INSTRUCTION

DEPARTMENT OF DEFENSE Defense Contract Management Agency

INSTRUCTION

Public Vouchers

Contracts Directorate OPR: DCMA-AQCF

DCMA-INST 106 July 31, 2013

Validated Current with Administrative Changes, June 30, 2014

1. PURPOSE. This Instruction:

a. Reissues and updates DCMA Instruction (DCMA-INST) 106, "Public Vouchers" (Reference (a)).

b. Establishes policies, assigns roles and responsibilities, and provides for the administration of Public Vouchers.

c. Implements DCMA Policy pursuant to References on page 3.

d. Complies with DoD Directive (DoDD) 5105.64 (Reference (b)).

c. Is established in accordance with the authority in DoDD 5105.64, "Defense Contract Management Agency (DCMA)" (Reference (b)).

2. APPLICABILITY. This Instruction applies to all DCMA activities. unless higher-level regulations, policy, guidance, waiver, or agreements take precedence; e.g., DCMA International and Special Programs. For classified contracts with security requirements, exceptions to this Instruction shall be in accordance with supplemental instructions maintained by the Special Programs Directorate." (DCMA-INST 221, Integrated Surveillance Plan (Reference (c)))

3. MANAGERS' INTERNAL CONTROL PROGRAM. This instruction contains managers' internal control provisions that are subject to evaluation and testing as required by DCMA-INST 710, "Managers' Internal Control Program" (Reference (d)). The process flowchart is located at Appendix A. on the resource Web page.

4. RELEASABILITY ? UNLIMITED. This Instruction is approved for public release.

5. PLAS CODE.

a. 141 Public Vouchers

b. ACAT/Other Customers (when applicable).

DCMA-INST 106 July 31, 2013

Validated Current with Administrative Changes, June 30, 2014 c. Other National; Training and Travel, Local Programs (when applicable). 6. POLICY RESOURCE WEB PAGE. 7. EFFECTIVE DATE. By order of the Director, DCMA, this Instruction is effective immediately.

Timothy P. Callahan Executive Director Contracts

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DCMA-INST 106 July 31, 2013

Validated Current with Administrative Changes, June 30, 2014 TABLE OF CONTENTS

REFERENCES ...............................................................................................................................4 CHAPTER 1 ? POLICY

1.1. Policy .................................................................................................................................6 CHAPTER 2 ? ROLES AND RESPONSIBILITIES

2.1. Contractor ..........................................................................................................................7 2.2. Contract Administrator (CA). ............................................................................................7 2.3. Administrative Contracting Officer (ACO) .......................................................................7 2.4. Contract Auditor ................................................................................................................8 CHAPTER 3 ? PROCEDURES 3.1 Contractor ..........................................................................................................................9 3.2. Contract Administrator (CA) .............................................................................................9 3.3. Administrative Contracting Officer (ACO) .....................................................................10 3.4. Contract Auditor ..............................................................................................................16 3.5. DCMA Contract Management Team (CMT) ..................................................................18 APPENDIX Appendix A. Public Voucher Flowchart.................................................................................20 GLOSSARY Definitions................................................................................................................................20 Acronyms .................................................................................................................................23

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DCMA-INST 106 July 31, 2013

Validated Current with Administrative Changes, June 30, 2014

REFERENCES

(a) DCMA-INST 106, "Public Vouchers," May 2004 (hereby canceled) (b) DoDD 5105.64, "Defense Contract Management Agency (DCMA),"

January 13, 2013 (c) DCMA-INST 221, "Integrated Surveillance Plan," April 14, 2014 (d) DCMA-INST 710, "Managers' Internal Control Program," April 21, 2014 (e) DFARS 252.232-7003(b), "Electronic Submission of Payment Requests and Receiving

Reports" (f) DoD 7000.14-R "Financial Management Regulations (FMR)" Volume 10, Chapter 10,

paragraph 100302, Cost Reimbursement Type Contracts, June 2012 (g) DFARS 232.7002, "Electronic Submission and Processing of Payment Requests and

