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Section 3 - Get as DOC


  • pg 1
									NAVMED P-5132                                      ACQUISITION OF EQUIPMENT


Acquisition of Equipment
Paragraph                              Subject                                       Page
 3-1             Standardization Requirements                                         3-1
 3-2             Excess Equipment                                                        3-4
 3-3             Approval Process                                                        3-4
 3-4             Equipment Requiring Special Approval                                    3-9
 3-5             Budgeting and Funding for Medical and Dental                            3-19
 3-6             Ordering and Receiving                                                  3-23
                                              b. Standardization Criteria. An
                                           item necessary for the practice of
3-1                                        military medicine or dentistry will be
                                           considered for standardization by the
Standardization                            DoD for one of the following reasons:
Requirements                                The essential nature of the item
                                             requires its immediate availability
1. General                                   from DoD or military service stock on
   a. Standard Items. For purposes
of this manual, a standard item is one      The item is designed primarily for use
that has been approved and adopted by        by the Operating Forces.
the military Services, has been assigned      c. Responsible Agencies. The
an NSN, and complies with a detailed       DMSB is the DoD agency responsible
descriptive specification or performance   for the clinical, technical, and logistical
specification. A standard item may be      aspects of medical materiel entered into
centrally stocked in the DLA depot         the Defense Supply System.

                                           NAVMEDLOGCOM is tasked with the
                                           responsibility of coordinating a unified
22 Oct 98                                                                    3-1
NAVMED P-5132                                          ACQUISITION OF EQUIPMENT

Navy position on each candidate                  Whether the item is a replacement
medical item for standardization. The             for another already standardized
Equipment Support Department, (Code               item.
03), coordinates the technical review of
                                                 b. Recommendations for
investment equipment and equipment
                                              Standardization. Recommendations
for MILCON projects. The Surgeon
                                              for standardization of medical and
General's specialty leaders are tasked
                                              dental materiel should be forwarded
to review, evaluate, and make any
                                              through channels to Commanding
recommendations for classification,
                                              Officer, Naval Medical Logistics
reclassification, or review of essential
                                              Command (Code 06) 521 Fraim Street,
characteristics of medical and dental
                                              Fort Detrick, MD 21702-5015.
materiel. Additionally, they assess the
                                              Recommendations for standardization
categories of equipment, which require
                                              require the following information (as
prior BUMED technical approval. The
professional criteria, developed as a
result of these reviews, serve as the            Descriptive data, including trade
basis for acquisition action.     These           name, dosage form, strength,
criteria must withstand rigorous reviews          packaging, unit cost, manufacturer,
to ensure compliance with Government              model, catalog number, electrical
acquisition policies.                             characteristics, operating
2. POLICY                                         characteristics, size, or color, as
                                                  applicable, and NSN of
   a. Review of Requests.            The          Supplementary Medical Item, if a
Surgeon General's specialty leaders will          number has been assigned.
review the requests and provide
professional opinions that will enable           Copies of manufacturer's descriptive
effective logistical support of the Navy          literature, package insert, operating
Medical Department mission.           All         instructions, and maintenance
reviews will consider:                            instructions.

     Appropriateness to the activity's          Justification for standardization, to
      medical mission, intended use, and          include estimated use (the
      its facilities.                             justification should be sufficiently
                                                  detailed to permit thorough
     Appropriate utilization by present          evaluation of the recommendation in
      staff.                                      the context of the parameters
     Other items which may better meet           indicated in paragraph 3-1,2.a.
      the activity’s needs.
     Whether the item is state-of-the-art.

     Reliability, availability, and          3. Assignment of NSNs to
      maintainability of the item for Navy    Nonstandard Medical Materiel
      and Marine Corps use.
                                                  a.   General.   Stock numbers are
3-2                                                                         22 Oct 98
 NAVMED P-5132                                        ACQUISITION OF EQUIPMENT
assigned to non-standard items to aid in     (Code 06), 521 Fraim Street, Fort
materiel management functions. Prior         Detrick, MD 21702-5015. This form is
to 1985, the Services individually           available from NAVMEDLOGCOM, or it
assigned nonstandard stock numbers at        may be reproduced locally.
the local, echelon 3, or Service-wide
level as required. In 1985, the DLA
became responsible for the assignment
of NSNs for nonstandard items. The
purpose of this change was to provide
more positive identification and greater
visibility over nonstandard open market
purchases to determine which items
meet minimum purchase criteria in order
to be considered for standardization.
   b. DSMI Items.      DSMI (C-3000/
9900-DSMI) was a catalog published
quarterly by DSCP to identify non-
standard open market purchase items
by NSN. The DSMI has been dis-
continued as the NSNs are now
published in the Universal Data
Repository (UDR). Activities will identify
locally procured nonstandard medical
and dental items using the NSNs
provided in UDR.
   c. Application for NSN. All items
that are to be listed on the Report of
Procurement of Nonstandard Medical
and Dental Materiel (BUMEDINST
6700.20 series) will be identified by
NSN. If the item has not been assigned
an NSN, an Application for NSN (DLA
Form 1724 (Test)) must be submitted
for the item so that it can first be added

the UDR and assigned an NSN. The
DLA Form 1724 (Test) is prepared
following the instructions in Annex 1 and
submitted via the Commanding Officer,
Naval Medical Logistics Command
22 Oct 98                                                                   3-3
NAVMED P-5132                                        ACQUISITION OF EQUIPMENT

                                             by or available through NAVMEDLOG-
3-2                                          COM to maximize the use of excess
Excess Equipment                             property to meet existing requirements.
                                             Submit requests for excess property to
                                             NAVMEDLOGCOM following Section 12
1. Background                                of this Manual.
Property that is excess to the needs of
MTFs or DTFs represents a fertile
source of materiel resources for other
facilities.     Redistribution of these      3-3
excesses provides the gaining facility       Approval Process
with the opportunity to obtain materiel at
little or no cost in a time when obtaining
funds for new equipment is becoming          1. Equipment       Program         Review
increasingly difficult.                      Committee (EPRC) Actions. An EPRC
                                             will be established and used at each
2. Scope                                     activity to plan, budget, approve, and
NAVMEDLOGCOM is responsible for              prioritize equipment acquisitions.
the management and execution of                 a. EPRC Composition. The mini-
BUMED's Excess Medical and Dental            mum composition of the EPRC will be
Materiel Redistribution Program to           the following individuals or their
include screening and directing the          functional equivalent. Chairman to be
redistribution or disposition of excess      appointed by Commanding Officer or
medical and dental equipment and             Officer in Charge.
materiel for the BUMED claimancy. A
complete      discussion    of    excess            (1) Naval Hospitals:
equipment and materiel, including                   Chairman
procedures for acquisition, can be found            Director of Hospital Adm.
in Section 12 of this Manual.                       Director of Surgical Services
3. Procedures                                       Director of Ancillary Services
                                                    Director of Nursing Services
   a. Screening.        Activities should           Director of Medical Services
identify available sharable and idle                Comptroller
equipment. New equipment cannot be                  Equipment Manager
acquired without certification that                 Head, Materiel Management
equivalent sharable and idle equipment              Staff CEC Officer
was      not      available      in-house.          or Facilities Manager
NAVMEDLOGCOM will review all                        BMET or DET
reports of excess property, coordinate              Head, Mgmt Information Dept
the reutilization of capital equipment,             Safety Officer
and announce the availability of excess
property as discussed in Section 12 of
this Manual.                                      (2) Other BUMED managed
   b. Acquisition.    Activities    will     commands:
review excess materiel lists published              Chairman
3-4                                                                        22 Oct 98
NAVMED P-5132                                      ACQUISITION OF EQUIPMENT

       Department Heads                    prioritization process.
    b. EPRC Responsibilities. The               (3) In addition to the above, the
responsibilities of the EPRC are as        command EPRC will:
                                              Monitor the equipment replacement
         (1) At least semi-annually, the       program, ensuring compliance with
command EPRC will meet to formulate            this manual and other appropriate
and prioritize O&M-funded equipment            instructions and directives
requirements.       Except for emergent
                                              Monitor the property administration
requirements, the resulting list will
determine the order of equipment pro-
curements. The number of items to be          Monitor the management of the
purchased will be determined by the            excess equipment program.
availability of local funds. The OP/O&M
                                           2. Approval Thresholds and
Equipment Request (Annex 4) is
recommended for use during the
prioritization review process.                a. High-Cost Medical Equipment
                                           Items. Replacement items with a unit
        (2) At least annually, the EPRC
                                           or system procurement cost of
will accomplish the following:
                                           $1,000,000 or more, must be approved
          (a) Review the command's         by the Surgeon General. New Items
equipment management program to            with a unit or system procurement cost
ensure that written instructions, which    of $1,000,000 or more must also obtain
adequately outline an effective equip-     approval from the Surgeon General.
ment management program, are               The Surgeon General, however, must
provided and that the guidance is being    obtain the concurrence of the TRICARE
followed.                                  Lead Agent in whose region the
           (b) Establish priorities for    equipment will be located prior to
each OP equipment item to be               purchase or lease as described in HA
submitted in the command's equipment       Policy Letter 97-051.      The cost of
budget. Equipment priority lists from      acquisition, transportation, installation,
branch medical or dental clinics or        facility  modification,   and    training
detachments will be consolidated into      determines if the item is $1,000,000. A
one command priority list. Priorities      supporting economic benefit analysis in
assigned must reflect the actual buying    the format displayed in Annex 4 must
intentions of the command since this is    accompany all requests for high cost
the order in which funding and central     items, except for replacement items.
procurement will occur. Factors such as
                                           Requests for equipment (or systems)
the recapture of CHAMPUS expendi-          costing $1,000,000 or more will be
tures, return of patient workload to       reviewed by the local Lead Agent, the
military facilities, increase in pro-      appropriate Specialty Leader, the Naval
ductivity, and support of GME training     Diagnostic Imaging and Radiotherapy
should be major considerations in the      Board (NAVDIRB) (if radiographic),
                                           before submission to BUMED for
22 Oct 98                                                                     3-5
NAVMED P-5132                                          ACQUISITION OF EQUIPMENT

