17.502-1 General
Source: FAR 17.502-1 on acquisition.gov
FAR 17.502-1 requires clear, documented agreements and thorough business-case analyses to ensure accountability and compliance in interagency and multi-agency acquisitions.
Overview
FAR 17.502-1 outlines the general requirements for interagency acquisitions, focusing on the need for clear agreements and documentation when one agency (the servicing agency) acquires goods or services on behalf of another (the requesting agency). It distinguishes between assisted and direct acquisitions, specifying when written agreements are required and what they must include. The section also establishes the need for a business-case analysis when creating multi-agency or governmentwide acquisition contracts, detailing the required elements of such analyses to ensure transparency, efficiency, and compliance with federal procurement policy.
Key Rules
- Written Agreements for Assisted Acquisitions
- Before issuing a solicitation, both the servicing and requesting agencies must sign a written interagency agreement outlining roles, responsibilities, and any unique requirements. This agreement must be included in both agencies’ files and be sufficient for audit purposes.
- Direct Acquisitions
- No written agreement is required when the requesting agency administers the order directly.
- Business-Case Analysis for Multi-Agency and Governmentwide Contracts
- Servicing agencies must prepare and obtain approval for a business-case analysis before establishing these contracts, addressing small business participation, cost analysis, purchasing power impact, necessity, and administrative roles.
Responsibilities
- Contracting Officers: Ensure written agreements are in place for assisted acquisitions, maintain proper documentation, and oversee business-case analysis preparation and approval.
- Contractors: Must comply with any unique terms and conditions provided by the requesting agency and be aware of the administrative structure of the acquisition.
- Agencies: Must collaborate on agreements, provide necessary documentation, and follow OFPP guidance for interagency acquisitions and business-case analyses.
Practical Implications
- This section ensures accountability and clarity in interagency acquisitions, reducing the risk of miscommunication or non-compliance. It impacts daily contracting by requiring thorough documentation and planning, especially for complex or multi-agency contracts. Common pitfalls include failing to document agreements or omitting required business-case elements, which can lead to audit issues or contract delays.
(a) Written agreement on responsibility for management and administration—.
(1) Assisted acquisitions.
(i) Prior to the issuance of a solicitation, the servicing agency and the requesting agency shall both sign a written interagency agreement that establishes the general terms and conditions governing the relationship between the parties, including roles and responsibilities for acquisition planning, contract execution, and administration and management of the contract(s) or order(s). The requesting agency shall provide to the servicing agency any unique terms, conditions, and applicable agency-specific statutes, regulations, directives, and other applicable requirements for incorporation into the order or contract. In the event there are no agency unique requirements beyond the FAR, the requesting agency shall so inform the servicing agency contracting officer in writing. For acquisitions on behalf of the Department of Defense, also see subpart 17.7. For patent rights, see 27.304-2. In preparing interagency agreements to support assisted acquisitions, agencies should review the Office of Federal Procurement Policy (OFPP) guidance, Interagency Acquisitions, available at https://www.whitehouse.gov/wp-content/uploads/legacy_drupal_files/omb/assets/OMB/procurement/interagency_acq/iac_revised.pdf" target="_blank">https://www.whitehouse.gov/wp-content/uploads/legacy_drupal_files/omb/assets/OMB/procurement/interagency_acq/iac_revised.pdf .
(ii) Each agency’s file shall include the interagency agreement between the requesting and servicing agency, and shall include sufficient documentation to ensure an adequate audit consistent with 4.801(b).
(2) Direct acquisitions. The requesting agency administers the order; therefore, no written agreement with the servicing agency is required.
(b) Business-case analysis requirements for multi-agency contracts and governmentwide acquisition contracts. In order to establish a multi-agency or governmentwide acquisition contract, a business-case analysis must be prepared by the servicing agency and approved in accordance with the OFPP business case guidance, available at https://www.whitehouse.gov/wp-content/uploads/legacy_drupal_files/omb/procurement/memo/development-review-and-approval-of-business-cases-for-certain-interagency-and-agency-specific-acquisitions-memo.pdf" target="_blank">https://www.whitehouse.gov/wp-content/uploads/legacy_drupal_files/omb/procurement/memo/development-review-and-approval-of-business-cases-for-certain-interagency-and-agency-specific-acquisitions-memo.pdf . The business-case analysis shall—
(1) Consider strategies for the effective participation of small businesses during acquisition planning (see 7.103(u));
(2) Detail the administration of such contract, including an analysis of all direct and indirect costs to the Government of awarding and administering such contract;
(3) Describe the impact such contract will have on the ability of the Government to leverage its purchasing power, e.g., will it have a negative effect because it dilutes other existing contracts;
(4) Include an analysis concluding that there is a need for establishing the multi-agency contract; and
(5) Document roles and responsibilities in the administration of the contract.