DAFMAN_64-119.pdf

BY ORDER OF THE

SECRETARY OF THE AIR FORCE

DEPARTMENT OF THE AIR FORCE

MANUAL 64-119

30 AUGUST 2023

Contracting

NONAPPROPRIATED FUND

CONTRACTING PROCEDURES

COMPLIANCE WITH THIS PUBLICATION IS MANDATORY

ACCESSIBILITY: Publications and forms are available on the e-Publishing website at www.e-Publishing.af.mil for downloading or ordering.

RELEASABILITY: There are no releasability restrictions on this publication.

OPR: SAF/AQCP Certified by: SAF/AQC

(Maj Gen Alice W. Trevino)

Supersedes: AFMAN 64-302, 26 September 2019 Pages: 62

This Department of the Air Force Manual (DAFMAN) implements Air Force Policy Directive

(AFPD) 64-1, The Contracting System, by providing guidance and procedures for Air Force NAF contracting. This is a specialized publication intended for use by contracting subject matter experts.

This publication applies to all civilian employees of the Department of the Air Force (DAF) and uniformed members of the United States Space Force (USSF), Regular Air Force, the Air Force

Reserve, and the Air National Guard. This publication does not apply to the Civil Air Patrol. This manual may be supplemented only by Major Commands (MAJCOMs), Field Commands

(FLDCOMs), Field Operating Agencies (FOAs), and Direct Reporting Units (DRUs).

MAJCOMs, FLDCOMs, FOAs, and DRUs will coordinate their supplements through Air Force

Nonappropriated Fund Procurement Office (AFNAFPO) for approval by the Deputy Assistant

Secretary (Contracting), (SAF/AQC). No further supplements are permitted. Refer recommended changes and questions about this publication to the office of primary responsibility using the DAF

Form 847, Recommendation for Change of Publication; route DAF Form 847s from the field through the appropriate functional chain of command. The authorities to waive wing/delta or subordinate unit level requirements in this publication are identified with Tier (“T-0, T-1, T-2, T-3”) number following the compliance statement. See DAFMAN 90-161, Publishing Processes and Procedures, for a description of the authorities associated with the Tier numbers; for this publication, the T-2 waiver authority is the Director, Air Force Nonappropriated Fund

Procurement Office, (AFSVC/VP). Submit requests for waivers through the chain of command to the appropriate Tier waiver approval authority, or alternately, to the requestor’s commander for non-tiered compliance items. This manual requires the collection and/or maintenance of information protected by the Privacy Act of 1974 authorized by Title 10 United States Code, http://www.e-publishing.af.mil/

2 DAFMAN64-119 30 AUGUST 2023

Section 9013 (10 U.S.C. § 9013), Secretary of the Air Force. The applicable System of Records

Notice (SORN) F036 AF PC C, Military Personnel Records System is available at:

https://dpcld.defense.gov/. Ensure all records generated as a result of processes prescribed in this publication adhere to AFI 33-322, Records Management and Information Governance Program, and are disposed in accordance with (IAW) the Air Force Records Disposition Schedule, which is located in the Air Force Records Information Management System. The use of the name or mark of any specific manufacturer, commercial product, trade shows, or service in this publication does not imply endorsement by the Air Force.

SUMMARY OF CHANGES

This document has been substantially revised and should be completely reviewed. Major changes include incorporation of provisions relating to the USSF and redesignation from an AFMAN to a

DAFMAN. This publication also clarifies procedures regarding contracting officers’ warrants, increases the simplified acquisition threshold from $150,000 to $250,000 and clarifies the procurement of NAF vehicles.