approval. The submitting activity is only         The costs of additions to an OP-
responsible for getting the Lead Agent             funded system are equal to or
approval/disapproval.                              greater than the OP threshold.
NAVMEDLOGCOM will coordinate all                  The cost of initial installation for
the other reviews. To ensure that all              OP-funded equipment or systems
approvals     are   received    before
distribution of OP funds, complete                Cost of operator training is OP
equipment     packages    should    be             funded for OP-funded equipment. If
submitted by the beginning of each                 operator training is off-site, OP funds
fiscal year for the next fiscal year.              will pay for one individual’s training
Packages should be submitted to                    (Travel and per diem are O&M
Commanding Officer, Naval Medical                  funded).
Logistics Command (Code 03) 521                        (2) O&M-FUNDED. The O&M
Fraim Street, Fort Detrick, MD                 appropriation is proper when the
21702-5015.                                    equipment or system meets the
   b. Equipment Costing Less than              following criteria:
$1,000,000. Such equipment may be                 Cost is less than the OP threshold
funded by the O&M or OP appropriation.             and no NSN is assigned.
Installed equipment is normally funded
with Maintenance of Real Property                 Cost is less than the OP threshold
(MRP) funds as discussed below.                    and an NSN is assigned, regardless
                                                   of AAC.
        (1) OP-FUNDED.       The        OP
threshold is currently $100,000.        The       Shared Procurement equipment or
OP appropriation is proper when          the       systems with an acquisition cost less
equipment or system meets                the       than the OP threshold.
following criteria:                               Cost is equal to or greater than the
     Cost is equal to or greater than the         OP threshold and an NSN is
      OP threshold and no NSN is                   assigned and is AAC "D."
      assigned.                                   The per item cost of additions to or
     Cost is equal to or greater than the         replacements within the OP-funded
      OP threshold and an NSN is                   system is less than the OP
      assigned, but is not AAC "D".                threshold.

     Shared Procurement equipment or             Cost of relocation of previously
      systems with an acquisition cost             installed OP-funded equipment or
      equal to or greater than the OP              system is O&M-funded.
      threshold.                                  Cost BMET training is O&M funded.
     Upgrades, regardless of cost, to                 (3) Cautions
      equipment or systems that meets the
      current threshold.                          An equipment item or system's unit
                                                   cost cannot be increased to reach
3-6                                                                       22 Oct 98
NAVMED P-5132                                           ACQUISITION OF EQUIPMENT

    the OP threshold by including the             OP,DHP, O&M,DHP, or construction
    cost of transportation, installation or       (MRP) dollars.
                                                 Some examples of MRP funded
   An equipment item or system's unit            equipment are:
    cost cannot be decreased below the               fire alarms and intercom systems
    OP threshold by subtracting the                   (including Nurse Call Systems).
    value of any early payment discounts
    or trade-in allowances.                          electrical generators and auxiliary
   Requirements      may      not     be
    fragmented in order to circumvent                built-in food preparation and
    designation of equipment as a                     serving equipment (galley
    system. All due caution must be                   dishwashers).
    exercised in properly defining                   built-in refrigerators and reefers.
    requirements to avoid acquisition of
    what should properly be classified as            waste disposers, such as
    a system in a piecemeal fashion.                  incinerators.

   Similarly, items which do not                    hoods and vents.
    normally function together within the            Built-in laboratory and pharmacy
    context of a whole to satisfy a                   furniture.
    documented requirement may not be
                                                     heating, ventilating, and air
    grouped as a system.
                                                      conditioning installations.
        (4) MRP Funded Installed
                                                 The fact that some of the above
Equipment.        Installed Equipment,
                                                  types of equipment may have been
sometimes called "built-in equipment," is
                                                  funded by OP funds in the past is not
accessory equipment and furnishings
                                                  a justification for continued OP
that are required for operation, and are
                                                  funding in view of the guidance
affixed and built in as part of the real
                                                  contained in OPNAVINST 11010.20
property facility. Such equipment is
                                                  series. If there is any doubt whether
engineered and built into the facility as
                                                  an item should properly be funded
an integral part of the final design, and
is considered an essential part thereof.

                                                  with OP or construction (MRP) funds,
                                                  consult your local civil engineer or
Equipment of this class is considered
                                                  contact BUMED (MED-33).
part of the real property and is normally
taken up as Plant Property Class 2.              c. OP-Funded          Equipment
Replacement of Installed Equipment is         Paragraph 3-5,1 contains documenta-
properly funded with MRP funds, also          tion requirements.
referred to as construction dollars.                 (1) Each item of equipment (or
  OPNAVINST       11010.20    series         system)     funded   from    the  OP
   provides guidance on determining if        appropriation will receive technical
   equipment should be procured with          review    and    approval  from    the
22 Oct 98                                                                      3-7
NAVMED P-5132                                          ACQUISITION OF EQUIPMENT

appropriate Surgeon General's specialty           semi-annually in April and October.
leader. NAVMEDLOGCOM will initiate
                                                  d. O&M-Funded Equipment
and coordinate required specialty leader
technical reviews.                                    (1) With the exception of
                                               equipment requiring special approvals
     Technical approvals are valid for 3      or     exceptions    from      Shared
      years.     For example, an item          Procurement, no approvals are required
      technically approved this year may       beyond the local command level for the
      not need to be technically reviewed      procurement of O&M-funded equipment.
      again for another 2 years. If the
      technically approved item is not                  (2) Purchase of this equipment
      funded the first year, it should be      will be determined by the needs of the
      budgeted the following year for up to    activity, availability of local operating
      2 years before another technical         funds, and recommendations of the
      review will be required.         The     EPRC.
      NAVMEDLOGCOM          will   provide            (3) Controlled     and   Service-
      activities with a list of their          Regulated Equipment
      technically approved equipment
      annually.                                           (a) Each standard supply or
                                               equipment item listed in the Federal
     The technical approval process           Supply Catalog is assigned an AAC.
      applies to both the normal budgeting     The specific definition of each AAC is
      cycle and emergent requirements.         listed in the federal cataloging system
        (2) Additional approvals are           (ML-N) and in the DLA Customer
required for equipment items which fall        Assistance Handbook.
into special categories (such as, photo-                 (b) Items with AACs "A," "B,"
graphic equipment BUMED (MED-05B2)              "C," "M," "N,” or "W" are controlled or
approval,     reprographic    equipment        service regulated. Requisitions for such
NPPSO approval) as discussed later in          items must be submitted through supply
this section. These approvals will be          channels to the Naval Medical Logistics
obtained and included in the budget
submission to NAVMEDLOGCOM.
                                               Command (Code 03), 521 Fraim Street,
                                               Fort Detrick, MD 21702-5015 for
       (3) Commands receiving OP               administrative approval and further
funds directly from BUMED must                 supply action.
complete and file Acquisition Status
Reports, MED 4550-3, (Annex 5) with                     (4) Equipment Required for
NAVMEDLOGCOM by the 15th of the                Specific Projects. Equipment that was
month for the previous month.         A        requisitioned for a specific project
schedule for submitting these reports is       requires periodic re-justification for
given below:                                   retention beyond 90 days after project
                                               completion, unless disposed of following
     First, second, and third year - submit   the guidance contained in this manual.
     Fourth through eighth year - submit
3-8                                                                         22 Oct 98
NAVMED P-5132                                        ACQUISITION OF EQUIPMENT

