scope:

a. This regulation establishes and implements policy governing acquisitions made with nonappropriated funds (NAF) within the Department of the Army (DA). Department of Defense (DOD) policy regarding the execution of NAF procurement is set forth in DOD Directive (DODD) 4105.67 and DOD Instruction (DODI) 4105.71.

b. The goal of the NAF procurement system is to obtain quality supplies, services, and construction in an efficient, cost-effective, and timely manner. The NAF procurement system enables contracting officials to exercise innovative and creative processes while providing policy and guidance for executing contracts and ensuring that the right contractor for the requirement is selected. When obligating NAF, contracting officials (both NAF and appropriated fund (APF)) shall follow the NAF policy and guidance contained herein and, based on prudent discretion and sound business judgment, may employ other appropriate acquisition procedures that do not violate applicable laws, statutes, or regulations.

Applicability. This regulation applies to U.S. Army nonappropriated fund contracting activities. It does not apply to Army and Air Force Exchange Service, the U.S. Army Reserve, the Army National Guard, Chaplain's Nonappropriated Funds, the U. S. Army NAF Employee Retirement Plan Trust, the U.S. Army NAF Employee 401(k) Savings Plan Trust, or the Army Banking and Investment Fund (investment contracts only).