Overview
FAR 51.102 prescribes the procedures, documentation, and administrative requirements a contracting officer must follow when authorizing contractors or subcontractors to access Government supply sources. It establishes the criteria for justifying such authorizations and defines the ongoing oversight responsibilities of the authorizing agency.
Key Rules
- Written Justification: Before authorization, the contracting officer (CO) must place a written finding in the contract file (except for certain specialized authorizations) considering factors such as cost savings, administrative effort, delivery speed, and item suitability.
- Subcontractor Access: Authorizations for subcontractors must be issued through, and approved by, the prime contractor.
- Activity Address Codes: The CO must formally request FEDSTRIP/MILSTRIP activity address codes from the relevant agency (GSA, DoD, or VA) to enable contractor ordering.
- Mandatory Authorization Content: Letters of authorization must specify contract numbers, the duration of the authorization, specific ordering forms/methods, and any applicable limitations.
- Discretionary Limitations: COs may restrict use to specific facilities, limit purchases to overhead supplies (excluding production supplies), or set maximum dollar thresholds.
- Agency Responsibility: The authorizing agency is responsible for monitoring contractor compliance and remains liable for any indebtedness the contractor fails to pay to the Government supply source.
Practical Implications
- Financial Risk: Because the authorizing agency is responsible for unpaid contractor debts to supply sources, COs must perform due diligence before granting access and maintain strict oversight of contractor accounts.
- Administrative Oversight: Use of Government sources is not "self-executing"; it requires significant coordination between the CO and GSA/DoD to establish and eventually decommission activity address codes upon contract completion.