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Attachment 15

DAO 208-10

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DAO 208-10

Effective Date: January 1, 1995



.01 This Order prescribes the policy and responsibilities for management of services contracts, including advisory and assistance services contracts, undertaken by individual operating units and Secretarial Officers of the Department of Commerce (the "Department").

.02 The objectives of the Order are to ensure that:

  1. adequate procedures are in place to monitor our contracted services, to evaluate their cost-effectiveness, to hold contractors accountable for results and to ensure the Department gets what it is paying for;
  2. services being performed by contractors are not inherently governmental;
  3. the services are essential to the mission of the Department; and
  4. appropriate procurement policies (including emphasis on adequate competition) are observed.

.03 This Order transfers the functions and responsibilities related to management of advisory and assistance services from the Director for Federal Assistance and Management Support to the Director for Procurement and Administrative Services.


.01 In a March 15, 1993 letter to agency heads, the Director, Office of Management and Budget (OMB) addressed concerns that were shared with the General Accounting Office, the Inspectors General and certain members of Congress regarding the Government's extensive, and growing, use of contracted services. The Director asked that agencies ensure, before contracts are let, that certain issues identified in paragraph 1.02 above be addressed. This Order establishes procedures to accomplish that purpose.

.02 The Office of Federal Procurement Policy (OFPP) issued Policy Letter No. 93-1, "Management Oversight of Service Contracting," on May 18, 1994. The Policy Letter, establishes Governmentwide policy, assigns responsibilities, and provides guidance for Executive Departments and agencies in managing the acquisition and use of services. It identifies five areas of potential vulnerability which require increased management attention: inherently governmental functions, cost effectiveness, Government control, conflicts of interest, and competition. This Order also implements the requirements of the Policy Letter.


.01 Services means the time and effort of individuals or organizations in support of a Government objective. This includes those contracts that would be coded using one or more of the Codes contained in Section I - Part A and/or Section I - Part B of the Federal Procurement Data System, Product and Service Codes.

.02 Advisory and assistance services means those contracts that would be coded using one or more of the Service Codes contained in Appendix A to this Order.

.03 Professional support services means those contracts that would be coded using one or more of the Service Codes contained in Appendix B to this Order.

.04 Performance-based contracting means structuring all aspects of an acquisition around the purpose of the work to be performed as opposed to either the manner by which the work is to be performed or broad and imprecise statements of work.


All contracted services, regardless of dollar amount or type of service, shall be awarded and managed to ensure the objectives of paragraph 1.02 of this Order are met. The following categories of contracted services are subject to the special policies and procedures prescribed by this DAO:

  1. contracts (over $100,000 total estimated amount for all periods of performance, including options) of any type for advisory and assistance services;
  2. contracts (over $100,000 total estimated amount for all periods of performance, including options) of any type for professional support services;
  3. cost reimbursement type contracts (over $100,000 total estimated amount for all periods of performance, including options) for all other services; or
  4. any modifications or task orders to the above contractual actions which increase the total estimated dollar amount of the action.


.01 Heads of operating units (HOUs) are responsible for ensuring that all contracted services of their respective organizations are consistent with the objectives of paragraph 1.02 of this Order. For actions in the categories identified in Section 4. of this Order, HOUs will establish internal review procedures or use other management techniques appropriate to the dollar value or criticality of the contracts to ensure the objectives are met.

.02 Actions in the categories identified in paragraph 4.01 which exceed a total estimated amount for all periods of performance (including options) of $5,000,000, will be subject to a two-tier review and clearance procedure. All actions will first be reviewed by the respective head of the operating unit or Secretarial Officer. The review and clearance authority may be delegated, but not to a level lower than a Deputy Under Secretary or equivalent. The actions will be subject to further review by a Department Contracted Services Review Board (the "Board").

.03 Actions originally estimated at total amounts lower than the threshold specified in paragraph 5.02 above may not be increased to exceed the threshold without prior review and clearance of the Board.

