Additional Text

Table of Contents

  1. DODIG Fraud Report
  2. Contracting Structure and Support Organizations
  3. JTSCC Subordinate Organizations
  4. Fund Cites
  5. Authorized Uses of CERP
  6. CERP Process
  7. Redeployment and Demobilzation Considerations
  8. Strategic Planning for Contracting Operations
  9. Phase Zero Contingency Operations
  10. DCAA Appendix D: Available Services
  11. Combat Support Agencies
  12. Incentive Type Contracts
  13. Receipt and Inspection
  14. Terminations
  15. Additional Considerations

DOD Inspector General Fraud Report (2012) (DODIG Report 2012-134)

In September 2012, the DOD Inspector General produced a comprehensive report compiling the results of 38 previous reports and 20 fraud investigations that took place between 2010 to 2012. You can read that report by clicking here.

Contracting Structure and Support Organizations

There is no single preferred contracting organizational option. The specific organizational option is determined by the geographic combatant commander (GCC). It is also important to note that the described organizational options pertain only to theater support contracting organizations and individuals. A designated lead Service or Joint Theater Support Contracting Command would normally only have coordinating authority over Service component external support contracting organizations, defense contracting agencies, and administrative contracting officers. These organizations or individuals, in general, have no authority over system support contracts.

There are three main contracting-related organizational options:

  • Service component support to own forces
  • Lead Service component responsible for theater support contracting
  • Joint Theater Support Contracting Command

These organizational options normally apply to the subordinate JFC level (for example, subunified command or Joint task force). The GCC would not, as a rule, establish a lead Service or Joint Theater Support Contracting Command at the AOR level.
The organizational option chosen is entirely dependent on the mission requirements and operational factors. These factors may include, but are not limited to:

  • Size, primary mission, and expected duration of the joint operation
  • Scope, criticality, and complexity of the theater support contracting requirements
  • Need for enhanced JFC control of the theater support contracting mission
  • Location of supported units when compared to available commercial vendor base
  • Dominant user and most capable Service considerations

Just as there is no one preferred option, the needs of the contracting organization may change as the operation progresses. Therefore, the contracting organizational structure may change or progress through the basic organizational options discussed as the organizational needs unfold. Although the organizational structure may change over time, all organizational options must account for proper coordination and control of the overall theater support contracting actions in order to limit duplication of effort and Service competition for limited vendor resources. The key point to consider in the choice of any contracting organizational option is that the organizational structure should be planned for in writing and should be a conscious choice prior to the onset of a contingency operation (See JP 4-10, Chapter III, paragraph 7 for guidance on contracting support organizational options).

Service Component Support to Own Forces. During smaller-scale operations with an expected short duration, the GCC would normally allow the Service component commanders to retain control of their own theater support contracting authority and organizations. This organizational option is also applicable to operations where most individual Service component units will be operating in distinctly different areas of the JOA, thus limiting potential competition for the same vendor base.
Lead Service Component Responsible for Theater Support Contracting. The GCC may designate a specific Service component, normally the lead Service responsible for general common user logistics (CUL) support, as the lead Service responsible to provide consolidated theater support contracting for a particular geographical region—in most cases the JOA. In most major operations, the lead Service will either be the Army or Air Force component, due to the limited theater support contracting capabilities of the other Services.

The lead Service organizational option is most appropriate for major, long-term operations where the JFC wants to ensure there is a consolidated contracting effort within the operational area, but without the need to stand up an entirely new joint command. In this option, the lead Service contracting organization will have command and control of designated other Service component theater support contracting organizations and would have their staff augmented by other Services’ contingency contracting personnel as directed by the JFC. They also may have liaison officers from Service civil augmentation program management organizations, Defense Logistics Agency, multinational military units, or interagency organizations, as required by the JFC. The lead Service SCO would normally chair the Joint Contracting Support Board.
Joint Theater Support Contracting Command (See Figure 3). In larger or more complex contingency operations, the JFC may require more oversight than can typically be provided through the lead Service organizational option. Operational conditions that may drive this option could include, but may not be limited to:

  • Extremely complex operation that requires direct control of theater support contracting by the JFC commander
  • Mission is of long-term duration
  • Mission is beyond the capability of a single Service
  • Mission that requires significant coordination of contracting and civil-military aspects of the JFC’s campaign plan
  • Significant numbers of different Service forces operating in the same area or joint bases served by the same local vendor base

The Joint Theater Support Contracting Command, by design, is a joint command that has command and control authority over designated Service component theater support contracting organizations and personnel within a designated support area. A Joint Theater Support Contracting Command would perform the same functions as a lead Service contracting organization, but would report directly to the JFC.
Since GCCs do not have their own contracting authority, the Joint Theater Support Contracting Command’s HCA authority would flow from one of the Service components, normally the executive agency or lead Service component responsible for CUL, to the operational area.

There is not a formally approved, set model for a Joint Theater Support Contracting Command. In general, The Joint Theater Support Contracting Command will be stood up only for major sustained operations. As seen in recent operations, these sustained operations may include major reconstruction and transition to civil authority mission requirements in addition to the standard Joint Forces support mission requirements. In these major, long-term stability operations, it may be desirable to stand up a Joint Theater Support Contracting Command with separate SCOs responsible to support Joint Forces, host nation forces or transition operations, and reconstruction support.

Subordinate Organizations

JTSCC Subordinate Organization Overview

Senior Contracting Official. Joint Theater Support Contracting Commands would generally have one to three SCOs, normally at the O-6 (or DoD civilian equivalent) level with significant contracting-related experience and certifications. The SCO’s general responsibilities include:

Overseeing day-to-day contracting operations within their area of contracting responsibility

  • Overseeing and assessing the effectiveness of contracting programs
  • Issuing warrants and determining delegated warrant authorities
  • Participating in the JARB (primarily the SCO for forces support)
  • Chairing the JCSB as directed
  • Managing and executing procurement management reviews
  • Developing and providing oversight management control programs
  • Conducting special reviews as required
  • Managing the Contract Audit Follow-up Program
  • Suspension and Debarment

Senior Contracting Official Operations Staff. Each SCO will normally have an operations staff with primary duties that mirror the Joint Theater Support Contracting Command J-Staff functions listed previously. These staffs can vary in size and should be made up of officers and noncommissioned officers (NCO) with at least some contracting and acquisition experience.

Senior Contracting Official for Forces Support. The SCO for forces support is responsible for planning, coordinating, and managing theater support contracting for deployed US forces and multinational forces. This support may also include support to interagency personnel and facilities, but does not normally include support to other government agency-led civil reconstruction projects. The SCO for forces support will generally have three or more RCCs, each with multiple regional contracting offices (RCO). Also, the SCO for forces support may have a specialty contracting division to handle common, JOA-wide, or complex contracts that exceed RCC and RCO capabilities.
Three contracting organizations that may be beneficial to establish include:

  • RCCs
  • Regional contracting offices
  • Specialty contracts division

Specialty Contracts Division. In some operations, there may be a need to develop a specialty contracts division that can provide solicitation for common, JOA-wide services or supplies. Additionally, these contracting organizations may be utilized to perform complex contracting actions that exceed the RCC and RCO capabilities. The specialty contracts division will be made up of specially selected, highly trained contracting officers, NCOs, and DoD civilians who have the requisite experience and warrants to handle large, complex contract actions.

Senior Contracting Official for Host Nation (HN) Forces and Transition Support. This SCO for HN and transition support is responsible for planning, coordinating, and managing theater support contracting actions in support of the JFC mission to develop, organize, train, equip, and sustain HN security forces. The SCO for HN and transition support is also responsible for providing training and transition assistance to HN security forces (and other governmental agencies as directed) to facilitate developing and sustaining their own contracting support capabilities. The SCO for HN and transition support will normally include multiple support divisions and transition teams.
Service and Commodity Divisions. The SCO for HN Forces and transition support would normally have some type of subordinate contracting organization (or organizations) responsible to manage HN security forces theater support contracting actions that cannot be readily accommodated by the existing SCO Forces Support RCCs and RCOs.