Chapter 1—PURPOSE, APPLICABILITY, AND RESPONSIBILITIES 6

1.1. Purpose

1.2. Roles and Responsibilities

Chapter 2—NAF REQUIREMENTS 10

2.1. Air Force Nonappropriated Fund (AF NAF) Guidance

2.2. Waivers to NAF Procedures

2.3. Review Meetings

2.4. NAF Purchase Card Training

2.5. Suspended or Debarred Firms

2.6. Legal Review

2.7. Team Approach

2.8. NAF Procurement Exemptions

2.9. Audit Review

2.10. Centrally Funded Requirements

Chapter 3—NAF CONTRACTING OFFICER TRAINING AND PURCHASING

AUTHORITY 13

3.1. NAF Contracting Training

3.2. NAF Contracting Officer Warrants

3.3. Unlimited Contracting Officer Authority

3.4. Warrant Limitations:

https://dpcld.defense.gov/

DAFMAN64-119 30 AUGUST 2023 3

3.5. Requesting a Warrant

3.6. NAF Contracting Officer Nominations

3.7. Appointment of Contracting Officers

3.8. Authority of Contracting Officers and Their Representatives

3.9. Restrictions

3.10. Ethics

3.11. Splitting Requirements

3.12. Emergency Purchases

3.13. Warrants not Required

3.14. Annual Review

3.15. AFNAFPO Review

Chapter 4—NAF PURCHASING PROCEDURES USING THE COMMANDER’S SMART

BUY PROGRAM 19

4.1. Commander’s Smart Buy Program

Chapter 5—SERVICING CONTRACTING OFFICE 21

5.1. Contracting Support

5.2. NAF Standard Clauses

5.3. Appropriated Fund Purchases

Chapter 6—SPECIAL NAF REQUIREMENTS 23

6.1. NAF Contracting Requirements

6.2. NAF Renovation, Repair and Construction Contracts

6.3. NAF Sources of Supply

6.4. Other Sources

6.5. Buying Products Containing Recovered Materials

6.6. Competition Requirements for Open Market Purchases

6.7. Resale/Rental (Open Market)

6.8. Brand Name and Sole Source

6.9. Brand Name or Equal

6.10. Determination of Responsibility

6.11. Design Inclusion Provision

6.12. Performance Period of NAF Contracts or Agreements

6.13. Purchase of Hazardous Materials

6.14. Information Technology Coordination

4 DAFMAN64-119 30 AUGUST 2023

6.15. NAF VEHICLES

6.16. Financial Services

Chapter 7—PURCHASE REQUEST 28

7.1. Purchase Request Guidance

7.2. Numbering Purchase Requests

7.3. DoD Sustainable Procurement Program

7.4. Authorization of Additional Funds against Original Purchase Requests

Chapter 8—SOLICITATIONS AND AWARD 29

8.1. Solicitations

8.2. Synopsis (Applies to AFNAFPO Only)

8.3. Source Selection (Applies to AFNAFPO Only)

8.4. Debriefings

8.5. Pricing Summaries and Price Negotiation Memorandums

8.6. Award Types

8.7. Numbering of Contracts and Orders

8.8. Clauses and Certifications

8.9. Payment Terms

8.10. Contract Approvals

8.11. Base Servicing Contracting Office Contract Actions

Chapter 9—BLANKET PURCHASE AGREEMENTS AND BLANKET DELIVERY

ORDERS 34

9.1. Blanket Purchase Agreements

9.2. Blanket Delivery Orders

9.3. Reviews

Chapter 10—SPECIAL TYPE CONTRACTS AND AGREEMENTS 37

10.1. Formats

10.2. Entertainment Contracts

10.3. Aircraft Lease Agreement

10.4. Aero Club Instructor and Mechanic Contracts

10.5. Individual Service Contracts

10.6. Nonpersonal Services

10.7. Consignment Contract, Charter Flight/Tour Desk Concessionaire Contract, and

Ticket Consignment Agreement

DAFMAN64-119 30 AUGUST 2023 5

10.8. Concessionaire Contract

10.9. Contracting for Training and Education

10.10. Contracts with Government Employees

10.11. Gifts and Donations

10.12. Commercial Sponsorship

10.13. Purchasing of Advertising

10.14. Public-Private Ventures

Chapter 11—CONTRACT ADMINISTRATION 40

11.1. Contract Administration

11.2. Inspection, Acceptance, and Receiving Reports

11.3. Termination of Orders or Contracts

11.4. Changes to Award Documents

11.5. Protests

11.6. Claims

11.7. NAF Ratification Procedures

Chapter 12—ELECTRONIC COMMERCE IN NAF CONTRACTING 48

12.1. Electronic Commerce

12.2. Contracting Officer’s Signature

12.3. Electronic Commerce Distribution

12.4. Electronic Creation and Storage of Contract Files

Attachment 1—GLOSSARY OF REFERENCES AND SUPPORTING INFORMATION 50

Attachment 2—TWENTY COMMON LAW FACTORS IN INDIVIDUAL SERVICE

CONTRACTS 56

Attachment 3—FILING CLAIMS FOR LOSS OF OR DAMAGE TO IN TRANSIT NAF

PROPERTY 59

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Chapter 1

PURPOSE, APPLICABILITY, AND RESPONSIBILITIES

1.1. Purpose. This DAFMAN describes contracting policies and procedures for Air Force

Nonappropriated Fund (AF NAF) Contracting Officers. It applies to USSF SFB/Deltas. FSS NAF contracts are led by USAF warranted contracting officers supported by AFSVC with policy lead from A1S. Force Support units at USSF/SFB/Deltas are under the Air Force Nonappropriated Fund

Instrumentality (NAFI) enterprise and all NAF Contracting Officer warrants are issued by Air

Force Nonappropriated Fund Procurement Office (AFNAFPO). It creates no rights or remedies and may not be relied on by any person, organization, or other non-governmental entity to allege a denial of any rights or remedies.

1.2. Roles and Responsibilities.

1.2.1. Deputy Assistant Secretary (Contracting) (SAF/AQC):

1.2.1.1. Is responsible for approving NAF contracting policies and procedures and oversees the AFNAFPO.

1.2.1.2. Serves as the protest appeal authority for AFNAFPO awarded acquisitions.

1.2.1.3. Acts as the approval authority for requests for waivers to NAF contracting policy.

1.2.1.4. Oversees NAF claims exceeding $500,000.00.

1.2.2. The Directorate of AF NAF Procurement, Air Force Services Center (AFSVC/VP):

1.2.2.1. Issues NAF Contracting Officer warrants.

1.2.2.2. Provides NAF contracting training and administers the NAF Contracting Officer warrant program.

1.2.2.3. Approves ratification actions above the threshold established for base level in accordance with paragraph 11.7.

1.2.2.4. Represents the Air Force on the Department of Defense (DoD) Subcommittee for

NAF Contracting.

1.2.2.5. Conducts periodic reviews of installation NAF procurement programs.

1.2.2.6. Manages the NAF Purchase Card Program, including determining the purchasing thresholds for the NAF Purchase Card.

1.2.2.7. Manages the NAF Electronic Purchasing Systems and E-Commerce.

1.2.2.8. Manages the Commander’s Smart Buy Program which includes:

1.2.2.8.1. Purchasing interior design projects.

1.2.2.8.2. Providing direct or individual support for NAF requirements that exceed base-level warrant authority.

1.2.2.8.3. Managing on-site trade show purchase teams.

1.2.2.8.4. Managing all marketing of AFNAFPO programs via brochures, catalogs, and web presence.

DAFMAN64-119 30 AUGUST 2023 7

1.2.2.9. Acts as the appeal authority for protests filed on base-level acquisitions.

1.2.3. Mission Support Group Commander or Equivalent. Assists the installation Commander in overseeing Nonappropriated Fund Instrumentalities (NAFIs) at the installation by:

1.2.3.1. Authorizing demonstration of commercial products. The Mission Support Group

Commander will properly control such demonstrations to prevent violations of 5 CFR Part

2635, Standards of Ethical Conduct for Employees of the Executive Branch and Air Force policy. (T-0) NAF Contracting Officer participation is required for all demonstrations of commercial products and contractor capability briefings.

