Air Force Acquisition Circular (AFAC) 2004-1209

09 DEC 2004

FOR ADDITIONAL INFORMATION CONTACT: SAF/AQCP, 1060 Air Force Pentagon, Washington, DC 20330-1060, (703) 588-7058.

Summary of Changes


Subpart - Reason for Change


5304.202 and 5337 - Incorporate SAF/AQC Policy Memo 03-C-14 and delegate SDO authorities.

Note: “*****” below indicates that text is omitted.

AFAC Changes


5304.202 and 5337 - Incorporate SAF/AQC Policy Memo 03-C-14 and delegate SDO authorities.

Supplementary information about the change: None.


5304.202 Agency distribution requirements.

(1)(vi) One copy to the requiring activity for service contracts or task orders awarded by Air Force on behalf of a non-DoD agency.



5337.101 Definitions.

“Services Designated Official (SDO)” means the individual authorized IAW the FY02 National Defense Authorization Act (NDAA), Section 2330(a)(2)(A) to exercise responsibility for the management and oversight of the acquisition of services. These responsibilities include ensuring services acquisitions are performance-based; approving, in advance, any acquisition that is not performance-based; and approving the acquisition of services procured through the use of a contract or task order being awarded by an agency other than DoD.

“Management and Oversight of Acquisition of Services Process (MOASP)” means the document outlining the process the PEOs and MAJCOM Services Designated Officials will use to provide management and oversight of the acquisition of services in accordance with the FY02 NDAA, Section 801.


5337.170-3 Approval requirements


5337.503 Agency-head responsibilities.

5337.503-90 Services Designated Official(s). The designated official is responsible for the oversight and management of services acquisitions within their portfolio. For services acquisitions:

(a) Air Force Program Executive Office for Combat and Mission Support (AFPEO/CM) is the SDO responsible for:

(1) Acquisitions in excess of $100,000,000 (not in another PEO portfolio).

(2) All A-76 studies involving 300 or more Full Time Equivalents (FTEs).

(b) All other PEOs are the SDO responsible for programs in their portfolio, except those designated as special interest.

(c) For other contracting, HCAs or designees are the SDO responsible for acquisitions with a total value of $100M or less, and A-76 studies involving less than 300 FTEs. For DRUs, SDO responsibility is limited to the following:

(1) Non performance-based approvals (5337.170-3(a)).

(2) Any contract or task order for services acquisitions to be awarded by other than DoD (5337.170-3(b)).

5337.503-9000 Special Interest Authorities.

(a) A services acquisition can be designated special interest by the organizations identified below. The official designating a services acquisition special interest is responsible for the management and oversight of that acquisition.

(1) OSD(AT&L) and AFAE, regardless of the total planned value or program affiliation.

5337.503-9001 AFAE reporting requirements:

(a) ASAF(A) shall notify OSD(AT&L) before approving the acquisition strategy with a total planned value equal to or greater than $2,000,000,000.

(b) ASAF(A) shall notify OSD(AT&L) of actions to address significant cost, schedule, or performance problems on acquisitions equal to or greater than a total value of $2,000,000,000.

5337.503-9002 Management of Oversight of the Acquisition of Services Process (MOASP)

Oversight and management of all services acquisitions for the Air Force will be performed IAW the Air Force MOASP, as supplemented.


5337.601 General.

All services acquisitions shall be performance based. Services acquisitions above $2,500 are to include the requirements at FAR 46.102(a)-(g) to ensure the service rendered meets contract requirements. Services acquisitions with an annual contract value above the Simplified Acquisition Threshold (SAT) shall be performance-based IAW AFI 63-124, Performance-Based Services Acquisitions (PBSA).