Government Contracting - DFARS Part 251 - Use of Government Sources by Contractors - Win Federal Contracts

DFARS - 2021
Defense
Federal Acquisition Regulations
Complimentary Webinar Series
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com

DFARS – 2021 - Defense Federal Acquisition Regulations
About Us
Professional services for federal contractors
Market Analysis
Proposal Writing / Pricing
Contract Compliance & Administration

About The Series
Every Wednesday at 12pm eastern
Recorded and posted on our website and YouTube Channel
PPTs are on SlideShare.net
Speakers are attorneys, consultants, subject matter experts in defense contracting

Thank You To Our Sponsors

 Full training calendar: virginiaptac.org & useful links
 Register for free counseling: https://virginiaptac.org/services/counseling/
 Your “one stop” shop for Government Contracting assistance
 Reach us at ptac@gmu.edu or 703-277-7750
This procurement technical assistance center is funded in part through a
cooperative agreement with the Defense Logistics Agency.

C3 is a full-service IT provider, helping DoD
contractors achieve CMMC, DFARS and NIST 800-
171 compliance through cloud-based solutions
including Microsoft 365 GCC and GCC High.
No Matter Where You Are on Your
Journey to Compliance,
C3 Integrated Solutions Can Help
www.c3isit.com
Contact:
info@c3isit.com
(571) 384-7950

User Friendly and Affordable
Automates Contract Invoicing - Improves
Cashflow
Cloud-Based, Real-Time, Secure Data
Access
DCAA Compliant Accounting
 Project/ Cost Accounting
 Integrated Time & Expense
 Contract Management
 Budgeting and Forecasting
 Purchasing & Inventory
 Incurred Cost Submission
 Project Management
 Customer Relationship
Management (CRM)
 Capture Management
A Modern ERP for Government Contractors
POC: Anita Bhattacharjee
(267) 685-3185
anitab@wrkplan.com

YOUR SOURCE
FOR
SUCCESSFU
L
To Learn More, Please Visit
WWW.FBCINC.COM
david@fbcinc.com
240-841-2210
Face-To-Face & Virtual Events | Content Marketing | Exposure & Engagement | Government Agency Based Marketing (ABM) | Branding
Lead Generation / Lead Nurturing | Top of Funnel, MQL & SQL Development | Agency Driven | Positioning | 150+ Events Per Year
"68% OF FEDERAL GOVERNMENT PERSONNEL ATTEND EVENTS"
Source: Content Marketing Review 2021,
May 20, 2021, Market Connections, Inc.

Is your business looking to get in front of
government decision makers?
With your free GovWhitePapers
membership, you can post your
organization's content to instantly expand
your reach to our community of
government and military members.
Sign up to start posting for free today!
govwhitepapers.com
POC: Donna Munday
donna.munday@govevents.com

Eric Clark
eclark@SWICKtech.com
(414) 257-9266
SWICKtech.com
SWICKtech provides risk assessment and IT compliance solutions to help
regulated businesses deploy effective controls for mitigation. The Cybersecurity
Maturity Model Certification (CMMC) program serves as a method of verifying
appropriate levels of cybersecurity controls. These controls must meet the
specific standards in place to protect controlled, unclassified information (CUI),
and Federal Contract Information (FCI), that may be held on the DoD’s industry
partners' networks.
Our team of senior industry experts are early adopters of the CMMC program.
SWICKtech is a Registered Provider Organization (RPO) and has 2 of its own
Registered Practitioners (RP) designated by the CMMC Accreditation Body.

Ocean 5 is an award-winning Growth Agency
providing marketing plans, strategies, and
programs that drive revenue and growth.
www.Ocean5Strategies.com
• Websites / Search Engine Optimization (SEO)
• GovCon Messaging and Content
• Full Marketing Services • Strategic Planning
POC: Kris Brinker | kbrinker@Ocean5Strategies.com
82% of government decision-makers
rated contractor websites and search engine results as
their top-rated sources for research.
Will your company lead,
follow, or lag behind?
bit.ly/web-eval-js
Free Website Evaluation

About Our Speaker
Wojciech Kornacki
Watson & Associates, LLC
kornackiw@theodorewatson.com
540-270-3041

DFARs Part #251
Use of Government Sources by Contractors
Wednesday, 17 November 2021