.04 Each action subject to these procedures will be reviewed, prior to award, for the following elements:

  1. the requirement represents a valid mission need of the Department;
  2. the services are not inherently governmental and therefore are appropriate for contracting outside the Government;
  3. the acquisition strategy is sound and the procurement will be conducted in accordance with applicable procurement policies, including emphasis on adequate competition, use of performance-based contracting methods, and mitigation of any potential conflicts of interest;
  4. the statement of work is sufficiently definitive, specifying a contract deliverable or requiring progress reporting on contractor performance;
  5. there are adequate procedures in place and sufficient trained and experienced officials available to assure that the contractor's performance under the contract results in measurable benefits to the Government and the public; and
  6. the contract will not create a continuous and dependent relationship with the same contractor.

.05 A request subject to these procedures must receive written clearance at the appropriate level before it may be submitted to the servicing procurement office for processing. However, close coordination with the procurement office in preparing the package to be submitted for review is encouraged.

.06 Actions which have been reviewed under these procedures and which result in contracts with options, need not be resubmitted for review prior to exercise of an option, so long as the total estimated amount of the contract for all periods of performance does not increase.


.01 The head of the operating unit or Secretarial Officer is responsible for establishing internal procedures to ensure that the objectives of this Order are met, and for establishing procedures for submission of requests to the Board. All such procedures are subject to prior review and approval by the Board, and to the periodic oversight of the Board.

.02 The Chief Financial Officer and Assistant Secretary for Administration or designee will chair the Board. Members will be the General Counsel, the Director for Procurement and Administrative Services, the Director for Information Resources Management, the Director for Federal Assistance and Management Support, the Director for Human Resources Management, the Director for Budget, Planning and Organization, the Director for Financial Management, and the Director for Civil Rights. The Director for Procurement and Administrative Services will serve as the Executive Secretary. Each member may identify a designee, as appropriate.

.03 Requests submitted to the Board shall be signed by the respective head of the operating unit or Secretarial Officer.

.04 Actions subject to these procedures shall be supported by the following documentation. Requests submitted for review at the Department level shall contain the following documentation, at a minimum (the checklist in Exhibit 1 to this Order should be used for preparing and submitting requests for review at the Department level):

  1. a fully prepared and complete procurement request package, including the statement of work and independent Government estimate (IGE), and if applicable, a Justification For Other Than Full and Open Competition;
  2. a statement of need, describing the agency mission to be furthered by the proposed contract and the criteria to be used to evaluate whether the contract succeeded;
  3. a description of the acquisition strategy, including a formal Acquisition Plan (when required pursuant to the Commerce Acquisition Manual), and a description of steps taken to avoid or mitigate potential conflicts of interest (when applicable);
  4. a statement demonstrating that the services are necessary and appropriate, and that they do not represent inherently governmental functions;
  5. a description of the plan to manage and oversee contractor performance, including the resources and expertise that will be used, the approach to monitoring progress, cost monitoring and payment procedures, and review, inspection and acceptance of the services; and
  6. if the services closely support the performance of inherently governmental functions, a description of the increased scrutiny and enhanced degree of management oversight will be provided (see OFPP Policy Letter 92-1, "Inherently Governmental Functions," subsections 6(a) and 7(f) and Appendix B).

.05 OFPP Policy Letter No. 93-1 identifies a series of questions to help agencies analyze and review requirements for service contracts with the objective of eliminating the potential for abuse. The questions are included in Appendix C to this Order. They should be used in analyzing requirements subject to review under this Order at both the operating unit and Department level.

.06 The checklist in Exhibit 1 to this Order may also be used for review of actions at the operating unit level.


.01 Contract Management Reports. Reports on contractor performance and contract management must be made on each action over $100,000 subject to these procedures. The reports shall be signed by the head of the operating unit or the Secretarial Officer or designee and submitted to the Board. Reports shall be submitted semi-annually after the start of contract performance and at the end of the overall contract period of performance. If the contract period of performance is less than one year, a single report shall be submitted at the end of contract performance. Reports shall address the following:

  1. names, positions and duties of those assigned to perform administration of the contract;
  2. contractor performance to date compared to schedule (including scheduled deliveries) and estimated costs;
  3. description of how contract costs are being monitored;
  4. number of contractor FTE applied to the contract effort compared to that negotiated;
  5. description of any inherently governmental functions being supported by the contractor and the special oversight being applied;
  6. number of task orders issued, if the contract is a task ordering type;
  7. summary of any external or internal oversight reviews or assessments made related to the contract, including actions taken to implement recommendations and steps taken to resolve any problems; and
  8. description of any outstanding disagreements, claims, etc., between the Government and the contractor related to the contract.

