51.101 Policy
Source: FAR 51.101 on acquisition.gov
Contractors may use Government supply sources for eligible contracts only when authorized by the contracting officer and must follow mandatory source procedures for certain items.
Overview
FAR 51.101 establishes the policy for allowing contractors to use Government supply sources when performing certain types of Government contracts. This section outlines the circumstances under which contracting officers may authorize such use, including for cost-reimbursement contracts, certain negotiated contracts, and contracts under the Committee for Purchase from People Who Are Blind or Severely Disabled. It also addresses the acquisition of security equipment for fixed-price contracts involving classified information and specifies procedures for purchasing mandatory supply items from designated Government sources.
Key Rules
- Authorization for Use of Government Supply Sources
- Contracting officers may permit contractors to use Government supply sources if it benefits the Government and the supplies/services are required for contract performance.
- Eligible Contract Types
- Authorization applies to cost-reimbursement contracts, certain negotiated contracts with substantial cost-reimbursement elements, and contracts under 41 U.S.C. chapter 85 for nonprofit agencies serving the blind or severely disabled.
- Security Equipment for Classified Contracts
- Contractors with fixed-price contracts requiring classified information protection may acquire security equipment through GSA sources.
- Mandatory Source Procedures
- Contractors must purchase mandatory supply items from DLA, GSA, or VA if available; otherwise, orders must go through the appropriate central nonprofit agency.
Responsibilities
- Contracting Officers: Determine eligibility and authorize contractor use of Government supply sources; ensure compliance with mandatory source requirements.
- Contractors: Use authorized Government sources as directed; follow procedures for purchasing mandatory items; acquire security equipment through GSA when required.
- Agencies: Oversee authorization process and ensure proper use of supply sources.
Practical Implications
- This policy enables contractors to access Government supply chains, potentially reducing costs and improving efficiency.
- Contractors must understand which contracts and items are eligible and follow proper authorization and ordering procedures.
- Common pitfalls include unauthorized use of supply sources or failure to follow mandatory source requirements, which can result in compliance issues.
(a) If it is in the Government’s interest, and if supplies or services required in the performance of a Government contract are available from Government supply sources, contracting officers may authorize contractors to use these sources in performing-
(1) Government cost-reimbursement contracts;
(2) Other types of negotiated contracts when the agency determines that a substantial dollar portion of the contractor’s contracts are of a Government cost-reimbursement nature; or
(3) A contract under http://uscode.house.gov/view.xhtml?req=granuleid%3AUSC-prelim-title41-chapter85&saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGU0MC1jaGFwdGVyMzctZnJvbnQ%3D%7C%7C%7C0%7Cfalse%7Cprelim&edition=prelim" target="_blank">41 U.S.C. chapter 85, Committee for Purchase from People Who Are Blind or Severely Disabled, if-
(i) The nonprofit agency requesting use of the supplies and services is providing a commodity or service to the Federal Government; and
(ii) The supplies or services received are directly used in making or providing a commodity or service, approved by the Committee for Purchase From People Who Are Blind or Severely Disabled, to the Federal Government (see subpart 8.7).
(b) Contractors with fixed-price Government contracts that require protection of security classified information may acquire security equipment through GSA sources (see 41 CFR 101-26.507).
(c) Contracting officers shall authorize contractors purchasing supply items for Government use that are available from the Committee for Purchase from People Who Are Blind or Severely Disabled (see subpart 8.7) to purchase such items from the Defense Logistics Agency (DLA), the General Services Administration (GSA), and the Department of Veterans Affairs (VA) if they are available from these agencies through their distribution facilities. Mandatory supplies that are not available from DLA/GSA/VA shall be ordered through the appropriate central nonprofit agency (see 52.208-9(c)).