Overview
FAR 17.503 establishes the procedural framework for interagency acquisitions, detailing the documentation requirements, compliance responsibilities, and specific conditions for placing orders for supplies or services between Government agencies. It ensures that both requesting and servicing agencies maintain regulatory oversight, especially when the acquisition involves awarding a contract to a third party or utilizing a Federally Funded Research and Development Center (FFRDC).
Key Rules
- Prerequisites: Before placing an order, requesting agencies must comply with the general procedures in FAR 17.502-1 and, for Economy Act orders, the Determination and Findings (D&F) requirements in 17.502-2.
- Order Content: While the form is flexible, the order must include five specific elements: a description of requirements, delivery terms, a funds citation, payment provisions, and the applicable acquisition authority.
- Dispute Resolution: Agencies are directed to agree upon a dispute resolution process, including the potential use of a third-party forum, prior to execution.
- Compliance Responsibility: When the servicing agency awards a contract:
- The servicing agency is responsible for executing Justifications and Approvals (J&A), ensuring statutory authority, and complying with FAR Part 6 competition requirements.
- The requesting agency must provide all necessary data for the J&A and inform the servicing agency of any specific limitations or terms associated with the requested funds.
- Non-FAR Agencies: If the servicing agency is not subject to the FAR, the requesting agency must verify that the resulting contract includes protections against inappropriate charges (similar to FAR Part 31) and ensures adequate administration.
- FFRDC Usage: Use of an FFRDC by a non-sponsoring agency is permitted only if the work is within the FFRDC’s mission, the sponsor agrees, and the requesting agency documents that the work does not compete with private industry.
Practical Implications
- Due Diligence: Requesting agencies cannot simply "hand off" a requirement; they remain responsible for ensuring that the servicing agency provides FAR-equivalent protections when using non-FAR entities.
- Administrative Coordination: Success in interagency acquisitions relies on heavy upfront coordination, as the requesting agency must provide the technical and financial data necessary for the servicing agency to defend the procurement's legal and competitive standing.