&RA (MRB). Warrants may be issued at less than the
requested amount if the contract volume or dollar value of contract actions
does not justify the full requested warrant authority.
a. MCCS NAF construction and A/E requirements above the $2,000
construction acquisition threshold may be accomplished only by an MCCS
Contracting Officer appointed with construction warrant authority.
b. If a delegation of construction contracting/A/E authority has not
been issued, MCCS requirements exceeding the construction acquisition
threshold will be forwarded to DC M&RA (MRB) for procurement action.
c. Contracting Officers with construction/A/E warrants are limited to
the threshold amount specified on the warrant for each individual contract,
including all contract modifications. For example, a Contracting Officer
with a $100,000 warrant who has awarded a contract for $90,000 may issue a
modification or modifications, but the total cannot be more than $10,000.
The Contracting Officer has no contracting authority beyond that amount.
Contracts and/or modifications which exceed the Contracting Officer's
authority must be forwarded to DC M&RA (MRB) for execution.
4. Architect/Engineer (A/E). Architect/Engineer (A/E) contracting will use
Qualifications Based Selection (QBS). Additional details are in reference
(w).

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Appendix A
Glossary of Acronyms and Abbreviations
A/E
AAFES
AFNAFPO
AC/S
APC
APF
Army MWR
ASBCA
BOA
BPA
CBO
CDRM
CGES
CNIC
COR
DC M&RA
DC M&RA (MR)
DC M&RA (MRB)
DC M&RA (MRM)
DDA
DoD
DoD FMR
DoDI
DON
DON/AA
DRC
DRMD
F&FR
FAR
FMO
FPI
GSA
HNA
IDDQ
IDIQ
IFB
IGE
ISC
IT
LPTA
M&RA
MAS
MCCS
MCO
MCX
MOA
MOU
MR

Architect/Engineer
Army and Air Force Exchange Services
Air Force Nonappropriated Fund Purchasing Office
Assistant Chief of Staff
Agency Program Coordinator
Appropriated Fund
Army Family and Morale, Welfare and Recreation
Armed Services Board of Contract Appeals
Basic Ordering Agreement
Blanket Purchase Agreement
Central Buying Office
Command Designated Records Manager
Coast Guard Exchange System
Commander, Navy Installations Command
Contracting Officer’s Representative
Deputy Commandant for Manpower and Reserve Affairs
Business and Support Services Division
Nonappropriated Fund Procurement, Business and Support
Services Division
Business Operations Directorate, Retail Merchandising
Branch
Direct Delivery Agreement
Department of Defense
Department of Defense Financial Management Regulation
Department of Defense Instruction
Department of the Navy
Department of the Navy/Assistant for Administration
Deployment Readiness Coordinator
Directives and Records Management Division
Fleet and Family Readiness
Federal Acquisition Regulation
Forms Management Officer
Federal Prison Industries
General Services Administration
Host Nation Agreement
Indefinite Delivery, Definite Quantity
Indefinite Delivery, Indefinite Quantity
Invitation for Bid
Independent Government Estimate
Individual Service Contract
Information Technology
Lowest Price Technically Acceptable
Manpower and Reserve Affairs
Multiple Award Schedule
Marine Corps Community Services
Marine Corps Order
Marine Corps Exchange
Memorandum of Agreement
Memorandum of Understanding
Business and Support Services Division

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MWR
NAF
NAFI
NARA
NEXCOM
PCPM
PII
PIIN
PO
PPV
QBS
RFP
RFQ
ROICC
SECNAVINST
SOFA
SOP
U.S.
URC
USMC

Morale, Welfare and Recreation
Nonappropriated Fund
Nonappropriated Fund Instrumentality
National Archives and Records Administration
Navy Exchange Command
Purchase Card Program Manager
Personally Identifiable Information
Procurement Instrument Identification Numbering
Purchase Order
Public-Private Venture
Qualifications Based Selection
Request for Proposal
Request for Quote
Resident Officer in Charge of Construction
Secretary of the Navy Instruction
Status of Forces Agreement
Standard Operating Procedures
United States
Uniformed Readiness Coordinator
United States Marine Corps