Transition Teams. If established, the SCO for HN and transition support will normally have multiple transition teams. These transition teams are responsible to plan and execute support to the development of HN security forces and, if directed, HN governmental, contracting support organizations and capabilities. These teams will vary in size, but must be manned with military or DoD civilian personnel with the contracting experience required by their assigned mission.

Senior Contracting Official for Reconstruction Support. The SCO for Reconstruction is responsible for planning, coordinating, and managing theater support contracting actions in support of the civil reconstruction mission. Normally, the SCO for reconstruction would directly support the US Chief of Mission or US Agency for International Development. The SCO for reconstruction generally would have multiple sector support contracting organizations. These subordinate organizations could include, but are not limited to, the following reconstruction sector areas: water, sanitation, electricity, transportation, oil production, and other related functions. As much as resources permit, these staffs will be made up of select, highly trained contracting officers, NCOs, and DoD civilians who have the requisite experience and warrant to handle large, complex reconstruction related contract actions.

Fund Cites

Additional Information on reading Fund Cites or Lines of Accounting:

Sample Funds Citation (continued from Chapter 3 ):

[57 8 3400 310 67A2 231010 01 59290 503300 ESP 8Z]

Additional Elements of the Fund Cite:

  • Fund Code and Fiscal Year (310)
  • Operating Agency Code (OAC) and Operating Budget Account Number (OBAN) (67A2). First two digits (OAC) indicate the major command; last 2 digits (OBAN) indicate subordinate command/unit.
  • Responsibility Center (RC) and Cost Center (CC) Code (231010). First four digits (RC) indicate unit; last 2 digits (CC) indicate sections within the unit.
  • Budget Activity Code (01). Indicates the major mission function of the appropriation: 01– operating forces, 02 – mobilization, 03 – training and education, 04 – administration and service-wide activities.
  • Accounting and Disbursing Station Number (503300). Specifies the DFAS operating location that is processing your transaction: 503300 – Dayton Ohio, 525700 – Omaha Nebraska, and 667100 – Limestone Maine.

Authorized Uses of CERP

authorized uses of CERP

authorized uses of CERP

authorized uses of CERP

CERP Process

CERP Process

Redeployment and Demobilization Considerations

Click to Download this Section on Redeployment Considerations

Redeployment is defined as the transfer of forces and materiel to support another JFC’s operational requirements, or to return personnel, equipment, and materiel to home or demobilization stations for reintegration and out-processing.  Redeployment normally is conducted in stages—the entire joint force likely will not redeploy in one relatively short period. It may include waste disposal, port operations, closing of contracts and other financial obligations, disposition of contracting records and files, clearing and marking of minefields and other explosive ordnance disposal activities, and ensuring that appropriate units remain in place until their missions are complete. 

Redeployment must be planned and executed in a manner that facilitates the use of redeploying forces and supplies to meet new missions or crises situations.  This is where you come in.  Whenever possible, the CCO should become part of the Joint contingency planning staff that is planning the redeployment or demobilization phase of the operation.  Involve yourself with the ops planners and be “in the know” of what is going on around you. Below are some valuable lessons learned from recent redeployments as well as some areas you should really focus on upon being notified of a contingency redeployment or demobilization: 

