This instruction replaces “Memorandum of Agreement for Contract Management,” dated September 2010.
The Memorandum of Agreement for Contract Management instruction adds detail to Delegations of Authority specified in DoD Directive 5105.64, Defense Contract Management Agency (DCMA), Enclosure 1, Para E188.8.131.52., and more specifically, when at least one party in the agreement is an external customer of DCMA. As an outcome, DCMA personnel and external customers will recognize when a Memorandum of Agreement for Contract Management may be necessary and what level of the organization develops, coordinates, publishes and maintains the agreement. This policy does not address agreements primarily covering the acquisition workforce, facilities, information technology, or training, which are the purview of other DCMA Headquarters (HQ) Executive Directors and may be the subject of other processes and procedures. Furthermore, this policy does not address International Agreements such as Reciprocal Defense Procurement Memorandums of Understanding (RDP MOUs), which are under the purview of the Office of the Undersecretary Of Defense, Acquisition, Technology & Logistics (OUSD (AT&L)). DCMA compliance with Annexes of RDP MOUs for Government Quality Assurance and/or Financial Audits is contained in the International Agreements / International Memoranda of Understanding / Host Nation Contract Management Services Instruction.
1. This policy addresses formal agreements negotiated between DCMA entities and external customers for the purpose of facilitating DCMA contract administration support, establishing formal management communication channels, and/or clarifying boundaries for new work requests. The Memorandums of Agreement (MOAs) are not contractually binding and do not supersede statute or regulation.
1.1. MOAs may also be known as Memorandums of Understanding, Inter-Agency Agreements, Delegations of Authority, Performance-Based Agreements and Partnership Agreements.
1.2. MOAs may be negotiated at the Enterprise, Operational, Center, or CMO level.
2. Manage Enterprise-Level Agreements.
2.1. The DCMA Director may enter into Enterprise-level agreements with Department of Defense (DoD) customers to optimize contract management across the acquisition life cycle. Agreements document key partnering efforts necessary to enhance the collective ability of the parties to provide best value to the DoD. If involving program-managed acquisitions, these agreements typically are overarching in nature, extending to multiple programs. The Portfolio Management and Integration Directorate (DCMA-PI)shall manage Enterprise-level agreement development, coordination, publication, and maintenance processes.
2.1.1. Annually, DCMA-PI publishes customer engagement guidance to support developing Customer Engagement Plans (Customer Engagement Instruction). DCMA-PI shall forecast the initial development and periodic updates of Enterprise-level, external customer agreements in their Customer Engagement Plans. DCMA may partner with:
184.108.40.206. Service Acquisition Executives.
220.127.116.11. Systems Commands (SYSCOMs) or Defense Agencies with unique requirements and/or issues of critical interest to the DoD; such as, Naval Sea Systems Command for Naval Special Emphasis Program or the Missile Defense Agency.
18.104.22.168. Army Materiel Command (AMC) HQ, Naval Supply Systems Command (NAVSUP), Air Force Material Command (AFMC) HQ, and Defense Logistics Agency (DLA) HQ on Enterprise-level sustainment agreements.
2.2. The DCMA Director may also authorize DCMA support to DoD customers outside the usual DoD customer base, support to DoD customers within our customer base where the support is of a kind not normally within DCMA’s mission, and to non-DoD customers. The Workload Acceptance Instruction delineates responsibilities for negotiating and managing MOAs for these customers. Any decision to accept work from new customers shall be documented in MOAs, and shall be negotiated at the Enterprise-level.
3. Manage Operational-Level Agreements.
3.1. The Chief Operations Officer (COO); Commander, DCMA International (DCMAI); and Executive Director, DCMA Special Programs Division (DCMAS); or their designees may enter into Operational-level agreements to address specific performance issues of mutual concern with the objective of maximizing weapon system readiness and/or platform performance. Directorates such as Special Programs and International that centrally manage their own resources may negotiate agreements with external customers and execute those agreements (including Enterprise-level) regarding specific technical, functional, or unique requirements. The Executive Director Special Programs will establish MOAs with external customers working Special Access Programs or programs requiring Sensitive Compartmented Information. The COO may enter into an agreement with:
3.1.1. Individual buying activities, including AMC Major Subordinate Commands; Navy SYSCOMs and Inventory Control Points; AFMC Air Logistics Centers and Global Logistics Support Center; and DLA Lead Centers for Demand and Supply Chain Management (i.e., Aviation, Land and Maritime, Energy). These agreements may target problem areas and outline a path forward to analyze available data, identify and prioritize systemic issues affecting readiness/performance, create corrective action strategies, and monitor to ensure continuous improvement.
3.1.2. Program Executive Offices and selected Major Defense Acquisition Programs. If involving program-managed acquisitions, these agreements typically are overarching in nature, extending to multiple programs.
3.2. Operations Directorate (DCMAO), DCMAI, and DCMAS shall manage the Operational-level agreement development, coordination, publication, and maintenance processes. Multiple agreements with the same buying activity are discouraged. The COO; Commander, DCMAI; and Executive Director, DCMAS or their designees shall authorize initial contact between DCMA working/staff level personnel, buying activities, and other activities, as needed, with respect to possible agreements. 3.3. Operational-level agreements shall not conflict with Enterprise-level agreements. Where appropriate, projects in the Operational-level agreements may be referenced in an Enterprise-level agreement.
4. Manage Contract Management Office (CMO) and Center-Level Agreements.
4.1. The Major Program Support Instruction delineates CMO responsibilities for negotiating and managing MOAs for major programs. The Major Program Support Instruction specifies appropriate MOA requirements. Additionally, this instruction identifies when a Letter of Commitment may be appropriate (in lieu of an MOA).