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Appendix B
Glossary of Terms and Definitions
NOTE: When a solicitation provision or contract clause uses a word or term
that is not defined by the provision or clause or is not defined below, then,
if there is a Federal Acquisition Regulation (FAR) definition, the definition
provided in the FAR must be used. See reference (q) at
https://www.acquisition.gov/far/2.101.
1. Agency Contract. A contract where MCCS acts for or represents the
contractor in a transaction with the customer. Refer to Chapter 5 of this
Order.
2. Basic Ordering Agreement (BOA). A written instrument of understanding
negotiated between the MCCS and contractor that contains terms and clauses
applying to future contracts between the parties, a description of items or
services, and methods for pricing, issuing, and delivering future orders
against the agreement. The BOA itself is not a contract.
3. Best Value. The expected outcome of a procurement that, in the NAFI’s
estimation, provides the greatest overall benefit in response to the
requirement.
4. Best Value Procurement. A negotiated procurement using one or a
combination of source selection approaches with a “best value continuum”
where the relative importance of cost or price may vary. Two specific
techniques are (1) Tradeoff Process and (2) LPTA. The term “Best Value” was
previously used synonymously with Tradeoff Process.
5. Tradeoff Process. A source selection process that is appropriate when it
is in the interest of the MCCS to consider award to other than the lowest
price offeror or the highest technically rated offeror. All evaluation
factors and significant sub-factors that will affect contract award and their
relative importance must be clearly stated in the solicitation, and the
solicitation must state whether all evaluation factors other than cost or
price, when combined, are significantly more important than, approximately
equal to, or significantly less important than cost or price. This process
permits tradeoffs among cost or price and technical (non-cost) factors and
allows the MCCS to accept other than the lowest priced proposal. The
perceived benefits of the higher priced proposal must merit the additional
cost, and the rationale for tradeoffs must be documented in the Justification
for Award Memorandum.
6. Lowest Price Technically Acceptable (LPTA). A source selection process
that is appropriate when best value is expected to result from selection of
the technically acceptable proposal with the lowest evaluated price. The
evaluation factors and significant sub-factors that establish the
requirements of acceptability will be stated in the solicitation.
Solicitations will specify that award will be made on the basis of the lowest
evaluated price of proposals meeting or exceeding the acceptability standards
for technical (non-cost) factors. Past performance may be included as an
evaluation factor. In making the award decision, tradeoffs are not
permitted; proposals are evaluated for acceptability but not ranked using the
non-cost/price factors.

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7. Blanket Purchase Agreement (BPA). A bilateral agreement establishing
terms and conditions that apply to future orders placed against the BPA. The
BPA may be priced or unpriced and may either spell out specific items to be
purchased or identify broad categories of items or services. Billing is
usually monthly versus after each call. The BPA is not a contract and does
not obligate the MCCS to purchase. BPAs are used when there are regular,
recurring actions with a vendor. This reduces the amount of paperwork, and
thereby costs, to the Procurement Office. Calls against BPAs exceeding the
competition threshold that were not competed at BPA award, must be competed,
or have justification for non-competitive procedures.
8. Competition Threshold. The dollar amount that requires MCCS NAF
competition currently set out in reference (w).
9. Concession Contract. Grants the concessionaire the right to sell a
particular type of item or to provide a specific service in a designated
location for a specific period of time.
10. Consignment. Contractor retains title to purchased merchandise until it
is sold. Title first passes to MCCS and then to the customer at the time of
sale. MCCS pays the contractor for the quantities sold. Applicable to
resale contracts.
11. Construction Contract. A contract with a commercial concern for the
design, construction, or renovation of facilities. MCCS NAF construction
requirements above $2,000 may be accomplished by the MCCS Contracting Officer
only as appointed with construction warrant authority.
12. Delivery Order. An order for items placed against an established
contract (e.g., GSA contract, AFNAFPO contract) or with a government source.
When placing a delivery order against an existing contract, reference that
contract number on the order. The terms and conditions/clauses of the
established contract are applicable to the delivery order.
13. Direct Delivery Agreement (DDA). A bilateral agreement that establishes
pricing for a designated period of time on specific products and services to
be delivered according to a delivery frequency that may be designated in the
agreement. No specific quantity or dollar limits are established in the
agreement as the vendor will automatically send their delivery truck to an
activity to replenish product. Contractor invoices monthly. Primarily
applies to consumable retail or resale merchandise.
14. Guaranteed Sales. MCCS receives the merchandise into inventory and the
contractor agrees to accept returns for credit all unsold quantities after a
set period. Applicable to resale contracts.
15. Imprest Fund. Also called petty cash fund. A cash fund of a fixed
amount, controlled by a designated custodian, used as needed to make payments
in cash for relatively small amounts.
16. Indefinite Delivery Contracts. Contracts that allow MCCS stock to be
maintained at minimum levels with direct shipments upon placement of delivery
orders. Three different types: definite quantity, indefinite quantity, and
requirements.

