[Code of Federal Regulations]
[Title 32, Volume 2]
[Revised as of July 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 32CFR231 App B]

[Page 500-501]

                       TITLE 32--NATIONAL DEFENSE

        CHAPTER I--OFFICE OF THE SECRETARY OF DEFENSE (CONTINUED)

PART 231_PROCEDURES GOVERNING BANKS, CREDIT UNIONS AND OTHER FINANCIAL

  Subpart C_Guidelines for Application of the Privacy Act to Financial
                         Institution Operations

              Sec. Appendix B to Part 231--In-Store Banking

    A. Selection Process. The purpose of this guidance is to assure an
impartial and thorough process to select the best on-base financial
institution to provide in-store banking services when such services are
desired and approved by the installation commander.
    1. Consistent with DoD Component delegation, the final decision to
solicit for an in-store banking office rests with the installation
commander.
    2. The DoD Component seeking in-store banking (e.g., in buildings
operated by the Defense Commissary Agency, Military Exchange Services
and MWR activities) shall draft the solicitation letter.
    3. Close coordination among all cognizant DoD organizations is
essential throughout the selection process.

[[Page 501]]

    B. Specific Procedures
    1. The need for in-store banking service may be identified from
either:
    a. An unsolicited proposal from an on-base financial institution,
    b. A DoD Component's request, or
    c. An installation commander's request.
    2. The cognizant installation commander (or designee) is responsible
for assessing the environment and authorizing the Bank/Credit Union
Liaison Officer(s) to pursue the acquisition of in-store banking
services. If no authorization is given, no further action is required.
    3. The cognizant installation commander shall determine whether a
solicitation is required. (A solicitation shall be required whenever
there are two or more financial institutions on a DoD installation.) If
no solicitation is required, then the Bank/Credit Union Liaison Officer
shall work directly with the on-base financial institution to obtain the
requested services. Where there is neither a banking office nor an on-
base credit union, use the solicitation process outlined in Sec.
231.5(c) of this chapter, as supplemented by the provisions outlined in
paragraph A, above.
    4. The solicitation letter shall identify the financial services
being requested and classify these services as either mandatory or
optional. In addition, the solicitation letter shall highlight any
services that will be weighed as more important than others during the
evaluation of the proposals. Any space consideration and terms of the
proposed agreement also shall be identified in the letter.
    5. The installation commander (or designee) formally shall notify
the selected financial institution and request that institution to
coordinate with the proper activity to begin any construction,
modifications or renovations necessary to open the in-store banking
office. The cognizant facility management personnel shall begin the
process of obtaining the necessary outgrant instruments. Concurrently,
the requesting DoD Component representative and the financial
institution representative shall draft the appropriate amendment to the
operating agreement. The amendment should contain provisions regarding:
    a. The roles and responsibilities of all parties involved.
    b. The financial services to be provided, and
    c. The logistical support arrangements to include custodial services
and security provisions. The amendment should be coordinated with the
Bank/Credit Union Liaison Officer(s) prior to forwarding that document
to the installation commander for signature. The amendment shall be
signed by the installation commander (or designee) and the appropriate
financial institution official with a copy furnished to the Secretary of
the Military Department concerned (or designee) and the Director, DFAS
(or designee).