42.002
Interagency agreements
Interagency agreements are required to prevent redundant oversight of contractors and ensure proper reimbursement between agencies under the Economy Act.
Overview
FAR 42.002 addresses the use of interagency agreements to coordinate contract administration activities among federal agencies. Its primary purpose is to prevent redundant audits, reviews, inspections, and examinations of contractors or subcontractors by multiple agencies. The regulation also outlines reimbursement procedures between agencies for services rendered under such agreements, referencing the Economy Act for fiscal guidance. Additionally, it encourages agencies to establish procedures for resolving disputes or issues that may arise during the execution of interagency agreements.
Key Rules
- Avoidance of Duplicate Oversight
- Agencies must use interagency agreements to prevent multiple agencies from conducting redundant audits or reviews of the same contractor or subcontractor.
- Reimbursement for Services
- The requesting agency must reimburse the servicing agency for services provided, following the Economy Act and relevant fiscal regulations.
- Issue Resolution Procedures
- Agencies are encouraged to set up procedures for resolving any issues that may occur under the interagency agreement.
Responsibilities
- Contracting Officers: Ensure interagency agreements are in place to avoid duplicate oversight and facilitate proper reimbursement.
- Contractors: Cooperate with agency representatives as required, but benefit from reduced redundant oversight.
- Agencies: Coordinate oversight activities, manage reimbursements, and establish issue resolution processes.
Practical Implications
- This section exists to streamline contract administration and reduce unnecessary burdens on contractors and agencies.
- It impacts daily contracting by promoting efficiency and clarity in oversight responsibilities.
- Common pitfalls include failing to coordinate oversight, resulting in duplicate audits, or neglecting proper reimbursement procedures.