                                                (as applicable):
3-4                                                If requirement is an emergent,
Equipment Requiring                                 request for waiver must be made
Special Approval                                    by message and must address
                                                    use of excess, temporary lease,
                                                    and temporary loan to fulfill the
1. Shared Procurement Program                       emergent requirement. Also, the
    a. General. The DoD/DVA/DHHS                    situation making the requirement
Shared Procurement Program for                      emergent should be thoroughly
medical and dental equipment is a                   explained.
Congressionally mandated, mandatory
use    program,    which    seeks     to         Explanation of how the requested
consolidate equipment procurement to              item clearly differs from the
obtain system-wide cost savings and               Shared Procurement item in an
materiel standardization. Paragraph 3-            essential way.     Requests not
6,5 provides guidance and requisitioning          clearly      demonstrating     an
procedures required for compliance with           essential difference from the
the Shared Procurement Program. The               Shared Procurement item will be
list of active Shared Procurement                 denied. Requests for exemption
contracts is published monthly in the             citing differences should explain
NMDMB.                                            why the differences are required.
                                                  Requests solely to standardize
   b. Requirements.             Shared            equipment around a certain
Procurement contracts are mandatory               manufacturer or model will be
for DoD. Activities may not procure the           denied.
same general type or family of
equipment    as     that  on    Shared
Procurement without a formal waiver

                                                d. Circumstances           Affecting
   c. Requests for Waiver. Submit           Waiver Approval.         The following
requests for waiver from mandatory          circumstances influence the likelihood of
Shared Procurement contracts by letter      approving a waiver from Shared
or message to NAVMEDLOGCOM                  Procurement:
(Code 03).       Waiver requests must
contain the following information:             A local purchase price less than the
                                                Shared Procurement price, unless
   ECN of the approved NAVMED                  the desired item's required capability
    Form 6700/12 authorizing the item, if       is less than that provided by the
    it is OP-funded equipment.                  Shared Procurement item and the
   Quantity to be exempted.                    Shared        Procurement        item's
                                                capability is not mandatory. Waivers
   Justification why  the    Shared            requested based on urgency of need
    Procurement equipment will not              will require certification by DSCP that
    meet your requirement, to include           they cannot meet the required
22 Oct 98                                                                          3-9
NAVMED P-5132                                        ACQUISITION OF EQUIPMENT

   delivery date. Due to the nature of        procurement of MHE, allowance change
   the Shared Procurement contracts,          requests, maintenance, and inventory
   and DSCP's ability to issue a direct       reporting.
   delivery order with accelerated
                                                 b. Life-Cycle Management (LCM)
   shipment, waiver requests based on
                                              Responsibility.          NAVSUP      is
   urgency should, therefore, be
                                              responsible for LCM of MHE. This
   extremely rare.
                                              responsibility is further delegated to
   e. Adjustments/Problems. If an             Naval Inventory Control Point (NICP),
overriding  Quality    Assurance/Risk         Mechanicsburg, PA who performs
Management      (QA/RM)      problem          inventory management, requirements
concerning   an     awarded   Shared          determination, procurement initiation,
Procurement item occurs, the activity         budgeting, asset distribution, approval
should contact NAVMEDLOGCOM by                of allowances, disposal authority, and
the most expeditious means with the           other LCM responsibilities for MHE.
                                                c. Budgeting        and      Funding
2. Microfilm Equipment.          Minor        Responsibility
microfilm equipment, such as readers
                                                       (1) BUMED is responsible for
and reader printers, with a purchase
                                              budgeting and funding for the activity's
price under the OP threshold may be
                                              initial MHE requirements in support of
obtained locally. Microfilm equipment
                                              new        or      increased    mission
items whose purchase price exceeds
                                              responsibilities. Requests for new or
the OP threshold must be justified and
                                              increased MHE allowances will be
submitted to NAVMEDLOGCOM for
                                              submitted      through     BUMED     via
funding consideration in accordance
                                              NAVMEDLOGCOM for recommendation
with the procedures and the format
prescribed by paragraph 3-5,1.
                                              of approval or disapproval to NICP
                                              (Code 3456) as described in NAVSUP
3. Frequency           Allocation       for
                                              10490.33 series. Requests for MHE with
Telecommunication              Equipment.
                                              an acquisition cost that meets or
Activities will obtain frequency allocation
                                              exceeds the OP threshold (currently
approval as described in Section 4 of
                                              $100,000) will be submitted as part of
this manual.
                                              the OP budget cycle.
4. MHE
                                                     (2) Budgeting and funding for
   a. General. MHE is defined as all          replacement of in-use MHE that has
self-propelled equipment normally used        reached or exceeded its economic age
in storage and handling operations in         is the responsibility of NICP. These
and around warehouses, industrial             requirements are submitted to NICP
plants, airfields, or depots, such as         through submission of the MHE Annual
forklift trucks, warehouse tractors,          Report as described in NAVSUP
platform trucks, and pallet trucks.           10490.33 series.
NAVSUP 10490.33 series provides
                                              5. Leased Equipment
specific instructions for initiation of
requirements for initial or replacement         a.   According to FAR Subpart 7.4,
3-10                                                                    22 Oct 98
NAVMED P-5132                                         ACQUISITION OF EQUIPMENT

Equipment Lease or Purchase, several           However, DoD is permitted to enter
factors should be considered when              leasing agreements for real and
planning     for   the    acquisition     of   personal property for 12 months
medical/dental equipment.           These      beginning at any time within the FY as
considerations include, but are not            specified in 10 U.S.C. 2410a.
limited to, comparative costs (including
                                                  d. Several alternative types of
operation     and    maintenance)       for
                                               leasing agreements can be negotiated
equipment leasing -vs.- purchase, the
                                               which affect the manner in which the
length of time the equipment will be
                                               acquisition is funded. NAVCOMPT
used, potential obsolescence of the
                                               Manual, Volume 7, Chapter 5 discusses
equipment       due    to    technological
                                               lease agreements.
innovations, the availability of purchase
options,         and         serviceability.           (1) "Straight" Leases.        A
Requirements for leasing/lease renewal         straight lease is an agreement, which
must include an economic analysis              simply conveys the right to use property
comparing the cost of leasing to that of       for 12 months or less. Payments made
purchasing.                                    for a straight lease are operating costs
                                               and are expense (O&M) funded,
   b. Requirements       to     lease
                                               regardless of the amount.
equipment     costing   more     than
$1,000,000 will be submitted as a
high-cost package and must be
approved by the Surgeon General. The
Surgeon General, however, must obtain
                                                       (2)       "Lease-to-Ownership"
                                               Agreements. In a lease-to-ownership
the concurrence of the TRICARE Lead            agreement, ownership or title to the
Agent for the initial purchase of              property will automatically pass to the
equipment in whose region the                  Government upon completion of a
equipment will be located, prior to lease      specified           lease        period.
as described in HA Policy Letter 97-051        Lease-to-ownership agreements are
Activities must maintain a separate            funded by available expense (O&M)
current inventory of leased equipment          appropriations. This type of agreement
regardless of the cost of the equipment.       involves specific restrictions, which
Activities must comply with reporting          include the following:
requirements in Annex 13. Activities will
submit the Annual Inventory of                            (a) Payments made cannot
Leased/Rental Investment Equipment to          exceed those required by a straight
NAVMEDLOGCOM (Code 03) via chain               lease for the same item.
of command annually to arrive by 1 July.                (b) No additional payment can
   c. In general, leases of property to        be made before ownership passes to
the Government are considered to be            the Government.
severable by FY, the result of which is                  (c) The Government must not
that the Government tends to lease to          be obligated for longer than a 12-month
the end of a given FY and then uses a          period; however, renewal rights are
renewal option for subsequent years.
22 Oct 98                                                                         3-11
NAVMED P-5132                                      ACQUISITION OF EQUIPMENT

permitted to be secured          through              (a) Total payment made
exercising multiple options.                under this type of agreement will exceed
                                            those made under a straight lease.
         (3)           "Lease-Purchase"
Agreements.        This type of leasing                (b) Funding must be done in
agreement          is      similar     to   the aggregate; payments may not be
lease-to-ownership agreements in that       split-funded between expense and
the restrictions specified above in 3-      investment funds.
4,5.d.(1) and (2) apply; however, at the
                                                     (c) If the cost of the item is
end of the lease term a purchase option
                                            less than the OP threshold, expense
can be exercised, in which ownership
                                            funds should be obligated; otherwise,
rights pass to the Government upon
                                            investment funds should be used.
completion of payments made under the
purchase option written into the                     (d) Payments made under the
agreement. Payments made under the          terms of equipment leases must be
leasing phase of the agreement are          made in arrears, as specified in 31
expense (O&M) funded.           Payments    U.S.C. 529 prohibition against advance
made under the purchase phase of the        payments.
agreement are expense funded only if
the     total   is    less    than   the
investment/expense funding threshold;
                                            6. Civil Engineering Support
                                            Equipment (CESE)
otherwise, investment (OP) funds are to
be used and must be submitted as an            a. Responsibilities. The program
OP budget item. Payments made as            manager for CESE is BUMED
expense during the lease phase of the       (MED-332). Administration of BUMED's
agreement will remain operating costs       CESE allowances is performed by the
as initially charged, regardless of         Atlantic    or     Pacific    Division,
subsequent ownership/purchase option        NAVFACENGCOM. CESE allowances
decisions.      Once ownership has          will be established and managed in
transferred to the Government, further      accordance with NAVFAC P-300;
payments for the lease phase of the         NAVCOMPT        Manual, Volume       3;
agreement may not be made.                  OPNAVINST         11240.8      series;
                                            BUMEDINST 11240.5 series; and
        (4) "Installment" Purchases.        BUMEDINST 11240.6 series.
While installment purchases are not
leasing agreements, they share some of         b. Technical Assistance.         The
the properties of lease-to-ownership        Transportation Equipment Management
agreements by requiring periodic            Center (TEMC), Atlantic Division,
payments for ownership of property and      LANTNAVFACENGCOM, is responsible
permitting use of the property during the   for providing technical assistance to
term of the agreement. However, some        BUMED        and      BUMED-supported
fundamental dissimilarities to the          activities on all matters pertaining to
leasing      agreements        previously   management         of     transportation
described exist, which are discussed        equipment,     including     allowances,
below.                                      requirements, assignment, replacement,
3-12                                                                       22 Oct 98
NAVMED P-5132                                         ACQUISITION OF EQUIPMENT

