Overview
This section prescribes the mandatory procedures for federal ordering offices to procure supplies and services from the Procurement List maintained by the AbilityOne Program. It details the administrative workflows for direct ordering, requesting allocations through central nonprofit agencies (CNAs), and managing contract compliance or performance failures.
Key Rules
- Mandatory Source Priority: Ordering offices must obtain supplies/services on the Procurement List from designated CNAs or nonprofit agencies. If supplies are available via DLA, GSA, or VA distribution facilities, those facilities must be used first.
- Direct-Order Authority: Ordering offices may only bypass the formal allocation process and order directly from a nonprofit agency if they have received written authorization from a CNA.
- The Allocation Process: When direct ordering is not authorized, the ordering office must submit a formal request for allocation to the CNA, providing specific details such as specifications, quantities, and required delivery dates.
- Order Issuance and Obligation: Once an allocation is received, the order must be issued promptly (within 15 days) and recorded as a formal fiscal obligation.
- Dispute Resolution Hierarchy: If a nonprofit agency fails to perform, the ordering office must attempt to resolve the issue in a specific sequence: first with the nonprofit agency, then the CNA, and finally the Committee.
- Purchase Exceptions: Procurement from commercial sources is only permitted if the CNA grants a "purchase exception." If the value is $25,000 or more, the Committee must approve the exception.
Practical Implications
- Lead Time Planning: Contracting officers must coordinate closely with CNAs to account for specific production lead times, as they cannot unilaterally impose delivery schedules that the nonprofit agency has not agreed to.
- Administrative Rigor: Unlike commercial contracts where a "Termination for Default" might be a primary remedy, FAR 8.705-4 requires a rigorous administrative negotiation process and CNA involvement before an order can be canceled for non-performance.