1.2.3.2. Approving concessionaire contracts.

1.2.4. Force Support Commander or Equivalent. Directs services activities at an installation, including the following NAF contracting responsibilities. The Force Support Commander (or equivalent) will:

1.2.4.1. At least annually, preside over a meeting of key NAF procurement personnel and

Servicing Contracting Office representative to identify methods of improving NAF contracting procedures. (T-2)

1.2.4.2. Certify on an annual basis, that adequate controls are in place and NAF contracting is being conducted IAW current directives. Certifications for the previous fiscal year are submitted to AFSVC/VP, no later than 30 November each year. The Servicing Contracting

Office may be requested to perform a review of NAF procurements to serve as the basis for the certification.

1.2.4.3. Ensure NAF personnel receive adequate procurement training to support the NAF

Contracting Officer in NAF procurements.

1.2.4.4. Ensure adequate acquisition planning.

1.2.4.5. Ensure compliance with the Commander’s Smart Buy Program.

1.2.4.6. Approve ratification actions IAW paragraph 11.7 of this manual.

1.2.4.7. Approve consignment agreements IAW DAFI 34-101, Department of the Air

Force Morale, Welfare, and Recreation (MWR) Programs and Use Eligibility.

1.2.5. Resource Manager or Equivalent. Responsible for ensuring NAF purchases, including

NAF Purchase Card purchases, are made IAW current directives and guidance.

1.2.6. NAF Contracting Officer. The NAF contracting office will keep a current copy of this manual on file, either electronically or in hard copy. NAF Contracting Officers will:

1.2.6.1. Delegate purchasing authority IAW paragraph 3.8.2.

1.2.6.2. Execute orders or contracts within the limits of their warrants.

1.2.6.3. Use the Commander’s Smart Buy Program as the primary source of supply (except as otherwise required) for acquiring products and services.

1.2.6.4. Comply with the Essential Products Program.

1.2.6.5. Resolve protests filed at base level with the support of the servicing legal office or Contract Attorney.

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1.2.6.6. Settle contract disputes with the support of the servicing legal office or Contract

Attorney.

1.2.6.7. Seek legal coordination and review as outlined in paragraph 2.6 and other areas of this manual, DAFI 34-101, Department of the Air Force Morale, Welfare, and

Recreation (MWR) Programs and Use Eligibility, DAFI 34-108, Commercial Sponsorship and Sale of Advertising, AFI 65-106, Appropriated Fund Support of Morale, Welfare and

Recreation (MWR) and Other Nonappropriated Fund Instrumentalities (NAFIs), AFI 65-

107, Nonappropriated Funds Financial Management Oversight Responsibilities, or as otherwise appropriate.

1.2.6.8. Interpret and ensure compliance with the terms and conditions of contracts and safeguard the interests of the NAFI in its contractual relationships.

1.2.6.9. Ensure that sufficient funds are available for obligation.

1.2.6.10. Ensure that prices offered are fair and reasonable prior to award and document appropriately.

1.2.6.11. Identify and evaluate potential organizational conflicts of interest when awarding contracts to government employees or business organizations substantially owned or controlled by government employees. Coordinate with the servicing Office of the Staff

Judge Advocate or Contract Attorney.

1.2.6.12. Ensure all requirements packages for NAF projects and procurements that will, or have the potential to, modify, alter, connect to and/or add to DAF real property and/or utility systems, includes evidence of Base Civil Engineer approval (typically AF Form 332, Base Civil Engineer Work Request) prior to acceptance.

1.2.7. Servicing Contracting Office. The Servicing Contracting Office coordinates with NAF

Contracting Officers to ensure there is an effective NAF contracting program. The Servicing

Contracting Office will:

1.2.7.1. Provide NAF contracting support IAW DoDI 4105.67 and this manual.

1.2.7.2. Purchase NAF requirements not specifically assigned to the AFNAFPO or the local NAF Contracting Officer.

1.2.7.3. Include NAF requirements in acquisitions for services common to both appropriated and nonappropriated fund supported activities when cost effective to the

NAFI.

1.2.8. Servicing Office of the Staff Judge Advocate or Contract Attorney. The servicing Office of the Staff Judge Advocate or Contract Attorney will provide legal oversight of all NAF contracting activities and conduct annual ethics briefings or other authorized training in compliance with 5 CFR Part 2635. If the servicing Office of the Staff Judge Advocate requires additional guidance and direction on a NAF contracting issue, they should contact the Air

Force Installation Mission Support Center Services Law Division (AFIMSC/JAW). The

Department of the Air Force General Counsel, Acquisition Division (SAF/GCQ) and The

Judge Advocate General (AF/JA), advises SAF/AQC on matters regarding authority as outlined in DoDI 4105.67 and this manual. Specifically, the servicing Office of the Staff Judge

Advocate or Contract Attorney will:

DAFMAN64-119 30 AUGUST 2023 9

1.2.8.1. Determine if NAF contracting actions comply with this manual and AFPD 64-1.

1.2.8.2. Determine if proposed ratifications are legally sufficient.

1.2.8.3. Determine if proposed resolution of a contract dispute is legally supportable.

1.2.8.4. Determine the legal sufficiency of proposed contracting actions including novation agreements and any proposed termination action.

1.2.8.5. Provide advice on potential organizational conflicts of interest.

1.2.8.6. Provide advice on resolution of protests.

1.2.8.7. Provide legal advice on contracting actions as outlined in paragraph 2.6.

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Chapter 2

NAF REQUIREMENTS

2.1. Air Force Nonappropriated Fund (AF NAF) Guidance. Only trained procurement personnel will accomplish NAF procurement. (T-0) NAF procurements are expected to be made in a fair, equitable, and impartial manner and in the best interest of the NAFI. NAF or appropriated fund personnel may procure NAF requirements. NAF procurements must use competitive negotiation procedures to the maximum extent practicable. (T-0) Offers will be solicited from a reasonable number of sources except when non-competitive procurement is justified. (T-0)

Contracting Officers will award NAF contracts to responsible offerors who offer the best value to the NAFI. (T-0) NAF activities will ensure existing NAF and appropriated fund contracts and agreements are used to satisfy NAF requirements when available, cost effective, and meet the needs of the requiring activity. (T-2) NAFIs will authorize other DoD NAFI organizations to place delivery orders against centralized contracts to the maximum extent possible. (T-0) Procurement methods and procedures that result in firm fixed-price contracts are preferred; however, price adjustment provisions may be used when the Contracting Officer determines it is in the best interest of the NAFI. In executing NAF procurements, Contracting Officers comply with the requirements of applicable statutes, regulations, or directives as discussed in this manual. (T-0)

Contracting Officers will ensure each NAF contract:

2.1.1. Contains clauses governing changes, examinations of records, dispute resolutions, and terminations. (T-2) Required NAF Contracting Clauses and General Provisions are located in the NAF electronic purchasing system and can also be found at https://www.afnafpo.afsv.net.