4.2. CMOs shall not enter into MOAs/other written agreements with customers except as mandated for major programs above in paragraph 4.1. above.
4.3. DCMA Centers that centrally manage their own resources may negotiate agreements with external customers and execute those agreements (including Enterprise-level) regarding specific technical, functional, or unique requirements. Centers that are assigned to DCMAO shall obtain approval from the COO prior to initiating an MOA.
5. Develop the Agreement.
5.1. Assign a DCMA proponent to manage the development, coordination, publication and maintenance of each Agreement.
Type of Agreement
Enterprise-Level DoD Customer
DCMA-PI Service Portfolio Director or Center Director
Agency Director or designee
Enterprise-Level Workload Acceptance
DCMA-PI Performance Advocate or Center Director
Agency Director or designee
DCMAO Sector Lead,
International CMO Director,
DCMAS CMO Director, or
Customer Liaison Representative (CLR)
COO; Commander, DCMAI; Executive Director, DCMAS; or their designee
CMO-Level Major Program Support
Prime CMO Commander/Director
5.2. In accordance with applicable Program Security Requirements, DCMA proponents shall inform the appropriate CLR, Operations Sector and/or Center Lead prior to contacting a customer about developing an Enterprise-level or Operational-level Agreement. Proponents may invite them to participate as members of the Agreement development team, provide periodic updates on the status of negotiations, and inform them of any problematic issues.CMOs are exempt from this notification requirement for major program MOAs. 5.3. If both parties elect to include performance measures in an Enterprise-level or Operational-level Agreement, DCMA proponentsshall attempt to negotiate the inclusion of pre-existing DCMA Council Approved Performance Indicatorsrather than unique measures.
5.4. Proponents shall informally coordinate draft MOAs with applicable DCMA and customer (as needed) functional communities prior to finalizing document(s).
5.5. Agreements for signature by the applicable director shallfollow procedures prescribed in the Correspondence Control Manual. Packages must reflect the coordination of the Component Head (or officially designated Authorized Signer). In accordance with applicable Program Security requirements, Correspondence Control shall maintain either the original signed MOA, or a copy for archiving purposes. 5.5.1. All MOAs involving the commitment of DCMA resources or financial management shall be formally staffed through HQ Financial Business Operations Directorate (DCMA-FB) or the applicable Directorate Finance and Budget Office.Staffing actions shall include a detailed description of the impact of the MOA on Enterprise resources and financial management.
6.1. Agreements shall be tailored to meet the customers’ needs. Generally, the Agreement contains: Purpose, Scope, Issues/Improvement Opportunities, Measures, Roles and Responsibilities, Effective Dates, Duration, Termination Parameters, and Signatories.
6.2. Major program agreements shall contain terms and data elements identified in the Major Program Support Instruction.
6.3. Center-level MOAs may follow local procedures for content.
7. Execute the Agreement. 7.1. When an Enterprise-level or Operational-level agreement is signed, DCMA-PI or DCMAO shall alert DCMA organizational entities via an Information Memorandum.Policy owners will issue implementing guidance and/or taskings, as required. DCMA personnel who support the customer shall review and comply with terms of the agreement.
7.2. When a Center-level or CMO-level MOA is signed, the proponent shall alert applicable personnel. DCMA personnel who support the agreement shall review and comply with terms of the agreement.
7.3. For Enterprise-level or Operational-level MOAs, parties shall convene management meetings to review performance and to address improvement opportunities as specified in the agreement. In accordance with applicable Program Security requirements, the DCMA proponent shall document meeting minutes in the eTools Customer Engagement Recording (CER) application.
7.4. Proponents shall review MOAs for currency on an annual basis, or as specified in the agreement. Parties may make administrative and/or minor changes without formal signature by the signatories in section 5.1. Approval of the administrative/minor changes should be documented via email concurrence or via initialed pen and ink changes. Parties shall renegotiate the agreement for significant revisions and obtain formal signature by the signatories in section 5.1.
8. Post Signed Agreements.
8.1. Proponents shall post signed Enterprise-level and Operational-level agreements to the MOA portal page. Signed Special Programs MOAs are posted and/or stored in accordance with Program Security requirements. DCMA-PI Performance Advocates will publish unclassified agreements to the MOA Libraryrepository on the DCMA Website.
8.2. CMOs shall post signed major program MOAs as directed by the Major Program Support Instruction. Special Programs CMO’s shall post and/or store signed MOAs in accordance with Program Security requirements.
8.3. Proponents may post Center-level MOAs as prescribed in their local procedures.
9. Terminate the Agreement.
9.1. MOAs shall stipulate parameters for termination of the agreement. The MOA may stipulate language such as:
9.1.1. “This MOA can be terminated unilaterally by either party with 30 days notice to the other party.”
9.1.2. "This MOA will remain in effect for a minimum of 36 months, at which time it may be terminated unilaterally by either party with 120 days notice to the other party." This language shall be used when DCMA must commit significant resources, to include hiring personnel, to support the terms of the MOA. Such language ensures DCMA will have expected funding when the Agency takes on a hiring action for reimbursable customers.
9.1.3. "The MOA will take effect on the date signed by the principals and will remain in effect until rescinded by one or both parties.”
9.2. When the MOA is terminated, the DCMA proponent shall: 9.2.1. Notify applicable personnel that the MOA was rescinded.
9.2.2. Except for Special Programs, move the MOA document into an archive folder on the portal. Special Programs will archive terminated MOAs in accordance with Program Security requirements.
• Certify Acquisition workforce personnel in accordance with the Defense Acquisition Workforce Improvement Act (DAWIA) for the position held.