disposal, maintenance, and use. The           P-300 and        NAVCOMPT        Manual,
TEMC will review and approve                  Volume 3.
transportation     equipment      Unit
                                                 e. Transportation. Transportation
Authorization Lists (UALs) at BUMED
                                              equipment support for tenant activities
tenant activities where administrative
                                              will be supplied by the host activity on a
transportation equipment support is
                                              reimbursable basis. As an adjunct to
furnished on a reimbursable basis by
                                              fund controls, vehicle and equipment
respective host activities under the
                                              support UALs are established for each
host's allowance.
                                              activity similar to allowance control
   c. Processing Allowances and               procedures.       UALs are reviewed
Requirements Reviews. Pre-printed             annually    with    the   objective     of
CESE requirements review forms are            maintaining vehicle support operating
forwarded to all Medical Department           inventories at the minimum needed to
CESE allowance holding activities on a        provide essential services under normal
biennial basis. General instructions for      conditions. A copy of each approved
completion and submission of the
review are contained in NAVFAC P-300.
                                              UAL (TEMC 11200/1) will be sent by the
                                              TEMC to the cognizant supporting
Other instructions that may be needed         activity and included in their CESE
will be furnished by the TEMC. Changes        allowance review.     Instructions for
to     CESE      administrative     vehicle   preparing    Annual     Transportation
allowances and acquisition of new             Equipment Requirements Review UAL
equipment will be submitted directly to       Form (TEMC 11200/1) is provided in
the TEMC.          Changes to medical         Annex 8.
transport vehicle allowances will be          7. Visual Information (VI) Equipment
submitted to BUMED (MED-332).                 (which includes all AudioVisual (AV) and
Ambulance       allowance     criteria   is   Photographic Equipment)
provided in BUMEDINST 11240.5
series.                                          a. General. Visual Information (VI)
                                              equipment is managed in accordance
   d. Acquisitions. Approved CESE             with the policies and rules set forth in
allowances will be filled by new              the Code of Federal Regulations (CFR)
equipment from the Navy CESE                  Title 41 Public Contracts and Property
procurement program or by usable,             Management        and      implementing
excess equipment authorized by the            Department of Defense (DoD) and
TEMC. CESE must not be acquired               Department of the Navy (DoN)
from any source without prior approval        directives     which      govern      the
of the TEMC. Report all equipment             management of equipment, VI activities,
acquisitions within 15 days after receipt     and VI productions. Collectively, these
on DoD Property Record, DD Form               directives mandate the control and
1342 to the TEMC per NAVFAC P-300,            review of VI equipment, acquisitions and
NAVCOMPT Manual, Volume 3, and                inventories and require a direct
BUMEDINST 11240.6 series.             The     correlation to VI activity missions and
authority, procedures, and limitations for    the VI production process.
leasing CESE are contained in NAVFAC
22 Oct 98                                                                         3-13
NAVMED P-5132                                       ACQUISITION OF EQUIPMENT

   b. VI      Equipment     Categories      and services. The operation of MVISC
Visual Information equipment, within the    activities and functions must be
Navy, is categorized as production or       approved by NSHS, Bethesda, BUMED
non-production (See Definitions) and        (MED-052B) and authorized by CNO
then is further sub-divided and             and DoD. Disestablishment of a MVISC
described below as professional or non-     must be approved by NSHS, Bethesda,
professional.       Visual   Information    and authorized by CNO and DoD.
equipment falls within the Federal             d. MVISC          Responsibilities.
Supply Classes (FSC’s) 58 and 67.           MVISCs provide functional control of all
FSC equipment assignments are based         local VI resources. Each MVISC is
on      the     equipment’s      general    assigned a Defense Visual Information
characteristics   and    use.       Item
management is determined by end use,
which is the equipment’s association or

                                            Activity Number (DVIAN).            MVISC
dedication to a specified purpose, skill,   responsibilities include the following:
or profession.     Within the Federal                (1) VI support services will be
Government,        equipment      which     provided to all local medical
produces displays, presents or is           installations.
integral to the VI production process,
including FSC 70 (ADP) and FSC 36                   (2) Procedures for VI product/
(Printing) when used to produce a VI        production control will be established
product, is defined as VI and within the    and appropriate management records
Navy is managed IAW the OPNAVINST           will be maintained. Records will be
and BUMEDINST 5290.1 series. These          maintained so that workload data, as
instructions do not preclude FSC’s 70       well as product and service costs, are
and 36 VI end use equipment,                available and can be reported as
hardware,      and     software     from    required     by   OPNAVINST        and
compliance with Federal Information         BUMEDINST 5290.1 series.
Resources Management Regulation                      (3) Control will be exercised over
(FIRMR), Federal Acquisition Regulation     VI functions in support of commands
(FAR)      and     General      Services    assigned to the MVISC.              Medical
Administration (GSA) supply schedule        activities in the geographic region,
or Navy Publication and Printing Service    tenant activities, and subordinate
requirements.                               commands assigned to the MVISC will
   c. Management of VI Activities           be operationally responsive to the
Detailed instructions are contained in      MVISC manager for matters relating to
the OPNAVINST and BUMEDINST                 the activity's VI support requirements.
5290.1 series.      BUMED maintains                 (4) Custody of all professional VI
Medical Visual Information Service          equipment and responsibility for its
Centers (MVISCs) that are dedicated to      purchase, inventory reporting, and
the support of local medical and dental     repair will be maintained by the MVISC.
VI requirements. These centers provide      Custody of non-professional user
management of all medical VI resources      equipment with a cost above local
3-14                                                                        22 Oct 98
NAVMED P-5132                                     ACQUISITION OF EQUIPMENT

procurement     thresholds    may   be            (3) Consolidation of VI resource.
transferred by the MVISC to activities
                                            g.    Medical VI Equipment
either     on     a    short-term   or
permanent-loan basis.                             (1) VI equipment is defined as
                                          those items used for the recording,
        (5) Plant and Minor Property
                                          production, reproduction, processing,
inventory documents maintained in
                                          and     exhibition   of    VI   products/
accordance with NAVSUP P-437,
                                          documentation/productions capable of
NAVCOMPT        Manual   Volume  III,
                                          continuing or repetitive use by an
Chapter 6, and shipboard inventory
                                          individual or organization. Also included
control documents maintained in

                                          are items that have a VI function as an
accordance with NAVSUP P-485 must
                                          integral part of a non-VI system or
be annotated to identify VI equipment.
                                          device, and that when permanently
VI activities may continue to maintain
                                          removed can be identified as end-item
separate VI equipment inventories
                                          VI equipment. VI equipment falls within
however, they must comply with
                                          FSC 5800 and 6700.
NAVCOMPT and NAVSUP directives.
                                                 (2) VI equipment can be divided
   e. BioMedical           Photography
                                          into four categories: production, non-
Departments (BPD). All BPDs are
                                          production, professional, and non-
dedicated facilities within the MVISC
                                          professional equipment. VI equipment in
that are responsible to provide medical
                                          these categories must be approved by
documentation.      They may provide
                                          BUMED (MED-05B2) as specified
photographic support for other official
                                          below. These four categories are:
command requirements if such support
does not interfere with the BPD's                    (a)       Production        or
primary     function      of    medical   Professional VI Equipment.         Items
documentation.                            used for the recording, producing,
                                          reproducing, processing, broadcasting,
   f.   Responsibilities      of   User
                                          editing, distribution, exhibiting, and
Activities (Commands) and Activities
                                          storing of VI. Includes professional still,
not having a MVISC. User activities       motion picture, and video cameras;
and activities that do not have a MVISC
                                          editing equipment; audiotape and
are responsible for the following:        cassette       duplicators;    computer
       (1) Designation of a Visual        generated systems (See paragraph (c)
Information Management Point of           below); film and photo paper processing
Contact (VIMPOC) to control and           equipment; photographic printers; etc.
manage     local   VI   resources  in     Production/professional VI equipment is
cooperation with the MVISC, or BUMED      found within FSC's 5820, 5835, 6710,
(MED-05B2).                               6720, 6740, 6760 and 6780.           The
                                          approving      authority    is   BUMED
         (2) Maintenance and operation
of local VI resources.
                                                    (b)     Nonproduction         VI
22 Oct 98                                                                      3-15
NAVMED P-5132                                         ACQUISITION OF EQUIPMENT