2.1.2. Applies Title 41 U.S.C. Sections 8301-8305, also known and referred to in this manual as the Buy American Act, and Title 19 U.S.C. Sections 2501-2582, also known and referred to in this manual as the Trade Agreements Act of 1979, to the procurement of non-resale supplies and equipment. (T-0)

2.2. Waivers to NAF Procedures. Field activity waivers to NAF procedures must be obtained from the AFNAFPO. (T-2) AFNAFPO requests for waivers to NAF procedures set forth in this manual must be approved by the Deputy Assistant Secretary (Contracting) (SAF/AQC). (T-1)

2.3. Review Meetings. The head of the installation Services function (e.g., squadron commander, director, or equivalent) will meet at least annually or more frequently, if desired, with operating personnel to identify ways and means of improving NAF contracting procedures and to review the

Commander’s Smart Buy Program and purchasing reports generated through the NAF electronic purchasing system. (T-2) Minutes of the meeting will be taken, distributed to all attendees, and kept on file.

2.4. NAF Purchase Card Training. Personnel delegated purchasing duties must receive formal training from the delegating authority. (T-2) The issuing authority will provide training to NAF

Purchase Card cardholders. (T-2) The Resource Manager will maintain records of such training.

(T-2) The Resource Manager ensures NAF purchases are made IAW current directives and guidance.

2.5. Suspended or Debarred Firms. Contracting Officers must be sure that firms or individuals named in the entity exclusion records are not solicited for offers or quotations or awarded contracts.

https://www.afnafpo.afsv.net/

DAFMAN64-119 30 AUGUST 2023 11

(T-0). Information on parties excluded from receiving Federal contracts is located on the System for Award Management located at https://www.sam.gov.

2.6. Legal Review. Contracting Officers should obtain legal advice from the servicing Office of the Staff Judge Advocate or Contract Attorney during all phases of the acquisition. In particular, Contracting Officers will obtain legal advice, coordination, and review for the following (T-0):

2.6.1. Regardless of dollar amount:

2.6.1.1. Concessionaire, no-cost, and entertainment contracts,

2.6.1.2. Source selections,

2.6.1.3. Contracts involving licensing, technical data rights and patents,

2.6.1.4. Protests before and after award (see paragraph 11.5.),

2.6.1.5. Terminations (see paragraph 11.3.),

2.6.1.6. Contract disputes,

2.6.1.7. Novation agreements,

2.6.1.8. Contract claims (see paragraph 11.6.),

2.6.1.9. Changes to NAF contract templates,

2.6.1.10. Ratifications (see paragraph 11.7.),

2.6.1.11. Potential organizational conflicts of interest, and

2.6.1.12. Deviations (see paragraph 8.8.).

2.6.2. All brand name and sole source justification requests for actions expected to exceed

$250,000. (see paragraph 6.8). (T-0)

2.6.3. The Contracting Officer may also seek legal advice on any other legal issue at the discretion of the Contracting Officer.

2.7. Team Approach. A successful NAF procurement requires a team approach. The team is composed of key stakeholders, and each has a vital role to play in the procurement process. The team, at a minimum, consists of the requiring activity, finance, the Contracting Officer, the servicing Office of the Staff Judge Advocate, and the individual responsible for receiving the end-item or service. For all work involving the modification or addition to DAF real property, the team must have a representative from the Base Civil Engineer office. (T-2) Although the team supports the various members, individuals possess the expertise to complete their area of responsibility.

When the separation of duties is not practicable, the Force Support Commander (or equivalent) will ensure the circumstances are clearly documented in the NAF electronic purchasing system.

(T-2) The roles and responsibilities include:

2.7.1. Requiring Activity:

2.7.1.1. Preparation of the purchase request to include a realistic delivery schedule as well as appropriately coordinated requirement documents (i.e., performance work statement, statement of work, Independent Government Estimate including supporting rationale showing how the estimate was developed, market research, suggested sources, Base Civil

Engineer coordination).

https://www.sam.gov/

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2.7.1.2. Approval of the purchase request.

2.7.1.3. Receipt of goods and services.

2.7.2. Resource Manager or Designated Funds Custodian: Certification of funds availability.

2.7.3. Contracting Officer:

2.7.3.1. Execution of a contract document.

2.7.3.2. Resolution of issues related to the contract.

2.7.3.3. Contract Modifications.

2.7.4. NAF Accounting Office/Shared Service Center: Issuance of payment for the goods or services.

2.7.5. Base Civil Engineer: Approve all work affecting DAF real property.

2.7.6. Servicing Office of Staff Judge Advocate or the Contract Attorney Provide legal oversight of all NAF contracting activities (See paragraphs 1.2.8 and 2.6.).

2.8. NAF Procurement Exemptions. The following regulations and similar directive publications do not apply to NAF procurements:

2.8.1. Federal Acquisition Regulation, the Defense Federal Acquisition Regulation

Supplement, or DoD Component supplements to the same, and Department of the Air Force

Federal Acquisition Regulation Supplements.

2.8.2. Title 15 U.S.C. Section 631 et seq., also known as the Small Business Act, as amended, and Federal Acquisition Regulation guidance relative to small business along with other award-preference programs. NAF contracts are awarded to the firm whose proposal is most advantageous to the NAFI.

