BY ORDER OF THE SECRETARY OF THE AIR FORCE AIR FORCE

BY ORDER OF THE SECRETARY

OF THE AIR FORCE

AIR FORCE INSTRUCTION 65-118

8 APRIL 2020

Financial Management

AIR FORCE PURCHASES USING

MILITARY INTERDEPARTMENTAL

PURCHASE REQUESTS (MIPRS)

COMPLIANCE WITH THIS PUBLICATION IS MANDATORY

ACCESSIBILITY: Publications and forms for downloading or ordering are available on the

e-Publishing website at www.e-Publishing.af.mil

RELEASABILITY: There are no releasability restrictions on this publication

OPR: SAF/FMFC

(AFAFO-A)

Supersedes: AFI 65-118, 4 October 2016

Certified by: SAF/FMF

(Fredrick E. Carr)

Pages: 73

This instruction implements, Air Force Policy Directives (AFPD) 65-1. It provides Air Force (AF)

guidance and procedures for purchases using Defense Department (DD) Form 448, Military

Interdepartmental Purchase Request (MIPR) and DD Form 448-2, Acceptance of MIPR. It applies

to all active duty, Air National Guard (ANG), and Air Force Reserve (AFR) military and civilian

personnel. The authorities to waive wing/unit level requirements in this publication are identified

with a Tier (T-0, T-1, T-2, and T-3) number following the compliance statement. See Air Force

Instruction (AFI) 33-360, Publications and Forms Management, Table 1.1, for a description of the

authorities associated with the Tier numbers. Submit requests for waivers via AF Form 679, Air

Force Publication Compliance Item Waiver Request/Approval, through the chain of command to

the appropriate Tier waiver approval authority, or alternately, to the requestor’s commander for

non-tiered compliance items. Ensure that all records created as a result of processes prescribed in

this publication are maintained in accordance with Air Force Manual (AFMAN) 33-363,

Management of Records, and disposed of in accordance with the Air Force Records Disposition

Schedule located in the Air Force Records Information Management System. Refer recommended

changes and questions about this publication to the office of primary responsibility (OPR) using

the AF form 847, Recommendation for Change of Publication; route AF forms 847 from the field

through the appropriate functional chain of command. This publication may be supplemented at

any level, but all Supplements must be routed to the OPR of this publication for coordination prior

to certification and approval. The use of the name or mark of any specific manufacturer,

commercial product, commodity, or service in this publication does not imply endorsement by the

Air Force.

2  AFI65-118  8 APRIL 2020 
SUMMARY OF CHANGES 
This document has been substantially revised and needs to be completely reviewed. Major changes 
include: Revision of chapter sequence in accordance with AFI 33-360; Small Business (SB) and 
G-Invoicing requirements; clarification on the use of MIPRs to, from, and within the Defense 
Enterprise  Accounting  and  Management  System  (DEAMS);  updated/revised  Attachment  3, 
Checklist for DD Form 448 and Requirements Package Review; consolidation of chapters and 
attachments reducing redundancy; updated references, dates, and included hyperlinks; additions 
to abbreviations and acronyms as well as the terms sections. 
 
Chapter 1—OVERVIEW    5 
1.1.  Acquisition and MIPR Types. .................................................................................   5 
1.2.  MIPR Categories.  ....................................................................................................   5 
1.3.  Interagency Acquisition Statutory Authorities.  ......................................................   6 
1.4.  Service Contracts. ....................................................................................................   7 
Chapter 2—ROLES AND RESPONSIBILITIES    9 
2.1.  Secretary of the Air Force/Financial Management (SAF/FM).  ..............................   9 
2.2.  Air Force Judge Advocate (AF/JA).  .......................................................................   9 
2.3.  Office of the Air Force General Counsel (SAF/GC).  .............................................   9 
2.4.  Assistant Secretary of the Air Force for Acquisition, Technology and Logistics 
(SAF/AQ). ...............................................................................................................   9 
2.5.  Headquarters U.S. Air Force Logistics, Engineering and Force Protection 
(AF/A4).  ..................................................................................................................   9 
2.6.  MAJCOM/FOA/DRU Commanders.  .....................................................................   9 
2.7.  Commanders or Directors of Requesting Activities at All Levels.  .........................   9 
2.8.  Program Managers (PM). ........................................................................................   10 
2.9.  Requesting Activity Resource Adviser/Resource Manager (RA/RM).  ..................   12 
2.10.  Requesting Activity Contracting Office.  ................................................................   13 
2.11.  Small Business Professional.  ..................................................................................   13 
2.12.  External Reviewers.  ................................................................................................   14 
2.13.  Financial Management Analysis (FMA).  ...............................................................   14 
2.14.  Defense Finance and Accounting Service (DFAS).  ................................................   15 

AFI65-118  8 APRIL 2020  3 
Chapter 3—MILITARY INTERDEPARTMENTAL PURCHASE REQUEST PLANNING, 
DEVELOPMENT, AND CLOSEOUT    17 
1.  Applicability  ...........................................................................................................   17 
2.  Limitations. ..............................................................................................................   17 
3.  Market Research and Acquisition Planning.  ...........................................................   18 
4.  Small Business Professional.  ..................................................................................   18 
5.  Purchase Options.  ...................................................................................................   18 
6.  MIPR Initiator.  ........................................................................................................   19 
7.  Completing the MIPR Package.  ..............................................................................   19 
8.  Select DD Form 448 and System Information.  .......................................................   19 
Table  3.1.  Creation of Direct Cite (CAT II) MIPR. ..................................................................   21 
9.  MIPR Routing and Review. .....................................................................................   21 
10.  MIPR Acceptance.  ..................................................................................................   22 
11.  Reconciliation.  ........................................................................................................   22 
12.  Close Out.  ...............................................................................................................   23 
13.  Document Retention.  ..............................................................................................   23 
Chapter 4—ADVANCE PAYMENT/ADVANCE BILLING AND ACCOUNTING 
PROCEDURES    24 
1.  Advance Payment Process. ......................................................................................   24 
2.  Partial Advance of MIPR.  .......................................................................................   24 
3.  Full Advance of MIPR.  ...........................................................................................   25 
4.  Recording of Contract Award for Direct Cite MIPR.  .............................................   26 
5.  Recording of Obligation for Reimbursable MIPRs.  ...............................................   26 
6.  Monthly Validation Process.  ...................................................................................   26 
7.  Stages of Accounting for Requesting Activity.  ......................................................   27 
Chapter 5—AIR FORCE PROCEDURES WHEN RECEIVING MIPRS    28 
1.  Performing Air Force Activity.  ...............................................................................   28 
2.  Performing Agency FMA responsibilities. ..............................................................   28 
3.  Accepting MIPRs.  ...................................................................................................   28 

4  AFI65-118  8 APRIL 2020 
5.4.  Accepting Reimbursable MIPRs, CAT I. ................................................................   28 
5.5.  Accepting Direct Cite MIPRs, CAT II.  ..................................................................   29 
5.6.  Year End Procedures.  .............................................................................................   29 
5.7.  Stages of Accounting for Performing Activity.  ......................................................   29 
Attachment 1—GLOSSARY OF REFERENCES AND SUPPORTING INFORMATION    30 
Attachment 2—PROCESS FLOWCHART FOR REQUESTING ACTIVITY    44 
Attachment 3—CHECKLISTS FOR DD FORM 448 AND REQUIREMENTS PACKAGE 
REVIEW    52 
Attachment 4—MIPR FOOTNOTES    58 
Attachment 5—BUSINESS RULES FOR USE WITH FOOTNOTES 2A AND 2B    60 
Attachment 6—INTERAGENCY AGREEMENT/SUPPORT AGREEMENT BUSINESS 
RULES FOR USE WITH FOOTNOTE 2A    62 
Attachment 7—INTERAGENCY ACQUISITION DETERMINATION DOCUMENT & 
ECONOMY ACT DETERMINATION AND FINDINGS EXAMPLE 
TEXTS    64 
Attachment 8—EXAMPLE - DD FORM 448, MILITARY INTERDEPARTMENTAL 
PURCHASE REQUEST (MIPR)    68 
Attachment 9—EXAMPLE—DD FORM 448-2, MILITARY INTERDEPARTMENTAL 
PURCHASE REQUEST (MIPR) ACCEPTANCE    70 
Attachment 10—INITIAL REQUEST FOR DD FORM 448-2 FOR DEOBLIGATION OF 
REMAINING FUNDS    71 
Attachment 11—EXAMPLE--FINAL REQUEST FOR DD FORM 448-2 FOR 
DEOBLIGATION OF REMAINING FUNDS    72 
Attachment 12—EXAMPLE--DEOBLIGATION MEMORANDUM    73 
 
   

AFI65-118 8 APRIL 2020 5

Chapter 1

OVERVIEW

1.1. Acquisition and MIPR Types.

1.1.1. Assisting Agencies. These are organizations that can provide supplies, services, and/or

acquisition requirements in support of the mission. There are three categories of assisting

agencies acquisitions: intra-agency, intra-Air Force, and interagency. All are key purchase

options using DD Form 448, Military Interdepartmental Purchase Request (MIPR).

1.1.1.1. Intra-Agency Acquisition Using a DD Form 448. Requirements are obtained from

an agency/organization outside of the Air Force but within the Department of Defense

(DoD). These agencies/organizations may be able to provide military-related supplies and

services or can procure supplies and services on behalf of the Air Force. For example, an

Air Force unit sends a MIPR to the Army and an order is placed for supplies/services for

the Air Force from an Army existing contract. The Army is the intra-agency performing

agency.

1.1.1.2. Intra-Air Force Acquisition Using a DD Form 448 or AF Form 9, Request for

Purchase, or AF Form 185, Project Order. Other Air Force organizations may be able to

provide available supplies and services or can procure supplies and services on a contract.

See Table 3.1 Creation of Direct Cite (Category (CAT) II) MIPR for the correct Air Force

to Air Force purchase request/customer order.

1.1.1.3. Interagency (Non-DoD) Acquisition using a DD Form 448. Requirements are

obtained from a Federal agency outside DoD. Interagency acquisitions may be used only

when an interagency acquisition is in the best interest of the Air Force. Department of

Defense (DoD) Financial Management Regulation (FMR) Volume 11A, “Reimbursable

Operations Policy,” Chapter 3, “Economy Act Orders” calls for the use of Fiscal Service

(FS) Forms 7600A (General Terms and Conditions) and B (Order). Interagency acquisition

general terms and conditions are set forth on an FS 7600A. Once the Air Force system

comes online to the Department of the Treasury’s G-Invoicing system, interagency

acquisition orders based on those general terms and conditions will be placed on an FS

7600B. Until that time, interagency acquisition orders based on those general terms and

conditions may be placed on a DD 448 and may be accepted on a DD 448-2 or on other

documented evidence of acceptance.

1.2. MIPR Categories. There are two categories of MIPRs, reimbursable and direct cite. Both

categories can be used on one MIPR. Generally, the performing agency and the program manager

(PM) negotiate whether the order will be reimbursable or direct cite.

1.2.1. Reimbursable Order category I (CAT I): The performing agency uses the additional

spending authority created by the Unfilled Customer Order (UFCO) recorded in the accounting

system to fill the order or perform the service. NOTE: Due to unique mission requirements,

any funding requests sent via MIPR or Interagency Agreement (IAA) to SAF/FMBIB for

6 AFI65-118 8 APRIL 2020

processing must follow the annual 'Guidelines for Sending Funds to SAF/FMBIB'. For

assistance, email the SAF/FMBIB Budget Execution office at usaf.pentagon.saf-

[email protected]. The Defense Finance and Accounting Service (DFAS) will

process billings to reimburse the assisting/servicing agency using the requiring activity’s funds

cited on the MIPR. The MIPR number is the source document number throughout the life of

the acquisition. (T-0)

1.2.2. Direct Cite Order category II (CAT II): The performing agency records the fund cite on

the resulting contract or travel order. DFAS pays the performing contractors directly from the

requiring activity’s fund cite. The contract number is the source document number throughout

the life of the acquisition. (T-0)

1.3. Interagency Acquisition Statutory Authorities. Requiring activities must understand the

authority by which they are able to request and obtain support from a non-defense agency. The

PM may consult their legal support team to confirm that the performing agency has a statutory

authority to enter into the general terms and conditions of the agreement and to accept the order.

The FS 7600A and the DD Form 448 shall include the appropriate footnote. See Attachment 4,

MIPR Footnotes. (T-1)

1.3.1. Title 31 United States Code Section 1535, as amended (commonly referred to as the

'Economy Act'), authorizes non-defense federal agencies support to the Air Force only when

no other statutory authority exists. Cite this authority using Footnote 8 or 9 of Attachment 4.

Economy Act interagency orders must be supported by a written determination and findings

(Defense Federal Acquisition Regulation Supplement (DFARS) Subpart 217.5). (T-0) See

Attachment 7, Interagency Acquisition Determination Document & Economy Act

Determination and Findings Example Texts.

1.3.1.1. DoD Economy Act Orders. Performance of a requirement must be supported by

documented evidence of a formal agreement between the requiring activity and supporting

activity. (T-1). When there is no agreement in place, the PM must work with the agreement

manager to negotiate an agreement for the required support. (T-3). See AFI 25-201, Intra-

service, Intra-agency, and Inter-agency Support Agreements Procedures.

1.3.1.2. Determinations and Findings (D&F) Requirement. Economy Act orders sent to a

non-DoD agency require written approval in the form of a D&F signed by a warranted

contracting officer (DoD Financial Management Regulation (FMR), Volume 11A,

Reimbursable Operations Policy, Chapter 3, paragraph 030501). A D&F is always required

for Economy Act agreements with entities outside of the DoD (Federal Acquisition

Regulation (FAR) Part 17 Subpart 17.502-2, “The Economy Act”). (T-0). The requesting

activity contracting office can advise the PM on the proper staffing of the D&F. See

Attachment 7.

1.3.1.3. Requirement for Certification of Compliance with DoD Procurement Regulations

and Requirements. A nondefense agency may be asked to conduct an acquisition on behalf

of DoD in excess of the simplified acquisition threshold. This applies only if the head of

the nondefense agency conducting the acquisition on DoD’s behalf has certified that the

agency will comply with applicable procurement requirements for that fiscal year

applicable to the procurement of supplies and services on behalf of DoD. If a certification

of compliance is needed, it must include ensuring the manner in which the supplies and

services administered are adequate to ensure compliance with the FAR, DFARS DoD Class

AFI65-118 8 APRIL 2020 7

Deviations, DFARS Procedures, Guidance and Information (PGI) and other provisions of

the FAR Part 17 Subpart 17.703. Agencies that have provided annual certifications are

listed at http://www.acq.osd.mil/dpap/cpic/cp/interagency_acquisition.html. This

requirement is in addition to the D&F requirements of FAR Part 17 Subpart 17.502. (T-0).