DFARs Part #251
51.101 Policy.
(a) If it is in the Government’s interest, and if supplies or services required in the performance of a
Government contract are available from Government supply sources, contracting officers may authorize
contractors to use these sources in performing-
(1) Government cost-reimbursement contracts;
(2) Other types of negotiated contracts when the agency determines that a substantial dollar portion of
the contractor’s contracts are of a Government cost-reimbursement nature; or

DFARs Part #251
16.301-1 Description.
Cost-reimbursement types of contracts provide for payment of allowable incurred costs, to the extent prescribed
in the contract. These contracts establish an estimate of total cost for the purpose of obligating funds and
establishing a ceiling that the contractor may not exceed (except at its own risk) without the approval of the
contracting officer.

DFARs Part #251
SUBPART 251.1 —CONTRACTOR USE OF GOVERNMENT SUPPLY SOURCES
251.101 Policy.
(a)(1) Notwithstanding the restriction at FAR 51.101(a)(1), contracting officers may authorize contractors to use
Defense Logistics Agency Energy as a source of fuel in performance of other than cost-reimbursement contracts,
when the fuel is funded by the Defense Working Capital Fund. When providing this authorization to contractors,
follow the procedures at PGI 251.101 Policy.

DFARs Part #251
PGI 251.101 Policy.
(a)(1) When authorizing contractors to use Defense Logistics Agency (DLA) Energy as a source of fuel in
performance of other than cost-reimbursement contracts, contracting officers shall—
(i) Comply with the requirements of FAR 51.101 and DFARS 251.102, including the execution of a letter of
authorization;
(ii) Include FAR clause 52.251-1, Government Supply Sources, and DFARS clause 252.251-7000, Ordering From
Government Supply Sources, in the contract;
(iii) Obtain a current DLA Energy Fuel Purchase Authorization (FPA) from DLA Energy by emailing
dlaenergyfpa@dla.mil;

DFARs Part #251
PGI 251.101 Policy.
…
(iv) Email to DLA Energy, at dlaenergyfpa@dla.mil, a copy of the—
(A) Completed FPA;
(B) Letter of authorization from the contracting officer; and
(C) Documentation showing the inclusion of FAR clause 52.251-1 and DFARS clause 252.251-7000 in the
underlying contract.
(2) Upon receipt of the documentation in paragraph (a)(1)(iv)(A)-(C) of this section, DLA Energy will work with all
parties to review the FPA for accuracy and completion. If approved, DLA Energy will assign a Department of
Defense Activity Address Code for the fuel sales.

DFARs Part #251
52.251-1 Government Supply Sources.
As prescribed in 51.107 , insert the following clause:
Government Supply Sources (Apr 2012)
The Contracting Officer may issue the Contractor an authorization to use Government supply sources in the
performance of this contract. Title to all property acquired by the Contractor under such an authorization shall
vest in the Government unless otherwise specified in the contract. The provisions of the clause at FAR 52.245-1,
Government Property, apply to all property acquired under such authorization

DFARs Part #251
FAR 52.245-1
…
(b) Property management.
(1) The Contractor shall have a system of internal controls to manage (control, use, preserve, protect, repair, and
maintain) Government property in its possession. The system shall be adequate to satisfy the requirements of
this clause. In doing so, the Contractor shall initiate and maintain the processes, systems, procedures, records,
and methodologies necessary for effective and efficient control of Government property. The Contractor shall
disclose any significant changes to its property management system to the Property Administrator prior to
implementation of the changes. The Contractor may employ customary commercial practices, voluntary
consensus standards, or industry-leading practices and standards that provide effective and efficient
Government property management that are necessary and appropriate for the performance of this contract
(except where inconsistent with law or regulation).

DFARs Part #251
FAR 52.245-1
…
(c) Use of Government property.
(1) The Contractor shall use Government property, either furnished or acquired under this contract, only for
performing this contract, unless otherwise provided for in this contract or approved by the Contracting Officer.
(2) Modifications or alterations of Government property are prohibited, unless they are-
(i) Reasonable and necessary due to the scope of work under this contract or its terms and conditions;
(ii) Required for normal maintenance; or
(iii) Otherwise authorized by the Contracting Officer.
(3) The Contractor shall not cannibalize Government property unless otherwise provided for in this
contract or approved by the Contracting Officer.

