BY ORDER OF THE AIR FORCE INSTRUCTION 65 …

1 BY ORDER OF THE SECRETARY OF THE AIR FORCE AIR FORCE INSTRUCTION 65-118 4 OCTOBER 2016 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 RELEASABILITY: There are no releasability restrictions on this publication. OPR: SAF/FMFC (AFAFO) Supersedes: AFI65-116, 29 September 2008 Certified by: SAF/FMF (Mr. Thomas Murphy) Pages: 58 This INSTRUCTION implements, Air FORCE Policy Directives (AFPD) 65-1, Management of Financial Services; AFPD 65-6, Budget; and AFPD 64-1, The Contracting System. It provides Air FORCE guidance and procedures for purchases using DD Form 448, Military Interdepartmental Purchase Requests (MIPRs) and DD Form 448-2, Acceptance of MIPR, and also applies to Air FORCE Reserve Command (AFRC) and Air National Guard (ANG) units.

2 The authorities to waive requirements in this publication are identified with a Tier (T-0, T-1, T-2, and T-3) number following the compliance statement. See AFI 33-360, Publications and Forms Management, Table for a description of the authorities associated with the Tier numbers. Submit requests for waivers through the chain of command to the appropriate Tier waiver approval authority, or alternately, to the Publication OPR for non-tiered compliance items. Ensure that all records created as a result of processes prescribed in this publication are maintained in accordance with AFMAN 33-363, Management of Records, and disposed of in accordance with the Air FORCE Records Disposition Schedule (RDS) in the Air FORCE Records Information Management System (AFRIMS). SUMMARY OF CHANGES This revision incorporates the following changes. The office of primary responsibility (OPR) changed from SAF/FMP (AFAFO) to SAF/FMFC (AFAFO).

3 The authority to waiver requirements is added throughout the publication. Made the following additions to: Appendix 1, Abbreviations and Acronyms; Appendix 6, optional footnote for MIPR amendments; and 2 AFI65-118 4 OCTOBER 2016 allowed for acceptance of DD 448 by intra-agencies on other than a DD 448-2 throughout the publication. Chapter 1 AIR FORCE PURCHASES USING MILITARY INTERDEPARTMENTAL PURCHASE REQUESTS POLICY 5 5 Air FORCE MIPR Policy.. 5 Chapter 2 GENERAL GUIDANCE 8 Purchase Options.. 8 MIPR Categories.. 9 MIPR Review.. 9 MIPR Acceptance.. 9 Document Retention.. 9 Training.. 9 Trading Partner Information.. 10 Chapter 3 SERVICE CONTRACT REQUIREMENTS 11 Planning and Research.. 11 Performance-Based Acquisition.. 11 Services Designated Official Approval.. 11 Quality Assurance.. 11 Severable Services.. 11 Non-Severable Services.

4 12 Chapter 4 AUTHORITIES 13 Overview.. 13 Statutory Authority.. 13 Economy Act.. 14 Chapter 5 ROLES AND RESPONSIBILITIES 15 Program Manager (PM).. 15 Unit or Organization Resource Advisor/Manager (RA/RM).. 17 Financial Management Analysis (FMA).. 19 AFI65-118 4 OCTOBER 2016 3 Defense Finance and Accounting Service (DFAS).. 20 Supporting Air FORCE Contracting Office.. 20 MIPR Initiator.. 21 Chapter 6 ADVANCE PAYMENT/ADVANCE BILLING AND ACCOUNTING PROCEDURES 22 Advance Payment Process.. 22 Partial Advance of MIPR.. 22 Full Advance of MIPR.. 23 Recording of Contract Award for Direct Cite MIPR.. 23 Recording of Obligation for Reimbursable MIPRs.. 24 Monthly Validation Process.. 24 Stages of Accounting for Requesting Activity.. 24 Chapter 7 AIR FORCE PROCEDURES WHEN RECEIVING MIPRS 25 Performing Air FORCE Activity.. 25 Performing agency FMA responsibilities.