  • Prepare contract files for delegation or assignment to follow on force, transfer of mission (State Department, UN or NATO), DCMA assignment, etc.
  • Consider Redeployment/Demobilization Cell within J3 for visibility of theater-wide contracting requirements.
  • Encourage area Commanders to take responsibility for accounting for contractors, their final employment tasks, and the plan to close services as a function of the cessation plan.
  • Use the Combatant Commander's (e.g. CENTCOM) website to better ensure a single, coordinated communication point for theater policies regarding contract ending/contractor de-mobilization.
  • Ensure a work cessation/demobilization plan for each base camp for theater-wide visibility.
  • Use a Single Repository to Track Contract, Contractor and Contractor Equipment Related Information into Single Data Base.
  • Ensure demobilization clauses are in each contract to protect the government’s interest and provide added flexibility during the redeployment phase of operations.
  • Ensure close coordination/communications with contractors so everyone is on the same sheet of music.  Communication = Flexibility!
  • A solid reachback support plan will help expedite the redeployment process in terms of consolidating and closing out contracts.
  • Temporary Billeting will be required for transient personnel awaiting commercial or MIL air transportation.
  • Construction/Operations of Vehicle Wash Racks will be a top priority for heavy equipment wash down prior to clearing customs for shipping equipment back overseas.
  • Packing and Crating/Freight Services/Line Haul Services will be a top priority during the redeployment phase of operations to ship unit supplies and heavy equipment back to the port.
  • Use of Civilian Augmentation Contracts (LOGCAP, AFCAP contracts, etc.) to consolidate/closeout contracts will expedite the redeployment phase.
  • Environmental restoration will be a top priority during the redeployment phase focusing on cleaning up HAZMAT spills.  Get a copy of the baseline survey of what the site looked like before we established a base camp.  The base engineer should have a copy of this.
  • Ensure you educate customers, commanders, and CORs  on proper disposition of gifts and gratuities upon departure.
  • Ensure you educate customers, commanders and Contracting Officer Representative (CORs) on Unauthorized Commitments during the redeployment phase to prevent time consuming ratification procedures.
  • Start working on your After Action Report (AAR) immediately upon arrival.  Your days will be long and if you don’t take the time to work on this as you go, you will forget.  Include a copy of your AAR in the CCO Continuity Book and post a copy to the Acquisition Community Connection (AAC) Contingency Contracting Community of Practice (CoP) at
  • Ensure you take the time to put together a well thought out CCO Continuity Book in the event you leave before your replacement gets into theater and leave it with the J4 or the installation commander.  It’s always a good practice to include a copy of your After Action Report (AAR) along with the CCO Continuity Book.
  • Coordinate with contractors and user activities the timing and procedures for return of all rental items.
  • Determine which contracts require formal termination for convenience actions and initiate settlement negotiations with those contractors. This could include no-cost settlements if appropriate. (FAR 49, Termination of Contracts)
  • Continue life support contracts until last troop leaves AOR.  Immediately negotiate a reduction of services and terminate base support agreements to coincide with the unit redeployment schedule. Contracts should be consolidated, combined, reduced, and eliminated if possible. As unit assets are redeployed, interim replacement support may be required from the host base or contractor sources, if available. Contracts awarded throughout the deployment should be tailored to minimize formal termination requirements wherever possible.
  • Focus on Final Payment/Contract Closeout.  Ensure receiving reports and invoices for all purchases pending payment are processed.  Coordinate with the disbursing agent to ensure that final payments are processed. Utilize DCAA to assist in closeout and evaluation of claims and equitable adjustment.  Settle all contractor claims prior to the final CCO redeployment.
  • Ensure contract reporting (PIINs, Total Actions/Total Dollars).  Report all contract actions and dollar amounts to the contracting activity that issued the PIINs used during the deployment. Total actions and dollars will be reported by RCC chiefs to the supported COCOM or HCA prior to departure. Coordinate the disposition of all purchased assets, contractor acquired/government owned, and government-furnished equipment, and forward to dispositioning organization.

Click to Download this Section on Redeployment Considerations

Strategic Planning for Contracting Operations

Click here to read about Strategic Planning for Contracting Operations. A brief introduction follows:

Lack of planning and sound contract integration at the strategic level can lead to loss of efficiencies, lack of effectiveness, lack of oversight, and in some cases, outright fraud of the executing participants.  Our military strategy focuses on our ability to rapidly mobilize, deploy, and sustain forces anywhere in the world.  As such logistics becomes the focal point of any scenario, and contingency contracting becomes a critical logistics function.  Your analysis of plans is critical to your performance in time of a contingency, and your expertise is needed to provide input to the process so that disconnects may be solved before they fester into major problems.  This chapter of the handbook presents a comprehensive overview of the deliberate planning process.  While most of the information in this chapter occurs well above the operational level, it is always important to understand where you fit into the process to be a force multiplier for the joint force.

