51.102 Authorization to use Government supply sources
Source: FAR 51.102 on acquisition.gov
Contracting officers must thoroughly document and control contractor access to Government supply sources, ensuring compliance and oversight throughout the process.
Overview
FAR 51.102 outlines the procedures and requirements for authorizing contractors to use Government supply sources. Before granting such authorization, the contracting officer must document a written finding in the contract file, except in certain cases. The decision to authorize is based on factors like administrative costs, item suitability, delivery, and contractor recommendations. Authorizations for subcontractors require contractor approval. Once authorization is decided, the contracting officer must request the appropriate activity address codes or approvals from relevant agencies and include specific information in each request. The authorization itself must cite contract numbers, specify the period, detail requisitioning procedures, and may include additional limitations. The contracting officer must instruct the contractor to follow applicable policies. After authorization, the agency is responsible for ensuring contractor compliance, managing any indebtedness, and updating Government sources on address or contract status changes.
Key Rules
- Written Finding Requirement
- Contracting officers must document a written finding supporting the authorization, except for certain cases under 51.101(c).
- Authorization Process
- Authorizations for subcontractors must go through and be approved by the prime contractor.
- Requesting Activity Address Codes/Approvals
- Contracting officers must request the appropriate codes or approvals from GSA, DoD, VA, or other agencies, including specific contractor and contract information.
- Authorization Content
- Authorizations must cite contract numbers, specify periods, detail requisitioning procedures, and may include limitations or conditions.
- Agency Oversight
- Agencies must ensure contractor compliance, manage indebtedness, and update Government sources on changes.
Responsibilities
- Contracting Officers: Prepare written findings, request necessary codes/approvals, issue detailed authorizations, and instruct contractors on compliance.
- Contractors: Comply with authorization terms, use correct procedures for requisitioning, and follow all applicable policies.
- Agencies: Oversee contractor compliance, handle financial liabilities, and maintain up-to-date records with Government sources.
Practical Implications
- This section ensures that contractors only access Government supply sources when justified and under controlled conditions.
- It impacts daily contracting by requiring thorough documentation, clear communication, and ongoing oversight.
- Common pitfalls include missing documentation, failing to update address changes, or not following proper requisitioning procedures.
(a) Before issuing an authorization to a contractor to use Government supply sources in accordance with 51.101(a) or (b), the contracting officer shall place in the contract file a written finding supporting issuance of the authorization. A written finding is not required when authorizing use of Government supply sources in accordance with 51.101(c). Except for findings under 51.101(a)(3), the determination shall be based on, but not limited to, considerations of the following factors:
(1) The administrative cost of placing orders with Government supply sources and the program impact of delay factors, if any.
(2) The lower cost of items available through Government supply sources.
(3) Suitability of items available through Government supply sources.
(4) Delivery factors such as cost and time.
(5) Recommendations of the contractor.
(b) Authorizations to subcontractors shall be issued through, and with the approval of, the contractor.
(c) Upon deciding to authorize a contractor to use Government supply sources, the contracting officer shall request, in writing, as applicable-
(1) A FEDSTRIP activity address code, through the agency’s central contact point for matters involving activity address codes, from the General Services Administration (GSA) FXS Washington, DC 20406;
(2) A MILSTRIP activity address code from the appropriate Department of Defense (DoD) service point listed in Section 1 of the Introduction to the DoD Activity Address Directory;
(3) Approval for the contractor to use Department of Veterans Affairs (VA) supply sources from the Executive Director, Office of Acquisition and Logistics (003A), Department of Veterans Affairs, 810 Vermont Avenue, NW, Washington DC 20420; or
(4) Approval from the appropriate agency for the contractor to use a Government supply source other than those identified in paragraphs (c)(1) through (c)(3) of this section.
(d) Each request made under paragraph (c) of this section shall contain-
(1) The complete address(es) to which the contractor’s mail, freight, and billing documents are to be directed;
(2) A copy of the contracting officer’s letter of authorization to the contractor;
(3) The prime contract number(s); and
(4) The effective date and duration of each contract.
(e) In each authorization to the contractor, the contracting officer-
(1) Shall cite the contract number(s) involved;
(2) Shall, when practicable, limit the period of the authorization;
(3) Shall specify, as appropriate, that-
(i) When requisitioning from GSA or DoD, the contractor shall use FEDSTRIP or MILSTRIP, as appropriate, and include the activity address code assigned by GSA or DoD; and
(ii) When requisitioning from the VA, the contractor should use FEDSTRIP or MILSTRIP, as appropriate, https://www.gsa.gov/forms-library/order-supplies-and-services-0" target="_blank">Optional Form 347, Order for Supplies or Services (see 53.302-347), or an agency-approved form;
(4) May include any other limitations or conditions deemed necessary. For example, the contracting officer may-
(i) Authorize purchases from Government supply sources of any overhead supplies, but no production supplies;
(ii) Limit any authorization requirement to use Government sources to a specific dollar amount, thereby leaving the contractor free to make smaller purchases from other sources if so desired;
(iii) Restrict the authorization to certain facilities or to specific contracts; or
(iv) Provide specifically if vesting of title is to differ from other property acquired or otherwise furnished by the contractor for use under the contract; and
(5) Shall instruct the contractor to comply with the applicable policies and procedures prescribed in this subpart.
(f) After issuing the authorization, the authorizing agency shall be responsible for-
(1) Ensuring that contractors comply with the terms of their authorizations and that supplies and services obtained from Government supply sources are properly accounted for and properly used;
(2) Any indebtedness incurred for supplies or services and not satisfied by the contractor; and
(3) Submitting, in writing, to the appropriate Government sources, address changes of the contractor and deletions when contracts are completed or terminated.