Financial Management

Military Interdepartmental Purchase Request (MIPR)

The Military Interdepartmental Purchase Request (MIPR) is a method for transferring funds from one military organization to another to procure services, supplies, or equipment for the required service. A MIPR is processed on DD Form 448 and may be accepted on a direct citation or reimbursable basis and is defined in the Federal Acquisition Regulation (FAR) 253.208-2. The MIPR (DD Form 448) may be accepted on a direct citation or reimbursable basis.

Definition: A Military Interdepartmental Purchase Request (MIPR) allows military agencies the ability to obligate funds from a finance and accounting office to federal agencies to purchase products and/or services.

DD Form 448: Military Interdepartmental Purchase Request (MIPR)

Guide: Air Force Military Interdepartmental Purchase Request (MIPR) – 2007

Military Interdepartmental Purchase Request (MIPR) Direct Method

Since the requesting entity’s line of accounting will be directly referenced on the performing business’s contract, when the “direct cite” approach is employed, the requesting entity will be in charge of all accounting functions. Once the performing entity awards an initial contract or completes a contract modification step, “direct cite” MIPR funds become obligated.

Military Interdepartmental Purchase Request (MIPR) Reimbursable Method

The asking entity’s line of accounting will not be cited or referenced on the performing entity’s contract when the “reimbursable” approach is employed. Instead, the performing entity will handle the asking entity’s funds internally. “Reimbursable” MIPR payments are considered obligated for obligation purposes when the requesting entity’s accounting team processes the MIPR through the entity’s financial management system and the performing entity approves the requesting entity’s MIPR request (via DD Form 448-2). Only after the performing entity has finished taking reimbursement actions against the MIPR money and the requesting entity’s financial management system has properly processed the transaction or transactions will the requesting entity be able to view official financial transactions.

Top 10 Common Military Interdepartmental Purchase Request (MIPR) Errors

Incorrect MIPRs significantly impact the ability to get funding on contracts quickly. The following are the en (10) most commonly noted errors:

  1. There is NO indication of whether the MIPR should be accepted CAT I (Reimbursable) or CAT II (Direct Cite).
  2. There are NO itemized dollar amounts (breakout) for the TAT and Customer Shared Direct Cost.
  3. An INCORRECT TAT number or NO TAT number is present on the MIPR.
  4. The MIPR has NO BPN/DoDAAC/DUNS number present.
  5. The MIPR does not state the contract number.
  6. The Requesting Activity’s line of accounting (LOA) is INCORRECT or INCOMPLETE.
  7. No Financial or Technical POC information is present on MIPR.
  8. MIPR is not legible.
  9. Grand Total for the MIPR series is incorrect.
  10. MIPR is not signed, dated, or addressed to DTIC.

Best Practices for Military Interdepartmental Purchase Request (MIPR)

  • DoD entities must make sure that sufficient paperwork is kept up to date and readily available following each MIPR’s specifics when using them to carry out financial transactions.
  • The requirements under MIPR must be funded by funds available to DoD entities; furthermore, the requirements under MIPR must serve the interests of the US Government; the performing entity must be able to provide the requirements of the requesting entity or obtain them through contract; and the requirements cannot be obtained as conveniently or economically by a commercial enterprise.
  • MIPRs must provide cost estimates and information supporting the requirements (materials, supplies, or services), just like typical contractual actions do. The DoD’s capacity to attain an audit readiness level and its accountability for resources have come under intense criticism. Issues with financial improvement and audit preparedness standards will persist for the Department of Defense (DoD) if important supporting documentation are not kept up to date or easily accessible.
  • When MIPRs are carried out, staff from the requesting and executing entities must collaborate closely. The two entities will specifically monitor financial activity to make sure that: a) the effort is proceeding according to plan; b) the financial transactions reported by the performing entity are matching up with the financial system of the requesting entity; and c) there is sufficient funding available to fulfill the requirement (more funding will be provided if necessary or excess funding will be returned).

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Updated: 12/20/2023

Rank: G1

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