Read More

Phase Zero Contingency Operations

Click here to read about Phase Zero Contingency Operations. A brief introduction follows:

Contracting in expeditionary operations is not a new phenomenon. What is new is the scope and magnitude that contracting and contractors play in today’s military operations. Even if global operating tempos decline, many experts believe that reliance on contractor personnel will remain at current levels, or even grow, in relation to the number of uniformed personnel.

Lack of planning and sound contract integration at the strategic level leads to loss of efficiencies, lack of effectiveness, and, in many cases, outright fraud of the executing participants. The authors propose adopting an Integrated Planner and Executor (IPE) and embrace mandates for Operational Contract Support, including generating a thoroughly vetted Annex W into OPLANs. The authors contend that the best means to accomplish integration into existing war planning systems is by congressionally mandating, authorizing, and funding (via appropriation) the IPE positions at the flag and senior executive service (SES) levels within Service structures, such as at the JCASO. The authors recommend that JCASO have more authority within GCC and Service staffs—particularly to establish, monitor, and manage Annex W for GCC and the Services within the APEX framework. These recommendations will allow for greater efficiency and effectiveness in providing contracted support to all military operations.

Read More

DCAA Appendix D: Available Services

1. Introduction

The Defense Contract Audit Agency (DCAA) is a Defense Agency under the authority, direction, and control of the Under Secretary of Defense (Comptroller)is a civilian organization under the authority, direction, and control of the Under Secretary of Defense (Comptroller). They are responsible for performing all contract audits for the Department of Defense, and providing accounting and financial advisory services regarding contracts and subcontracts to all DoD Components responsible for procurement and contract administration. These services are provided in connection with negotiation, administration, and settlement of contracts and subcontracts. DCAA also provides contract audit services to other Government Agencies, as appropriate, on a reimbursable basis. DCAA’s services are provided under contingency contracting situations, both in support of military operations and during a national emergency. DCAA personnel can be deployed, as circumstances warrant, during joint operations, and it is advantageous when the auditors are on location as soon as possible after contracting personnel.

Generally, contingency contracting requires expeditious acquisitions of logistical support equipment and material during the early stages of catastrophic or wartime events. The need for rapid acquisition increases the Government’s challenge in negotiating fair and reasonable prices. Traditional procurement approaches are not always followed under contingency contracting due to the volatile and ever-changing conditions. Auditors on site will identify practices needing improvement on a real-time basis and recommend cost avoidance opportunities. Onsite auditors can also assist the contracting officer in identifying appropriate alternative procedures when, due to volatile conditions, contractors have not considered competitive pricing for goods and services.

On site observations, when combined with normal real-time concurrent contract audit activities, are particularly effective in identifying problems early and implementing corrective actions before large sums of money are expended. Examples of effective oversight initiatives under contingency contracting include:

– Review of contractor documentation and support for purchase orders and subcontracts as they are being issued to avoid significant cost disputes later.

– Real-time verifications of contract labor charges and material physical existence by United States Government (USG) personnel (e.g., Contracting Officers and/or DCAA Auditors) to ensure contracted services are provided. The following are some examples:

  • Verifications of the amount of debris removed,
  • Verifications of the number of living containers billed were actually delivered,
  • Verifications of the number of laundry bags billed were actually processed, and
  • Verifications of the number of meals billed were actually provided.

Auditors provide valuable advice to Contracting Officers on “urgent and compelling” timeframes and consult on procurement practices and procedures thereafter.

2. Audit Services Available – Prime Contracts and Subcontracts

Identified below are some of the specific types of audit services provided by DCAA. In addition, tailored audit services are available to support the unique nature of contingency contracts. Especially important has been DCAA’s real-time testing of contractor timekeeping, cash disbursement procedures, and physical observation and/or inquiries on a real-time concurrent basis to verify the existence and consumption of materials.

Before and After the contract award:

  • Before: Preaward accounting system survey.
    • After: Audit postaward accounting system.
  • Before: Financial capability determination.
    • After: Audit contractor’s incurred costs as costs are being incurred.
  • Before: Evaluate contractor’s estimating system.
    • After: Review billings and process contractor’s public vouchers.
  • Before: Evaluate contractor’s initial price proposal.
    • After: Surveillance of contractor’s earned value management system.
  • Before: Attend and support audit conclusions during contract negotiation conferences.
    • After: Evaluate contractor accounts payable records to ensure vendors and subcontractors are paid in a timely manner.