2.8.3. Buy American Act and Trade Agreements Act of 1979, do not apply to NAFI purchases of resale items.

2.9. Audit Review. The Air Force Audit Agency may audit selected activities IAW AFPD 65-3, Audit Services, and may also conduct audits requested by management. As provided in DoDI

7600.06, Audit of Nonappropriated Fund Instrumentalities (NAFI) and Related Activities, the

Defense Contract Audit Agency may provide audit services to evaluate price proposals, to audit contracts, and to review NAF contract pricing claims against contractors.

2.10. Centrally Funded Requirements. The Directorate of AF NAF Procurement is the primary contracting office for all Air Force Services Center (AFSVC) centrally funded and centrally managed NAF requirements. Approval to utilize a different contracting office to execute these requirements must be obtained from the Director of AF NAF Procurement. (T-2)

DAFMAN64-119 30 AUGUST 2023 13

Chapter 3

NAF CONTRACTING OFFICER TRAINING AND PURCHASING AUTHORITY

3.1. NAF Contracting Training. NAF Contracting Officers will complete the required training listed below:

3.1.1. Air Force NAF Purchasing Course. (T-2) This course provides comprehensive training in Air Force NAF Contracting Policies and Procedures and hands-on training in the NAF electronic purchasing system. It provides students with the knowledge needed to perform as a

NAF Purchasing Agent or Contracting Officer and is a prerequisite for obtaining a NAF

Contracting Officer warrant.

3.2. NAF Contracting Officer Warrants. At the installation, warrants are limited to $10,000 and $25,000 on open market non-resale purchases. Warrants that exceed $25,000 are reserved for

AFNAFPO employees.

3.2.1. $10,000 NAF Contracting Officer appointment. To qualify, the applicant must have at least one year of NAF Services experience or 1 year of contracting experience with the government or industry. (T-2) In addition, the individual must complete the AF NAF

Purchasing Course offered by AFNAFPO. (T-2)

3.2.2. $25,000 NAF Contracting Officer appointment. The applicant must meet the criteria set forth in paragraph 3.2.1 and complete two additional contracting courses. (T-2) In addition, the applicant must have held a $10,000 warrant for at least six months before becoming eligible to apply for a $25,000 warrant. (T-2) A list of these additional courses may be obtained from the AFNAFPO web site.

3.2.3. $50,000 NAF Contracting Officer appointment. The applicant must meet the criteria set forth in paragraph 3.2.2 and complete two additional contracting courses. (T-2) In addition, the applicant must have held a $25,000 warrant for at least one year before becoming eligible to apply for a $50,000 warrant. (T-2) A list of these additional courses may be obtained from the AFNAFPO web site.

3.2.4. $100,000 NAF Contracting Officer appointment. The applicant must meet the criteria set forth in paragraph 3.2.3 and complete two additional contracting courses. (T-2) In addition, the applicant must have held a $50,000 warrant for at least one year before becoming eligible to apply for a $100,000 warrant. (T-2) A list of these additional courses may be obtained from the AFNAFPO web site.

3.2.5. Timeframe for requesting a new warrant after completion of the AFNAF Purchasing

Course and criteria for completion of the online AFNAF Contracting Officer Refresher Course for members holding a limited NAF Certificate of Appointment (CoA, aka warrant) is established as follows:

3.2.5.1. All NAF Contracting Officer candidates who will be acting in the capacity of primary or back-up COs must obtain their warrant within 90 days after completing the

AFNAF Purchasing Course. Failure to do so will require individuals to complete the

AFNAF Contracting Officer Refresher Training before a CoA will be issued. (T-2)

14 DAFMAN64-119 30 AUGUST 2023

3.2.5.2. NAF Contracting Officers s are required to complete the online NAF Contracting

Officer Refresher Course every two (2) years in order to retain their respective warrant.

(T-2)

3.3. Unlimited Contracting Officer Authority. Individuals holding a NAF Contracting Officer warrant have unlimited authority (no monetary limit) to purchase the following (subject to funds availability):

3.3.1. Resale and rental items (except vehicles) include: sporting goods for pro shops, bowling balls and shoes, automotive care products, aviation fuel, tents, etc. See paragraph 6.7 for additional documentation requirements.

3.3.2. Prizes. Examples: Bingo prizes, door prizes, or any other items that would fall under the category of prizes. Activity managers should consult with the servicing Office of the Staff

Judge Advocate on appropriateness of the contemplated prize items.

3.3.3. Delivery orders issued against AFNAFPO contracts, or other Indefinite

Delivery/Indefinite Quantity type contracts, where allowed, subject to the limitations in paragraph 3.4. Contracting Officers must review General Services Administration contracts to the maximum extent possible to determine price reasonableness. (T-2)

3.3.4. Purchases from government entities, e.g., commissaries, exchanges, other Air Force

Services or DoD activities.

3.3.5. Transportation associated with purchases of supplies or services when shipped Free on-

Board origin.

3.3.6. Concessionaire contracts for commodities (to include airshow/open house events) and tickets and tours.

3.3.7. Purchases for emergencies outside of normal operational hours or away from the installation (e.g., aero club aircraft repair).

3.3.8. Direct buys for transportation tickets (airlines, bus, etc.) and all lodging facilities including any food requirements associated with lodging. Note: While there is no monetary limit, Contracting Officers always seek best value for the NAFI.

3.3.9. Individual service contracts.

3.3.10. Consignment contracts.

3.3.11. Purchases of tickets associated with events and tours.

3.3.12. Aircraft lease agreements.

3.3.13. Flight and Ground Instructor contracts.

3.3.14. Nonpersonal Service Awards for Overseas Special Events: Overseas NAF Contracting

Officers have authority to procure elements in conjunction with special events, (e.g., tours).