.02 Summary Reports. At the end of each full fiscal year of activity, each operating unit and Secretarial Officer shall report on its activities under these procedures during that fiscal year. The report shall be submitted to the Chief Financial Officer and Assistant Secretary for Administration and shall contain, at a minimum, the numbers and dollars of actions:

  1. processed under these procedures;

  2. awarded;
  3. cancelled or substantially modified;
  4. forwarded to the Board;
  5. cleared by the Board;
  6. returned or withdrawn after submission to the Board;
  7. requiring substantial modification after submission to the Board; and
  8. statistics on the extent of competition achieved.

.03 The effectiveness of each operating unit and Secretarial Officer in managing its contracted services will be assessed based on the results demonstrated in the contract management and summary reports, and on any other reports or information regarding these contracts which come to the attention of the Board. The thresholds for delegated authority may be adjusted based on the assessments resulting from these reports.

.04 In addition to the reporting required, Department oversight organizations may perform oversight reviews of any of the actions subject to these procedures. Information presented in reports resulting from oversight reviews will be used in assessing the effectiveness of each operating unit in managing its contracted services.


This Order supersedes Department Administrative Order 216-13, dated March 1, 1985, as amended.



Chief Financial Officer and Assistant
Secretary for Administration
Office of Primary Interest

Office of Procurement and Administrative Services

Index Changes


Advisory & Assistance Services 208-10

Contracted Services, Management of 208-10

Management of Contracted Services 208-10

Professional Support Services 208-10


Advisory & Assistance Services, Approval of 216-13

Approval of Advisory & Assistance Services 216-13

Services, Approval of Advisory & Assistance 216-13



  • Management and Support Services for R&D

    Description FPDS Codes
    Agriculture Insect and Disease Control AA16
    Agriculture Marketing AA26
    Agriculture Production AA36
    Aquaculture and Hydroponics AA46
    Other Agriculture AA96
    Crime Prevention and Control AB16
    Fire Prevention and Control AB26
    Rural Community Services and Development AB36
    Urban Community Services and Development AB46
    Other Community Services and Development AB96
    Defense Aircraft AC16
    Defense Missile and Space Systems AC26
    Defense Ships AC36
    Defense Tank - Automotive AC46
    Weapons AC56
    Defense Electronics and Communication Equipment AC66
    Miscellaneous Defense Hard Goods AC96
    Ammunition AD16
    Services AD26
    Subsistence AD36
    Textiles, Clothing and Equipage AD46
    Fuels and Lubricants AD56
    Construction AD66
    Other Defense AD96
    Employment Growth and Productivity AE16
    Product or Service Improvement AE26
    Manufacturing Technology AE36
    Other Economic Growth and Productivity AE96
    Education AF16
    Coal AG16
    Gas AG26
    Geothermal AG36
    Wind Energy AG46
    Nuclear AG56
    Petroleum AG66
    Solar/photovoltaic AG76
    Conservation of Energy AG86
    Other Energy AG96
    Pollution Control Abatement AG16
    Air Pollution AG26
    Water Pollution AG36
    Noise Pollution AG46
    Other Environmental Protection AG96
    Physical Sciences AJ16
    Mathematical and Computer Sciences AJ26
    Environmental Sciences AJ36
    Engineering AJ46
    Life Sciences AJ56
    Psychological Sciences AJ66
    Social Sciences AJ76
    Other Sciences Not Elsewhere Classified AJ96
    Housing AK16
    Employment AL16
    Income Maintenance AL26
    Other Income Security AL96
    International Affairs & Cooperation AM16
    Biomedical AN16
    Drugs Dependency AN26
    Alcohol Dependency AN36
    Health Services AN46
    Mental Health AN56
    Rehabilitative Engineering AN66
    Specialized Medical Services AN76
    Aids Research AN86
    Other Medical AN96
    Land AP26
    Mineral AP36
    Recreation AP46
    Marine and Oceanographic AP56
    Marine Fisheries AP66
    Atmospheric AP76
    Other Natural Resources AP96
    Geriatric (Other than Medical) AQ16
    Other Social Services AQ96
    Aeronautics and Space Technology AR16
    Space Science and Applications AR26
    Space Transportation Systems AR36
    Space Tracking and Data Acquisition AR46
    Space Station AR66
    Commercial Programs AR76
    Other Space AR96
    Air Transportation AS16
    Surface Motor Vehicles AS26
    Rail Transportation AS36
    Marine Transportation AS46
    Other Modal Transportation AS96
    Highways, Roads, and Bridges AT16
    Human Factors Concerning Transportation AT26
    Navigation and Navigational Aids AT36
    Passenger Safety and Security AT46
    Pipeline Safety AT56
    Traffic Management AT66
    Tunnels and Other Subsurface Structures AT76
    Transporting Hazardous Materials AT86
    Other General Transportation AT96
    Subsurface Mining Equipment AV16
    Surface Mining Equipment AV26
    Subsurface Mining Methods AV36
    Surface Mining Methods AV46
    Mining Reclamation Methods AV56
    Mining Safety AV66
    Metallurgical AV76
    Other Mining Activities AV96
    Other Research and Development AZ16

