Use of Non-Economy Act Orders

1. THIS MARADMIN HAS BEEN COORDINATED WITH LB AND CL.
2. RECENTLY, THERE HAS BEEN CONSIDERABLE HIGH LEVEL ATTENTION CONCERNING
PURCHASES MADE BY DEPARTMENT OF DEFENSE (DOD) ACTIVITIES THROUGH THE USE
OF NON-ECONOMY ACT ORDERS, SPECIFICALLY, THOSE PLACED WITH ACQUISITION
SERVICES FUNDS AND FRANCHISE FUNDS (REFERENCES (A) THROUGH (F)). THESE
ACQUISITION SERVICES AND FRANCHISE FUNDS ARE AUTHORIZED BY CONGRESS AND
ARE USED TO FACILITATE CONTRACTING EFFORTS. HOWEVER, THESE ACQUISITION
SERVICES AND FRANCHISE FUNDS CHARGE FEES FOR THEIR SERVICES WHICH HAS
RESULTED IN THE EXPENDITURE OF MILLIONS OF DOLLARS IN UNNECESSARY AND
WASTEFUL SPENDING THAT COULD BE AVOIDED BY USING USMC RESOURCES. IN
ADDITION, THE DOD INSPECTOR GENERAL AUDITS HAVE FOUND THAT BY USING THE
ACQUISITION SERVICES AND FRANCHISE FUNDS, DOD CUSTOMERS HAVE BANKED
EXPIRED FUNDING FOR FUTURE USE. IT IS ILLEGAL TO BANK EXPIRED
APPROPRIATIONS FOR USE AT A LATER TIME.
3. THE ACCOUNTING BRANCH (CODE RFA), FISCAL DIVISION, PROGRAMS AND
RESOURCES DEPARTMENT, HQMC ISSUED GUIDANCE THAT PROVIDED PROCESSES AND
PROCEDURES THAT MUST BE ACCOMPLISHED PRIOR TO A COMMAND AUTHORIZING A
REIMBURSABLE ORDER FOR WORK OR SERVICES TO ANOTHER DOD COMPONENT OR
FEDERAL AGENCY (REFERENCE (E)). ADDITIONALLY, RFA PROVIDED FORMAL
TRAINING FOR FINANCIAL PROCEDURES RELATED TO REIMBURSABLE AND NON-DOD
CONTRACTS TO ALL MARINE CORPS COMMANDS DURING FY 2006. SUBSEQUENT TO
THIS INFORMATION BEING DISSEMINATED TO MARINE CORPS COMMANDS, THE
UNDER SECRETARY OF DEFENSE (COMPTROLLER) (USD(C)) ISSUED REFERENCE (F)
WHICH PROVIDES REVISED DOD FINANCIAL MANAGEMENT POLICY FOR NON-ECONOMY
ACT ORDERS, AND ALSO REITERATES THE NECESSITY FOR UNUSED FUNDS TO BE
RECOVERED FROM THE ACQUISITION SERVICES AND FRANCHISE FUNDS AND BE
DEOBLIGATED. THIS REVISED GUIDANCE WILL BE INCORPORATED INTO THE NEXT
UPDATE OF THE DOD FINANCIAL MANAGEMENT REGULATIONS (FMR).
ADDITIONALLY, THE USD(C) GUIDANCE WILL BE INCLUDED IN A REVISION TO THE
JOINT LB/P&R POLICY MEMORANDUM (REFERENCE (G)).
4. BASED ON REQUESTS FROM ASSISTANT SECRETARY OF THE NAVY (FINANCIAL
MANAGEMENT AND COMPTROLLER) (ASN(FM&C)) AND USD(C), HQMC IS CURRENTLY
REVIEWING ALL MILITARY INTERDEPARTMENTAL PURCHASE REQUESTS (MIPRS) ISSUED
TO GENERAL SERVICES ADMINISTRATION (GSA), DEPARTMENT OF THE INTERIOR
(DOI), AND TREASURY FRANCHISE FUNDS TO VERIFY IF ANY FUNDING NEEDS TO BE
DEOBLIGATED AND TO ENSURE CORRECT FUNDING WAS USED BY OBLIGATING CURRENT
YEAR FUNDING TO REPLACE FUNDING USED FROM ILLEGALLY BANKED FUNDS. THE
POINTS OF CONTACT FOR THIS REVIEW ARE MRS. CHERYL TAYLOR AND SSGT ROBERT
MAY, WHO CAN BE REACHED AT (703) 614-2595/4500 OR AT
CHERYL.TAYLOR@USMC.MIL OR ROBERT.A.MAY@USMC.MIL, AUDIT AND REVIEW BRANCH
(CODE RFR), FISCAL DIVISION, PROGRAMS AND RESOURCES DEPARTMENT, HQMC.
5. ACTION: UNTIL FURTHER NOTICE, ALL MARINE CORPS ACTIVITIES WILL
IMMEDIATELY STOP ISSUING NON-ECONOMY ACT ORDER MIPRS TO ANY ACQUISITION
SERVICES FUND OR FRANCHISE FUND. IF THERE IS A REQUIREMENT THAT CANNOT
BE SATISFIED THROUGH A MARINE CORPS REGIONAL CONTRACTING OFFICE, A
REQUEST FOR A WAIVER TO THIS DIRECTION MUST BE SUBMITTED TO MR. LARRY
RICE, WHO MAY BE REACHED AT (703) 695-6590, OR AT LAWRENCE.RICE@USMC.MIL,
CONTRACTS DIVISION (CODE LB), INSTALLATIONS AND LOGISTICS DEPARTMENT,
HQMC FOR PROCESSING AND COORDINATION WITH HQMC (RFA). DOCUMENTATION
SUBMITTED WITH THE REQUEST SHALL INCLUDE THE MARINE CORPS ACQUISITION
PROCEDURES SUPPLEMENT (MAPS) 17.5, APPENDIX L, DETERMINATION AND
FINDINGS (D&F), PLUS THE ADDITIONAL DOCUMENTATION REQUIRED BY REFERENCE
(F). THIS APPROVAL PROCESS APPLIES TO ALL SUCH PROPOSED MIPRS WITH AN
ACQUISITION SERVICES FUND OR FRANCHISE FUND REGARDLESS OF DOLLAR VALUE.
APPROVAL MUST BE OBTAINED FROM ADC, I&L (CONTRACTS) PRIOR TO SENDING
THE MIPR.