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17. Indefinite Delivery, Definite Quantity (IDDQ). A contract that provides
for delivery of a definite quantity for a fixed period of time, with
established prices, and with deliveries or performance upon issuance of an
order.
18. Indefinite Delivery, Indefinite Quantity (IDIQ). A contract that
provides for an indefinite quantity for a fixed period of time, with fixed
prices, and with deliveries or performance upon placement of orders against
the contract. A minimum quantity is usually specified which obligates the
MCCS.
19. Requirements. A contract where MCCS promises to purchase all
requirements for a specified supply or service from the designated contractor
at established prices, for a specified period of time, with deliveries or
performance upon issuance of orders against the contract.
20. Individual Service Contract (ISC). A non-personal services contract
where payment is made on a per-job or per-student/patron basis. Individual
Service Contracts (ISCs) are generally used for aerobic or other types of
instruction. Term of the contact should not exceed three years.
21. Memorandum of Agreement (MOA). Memorandums that define general areas of
conditional agreement between government agencies or between NAFI activities
where what one party does depend on what the other party does (e.g., one
party agrees to provide support if the other party provides the material or
funds). MOAs should define the support, basis for reimbursement, billing and
payment process, and other terms and conditions of the agreement.
22. Memorandum of Understanding (MOU). Memorandums that define general
areas of understanding between government agencies or between NAFI activities
that explain what each party plans to do; however, what each party does is
not dependent on what the other party does (e.g., does not require
reimbursement or other support).
23. Micro-Purchase Threshold. For NAF procurement administrative purposes,
the dollar amount threshold defined in reference (w) which is currently
$10,000.
24. Military Morale, Welfare and Recreation (MWR) Programs. Military
programs, as defined per reference (v), located on DoD installations or on
property controlled (by lease or other means) by a military department or
furnished by a DoD contractor, that provide for the mission sustainment,
community support, and revenue-generating programs for authorized personnel.
25. Nonappropriated Fund (NAF) Purchase Card. A purchase card issued to
authorized personnel to use to acquire items and services within stated
limits.
26. Options. A unilateral right by which, for a specified period of time,
the Contracting Officer may elect to purchase additional items or services or
extend the term of the contract. Options must not be used to circumvent the
competition requirement.
27. Purchase Order (PO). An offer by the government to purchase, which, if
accepted by the contractor, becomes a contract. Normally unilateral but can
also be bilateral if required. Clauses are attached to, or printed on
reverse of, order.
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28. Request for Proposal (RFP). A formal solicitation issued when there is
an intention to award and the need dictates the use of detailed
specifications or statement of work, clauses, and evaluation criteria. A
proposal in response to an RFP can be accepted by MCCS to form a contract.
29. Request for Quote (RFQ). A simplified way to obtain competition. Can
be a form, letter, issued by mail, facsimile or e-mail, or obtained verbally.
The RFQ is not an offer to purchase and does not bind the party making the
quote to perform.
30. Requesting Activity. The activity, office, branch, or division that has
a need for supplies or services. Other terms for requesting activity:
requesting branch, requestor, requiring activity, requisitioner, program
office, program point of contact, etc.
31. Revenue-Generating Contract. A contract where the contractor pays a fee
(dollar amount or percentage of sales) to MCCS.
32. Service Contract. A non-personal contract that engages the time and
effort of a contractor to perform an identifiable task rather than to furnish
an end item of supply. Used to obtain services from either professional or
nonprofessional personnel on either an individual or an organizational basis.
33. Short Term Commodity Contract. A noncompetitive concession contract for
the display and sale of merchandise from temporarily assigned space.
34. Simplified Acquisition Threshold. For NAF procurement administrative
purposes, the dollar amount threshold defined per reference (w) which is
currently $250,000.
35. Single Source Procurement. Procurement when multiple sources could
provide the goods or services but the requiring activity has a justified need
for obtaining the goods or services from a particular single source.
36. Sole Source Procurement. Procurement when goods or services are
available from only one sole source.
37. Task Order. An order for services placed against an established
contract (e.g., GSA contract, AFNAFPO contract) or with a government or NAFI
source. The terms and conditions/clauses of the established contract are
applicable to the task order.
38. Unpriced Purchase Order (PO). An order where price is not established
at time of award. Used when not practical to obtain pricing in advance
(e.g., repairs). A monetary limit is used which cannot be exceeded without
approval. The monetary limit is an obligation subject to readjustment when
price is established.
39. Vending Contract. Revenue-generating contracts where the contractor
stocks the items to be vended and MCCS may rent or own the machines.

B-4