Receiving Reports ? Policy" (h) DoD 7000.14-R "Financial Management Regulations (FMR)" Volume10, Chapter 8,

paragraph 080404, Invoice, August 2012 (i) DoDD 5105.36, "Defense Contract Audit Agency (DCAA)," January 4, 2010 (j) FAR 6.302-2, "Unusual and Compelling Urgency" (k) DFARS PGI 204.7108(b), "Payment Instructions" (l) DFARS PGI 204.270, "Electronic Document Access" (m) Defense Procurement and Acquisition Policy Letter, November 3, 2009 (n) FAR 52.232-20, "Limitation of Cost" (o) FAR 52.232-22, "Limitation of Funds" (p) FAR 52.216-7, "Allowable Cost and Payment" (q) FAR 52.232-7, "Payments Under Time-and-Materials and Labor-Hour Contracts" (r) FAR 4.804-5, "Procedures for Closing Out Contract Files" (s) DFARS PGI 225.870-5, "Other International Agreements and Coordination - Contract

Administration" (t) FAR 16.601, "Time-and-Materials Contracts" (t ) FAR 52.232-7 Payment Under Time and Materials and Labor Hour Contracts (u) FAR 52.232-7(g), Assignment and Release of Claims (u) FAR 16.703, "Basic Ordering Agreements" (v) FAR 52.216-8(b), "Fixed Fee" (w) DFARS 252.242-7005(d), "Contractor Business Systems" (x) DCMA-INST 131, "Contractor Business Systems," November 6, 2013 (y) FAR 16.306(d)(1), "Cost-Plus-Fixed-Fee Contracts ? Completion and Term Forms" (aa) FAR 16.306 (d)(2), Cost-Plus-Fixed-Fee Contracts (z) FAR 52.233-1, "Disputes" (aa) DCMA-INST 905, "Contract Claims and Disputes," December 17, 2013 (ab) DCMA-INST 134, "Boards of Review," October 15, 2012 November 4, 2013 (ac) FAR 16.304, "Cost-Reimbursement Contracts - Cost Plus Incentive Fee Contracts" (ad) FAR 16.405-1, "Cost-Reimbursement Incentive Contracts - Cost Plus Incentive Fee

Contracts" (ae) FAR 52.216-10 (c)(1), "Incentive Fee" (ah) FAR 52.232-20, Limitation of Cost (ag) DCAA Contract Audit Manual (CAM) Chapter 6, Paragraph 6-1008, "Review and

Approval of Interim Public Vouchers Submitted to the Auditor," February 24, 2014

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DCMA-INST 106 July 31, 2013

Validated Current with Administrative Changes, June 30, 2014 (ah) FAR 1.405, "Deviations Pertaining to Treaties and Executive Agreements" (ai) DFARS 225.872-6, "Contracting With Qualifying Country Sources ? Audit" (am) DFARS PGI 225.870-5, Contract Administration (aj) DCAA CAM, paragraph 6-1007, "Defense Contract Audit Manual "Direct

Submission of Interim Public Vouchers to Disbursing Offices (Direct Billing)," February 24, 2014 (ak) DFARS 252.242-7006, "Accounting System Administration" (al) DFARS 252.242-7004, "Material Management and Accounting System" (an) DFARS 252.244-7001, "Contractor Purchasing System Administration" (ao) DFARS 252.234-7002, "Earned Value Management System" (ap) DFARS 252.215-7002, "Cost Estimating System Requirements" (aq) FAR 42.705, "Final Indirect Cost Rates" (ar) FAR 2.101, "Definitions" (au) DCMA-INST 128, "Disallowance of Cost," December 2011 (as) DCMA-INST 128, "Disallowance of Costs," December 4, 2013 (at) FAR 31.205-26, "Selected Costs - Material Costs" (aw) FAR 42.705, Final Indirect Cost Rates (ax) FAR 2.101, Definitions

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DCMA-INST 106 July 31, 2013

Validated Current with Administrative Changes, June 30, 2014 CHAPTER 1 POLICY

1.1. POLICY. It is DCMA policy to ensure that: 1.1.1. The contractor is appropriately reimbursed for authorized costs incurred under cost

reimbursement, time and material and labor-hour (T&M/LH) contracts to the extent they are reasonable, allocable, and determined to be allowable in a timely manner.