1.3.2. The Non-Economy Act authorities include, but are not limited to the following:

1.3.2.1. Acquisition Services Fund. The Acquisition Service Fund was established by the

General Service Administration Modernization Act (GSAM) that merged the General

Supply Fund and the Information Technology Fund to carry out functions related to the use

of the Acquisition Services Fund including any functions previously carried out by the

Federal Supply Service and the Federal Technology Service managed by General Service

Administration.

1.3.2.2. Franchise Fund. Franchise Funds were first established by Public Law 103-356,

Title IV, Section 403, to provide common administrative support services on a competitive

and fee basis. Franchise fund programs originated within the Environmental Protection

Agency, Department of Commerce, Department of Veterans Affairs, Department of Health

and Human Services, Department of Interior, and Department of the Treasury. The current

authority to cite to for the Treasury Franchise Fund is Title 31 United States Code (U.S.C.)

Section (§) 322.

1.3.2.3. Authority of Administrator of General Services, Services for executive agencies,

(Title 40 United States Code Section 501). In general, the Administrator of General

Services shall take action for an executive agency to the extent that the Administrator of

General Services determines that the action is advantageous to the Federal Government in

terms of economy, efficiency, or service; and with due regard to the program activities of

the agency. The Secretary of Defense may exempt the Department of Defense from such

an action taken by the Administrator of General Services, unless the President directs

otherwise, whenever the Secretary determines that an exemption is in the best interests of

national security.

1.4. Service Contracts.

1.4.1. Performance-Based Service Acquisitions. The PM must ensure work statements are

approved by the Services Designated Official (SDO) if less than 50 percent of the requirement

(contract or task order), measured in dollars, is not considered performance based.

Furthermore, the PM must obtain SDO approval to release a MIPR to a non-Air Force

organization for the purpose of obtaining contracted services (Air Force Federal Acquisition

Regulation Supplement (AFFARS) Part 5337 Subpart 5337.1702 and AFI 63-138, Acquisition

of Services,). (T-1).

1.4.2. Quality Assurance. MIPRs for services must address quality assurance requirements to

ensure the services rendered meet contract requirements. See FAR Part 46. (T-0). The PM

must develop a plan outlining how he/she is going to assess contractor performance based on

the particular acquisition. The outline must contain details on what standards the contractor

will be held to, as well as detailed plans for oversight and management of the contract. The

servicing contracting office can provide advice for quality assurance planning. (FAR Part 46

Subpart 46.102, Quality Assurance Policy, and FAR Part 46 Subpart 46.202, Types of Contract

Quality Requirements)

8 AFI65-118 8 APRIL 2020

1.4.3. Severable Services. Severable services are those that are continuing and recurring in

nature and provide the Department of Defense a benefit each time the service is performed

(e.g., maintenance services). Title 10 U.S.C. § 2410a, Contracts for periods crossing fiscal

years: severable service contracts; leases of real or personal property, permits a contract for

the performance of severable services to begin in one fiscal year and end in the next provided

the period of performance does not exceed one year. Thus, the performance of severable

services must begin when the funds are available for obligation and may not exceed one year.

Therefore, annual appropriations provided to a performing agency that have expired shall be

deobligated unless the performance of the services requested began during the funds period of

availability and the period of performance does not exceed one year. (T-0). The annual

appropriation from the earlier fiscal year may be used to fund the entire cost of the one-year

period of performance; however, an annual appropriation may not be used to enter into a

severable services agreement where the period of performance for services requested is entirely

in the following fiscal year. In no instance may the period of performance extend beyond

September 30th of the subsequent year for services funded with annual appropriations. (T-0).

1.4.4. Non-Severable Services. Non-severable services are funded with appropriations

available for obligation at the time the contract is awarded. The period of performance may

extend across fiscal years. Funds provided to a performing agency that become excess are

deobligated when identified. (T-0). See Attachment 10, Example—Initial Request for DD

Form 448-2 for Deobligation of Remaining Funds.

AFI65-118 8 APRIL 2020 9

Chapter 2

ROLES AND RESPONSIBILITIES

2.1. Secretary of the Air Force/Financial Management (SAF/FM). SAF/FM is responsible for

the development of policy and guidance on the use of MIPRs to ensure compliance with statute

and sound management process.

2.2. Air Force Judge Advocate (AF/JA). AF/JA, through the Administrative Law Directorate

(AF/JAA), provides mandatory legal review/coordination for all departmental publications and

actions that change departmental publications (interim changes, rewrites, policy, and guidance

memorandum. AF/JAA will coordinate and recommend separate SAF/GC review of publications

not otherwise requiring SAF/GC review, as necessary. (T-1).

2.3. Office of the Air Force General Counsel (SAF/GC). SAF/GC, through its Fiscal, Ethics

and Administrative Law Division (SAF/GCA), provides mandatory legal review/coordination for

all publications requiring Secretary of the Air Force coordination and/or signature.

2.4. Assistant Secretary of the Air Force for Acquisition, Technology and Logistics

(SAF/AQ). SAF/AQ will coordinate with SAF/FM in the development of policy and guidance on

the use of MIPRs to ensure compliance with statute and sound management process. (T-1).

2.5. Headquarters U.S. Air Force Logistics, Engineering and Force Protection

(AF/A4). HAF/A4 is responsible for procedures implementing and managing support agreements

between: AF units; the AF and a DoD component (i.e., inter-service or intra-agency support

agreement); or a non-DoD Federal Agency or federally-recognized Indian tribe (i.e., inter-agency

support agreement). SAF/A4 is the OPR for AFI 25-201. This AFI provides appropriate references

to AFI 25-201 in support of MIPR completion.

2.6. MAJCOM/FOA/DRU Commanders.

2.6.1. Major Command (MAJCOM), Field Operating Agency (FOA), and Direct Reporting

Unit (DRU) commanders will submit on an annual basis a MIPR Audit Report - MAJCOM-

level. The report is due NLT 15 November. The report will provide summary level detail on

all installation-level MIPR audit reports conducted on their respective bases in the previous

Fiscal Year (FY). The report format template is found in SAF/FMFC (Air Force Accounting

and Finance – Accounting (AFAFO-A)) SharePoint’s “Military Interdepartmental Purchase

Request (MIPR)” section (https://org2.eis.af.mil/sites/13465/SitePages/MIPR.aspx).

Submit report via email to SAF/FMFC (AFAFO-A) workflow email: usaf.pentagon.saf-

fm.mbx.saf-fmfc[email protected]). (T-1)

2.7. Commanders or Directors of Requesting Activities at All Levels.

2.7.1. Adequately resource PMs and support staff to accomplish all tasks associated with this

instruction.

2.7.2. Facilitate the support agreement process and enter into support agreements associated

with the MIPR process.

10 AFI65-118 8 APRIL 2020

2.8. Program Managers (PM). The PM is responsible for managing the MIPR process, for

managing all goods and services procured by the MIPR or resulting contract, and for tracking

funding through all stages of accounting until the order is complete and remaining funds are

deobligated. This includes ensuring that all MIPRs are properly prepared, coordinated, and

approved. (T-0). PM responsibilities include, but are not limited to:

2.8.1. Consult with the requesting activity contracting office to determine if the requirement

may be satisfied in-house, or through an inter/intra-agency acquisition using a MIPR. Early

interaction is critical to selecting the ideal acquisition solution to meet Air Force requirements.

(T-1).

2.8.2. Consult with Small Business Professional (SBP) early in the acquisition process to assist

with market research, acquisition planning, and advice on small business programs and

capabilities.

2.8.3. Obtain the agency certification of compliance

(http://www.acq.osd.mil/dpap/cpic/cp/interagency_acquisition.html) in accordance with

FAR 17.702 and provide that, along with all other required MIPR documentation if the

proposed MIPR will be issued to a non-defense agency. (T-1).

2.8.4. If the proposed interagency agreement will be issued to a non-defense agency, evaluate

and document in writing, whether using a non-defense contract is in the best interest of Air

Force. Factors to be considered include— satisfying customer requirements, schedule, cost

effectiveness (taking into account discounts and fees), and contract administration (including

oversight) (DFARS PGI Subpart 217.7, Interagency Acquisitions; Acquisitions by Non-defense

Agencies on Behalf of the Department of Defense). (T-0). Obtain contracting officer signature

on the Determination and Findings.

2.8.5. Collect and report data in accordance with paragraph 2.8.18. 2.8.19., 2.8.25.2., and

2.8.25.3. (T-1).

2.8.6. Ensure the requirement is valid.

2.8.7. Consult with Financial Management Analysis (FMA) and the Resource

Advisor/Manager (RA/RM) to determine bona fide need in terms of purpose, time and amount.

Unlawful obligation and expenditure of appropriated funds can result in a violation of the

AntiDeficiency Act at Title 31 United States Code Section 1341. (T-1).

2.8.8. Ensure compliance with AFI 63-138 including requirements to obtain a Requirements

Approval Document and Services Designated Official authorization to release the MIPR. (T-

1).

2.8.9. Oversee the creation of the 7600A if the proposed interagency agreement will be entered

into with a non-defense agency. Oversee the creation of the DD Form 448 in the Automated

Business Services System (ABSS), DEAMS (or an approved automated system that interfaces

with ABSS or DEAMS). Ensure all agreements for standard and non-standard levels of support

are in place. Include the applicable requirements in the footnotes shown in Attachment 4,

MIPR Footnotes, Attachment 5, Business Rules For Use With Footnotes 2A and 2B, and,

when applicable, the required documentation in Attachment 6, Interagency

Agreement/Support Agreement Business Rules for use with Footnote 2A, are in block 9b of the

DD Form 448 and are attached as required. (T-1).

AFI65-118 8 APRIL 2020 11

2.8.10. Prepare the MIPR requirements package in compliance with Attachment 3, Checklist

for DD Form 448 and Requirements Package Review, and Attachment 7, Interagency

Acquisition Determination & Economy Act Determination and Findings Example Texts. The

documents in the MIPR package, including the Attachment 3 Checklist for DD Form 448 and

Requirements Package Review, must be attached to the DD Form 448 in ABSS or DEAMS

and be reviewed by requesting activity contracting and finance office. (T-0).

2.8.11. Flow MIPR and requirements package through ABSS or DEAMS for required

reviews. (T-1).

2.8.12. Route the MIPR package to the servicing activity. The PM signature must be on

Footnote 1 and included in the MIPR package sent to the performing activity. (T-1).

2.8.13. When requested by the servicing activity, approve or deny any requests for advance

payment or advance billing in accordance with specific appropriation or law authorizing the

advance and notify the servicing activity in writing of the PM’s decision. Retain request and

approval/denial with MIPR file documentation. (T-0).

2.8.14. Receive DD Form 448-2, within 30 days of issuance. Review for correctness and note

additions from the performing agency. Verify appropriate advance payment or advance billing

approvals are annotated in block 13. (T-1).

2.8.14.1. For CAT I, Reimbursable MIPR provide copy of DD Form 448-2 to the RA/RM

and FMA. (T-1).

2.8.14.2. For CAT II, Direct Cite MIPR, provide a copy of the DD Form 448-2 and

contract to the RA/RM and FMA. (T-1).

2.8.15. Review and follow-up on MIPRs where the DD Form 448-2 has not been received

within 30 days of DD Form 448 MIPR issuance. (T-0).

2.8.16. Follow-up on contract award documents that have not been received from the servicing

activity within 90 days, or by 20 September, whichever occurs first. (T-1).

2.8.17. Participate in the evaluation of responses to solicitations as required by the servicing

activity. (T-2).

2.8.18. Obtain a copy of the contract for direct cite orders from the performing agency, and

submit a copy to the RA/RM and FMA. (T-1).

2.8.19. Obtain reports on open MIPR commitments, obligations, and expenditures from the

RA/RM. (T-1).

2.8.20. Ensure proper payment procedures are used for accounting of MIPR expenditures. See

Chapter 4, Advance Payment/Advance Billing and Accounting Procedures. (T-0).

2.8.21. Ensure MIPR number is referenced on all documents received from the performing

agency. (T-0).

2.8.22. Ensure the MIPR package is accurate and complete prior to routing in DEAMS or

Legacy system. (T-0)

2.8.23. Establish and verify proper routing for MIPR packages through ABSS or DEAMS.

2.8.24. Reconcile MIPRS in accordance with paragraph 3.11.

12 AFI65-118 8 APRIL 2020

2.8.25. When a Contracting Officer’s Representative (COR) is required, ensure the COR is

designated and trained in accordance with AFFARS Part 5301 Subpart 5301.602-2, Career

Development, Contracting Authority, and Responsibilities. (T-1). COR responsibilities

include, but are not limited to:

2.8.25.1. Promptly process, or ensure the designated RA or COR processes receiving

reports and invoices in accordance with procedures established by the PM and the

performing agency contracting officer. (T-0).

2.8.25.2. Obtain reports on open MIPR commitments, obligations, and expenditures from

the RA/RM. (T-1).

2.8.25.3. Maintain copies of all documentation in accordance with Air Force Manual 33-

363. Maintain copies of all documentation within the Comprehensive Cost and

Requirement (CCaR) system, Financial Management Suite (FMSuite) Open Document

Analysis (ODA) Module - Remarks and Attachments Tab, or DEAMS. (T-1).

2.9. Requesting Activity Resource Adviser/Resource Manager (RA/RM). The RA/RM

assists the PM, unit commander and/or organization manager in planning and executing annual

budgets by managing the organization’s finances. RA/RM responsibilities include, but are not

limited to:

2.9.1. Serve as unit primary point of contact with FMA. (T-0).

2.9.2. Ensure source of funds is correct and funding is available to support the purchase. (T-

0).

2.9.3. Ensure footnotes in Attachment 4, MIPR Footnotes, Attachment 5, Business Rules for

Use with Footnotes 2A and 2B, and, when applicable, the required documentation in

Attachment 6, Interagency Agreement/Support Agreement Business Rules for use with

Footnote 2A, are in block 9b of the DD Form 448 and are attached as required. (T-0).

