51.101
Policy
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.