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(Revised October 25, 2000)



 242.002 Interagency agreements.

242.002  Interagency agreements.


      (b)(i)  DoD requires reimbursement, at a rate set by the Under Secretary of Defense (Comptroller/Chief Financial Officer), from non-DoD organizations, except for—


                    (A)  Quality assurance, contract administration, and audit services provided under a no-charge reciprocal agreement;


                    (B)  Services performed under subcontracts awarded by the Small Business Administration under FAR Subpart 19.8; and


                    (C)  Quality assurance and pricing services performed for the Supply and Services Canada.


              (ii)  Departments and agencies may request an exception from the reimbursement policy in paragraph (b)(i) of this section from the Under Secretary of Defense (Comptroller/Chief Financial Officer).  A request must show that an exception is in the best interest of the Government.


              (iii)  Departments and agencies must pay for services performed by non-DoD activities, foreign governments, or international organizations, unless otherwise provided by reciprocal agreements.


      (S-70)(i)  Foreign governments and international organizations may request contract administration services on their direct purchases from U.S. producers.  Direct purchase is the purchase of defense supplies in the United States through commercial channels for use by the foreign government or international organization.


              (ii)  Supply and Services Canada (SSC) is permitted to submit its requests for contract administration services directly to the cognizant contract administration office.


              (iii)  Other foreign governments (including Canadian government organizations other than SSC) and international organizations send their requests for contract administration services to the DoD Central Control Point (CCP) at the Headquarters, Defense Contract Management Agency, International and Federal Business Team.  Contract administration offices provide services only upon request from the CCP.  The CCP shall—


                    (A)  Determine whether the request is from a friendly foreign government or an international agency in which the United States is a participant;


                    (B)  Determine whether the services are consistent with the DoD mutual security program policies (the Assistant Secretary of Defense (International Security Affairs) is the source of information for questions as to the eligibility of foreign governments to receive services);


                    (C)  Ensure that the reimbursement arrangements are consistent with paragraph (b) of this section;


                    (D)  Coordinate with appropriate contract administration offices to determine whether DoD can provide the services;


                    (E)  Notify the requestor that the request is accepted, or provide reasons why it cannot be accepted;


                    (F)  Distribute the acquisition documents and related materials to contract administration offices; and


                    (G)  Receive statements of costs incurred by contract administration offices for reimbursable services and forward them for billing to the Security Assistance Accounting Center.




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