Overview
FAR 8.404 outlines the procedures and exemptions for placing orders or establishing Blanket Purchase Agreements (BPAs) against Federal Supply Schedules (FSS). It establishes that while these actions are considered to provide full and open competition, they are exempt from many standard FAR requirements—such as those found in Parts 13, 14, 15, and 19—to streamline the acquisition process.
Key Rules
- Regulatory Exemptions: Orders placed under FSS are exempt from the formal requirements of FAR Parts 13 (Simplified Acquisition), 14 (Sealed Bidding), 15 (Contracting by Negotiation), and 19 (Small Business Programs), with very specific limited exceptions.
- Competition and Synopsis: FSS orders are considered to meet the requirement for full and open competition. Ordering activities do not need to synopsize the requirement or seek competition outside of the GSA Schedule.
- Pricing Reasonableness: GSA has already determined that schedule prices are fair and reasonable; therefore, the ordering activity is not required to make a separate determination, though they are encouraged to seek additional discounts.
- Order Type Preference: Agencies must use Firm-Fixed Price (FFP) orders to the maximum extent practicable. Time-and-Materials (T&M) or Labor-Hour orders require a formal Determination and Findings (D&F) and the establishment of a ceiling price.
- Acquisition Planning: Despite the streamlined nature of FSS, requirements for acquisition planning (FAR 7.1), IT strategies (FAR 39), and consolidation/bundling rules still apply.
- Publicity for Limited Sources: If an order exceeds the Simplified Acquisition Threshold (SAT) and is awarded via a limited-source justification, the justification must be publicized and posted.
Practical Implications
- The primary benefit to the government is administrative speed, as Contracting Officers can skip the lengthy solicitation and price-reasonableness determination phases required in open-market procurements.
- Contracting Officers must remain vigilant regarding "best value" and are still responsible for ensuring the procurement complies with their specific agency's statutory requirements and acquisition planning mandates.