DFARs Part #251
FAR 52.245-1
…
(e) Title to Government property.
(1) All Government-furnished property and all property acquired by the Contractor, title to which vests in the
Government under this paragraph (collectively referred to as "Government property"), is subject to the
provisions of this clause. The Government shall retain title to all Government-furnished property. Title to
Government property shall not be affected by its incorporation into or attachment to any property not owned by
the Government, nor shall Government property become a fixture or lose its identity as personal property by
being attached to any real property.

DFARs Part #251
FAR 52.245-1
…
(h) Contractor Liability for Government Property.
(1) Unless otherwise provided for in the contract, the Contractor shall not be liable for loss of Government
property furnished or acquired under this contract, except when any one of the following applies-
(i) The risk is covered by insurance or the Contractor is otherwise reimbursed (to the extent of such
insurance or reimbursement). The allowability of insurance costs shall be determined in accordance with 31.205-
19.
(ii) Loss of Government property that is the result of willful misconduct or lack of good faith on the part
of the Contractor’s managerial personnel.
(iii) The Contracting Officer has, in writing, revoked the Government’s assumption of risk for loss of
Government property due to a determination under paragraph (g) of this clause that the Contractor’s property
management practices are inadequate …

DFARs Part #251
FAR 52.245-1
…
(i) Equitable adjustment. Equitable adjustments under this clause shall be made in accordance with the
procedures of the Changes clause. However, the Government shall not be liable for breach of contract for the
following:
(1) Any delay in delivery of Government-furnished property.
(2) Delivery of Government-furnished property in a condition not suitable for its intended use.
(3) An increase, decrease, or substitution of Government-furnished property.
(4) Failure to repair or replace Government property for which the Government is responsible.

DFARs Part #251
251.102 Authorization to use Government supply sources.
(e) When authorizing contractor use of Government supply sources, follow the procedures at PGI 251.102 .
(3)(ii) The contracting officer may also authorize the contractor to use the DD Form 1155 when requisitioning
from the Department of Veterans Affairs.
(f) The authorizing agency is also responsible for promptly considering requests of the DoD supply source for
authority to refuse to honor requisitions from a contractor that is indebted to DoD and has failed to pay proper
invoices in a timely manner.

DFARs Part #251
PGI 251.102 Authorization to use Government supply sources.
Use a format substantially the same as the following when authorizing contractor use of Government Supply
Sources. Specify the terms of the purchase, including contractor acceptance of any Government materiel,
payment terms, and the addresses required by paragraph (e) of the clause at 252.251-7000, Ordering from
Government Supply Sources.
AUTHORIZATION TO PURCHASE FROM GOVERNMENT SUPPLY SOURCES
(SAMPLE FORMAT)
SUBJECT: Authorization to Purchase from Government Supply Sources
_________________________________________________(Contractor's Name)
_________________________________________________(Contractor's Address)
_________________________________________________(CAGE Code)

DFARs Part #251

DFARs Part #251
251.107 Contract clause.
Use the clause at 252.251-7000 , Ordering From Government Supply Sources, in solicitations and
contracts which include the clause at FAR 52.251-1, Government Supply Sources.
See DoD Class Deviation 2013-O0012, Authorization for Contractors to Use Government Supply Sources
in Support of Operation Enduring Freedom, issued on April 24, 2013. This deviation encourages
contracting officers to authorize contractors (including contractors with fixed-price contracts) to use
appropriate Government supply sources, including DLA (for construction materials) and GSA Central
Asia and South Caucasus Supply Catalog under the GSA Global Supply Program, in performance of
contracts in support of Operation Enduring Freedom. This constitutes a deviation from the policy at FAR
51.101. This class deviation remains in effect until incorporated in the DFARS or otherwise rescinded.
October 7, 2001 – December 31, 2014

DFARs Part #251
252.251-7000 Ordering From Government Supply Sources.
As prescribed in 251.107, use the following clause:
ORDERING FROM GOVERNMENT SUPPLY SOURCES (AUG 2012)
(a) When placing orders under Federal Supply Schedules, Personal Property Rehabilitation Price
Schedules, or Enterprise Software Agreements, the Contractor shall follow the terms of the applicable
schedule or agreement and authorization. Include in each order:
(1) A copy of the authorization (unless a copy was previously furnished to the Federal Supply
Schedule, Personal Property Rehabilitation Price Schedule, or Enterprise Software Agreement contractor).
(2) The following statement:
Any price reductions negotiated as part of an Enterprise Software Agreement issued under a
Federal Supply Schedule contract shall control. In the event of any other inconsistencies between an
Enterprise Software Agreement, established as a Federal Supply Schedule blanket purchase agreement, and
the Federal Supply Schedule contract, the latter shall govern.
(3) The completed address(es) to which the Contractor's mail, freight, and billing documents are to
be directed.