Provide recommendations to contracting officials in drafting RFQ/RFP/SOW and contract terms and conditions

Other Considerations:

  • Review contractor’s compliance with P.L. 91-379, Cost Accounting Standards
  • Audit of claims (termination, equitable adjustment, delay)
  • Perform defective pricing reviews under 10 USC 2306(a), Truth-In-Negotiations Act

3. Requesting Audit Services

(a) DCAA performs audits, in part, at the request of the contracting officer or contract administrator. Requests for audits should be sent to the cognizant DCAA Field Audit Office (FAO) based on the geographic location of the contractor either bidding on or awarded the contract. In many cases, as in contingency contract situations, the actual performance of the contract is performed elsewhere. Depending on the nature of the audit requested (e.g., review of costs incurred and associated billings; physical verification of employees, contract labor and material; and the validation of subcontract costs), the DCAA office cognizant of the contractor awarded the contract will request an assist audit from the FAO where the contract effort is actually being performed, unless circumstance require support from outside the geographic area to perform the audit (e.g., following a natural disaster).

Identified below are the DCAA points of contact based on the location of the theater of contingency operations.

(b) Contracting offices should coordinate with DCAA representatives in a timely manner as significant contingency contracts are established. Contracting officers are encouraged to involve the DCAA in reviewing proposal for compliance with requirement of the development of the RFQ/RFP to assure clarity and to recommend contract terms and conditions, such as billing requirements and cost performance measures.

(c) Contracting offices should develop a plan to notify DCAA promptly and involve them as each contingency operation is planned and deployed. With this insight, DCAA will be able to mobilize quickly and provide prompt audit services.

Combat Support Agencies

DISA provides advanced information technology and immediate communications support to the president, vice president, secretary of defense, military services, and combatant commands. From its Arlington, VA., headquarters and through worldwide field activities, DISA offers solutions and enhanced capabilities that enable it’s customers to make rapid decisions, using real-time information, and to turn these decisions into critical strategic, operational, and tactical actions.
DISA also supports net-centricity through the Net-Centric Enterprise Services (NCES) Program. When fully operational, NCES will enable GIG users to access, post, process, use, store, and manage information on demand. DISA has many other critical missions including providing world-class computing services and overseeing the evolution of the existing DoD Command and Control (C2) systems. DISA is also home to the White House Communications Agency, which provides communications support to the president and vice president; the Defense Spectrum Organization, which develops integrated plans and long-term strategies for DoD spectrum access; and the Defense
Information Technology Contracting Organization (DITCO), which procures global net-centric capabilities and supports customers through innovative contracting and acquisition logistics.

DIA – The Defense Intelligence Agency is a Department of Defense combat support agency and an important member of the United States Intelligence Community. With more than 16,500 military and civilian employees worldwide, DIA is a major producer and manager of foreign military intelligence. We provide military intelligence to warfighters, defense policymakers and force planners, in the Department of Defense and the Intelligence Community, in support of U.S. military planning and operations and weapon systems acquisition.

The Director of DIA is a three-star military officer who serves as principal adviser to the Secretary of Defense and to the Chairman of the Joint Chiefs of Staff on matters of military intelligence. The Director also chairs the Military Intelligence Board, which coordinates activities of the defense intelligence community.
DIA is headquartered at the Pentagon in Washington, D.C., with major operational activities at the Defense Intelligence Analysis Center (DIAC), Washington, D.C., the National Center for Medical Intelligence (NCMI), Frederick, Maryland, and the Missile and Space Intelligence Center (MSIC), Huntsville, Alabama.