2.9.4. Ensure the 7600A (where needed) and the DD Form 448 are properly prepared,

including a specific and definite description of the goods or services required and the required

start date, end date, and date of expiration of the funding source. See Attachment 9, Example—

DD Form 448-2, Military Interdepartmental Purchase Request (MIPR) Acceptance. (T-0).

2.9.5. For reimbursable MIPRs ensure DD Form 448-2 is received from the performing

activity and submit a copy to FMA for obligation by DFAS. (T-0).

2.9.6. For direct cite MIPRs, submit a copy of the contract award document to FMA for

obligation by DFAS. Verify the contract number is recorded in the obligation. If not, notifies

FMA to request a correction. (T-0).

2.9.7. Ensure advance payments or advance billings are properly posted, aged, and liquidated

in the accounting system and works with FMA and DFAS to correct any discrepancies. Refer

to Chapter 4 for further clarification of procedures. (T-0).

2.9.8. Review unobligated commitments monthly to confirm if requirements are still needed.

(T-0).

2.9.9. Perform follow-up on outstanding invoices and receiving reports. (T-2).

AFI65-118 8 APRIL 2020 13

2.9.10. Assist the PM in monitoring MIPR status through the entire MIPR life cycle and stages

of accounting, including ensuring proper aging and liquidation, and return of funds for

erroneously disbursed transactions. (T-0).

2.9.11. Promptly process receiving reports and invoices in accordance with procedures

established between the PM and the performing activity. (T-0).

2.9.12. Coordinate with PM any MIPR amendments generated for increases/decreases. (T-1).

Attach supporting documentation for the MIPR and MIPR amendment in CCaR/ABSS,

FMSuite ODA module, or DEAMS. (T-1). If supporting documentation is already available in

electronic format, RA/RM can reference where the particular documents are located. Once

coordinated, provide to FMA for submission to DFAS. Verifies accounting transaction is

complete and accurate. (T-0).

2.9.13. Assist the PM in close-out of contracts, CAT I, Reimbursable and CAT II, Direct Cite

MIPRs. (T-1).

2.10. Requesting Activity Contracting Office. The requesting activity contracting office

provides business advice and acquisition support. Contracting office review is required on all

MIPRs that will result in a contract action. (T-1). Specifically, warranted contracting officers are

required to sign any necessary Determination and Findings that support an Economy Act

agreement. Warranted contracting officers must also review all MIPR packages for compliance on

requirements greater than $500,000 that will result in a contracting action (DoD FMR, Volume

11A, Chapter 18). (T-0). Contract specialists are authorized to review MIPR packages below that

threshold. Review MIPR and the attached requirements package for completeness. (T-0).

Requesting activity contracting office responsibilities include, but are not limited to:

2.10.1. Determine whether the procurement may be performed by an AF contracting office.

2.10.2. Advise Requiring Activities on fee negotiation, justification and approvals,

determination and findings, SDO approval to release MIPR, and the development of the

acquisition strategy.

2.10.3. Sign the Determination and Findings and review MIPR packages in accordance with

paragraph 3.9.

2.10.4. FMAs may add a contracting office to the ABSS workflow to facilitate electronic

review. DEAMS users may also select the appropriate contracting office. If the requesting

activity contracting office does not have an assigned contracting office, coordinate with FMA

and DEAMS users to establish the appropriate routing process within ABSS and DEAMS to

facilitate electronic review.

2.11. Small Business Professional. In support of the MIPR process the SBP responsibilities

include, but are not limited to:

2.11.1. Engage early with the PM, Contracting, and FM in the acquisition process to assist

with market research, acquisition planning, and advice on small business programs and

capabilities, to ensure the best solution for the Air Force requirement. (T-1)

2.11.1.1. For outbound MIPRs, support the acquisition team in documenting the small

business consultation and review as denoted in Attachment 3, Checklist for DD Form 448

(MIPR) and Requirements Package Review. (T-1)

14 AFI65-118 8 APRIL 2020

2.11.1.2. For In-bound MIPRs accepted by the Air Force, comply with AFI 90-1801, Small

Business Programs, and review and make recommendations on the DD Form 2579, Small

Business Coordination Record, in accordance with DFARS Part 19 and Defense FAR

Supplement (DFARS), current edition PGI Subpart 253.219. (T-1)

2.12. External Reviewers. External reviewers are functional subject matter experts with whom

the PM must coordinate to obtain approvals to procure certain items (construction, network IT

equipment & software, hazardous material). (T-0) When required, external reviewer will ensure

each MIPR conforms to current policy related to their functional area. (T-0)

2.13. Financial Management Analysis (FMA). FMA is a part of the Comptroller organization

that performs budget review and funds certification activities. FMA responsibilities include but

are not limited to:

2.13.1. Ensure required footnotes in Attachment 4 of this instruction are loaded into the system

that generates the MIPR. (T-1).

2.13.2. Provide training to new users on creating MIPRs. Establish the proper document flow

for the requesting activity PM. (T-1). Refer to training in paragraph 2.13.3.

2.13.3. Provide training to units supported by their office, including medical and tenant units.

(T-1). At a minimum, training must include roles, local business process, required MIPR

documentation requirements (ex. footnotes and support agreements), document retention

requirements, and current policies and procedures. Keeping abreast of current policies and

procedures is essential to Financial Improvement and Audit Readiness. Local financial

management personnel may tailor training requirements to meet local needs. (T-1)

2.13.4. Advise the PM in determining bona fide need in terms of purpose, time, and amount.

(T- 2).

2.13.5. Ensure Attachment 5, Business Rules for use with Footnotes 2A and 2B, is attached to

the MIPR and complete. (T-0).

2.13.6. Ensure funds are available and the accounting appropriation is correct. (T-1).

2.13.7. Certify funds and input MIPR commitment transactions into the accounting system.

Before certifying funds on commitment documents such as MIPRs, the funds certifier must

complete funds certifying official training, have a training certificate, Delegation of Authority

Letter on file by the Comptroller. (T-1).

2.13.8. When a pseudo Treasury Account Symbol (TAS) is used and a MIPR is issued to a

non-Air Force or a DEAMS performing activity, create the MIPR or amendment in an

approved automated system such as ABSS. Cite the pseudo TAS in Block 14 and the "true"

TAS in Block 9 (b) of the MIPR. Pseudo account symbols can be determined in the Financial

Management Data Quality Service application using the Fund Code (Legacy) choice. (T-1).

2.13.9. Before certifying the MIPR in ABSS, create a manual MIPR citing the “true” TAS in

Block 14. (T-0)This is the ‘Companion’ MIPR which will be submitted to the non-Air Force

Performing Agency for acceptance. Include the pseudo TAS in Block 9 (b). (T-0) All other

information contained in the ‘Companion’ MIPR will mirror the original MIPR generated

through ABSS. (T-1) Upload the manually created "companion" MIPR in ABSS as a

supplemental file prior to certification in ABSS. (T-1).

AFI65-118 8 APRIL 2020 15

2.13.10. An additional signature block will be included on the ‘Companion’ MIPR. The FMF,

FMA, or FMAL Chief will review and approve the citation of the “true” TAS before funds are

certified. (T-1).

2.13.11. Copies of the ‘Companion’ MIPR, ABSS, or an approved automated system created

MIPR, amendment and all acceptances (DD 448-2) will be uploaded to CCaR, FMSuite ODA,

or DEAMS. (T-1).

2.13.12. For CAT I, Reimbursable MIPRs, submit the ABSS-generated MIPR, ‘Companion’

MIPR, and acceptances to DFAS for obligation or de-obligation. CAT II, Direct Citation MIPR

obligations will be processed automatically through DFAS-managed tables which will change

the appropriation from the “true” TAS to the pseudo TAS for execution in the General

Accounting and Finance System (GAFS-BQ). (T-1).

2.13.13. Perform follow-up actions with RA/RM on outstanding receiving reports. (T-2).

2.13.14. Ensure DD Form 448-2 is received from the PM or RA/RM. (T-1).

2.13.15. Submit DD Form 448-2 to DFAS on reimbursable MIPRs to record obligation. (T-

1).

2.13.16. For direct cite MIPRs, submit a copy of the contract award document to DFAS to

record the obligation. (T-1).

2.13.17. Monitor MIPRs for opportunities to decommit or deobligate remaining balances and

work with RAs to obtain proper deobligation documentation and forward to DFAS for input.

(T-2).

2.13.18. Assist RA/RM with their review of unobligated commitments. (T-1).

2.13.19. Assist RA/RM with correcting any accounting transactions (i.e., charging expensed

transactions to an advance, proper aging and liquidation and decommit funds). (T-1).

2.13.20. Ensure the MIPR package is accurate and complete prior to routing in DEAMS or

Legacy system.

2.14. Defense Finance and Accounting Service (DFAS). DFAS is the DoD accounting firm and

works closely with the FMA to ensure the propriety of payments and the accuracy of accounting

records. The following are DFAS actions related to MIPRs:

2.14.1. Obligate funds in the accounting system using the DD Form 448-2 for reimbursable

(CAT I) MIPRs.

2.14.2. Obligate funds in the accounting system using the contract for direct cite (CAT II)

MIPRs.

2.14.3. Review DD Form 448-2, Block 13, Remarks, for PM approval of advance payment or

advance billing to ensure proper identification of type of vendor and Budget Activity Code

(BPAC).

2.14.4. Work with the FMA to ensure propriety of payments and accuracy of accounting

records.

16 AFI65-118 8 APRIL 2020

2.14.5. Process increases in funding requirements and deobligates remaining balances upon

receipt of DD Form 448-2 or deobligation memorandum. Mechanization of Contract

Administration Services (MOCAS) contracts require a modification or DD Form 1594,

Contract Completion Statement, to close.

2.14.6. Receive invoices and receiving reports and makes payments.

2.14.7. For Reimbursable, CAT I MIPRs make payment to non-DoD agency for interagency

acquisitions and reimbursement to DoD agency for intra-agency MIPRs.

2.14.8. Make payment directly to company listed in contract for Direct Cite, CAT II MIPRs.

AFI65-118 8 APRIL 2020 17

Chapter 3

MILITARY INTERDEPARTMENTAL PURCHASE REQUEST PLANNING,

DEVELOPMENT, AND CLOSEOUT

3.1. Applicability

3.1.1. The policies, procedures, reviews, and approvals put forth in this instruction apply to

all DD Forms 448 and MIPR requirements packages regardless of dollar value, purpose, and

operating/contingency locations. The PM shall ensure all MIPRs are properly prepared and

coordinated in accordance with this instruction and manage the requirement throughout the

MIPR life cycle. (T-0). See Attachment 2 Figure A2.1, Process Flowchart for Requesting

Activity, for an overview of the MIPR process. Examples are found in Attachment 8, Figure

A8.1, Example of DD Form 448, Attachment 9, Example—DD FORM 448-2, Military

Interdepartmental Purchase Request (MIPR) Acceptance, and Attachment 10, Initial Request

for DD Form 448-2 for Deobligation of Remaining Funds.

3.2. Limitations.

3.2.1. MIPRs shall not be used to violate provisions of law or to circumvent conditions and

limitations imposed on the use of funds. For example, a MIPR shall not be used to extend the

period of availability of the cited funds nor written based on another MIPR’s funding (‘MIPR-

on-MIPR’).

3.2.2. Air Force will not issue or accept a MIPR from any organization unless that organization

receives appropriated funds from the US Congress. Air Force will not issue or accept a MIPR

from North Atlantic Treaty Organization or any foreign country. (T-0).

3.2.3. Air Force MIPRs must adhere to the government-wide business rules set forth by the

Office of Management and Budget. (T-0). The specific business rule requirements are

incorporated in the requirements of this instruction at Attachment 5.

3.2.4. The requiring activity program manager (PM) must ensure that purchases ordered using

a DD Form 448/448-2, comply with all DoD acquisition and financial regulations as well as

DFAS and Air Force policies. (T-0). All personnel in the ABSS or DEAMS review,

coordination and approval process play a key functional role to ensure the MIPR package

conforms to regulation.

3.2.5. Air Force funds that expire in a given fiscal year must be awarded to a contract or task

order within 90 days of acceptance of the MIPR or by 30 September of the given fiscal year,

whichever occurs first. (T-1) If a contract or task order is not awarded by September 15th, for

funds that expire in the given year, the requiring activity should reevaluate their requirements

and expected actions by the servicing agency, and deobligate funds as appropriate, to allow

use of the funds prior to expiration. For goods, delivery may not be specified to occur in the

year subsequent to funds availability unless a lead-time or stock-level exception applies.

3.2.6. The PM will not approve advance payments or advance billings for goods or services

orders unless explicitly required to do so by an appropriation or other law. (T-0). The specific

appropriation or law authorizing the advance must be cited on the obligation and interagency

agreement documents for those few exceptions where advances are authorized. (T-0)

18 AFI65-118 8 APRIL 2020

3.2.7. Classified MIPRs have separate workflows that support their mission and may not flow

through the requesting activity contracting office because of security concerns. These still must

abide by DoD acquisition and financial regulations. (T-0) Process flows on classified

documents will differ depending upon who the requesting organization is and where the

supporting organization is located. (T-1)

3.3. Market Research and Acquisition Planning. The requiring activity shall conduct market

research appropriate to the circumstances on a continual basis to support requirements

development to enable acquisition planning (See FAR Part 10, and Defense Standardization

Program SD-5, Market Research - Gathering Information about Commercial Products and

Services). (T-0). The PM shall contact requiring activity RM/RA, external reviewers, FMA, SBP,

and contracting office as soon as a requirement is known (18-24 months prior to acquisition) to

collaborate on market research and acquisition planning. (T-1). The requesting activity contracting

office will help determine if the requirement can be satisfied under a new or existing Air Force

contract, or through an inter/intra-agency acquisition via MIPR. (T-1). Early engagement is critical

to selecting the ideal acquisition solution, especially when considering the conversion of existing

small business contract requirements for performance by other than small businesses. If the

contracting office determines that an assisted acquisition is necessary and a servicing agency

contract will meet the need, a MIPR package may be initiated. This must include the POC name

and the date of MIPR consultation for each supporting office). (T-1).

3.4. Small Business Professional. If the requesting/sending SBP verifies that small business (es)

is (are) capable of performing the work required, then the contracting office will consider awarding

the contract in-house instead of a MIPR. (T-1).

3.5. Purchase Options. There are various contract vehicles utilized to purchase goods and

services. MIPRs are not the only purchase option.

3.5.1. Purchases Using the Government Purchase Card. Organizations shall maximize the use

of the Government Purchase Card as the most efficient and economical means when making

simplified acquisition purchases. (T-1). PMs shall contact the requiring activity Agency or

Organization Program Coordinator (A/OPC) for assistance. (See AFI 64-117, Government

Purchase Card Program). (T-1).

