Government Contracting - DFARS Part 237 - Service Contracting - Win Federal Contracts

DFARS - 2021
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About Our Speaker
Adam Munitz
FH+H
amunitz@fhhfirm.com
(703) 590-1234

DFARS Part #237
Service Contracting
Link:
https://www.acquisition.gov/dfars/part-237-service-
contracting#DFARS-237.102-70
Wednesday, 01 September 2021

DFARS Part #237
DFARS Part 237 describes several types of services contracts, each of which has certain specific requirements, acquisition
processes, and unique structures. This presentation will provide an overview of the most common/notable subsections of
Part 237, including:
237.102-74-79 – General Guidelines for Service Contracting
237.102-70 & 109 – Quasi-Military Armed Forces
237.102-72 – Management Services
237.104 – Personal Services Contracts
237.107 – Services of Quasi-Military Armed Forces
237.170 -- Approval of Contracts and Task Orders for Services
237.171 & 173 – Service Contracts Involving Detainees
237-270 – Audit Services
237.7 – Mortuary Services
237.71 – Laundry Services
237.72 – Education Services
237.73 – Services of Students at Research and Development Laboratories
237.76 – Continuation of Essential Contractor Services

DFARS Part #237
Subparts 102-74-78 actually do not contain notable content of their
own. Instead, these sections cross reference other important
information contained in DFARS Procedures, Guidance and
Information (PGI).
For example, Subpart 102-74, which covers Taxonomy for the
Acquisition of Services, references PGI 237.102-74, which in turn
references a DOD memorandum on different categories of services:
• DoD has 9 Services Portfolio Groups made up of 40 Services
Portfolios.
• DoD organizes its spending in this way to better facilitate
collaboration with the acquisition workforce and customer
organizations. These groups reflect DoD’s spending behavior.
• Find more information here: USA004219-12-DPAP.pdf (osd.mil)

DFARS Part #237
Again, the DFARS PGIs referenced in these sections are useful tools and reference points because they better
prepare contractors to make more compelling and successful bids during the acquisition process.
Subparts 102-75: Defense Acquisition Guidebook
More specific direction on the process for successfully acquiring services can be found in Chapter 10 of the Defense
Acquisition Guidebook. This information is geared towards government contracting officers, but gives the private
sector valuable insight into internal DoD processes, particularly roles and responsibilities of DoD personnel, program
requirements, and Quality Assurance Surveillance Plans (QASPs). The chapter can be found here: DAG-CH-10-
Acquisition-of-Services.pdf (dau.edu).

DFARS Part #237
Section 102-76: Review Criteria for the Acquisition of Services
• One of the most important items for a contractor to know is how both acquisition materials and contract performance will
be evaluated.
• DoD has published a matrix of pre- and post-award review criteria (displayed on the following two slides) at Subpart 102-
76.
• Private contractors can look to these matrices for a greater understanding of the acquisition process and what specific
factors are considered (as well as when each specific factor is evaluated).

DFARS Part #237
Subparts 102-77: Acquisition Requirements Roadmap Tool
• DoD also hosts the Acquisition Requirements Roadmap Tool (ARTT) that provides draft templates for the strategic
elements of acquisition documents needed for performance-based service procurements (i.e., the performance work
statement, quality assurance surveillance plan, performance requirements summary).
• While government procurement offices can of course modify these templates, the templates serve as helpful
baselines.
• ARTT can be a particularly useful tool for new contractors that are unfamiliar with the requirements of performance-
based services contracts.
• The tool is freely accessible/downloadable, and is available at : ARRT Home (dau.edu)

DFARS Part #237
Subpart 102-78: Market Research Report Guide for Improving Tradecraft in Services Acquisition
This subsection outlines a market research report guide to be used by DoD to improve the tradecraft in services acquisition
by sharing and collecting market research to be used across the Department in the acquisition planning process.
• The guide emphasizes looking to trade journals, shows, conferences, and symposia as well as knowledgeable government
and industry professionals as techniques for conducting market research, demonstrating the importance of private sector
participation in these forums.
• The guide can also be a source of basic but useful background information on a variety of topics relevant to defense
contractors, for example, international contracting, pricing and financing, contract policies, and DoD contracting programs.