Equipment. Items used to maintain,            within FSC's 3610, 4110, 5965, 6625,
repair, store, retrieve, exhibit, or          6630, 6675, 6910, 7025 and 7730. If
otherwise provide for the use of,             used to support VI activity functions and
playback or display of VI products/           authorizations     as      defined      in
productions.    Includes videotape/disc       OPNAVINST and BUMEDINST 5290.1
players and television monitors; slide,       series, the approving authority is
filmstrip, motion picture, overhead,          BUMED (MED-05B2).
opaque and large screen TV/video
projectors (See paragraph (c) below);
                                                         (d) VI items embedded in
                                              non-VI systems.          Items of VI
etc. Nonproduction VI equipment is            equipment that could otherwise be
found in FSC's 5836 and 6730. The             identified as VI equipment but are an
approving authority for procurements          integral part of a non-VI system or
above local approval is BUMED                 device (existing or under development).
(MED-05B2).                                   VI equipment items in this category shall
                                              be managed as a part of that non-VI
           (c) Non-VI equipment with
                                              system or device.
VI applications. Items which do not fall
within the AV Supply Schedules, that                  (e) Naval Medical Research
produce VI products/productions, that         and Development Command (NMRDC)
have an item description which falls          is the approving authority for VI
within the definitions of 7g (2)(a) and (b)   equipment to support Research and
above, and whose end-use supports VI          Development documentation.
activity authorizations and functions as
                                                       (3) VI materiel used by BUMED
defined      in      OPNAVINST         and
                                              activities is available by ordering
BUMEDINST 5290.1 series. Includes
                                              through the Navy's Standard Stock
diazo/ozlaid machines; transparency
                                              System.       Standard Stock VI items
makers; photo typesetting machines;
                                              include equipment and consumables
refrigeration units designed for storage
                                              and are listed by FSC and Commodity
of photo sensitized materiels; headsets,
                                              Manager in the Defense General Supply
microphones and speaker systems;
                                              Center (DGSC) Federal Supply Catalog.
audio/video test/calibration equipment;
                                              They are procured and managed by the
photo/diazo/ozlaid              processing
                                              DGSC, Richmond, VA. Use of the
chemicals; air brushes, lettering sets,
                                              Standard Stock System is mandatory
drafting equipment and drawing tables;
                                              before       proceeding     with   local
video/slide      carrels;     large-screen
projections      systems;      multi-media
programmers; learning lab systems;                   (4) Nonstandard investment
computer assisted interactive video           items of equipment are authorized for
systems; phonograph, radio, and               procurement     when     state-of-the-art
television sets; computer graphics            advancements demand the use of an
systems; graphic cameras and printers;        item that has too low a demand rate to
character generators; photo composition       be placed on standard stock. These
equipment; etc.        Non-VI equipment       items can be requested as follows:
classes with VI applications are found                  (a) Collateral Equipment (CE)
3-16                                                                        22 Oct 98
NAVMED P-5132                                        ACQUISITION OF EQUIPMENT

consists of end items identified through     office automation computer hardware
MILCON or ShipBuilding and Design            and software that do not produce
projects, which must be funded for by        camera-ready-copy, VI productions, or
the designated Central Managers or the
end user.
                                             products for output to photographic
                                             printers, processors, developers, or
           (b) BUMED procures VI             finishers.    This equipment must be
equipment by line item each year under       dedicated to in-house support of
the OP Funding Program. Investment           functions which cannot be satisfied by
equipment with an acquisition cost that      local VI activities and whose end
meets or exceeds the OP threshold            product is of short duration (training,
(currently $100,000) per line item will be   role-playing, etc.).
submitted in accordance with paragraph                 (5) BUMED (MED-05B2) will
3-5,1.                                       prepare       and  publish   Equipment
           (c) Activities wishing to         Allowance Lists (EALs) of VI equipment
procure     VI   equipment    with    an     and materiel for MVISC authorized by
acquisition cost below the OP threshold      the CNO as well as for MTFs/DTFs not
must provide local funding. However, all     authorized as MVISCs. Requests for
VI equipment purchase requests, except       changes to allowance lists for medical
as noted in (4)(d) below, must be            facilities must be submitted to BUMED
submitted (for technical review and          (MED-05B2) and forwarded to CNO
approval) to BUMED (MED-05B2) for            (N09C4)        for approval    as  per
procurement authorization. Requests          OPNAVINST 5290.1 series.
for VI equipment will be made using the              (6) VI equipment must be
format shown in OPNAVINST and                accounted for by the MVISC/VIMPOC
BUMEDINST 5290.1 series and will             and is centrally controlled by HSETC.
include a statement indicating total         OPNAVINST and BUMEDINST 5290.1
dollar amount obligated to date during       series contain a listing (not all-inclusive)
the FY for VI equipment and supplies.        of the equipment that must be properly
           (d) Navy activities and           accounted for, and instructions for
personnel may locally approve, acquire       reporting.
and use specific non-professional                   (7) Surveys of VI equipment will
consumer VI equipment such as 35mm           be conducted in accordance with the
based photographic camera systems            NAVCOMPT       Manual, Volume        3,
costing less than $1,000; projection         Chapter 6, and NAVSUP P-485.
equipment, audio/video recorder/players      Reports of M-L-S-R VI equipment will be
costing less than $5,000; video cameras      prepared and submitted in accordance
and camera-recorder (CAMCORDER)              with SECNAVINST 5500.4 series. One
systems costing less than $5,000; digital    copy of the line item survey action or
photographic cameras costing less than       M-L-S-R report will be forwarded to
$5,000; digital photographic printers        BUMED (MED-05B2).
costing less than $10,000; video and
video CRT(LCD/LED) projectors and                   (8) Each MVISC maintains an
systems costing less than $10,000 and        inventory of VI equipment for temporary
22 Oct 98                                                                       3-17
NAVMED P-5132                                       ACQUISITION OF EQUIPMENT

                                                       (b) Responsibilities
loan purposes.  Loan of user VI                Commands will ensure accuracy of
equipment is on a nonreimbursable               all CIP financial documents and
basis.                                          reports   forwarded   to   NSHS
        (9) VI equipment transfer will be       Bethesda (Code 63).
controlled by BUMED (MED-05B2).                The     CIP      director  at     each
      (10) Further information on VI            multi-disciplinary teaching facility is
equipment is provided as follows:               responsible for review and approval
                                                as    appropriate      of  all    fund
         (a) Reports of obsolete or             expenditures that support the CIP.
excess VI equipment will be made in
accordance with OPNAVINST and                  The Scientific Review Committee
BUMEDINST 5290.1 series.                        (SRC),      established    at   each
                                                multi-disciplinary teaching facility
          (b) Maintenance and repair of         having      a    CIP,   reviews    all
VI equipment is addressed in Section 10         investigation proposals for scientific
of this manual.                                 merit, to include budget submissions
          (c) Planned maintenance               (O&M and OP fund requests), and
subsystems program for all VI                   investigational drugs, devices, or
equipment will be developed in                  biologics to be used.
accordance with OPNAVINST 4790.4               The Laboratory Animal Care and
series and OPNAV 4302 series.                   Use        Committee        (LACUC),
         (d) Precious metal recovery is         established at each facility intending
addressed in BUMEDINST 4010.3                   to use laboratory animals for
series.                                         research, reviews animal use
                                                protocols to ensure that facilities and
      (11) Information Systems (IS)             equipment are adequate for the
Equipment. Refer to Section 4 of this           research to be conducted. Activity
manual.                                         Commanding Officers must approve
      (12) Clinical Investigation               protocols prior to forwarding to
Program (CIP) Equipment                         BUMED (MED-26).
          (a) General. Management of
the CIP is discussed in detail in
NSHSBETHINST           6000.41A).   This
paragraph discusses the aspects of
responsibilities for the program as they
pertain to the acquisition of equipment.
Funding is discussed in paragraph 3-

3-18                                                                        22 Oct 98
NAVMED P-5132                                     ACQUISITION OF EQUIPMENT