Our workforce is as diverse as our missions. We possess a workforce skilled in the areas of military history and doctrine, economics, physics, chemistry, world history, political science, bio-sciences, and computer sciences to name a few.
Our mission is to satisfy the military and military-related intelligence requirements of the Secretary and Deputy Secretary of Defense, the Chairman of the Joint Chiefs of Staff, and the DNI, and provide the military intelligence contribution to national foreign intelligence and counterintelligence. We plan, manage, and execute intelligence operations during peacetime, crisis, and war. We serve as the DoD lead for coordinating intelligence support to meet COCOM requirements; lead efforts to align analysis, collection, and Intelligence, Surveillance, and Reconnaissance (ISR) activities with all operations; and link and synchronize Military, Defense, and National Intelligence capabilities.

NGA –The National Geospatial-Intelligence Agency (NGA) is a Department of Defense combat support agency and a member of the national Intelligence Community (IC). NGA develops imagery and map-based intelligence solutions for U.S. national defense, homeland security and safety of navigation.

NGA provides timely, relevant and accurate geospatial intelligence in support of national security objectives. The term "geospatial intelligence" means the exploitation and analysis of imagery and geospatial information to describe, assess and visually depict physical features and geographically referenced activities on the Earth. Geospatial intelligence consists of imagery, imagery intelligence and geospatial (e.g., mapping, charting and geodesy) information.
Information collected and processed by NGA is tailored for customer-specific solutions. By giving customers ready access to geospatial intelligence, NGA provides support to civilian and military leaders and contributes to the state of readiness of U.S. military forces. NGA also contributes to humanitarian efforts, such as tracking floods and disaster support, and to peacekeeping.

DTRA –The Defense Threat Reduction Agency (DTRA) is the intellectual, technical and operational leader for the Department of Defense (DoD) and the U.S. Strategic Command in the national effort to combat the weapons of mass destruction (WMD) threat.

In the post-Cold War environment, a unified, consistent approach to deterring, reducing and countering WMD is essential to maintaining our national security.

Under DTRA, DoD resources, expertise and capabilities are combined to ensure the United States remains ready and able to address the present and future WMD threat. We perform four essential functions to accomplish our mission: combat support, technology development, threat control and threat reduction. These functions form the basis for how we are organized and our daily activities.

Together, they enable us to reduce the physical and psychological terror of WMD, thereby enhancing the security of the world's citizens. At the dawn of the 21st century, no other task is as challenging or demanding.

National Security Agency (NSA) / Central Security Service (CSS)
The NSA/CSS core missions are to protect U.S. national security systems and to produce foreign signals intelligence information.

The Information Assurance mission confronts the formidable challenge of preventing foreign adversaries from gaining access to sensitive or classified national security information. The Signals Intelligence mission collects, processes, and disseminates intelligence information from foreign signals for intelligence and counterintelligence purposes and to support military operations. This Agency also enables Network Warfare operations to defeat terrorists and their organizations at home and abroad, consistent with U.S. laws and the protection of privacy and civil liberties.
Executive Order 12333, originally issued 4 December 1981, delineates the NSA/CSS roles and responsibilities. In part, the Director, NSA/Chief, CSS is charged to:

  • Collect (including through clandestine means), process, analyze, produce, and disseminate signals intelligence information and data for foreign intelligence and counterintelligence purposes to support national and departmental missions;
  • Act as the National Manager for National Security Systems as established in law and policy, and in this capacity be responsible to the Secretary of Defense and to the Director, National Intelligence;
  • Prescribe security regulations covering operating practices, including the transmission, handling, and distribution of signals intelligence and communications security material within and among the elements under control of the Director of the National Security Agency, and exercise the necessary supervisory control to ensure compliance with the regulations.
    EO 12333 was amended on 31 July 2008 in order to:
    • Align EO12333 with the Intelligence Reform and Terrorism Prevention Act of 2004;
    • Implement additional recommendations of the 9/11 and WMD Commissions;
    • Further integrate the Intelligence Community and clarify and strengthen the role of the DNI as the head of the Community;
    • Maintain or strengthen privacy and civil liberties protections.

DoD CIFA –The mission of the DoD CIFA is to develop and manage DoD Counterintelligence (CI) programs and functions that support the protection of the Department, including CI support to protect DoD personnel, resources, critical information, research and development programs, technology, critical infrastructure, economic security, and U.S. interests, against foreign influence and manipulation, as well as to detect and neutralize espionage against the Department.