DFARS Part #237
Subpart 102-79: Private Sector Notification Requirements in Support of In-Sourcing Actions
• If the government decides to in-source a service, the contracting officer must provide a written notification describing
why the service is now being in-sourced to affected contractors within 20 days of the decision.
• The notification should include a summary of the final determination as to why the service is being in-sourced.
• No formal hiring or contract-related actions may be initiated prior to such notification, except for preliminary internal
actions associated with hiring or contract modification.
• Note for Contractors: Knowing the procedural requirements for the Government to properly in-source a service can
be a particularly valuable tool for contractors pursuing or performing work closely associated with inherently
governmental functions.

DFARS Part #237
Subpart 170: Approval of Contracts and Task Orders for Services
Key Concept: This subpart sets out certain approval requirements for services acquired for DoD, regardless of whether the
services are acquired through a DoD contract or task order or a contract or task order awarded by another agency.
• For all acquisitions of non-performance-based services:
• If the contract price is at or below $100 million, approval of an official designated by the department or agency
must be obtained.
• If the contract price exceeds $100 million, approval of the senior procurement official must be obtained.
• The need to obtain specific approvals could impact the overall types of contracts procurement officials make
available.

DFARS Part #237
Subpart 172: Service Contract Surveillance
• QASPs must be prepared by the government contracting authority during contract bidding.
• A QASP is a document that specifies how the government will verify that quality services are being received under the
contract, and will differ depending on the specific risks inherent to the type of contract and services to be performed.
• For services contracts, QASPs will include verification procedures (such as validation of contractor personnel
education and work experience) to ensure government contractors meet qualification requirements identified for
the labor categories specified in the task order and contract.
• Verification ensures the Government receives adequate services.
• The DFARs requirements also refer back to the related FAR provisions (See, FAR subpart 46.4).
• Note for Government contractors: Private contractors should be prepared to provide data on their quality control
measures.

DFARS Part #237
Subpart 102-70: Prohibition on Contracting for Firefighting or Security-Guard Functions & Subpart 109: Services of Quasi-
Military Armed Forces
DoD cannot enter contracts for firefighting or a military installation/facility security-guard functions unless the meeting the
needs of the installation or facility would require members of the armed forces to be taken away from other duties related to
their deployment. All performance under these contracts must be effectively supervised, reviewed, and evaluated to ensure
that security of the installation or facility is not impacted.
Contractor Note: This does not apply to any contracts that were entered into for increased security post 9/11.
Subpart 102-71: Limitation on Service Contracts for Military Flight Simulators
DoD cannot enter into a service contract to acquire a military flight simulator unless it is determined to be in the national
interest through a waiver to the Secretary of Defense and the congressional defense committees.
Contractor Note: This waiver would need to be obtained prior to releasing the solicitation, but is important for related
industry to keep in mind as it could impact the availability of future work and continuity of work flow.

DFARS Part #237
Subpart 102-72 – Management Services
DoD may only award a contract to perform acquisition support functions for the development or production of a major
system if:
• The contract prohibits the contractor from performing inherently governmental functions, and
• The DoD organization responsible for the development or production of the major system ensures federal
employees are responsible for determining:
• 1) courses of action to be taken in the best interest of the Government, and
• 2) best technical performance for the warfighter.
Contractor Note: This DFARS clause also prohibits the prime contractor from advising or recommending the award of a
contract or subcontract for the development or production of the major system to an entity owned in whole or in part by the
prime contractor.

