17.503 Ordering procedures
Source: FAR 17.503 on acquisition.gov
FAR 17.503 mandates clear procedures, documentation, and compliance steps for agencies placing interagency orders, ensuring legal, financial, and competition requirements are met.
Overview
FAR 17.503 outlines the procedures agencies must follow when placing orders for supplies or services with another government agency under interagency acquisition agreements. It details the required documentation, coordination, and compliance steps to ensure proper acquisition, especially under the Economy Act. The section also addresses the responsibilities of both requesting and servicing agencies, dispute resolution, and special rules for using Federally Funded Research and Development Centers (FFRDCs).
Key Rules
- Pre-Order Procedures
- Agencies must follow the procedures in FAR 17.502-1 and, if applicable, 17.502-2 before placing an order with another agency.
- Order Documentation
- Orders can be placed on any mutually acceptable form and must include a description of requirements, delivery, funding, payment, and acquisition authority.
- Dispute Resolution
- Agencies should agree on procedures for resolving disagreements, potentially involving a third party with written consent.
- Contract Award by Servicing Agency
- If the servicing agency must award a contract, it is responsible for required justifications, legal compliance, and competition requirements. The requesting agency must provide necessary information and assistance.
- Use of FFRDCs
- Nonsponsoring agencies may only use FFRDCs if permitted by the sponsoring agreement and must ensure the work does not compete with private industry, providing documentation to the sponsor.
Responsibilities
- Contracting Officers: Ensure all procedural, documentation, and compliance requirements are met before and during interagency acquisitions.
- Contractors: Must comply with contract terms and any special requirements imposed by the interagency agreement.
- Agencies: Must coordinate, document, and resolve disputes, and ensure legal and regulatory compliance, especially regarding competition and use of FFRDCs.
Practical Implications
- This section ensures transparency, accountability, and proper use of funds in interagency acquisitions. It helps prevent disputes, ensures legal compliance, and protects the government from inappropriate charges. Common pitfalls include incomplete documentation, failure to follow required procedures, and improper use of FFRDCs.
(a) Before placing an order for supplies or services with another Government agency, the requesting agency shall follow the procedures in 17.502-1 and, if under the Economy Act, also 17.502-2.
(b) The order may be placed on any form or document that is acceptable to both agencies. The order should include-
(1) A description of the supplies or services required;
(2) Delivery requirements;
(3) A funds citation;
(4) A payment provision (see 17.502-2(d) for Economy Act orders); and
(5) Acquisition authority as may be appropriate (see 17.503(d)).
(c) 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.
(d) When an interagency acquisition requires the servicing agency to award a contract, the following procedures also apply:
(1) 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.
(2) 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.
(3) The servicing agency is responsible for compliance with all other legal or regulatory requirements applicable to the contract, including-
(i) Having adequate statutory authority for the contractual action; and
(ii) Complying fully with the competition requirements of part 6 (see 6.002). However, if the servicing agency is not subject to the Federal Acquisition Regulation, the requesting agency shall verify that contracts utilized to meet its requirements contain provisions protecting the Government from inappropriate charges (for example, provisions mandated for FAR agencies by part 31), and that adequate contract administration will be provided.
(e) 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 35.017; see also 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.