FAR 17.703—Policy.
Plain-English Summary
FAR 17.703 sets the policy for DoD use of nondefense agencies to conduct acquisitions on DoD’s behalf when the value is above the simplified acquisition threshold. It explains when a DoD acquisition official may request another agency to buy supplies or services, what it means for a nondefense agency to be considered compliant with applicable procurement requirements, and how annual certifications of compliance must be submitted. The section also requires DoD to give the servicing agency any DoD-unique terms, conditions, statutes, regulations, directives, and other requirements that must be included in the order or contract, and it assigns responsibility to the nondefense agency contracting officer to ensure the support provided meets the compliance standard. It further creates a waiver process that allows DoD to use a nondefense agency even when the normal limitation would otherwise apply, but only when the Under Secretary of Defense for Acquisition and Sustainment makes a written determination that the arrangement is in DoD’s interest and identifies the acquisition categories covered. In practice, this section is about interagency acquisition governance: it protects DoD’s interests, ensures the servicing agency can lawfully and properly execute the procurement, and creates a paper trail for compliance, accountability, and oversight.
Key Rules
DoD use requires certification
A DoD acquisition official may ask a nondefense agency to conduct an acquisition above the simplified acquisition threshold only if the head of that agency has certified compliance with applicable procurement requirements for the fiscal year. Without that certification, the request is not authorized unless a waiver applies.
Compliance means adequate controls
A nondefense agency is compliant only if its procurement policies, procedures, internal controls, and how they are administered are adequate to ensure compliance with the FAR and other laws and regulations applicable to Federal procurements, as well as DoD-specific requirements that apply when the agency buys for DoD.
DoD-specific requirements must be passed through
The DoD acquisition official must provide the servicing agency contracting officer with any DoD-unique terms, conditions, statutes, regulations, directives, and other applicable requirements for inclusion in the order or contract. If there are no DoD-unique requirements beyond the FAR, DoD must say so in writing.
Annual certification submission deadline
Nondefense agency certifications of compliance must be submitted within 30 days after the start of each fiscal year to the Principal Director, Defense Pricing and Contracting at the specified DoD address. This is an annual administrative requirement tied to DoD’s ability to use the agency.
Nondefense agency contracting officer must ensure compliance
The servicing nondefense agency contracting officer is responsible for ensuring the support provided in response to DoD’s request complies with the compliance standard in paragraph (b). This means the servicing CO cannot treat the request as a routine interagency order without checking the applicable DoD and FAR requirements.
Waiver can remove the limitation
The restriction in paragraph (a) does not apply for a fiscal year if the Under Secretary of Defense for Acquisition and Sustainment issues a written determination that using the nondefense agency is necessary in DoD’s interest. The waiver must identify the acquisition categories to which it applies.
Reference materials are published online
The section points readers to online sources for nondefense agency certifications, waivers, and additional information. This supports transparency and helps agencies verify current policy and documentation.
Responsibilities
DoD Acquisition Official
May request a nondefense agency to conduct an acquisition above the simplified acquisition threshold only when the servicing agency has provided the required annual certification, unless a valid waiver exists. Must provide the servicing contracting officer with all DoD-unique requirements for incorporation into the order or contract, or confirm in writing when no DoD-unique requirements beyond the FAR apply.
Head of the Nondefense Agency
Must certify for each fiscal year that the agency will comply with applicable procurement requirements before the agency may conduct DoD acquisitions above the simplified acquisition threshold, unless the requirement is waived. The certification is the formal basis for DoD’s reliance on the agency.
Nondefense Agency Contracting Officer
Must ensure the support provided for DoD complies with the compliance standard in paragraph (b), including the FAR, other applicable laws and regulations, and DoD-specific requirements supplied by DoD. Must incorporate applicable DoD-unique terms and conditions into the order or contract as required.
Under Secretary of Defense for Acquisition and Sustainment
May issue a written waiver for a fiscal year when it is determined to be in DoD’s interest to acquire supplies and services through a nondefense agency. Must identify the acquisition categories covered by the waiver.
Principal Director, Defense Pricing and Contracting
Receives the annual nondefense agency certifications of compliance within 30 days of the start of each fiscal year and serves as the DoD office of record for these submissions.
Nondefense Agency Procurement Organization
Must maintain procurement policies, procedures, and internal controls that are adequate to ensure compliance with the FAR and DoD-related requirements when performing acquisitions on DoD’s behalf.
Practical Implications
DoD cannot casually route large buys through another agency; the servicing agency must have a current compliance certification unless a waiver is in place.
The biggest operational risk is assuming the FAR alone is enough. For DoD buys, the servicing agency must also account for DoD financial management rules, DFARS, class deviations, and PGI requirements when applicable.
Documentation matters. The written confirmation of no DoD-unique requirements, the annual certification, and any waiver are all important audit and file-support items.
Contracting officers on both sides need to coordinate early so DoD-specific clauses and instructions are not missed during order or contract formation.
A common pitfall is treating interagency support as a back-office transaction. In reality, the servicing agency CO remains responsible for compliance, and DoD remains responsible for giving clear direction on unique requirements.
Official Regulatory Text
(a) A DoD acquisition official may request a nondefense agency to conduct an acquisition on behalf of DoD in excess of the simplified acquisition threshold only if the head of the nondefense agency conducting the acquisition on DoD's behalf has certified that the agency will comply with applicable procurement requirements for that fiscal year except when waived in accordance with paragraph (e) of this section. (b) A nondefense agency is compliant with applicable procurement requirements if the procurement policies, procedures, and internal controls of the nondefense agency applicable to the procurement of supplies and services on behalf of DoD, and the manner in which they are administered, are adequate to ensure the compliance of the nondefense department or agency with- (1) The Federal Acquisition Regulation and other laws and regulations that apply to procurements of supplies and services by Federal agencies; and (2) Laws and regulations that apply to procurements of supplies and services made by DoD through other Federal agencies, including DoD financial management regulations, the Defense Federal Acquisition Regulation Supplement (DFARS), DoD class deviations, and the DFARS Procedures, Guidance, and Information (PGI). (The DFARS, DoD class deviations, and PGI are accessible at: http://www.acq.osd.mil/dpap/dars ). (c) Within 30 days of the beginning of each fiscal year, submit nondefense agency certifications of compliance to Principal Director, Defense Pricing and Contracting at: Department of Defense Office of the Under Secretary of Defense (Acquisition and Sustainment) Defense Pricing and Contracting Contract Policy Room 3B938 3060 Defense Pentagon, Washington D.C. 20301-3060. (d) The DoD acquisition official, as defined at 17.701 , shall provide to the servicing nondefense agency contracting officer any DoD-unique terms, conditions, other related statutes, regulations, directives, and other applicable requirements for incorporation into the order or contract. In the event there are no DoD-unique requirements beyond the FAR, the DoD acquisition official shall so inform the servicing nondefense agency contracting officer in writing. Nondefense agency contracting officers are responsible for ensuring support provided in response to DoD’s request complies with paragraph (b) of this section. (e) Waiver . The limitation in paragraph (a) of this section shall not apply to the acquisition of supplies and services on behalf of DoD by a nondefense agency during any fiscal year for which the Under Secretary of Defense for Acquisition and Sustainment has determined in writing that it is necessary in the interest of DoD to acquire supplies and services through the nondefense agency during the fiscal year. The written determination shall identify the acquisition categories to which the waiver applies. (f) Nondefense agency certifications, waivers, and additional information are available at https://www.acq.osd.mil/asda/dpc/cp/policy/interagency-acquisition.html .