                                          (ECN).    Each OP equipment item
3-5                                       budgeted will be assigned an ECN.
Budgeting & Funding for                           (1) The ECN will be preceded by
Medical/Dental Equipment                  the end user's activity Unit Identification
                                          Code (UIC). The ECN is a six digit
                                          number, the first two of which are the
1. Equipment Funded by the OP             last two digits of the FY in which the
Appropriation. Equipment or systems       item is first budgeted. The third and
to be funded by the OP appropriation      fourth digits will be "IH" for NAVOSH
are detailed in paragraph 3-3,2.          equipment and "IT" for FIP equipment.
  a. The following types of               The last two digits can be any
equipment are exceptions as noted         combination of letters and numbers.
below:                                    For other medical equipment the last
                                          four digits of the ECN can be any
   CE requirements. See Section 5 of     combination of letters and numbers
    this manual.                          other than those identified above.
   RDT&E equipment.                             (2) The ECN will be unique and
   Vehicular equipment (defined as       cannot be duplicated.
    CESE) funded by                               (3) The ECN will not be changed
    COMNAVFACENGCOM.                      from year-to-year even though the
    Requirements will be submitted to     particular    equipment    item    goes
    BUMED (MED-332) following             unfunded.
    paragraph 3-4,6.
                                                  (4) An example of an ECN for
   MHE as defined in paragraph 3-4,4a    the Naval Branch Medical Clinic, Naval
    funded by Commanding Officer,         Station,    Norfolk,   VA       might    be
    NICP, Mechanicsburg, PA               32510-920001. "32510" is the end user
    (replacement equipment), or by        UIC for the Naval Branch Medical Clinic.
    BUMED for the initial purchase. See    "92" is the FY in which the particular
    paragraph 3-5,4.                      equipment item was first budgeted, and
                                          "0001" are four numbers assigned this
   Morale, Welfare, and Recreation
                                          item to uniquely identify it from all other
    (MWR) equipment funded by
                                          ECNs budgeted.
    BUPERS. See paragraph 3-5,5.
                                             c. Shore Activities under the
                                          Management Control of BUMED.
                                          Such activities shall prepare and submit
                                          investment equipment budgets following
                                          guidance      published    annually  by

                                               (1) MTFs/DTFs            submit to
  b. Equipment       Control   Number     NAVMEDLOGCOM via              appropriate
22 Oct 98                                                                     3-19
NAVMED P-5132                                     ACQUISITION OF EQUIPMENT

HSO.                                      requirements. Only the most current unit
                                          price should be used in preparing the
       (2) The following activities
                                          "POM Year" input. This budget should
submit directly to NAVMEDLOGCOM:
    NMCs San Diego and Portsmouth            Replacement items: all items in the
    NAVOPHTHALSUPPTRACT                       investment equipment inventory that
    NAVMEDINFOMGMTCEN                         will have reached the end of their
    NAVOPMEDINST                              useful life by the end of the FY in
    NSHS Bethesda                             which the budget is executed.
    Hospital Corps School, Great Lakes.      New items: items required as a result
        (3) NSHS San Diego, NSHS              of increased requirements or new
Portsmouth, and NAVENVIRHLTHCEN               mission requirements, or required
shall consolidate budget submissions of       due to significant changes in
detachments and subordinate activities        technology which render existing
and submit to NAVMEDLOGCOM.                   items obsolete.

   d. Budget Submission.            For      Shared Procurement items: items
investment      equipment        budget       with an acquisition cost that meets or
submissions the following terms apply:        exceeds the OP threshold (currently
                                              $100,000) must be included.
   Current Year: Year in execution
    (e.g., FY-98).                                (2) An "Apportionment Year"
                                          budget update will be prepared annually
   Apportionment Year: Current year      by each activity and forwarded to
    plus 1 year (e.g., FY-99).            NAVMEDLOGCOM (negative reports
   Budget Year: Current year plus 2      required). See paragraphs 3-5,1(c) and
    years (e.g., FY-00).                  1(e)(2). This budget is an update of
                                          previous budget requirements submitted
   POM Year: Current year plus 3 years   to NAVMEDLOGCOM which were used
    (e.g., FY-01).                        to develop the POM. The update allows
        (1) Prepare a "POM Year"          for a rollover of unfunded current-year
budget annually by each activity and      items, if still required. Also, items may
forward to NAVMEDLOGCOM (negative         be deleted, essential emergent items
reports required). (See paragraph 3-      may be moved forward from another
5,1.e.(1)). The requirements stated in    budgeted year, new items may be
this   budget    will    be     used by   added, and priorities may be reordered.
NAVMEDLOGCOM to prepare the               Unfunded items carried over and items
BUMED POM. This input is the first        moved forward must bear the original
opportunity an activity will have to      ECN. New items added must be

                                          assigned new ECNs with the first two
                                          digits coinciding with the FY of the
identify equipment needs. Therefore, it   budget submission. The unit price must
is of the utmost importance that every    be     updated    in   preparing    the
attempt be made to identify total         "Apportionment Year" input.
3-20                                                                   22 Oct 98
NAVMED P-5132                                        ACQUISITION OF EQUIPMENT

    e.   Budget Preparation                     "R" - specialty leader recommends
       (1) For the "POM Year"                    the purchase of a make/model other
submission, the instructions in Annex 10         than the one requested (this is not
should be followed for each item of              an authorization for a sole source).
investment equipment requested.                 "X" - disapproved; can be
         (2) For the "Apportionment Year"        resubmitted for another review after
submission, Annex 4 and Annex 10 of              responding to the comments of the
this manual must be completed and                specialty leader.
submitted to NAVMEDLOGCOM for                2. Equipment Funded by the O&M
each item of investment equipment            Appropriation. Equipment or systems
requested. Original and one copy of          to be funded by the O&M appropriation
Annex 4 and all attachments are              are detailed in paragraph 3-3,2.d.(2).
required for submission. Echelon 3
                                                a. Budgeting      instructions for
submissions for the Apportionment Year
                                             equipment funded from the O&M
will be in accordance with paragraph 3-5
                                             appropriation are published by BUMED
1d(2). Annex 11 lists the appropriate
                                             (MED-01) in annual budget calls.
department/division codes to be used in
submissions.                                     b. In the past, minor equipment
                                             consisted only of low-cost items, and
    f.  Item Status List.          After
                                             use of an activity's operating funds to
technical reviews are completed, a
                                             satisfy most requirements posed no
listing will be provided indicating the
                                             special    problem.      With    recent
status of each item. The guidelines for
                                             escalations in the OP threshold, and
interpreting the Budget Status Codes
                                             anticipated future increases in the
(BSCs) are as follows:
                                             present threshold, proper planning and
   "A" - procurement action has been        accurate budgeting is essential.
                                                Budget submissions should consider
   "C" - canceled at request of activity.       minor equipment requirements for
                                                 replacement items and new program
   "D" - deferred at request of activity,
    provide year deferred.
                                                Accurate accounting methods and
   "F" - funded with previous years'
                                                 monitoring of life expectancy will
                                                 provide valuable assistance in the
   "J" - technically reviewed and               timely identification of requirements.
    approved by specialty leader.

                                             BMED/DED input based on repair
   "L" - approved at command level.         history, downtime, and projected
                                             variance in life expectancy will be
   "M" - required additional information
                                             considered in preparation for budget
    for the specialty leader.
   "N" - new item not yet technically
                                             3. RDT&E Equipment. Investment
    reviewed by the specialty leader.
                                             procurement under R&D program
22 Oct 98                                                                         3-21
NAVMED P-5132                                          ACQUISITION OF EQUIPMENT

appropriations will follow current R&D         Medical Department personnel will not
equipment procurement guidelines.              initiate requests for gifts. The CIP is a
                                               specially funded program authorized by
4. MHE. BUMED is responsible for
                                               DoD Directive 6000.8, with O&M and
budgeting and funding for initial MHE
                                               OP funds provided through BUMED, to
requirements in support of new or
                                               support the Clinical Investigation
increased     mission      responsibilities.
                                               Departments (CIDs).
Budgeting and funding for replacement
of in-use MHE that has reached or                 a. O&M.         Recommendations for
exceeded its economic age is the               O&M funding levels are determined by
responsibility of NICP. Requests for           NSHS Bethesda (Code 63), based on
new or increased MHE allowances are            supporting justification provided by the
submitted      through      BUMED        via   principal investigators. Justification may
NAVMEDLOGCOM, if the item's cost               include progress and expenditure
meets or exceeds the OP threshold              reports; abstracts, publications, and
(currently $100,000), for recommenda-          presentations; and cost analyses. The
tion of approval or disapproval to NICP.       CIP director coordinates with the
Replacement         requirements         are   comptroller to estimate target spending
submitted to NICP by the MHE Annual            levels within allocated resources.
Report. Requirements will be submitted
                                                  b. OP. Requests for OP equip-
following NAVSUP 10490.33 series and
                                               ment to support CIP should be prepared
paragraph 3-4,4.a. through c.
                                               and submitted in accordance with
5. MWR Equipment. MWR equipment                paragraph 3-5,1.         The complete
is funded by BUPERS, and should not            justification should be forwarded to
be procured using O&M or OP funds.             NSHS Bethesda (code 63) 1 March
The MWR/BQ program is administered             annually. Only items that are unique to
following NAVMEDCOMINST 1710.1                 the conduct of clinical investigation will
series.      NAVMEDCOMINST 5430.1              be considered.       Upon review and
series designates the Head, Regional           determination by NSHS Bethesda
Operations Branch, BUMED (MED-312)             (Code 63) and BUMED, notification will
as the BUMED MWR/BQ Program                    be forwarded to the command. All
Administrator responsible for providing        equipment requirements that are
guidance and advice to activities for the      considered to be standard hospital
administration of the program. For initial
outfitting of BQs, refer to Section 5 of
this manual.                                   equipment or replacement items should
                                               be submitted for approval/procurement
6. CIP Equipment. Management of                using the command budget and
CIP is discussed in detail in                  procurement process.
NSHSBETHINST 6000.41A. Funding
authority for equipment in the CIP will
be obtained following the detailed
instructions in the NSHSBETHINST               3-6
6000.41A. Information pertaining to
approval of equipment requirements is          Ordering and Receiving
discussed in paragraph 3-5,1. Navy
3-22                                                                          22 Oct 98
NAVMED P-5132                                          ACQUISITION OF EQUIPMENT

