Preamble:

This class determination and findings (FAR 1.703) is applicable to Interagency Agreements with the Defense Contract Audit Agency (DCAA) issued to obtain contract audit services as prescribed in and consistent with the Memorandum of Understanding (MOU) executed December 3, 1996, between the DCAA and the Department of Transportation (DOT) as amended.

This class D&F is approved for the following DOT Operating Administrations and Center:

Federal Highway Administration
United States Coast Guard
Transportation Administrative Service Center
Federal Transit Administration
National Highway Traffic Safety Administration
Federal Railroad Administration
Maritime Administration
Research and Special Programs Administration

Findings:

1. DOT established a Memorandum of Understanding with the Defense Contract Audit Agency (DCAA) to facilitate the issuance of Interagency Agreements to DCAA for contract audit services. The basic MOU was executed December 3, 1996, exclusively for contract audit services. The MOU does not include requirements for the award of contracting actions by DCAA, nor shall Interagency Agreements issued pursuant to this class D&F include such requirements.
   
   
2. DCAA is the cognizant contract audit activity for most DOT contractors which are audited, and FAR 15.404-2 (See September 30, 1997, Federal Register), previously FAR 15.805-5, encourages use of the cognizant contract audit activity to perform contract audit services.
   
   
3. DCAA has performed the majority of contract audit service for Government agencies in the past and it is noted that contract audit services are not included or categorized in the list of commercial activities functional codes cited at Appendix 2 of the OMB Circular A-76 Revised Supplemental Handbook.
   
   
4. Legal authority for each Interagency Agreement issued pursuant to this class determination and findings (D&F) will be determined to exist prior to signature by the Contracting Officer, although written evidence in every instance is not required.
   
   
5. Actions issued pursuant to this class D&F shall not conflict with any other agency's authority or responsibility or the MOU.
   
   Determination:
   
   Based upon these findings, I hereby determine that, as authorized by the Economy Act (31 U.S.C. 1535), it is in the Government's best interest to obtain contract audit services by using Interagency Agreements issued pursuant to the MOU cited above.
   
   The supplies or services can not be obtained as conveniently by contracting directly with a private source.
   
   This class D&F is limited to Interagency Agreements with the DCAA pursuant to the MOU cited above and is subject to the limitations cited under the Findings above. This class D&F expires on January 1, 2000, or upon expiration of the MOU, which ever date occurs first.
   
   APPROVED
   

   (original signed by)
   David J. Litman	November 7, 1997
   DOT Senior Procurement Executive	Date