Purchases must be competed, and price reasonableness documented. (T-2) Consider ticket purchases as resale and thus without limit. All pertinent documentation will accompany the subsequent award in NAF electronic purchasing system. (T-2)

3.3.14.1. Rental of bus, boat, ferry, airline, or train for passenger transportation.

3.3.14.2. Hotel or other lodging, accommodations (may include meals).

DAFMAN64-119 30 AUGUST 2023 15

3.3.14.3. Entrance/admissions, tickets to theme parks, museums, castles, historic sites, etc.

3.3.14.4. Tour guide services.

3.3.14.5. Meals, which may include breakfast, lunch, dinner, buffet, and/or snacks.

3.4. Warrant Limitations: Dollar Limitations on a NAF Contracting Officer warrant are based on the total award value.

3.4.1. NAF Contracting Officer has an unlimited authority to issue delivery orders against pre-priced Nonappropriated Fund Purchasing Agreements and/or any federally issued Indefinite

Delivery/Indefinite Quantity contracts for commodities as authorized. The exception is where these ordering agreements contain unpriced services subject to Title 41 U.S.C. Sections 6701-

6707, Service Contract Labor Standards or Title 40 U.S.C. Sections 3141-3148, Wage Rate

Requirements (Construction) for which they are subject to the warrant limitations IAW paragraphs 3.4.2, 3.4.3 and 3.4.5 (T-0) Local contracting actions exceeding these limits must be executed by the Servicing Contracting Office IAW paragraphs 5.1.3 and 5.1.4. (T-2)

3.4.2. Construction will not exceed $2,000 when the Construction Wage Rate Requirements

Statute applies. (T-0) (Note: The Construction Wage Rate Requirements Statute applies within the 50 states (including all U.S territories) and the District of Columbia). Limit is up to the

NAF Contracting Officer warrant overseas.

3.4.3. Nonpersonal services will not exceed $2,500 when the Service Contract Labor

Standards, applies. (T-0) (Note: The Service Contract Labor Standards applies in the 50 states

(including all U.S territories) and the District of Columbia.) On contracts performed both inside the U.S and outside the U.S., the Act applies only to the portion of the contract performed inside the U.S., and up to the NAF Contracting Officer warrant overseas. When the Service

Contract Labor Standards does not apply, the limit is up to the NAF Contracting Officer warrant.

3.4.4. Entertainment contracts are limited to $500,000 at installation level. Contracts that exceed $500,000 must be sent to the Base Servicing Contracting Office or AFNAFPO for award. (T-2)

3.4.5. Concessionaire contracts for services (including Amusement and Vending Machine and

Charter Flight & Tour Desk) will not exceed $2,500 when the Service Contract Labor

Standards applies. (T-2). When the Service Contract Labor Standards does not apply, the limit is up to the NAF Contracting Officer warrant. The limit is up to the NAF Contracting Officer warrant overseas.

3.4.6. Contact the applicable regional Air Force Labor Advisor’s office if there is any doubt about the applicability of the Service Contract Labor Standards or Construction Wage Rate

Requirements Statute. A directory of regional Labor Advisors is available at:

http://ww3.safaq.hq.af.mil/Contracting.

3.4.7. Personal services contracts are prohibited, as defined in DoDI 1400.25-V1401, DoD

Civilian Personnel Management System: General Information Concerning Nonappropriated

Fund (NAF) Personnel Policy. (T-0)

3.4.8. Transportation, postage, and insurance charges are not considered in computing the total cost of an award.

http://ww3.safaq.hq.af.mil/Contracting

16 DAFMAN64-119 30 AUGUST 2023

3.4.9. Blanket Purchase Agreements (BPA) and Blanket Delivery Orders (BDO) for services will not exceed $2,500 when the Service Contract Labor Standards applies. (T-0) The limit is up to the NAF Contracting Officer warrant overseas. When the Service Contract Labor

Standards does not apply, the limit is up to the NAF Contracting Officer warrant.

3.5. Requesting a Warrant. NAF Contracting Officers are required to have a NAF Contracting

Officer warrant for contracting authority. (T-2) Personnel must complete the requirements at paragraph 3.2 to qualify for a Contracting Officer appointment. (T-2)

3.6. NAF Contracting Officer Nominations. At the installation, the Force Support Commander

(or equivalent) recommends and provides complete written justification for the appointment of a

NAF Contracting Officer. The Force Support Commander (or equivalent) must submit the request for appointment in writing and include the person’s name, grade, position title, phone and email address, duty address, and documentation concerning the completion of course requirements. (T-2)

The Force Support Commander (or equivalent) must forward the request for appointment to

AFNAFPO. (T-2)

3.6.1. In nominating Contracting Officers, the Force Support Commander (or equivalent) will consider the complexity and dollar value of the acquisitions to be assigned and the individual’s experience, training, education, business acumen, judgment, character, and reputation. (T-2)

3.6.2. The Force Support Commander (or equivalent) will review the Contracting Officer

Appointments annually. (T-2) The Force Support Commander (or equivalent) will forward requests for termination to AFNAFPO when the appointment is no longer needed. (T-2)

3.7. Appointment of Contracting Officers. Contracting Officers will be appointed by

AFNAFPO, in writing, by means of a certificate of appointment. (T-0) Warrant appointment limits are set forth in paragraphs 3.2, 3.3 and 3.4. The certificate will state and define the scope of the

Contracting Officer’s authority with respect to dollar limitations, legal or regulatory limitations, and types of contracts which the Contracting Officer is authorized to enter into. (T-0) Certificates will be posted in public view or made available on request. Warranted Contracting Officers at the

Servicing Contracting Office are not required to have a NAF certificate of appointment to obligate nonappropriated funds. (T-2) Warranted Contracting Officers at the Servicing Contracting Office are authorized to obligate NAF funds up to the limit of their warrants. Limitations in paragraphs

3.2 through 3.2.4 do not apply. (T-2) The appointing official is the authority for terminating a

Contracting Officer’s appointment. Terminations may be for reasons such as reassignment, termination of employment, or unsatisfactory performance.

