Overview
Subpart 17.5 prescribes the policies and procedures for interagency acquisitions, which occur when one agency (the requesting agency) obtains supplies or services through another agency’s contract or acquisition assistance (the servicing agency). It establishes the regulatory framework for using Governmentwide Acquisition Contracts (GWACs), Multi-Agency Contracts (MACs), and Federal Supply Schedules (FSS), while ensuring these transactions are not used to circumvent statutory funding limitations or competition requirements.
Key Rules
- Applicability: Applies to both "Direct Acquisitions" (requesting agency places the order) and "Assisted Acquisitions" (servicing agency awards and administers the contract).
- The $750,000 Threshold: This subpart does not apply to orders of $750,000 or less issued against Federal Supply Schedules (FSS).
- The Economy Act: If no other specific statutory authority (like the FSS or GWAC authority) exists, the Economy Act (31 U.S.C. 1535) governs. It requires a formal Determination and Findings (D&F) stating that the acquisition is in the government's best interest and cannot be obtained as economically by contracting directly with a private source.
- Business Case Analysis (BCA): Before establishing a new GWAC or MAC, the servicing agency must prepare a BCA approved by the Office of Federal Procurement Policy (OFPP) to ensure the contract doesn't unnecessarily dilute the government's purchasing power.
- Fee Limitations: Servicing agencies are prohibited from charging fees in excess of the actual (or estimated) costs of entering into and administering the contract.
- Fund Integrity: Interagency acquisitions cannot be used to circumvent conditions or limitations imposed on the use of funds (e.g., using expiring funds for future-year requirements).
Responsibilities
- Requesting Agency Contracting Officer (CO) / Official:
- Prepares and approves the D&F (for Economy Act orders).
- Provides unique agency-specific terms and conditions to the servicing agency.
- Ensures the requirement is legitimate and funding is appropriate.
- Administers "Direct Acquisitions."
- Servicing Agency Contracting Officer:
- Ensures compliance with FAR Part 6 (Competition Requirements).
- Executes and issues any required Justification and Approvals (J&As).
- Manages the contract/order for "Assisted Acquisitions."
- Ensures service contractor reporting (Subpart 4.17) is completed.
- Senior Procurement Executive:
- Approves Economy Act D&Fs if the servicing agency is not covered by the FAR.
- Submits annual reports on interagency acquisitions to the Director of OMB.
Practical Implications
- Streamlined Procurement: For many agencies, using a GWAC or MAC (like NASA SEWP or GSA STARS) is faster than a full open-market solicitation because the underlying contract is already competed and established.
- Administrative Burden: While assisted acquisitions save the requesting agency from performing the "heavy lifting" of contract award, they require a formal Interagency Agreement (IA) signed before the solicitation begins. This IA must clearly define roles, responsibilities, and dispute resolution procedures.
- Compliance Risk: If a requesting agency uses a non-FAR agency (like the Postal Service) for an assisted acquisition, the requesting CO must take extra steps to verify that the contract protects the government from inappropriate charges and includes adequate administration.
- Fiscal Accountability: Agencies must be careful with "advance payments." While the servicing agency can ask for funds upfront, adjustments based on actual costs must be made later to ensure no "profit" is made by the servicing agency.