3.5.2. Miscellaneous Obligation Reimbursement Documents (MORDs). The requesting entity

will no longer send MORDs off the installation to fund direct cite or reimbursable customer

orders, nor will the performing organization accept MORDs as a valid customer order. (T-1).

3.5.3. AF 616 Form, Fund Cite Authorization (FCA). The requesting entity will no longer use

AF 616 Form to fund reimbursable customer orders nor will the performing organization

accept AF 616 Form as a valid reimbursable customer order. DD Form 448 or AF Form 185

are the correct forms for reimbursable customer orders. (T-1).

3.5.4. Acceptance of Reimbursable Customer Orders. Off installation reimbursable customer

orders from an Air Force, Air National Guard, or Air Force Reserve unit to another must be

made on a DD Form 448 or AF Form 185 and accepted on a DD Form 448-2 or AF Form 185,

respectively. (T-1).

AFI65-118 8 APRIL 2020 19

3.6. MIPR Initiator. Trained RA/RMs and other trained personnel may initiate a DD Form 448

at the request of a PM. However, the PM is always responsible and accountable for the MIPR

package.

3.6.1. The MIPR initiator must attend required training and receive access from FMA for the

applicable system(s). (T-0).

3.6.2. The MIPR initiator’s name appears in Block 9b of the DD Form 448. Note: For

separation of duties, the MIPR initiator, MIPR approver and fund certifier will be three

separate people. (T-0).

3.7. Completing the MIPR Package. Completing a MIPR package is an extensive process. The

PM must plan each acquisition and adequately resource the acquisition team to ensure compliance

with statute and regulation. For a complete list of required MIPR package elements, see

Attachment 3. The requiring activity PM must use the Automated Business Services System

(ABSS), another automated system that interfaces with ABSS, or Defense Enterprise Accounting

and Management System (DEAMS) to create the DD Form 448. (T-0). Once created, the DD Form

448 flows through ABSS or DEAMS for the required policy coordination and reviews

implemented in this instruction. The requiring activity PM, or designated resource manager is

responsible for providing the MIPR package from ABSS or other automated system to the

performing agency.

3.8. Select DD Form 448 and System Information. Manual preparations of MIPRs are only

authorized when the use of ABSS or DEAMS are unavailable to produce a compliant requirement

or disconnected environment.

3.8.1. Description of Requirement. Include on the DD Form 448, a specific and definite

description of the goods or service required, period of performance, or estimated delivery date,

and expiration date of the funding source. (T-0). The period of performance, or estimated

delivery date must be actual or estimated dates (e.g. estimated delivery date 31 December

2019). Do not use phrases such as, “date of certification” or “award date through 365 days.”

The expiration date of the funding source must also be specific. For example, if one-year fiscal

year 2019 funds are being used, “funds expire on 30 Sep 2019

3.8.2. Service or Administrative Fees. Some Servicing Activities charge separate service or

administrative fees (direct and indirect) related to the acquisition. These fees are sometimes

included in the costs of the goods or services provided, while others are identified separately.

The Requesting Activity Program Manager must clearly identify all fees early in the planning

process and include a separate line of accounting (LOA) on the MIPR with Element

Expense/Investment Code (EEIC) 75655 (GAFS) or Object Class/Sub Class 2531155

(DEAMS). Separation of the fee from the price of the goods or services, and the acceptance

of the MIPR with a separate LOA for the fee, is at the discretion of the servicing agency.

3.8.3. Support Agreements. MIPRs are supported by a written and signed support agreement

(DD 1144 Support Agreement, or Memorandum of Agreement) between the requesting and the

servicing activities. Refer to AFI 25-201 for the information to include in the support

agreement.

20 AFI65-118 8 APRIL 2020

3.8.4. Unique Requirements. The PM must include DoD-unique clauses and comply with all

DoD regulations, directives, and other Office of Management and Budget (OMB) and public

law requirements for all interagency (non-defense) purchase agreements. (T-0). The requesting

activity contracting and legal office may assist in identifying these requirements.

3.8.5. G-Invoicing. The Treasury's G-Invoicing system (formerly named the Invoice

Processing Platform) will be used to negotiate, broker, and electronically store the General

Terms and Conditions (GT&C) between buyers and sellers for all inter- and intra-

governmental reimbursable transactions as appropriate system capabilities come online. This

requirement is for interagency and intra-agency agreements established during or after Fiscal

Year (FY) 2018, and whose terms extend beyond FY 2018. (T-1).

3.8.5.1. The GT&C relates to the type and specific terms of the agreement.

3.8.5.2. Once a GT&C is created, the system generates an alphanumeric GT&C number.

The GT&C assigned number is required to be manually annotated (GT&C #XXX) on the

reimbursable order (e.g., MIPR) description block in DEAMS or Legacy during the

execution of funds against the agreement.

3.8.5.3. Ensure potential federal trading partners understand the reimbursable order must

contain a GT&C number.

3.8.6. Certification of Compliance. Obtain the agency certification of compliance

(http://www.acq.osd.mil/dpap/cpic/cp/interagency_acquisition.html) in accordance with

FAR Part 17 Subpart 17.702 and provide that, along with all other required MIPR

documentation if the proposed MIPR will be issued to a non-defense agency. (T-1).

3.8.7. Trading Partner Information. A trading partner is either the customer

requiring/requesting organization or the providing/performing organization of a support

agreement for goods or services. This information is crucial to assist in data mining and

intragovernmental elimination processes and is needed when trading occurs with a federal

entity, to include transactions through service contracts. In the current Legacy and DEAMS

environment, the sales code (SC) and buyers side code (BSC) are used to capture this

information. At a minimum, trading partner information must include: LEGACY - (1) Treasury

Account Symbol (TAS), (2) Business Partner Number (BPN) and (3) Agency Location Code

(ALC); DEAMS - (1) Trading Partner Indicator (TP2), (2) Business Partner Number (TP3),

(3) Trading Partner Main Account (TP4), and (4) Trading Partner Sub-Allocation Holder

Identifier (TP5) (if applicable). If the trading partner does not provide this necessary and

critical information, recommend elevation up the chain of command, which could include

MAJCOM or SAF/FMFC assistance.

3.8.8. Direct Cite (CAT II) MIPR Creation. To ensure proper coordination and tracking of

funds, create the DD Form 448 in ABSS, DEAMS, or an approved automated system that

interfaces with ABSS or DEAMS unless both the requestor and provider are on DEAMS. If

both are on DEAMS AF Form 9 must be used. See Table 3.1, Creation of Direct Cite (CAT

II) MIPR, below. Forms created in an automated system are distinguished by marking in the

bottom right corner of the DD Form 448. For example: “Generated by DEAMS.” (T-1).

AFI65-118 8 APRIL 2020 21

Table 3.1. Creation of Direct Cite (CAT II) MIPR.

Direct Cite MIPR (CAT II)

Requestor On

Provider

On*

Form

Comment

DEAMS

Form 9

Create in DEAMS

Legacy

DD 448

Create in DEAMS

Non-AF

accounting

system

DD 448

Create in DEAMS

Legacy

DD 448

Create in ABSS

(contracting uses MIPR

number as PR number)

DEAMS

DD 448

Create in ABSS,

(contracting uses MIPR

number as PR number)

Non-AF

accounting

system

DD 448

Create in ABSS

NOTE: *Provider On is the accounting system where the contract is or will be.

3.9. MIPR Routing and Review.

3.9.1. If your office has been designated as a primary office for a specific product, then the

actual funding MIPR should go through your designated office. If your office receives a MIPR

and it is determined that your organization cannot perform or provide the requested goods or

services, reject it via DD 448-2 by checking block 7, “MIPR ITEM NUMBER(S)

IDENTIFIED IN BLOCK 13, "REMARKS" IS NOT ACCEPTED (IS REJECTED) FOR THE

REASONS INDICATED.”

3.9.2. An Air Force financial analyst must review and certify funds for every MIPR before the

requiring activity releases it to a DoD or non-DoD agency for acceptance. (T-1). All MIPRs

shall be reviewed by the requesting activity external users, financial, contracting and legal

offices prior to sending the order to issue the MIPR. (T-1)

3.9.2.1. The MIPR package (including unfunded planning MIPRs) must be reviewed and

approved by a warranted Air Force contracting officer prior to issuing the MIPR. (T-1) A

contract specialist may perform the review when the MIPR value is $500,000 or less (DoD

FMR, Volume 11A, Chapter 18). Contracting review is not required when the MIPR will

result in no contract action, an administrative action, or when the MIPR is directed by

statute or international agreement. In these cases, the reviewer may simply advance the

request in the accounting system.

3.9.2.2. Funds certifiers will not certify nor will contracting officials perform reviews on

manually created MIPRs. (T-0).

22 AFI65-118 8 APRIL 2020

3.9.2.3. The requiring activity PM with responsibility for the MIPR funds and mission

requirement must date and sign the DD Form 448 hard copy before sending the package to

the performing agency. (T-1).

3.9.3. Review of Air National Guard MIPRs will be conducted by their designated contracting

office. (T-0)

3.10. MIPR Acceptance. Once a performing agency receives a MIPR, it must formally accept

or reject the order represented by the MIPR. (T-0). The performing agencies will accept the order

by completing the DD Form 448-2 and returning it to the PM within 30 days. The performing

agency and PM may use the 30-day period to correct any weaknesses in the MIPR package before

accepting the order. (T-0). All MIPR acceptances must be uploaded by the Performing/Receiving

office as an attachment in either the CCaR system, the FMSuite Open Document Analysis (ODA)

Module for Legacy or the MIPR in the Defense Enterprise Accounting and Management System

(DEAMS). (T-1).

3.10.1. In completing the DD Form 448-2, use the requesting activities document number for

CAT I MIPRs. Include the performing organization’s LOA(s) on the acceptance. If multiple

appropriations and/or organizations are necessary at the time of acceptance to complete a work

order, then all lines of accounting at the Responsibility Center Cost Center (RCCC) level are

required to be included on the acceptance. Sign and forward to the local FMA for review. (T-

0). DoD components must not authorize or incur an obligation or make a disbursement against

anticipated reimbursements. Such actions must be delayed until the applicable customer order

is received from federal government activities and funds are collected from public activities

(DoD FMR Volume 14, Chapter 1, Section 010206.B.7 and additional guidance in SAF/FMF

AFAFO-A Reimbursement Accounting Guidance and Standard Operating Procedures,

Chapter 2, Paragraph 2.2.1.1.B). Note the period of performance for a Reimbursable Order

(CAT I) begins on the date the MIPR is accepted.

3.10.2. The local FMA will verify the performing organization’s LOA(s) and forward on to

their servicing DFAS site to record the unfilled customer order in accounting system. (T-0)

3.11. Reconciliation.

3.11.1. For CAT I Reimbursable MIPRs, the PM is responsible for tracking and reconciling

MIPRs. (T-1).

3.11.2. For CAT II Direct Cite MIPRs the PM is responsible for tracking and reconciling both

the MIPR and any resulting contracts until they are closed. (T-1).Trading partner reconciliation

must occur on a quarterly basis per Treasury Financial Manual, Vol. I, Part 2, Ch. 4700,

Appendix 6, Intragovernmental Transaction Guide. (T-0). Where available, this reconciliation

should be annotated within FMSuite Open Document Analysis (ODA) Module - Remarks and

Attachments Tab. Attachments can be documents and e-mails (pdf format).

AFI65-118 8 APRIL 2020 23

3.12. Close Out.

3.12.1. If an obligation balance still exists at the end of contract performance for a CAT I,

Reimbursable MIPR, submit a memorandum to the performing agency and request a DD Form

448-2, or other documentation be provided to the PM for deobligation of excess funds

(reference Attachment 11). (T-1). If the PM requests a DD Form 448-2, or other deobligation

documentation and the performing agency does not provide it within 30 days, the PM will send

a memorandum to the performing agency informing that the funds remaining on the order will

be deobligated in 30 days (reference Attachment 12, Example—Deobligation Memorandum).

(T-1). After 60 days (30 days for original request and 30 days for final deobligation

notification) complete a deobligation memorandum, attach copies of the two memorandums

notifying the performing agency of the deobligation requests and forward to FMA (reference

Attachment 12, Example—Deobligation Memorandum). (T-1).

3.12.2. If an obligation balance still exists at the end of contract performance for CAT II,

Direct Cite MIPRs, prepare, coordinate with servicing activity contracting office and submit a

deobligation memorandum to FMA. Note: MOCAS contracts require a modification or DD

1594 to close. (T-0).

3.13. Document Retention.

3.13.1. Organizations must comply with Air Force Manual 33-363 regarding the retention of

MIPRs and all supporting documentation. (T-1). Per DoD FMR, Volume 1, Chapter 9,

Financial Records Retention, retention is to be 10 years after the final invoice or Intra-

Government Payment and Collection or other similar documentation. This is an increase over

the National Archives and Records Administration six-year minimum retention standards for

these record types.

3.13.2. The RA/RM can utilize the Commander’s Resource Information System (CRIS), or

DEAMS to provide management reports such as the Open Document Listing (ODL), Selective

Transaction History Listing, and Purchase Order Summary to help follow-up and monitor

MIPRs. Using the reports, (1) reconcile current progress of contract performance (T-1); (2)

monitor expenditure rate of obligated funds (T-1); and (3) deobligate or add funds as necessary

during contract performance using a DD Form 448-2. The RA/RM and FMA are available to

help reconcile MIPR funds. (T-1).

24 AFI65-118 8 APRIL 2020

Chapter 4

ADVANCE PAYMENT/ADVANCE BILLING AND ACCOUNTING PROCEDURES

4.1. Advance Payment Process.

4.1.1. Advance payments are a transfer of funds to the performing agency from the requiring

activity prior to service being rendered, and must be authorized by specific statutory authority

(reference general prohibition of advance payments per Title 31 United States Code Section

3324, and as explained further in DoD FMR Volume 4, Chapter 5, Accounting Policy). When

authorized, the performing agency can request advance payment for services from the requiring

agency. Advance payments to non-DoD agencies must be approved by the PM prior to

acceptance of the MIPR by the performing agency. (T-0). Upon receipt of the MIPR

acceptance, Block 13 is reviewed to ensure any statements inserted by the assisting activity are

accurate to include verifying any advance payment/billing information and money amount is

authorized.