1. General                                              (2) Exactly WHAT is needed?
                                               Requisitions      must     clearly   state
    a. Initiation     of    Requisitions.
                                               requirements. Standard stock number
Upon availability of funds and after
                                               or specific make and model information
satisfying all requirements for budgeting
                                               for three sources should be provided
review and approval procedures,
                                               when possible. The best value item
requiring departments will initiate
                                               which will satisfy the need will be
requisitions for approved equipment. It
                                               selected. Vendor information (name,
is important that requisitions are initiated
                                               address, and phone number) should be
by the user for the following reasons:
                                               provided when available. This will help
         (1) In accordance with governing      expedite processing of the requisition.
acquisition regulations, requirements          All attachments and accessories
must be identified and requests must be        required for the equipment to function
initiated by the customer.        This is      as intended will be included on
normally an item of interest during the        requisitions for equipment. Review and
Procurement       Management      Review       modification by the BMED/ DED will be
(PMR) conducted by the supporting              obtained       to    ensure       complete
FISC or Naval Regional Contracting             compatibility,       reliability,     and
Center (NAVREGCONTCEN).                        maintainability of the item being
        (2) Only the using department          requested.        When applicable and
can ensure that specific requirements          possible, turnkey operations should be
will be fully satisfied by the equipment       requested.
item being ordered.                                   (3) WHEN is the equipment
       (3) Since the using department          needed? This question is answered in
has the need, the using department             the form of a priority designator (3 -
must also provide justification.               Emergency, 6 - High priority, or 13 -
                                               Routine) for standard stock items or a
   b. Description of Requirement.              required delivery date (RDD) for open
The requesting department must clearly         purchase items.
indicate  WHO,      WHAT,     WHEN,
                                                          (a) The mechanism for
                                               assigning the correct priority to a
         (1) WHO is initiating the             requisition or procurement request is
requisition? Normally, the department's        fully described in OPNAVINST 4614.1F
requisition will be signed by the              series,     which   establishes Navy
department head or chief of service.           implementation of the Uniform Materiel
Any person other than the senior               Movement and Issue Priority System
member of a department who signs               (UMMIPS) within DoD.
equipment      requisitions   for    the
department must have obtained this                        (b) UMMIPS provides a basis
authority from the department's senior         for expressing the rankings of
member. This will preclude acquisition         requisitions and procurement requests
of equipment which is not best suited to       by use of the priority designator code.
satisfy the needs of a department.             UMMIPS will be used in preparing
                                               requisitions and procurement requests
22 Oct 98                                                                         3-23
NAVMED P-5132                                          ACQUISITION OF EQUIPMENT

for items under the management of the          provided as discussed in paragraph 3-
Military Services, Defense Agencies,           4,1c.      All requisitions must include
and GSA.                                       certification that equivalent sharable and
                                               idle equipment is not available in-house.
          (c) Requisitions with a priority
                                                Full justification must also be provided
designator higher than 13 - Routine
                                               for items requested from a sole source.
must include adequate justification for
                                               Personal preference or additional
the requested urgency.
                                               capabilities which are not required to
         (d) Abuse of the priority             fulfill the identified need are not
system and unrealistic RDDs cause              acceptable justifications.      The sole
backlogs   which   adversely   affect          source       justification must     clearly
response to all needs.     Urgent or           demonstrate that no other item is
emergency requests must be approved            available which can satisfy the
by the Commanding Officer.                     requestor's requirements.       Annex 12
        (4) WHERE will the requested           contains a sample form for a Sole
item of equipment be used? Although            Source Justification for materiel less
the requesting department indicates            than $25,000 and an example of a
which department has identified the            Justification for Other Than Full and
need and initiated the requisition, chiefs     Open Competition which is required for
of services and department heads are           materiel $25,000 and above.
frequently responsible for numerous              c.    Turnkey Procurement
treatment areas and spaces.           The
                                                       (1) Turnkey programs must be
answer to this question will identify
                                               carefully considered during acquisition
specifically in which patient care area or
                                               planning.    Turnkey systems include
space the requested equipment will be
                                               purchase of the equipment, room
located. This information is required for
accountability purposes and to ensure
                                               preparation, installation, and related
                                               costs (e.g., service or maintenance).
that adequate space, utilities, and room
                                               These systems are appropriate to
preparations are provided.
                                               consider     for    large    equipment
         (5) WHY is this equipment             acquisitions such as specialized or
needed? This is the justification portion      expensive medical/laboratory equipment
of the requisition. Requirements for           (e.g., MRI system).
justification will vary with the item being
                                                       (2) Turnkey procurements are
requested. Justification for low cost
                                               done by DSCP. All turnkey requests
minor equipment items need only
                                               should be addressed to the DSCP
demonstrate the reason that the need
                                               Project Officer (DSCP-MX).
exists, while more expensive and
complex equipment items or systems,            Funds may be provided on a DD 448
as addressed under paragraphs 3-3 and          (MIPR), or by using a standard
3-4,       require      more       extensive   requisition, DD Form 1348-6.
justifications.    If an exemption from
                                                Complete MILSTRIP data must be
Shared        Procurement       is     being
                                                 provided with all funds. All
requested, full justification must be
3-24                                                                           22 Oct 98
NAVMED P-5132                                         ACQUISITION OF EQUIPMENT

   requisitions must be coded "6525TK"        requires the equipment manufacturer to
   in card columns 8-13 of the                interface their equipment to the existing
   MILSTRIP line to identify the              room and utilities. Extended installation
   requisition as a turnkey project and       is discussed in Annex 15.
   ensure accurate billing.
                                                      (1)     Extended     Installation
 DSCP will not accept turnkey project        commonly applies to replacement of
  funds on a direct citation basis, and       Cardiac      Catheterization   Systems,
  all MIPRs will be treated as                Special Procedures Systems, and in
  reimbursables. DSCP will provide            certain    cases,   Radiographic and
  an Acceptance Form (DD 448-2)               Fluoroscopic Systems.
  within 10 working days of receipt.                   (2) A request for Extended
         (3) A surcharge is imposed on        Installation should be noted on the
all turnkey projects. The surcharge is        requisition sent to DSCP.
applied to the total cost of equipment                 (3) CAUTION:            Extended
only. While turnkey projects had not          Installation is limited to support and
previously been subject to a surcharge,       utilities required for the new system.
the requesting command was tasked             Cosmetic work such as replacing floor
with providing O&M funds for all DSCP         or ceiling tile, new lighting, and painting
and clinical consultant travel in             will NOT be included. Such costs must
connection with the project.       With       be funded from the operating budget of
surcharge implementation, DSCP will           the receiving facility.
now fund all travel costs for DSCP
personnel and for the appropriate
clinical consultants required to support
the acquisition.
                                              2. Requisitions
        (4) Careful acquisition planning
by the end user is imperative, as turnkey         a. Requisitioning      Procedures.
programs require source selection,            Local requisitioning procedures will be
which includes evaluation of cost,            followed when initiating requests for
pricing, and technical specifications, at a   equipment items, both standard stock
minimum. TAD of the acquisition team          and open purchase.
is mandatory, and involvement of the             b. Required Data. For standard
acquisition team as intermediary              stock requisitions, especially where
between DSCP and the end user is              MILSTRIP documents (i.e., DD-1348,
often necessary.                              DD-1348-6, message requisition) are
       (5) NAVMEDLOGCOM (Code                 actually initiated by the requestor, an
03) represents Navy Medicine to the           awareness of certain fields and their
Turnkey Acquisition Program. Program          impact will help ensure that desired
changes, revisions, and updates will be       results are obtained. Specific codes will
published in the NMDMB as required.           be entered by the supporting supply
  d. Extended Installation. Another
option available through DSCP is                    (1) M&S Code, card column 7 on
Extended Installation. This approach          the DD-1348, provides a means of

