8.404
Use of Federal Supply Schedules
FAR 8.404 streamlines Federal Supply Schedule ordering but requires strict adherence to agency-specific, statutory, and reporting requirements, especially for order type selection and publicizing.
Overview
FAR 8.404 outlines the procedures and requirements for using Federal Supply Schedules (FSS), including the establishment of Blanket Purchase Agreements (BPAs) and placement of orders. It clarifies that many standard FAR parts (13, 14, 15, and 19) do not apply to FSS orders, and that such orders are considered to meet full and open competition requirements. The section details responsibilities for contracting officers, acquisition planning, pricing, order types, publicizing requirements, and compliance with statutory and regulatory obligations. It also addresses the use of fixed-price versus time-and-materials/labor-hour orders, reporting, and line item referencing for orders and BPAs.
Key Rules
- Exemptions from Certain FAR Parts
- Orders and BPAs under FSS are exempt from most of FAR Parts 13, 14, 15, and 19, but must follow specific FSS procedures.
- Agency-Specific Requirements
- Contracting officers must apply all relevant statutory and regulatory requirements of their agency, and agencies must provide this information.
- Acquisition Planning
- Orders require acquisition plans and must comply with consolidation/bundling rules if applicable.
- Pricing
- GSA schedule prices are pre-determined as fair and reasonable, but additional discounts may be sought; price evaluation is required for certain orders.
- Order Types for Services
- Fixed-price orders are preferred; time-and-materials/labor-hour orders require justification, D&F, and a ceiling price.
- Publicizing and Reporting
- Special publicizing rules apply for Recovery Act-funded actions and limited-source justifications; service contract reporting is required.
- Line Item Referencing
- Orders/BPAs must reference the correct special item numbers and line items; new line items must be established for open market items.
Responsibilities
- Contracting Officers: Ensure compliance with agency-specific requirements, acquisition planning, pricing, order type selection, publicizing, and reporting. Prepare D&F for non-fixed-price orders and reference correct line items.
- Contractors: Respond to RFQs, comply with order terms, and provide required reporting for service contracts.
- Agencies: Provide statutory/regulatory requirements to contracting officers and ensure compliance with publicizing and reporting obligations.
Practical Implications
- This section streamlines FSS ordering by exempting it from many standard FAR procedures, but still requires careful compliance with agency-specific and statutory requirements. Contracting officers must be diligent in acquisition planning, order type justification, and publicizing/reporting, especially for high-value or special funding actions. Common pitfalls include failing to properly justify time-and-materials orders, missing reporting requirements, or not referencing correct line items.