MEMORANDUM OF UNDERSTANDING

PURSUANT TO THE ECONOMY ACT THROUGH WHICH [name of other agency] IS PURCHASING [state what they are purchasing] FROM [name of your operating unit] U.S. DEPARTMENT OF COMMERCE

1. PARTIES AND PURPOSE

This Memorandum of Understanding (MOU) establishes an agreement between the [name of other agency] and [name of DOC office], U.S. Department of Commerce (DOC), through which [name of other agency] will pay [name of DOC office] for the detail of [provide a general description of the detail for which the other party is paying]

2. BACKGROUND 

[Provide background information which addresses why the other party is requesting the detail.] 

3. AUTHORITY 

The authorities for [name of other agency] and DOC to enter into this agreement are:(1) the Economy Act, 31 U.S.C. § 1535, which provides that an agency may place an order with a major organizational unit within the same agency or another agency for goods or services if: 

(A) amounts are available; 

(B) the ordering agency decides the order is in the best interest of the United States Government; 

(C) the agency to fill the order is able to provide or get by contract the ordered goods or services; and 

(D) the agency decides ordered goods or services cannot be provided by contract as conveniently or cheaply by a commercial enterprise (payments must be made on the basis of the actual cost of goods or services provided); and 

(2) [set forth the other party's legal authority under which it is paying for the detail, i.e., the programmatic authority to which the purchase is related.]

(3) [set forth DOC’s legal authority under which is providing requested goods/services.]

4. ECONOMY ACT FINDINGS 

As set forth in the attached "Determinations and Findings Pursuant to 48 CFR 17.503," [name of other party] warrants that sufficient funding amounts are available, that this agreement is in the best interest of the United States Government, and that the services requested cannot be provided by contract as conveniently or cheaply by a commercial enterprise.

5. TERMS AND CONDITIONS

This section must include the following information:

a) delivery requirements

b) amount and method of payment (e.g. whether payments will be monthly, quarterly, in advance)

c) method and frequency of performance reporting

d) This agreement is subject to the availability of funds.

e) [Name of you office] will achieve full cost recovery for the goods and services it is providing under this agreement. 

f)  Time and Attendance. [employee=s name] time and attendance will be maintained by the [name qualifying partner] and the Department of Commerce. The [name qualifying partner] timekeeper will report [employee=s name] time and attendance to [name of appropriate Department timekeeper], telephone [appropriate telephone number], facsimile [appropriate facsimile number], on a biweekly basis and will advise the Department of Commerce of the type and amount of any leave used during that period. 

g) Employee Evaluations. Upon the request by the Department of Commerce, using the performance plan issued to [employee=s name], the [name qualifying partner] will provide in writing a descriptive evaluation of [employee=s name] performance and submit it to the Department of Commerce no later than September 30 of the calendar year or earlier if the detail ends prior to that date. 

h) [Name of qualifying partner] agrees to perform the following additional responsibilities: provide technical and operational support to [employee=s name] for all [name qualifying partner] activities; provide office space and administrative support to [employee=s name] while assigned to [name qualifying partner]; [list additional responsibilities].

i) [Name of DOC operating unit] agrees to perform the following additional responsibilities: [list additional responsibilities if applicable].

6. ACCOUNTING DATA

Treasury Account Symbol (TAS)/Appropriation Code:

Commerce:

[name of other agency]:

These funds will expire on ____________.

Business Event Type Code:

Commerce:

[name of other agency]:

Business Partner Network (BPN) number/DUNS number:

Commerce:

[name of other agency]:

Amounts will be deobligated to the extent that the servicing agency has not incurred obligations before the end of the period of availability of that appropriation. [NOTE: your office may ask for advance payment for all of part of the estimated costs of furnishing the supplies or services, or payment may be made after the supplies and services have been furnished. Under no circumstances will the amount paid be more than the actual costs of the goods or services.]

7. DURATION OF AGREEMENT AND AMENDMENTS

This agreement will become effective when signed by the parties. The agreement will terminate on [date], but may be amended at any time by mutual written consent of the parties. [NOTE: Agreements should not exceed the period of availability of the funds.] 

8. TERMINATION AND CANCELLATION CLAUSE

Any party may terminate this agreement by providing ____ days written notice to the other party. If the requesting agency cancels the order, the providing agency is authorized to collect costs incurred prior to cancellation of the order plus any termination costs. The total value of the agreement, including termination costs, will not exceed ______.

9. RESOLUTION OF DISAGREEMENTS 

Should disagreement arise on the interpretation of the provisions in this agreement, the dispute shall be resolved pursuant to the Business Rules for Intragovernmental Transactions delineated in the Treasury Financial Manual, Vol. 1, Bulletin 2007-03, Section VII (Resolving Intragovernmental Disputes and Major Differences).

10. CONTACTS 

The contacts of each party to this agreement are: [NOTE: You must include both administrative and technical points of contact.]

[Name of DOC contact]

[title]

[address]

phone:

fax :

E-mail:

[Name of other party's contact person]

[title]

[address] 

phone: 

fax: 

E-mail: 

The parties agree that if there is a change regarding the information in this section, the party making the change will notify the other party in writing of such change.

_______________________________ 

[signature of person who has authority to 

make the Economy Act purchase]

[typed name] 

[typed title]

[typed name of other agency] 

[typed address of other agency]

_____________________

[date]

_______________________________ 

[signature--must be an official with authority to sign 

Economy Act Agreements for incoming funds] 

[typed name]

[typed title]

[typed office at DOC] 

U.S. Department of Commerce

DETERMINATION AND FINDING PURSUANT TO 48 CFR 17.503

[Name of other party] warrants: 

_____ that sufficient funding amounts are available; 

_____ that this agreement is in the best interest of the United States Government; and

_____ that the services requested cannot be provided by contract as conveniently or cheaply by a commercial enterprise. [NOTE: place a check in each space for each finding to indicate it has been substantiated.]

It has been determined that this Economy Act order:

_____ does not require contracting action by the servicing agency; or

_____ does require contracting action by the servicing agency and that one of the following circumstances exists:

_____ the acquisition will appropriately be made under an existing contract of the servicing agency, entered into before placement of the order, to meet the requirements of the servicing agency for the same or similar supplies or services;

_____ the servicing agency has capabilities or expertise to enter into a contract for such supplies or services which is not available within the requesting agency; or

_____ the servicing agency is specifically authorized by law or regulation, i.e., [set forth the citation for the law or regulation], to purchase such supplies or services on behalf of other agencies. [NOTE: place a check in each space above that applies.] 

_______________________ 

[name of official of the other party who has authority to sign this D&F, i.e., either a contracting officer or other official designated by the agency to sign the D&F]

[title and office]
[address, phone number, e-mail]
[name of agency] 

Date:____________