Overview
This section mandates that federal agencies use formal interagency agreements when procuring utility services or facilities from other government entities, specifically requiring adherence to the Economy Act.
Key Rules
- Mandatory Use: Agencies are required to utilize interagency agreements (such as consolidated purchase, joint use, or cross-service agreements) when obtaining utilities from other government sources.
- Statutory Compliance: All such acquisitions must comply with the specific policies and procedures outlined in FAR 17.502-2 regarding the Economy Act.
- Scope: The rule applies to both the acquisition of the utility service itself and the underlying utility facilities.
Practical Implications
- Contracting officers must ensure that a Determination and Findings (D&F) is prepared in accordance with the Economy Act before finalized utility agreements are executed between agencies.
- This framework encourages inter-departmental resource sharing and prevents the unnecessary duplication of utility infrastructure across the federal landscape.