Contracts & Legal

Interagency Acquisitions

Interagency Acquisitions are procedures by which a federal agency needing supplies or services can obtain these supplies or services from a federal agency.  Federal Acquisition Regulation (FAR) Subpart 17.5 describes the policies and procedures applicable to all interagency acquisitions. This regulation stems from the Economy Act which authorizes agencies to enter into agreements to obtain supplies or services by interagency acquisition.  Interagency acquisitions are commonly conducted through Indefinite-Delivery Contracts, such as task- and delivery-order contracts.

Website: FAR Subpart 17.5 – Interagency Acquisitions

 The Economy Act:

  • Authorizes agencies to enter into mutual agreements to obtain supplies or services by inter-agency acquisition.
  • May not be used by an agency to circumvent conditions and limitations imposed on the use of funds.
  • States acquisitions are not exempt from the requirements of FAR Subpart 7.3 – Contractor versus Government Performance.
  • May not be used to make acquisitions conflicting with any other agency’s authority or responsibility (for example, that of the Administrator of General Services under the Federal Property and Administrative Services Act).

FAR Subpart 17.5 describes the policies and procedures applicable that are required for all interagency acquisitions.

  • 17.500 Scope
  • 17.501 Definition
  • 17.502 Scope
  • 17.502-2 Economy Act
    • Determinations and Findings Requirements
    • Business Case Analysis
    • Payment
  • 17.503 Ordering Procedures
  • 17.504 Reporting Requirements

FAR Subpart 17.503 “Ordering Procedures”

  1. Before ordering, make sure to follow the procedures in the Economy Act and FAR Subpart 17.502
  2. An order may be placed on any form or document that is acceptable to both agencies and should include:
  3. The requesting and servicing agencies should agree to procedures for the resolution of disagreements that may arise under interagency acquisitions, including, in appropriate circumstances, the use of a third-party forum. If a third party is proposed, consent of the third party should be obtained in writing.
  4. When an interagency acquisition requires the servicing agency to award a contract, the following procedures also apply:
    • If a justification and approval or a D&F (other than the requesting agency’s D&F required in 17.502-2(c)) is required by law or regulation, the servicing agency shall execute and issue the justification and approval or D&F. The requesting agency shall furnish the servicing agency any information needed to make the justification and approval or D&F.
    • The requesting agency shall also be responsible for furnishing other assistance that may be necessary, such as providing information or special contract terms needed to comply with any condition or limitation applicable to the funds of the requesting agency.
    • The servicing agency is responsible for compliance with all other legal or regulatory requirements applicable to the contract
  5. Nonsponsoring Federal agencies may use a Federally Funded Research and Development Center (FFRDC) only if the terms of the FFRDC’s sponsoring agreement permit work from other than a sponsoring agency. Work placed with the FFRDC is subject to the acceptance by the sponsor and must fall within the purpose, mission, general scope of effort, or special competency of the FFRDC. (See FAR Subpart 35.017; see also FAR Subparty 6.302 for procedures to follow where using other than full and open competition.) The nonsponsoring agency shall provide to the sponsoring agency necessary documentation that the requested work would not place the FFRDC in direct competition with domestic private industry.

AcqLinks and References:

Updated: 8/3/2021


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