22 Oct 98                                                                          3-25
NAVMED P-5132                                         ACQUISITION OF EQUIPMENT

identifying what type of status is desired    code which is used to pass a message,
(Exception Status, 100 percent Supply         such as "Do not substitute or
Status, Exception Status and Shipment         interchange" or "Do not back order," to
Status, or 100 percent Supply Status          the supply source. Although most of the
and Shipment Status), the media by            codes are more appropriate for use in
which status will be sent (DSN or mail),      requisitions for consumables, some may
and to whom the status will be sent           be beneficial for use in requests for
(requisitioner     or      supplementary      equipment.       The supporting supply
addressee).                                   department has a list of available advice
                                              codes and their use.
         (2) The stock number, card
columns 8-22, is a critical element in          c. Commercial Purchases (Open
ensuring that the right item is on order.     Purchase)
An error in the stock number,
                                                       (1) Use of purchase orders for
particularly in the NIIN, columns 12-22,
                                              the procurement of equipment from the
will result in receipt of the wrong item.
                                              commercial market should only be
         (3) The quantity, card columns       considered when a suitable item cannot
25-29, must be properly indicated. The        be obtained through Federal Excess
significant number (quantity desired)         listings, standard stock, or Federal
must be preceded by zeros.            For     Supply Schedules.
example, if one is the desired quantity, it
should be indicated as 00001 (with the

                                                      (2)   Requisitions   for    open
significant number, 1, in column 29). If
                                              purchase equipment initiated by the
the number 1 were placed in column 25,
                                              customer     will   be    submitted    in
it would result in either cancellation of
                                              accordance with local procedures.
the requisition, receipt of 10,000 of the
                                              Although different forms are currently
item, or a partial fill of the "10,000"
                                              used as requisitions (e.g., DD 1348-6,
requested. This example is extreme,
                                              DD 1149, local forms), the WHO,
but is intended to emphasize a point.
                                              WHAT, WHEN, WHERE, and WHY
         (4) The priority designator, card    questions as discussed in paragraph 3-
columns 60-61, provides a means of            6,1.b. must be satisfied.
identifying the urgency of need for a
                                                       (3)     Governing      acquisition
requested item. The priority designator
                                              regulations prohibit purchases based
is not to be abused, but if normal time
                                              strictly    on    personal     preference.
frames would prove detrimental to
                                              Competition, small business set-asides,
patients or mission, a high priority
                                              Buy American Act, sole source
requisition is one means of expediting
                                              justification, and other requirements set
handling of the requisition and shipment
                                              forth by the FAR and FAR supplements
of the item.
                                              must be strictly adhered to when
       (5) The advice code, columns           applicable.
65-66, is a two position alphanumeric
                                                d.    Procurement Support
3-26                                                                          22 Oct 98
NAVMED P-5132                                            ACQUISITION OF EQUIPMENT

Provided by NAVMEDLOGCOM                            b. Status         of      Commercial
                                                 Purchases.            For      commercial
         (1) Under certain circumstances,
                                                 purchases, any correspondence which
NAVMEDLOGCOM              will    perform
                                                 affects the status of an order should be
procurement actions on behalf of
                                                 made       known    to    the     requiring
specific     commands        or   specific
                                                 department in a timely fashion. When
programs. In this event, the requesting
                                                 orders are not received within the
activity must furnish specifications for
                                                 expected      time    frame     and      no
the required item.          An Essential
                                                 correspondence has been received from
Characteristics Worksheet, Annex 14,
                                                 the vendor, a letter should be sent by
must be completed and forwarded to
                                                 the supporting supply department
                                                 requesting the status of the order. If
        (2) For medical diagnostic               urgency does not allow the time
radiographic systems, a complete                 required for follow-ups by mail, a phone
Customer Order List (COL) must be                call will be made in an effort to expedite
provided in lieu of the above.    If             shipment.       A "tickler file" will be
submitting the COL, the Facilities               established by the supporting supply
Survey Report must be completed by               department to ensure timely follow-ups.
the appropriate personnel. Annex 15
provides the COL to be used.

                                                 4. Receiving Procedures
3. Requisition Status and Followup
                                                     a. Standard Stock Receiving.
   a. Status           of        MILSTRIP
                                                 Receiving procedures for standard stock
Requisitions. The status of standard
                                                 and open purchase equipment items are
stock    (MILSTRIP)        requisitions     is
                                                 generally the same.            Receiving
provided in accordance with the M&S
                                                 personnel are responsible for matching
code used on the document submitted
                                                 the requisitions/purchase orders with the
to the supply source (see paragraph 3-
                                                 shipping documents and packing slips
6,2.b.(1).    This status should be
                                                 to ensure that the delivered item was
provided to the requesting department
                                                 ordered by the receiving activity.
for information purposes. If the item
                                                 Receiving personnel will also check the
has not been received within expected
                                                 physical item delivered to ascertain that
time frames (based on priority used)
                                                 the right quantity of the right item was
and the status is unknown, follow-up
                                                 delivered with no apparent signs of
procedures       utilizing       MILSTRIP
                                                 damage. Document distribution will be
documents should be instituted in
                                                 initiated, in accordance with local
accordance              with              the
                                                 procedures, for purposes of receipt
MILSTRIP/MILSTRAP                 Operating
                                                 control,     financial   and      property
Procedures Manual (NAVSUP P-437).
                                                 accounting, and customer notification.
The supporting supply department is
responsible    for     follow-up      action.      b. Equipment               Inspection.
Upgrading the priority is an option when         BMETs/DETs will inspect equipment as
time frames become critical.                     soon as possible after receipt for proper
22 Oct 98                                                                             3-27
NAVMED P-5132                                        ACQUISITION OF EQUIPMENT

and safe operation, compatibility with       Shared Procurement Program has been
existing utilities and systems, and to       expanded to include DVA and DHHS.
ensure        receipt      of     required   NAVMEDLOGCOM            (Code        03)
documentation (schematic diagrams,           represents Navy Medicine to the Shared
wiring diagrams, parts lists, and            Procurement Program for medical and
operator's manuals). Installation will be    dental equipment. Program changes,
scheduled at this time, if required.         revisions, and updates will be published
                                             in the NMDMB as required.
   c. Accounting       and    Tagging.
Following     BMET/DET       inspection        d.   Procedures.
procedures, property accounting records
                                                     (1) Orders for certain Shared
and tagging will be accomplished in
                                             Procurement items must be placed with
accordance with this manual and local
                                             DSCP since they are the only ordering
                                             office specified in the contract. Shared
5. Special Considerations for Shared         Procurement orders are placed with
Procurement Program                          DSCP using DD 1348-6 and the
                                             required Customer Order List (COL).
   a. Purpose. The purpose of this
section is to provide instructions on
requisitioning equipment in the Shared              (2) Orders for certain Shared
Procurement Program.                         Procurement items may be placed with
   b. Scope.            The  Shared          NAVMEDLOGCOM since they are
Procurement Program for medical and          included as an ordering office specified
dental equipment is discussed in             in the contract. Shared Procurement
paragraph 3-4,1. Shared Procurement          orders      are       placed       with
equipment contracts are mandatory for        NAVMEDLOGCOM using a Request for
DoD. Activities may not procure the          Contractual Procurement (NAVCOMPT
same general type or family of               2276) and the required COL.
equipment     as   that   on Shared                 (3)    Procedures for ordering
Procurement without a formal waiver          Shared Procurement items from either
from NAVMEDLOGCOM. A discussion              DSCP or NAVMEDLOGCOM are
of the waiver process and the                contained in Annex 16.
procedures for requesting a waiver
appear in paragraph 3-4,1.c.                    e. Customer Order List (COL). A
                                             COL for each equipment item in the
   c. Background. In 1984, the GAO           Shared Procurement Program has been
conducted an audit of the medical            designed by Army, Navy, and Air Force
equipment programs of the Army, Navy,        Shared Procurement representatives.
and Air Force and concluded that             The COL consists of a brief description
savings     could    be     gained    by     of the item followed by several blocks to
consolidating the acquisition of medical     be completed by the requisitioner. As
equipment for the three Services. In the     new contracts are awarded, Shared
FY 1985 Defense Appropriation Act,           Procurement COLs will be developed
Congress required DoD to submit a plan       and published in the NMDMB.
for centralizing the acquisition of
medical equipment.        The resulting        f.   Contract      Status.    Contract

3-28                                                                        22 Oct 98
NAVMED P-5132                               ACQUISITION OF EQUIPMENT

Status on all Shared Procurement will
be published monthly in the NMDMB. If
more immediate status is required,
NAVMEDLOGCOM should be con-
tacted. No attempts should be made to
obtain status directly from DSCP.
  g. Warranty.              All   Shared
Procurement contracts include an
on-site warranty. Individual contracts
should be consulted to determine
warranty provisions.        An extended
warranty is not available through Shared

    h. Manuals. Two copies of service
and operator's manuals are specified in
all Shared Procurement contracts.
   i.  Shipment.          Shipments to
CONUS activities will be sent directly
from the vendor.          Shipments to
OCONUS requisitioners will be sent via
NAVMTO freight agents on either the
east or West Coast. Commercial air
transportation is not authorized.
  j.   Exemptions       from    Shared
Procurement.          Information   on
exemptions from shared procurement is
contained in paragraph 3-4,1.c.
   k. Form. DD 1348-6 (2-85), Single
Line     Item    Requisition     System
Document, NSN 0102-LF-013-2273, is
available from Cog 1I stock points of the
Navy Supply System, and can be
ordered per NAVSUP P-2002.

22 Oct 98                                                       3-29

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