1.1.2. The contractor is paid for fees earned based on contract terms and conditions in a timely manner.

1.1.3. DCMA customers receive timely notification of potential cost over-runs or underruns, and contracts are properly adjusted when necessary.

1.1.4. DD Form 250, Material Inspection and Receiving Report, may be used to request payment for firm-fixed price contract line item numbers (CLIN); and SF 1034, Public Voucher for Purchases and Services Other than Personal may be used to request payment of cost CLINs unless stated otherwise in the contract.

1.1.5. This Instruction is applicable to contracts delegated to DCMA for administration.

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DCMA-INST 106 July 31, 2013

Validated Current with Administrative Changes, June 30, 2014

CHAPTER 2

ROLES AND RESPONSIBILITIES

2.1. CONTRACTOR. The contractor submits payment requests and receiving reports electronically in the Wide Area Workflow (WAWF) system in accordance with Defense Federal Acquisition Regulation Supplement (DFARS) 252.232-7003(b) (Reference (e)) and DoD 7000.14-R Financial Management Regulation (FMR) Volume 10, Chapter 10, paragraph 100302 (Reference (f)) when the clause is stated in the contract. DFARS 232.7002 (Reference (g)) identifies exceptions to electronic submission.

2.2. CONTRACT ADMINISTRATOR (CA). The CA:

2.2.1. Reviews prime contracts and modifications to determine if they contain a requirement for Public Voucher (PV) submission or special payment instructions.

2.2.2. Reviews requests for payment when necessary to check accuracy and provide recommendations to the administrative contracting officer (ACO) when discrepancies are identified or ACO signature is required.

2.3. ADMINISTRATIVE CONTRACTING OFFICER (ACO). The ACO (see DoD 7000.14-R FMR Volume 10, Chapter 8, paragraph 080404 E (Reference (h)):

2.3.1. Reviews and approves the completion/final voucher under cost-plus, fixed fee, or other cost-reimbursement contracts.

2.3.2. Reviews and approves vouchers and invoices for termination costs under supplemental agreements unless the termination modification specifies the costs to be paid.

2.3.3. Reviews and approves completion vouchers under T&M/LH contracts.

2.3.4. Reviews and approves invoices for progress and performance-based payments under fixed-price type contracts.

2.3.5. Reviews and approves vouchers and invoices where the contract requires approval by the ACO before payment.

2.3.6. Reviews and approves invoices for the release of withhold amounts previously instituted by the ACO.

2.3.7. Reviews and approves any payment request where a disbursing officer requires an ACO signature.

2.3.8. Tracks and evaluates the contractor's business systems and key processes that influence contract billing. Furthermore, the responsible contracting officer approves contractor business systems.

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DCMA-INST 106 July 31, 2013

Validated Current with Administrative Changes, June 30, 2014 2.3.9. May request that the assigned engineer and/or industrial specialist conduct a technical evaluation of contractor's progress and/or estimate of total cost to perform contract. 2.4. CONTRACT AUDITOR. The contract auditor: 2.4.1. Receives, reviews, and approves interim cost PVs including vouchers for commercial and non-commercial T&M/LH contracts. Defense Contract Audit Agency (DCAA) is the authorized representative of the ACO for approving interim vouchers for provisional payment at locations where DCAA has cognizance, except for the final voucher. ACOs may approve other than final vouchers in order to administer canceling funds, resubmitted interim vouchers, and fee withholds. See DoDD 5105.36 (Reference (i)) for additional information. 2.4.2. Has sole authority for verifying claimed costs and approving interim payment costs under cost-reimbursement, and T&M/LH contracts. Contracting Officer Representatives (COR) shall not be delegated authority to approve these types of payments. The CORs may review contractor billings, but are expected to coordinate with DCAA when any cost verification of data is necessary in support of their surveillance responsibilities. Therefore, DCAA approves interim payment requests, the ACO approves the final payment request, and the CORs coordinate with DCAA if any cost verification is needed. DoD 7000.14-R FMR Volume 10, Chapter 10, paragraph 100302 (Reference (f)) contains additional details.

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