Departments are the first-level organizations which are not subsumed hierarchically under any other organization. Agencies are the second-level organizations which are under departments. At the third level are the contracting offices and Major Commands under agencies. Sub-commands are under Major commands under agencies.
In the hierarchy, a contracting office can be assigned to either a department, an agency or a Major or Sub-Command.
The Organization Function is used to create /update new organizations or move an organization from one parent to another.