Overview
FAR Part 8 prescribes the "Order of Precedence" for government procurement, requiring agencies to satisfy their requirements through specific mandatory sources before turning to the commercial marketplace. It provides the framework for utilizing existing government inventories, socio-economic programs like AbilityOne and Federal Prison Industries (FPI), and the Federal Supply Schedule (FSS) program.
Key Rules
- Priorities for Supplies (8.002): Agencies must satisfy requirements for supplies in the following descending order: (1) Agency inventories, (2) Excess from other agencies, (3) Federal Prison Industries (UNICOR), (4) AbilityOne (blind or severely disabled), and (5) Wholesale supply sources (GSA, DLA, VA).
- Priorities for Services (8.002): The primary mandatory source for services is the Procurement List maintained by the Committee for Purchase From People Who Are Blind or Severely Disabled (AbilityOne).
- Non-Mandatory Sources (8.004): If mandatory sources cannot meet the requirement, agencies are encouraged to use Federal Supply Schedules, Governmentwide Acquisition Contracts (GWACs), or multi-agency contracts before going to the open commercial market.
- FSS Ordering Procedures (8.405):
- At or below Micro-purchase Threshold: Can place orders with any schedule contractor.
- Above Micro-purchase but below SAT: Must survey at least three schedule contractors (via GSA Advantage! or catalogs).
- Above SAT: Must post an RFQ on eBuy or provide it to enough contractors to ensure at least three quotes are received.
- Fair and Reasonable Pricing (8.404): GSA has already determined prices on the schedule to be fair and reasonable. However, ordering activities are responsible for evaluating the total price for services requiring a Statement of Work (SOW) and seeking further discounts for high-volume orders.
Responsibilities
- Contracting Officers (COs):
- Must verify if a requirement can be met by a mandatory source before initiating a new contract.
- Responsible for documenting a "Limited Source Justification" if they restrict competition on a Federal Supply Schedule order.
- Must execute a Determination and Findings (D&F) for any Time-and-Materials or Labor-Hour orders.
- Ensure that orders include all applicable regulatory and statutory clauses (e.g., small business considerations).
- Requiring Agencies / Program Managers:
- Must first check agency inventories and excess personal property before requesting a new procurement.
- Provide the CO with necessary information regarding statutory requirements and Statement of Works for services.
- Responsible for identifying the specific supplies or services required from the AbilityOne Procurement List.
- GSA (General Services Administration):
- Manages the Federal Supply Schedule program and delegates specific procurement authorities (e.g., medical supplies to the VA).
Practical Implications
- Efficiency vs. Compliance: While GSA Schedules offer a streamlined "simplified" acquisition process, COs must be careful not to treat them as "open market" tools. Failure to follow the mandatory priority list (e.g., skipping AbilityOne to buy a commercial equivalent) can result in legal protests or audit findings.
- Market Research is Mandatory: Even when using non-mandatory sources like FSS, agencies must still perform market research to ensure they are achieving "Best Value." This often involves comparing at least three distinct vendors to satisfy competition requirements.
- Small Business Integration: Although FAR Part 19 (Small Business Programs) generally does not apply to FSS orders in the same way it does to open market contracts, COs are still encouraged to use the schedules to meet agency small business goals through "set-asides" within the schedule itself.
- Strategic Sourcing: By prioritizing agency inventories and excess property, the government reduces waste and avoids "double-buying" items already owned by the taxpayer.