3.8. Authority of Contracting Officers and Their Representatives. Contracting Officers are the only individuals authorized to enter into NAF contracts. (T-2) Contracting Officers are allowed wide latitude to exercise sound business judgment and have the authority to:

3.8.1. Negotiate, award, administer, or terminate contracts and make related determinations and findings. Contracting Officers will bind the NAFI only to the extent of the authority delegated to them. (T-2)

3.8.2. Delegate, in writing, purchasing authority for the following:

3.8.2.1. Calls against Blanket Purchase Agreements and Blanket Delivery Orders.

3.8.2.2. Execution of Entertainment Contracts.

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3.9. Restrictions. Contracting Officers will not:

3.9.1. Award a purchase order or contract that has a total price (including options) over the dollar limitations authorized by his/her warrant. (T-0)

3.9.2. Modify a purchase order or contract if it increases the total price of the award (including options) to an amount that exceeds the dollar limitations authorized by his/her warrant, even though the amount of the modification may be within the dollar limitation of the warrant. (T-2)

3.9.3. Delegate their signature and/or decision-making authority as Contracting Officer, except as authorized by this manual. (T-2)

3.9.4. Obligate appropriated funds of the United States. (T-0) Procurements that combine

Appropriated Fund and NAF dollars are accomplished by an Appropriated Fund Contracting

Officer using Appropriated Fund contracting procedures. (T-2)

3.9.5. Award a NAF project requiring connection to or modification of DAF real property prior to Base Civil Engineer approval (typically via AF Form 332). (T-3)

3.9.6. Award a concessionaire or other “no-cost” contract or agreement that may create a contingent liability requiring appropriated funds or nonappropriated funds. (T-2)

3.10. Ethics. All individuals involved directly or indirectly in the acquisition process for NAF will abide by the requirements of 5 CFR Part 2635. (T-0). Contracting Officers and other personnel are responsible for reporting any suspected violations of law or regulation to the proper authorities.

Remain alert for indicators of fraud, waste, and abuse. Report suspected violations in accordance with AFI 90-301, Inspector General Complaints Resolution. Individuals involved in the NAF acquisition process will receive ethics training, as prescribed by the Standards of Conduct. (T-0)

Contracting Officers and other personnel involved with the NAF acquisition process may be required to file financial disclosure reports.

3.11. Splitting Requirements. The total dollar value of a contract is based on the aggregate sum whether it includes revenues or expenses of the NAFI. Contracting Officers and requirements generating personnel will not split requirements into smaller dollar amounts to circumvent the dollar limitations set forth in this manual. (T-2)

3.12. Emergency Purchases. If emergencies arise outside of normal business hours, NAF

Contracting Officers may execute emergency purchases to mitigate loss, damage, or interruption in service. Individuals must document the reason for the emergency and notify the NAF

Contracting Officer the first working day after the purchase. (T-2) Refer to AFMAN 34-201, Use of Nonappropriated Funds, for further guidance for emergency purchases.

3.13. Warrants not Required. Warrants are not required to make Special Morale and Welfare purchases under the commander’s Special Morale and Welfare expenditure authority, petty cash purchases, or purchases from other intra-base NAFIs, IAW AFMAN 34-201 Chapter 12.

3.14. Annual Review. On an annual basis, the NAF Contracting Officer will prepare the NAF

Surveillance Checklist for certification by the Force Support Commander (or equivalent). (T-2)

Certifications for the previous fiscal year will be submitted to AFNAFPO, no later than 30

November each year. (T-2) The Servicing Contracting Office may be requested to perform a review of installation NAF procurements to serve as the basis for the certification.

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3.15. AFNAFPO Review. The AFNAFPO may conduct periodic reviews of installation NAF procurement programs to augment installation-level reviews. These can be conducted by on-site visits or a review of documents in the NAF electronic purchasing system.

3.15.1. On-site Field Training Visits. A Field Training Visit is conducted at the request of the individual installation. The intent of the on-site Field Training Visit program is to provide guidance and training to installation NAF activities and provide recommendations for improving the purchasing program. At the conclusion of the Field Training Visit, the installation Force Support Commander (or equivalent) is provided a summary of the visit, if requested.

3.15.2. NAF Electronic Purchasing Systems Reviews. AFNAFPO periodically conducts installation-level reviews of contracts and other documentation loaded in the NAF Electronic

Purchasing Systems. The main purpose is to assist the base by identifying specific problem areas and offering recommendations for improvement. No formal report is provided to the base with this review.

DAFMAN64-119 30 AUGUST 2023 19

Chapter 4

NAF PURCHASING PROCEDURES USING THE COMMANDER’S SMART BUY

PROGRAM

4.1. Commander’s Smart Buy Program. The Commander’s Smart Buy Program is a cooperative purchasing program between installation level NAF activities and the AFNAFPO. The program assists all commanders, regardless of service component, to acquire quality products at favorable prices.

4.1.1. Essential Products Program. Essential Products Program is for standardizing common-need products; if an item is on an Essential Products Program contract, any purchase of that item must be from that contract. (T-2) NAF Contracting Officer has an unlimited authority

(funds permitting) to issue delivery orders. Competition is not required. Contracting Officers will submit requests for waivers to an Essential Products Program contract in writing to

AFNAFPO. (T-2)

4.1.2. Nonappropriated Fund Purchasing Agreements. Contracting Officers will use

Nonappropriated Fund Purchase Agreements where the Essential Products Program is not applicable. (T-2) NAF Contracting Officers have unlimited authority (funds permitting) to award pre-priced delivery orders against pre-priced Nonappropriated Fund Purchase

Agreements. Competition is not required. Contracting Officer warrant limitations IAW paragraph 3.4.2 and paragraph 3.4.3 apply to Nonappropriated Fund Purchase Agreement orders requiring negotiation, such as those with service requirements subject to Service

Contract Labor Standards or Wage Rate Requirements (Construction). These limitations also apply to agreements where only labor rates are negotiated and the services such as installation are not pre-priced.

