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A procurement instrument that has been awarded to an external supplier and is a mutually binding legal relationship obligating the supplier to furnish the goods or services (including construction) that can be invoiced, and the buyer to provide payment for those goods and services as agreed upon by the procurement instrument. The awarded procurement instrument may contain the original or modified procurement instrument that has been mutually agreed upon between the buyer and supplier. It includes all types of actions that obligate the DoD to an expenditure of funds and that, except as otherwise authorized, are in writing. In addition to bilateral instruments, procurement instruments include, but are not limited to, awards and notices of awards; job orders or task letters issued under basic ordering agreements; letter contracts; and orders, such as purchase orders, under which the contract becomes effective by written acceptance or performance. Procurement Instruments could include Fixed-price, Cost-reimbursement, Incentive, Cooperative Agreements, Other Transactions, Indefinite-Delivery type orders, order against Basic Agreements, Basic Ordering Agreements and Federal Supply Schedules. A procurement instrument may be funded or unfunded and does not necessarily create an obligation of funds (an example of no funding would be a basic ordering agreement or a contract modification changing the period of performance). |
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