DFARS Part #237
Subpart 104 – Personal Service Contracts & Subpart 106 – Funding and Term of Service Contracts
Personal service contracts for experts or consultants will only be authorized when the position supports the national defense,
but the need cannot be met by a current DoD employee. All personal service contracts must last no longer than a year and
may be either temporary or intermittent.

DFARS Part #237
Subpart 171: Training for Contractor Personnel Interacting with Detainees & Subpart 173: Prohibition on Interrogation of
Detainees by Contractor Personnel
• Any DoD contract that requires a contractor to interact with detainees must receive government required training on
relevant US obligations and laws and provide receipt of such training.
• Additionally, no contractor personnel may interrogate a detainee, but may be used in a support role as long as an
appropriately qualified and trained DoD employee can oversee the actions.
• Contractors are also expected to provide the same training to its own personnel when performing services at a facility
holding detainees and when the contractor is expected to interact with trainees, or when performing services outside the
U.S. in contingency operations, peace operations, or other military operations/exercises (See, DFARS Subpart 252.237-
7019).

DFARS Part #237
The following subsections detail some of the types of specialized service contracts that DoD enters into. Each of these types
of services require that government contracting authorities include specific DFARS contract clauses into any resulting
contracts, which private sector contractors can look out during both the acquisition and performance stages:
• Subpart 237.270 – Acquisition of Audit Services: 252.237-7000 (Notice of Special Standards of Responsibility) and 252.237-7001
(Compliance with Audit Standards).
• Subpart 237.6 – Mortuary Services: 252.237-7003 (Requirements); 252.237-7004 (Area of Performance); 252.237-
7005 (Performance and Delivery); 252.237-7006 (Subcontracting); 252.237-7007 (Termination for Default); 252.237-
7008 (Group Interment); 252.237-7009 (Permits); and 252.237-7011 (Preparation History).
• Subpart 237.71 – Laundry and Dry Cleaning Services: 252.237-7012 (Instruction to Offerors, Count-of-Articles);
252.237-7013 (Instruction to Offerors - Bulk Weight); 252.237-7014 (Loss or Damage, Count-of-Articles); 252.237-
7015 (Loss or Damage, Weight of Articles); 252.237-7017 (Individual Laundry); and 252.237-7018 (Special Definitions
of Government Property).
• Section 175 – Training that Uses Live Vertebrae Animals: A clause the same or substantially the same as
252.235.7002 (Animal Welfare).

DFARS Part #237
Subpart 237.72: Educational Service Agreements
An educational service agreement is an ordering agreement under which the Department pays normal fees and
tuition for educational services and enrollment is done under the institution’s normal rules. A template for these
agreements can be found at DFARS 237.7204, which can serve as a useful baseline for contract terms.
Subpart 237.73: Services of Students at Research and Development Laboratories
Generally, agencies will acquire these services through a non-profit institution employing the student, but when it is
in the best interest of the government, contracts made also be made directly with the students.
• Notably, contracts made directly with students are considered nonpersonal service contracts but must nevertheless
include the clauses at FAR 52.232-3, Payments Under Personal Services Contracts, and FAR 52.249-12, Termination
(Personal Services).

DFARS Part #237
Subpart 237.76: Continuation of Essential Contractor Services
• Contractors facilitating essential contractor services should be prepared to continue these services during times of crisis.
• These contractors must also provide a written plan as to how services will be continued during crisis that will be
incorporated into the final contract.
• Contractors must work with the government contracting officer to assess the sufficiency and eventually approve this
plan.
• Note for Contractors: Because the terms of the plan will be incorporated into the final contract, it is particularly
important to ensure the plan contains a realistic and achievable approach to services.

THANK YOU to Speaker
Adam Munitz
FH+H
amunitz@fhhfirm.com
(703) 590-1234

Thank You For Attending!
DFARS - 2021
Defense Federal Acquisition Regulation Supplement
Complimentary Webinar Series

Government Contracting - DFARS Part 237 - Service Contracting - Win Federal Contracts

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