41.206
Interagency agreements
When acquiring utility services from another government agency, you must use an interagency agreement and comply with the Economy Act procedures in FAR 17.502-2.
Overview
FAR 41.206 requires federal agencies to use interagency agreements when acquiring utility services or facilities from other government agencies. These agreements can take various forms, such as consolidated purchase, joint use, or cross-service agreements. The section also mandates compliance with the policies and procedures outlined in FAR 17.502-2, which implements the Economy Act. This ensures that such acquisitions are conducted efficiently, legally, and in a manner that promotes government-wide resource sharing and cost-effectiveness.
Key Rules
- Use of Interagency Agreements
- Agencies must use formal interagency agreements for utility services or facilities acquired from other federal entities.
- Compliance with the Economy Act
- All such agreements must adhere to the requirements of FAR 17.502-2, ensuring proper justification, documentation, and approval processes are followed.
Responsibilities
- Contracting Officers: Ensure that interagency agreements are used and that all Economy Act requirements are met, including proper documentation and approvals.
- Contractors: Not directly impacted unless acting as an agent for a federal entity; must be aware if involved in interagency utility arrangements.
- Agencies: Oversee and enforce compliance with both FAR 41.206 and FAR 17.502-2 when acquiring utilities from other agencies.
Practical Implications
- This section exists to promote efficient use of government resources and prevent duplication of utility services or facilities.
- It impacts daily contracting by requiring additional documentation and adherence to specific interagency procedures.
- Common pitfalls include failing to properly document the agreement or neglecting to follow the Economy Act requirements, which can result in unauthorized commitments or audit findings.