4.1.2. Advance Payment Approved. The requiring activity will submit required

documentation to DFAS for an advance payment. (T-1). For Legacy process the advance

payment is recorded in the accounting system as a negative Undelivered Order Outstanding

(UOO) and a positive Accrued Expenditure Paid (AEP) transaction under a type vendor “2”

Program Summary Record/Funds Summary Record (PSR/FSR) and a Budget Program

Activity Code (BPAC) of "9910" or "9940". For DEAMS processing of advance payments

follow the “Advance Payment_Public Agreement Non-Advance - Enter an Agreement and

Fund a Project” in the DEAMS Job Aid Index on the DEAMS Outreach Portal,

https://cs2.eis.af.mil/sites/10194/sitepages/home.aspx. Specific processing and coding

requirements are provided in DFAS-DE 7077.2-M, USAF Standard Base-Level General

Accounting and Finance System: H069/BQ Software User Manual, Section 19, paragraphs

19.20 and 19.21. (T-0).

4.1.3. Accounting for the Advance Payment. For legacy processing, as performance occurs,

receiving reports and invoices must be forwarded to the applicable DFAS operating location

for processing to draw down the advance amount from the type vendor “2” Detail Summary

Record (DSR)/PSR and charge the type vendor “4” or "5" DSR/PSR in the accounting system.

(T-0). When the action procured by the MIPR is complete and/or the entire advance has been

settled by performance, there should be no remaining UOO and AEP balances in the type

vendor "2" DSR/PSR. Note: Upon contract award or obligation of the MIPR action, the entire

amount of the obligation must be established in the accounting system as a positive UOO

balance under a type vendor “4” or "5" PSR/FSR, as applicable.

4.2. Partial Advance of MIPR. If a partial advance payment/billing is authorized, the requiring

activity will forward a copy of the DD Form 448-2 to the DFAS operating location for processing.

(T-0).

AFI65-118 8 APRIL 2020 25

4.2.1. Accounting for the Partial Advance Payment. For Legacy processing the DFAS

operating location will process the DD Form 448-2 advance as a negative UOO and a positive

AEP transaction using a type vendor “2” PSR/FSR and BPAC of "9910" or "9940". For

DEAMS processing of advance payments follow the “Advance Payment_Public Agreement

Non-Advance - Enter an Agreement and Fund a Project” in the DEAMS Job Aid Index on the

DEAMS Outreach Portal, https://cs2.eis.af.mil/sites/10194/sitepages/home.aspx. The UOO

balance set up for the contract award or obligation of the MIPR action is not adjusted based on

the advance payment. The entire amount of this obligation is reflected in the accounting system

as a positive UOO balance under a type vendor “4” or "5" PSR/FSR, as applicable. These

transactions show up as separate line items on the Open Document List; the advance under a

type vendor “2” DSR/PSR and a BPAC of "9910" or "9940", and the contract award or

obligation of the MIPR under a type vendor “4" or "5" DSR/PSR, as applicable, without the

BPAC of "9910" or "9940".

4.2.2. Actions during Contract Performance. Trading partners will establish a process on

validating performance and invoice accuracy. As performance occurs, the requiring activity

forwards receiving reports and invoices to the applicable DFAS operating location for

processing to draw down the advance amount from the type vendor “2” DSR/PSR and charge

the type vendor “4” or "5" DSR/PSR in the accounting system. (T-0).

4.2.3. Entire Advance is Settled. When the partial advance has been settled by performance,

there should be no remaining UOO and AEP balances in the type vendor "2" DSR/PSR, and

the AEP balance should now be reflected in the type vendor “4” or "5" DSR/PSR. The

remaining unexpended UOO balance in the type vendor “4” or "5" DSR/PSR is to support the

additional payment(s) required to complete the MIPR action. DFAS operating locations

process the payment(s) against the “4” or "5" DSR/PSR through the final invoice.

4.2.4. Final Invoice. Once payment for the final invoice has been processed against the type

vendor “4” or "5" DSR/PSR, any remaining balance on the MIPR must be deobligated from

the type vendor “4” or "5" DSR/PSR upon receipt of an amended DD Form 448-2 from the

performing agency. When the action procured by the MIPR is complete, and any remaining

balance on the MIPR deobligated, there should be no remaining UOO and AEP balances in the

type vendor "2" DSR/PSR and only an AEP balance in the "4" or "5" PSR/FSR.

4.3. Full Advance of MIPR. If a full advance payment/billing is authorized, the requiring

activity will forward a copy of the DD Form 448-2 to the DFAS operating location for processing.

(T-0). The DFAS operating location will process the DD Form 448-2 advance as a negative UOO

and a positive AEP transaction using a type vendor “2” PSR/FSR and BPAC of "9910" or "9940".

The UOO balance set up for the contract award or obligation of the MIPR action is not adjusted

based on the advance payment. The entire amount of this obligation is reflected in the accounting

system as a positive UOO balance under a type vendor “4” or "5" PSR/FSR, as applicable. These

transactions show up as separate line items on the Open Document List; the advance under a type

vendor “2” DSR/PSR and a BPAC of "9910" or "9940", and the contract award or obligation of

the MIPR under a type vendor “4" or "5" DSR/PSR, as applicable, without the BPAC of "9910"

or "9940".

26 AFI65-118 8 APRIL 2020

4.3.1. Actions during Contract Performance. As performance occurs through the final invoice,

the requiring activity forwards receiving reports and invoices to the applicable DFAS operating

location for processing to draw down the advance amount from the type vendor “2” DSR/PSR

and charge the type vendor “4” or "5" DSR/PSR in the accounting system.

4.3.2. Final Invoice. Once the final invoice has been processed, any remaining balance on the

advance must be collected back from the performing agency and then any remaining balance

on the MIPR must be deobligated from the type vendor “4” or "5" DSR/PSR upon receipt of

an amended DD Form 448-2 from the performing agency. When the action procured by the

MIPR is complete, and any excess advance collected back from the performing agency and

any remaining balance on the MIPR deobligated, there should be no remaining UOO and AEP

balances in the type vendor "2" DSR/PSR and only an AEP balance in the "4" or "5" PSR/FSR.

4.4. Recording of Contract Award for Direct Cite MIPR. The FMA office sends the contract

award document for CAT II direct cite MIPRs, to the applicable DFAS operating location for

processing the obligation in the requiring activity's accounting records. The funds are obligated in

the accounting system using the document ID of the contract award document.

4.5. Recording of Obligation for Reimbursable MIPRs. The funds are obligated in the

accounting system using DD Form 448-2. The document ID must utilize the Standard Document

Number (SDN) format for reimbursable MIPRs. For Legacy the entire amount is established in

the accounting system as a positive UOO balance under a type vendor “4” PSR/FSR, as applicable,

without the BPAC of "9910" or "9940".

4.6. Monthly Validation Process. The PM or RA/RM must validate all outstanding MIPRs on

a monthly basis to ensure timely processing of invoices and timely deobligation of excess funds.

(T-0). Where available, this validation should be annotated in the applicable system via note areas

or attachments. The PM or RA/RM should run a query at the end of each month using the

Commander’s Resource Information System (CRIS) and/or DEAMS. Contact your base FMA on

procedures to acquire access to CRIS and/or DEAMS. The CRIS and/or DEAMS query for an

ODL should include at a minimum the following “data elements” and “account balances” to ensure

all outstanding MIPRs are retrieved:

4.6.1. For advances: Type Vendor Code “2”, Commitment Balance “COM”, Undelivered

Orders Outstanding “UOO” (obligation), Accrued Expenditure Unpaid “AEU”, Accrued

Expenditure Paid “AEP”.

4.6.2. For Category I MIPRs. Utilize the SDN that should contain a “G” in position 11.

Commitment Balance “COM”, Undelivered Orders Outstanding “UOO” (obligation), Accrued

Expenditure Unpaid “AEU”, Accrued Expenditure Paid “AEP”.

4.6.3. For Category II MIPRs (recorded under the contract number): Type Vendor Code “4”

or “5” Commitment Balance “COM”, Undelivered Orders Outstanding “UOO” (obligation),

Accrued Expenditure Unpaid “AEU ”, Accrued Expenditure Paid “AEP”, but consult assisting

DFAS operating location for criteria to narrow scope of CRIS query, if required.

AFI65-118 8 APRIL 2020 27

4.6.4. Monthly Validation. When performing the monthly outstanding MIPR validation, it is

important for the PM or RA/RM to work with their base FMA office to confirm their balances

and work any discrepancies with the DFAS operating location. Also, work with the performing

agency to correct any billing discrepancies or adjustments that require an amended DD Form

448-2. This ensures invoices are processed in a timely manner and allows for the timely

obligation or deobligation of funds. Note: Data elements “Type Vendor Code” (2) should only

be used in the CRIS query when an advance payment has been authorized for the MIPR.

4.7. Stages of Accounting for Requesting Activity.

4.7.1. Commitment Balance (COM) - Initial reservation of funds prior to MIPR acceptance.

The USSGL associated with the COM balance is 4700.

4.7.2. Undelivered Orders Outstanding (UOO) – Funds are obligated via MIPR acceptance or

awarded contract. The USSGL associated with the UOO balance is 4801.

4.7.3. Undelivered Orders Outstanding (UOO) with Prepaid Advances – Advance payment

are made in accordance with statutory guidance and only when procuring with Direct Funds.

The USSGL associated with the UOO balance is 4802.

4.7.4. Accrued Expenditures Unpaid (AEU) – Services or goods have been received, but not

paid. The USSGL associated with the AEU balance is 4901.

4.7.5. Accrued Expenditures Paid (AEP) – Services or goods have been received, invoiced

and paid. The USSGL associated with the AEP balance is 4902.

28 AFI65-118 8 APRIL 2020

Chapter 5

AIR FORCE PROCEDURES WHEN RECEIVING MIPRS

5.1. Performing Air Force Activity. An organization that has agreed to either perform work in

house or acquire services or goods from another government agency or public source.

5.1.1. Prior to acceptance of the MIPR package, ensure the MIPR package has the minimal

essential information to execute the requirement on behalf of the other government agency.

Some of the essential information outlined in the DoD FMR and the FAR includes, but is not

limited to: description of the material or services required; financing source or fund citation;

FS Form 7600A, DD Form 1144 or other support agreement. Local activities must ensure the

essential information is included in the MIPR package. (T-0). They are encouraged to use

Attachment 3 of this AFI as a guide.

5.1.2. Additionally, prior to MIPR acceptance, the responsible individual must coordinate

with the PM, contracting office and FMA to ensure the Air Force servicing activities have the

capacity and capability to provide support at the desired level.

5.2. Performing Agency FMA responsibilities.

5.2.1. Review all incoming MIPRs.

5.2.2. Ensure proper funds (purpose, time, and amount) are utilized for the project. (T-1).

5.2.3. Ensure that authorizations for the MIPR are referenced. (T-1).

5.2.4. Ensure trading partner information is provided. (T-1).

5.3. Accepting MIPRs. The performing agency must accept in writing utilizing DD Form 448-

2, or other documented evidence of acceptance that has all required data elements per DoD FMR

Vol. 11A, Chapter 1, using the requesting activities document number before the expiration of

funds cited. (T-0). Record the requesting activity’s line(s) of accounting and the performing

agency’s line(s) of accounting in block 13 of the DD Form 448-2 or on other documented evidence

of acceptance. (T-1). NOTE: If not accepted by the commander or director personally, whoever

accepts the MIPR on behalf of the Air Force performing activity must have a Delegation of

Authority letter on file, signed by the performing activity commander or director, granting that

individual the authority to accept orders for goods or services. (T-1).

5.4. Accepting Reimbursable MIPRs, CAT I.

5.4.1. Send a copy of the DD Form 448-2 or other documented evidence of acceptance to

requesting activity (they will use to record UOO). (T-1).

5.4.2. For Legacy send a copy of the DD Form 448-2 or other documented evidence of

acceptance to the servicing DFAS field site to record the unfilled customer order (UFCO). For

DEAMS, UFCO will be systemically created during Agreement creation. (T-1).

5.4.3. Record commitment and obligation against the reimbursable program as it performs

against the MIPR. (T-1).

5.4.4. Bill customers promptly as terms of MIPRs are met. (T-1).

5.4.5. As terms of the MIPRs are met, update the accounting system to reflect the proper

balance ID or General Ledger Account of filled customer order uncollected. (T-1).

AFI65-118 8 APRIL 2020 29

5.4.6. Legacy: Record collections immediately when the billing is to DoD components and

the billing is a 1080 no check drawn or 1081 IPAC (Intra-Governmental Payment and

Collection system). (T-1).

5.4.7. Legacy: Reimbursement procedures. For billing, collection and follow up procedures

see the SAF/FMF AFAFO-A Reimbursement Accounting Guidance and Standard Operating

Procedures. (T-1).

5.4.8. DEAMS: DEAMS will record the collections immediately upon completion of Billing

Event for these types of billings. No action required. (T-0).

5.5. Accepting Direct Cite MIPRs, CAT II. Send a copy of the contract to the requiring activity

for proper posting to accounting records.

5.6. Year End Procedures. The performing agency will review all MIPRs to include expiring

appropriations; provide the amount for deobligation purposes to the requiring activity utilizing the

DD Form 448-2. (T-0).

5.7. Stages of Accounting for Performing Activity. Below are the three accounting stages from

inception to completion.

5.7.1. Unfilled Customer Order (UFCO) – Orders received, must be recorded with SC (Sales

Code).

5.7.2. Filled Customer Order Uncollected (FCOU) – Goods or services provided; bill issued

but not collected.

