Overview
FAR 17.502 establishes the administrative framework for interagency acquisitions, outlining the required documentation, business-case justifications, and specific procedures for transactions governed by the Economy Act. It distinguishes between assisted acquisitions, which require formal written agreements, and direct acquisitions, while setting strict "best interest" standards for using another agency's contract.
Key Rules
- Written Agreements: For assisted acquisitions, the requesting and servicing agencies must sign a written interagency agreement establishing roles, responsibilities, and agency-specific requirements prior to the issuance of a solicitation. Direct acquisitions do not require this agreement.
- Business-Case Analysis (BCA): Establishing a multi-agency or governmentwide acquisition contract (GWAC) requires a BCA approved by the OFPP. The BCA must evaluate small business participation, direct/indirect costs, and the impact on the government's collective purchasing power.
- Economy Act Applicability: The Economy Act (31 U.S.C. 1535) applies only when more specific statutory authority (such as GSA Schedules or GWACs) does not exist.
- Determinations and Findings (D&F): Economy Act orders must be supported by a D&F stating that the acquisition is in the government's best interest and that the requirement cannot be met as economically or conveniently by contracting directly with a private source.
- Cost Limitations: Servicing agencies are prohibited from charging fees that exceed the actual cost (direct and indirect) of entering into and administering the contract.
- Approval Levels: If the servicing agency is not covered by the FAR, the D&F must be approved by the requesting agency’s Senior Procurement Executive (SPE) and cannot be delegated lower.
Practical Implications
- Administrative Burden: Agencies must ensure meticulous file documentation for assisted acquisitions to meet audit standards, including the signed interagency agreement and specific D&Fs for Economy Act transactions.
- Statutory Hierarchy: Contracting Officers must perform a "statutory check" before using the Economy Act; if a GSA Schedule or existing GWAC can satisfy the requirement, those authorities must be used instead.
- Financial Reconciliation: Because servicing agencies cannot "profit" from interagency orders, requesting agencies must be prepared to reconcile advance payments against actual costs incurred by the servicing agency.