Attachment 4 - Nonappropriated Fund Standard Clauses_1May24.pdf

This document is a set of Nonappropriated Fund (NAF) Standard Clauses establishing the contractual terms and conditions for contracts issued by Department of Defense NAFIs. The clauses apply broadly to contracts for supplies, services, concession services, and transportation services performed by NAFIs, which are DoD organizational and fiscal entities supported wholly or partly by nonappropriated funds and possess the legal status of instrumentalities of the United States. The contract is not subject to the Contract Disputes Act of 1978 but rather to NAFI dispute resolution procedures under DAFMAN 64-119, with protests filed with the Contracting Officer following procedures in DAFMAN 64-119.

The standard clauses establish comprehensive requirements across multiple operational areas: claims must be submitted in writing with contractor-certified claims exceeding $100,000 including a False Claims Act certification; the NAFI retains examination and audit rights over contractor records for three years after final payment; contractors must provide insurance coverage at their own expense meeting or exceeding state and local requirements; procurement integrity certifications prohibit gratuities, improper employment offers, and unauthorized disclosure of proprietary information; contractors cannot assign rights without written permission and are subject to termination for convenience, termination for cause (with 10-day cure periods), or cancellation by mutual agreement. Additional requirements address labor standards (including combating trafficking in persons, minimum wage per Executive Order 14026, paid sick leave per Executive Order 13706, child labor prohibitions, and workplace safety), inspection and acceptance at destination, commercial warranty compliance, tax treatment, invoice formatting aligned with Prompt Payment Act requirements, travel authorization per federal regulations, sustainability initiatives, proof of shipment for overseas deliveries, prohibition on partial deliveries without authorization, payment upon authorized deliveries, suspension or debarment notification, representations regarding covered telecommunications equipment per Section 889 of the National Defense Authorization Act, and prohibitions on items containing PFOS or PFOA effective April 1, 2023. The document incorporates 26 additional clauses by reference, including provisions on fraud convictions, Kaspersky Lab prohibitions, ByteDance prohibitions, cyber incident reporting, child labor cooperation, hazardous materials, trade agreement requirements, technical data rights, cloud computing services, and changes to fixed-price contracts.