A Military Interdepartmental Purchase Request (MIPR) is used when one department within the DoD (or any non-DoD department) requests for goods or services that can be provided by another site / department (through an existing contract, for example). The MIPR provides funding information and a description of the goods and services required. The MIPR is created by the requesting agency, it is generated on the DD-448 standard form and send to the assisting agency.
When the MIPR is received, the assisting agency must formally accept or reject MIPR by completing DD448-2 form, Acceptance of MIPR form. Primarily the Acceptance of MIPR form has funding information, Reimbursement Order (Category I) or Direct Citation (Category II) based on which receiving/invoicing/payment processes are determined. The MIPR acceptance form is sent to the requesting agency.
The assisting agency determines whether to use the Reimbursement Order (Category I) or the Direct Citation (Category II) method of funding. With the Reimbursement Order (Category I), the assisting agency pay for the items up front and is then reimbursed by the requesting agency. With Direct Citation (Category II), the requesting agency provides the funds up front.
An example of where a MIPR might be used is when an enhancement/fix needs to be applied to a software/system that is implemented at multiple government agencies. While one agency may be overseeing the contracting services that are responsible for developing the fix, the agencies that will benefit from the enhancement provide a certain percentage of the funds to pay for the software enhancement. These funds are recorded in the form of a MIPR and sent to the overseeing agency. The overseeing agency then receives the MIPR in the contracting system.
Funding Methods
There are two funding methods for a MIPR:
Reimbursement Order: A MIPR is created by the requesting agency, which sends the DD-448 form (MIPR Form) to the assisting agency. The Assisting agency receives MIPR and reviews it. After the review, the assisting agency either accepts or rejects MIPR and sends the DD-448-2 form (MIPR Acceptance Form) to the requesting agency. Further procurement activities are carried out based on the funding category Reimbursement Order. After the MIPR is accepted, the assisting agency commits the purchase requisition (which is actually a MIPR Others with a MIPR Reference of the requesting agency) and obligates the award from its corpus of funds. Later, the assisting agency receives the items or sends the items directly to requesting agency, and makes the payments to the supplier. Finally, the assisting agency sends items to the requesting agency and gets the required reimbursement by providing an invoice that has the MIPR number as a reference.
Direct Citation: A MIPR is created by the requesting agency, which sends the DD-448 form (MIPR Form) to the assisting agency. The Assisting agency receives MIPR and reviews it. After the review, the assisting agency either accepts or rejects MIPR and sends the DD-448-2 form (MIPR Acceptance Form) to the requesting agency. Further procurement activities are carried out based on the funding category Direct Citation. The assisting agency creates an award without obligation (funds). The assisting agency sends the award to supplier and the items are received either at the assisting agency or at the requesting agency location. The assisting agency informs the requesting agency about this award (in an offline process, outside the CLM system).Hence, the requesting agency obligates the award. After performing downstream activities (such as receiving,invoicing and payment),the requesting agency requests the assisting agency to close the award.