Incentive Type Contracts

Incentive Type Contracts. (FAR 16.4) There are three types of incentive contracts that provide for changes in profit following an agreed-to formula-type incentive arrangement:

  • Fixed-price incentive firm target (FAR 16.403-1)
  • Fixed-price incentive successive targets (FAR 16.403-2)
  • Cost-plus incentive-fee (FAR 16.405-1)

There are also two other incentive contracts described in the FAR:

  • Cost-plus award-fee (FAR 16.405-2)
  • Fixed-price contract with award fee (FAR 16.404)

Incentive contracts are designed to attain specific acquisition objectives by positively rewarding identified contractor achievements that exceed stated targets and negatively rewarding contractor failures to attain stated targets. Profit will increase when targets are surpassed. They will decline when targets are not achieved.

Changes in profit will follow an agreed-to formula-type incentive arrangement.

  • Contracts may include:
    Cost Incentives. Most incentive contracts include only an incentive for controlling cost. You cannot provide for other incentives without also providing a cost incentive or constraint.
  • Performance Incentives. Consider technical performance incentives in connection with specific product characteristics or other specific elements of contract performance. When a variety of specific characteristics contribute to overall contract performance, you must balance the incentives so that no one of them is exaggerated to the detriment of overall contract performance.
  • Delivery Incentives. Consider delivery incentives when improvement from a required delivery schedule is a significant government objective. Delivery incentives should specify the application of the incentive structure in the event of delays beyond the control, and without the fault or negligence, of the contractor or subcontractor.

If you use multiple incentives, structure them in a manner that compels trade-off decisions among the incentive areas. Be careful to avoid using too many incentives. If there are too many incentives, it may be impossible for the contractor to logically consider the trade-offs available and determine the effect on profit.

Receipt and Inspection

The report goes to finance where they will issue payment to the vendor. Finance will not pay without a signature acknowledging the government received the goods or services. A CCO or other authorized United States (US) government representative (COR, contracting officer’s technical representative, end customer, and so forth) can sign block 32b of the Standard Form (SF) 1449, block 26 of the Department of Defense (DD) Form 1155, and appropriate block on the SF 44, or create a receiving report such as the DD Form 250 in the absence of a vendor provided receipt.


Almost all terminations will be for convenience as opposed to terminations for default. The reason for this is the contractor will not be bonded, the SOW will likely contain ambiguities, and the contractor is likely to be the sole source for the needed services. NOTE: It would serve no purpose to default a contractor if there is no hope of recovering reprocurement costs or of finding another contractor to do the job. Contracts can normally be terminated by simply issuing a letter of cancellation and requesting the contractor’s signature on a release of claims. This allows the CCO to closeout the contract and finance to release the money remaining on the contract to other requirements. Terminations for convenience could also be handled the same way, except when the contractor has invested substantially to fulfill the contract. In these cases, the normal rules in the FAR should be followed to ensure an equitable adjustment is made to compensate the contractor.

Additional Considerations

There is usually a significant amount of command pressure to reduce the footprint (number of troops on the ground), which will typically result in eliminating many requirements that had been provided for by contract.

  • It is important that whatever decision you make regarding the termination, continuation, or closeout of existing contracts, you must be thorough in your actions. Just as you would not like to inherit a poorly run office from your predecessor, you must be sure to clean up after yourself and properly closeout or transfer contracts to your successor.
  • Gifts and gratuities from vendors can come to the forefront upon your departure as well as they did when you first arrived. As a token for their appreciation for the business you brought them, vendors may offer souvenirs for you to take home with you. See Chapter 1 for further guidance.
    Environmental Considerations. It is the user’s responsibility to handle disposal of hazardous material (HAZMAT) and hazardous waste. However, CCOs may become involved in contracting for disposal services. While local vendors are only responsible for adhering to the local environmental rules, it is incumbent upon the CCO to ensure the HAZMAT is disposed of in accordance with the most stringent rules and regulations (whether US or local), since the US was the user of the material.


Download PDF Viewer | Download Word Doc Viewer | Download PowerPoint Viewer | Download Excel Viewer