5.7.3. Filled Customer Order Collected (FCOC) – Bill issued and funds collected.

JOHN P. ROTH

Assistant Secretary of the Air Force

(Financial Management and Comptroller)

30  AFI65-118  8 APRIL 2020 
Attachment 1 
GLOSSARY OF REFERENCES AND SUPPORTING INFORMATION 
References 
AFI 23-119, Exchange, Sale, or Temporary Custody of Non-Excess Personal Property, 05 June 
2001 (https://static.e-publishing.af.mil/production/1/af_a4/publication/afi23-119/afi23-
119.pdf) 
AFI 25-201, Intra-Service, Intra-Agency, and Inter-Agency Support Agreements Procedures, 18 
Oct 2013 (https://static.e-publishing.af.mil/production/1/af_a4/publication/afi25-201/afi25-
201.pdf) 
AFI 33-360, Publications and Forms Management, 1 December 2015 (https://static.e-
publishing.af.mil/production/1/saf_aa/publication/afi33-360/afi33-360.pdf) 
AFI 63-138, Acquisition of Services, 11 May 2017 (https://static.e-
publishing.af.mil/production/1/saf_aq/publication/afi63-138/afi63-138.pdf) 
AFI 64-117, Government Purchase Card Program, 22 June 2018 (https://static.e-
publishing.af.mil/production/1/saf_aq/publication/afi64-117/afi64-117.pdf) 
AFI 90-1801, Small Business Programs, 2 August 2018 (https://static.e-
publishing.af.mil/production/1/saf_sb/publication/afi90-1801/afi90-1801.pdf) 
AFFARS Part 5301 Subpart 5301.602-2, Career Development, Contracting Authority, and 
Responsibilities, (https://www.acquisition.gov/affars/5301#docid_14) 
AFFARS PART 5337, Service Contracting, 3 October 2017 
(https://www.acquisition.gov/affars/5337) 
AFMAN 33-363, Management of Records, 21 July 2016 (https://static.e-
publishing.af.mil/production/1/saf_cn/publication/afman33-363/afman33-363.pdf) 
AFPD 65-1, Air Force Policy Directives, 25 June 2018 (https://static.e-
publishing.af.mil/production/1/saf_fm/publication/afpd65-1/afpd65-1.pdf) 
DFARS Subpart 217.5, Interagency Acquisitions, 4 December 2018 
(https://www.acq.osd.mil/dpap/dars/dfarspgi/current/index.html) 
DFARS Subpart 217.7, Interagency Acquisitions: Acquisitions by Nondefense Agencies on 
behalf of the Department of Defence, 21 Sep 2015 
(https://www.acq.osd.mil/dpap/dars/dfars/html/current/217_7.htm) 
DFARS PGI Subpart 217.7, Interagency Acquisitions: Acquisitions by Nondefense Agencies on 
behalf of the Department of Defence, 26 Aug 2015 
(https://www.acq.osd.mil/dpap/dars/dfars/html/current/217_7.htm) 
DFARS PGI Subpart 201.602-2, Career Development, Contracting Authority and 
Responsibilities, 30 October 2015 
(https://www.acq.osd.mil/dpap/dars/pgi/pgi_pdf/current/PGI201_6.pdf) 
DFARS PGI Subpart 253.219, Small Business Programs, 13 April 2018 
(https://www.acq.osd.mil/dpap/dars/pgi/pgi_pdf/current/PGI253_219.pdf) 

AFI65-118  8 APRIL 2020  31 
DFAS-DE 7077.2-M, ISAF Standard Base-Level General Accounting and Finance System: 
H069/BQ, 1 April 2013 (https://dfas4dod.dfas.mil/library/account-
proc/gafs/S131101_GAFS_UM_OM.zip) 
DoD FMR VOLUME 4, Accounting Policy, December 2018 
(http://comptroller.defense.gov/Portals/45/documents/fmr/Volume_04.pdf) 
DoD FMR VOLUME 11A, Reimbursable Operations Policy, January 2018 
(http://comptroller.defense.gov/Portals/45/documents/fmr/Volume_11a.pdf) 
DoD FMR VOLUME 14, Administration of Funds and Antideficiency Act Violations, Sep 2015 
(https://comptroller.defense.gov/Portals/45/documents/fmr/Volume_14.pdf) 
DoDI 5000.64, Accountability and Management of DoD Equipment and Other Accountable 
Property, 27 April 2017 
(https://www.esd.whs.mil/Portals/54/Documents/DD/issuances/dodi/500064p.pdf?ver=2019-
06-10-100933-460) 
DoDI 5000.72, DoD Standard for Contracting Officer's Representative Certification, 26 March 
2015 (http://www.esd.whs.mil/Portals/54/Documents/DD/issuances/dodi/500072p.pdf) 
FAR Part 6, Competition Requirements, 6 May 2019 
(https://www.acquisition.gov/content/part-6-competition-requirements#i1119434) 
FAR Part 10, Market Research, 5 June 2019 (https://www.acquisition.gov/content/part-10-
market-research) 
FAR Part 17, Special Contracting Methods, 20 December 2018 
(https://www.acquisition.gov/content/part-17-special-contracting-methods) 
FAR Part 19, Small Business Programs, 26 October 2018 
(https://www.acquisition.gov/content/part-19-small-business-programs) 
FAR Part 34, Major System Acquisition, 18 November 2016 
(http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/34.htm) 
General Services Administration Modernization Act, 6 Oct 2006 
(https://www.congress.gov/109/plaws/publ313/PLAW-109publ313.pdf) 
National Defense Authorization Act of 2005 
(https://www.congress.gov/108/plaws/publ375/PLAW-108publ375.pdf) 
National Defense Authorization Act of 2008 
(https://www.congress.gov/110/plaws/publ181/PLAW-110publ181.pdf) 
National Defense Authorization Act of 2010 
(https://www.congress.gov/111/plaws/publ84/PLAW-111publ84.pdf) 
OMB Circular A-11, Preparation, Submission, and Execution of the Budget, 28 June 2019 
(https://www.whitehouse.gov/wp-content/uploads/2018/06/a11.pdf) 
Public Law 103-356, Government Management Reform Act, 13 October 1994 
(https://www.usaid.gov/sites/default/files/documents/1868/5401a5.pdf) 
SAF/FMF AFAFO-A Reimbursement Accounting Guidance and Standard Operating Procedures 
(https://org2.eis.af.mil/sites/13465/SitePages/Reimbursement%20and%20Receivables.aspx) 

32  AFI65-118  8 APRIL 2020 
SD-5, Market Research - Gathering Information About Commercial Products and Services, 
December 2018 
(https://www.dsp.dla.mil/Portals/26/Documents/PolicyAndGuidance/Guidance-SD-
5_121818.pdf?ver=2018-12-21-123727-830) 
Treasury Financial Manual, Vol. I, Part 2, Ch. 4700, Appendix 6, Intragovernmental Transaction 
(IGT) Guide, July 2019 (https://tfm.fiscal.treasury.gov/v1/p2/c470.pdf) 
10 U.S.C. § 2410a, Contracts for periods crossing fiscal years: severable service contracts; leases 
of real or personal property (https://uscode.house.gov/view.xhtml?req= (title:0 
section:2410aedition:prelim) 
10 U.S.C. § 2533a, Requirement to buy certain articles from American sources; 
exceptionshttps://uscode.house.gov/view.xhtml?req=(title:0 section:2533a edition:prelim. 
15 U.S.C. § 631 et seq., codification of the Small Business Act 
(https://uscode.house.gov/view.xhtml?req= (title:15 section:631 edition:prelim)) 
31 U.S.C. § 322, Working Capital Fund, 
(https://uscode.house.gov/view.xhtml?req=(title:31section:322 edition:prelim )) 
31 U.S.C. § 1341, Limitations on Expending and Obligating Amounts 
(https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-
section1341&num=0&edition=prelim )) 
31 U.S.C. § 1502, Balances available (https://uscode.house.gov/view.xhtml?req= (title:31 
section:1502 edition:prelim )) 
31 U.S.C. § 1535, Agency agreements (commonly referred to as the 'Economy Act') 
(https://uscode.house.gov/view.xhtml?req= (title:31 section:1535 edition:prelim)) 
31 U.S.C. § 3324, Advances, 3 June 2019 
(http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-
section3324&num=0&edition=prelim) 
40 U.S.C. § 501, Services for executive agencies (https://uscode.house.gov/view.xhtml?req= 
(title:31 section:1535 edition:prelim)) 
41 U.S.C. § 6307, Contracts with Federal Government-owned establishments and availability of 
appropriations (https://uscode.house.gov/view.xhtml?req= (title:41 section:6307 
edition:prelim)) 
41 U.S.C. § 8301, Definitions (https://uscode.house.gov/view.xhtml?req= (title:41 
section:8301 edition:prelim)) 
41 U.S.C. § 8302, American materials required for public use 
(https://uscode.house.gov/view.xhtml?req= (title:41 section:8302 edition:prelim)) 
41 U.S.C. § 8303, Contracts for public works (https://uscode.house.gov/view.xhtml?req= 
(title:41 section:8303 edition:prelim)) 
AFI 64-102, Operational Contracting Program, 9 October 2014 (https://static.e-
publishing.af.mil/production/1/saf_aq/publication/afi64-102/afi64-102.pdf) 

AFI65-118  8 APRIL 2020  33 
AFI 65-601, Volume 1, Budget Guidance and Procedures, 24 October 2018 (https://static.e-
publishing.af.mil/production/1/saf_fm/publication/afi65-601v1/afi65-601v1.pdf) 
DFAS-DE 7010.1-R, General Accounting and Finance Systems at Base Level, 15 February 2015, 
1991 
(https://org2.eis.af.mil/sites/13465/AFAFO%20Acctg%20Guides/DFAS%20Publications/D
FAS-DE%207010.1-R%20General%20Accounting.pdf) 
DFAS-DE 7010.5-R, Direct, Refund, Reimbursement and Receivable Transactions at Base 
Level, June 2006 
(https://org2.eis.af.mil/sites/13465/AFAFO%20Acctg%20Guides/DFAS%20Publications/D
FAS-DE%207010.5-
R%20Base%20Level%20Direct,%20Refund,%20Reimbursement,%20and%20Receivable
%20Transactions.pdf) 
DFARS Subpart 208, Required Sources of Supplies and Services, 20 April 2015 
(https://www.acq.osd.mil/dpap/dars/dfarspgi/current/index.html) 
DFARS Subpart 219, Small Business Programs, 13 April 2018 
(https://www.acq.osd.mil/dpap/dars/dfarspgi/current/index.html) 
DoDI 4000.19, Support Agreements, 25 August 2013 
(https://www.esd.whs.mil/Portals/54/Documents/DD/issuances/dodi/400019p.pdf) 
Prescribed Forms 
AF Form 679, Air Force Publication Compliance Item Waiver Request/Approval 
(https://static.e-publishing.af.mil/production/1/saf_aa/form/af679/af679.pdf) 
AF Form 847, Recommendation for Change of Publication (https://static.e-
publishing.af.mil/production/1/saf_aa/form/af847/af847.pdf) 
Adopted Forms 
AF Form 185, Project Order, 1 Feb 2002 (https://static.e-
publishing.af.mil/production/1/saf_fm/form/af185/af185_rev.pdf) 
AF Form 9, Request for Purchase, 1 March 1997 (https://static.e-
publishing.af.mil/production/1/saf_aq/form/af9/af9.pdf) 
AF Form 616, Fund Cite Authorization (FCA), 1 April 1989 (https://static.e-
publishing.af.mil/production/1/saf_fm/form/af616/af616.pdfDD Form 448, Military 
Interdepartmental Purchase Request, June 1972 
(https://www.esd.whs.mil/Portals/54/Documents/DD/forms/dd/dd0448.pdf) 
DD Form 448-2, Acceptance of MIPR, July 1971 
(https://www.esd.whs.mil/Portals/54/Documents/DD/forms/dd/dd0448-2.pdf) 
DD Form 1144, Support Agreement, 2016 
(https://www.acq.osd.mil/dpap/pacc/cc/TAB%20F%20-%202016-
P001%20DD%20Form%201144%20rev1.pdf) 
DD Form 1594, Contract Completion Statement, Feb 1970 
(https://www.esd.whs.mil/Portals/54/Documents/DD/forms/dd/dd1594.pdf 

34 AFI65-118 8 APRIL 2020

DD Form 2579, Small Business Coordination Record, Aug 2015

(https://www.esd.whs.mil/Portals/54/Documents/DD/forms/dd/dd2579.pdf)

FS Form 7600A, US Government Interagency Agreement (IAA), November 2016

(https://www.fiscal.treasury.gov/files/forms/form-7600a.pdf)

Abbreviations and Acronyms

ABSS—Automated Business Services System

AEP—Accrued Expenditure Paid

AEU—Accrued Expenditure Unpaid

AFFARS—Air Force Federal Acquisition Regulation Supplement

AFI—Air Force Instruction

AFMAN—Air Force Manual

AFPD—Air Force Policy Directive

BETC—Business Event Transaction Code

BPN—Business Partner Number

BPAC—Budget Program Activity Code

COM—Commitment Balance

COR—Contracting Officer Representative

CRIS—Commander’s Resource Information System

D&F—Determinations and Findings

DEAMS—-Defense Enterprise Accounting and Management System

DFAS—Defense Finance Accounting Service

DoD—Department of Defense

DoD FMR—Department of Defense Financial Management Regulation

DoDI—Department of Defense Instruction

DRU—Direct Reporting Unit

DSR—Detail Summary Record

EEIC—-Element Expense/Investment Code

FAR—Federal Acquisition Regulation

FCA—Fund Cite Authorization

FFRDC—Federally Funded Research and Development Center

FM—Financial Management

FMA—Financial Management Analysis

FMSuite—Financial Management Suite

AFI65-118 8 APRIL 2020 35

FOA—Field Operating Agency

FS—Fiscal Service

FSC—Federal Supply Classification

FSR—Funds Summary Record

GAFS-BQ—General Accounting and Finance System

GPC—Government Purchase Card

GT&C—General Terms and Conditions

IGE—Independent Government Estimate

IGT—Intragovernmental Transactions

IPAC—Intra-Governmental Payment and Collection system

IT—Information Technology

J&A—Justification and Approval

MAJCOM—Major Command

MIPR—Military Interdepartmental Purchase Request

MORD—Miscellaneous Obligation Reimbursement Document

MOU—Memorandum of Understanding

NDAA—National Defense Authorization Act

Non—DoD—Non-Department of Defense

ODL—Open Document Listing

OMB—Office of Management and Budget

OPR—Office of Primary Responsibility

PBSA—Performance-Based Services Acquisition

PM—Program Manager

POC—Point of Contact

PR—Purchase Request

PSR—Program Summary Record

PWS—Performance Work Statement

QASP—Quality Assurance Surveillance Plan

R&D—Research and Development

RA/RM—Resource Advisor/Resource Manager

RCCC—Responsibility Center/Cost Center

RDS—Records Disposition Schedule

36 AFI65-118 8 APRIL 2020

RFP—Request for Proposal

SB—Small Business

SBP—Small Business Professional

SC—Sales Code

SDN—Standard Document Number

SDO—Services Designated Official

SES—Senior Executive Service

SOO—Statement of Objectives

SOW—Statement of Work

SRAN—Stock Record Account Number

TAS—Treasury Account Symbol

UOO—Undelivered Order Outstanding

U.S.C.—United States Code

Terms

Acquisition—The acquiring by contract with appropriated funds of supplies or services (including

construction) by and for the use of the Federal Government through purchase or lease, whether the

supplies or services are already in existence or must be created, developed, demonstrated, and

evaluated. Acquisition begins at the point when agency needs are established and includes the

description of requirements to satisfy agency needs, solicitation and selection of sources, award of

contracts, contract financing, contract performance, contract administration, and those technical

and management functions directly related to the process of fulfilling agency needs by contract.

