General
Interagency acquisitions must not be used to circumvent legal, funding, or authority restrictions and must comply with all applicable performance and statutory requirements.
Overview
FAR 17.501 outlines the general principles governing interagency acquisitions, which are transactions where one federal agency procures goods or services on behalf of another. The section highlights that such acquisitions are typically conducted using indefinite-delivery contracts, including Federal Supply Schedules (FSS), Governmentwide Acquisition Contracts (GWACs), and Multi-Agency Contracts (MACs). It emphasizes that agencies must not use interagency acquisitions to bypass statutory or regulatory restrictions on the use of funds, nor to avoid requirements regarding contractor versus government performance (as detailed in FAR subpart 7.3). Additionally, agencies are prohibited from using interagency acquisitions to infringe upon the authority or responsibilities of other agencies, such as those held by the General Services Administration (GSA) under specific U.S. Code titles.
Key Rules
- Use of Indefinite-Delivery Contracts
- Interagency acquisitions are most often executed through FSS, GWACs, and MACs.
- Prohibition on Circumventing Funding Restrictions
- Agencies cannot use interagency acquisitions to evade legal or regulatory funding limitations.
- Applicability of Contractor vs. Government Performance Requirements
- Interagency acquisitions must comply with FAR subpart 7.3 regarding decisions on contractor versus government performance.
- Respect for Agency Authority
- Agencies must not use interagency acquisitions to acquire goods or services in a manner that conflicts with another agency’s statutory authority or responsibilities.
Responsibilities
- Contracting Officers: Ensure interagency acquisitions comply with all applicable laws, funding restrictions, and agency authorities; verify adherence to FAR subpart 7.3.
- Contractors: Understand the types of contracts used and the compliance environment for interagency acquisitions.
- Agencies: Oversee that acquisitions do not infringe on other agencies’ authorities or circumvent funding restrictions.
Practical Implications
- This section exists to ensure interagency acquisitions are conducted lawfully and ethically, maintaining proper oversight and respecting agency boundaries.
- It impacts daily contracting by requiring careful review of statutory authorities, funding limitations, and performance requirements.
- Common pitfalls include inadvertently bypassing funding restrictions or overstepping another agency’s procurement authority.