5 25 Accepting MIPRs.. 25 Accepting Reimbursable MIPRs, CAT I.. 25 Accepting Direct Cite MIPRs, CAT II.. 25 Year End Procedures.. 26 Stages of Accounting for Performing Activity.. 26 4 AFI65-118 4 OCTOBER 2016 Attachment 1 GLOSSARY OF REFERENCES AND SUPPORTING INFORMATION 27 Attachment 2 PROCESS FLOWCHART FOR REQUESTING ACTIVITY 36 Attachment 3 CHECKLIST FOR DD FORM 448 AND REQUIREMENTS PACKAGE REVIEW 42 Attachment 4 MIPR FOOTNOTES 45 Attachment 5 BUSINESS RULES FOR USE WITH FOOTNOTES 2A AND 2B 47 Attachment 6 INTERAGENCY AGREEMENT FOR USE WITH FOOTNOTE 2A 49 Attachment 7 INTERAGENCY ACQUISITION DETERMINATIONS AND FINDINGS 50 Attachment 8 EXAMPLE ECONOMY ACT DETERMINATIONS AND FINDINGS FOR USE WITH FOOTNOTE 9 52 Attachment 9 DD FORM 448 AND INTERAGENCY AGREEMENT CONTINUATION PAGE 53 Attachment 10 EXAMPLE DD FORM 448-2 55 Attachment 11 INITIAL REQUEST FOR DD FORM 448-2 FOR DEOBLIGATION OF REMAINING FUNDS 56 Attachment 12 EXAMPLE--FINAL REQUEST FOR DD FORM 448-2 FOR DEOBLIGATION OF REMAINING FUNDS 57 Attachment 13 EXAMPLE--DEOBLIGATION MEMORANDUM 58

6 AFI65-118 4 OCTOBER 2016 5 Chapter 1 AIR FORCE PURCHASES USING MILITARY INTERDEPARTMENTAL PURCHASE REQUESTS POLICY Purpose. This INSTRUCTION provides Air FORCE guidance and procedures for purchases using MIPRs, DD Form 448 and Acceptance of MIPR, DD Form 448-2. This INSTRUCTION supersedes all Air FORCE MIPR guidance and applies to all Air FORCE organizations including Air FORCE Reserve Command and Air National Guard. Air FORCE MIPR Policy. 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. Acquisition planning includes developing the overall strategy for managing the acquisition. Therefore, before requesting the assistance of a servicing agency to perform acquisition activities, the Air FORCE requesting agency shall determine that an assisted acquisition is needed ( , expertise or acquisition resources are not readily available within the agency) and a servicing agency can provide the assistance required.

7 (T-1). The decision to use an interagency agreement is supported by a best interest determination. Refer to Attachment 7, Interagency Acquisition Determination and Findings. MIPRs are supported by a written and signed agreement between the requesting and the performing agencies. The MIPR and Acceptance attached in FMSuite Open Document Analysis (ODA) Module and attached to the MIPR when processed in DEAMS until Invoice Processing Platform (IPP) or G-Invoicing is fully deployed. MIPRs may not be used to violate provisions of law or to circumvent conditions and limitations imposed on the use of funds. For example, MIPRs may not be used to extend the period of availability of the cited funds. MIPRs cannot be written based on another MIPR funding ( MIPR-on-MIPR ). A MIPR is a request for a service or item. 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.

8 The key is having the requesting organization directly linked to the providing agency. 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 a DD 448-2. 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. 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 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. 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.

9 (T-0). 6 AFI65-118 4 OCTOBER 2016 The requiring activity PM must include DoD-unique clauses and comply with all DoD regulations, directives, and other OMB and public law requirements for all interagency (non-DoD) purchase agreements. (T-0). 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 . Funds certifiers will not certify nor will contracting officials perform reviews on manually created MIPRs. (T-0). Manual preparations of MIPRs are only authorized when the use of ABSS or DEAMS are unavailable to produce a compliant requirement or disconnected environment An Air FORCE financial analyst must review and certify funds for every MIPR before the requiring activity program manager releases it to a DoD or non-DoD agency for acceptance.

10 (T-1). All MIPRs leaving the installation will be reviewed by the local contracting office. (T-1). For any MIPR that will result in a contracting action, including unfunded planning MIPRs, the supporting Air FORCE contracting office must review the MIPR and the attached requirements package before the requiring activity program or program manager releases it to a DOD or non-DoD agency for acceptance. (T-1). Specifically, warranted contracting officers are required to 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). Contracting specialists are authorized to review MIPR packages below that threshold. For those MIPRs that do not result in a new contracting action or additional contracting actions, review by the contracting office is optional.