Acquisition Planning—The process by which the efforts of all personnel responsible for an

acquisition are coordinated and integrated through a comprehensive plan for fulfilling the

minimum agency need in a timely manner and at a reasonable cost. It includes developing the

overall strategy for managing the acquisition.

Advisory and Assistance Services—Services provided under contract by non-governmental

sources to support or improve: organizational policy development; decision- making; management

and administration; program and/or project management and administration; or R&D activities. It

can also mean the furnishing of professional advice or assistance rendered to improve the

effectiveness of federal management processes or procedures (including those of an engineering

and technical nature). In rendering the foregoing services, outputs may take the form of

information, advice, opinions, alternatives, analyses, evaluations, recommendations, training, and

the day-to-day aid of support personnel needed for the successful performance of ongoing federal

operations. All advisory and assistance services are classified in one of the following definitional

subdivisions: management and professional support services; studies, analyses and evaluations, or

engineering and technical services. Definitions on these subdivisions are included in the Terms.

AFI65-118 8 APRIL 2020 37

Antideficiency Act—Legislation enacted by Congress to prevent the incurring of obligations or

the making of expenditures (outlays) in excess of amounts available in appropriations or funds; to

fix responsibility within an agency for the creation of any obligation or the making of any

expenditure in excess of an apportionment or reapportionment or in excess of other subdivisions

of funds; and to assist in bringing about the most effective and economical use of appropriations

and funds. (See Department of Defense Financial Management Regulation, Volume 14,

Administrative Control of Funds and Antideficiency Act Violations). The ADA Consists of several

statutes that authorize administrative and criminal sanctions for the unlawful obligation and

expenditure of appropriated funds consisting of obligation and expense of appropriations for an

improper purpose; obligation of funds outside the time limits applicable to the appropriation (e.g.

O & M funds are available for obligation for only one fiscal year); use of funds where there is no

bona fide need of the appropriation period of availability; and obligating more than the amount

appropriated by Congress. The applicable US Codes are: Title 31 § 1341, Limitations on expending

and obligating amounts, and 1517, Prohibited obligations and expenditures.

Assisted Acquisition—Contract awarded or a task or delivery order placed on behalf of an agency

by another agency whether or not subject to the Economy Act.

Automated Business Services System (ABSS)—An FM system that automates the creation of

financial documents (e.g., Purchase Requests, MIPRs, MORDS, etc.) and electronically routes

those documents through the approval process. It provides electronic interfaces to the Air Force

standard accounting systems, as well as the Air Force standard contracting systems, to cut down

on the occurrence of data input errors.

Business Event Transaction Code (BETC)—Indicates the type of activity being reported

(payments, collections, borrowings, etc.) in the Intra-Governmental Payment and Collection

(IPAC) system.

Bona Fide Need Rule—States that a fiscal year’s (or period’s) appropriation may only be

obligated to meet a legitimate need arising in, or in some cases arising prior to but continuing to

exist in, the fiscal year (or period) for which the appropriation was made. This rule has a statutory

basis in Title 31 U.S.C. § 1502.

Business Partner Number (BPN)—Identifies a government entity for the purpose of intra-

governmental transactions. Air Force uses the BPN in a number of different circumstances and

systems. It replaces the Stock Record Account Number (SRAN) in the first six positions of

accounting documents (example: AF Form 9 and MIPRs).

Commitment—A specified amount of available funds reserved in the accounting system to fund

an identified requirement. Once committed, funds are not available for other funding needs. The

three most commonly used commitment documents are the AF Form 9, AF Form 616, Fund Cite

Authorization and, prior to its acceptance by the performing agency, DD Form 448.

Contracting/Contract Action—The letting of a new contract, modifying a contract to increase or

decrease the quantity of goods or services to be provided, extend the length of the contract, apply

an option, etc. does not apply to host-tenant support reimbursements.

Contracting Office—For the purposes of this instruction, the contracting office is the office

designated to support the requiring activity for contracting actions and business advice.

38 AFI65-118 8 APRIL 2020

Contracting Officer Representative (COR)—An individual designated by the commander or

director and authorized in writing by the contracting officer to perform specific technical or

administrative functions. CORs must be designated in writing and provided to the contractor by

the contracting officer. The contracting officer will specify the extent of the COR’s authority to

act on behalf of the contracting officer. The COR is not authorized to make any commitments or

changes that will affect price, quality, quantity, delivery, or any other term or condition of the

contract.

Commanders’ Resource Integration System (CRIS)—A relational, read only, data warehouse

containing financial data for Air Staff, MAJCOM, DRU, FOA, and base-level reporting functions.

Defense Enterprise Accounting and Management System (DEAMS)—An Enterprise Resource

Planning solution that is transforming business and financial management processes and systems

to improve financial accountability and accuracy. It automates the creation of financial documents

(e.g., Purchase Requests, MIPRs, MORDS, etc.) and electronically routes those documents

through the approval process.

Defense Finance and Accounting Service (DFAS)—The accounting agency for the DoD which

is responsible for the payment of all DoD contracts.

Delivery Order—An order for supplies that is placed against an established contract.

Determinations and Findings (D&F)—An approved document that is required by statute or

regulation as a prerequisite to taking certain contract actions. The “determination” is a conclusion

or decision supported by the “findings”. The findings are statements of fact or rationale essential

to support the determination and must cover each requirement of the applicable statutes or

regulations. A D&F for an Economy Act order has findings that support the determination that an

interagency order is in the best interests of the government. The Economy Act D&F statement

must be signed by a warranted contracting officer.

Direct Acquisition—A task or delivery order placed by an Air Force contracting officer against a

contract established outside DoD.

Direct Cite Order—An order that provides direct funding authority to the performing agency to

“cite directly” the line of accounting of the requiring activity. Also known as a CAT II MIPR.

Direct Reporting Unit (DRU)—An agency of the United States Department of the Air Force that

is outside the bounds of the standard organizational hierarchy by being exclusively and uniquely

under the control of Air Force headquarters alone, rather than reporting through a major command.

Economy Act Order (Title 31, U.S.C—§1535, FAR Part 17.5)—Per the DoD FMR Volume

11A Chapter 3, Paragraph 030102, the Economy Act provides authority for federal agencies to

order goods and services from major organizations within the same agency or other federal

agencies and to pay the actual costs of those goods and services. Within the Department, an activity

within a DoD Component may place an order for goods or services with (1) another activity within

the same DoD Component, (2) another DoD Component, or (3) with another federal agency.

AFI65-118 8 APRIL 2020 39

Engineering and Technical Services—contractual services used to support the program office

during the acquisition cycle. As defined in OMB Circular A-11, Preparation, Submission, and

Execution of the Budget, engineering and technical services provide such services as systems

engineering and technical direction to ensure the effective operation and maintenance of a weapon

system or major system and provides direct support of a weapon system that is essential to

research, development, production, operation or maintenance of the system. Additional

information is found in FAR Part 34, Major System Acquisition.

Field Operating Agency (FOA)—A subdivision of the Air Force, directly subordinate to an HQ

USAF functional manager. A FOA performs field activities beyond the scope of any of the major

commands.

Fund Certifying Official—The individual in Financial Management Analysis (FMA) who

executes the funds authorization portion of a DD Form 448, block 14, or other equivalent forms.

This official is responsible for the execution and oversight of funding to a non-DoD organization

in support of an order for supplies or services, certifying that funds for the procurement are

properly chargeable to the allotment(s) provided, and that the available balances are sufficient to

cover the estimated price of the order.

G-Invoicing—A front-end application for users to originate intragovernmental buy/sell

transactions. Facilitates the exchange of information between trading partners for reimbursable

activity only.

Independent Government Estimate (IGE)—An estimate of the cost or price of an acquisition

developed by the requiring activity. Used for establishing the amount of funding required to begin

an acquisition and to establish a basis for negotiation of price proposals received.

Interagency Agreement—A written agreement between an Air Force requiring activity and a

federal performing agency for the Air Force to purchase specific goods or services under agreed

terms and conditions. The interagency agreement must be signed by the requiring activity program

manager with budget authority and bona fide need for the support, services, or goods procured on

the MIPR.

Interagency MIPR—An acquisition in which an Air Force activity obtains or provides

supplies/services from/to an agency outside the DoD using an FS Form 7600A to establish the

general terms and conditions of the interagency agreement, and a DD Form 448 to order and fund

the requirement.

Intra-agency MIPR—An acquisition in which an Air Force activity obtains or provides

supplies/services from/to an agency within DoD using a DD Form 448 to order and fund the

requirement.

Justification and Approval (J&A)—Justification and Approvals for the use of other than full and

open competition. Explains the rationale and documents higher-level approval for sole source or

limited competitions as required by the Competition in Contracting Act. Reference FAR Part 6,

Subpart 6.3, Other than Full and Open Competition.

Major Command (MAJCOM)—The highest level of command, only below Headquarters Air

Force (HAF), and directly above numbered air forces (NAFs).

40 AFI65-118 8 APRIL 2020

Management and Professional Support Services—Contractual services that provide assistance,

advice or training for the efficient and effective management and operation of organizations,

activities (including management and support services for R&D activities), or systems. These

services are normally closely related to the basic responsibilities and mission of the agency

originating the requirement for the acquisition of services by contract. Included are efforts that

support or contribute to improved organization of program management, logistics management,

project monitoring and reporting, data collection, budgeting, accounting, performance auditing,

and administrative technical support for conferences and training programs.

Military Interdepartmental Purchase Request (MIPR)—The primary document used by the

Department of Defense to order goods or services from other DoD Services or Components, as

well as other Government activities outside the DoD. The goods or services may be provided from

in-house resources or may be procured from commercial sources.

MIPR Package—All documents listed in Attachment 3, Checklist for DD Form 448 and

Requirements Package Review (including the checklist), Attachment 7, Interagency Acquisition

Determination Document & Economy Act Determination and Findings Example Texts; and

Attachment 9, , EXAMPLE—DD FORM 448-2, Military Interdepartmental Purchase Request

(MIPR) Acceptance.

Military Interdepartmental Purchase Request (MIPR) Acceptance—. Once a performing

agency receives a MIPR, it must formally accept or reject the order represented by the MIPR.

Agencies accept the order by completing the DD Form 448-2 or other documented evidence of

acceptance and returning it to the requiring unit within 30 days to the Program Manager.

Non—Defense Agency Compliance Certification. A nondefense agency is compliant with

applicable procurement requirements if the procurement policies, procedures, and internal controls

of the nondefense agency applicable to the procurement of supplies and services on behalf of DoD,

and the manner in which they are administered, are adequate to ensure the compliance of the

nondefense department or agency with-

(1)—The Federal Acquisition Regulation and other laws and regulations that apply to

procurements of supplies and services by Federal agencies; and

(2)-—Laws and regulations that apply to procurements of supplies and services made by DoD

through other Federal agencies, including DoD financial management regulations, the Defense

Federal Acquisition Regulation Supplement (DFARS), DoD class deviations, and the DFARS

Procedures, Guidance, and Information (PGI). (The DFARS, DoD class deviations, and PGI are

accessible at http://www.acq.osd.mil/dpap/dars).

Non-Economy Act orders—Intra-governmental support, where a DoD activity needing goods

and services (requesting DoD agency/customer) obtains them from a Non-DoD agency

(assisting/servicing agency/performer) using some specific statutory authority other than the

Economy Act to place an order with a Non-DoD agency for goods or services, and to pay the

associated cost.

Non—severable—A deliverable item that is a single end product or undertaking, entire in nature

that cannot be feasibly subdivided without losing its identity. A non-severable service is one that

goes toward a defined end result. For example, a contract to re-carpet or paint an office is non-

severable—the customer needs the whole thing done, i.e., the end result of the service. Also,

performance of a research study with a final report would be a non-severable service.

AFI65-118 8 APRIL 2020 41

Non-severable Work and Services—Must be delivered whole or to completion to realize any

benefit and fulfill the requirement. A simple example would be a contract for the construction of

a bridge across a river that would start on January 1, 2013 and complete on December 31, 2013. If

the contract was terminated prior to completion, (e.g. June 30, 2013), no benefit would be realized

because only half a bridge would exist and it would not fulfill the original requirement to move

traffic from one side of the river to the other. In general, services tend to be severable while the

construction and/or delivery of goods tend to be non-severable.

Obligation—(related to MIPRs)— Amounts of orders placed, contracts awarded, services

received, and similar transactions during a given period requiring future payment of money. A

legal liability to pay for the cost of goods and services to be delivered under a purchase order or

contract. The DD Form 448-2 or other documented evidence of acceptance is the obligating

document for CAT I, Reimbursable MIPRs, and the contract award document is the obligating

document for CAT II, Direct Cite MIPRs.

Open Document Listing (ODL)—A computerized list of open commitments, obligations, and

accrued expenditures unpaid (AEU) extracted from the General Accounting and Finance System.

The RA/RM can request a list at any time. The list enables the PM to monitor and manage open

commitments and obligations. The ODL is a useful tool to help the RA/RM successfully manage

associated funds.

Performance-Based Services Acquisition (PBSA)—An acquisition for services that is structured

around the results to be achieved as opposed to the manner by which the work is to be performed.

A PBSA must state measurable performance standards (i.e., in terms of quality, timeliness,

quantity, etc.) and state the method of assessing contractor performance against performance

standards. It may have performance incentives where appropriate.

Performing Agency/Activity—Agency or activity authorized to award contracts or orders for

DoD federal agencies and activities. Also referred to as an assisting, supporting, or supplying

agency or activity. Examples are General Services Administration (GSA), GovWorks, FedSource,

Veteran’s Administration, and National Aeronautics and Space Administration (NASA).

Period of Availability—The period the funds are available for commitment, obligation, and

execution before they expire and are unusable. Also, see Bona Fide Need Rule.

Performance Work Statement (PWS)—Describes the required performance results in clear,

specific and objective terms with measurable outcomes for a performance-based services

acquisition (PBSA).