4.1.3. Interior Design Projects. Interior design projects change the design of a room or building. AFNAFPO executes interior design projects. A requirement is considered an interior design project when a minimum of three elements of a room are changed (e.g., wall treatments, flooring, draperies, lighting, wall art, furniture). Contracting Officers will forward interior design projects and furniture requirements that involve Customer’s Own Material to

AFNAFPO for execution. (T-2) All projects modifying DAF real property (e.g., wall treatments, flooring, painting, electrical outlet moves, etc.) will be approved by the Base Civil

Engineer. (T-3)

4.1.4. Trade Shows. This program presents an opportunity each year for installation level managers to receive direct support from AFNAFPO while attending various trade shows.

Working in concert with our Nonappropriated Fund Purchase Agreement vendors, special discounts are offered during these shows that are ordinarily not offered during any other time of the year. AFNAFPO may perform leverage buying in support of programs and installations during trade shows, (e.g., Professional Golfers Association Show; Hospitality Design Expo;

National Restaurant Association Show; Bowl Expo).

4.1.5. Consolidated Buys. Consolidated buys create an opportunity for Services operations worldwide to participate in unique purchasing opportunities by consolidating common requirements under one order issued by AFNAFPO. Consolidated buys focus on generating volume to create additional discounts from the Nonappropriated Fund Purchase Agreement

20 DAFMAN64-119 30 AUGUST 2023

pricing program. Golf carts and ski equipment are examples of bulk purchases made under the consolidated buy initiative.

4.1.6. Product Bulletins. This program works very successfully for Nonappropriated Fund

Purchase Agreement contractors who want to market their programs aggressively to a customer base. AFNAFPO works with trading partners to promote and market various products in their product line. It is a simplified process distributed via product bulletin format announcing pricing specials, closeouts, new products, and various other applications that complement trading partners' annual marketing strategy. In addition to distributing these bulletins to worldwide Services customers, AFNAFPO posts these special buying opportunities on the AFNAFPO websites.

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Chapter 5

SERVICING CONTRACTING OFFICE

5.1. Contracting Support. The Servicing Contracting Office must use the guidance and procedures of this manual as the method of contracting to support local NAF requirements to the fullest extent possible. (T-1) When Federal Acquisition Regulation clauses are used in NAF contracts, the Contracting Officer deletes references to “Government” and substitutes “NAFI”.

The Small Business Act is not to be applied to NAF contracting actions IAW paragraph 2.8 of this manual. The Servicing Contracting Office provides contracting support for the following:

5.1.1. Contracts that exceed NAF Contracting Officer purchasing authority. NAF Contracting

Officers will coordinate the need for the purchase with the Servicing Contracting Office as early as possible in the purchase process. (T-2) The Servicing Contracting Office will provide the NAF Contracting Officer with a written justification if they are unable to support the requirement. Justification will be signed by the Servicing Contracting Office

Commander/Director or Deputy. (T-2)

5.1.2. Nonpersonal services contracts that exceed NAF Contracting Officer purchasing authority when the Service Contract Labor Standards applies. Nonpersonal services limit is

$2,500 Continental United States (CONUS) where the Service Contract Labor Standards applies and up to the NAF Contracting Officer warrant overseas. This limitation applies to requirements containing goods and services where the service exceeds the NAF Contracting

Officers warrant. Provide a purchase request and statement of work to the Servicing

Contracting Office when establishing a nonpersonal service contract. The value of a recurring services contract and or agreement is measured not by the amount of an individual award or call but by the total value of the award or calls when considered together.

5.1.3. Construction contracts that have received approval through the civil engineer work order/requirements review board process and exceed NAF Contracting Officer purchasing authority when the Wage Rate Requirements (Construction) applies. Limit for NAF

Contracting Officer is $2,000 CONUS and up to the NAF Contracting Officer warrant overseas.

5.1.4. Concessionaire contracts for services. Limit for NAF Contracting Officer is $2,500

CONUS, when the Service Contract Labor Standards applies, and up to the NAF Contracting

Officer warrant overseas. While many are zero-dollar contracts, it is the total monetary value of the relationship that determines the appropriate warrant level to execute. Prior to award/execution of any concessionaire contracts, Base Civil Engineer coordination is required to ensure compliance with utility provision and infrastructure codes. (T-2) Additionally, the

Office of the Staff Judge Advocate coordination is required IAW paragraph 2.6.

5.1.5. NAF requirements placed against Appropriated Fund indefinite-delivery contracts where cost effective.

5.1.6. Special requests for contracting support or technical assistance.

5.1.7. Purchases combining both NAF and Appropriated Fund dollars. Federal Acquisition

Regulation procedures will be followed.

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5.2. NAF Standard Clauses. The Contracting Officer will attach NAF Standard Clauses to all open market purchases. (T-2)

5.3. Appropriated Fund Purchases. Delivery orders citing Appropriated Funds will not be issued against NAF Contracts and Agreements. (T-2) However, the Contracting Officer may use a NAF Contract or Agreement holder as a source for Appropriated Fund requirements.

DAFMAN64-119 30 AUGUST 2023 23

Chapter 6

SPECIAL NAF REQUIREMENTS

6.1. NAF Contracting Requirements. The Federal Acquisition Regulation, Defense Federal

Acquisition Regulation Supplements, and Air Force Federal Acquisition Regulation Supplements do not apply to NAF procurement. Only those clauses required by law, or this manual are mandatory for inclusion in NAF contracts. Federal Acquisition Regulation procedures may be used as guidance in support of NAF procurement processes.

6.2. NAF Renovation, Repair and Construction Contracts. Base the process for acquiring construction upon standard commercial practices. Contracting Officers will not split construction requirements to circumvent dollar limitations set forth in Chapter 3. (T-0) Government or NAFI furnished supplies and equipment is not included when determining the contract value.

Construction services must be approved by the Base Civil Engineer prior to issuing an award.

(T-2) When necessary, schedule Base Civil Engineer inspectors to inspect and accept the work.

6.3. NAF Sources of Supply. Before considering open market commercial suppliers, Contracting Officers will consider the…