17.503
Ordering procedures
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.