  • Special Studies and Analyses

    Description FPDS Code
    Air Quality Analyses B502
    Archeological/paleontological Studies B503
    Chemical/biological Studies and Analyses B504
    Cost Benefit Analyses B505
    Data Analyses (Other than Scientific) B506
    Economic Studies B507
    Endangered Species Studies - Plant and Animal B509
    Environmental Studies and Assessments B510
    Feasibility Studies (Non-construction) B513
    Animal and Fisheries Studies B516
    Geological Studies B517
    Geophysical Studies B518
    Geotechnical Studies B519
    Grazing/range Studies B520
    Historical Studies B521
    Legal Studies B522
    Mathematical/statistical Analyses B524
    Natural Resource Studies B525
    Oceanological Studies B526
    Recreation Studies B527
    Regulatory Studies B528
    Scientific Data Studies B529
    Seismological Studies B530
    Soils Studies B532
    Water Quality Studies B533
    Wildlife Studies B534
    Medical and Health Studies B537
    Intelligence Studies B538
    Aeronautic/space Studies B539
    Building Technology Studies B540
    Defense Studies B541
    Educational Studies and Analyses B542
    Energy Studies B543
    Technology Studies B544
    Housing and Community Development Studies B545
    Security Studies (Physical and Personal) B546
    Accounting/financial Management Studies B547
    Trade Issues Studies B548
    Foreign Policy/national Security Policy Studies B549
    Organization/administrative/personnel Studies B550
    Mobilization/preparedness Studies B551
    Manpower Studies B552
    Communications Studies B553
    Acquisition Policy/procedures Studies B554
    Elderly/handicapped Studies B555
    Other Special Studies and Analyses B599

  • Management and Professional Services

    Description FPDS Codes
    Policy Review/development Services R406
    Program Evaluation Services R407
    Program Management/support Services R408
    Program Review/development Services R409
    Systems Engineering Services R414
    Engineering And Technical Services R425
    Personal Services R497
    Other Professional Services R499
    Advertising Services R701
    Data Collection Services R702
    Accounting Services R703
    Auditing Services R704
    Public Relations Services R708
    Financial Services R710
    Other Management Support Services R799

  • Training

    Description FPDS Codes
    Lectures for Training U001
    Personnel Testing U002
    Scientific and Management Education U004
    Vocational/technical U006
    Educational Services U009
    Other Educational and Training Services U099


Source: U.S. Census Bureau
Acquisition Division

Last Revised: May 17, 2013