Program Manager (PM)—-Although requiring activities may use different terms, for the purpose

of this instruction, the term “Program Manger” refers to the individual in the requiring activity

with budget authority that needs the support, services, or goods procured on the MIPR. For the

purposes of the instruction, PM will represent other names performing the same function. (T-0).

PMs can be designated by the member’s chain of command or work center chain of command.

42 AFI65-118 8 APRIL 2020

Project Order—An order issued under the authority contained in 41 U.S.C. § 6307. Project orders

are issued by and accepted for performance in a DoD owned and operated establishment. When

placed with, and accepted by a DoD establishment, the project order serves to obligate

appropriations in the same manner as orders or contracts placed with commercial enterprises. The

activity receiving a project order must be capable of manufacturing the goods or supplying the

services requested on the order and not simply a conduit or intermediary for funds used to procure

the goods or services.

Requesting Activity Contracting Office—For the purposes of this instruction, the Requesting

Activity Contracting Office is the contracting office advising the Requesting Activity, reviewing

the MIPR package, etc. prior to release to the Servicing Activity, except when receiving MIPRs.

The Requesting Activity Contracting Office may be identified first by traditional command

relationships, support or host tenant agreements for standard (or non-standard) levels of support,

or mission directives.

Reimbursement—Funding received by a performing agency for the cost of goods or services

furnished to others, for credit to the performing agency’s own appropriation or other fund account.

Reimbursable Order—The performing agency finances an Air Force purchase of goods and

services, and bills the Air Force for reimbursement. Also known as Category I MIPRs.

Requiring Activity—The unit or activity requiring goods or services, provides funding to fulfill

the requirement, and requests assistance from a performing agency. Also referred to as the

requiring, receiving, or requesting agency or activity.

Sales Code (SC)—A 3-character alphanumeric field to identify sources for appropriation

reimbursement.

Service Contract—A contract that directly engages the time and effort of a contractor whose

primary purpose is to perform an identifiable task rather than to furnish an end item of supply. A

service contract may be either a non-personal or a personal contract. It can also cover services

performed by either professional or nonprofessional personnel whether on an individual or

organizational basis. For more information on service contacts see FAR Part 37, Subpart 37.1,

Service Contracts-General, Section 37.101, Definitions.

Services Designated Official (SDO)—The individual authorized in accordance with the FY02

National Defense Authorization Act (NDAA), Section 2330(a)(2)(A) to exercise responsibility for

the management and oversight of the acquisition of services. These responsibilities include

ensuring services acquisitions are performance-based; approving, in advance, any acquisition that

is not performance-based; and approving the acquisition of services procured through the use of a

contract or task order being awarded by an agency other than DoD.

Servicing Activity Contracting Office—For the purposes of this instruction, the Servicing

Activity Contracting Office is the contracting office within the Servicing Activity responsible for

performing contract actions in support of the Requesting Activity’s requirement.

AFI65-118 8 APRIL 2020 43

Severable—A deliverable item that has an end product or undertaking that if ended suddenly the

government has received the full value of the service up to the time it ended. For example, 24-hour

computer help desk support is severable because complete service is received at the end of each

day. Severable work and services can be stopped prior to the originally planned term and the

requiring activity still received benefit. A simple example would be a contract for weekly garbage

removal from January 1, 2013 to December 31, 2013. If the contract was terminated mid-term,

(e.g. June 30, 2013), the benefit of having the garbage removed from January to June 2013 would

still be realized.

Small Business Professional—Individuals assigned to perform DoD Small Business Program

duties and/or functions related to the Small Business Act (15 U.S.C. § 631 et seq. codification of

the Small Business Act)

Small Business Programs Office—Serves as an agent of the Secretary of the Air Force within

assigned policy and program domains and provides guidance, direction, and oversight for all

matters pertaining to the formulation, review, and execution of plans, policies, programs, and

budgets associated with the Air Force Small Business Programs.

Statement of Objectives (SOO)—A Government-prepared document incorporated into the

solicitation that states the overall performance objectives. It is used in solicitations when the

Government intends to provide the maximum flexibility to each offeror to propose an innovative

approach. The Statement of Objectives (SOO) also provides basic, top-level objectives of an

acquisition and is provided in the request for proposal (RFP) in lieu of a government-written

statement of work (SOW). It provides potential offerors the flexibility to develop cost-effective

solutions and the opportunity to propose innovative alternatives meeting the objectives.

Statement of Work (SOW)—A detailed description of the services a contractor is required to

perform, written by the PM or designee, that describes the desired results, performance measures,

and other instructions as necessary. The SOW establishes the bona-fide need of the government.

For assistance in drafting a SOW, see the assisting contracting office.

Studies, Analyses and Evaluations—Contracted services that provide organized, analytical

assessments and/or evaluations in support of policy development, decision-making, management,

or administration. Included are studies in support of R&D activities. Also included are acquisitions

of models, methodologies, and related software supporting studies, analyses or evaluations.

Support Agreement—A written agreement that establishes the roles and responsibilities for

support between the requiring activity and the performing agency. Support agreements may be

intra-agency (between DoD federal agencies) or interagency (between DoD and non- DoD federal

agencies). A support agreement may also be referred to as a Memorandum of Understanding

(MOU) or Memorandum of Agreement (MOA).

Task Order—An order for services that is placed against an established contract.

Type Vendor—A one-position numeric code that identifies obligations, refunds, and advances

received or paid. Type vendor codes one through six identify obligations by vendor class, type

vendors eight and nine, identify refunds receivable as being due from the federal government or

the public.

44 AFI65-118 8 APRIL 2020

Attachment 2

PROCESS FLOWCHART FOR REQUESTING ACTIVITY

Figure A2.1. Process Flowchart for Requesting Activity.

AFI65-118 8 APRIL 2020 45

46 AFI65-118 8 APRIL 2020

Table A2.1. Flowchart Explanations.

Step

Title

Description

PM IDENTIFIES

REQUIREMENT

(Continues Market

Research)

The PM identifies a mission need, initiates, or continues

market research to develop the requirement. Document all

market research.

PM VERIFIES

FUNDING WITH

RA/RM OR FMA

The PM shall contact the RA/RM or FMA who will

confirm funding availability and the funding is appropriate

for the acquisition (purpose, time, and amount). (T-1).

ACQUISITION

PLANNING

(PM, Contracting,

FMA, SBP, etc.)

It is essential that the PM seek business advice to ensure

the acquisition solution is in the best interest of their unit

mission, delivered to meet war fighter needs, and

represents the best value for Air Force dollars. The PM

must initiate contact with contracting, SBP, FMA and other

interested parties to discuss procurement alternatives,

appropriate authorities and determine if a MIPR is in the

best interest of the Air Force. Discussions should include

the commerciality of the items and/or services needed,

competition, small business considerations, applicability of

the Economy Act or other authorities, use of pre-existing

contracts (including interagency & intra-agency contracts),

and compliance with DoD acquisition regulations. The PM

must evaluate and document whether using a non-DoD

contract for the acquisition is in the best interest of DoD.

Factors to be considered include: satisfying customer

requirements; schedule; cost effectiveness (taking into

account discounts and fees) in order to ensure awareness

and documentation of the total cost of fees associated with

use of a non-DoD contract; and contract administration

(including oversight). If the acquisition solution requires

support of another agency, the contracting office will help

the PM evaluate whether the support may be obtained from

another agency’s contract. In addition, the contracting

office will advise the PM of other required supporting

documentation, such as certification of proper use of non-

DoD contracts. See Attachment 3, Checklist for DD Form

448 and Requirements Package Review. The deliverable to

complete this step is a firm acquisition solution in support

of the PM’s requirement and best interest determination.

(T-2).

AFI65-118 8 APRIL 2020 47

DETERMINE

“BEST

INTEREST” &

APPLICABLE

AUTHORITY

The PM, under the advisement of the acquisition team,

shall determine the appropriate authority to perform the

acquisition and required approvals. Statutory

authorities include, but are not limited to: Acquisition

Services Fund, Franchise Fund, and Authority of

Administrator of General Services. Economy Act Orders

must be supported by a written determination and

findings. (T-0). See Attachment 7, Interagency

Acquisition Determination Documentation & Economy

Act Determination and Findings Example Texts, for

example language. Other statutory authorities may not

require written determinations. The contracting office

and FMA can provide advice and support in the

drafting and coordination of the documentation.

If use of assisted or direct acquisition is not in the best

interests of the Air Force, the PM should consider other

means for procurement.

SPECIFIC

STATUORY

AUTHORITY (Non-

Economy Act)

When a specific statutory authority applies, the

performing agency must cite the applicable statute on the

DD Form 448-2 or other documented evidence of

acceptance. (T-1). See Attachment 5 Table A5.1, Row

ECONOMY ACT

AUTHORITY

Cite Economy Act (31 U.S.C. 1535) on DD Form 448

using footnote 8 or 9 of Attachment 4. Refer to Chapter

1, Paragraph 1.3.1.1 regarding the additional

requirements for Economy Act orders.

GENERATE THE

DD-FORM 448

(MIPR) (Upload

supporting

documents)

ABSS and DEAMS are an automated system for creating

and routing financial documents through required reviews

and approvals and then provides financial document

information to accounting and procurement systems.

Users may create MIPRs in either ABSS, another

automated system that interfaces with ABSS, or DEAMS.

FMA will also establish the proper document flow for your

organization. (T-1). Regardless of who creates the MIPR,

the PM retains responsibility for procuring the requirement

and tracking the funds spent. The RA/RM will verify the

proper ABSS/DEAMS routing for the requirement review

and approval. (T-1). See Attachment 4 for required

footnotes and Attachment 6 for the required interagency

agreement.

48 AFI65-118 8 APRIL 2020

Required Supporting Documents (attachments). Contracting,

FMA, or SBP can assist with questions regarding required

supporting documents.

1. Performance Work Statement (PWS) or description of

goods or supplies required.

2. Independent Government Estimate.

3. Market Research documentation. The procuring activity

may have Market Research information that could be

considered in meeting this requirement.

4. COR: Trained and ready CORs are critical to ensuring the

Air Force receives the level of service and quality dictated

by the contract. Meet the requirements of DFARS/PGI

Subpart 201.602-2 and DoDI 5000.72 as applicable. If the

requiring activity or PM will provide the COR, include

the individual’s contact information.

5. DoD Unique Contract Terms and Conditions (e.g. Berry

Amendment (10 U.S.C. § 2533a, Requirement to buy

certain articles from American sources; exceptions), Buy

American Act (41 U.S.C. §§ 8301, Definitions, 8302,

American materials required for public use, and 8303,

Contracts for public works), and electronic payment).

Both the PM supporting and accepting agency’s

contracting professionals can assist.

6. Interagency Support Agreement (FS Form 7600A) (See

Attachment 6)

The following documents may also be required:

1. Economy Act D&F (see Step 3 for D&F requirements and

Attachment 7 for an example)

2. Services Designated Official (SDO) approval to release

MIPR (for services acquisition, see AFI 63-138)

3. Approved Requirements Approval Document (for

services acquisition, see AFI 63-138)

4. Documents supporting the use of non-competitive

contracting procedures (e.g. Sole Source, Brand Name,

Exception to Fair Opportunity). The contracting office

can explain competition requirements.

5. Quality Assurance Surveillance Plan, when required

6. CDRLs

AFI65-118 8 APRIL 2020 49

1. See Attachment 3, Checklists for DD Form 448 and

Requirements Package Review, for more

information.

Once the PM has confirmed the MIPR is complete, create

and secure approval by the requiring activity’s RA/RM, the

ABSS or DEAMS MIPR process flow begins.

ROUTE MIPR

PACKAGE FOR

REVIEW

Next, the MIPR package will flow through three sequential

steps.

First, if necessary, the MIPR will flow through an External

Approver for review. For example, IT, communications

equipment, construction, hazardous material etc.

Second, the MIPR will flow through the Budget Reviewer.

The Budget Reviewer will validate the availability of

funds, completeness and accuracy of the MIPR package

(including supporting documentation). See Attachment 3,

Checklist for DD Form 448 and Requirements Package

Review. Incomplete MIPR packages must be rejected.

Finally, the MIPR will flow through the requesting activity

contracting office. This review is not required when the

MIPR will not result in a contract action. The contracting

officer will simply flow the MIPR through ABSS or

DEAMS to the next reviewing office.

All non-Economy Act orders greater than $500,000 shall

be reviewed by an Air Force warranted contracting officer

prior to sending the order to the funds certifier or issuing

the MIPR to the Non-DoD activity. (T-0). Non-warranted

contracting specialists may review all other non-Economy

Act MIPRs (DOD FMR Vol 11A, Chapter 18). All

Economy Act MIPRs require review by a warranted

contracting officer (see Step 4 for distinction). The

contracting review includes a review of the MIPR package

for completeness/currency (including supporting

documentation). See Attachment 3, Checklist for DD

Form 448 and Requirements Package Review.

In cases where the MIPR package is incomplete or

insufficient, the reviewer will reject the package in the

system and provide advice and support to the PM to render

the package executable.

50 AFI65-118 8 APRIL 2020

ROUTE MIPR TO

FMA FOR REVIEW

AND FUNDS

CERTIFICATION

Once a contracting officer has completed their action for

the MIPR, the document is forwarded in ABSS or

DEAMS to the FMA. A financial advisor in the FMA

will review the document to ensure it meets all financial

rules (purpose, time, and amount). If requirements are

met and funds are available, FMA will certify the MIPR

to record the commitment in the accounting system.

PM OR

DESIGNATED

PERSONNEL

TRANSMIT MIPR

TO SERVICING

AGENCY

After the MIPR is certified, the PM enters ABSS or

DEAMS and prints a copy of the DD Form 448 and

attachments. The PM signs the DD Form 448 in Block

9b, Footnote 1, and sends the entire package to the

performing agency’s point of contact.

SERVICING

AGENCY

REQUESTS

ADVANCE

PAYMENT OR

ADVANCE

BILLING (WHEN

APPLICABLE)

Non-DoD federal agency sends a memorandum requesting

advance payment or advance billing to the PM. The

memorandum must include the specific appropriation or

law authorizing the advance payment or advance billing.

(T-1). The PM approves/disapproves the request for

advance payment or advance billing and returns the

memorandum indicating approval/disapproval. If

approved, the performing agency puts the following

information in Block 13 of the DD Form 448-2, or on other

documented evidence of acceptance “advance payment or

advance billing is approved, specific amount, name of PM

approving the advance, and the specific appropriation or

law authorizing the advance payment or advance billing”.

PM RECEIVES

MIPR

ACCEPTANCE DD

FORM 448-2 (or