(a) Policy. In accordance with a May 10, 2002, memorandum signed by the Under Secretary of State for Management, domestic bureaus and offices must first use the services of A/LM/AQM or other appropriate DOS contracting activity before transferring funds to another agency to conduct an acquisition. This policy applies across the board, regardless of the statutory or regulatory authority to transfer funds to other agencies for acquisition purposes. It includes transfers under the Economy Act, the Clinger-Cohen Act, and any other legal authority. It also includes funds deposited with another agency for subsequent use, where no immediate need has been identified.
(b) Request for waiver. Domestic bureaus or offices may only transfer funds to another agency for acquisition services after obtaining a waiver of the State First policy from their acquisition office, normally A/LM/AQM. The request for waiver shall be in the form of a memo or e-mail to the Director of A/LM/AQM, or his/her designee. The request shall address the following:
(1) Identification of the agency proposed to provide acquisition services, including contact name, address, and telephone number;
(2) Description of the requirement and acquisition services to be provided by the other agency;
(3) Estimated total dollar value, including option years;
(4) Duration of requirement, including option years;
(5) Reason for using another agency for the acquisition; and
(6) Amount of surcharge that would be applied by the proposed servicing agency.
(c) Response to request. A/LM/AQM shall review each request on a case-by-case basis jointly with A/OPE and respond promptly to the requesting bureau or office. The response shall include the rationale for A/LM/AQM’s decision either to do the work in-house or to authorize use of another agency.
(1) If A/LM/AQM approves the request, A/LM/AQM shall instruct the requesting bureau or office to prepare an Interagency Agreement (IAA) in accordance with DOSAR 617.5. The requesting bureau or office shall obtain the necessary clearances and authorizations to make the IAA effective in both the Department and the other agency.
(2) If A/LM/AQM disapproves the request, A/LM/AQM shall instruct the requesting bureau or office to forward a procurement request to the appropriate contracting officer for action and shall work with the bureau or office to develop an acquisition plan.
(d) Blanket waivers. In reviewing a particular case, A/LM/AQM may determine that the sort of acquisition involved will not require future review and may grant a blanket waiver for future instances where the same item is involved, such as IAAs with the Department of Defense for ammunition.