DFARs Part #251
…
(b) When placing orders under nonmandatory schedule contracts and requirements contracts, issued by
the General Services Administration (GSA) Office of Information Resources Management, for automated
data processing equipment, software and maintenance, communications equipment and supplies, and
teleprocessing services, the Contractor shall follow the terms of the applicable contract and the procedures
in paragraph (a) of this clause.

DFARs Part #251
…
(c) When placing orders for Government stock on a reimbursable basis, the Contractor shall—
(1) Comply with the requirements of the Contracting Officer's authorization, using FEDSTRIP or
MILSTRIP procedures, as appropriate;
(2) Use only the GSA Form 1948-A, Retail Services Shopping Plate, when ordering from GSA Self-Service
Stores;
(3) Order only those items required in the performance of Government contracts; and

DFARs Part #251
…
(4) Pay invoices from Government supply sources promptly. For purchases made from DoD supply sources, this
means within 30 days of the date of a proper invoice. The Contractor shall annotate each invoice with the date
of receipt. For purposes of computing interest for late Contractor payments, the Government’s invoice is
deemed to be a demand for payment in accordance with the Interest clause of this contract. The Contractor’s
failure to pay may also result in the DoD supply source refusing to honor the requisition (see DFARS 251.102(f))
or in the Contracting Officer terminating the Contractor’s authorization to use DoD supply sources. In the event
the Contracting Officer decides to terminate the authorization due to the Contractor’s failure to pay in a timely
manner, the Contracting Officer shall provide the Contractor with prompt written notice of the intent to
terminate the authorization and the basis for such action. The Contractor shall have 10 days after receipt of the
Government’s notice in which to provide additional information as to why the authorization should not be
terminated. The termination shall not provide the Contractor with an excusable delay for failure
to perform or complete the contract in accordance with the terms of the contract, and the
Contractor shall be solely responsible for any increased costs.

DFARs Part #251
…
(d) When placing orders for Government stock on a non-reimbursable basis, the Contractor shall—
(1) Comply with the requirements of the Contracting Officer's authorization; and
(2) When using electronic transactions to submit requisitions on a non-reimbursable basis only,
place orders by authorizing contract number using the Defense Logistics Management System (DLMS)
Supplement to Federal Implementation Convention 511R, Requisition; and acknowledge receipts by
authorizing contract number using the DLMS Supplement 527R, Receipt, Inquiry, Response and Material
Receipt Acknowledgement.

DFARs Part #251
…
(e) Only the Contractor may request authorization for subcontractor use of Government supply sources.
The Contracting Officer will not grant authorizations for subcontractor use without approval of the
Contractor.
(f) Government invoices shall be submitted to the Contractor’s billing address, and Contractor payments
shall be sent to the Government remittance address specified below:
Contractor’s Billing Address (include point of contact and telephone number):
Government Remittance Address (include point of contact and telephone number):

THANK YOU To Our Speaker
Wojciech Kornacki
Watson & Associates, LLC
kornackiw@theodorewatson.com
540-270-3041

Thank You For Attending!
DFARS - 2021
Defense Federal Acquisition Regulations

Government Contracting - DFARS Part 251 - Use of Government Sources by Contractors - Win Federal Contracts

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Government Contracting - DFARS Part 251 - Use of Government Sources by Contractors - Win Federal Contracts

Similar to Government Contracting - DFARS Part 251 - Use of Government Sources by Contractors - Win Federal Contracts (15)

More from JSchaus & Associates

More from JSchaus & Associates (20)

Recently uploaded

Recently uploaded (18)

Government Contracting - DFARS Part 251 - Use of Government Sources by Contractors - Win Federal Contracts