Subpart 51.1
Contractor Use of Government Supply Sources
FAR Subpart 51.1 allows contractors to use Government supply sources when authorized, but requires strict adherence to authorization, ordering, and payment procedures to ensure compliance.
Overview
FAR Subpart 51.1 establishes the rules and procedures for contractors to use Government supply sources, such as Federal Supply Schedules and other Government-operated supply channels, when authorized by their contracts. This subpart outlines the policy, authorization process, ordering procedures, assistance available to contractors, payment requirements, title to supplies, and the necessary contract clauses. The intent is to allow contractors, under specific circumstances, to access Government supply sources to fulfill contract requirements efficiently and cost-effectively, while ensuring proper oversight and compliance with federal procurement regulations.
Key Rules
- Policy and Scope
- Contractors may be authorized to use Government supply sources when it is in the Government’s interest and specified in the contract.
- Authorization Process
- Contracting officers must provide written authorization for contractors to access Government supply sources.
- Ordering Procedures
- Contractors must follow established ordering procedures and comply with all applicable regulations when using Government sources.
- Assistance and Payment
- Agencies may assist contractors in using supply sources, and contractors are responsible for payment for shipments.
- Title and Contract Clauses
- Title to supplies passes to the Government upon delivery, and contracts must include the appropriate FAR clause to govern use of Government supply sources.
Responsibilities
- Contracting Officers: Must determine when use of Government supply sources is appropriate, issue written authorizations, and include required clauses in contracts.
- Contractors: Must obtain proper authorization, follow ordering and payment procedures, and comply with all terms and conditions related to Government supply sources.
- Agencies: May provide assistance to contractors and ensure compliance with applicable regulations.
Practical Implications
- This subpart enables contractors to leverage Government purchasing power, potentially reducing costs and improving efficiency.
- Contractors must strictly adhere to authorization and ordering procedures to avoid misuse or noncompliance.
- Common pitfalls include failing to obtain proper authorization, improper ordering, or misunderstanding payment and title transfer requirements.