Use of Federal Supply Schedules
FAR 8.404 streamlines Federal Supply Schedule ordering but requires strict adherence to agency-specific, statutory, and documentation requirements, especially for non-fixed-price orders and publicizing certain actions.
Overview
FAR 8.404 outlines the procedures and requirements for using Federal Supply Schedules (FSS), including the placement of orders and establishment of Blanket Purchase Agreements (BPAs). It clarifies that most procedures from Parts 13, 14, 15, and 19 do not apply to FSS orders, and such orders are considered to meet full and open competition requirements. The section details acquisition planning, pricing, order types, publicizing requirements, and compliance with statutory and regulatory obligations. It also addresses the use of fixed-price, time-and-materials, and labor-hour orders, including the need for determinations and findings (D&F) when non-fixed-price orders are used. Additional requirements apply for orders funded by the American Recovery and Reinvestment Act and for orders exceeding certain thresholds. The section emphasizes the importance of referencing correct line items and ensuring service contract reporting compliance.
Key Rules
- Applicability and Competition
- Orders and BPAs under FSS are exempt from most FAR Parts 13, 14, 15, and 19 requirements and are considered to use full and open competition.
- Agency-Specific Requirements
- Contracting officers must apply all relevant statutory and regulatory requirements of the ordering agency.
- 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.
- Order Types
- Preference for fixed-price orders; time-and-materials/labor-hour orders require D&F and ceiling price.
- Publicizing and Reporting
- Special publicizing rules apply for Recovery Act-funded actions and limited-source justifications.
- Line Items and Reporting
- Orders must reference correct schedule line items and comply with service contract reporting requirements.
Responsibilities
- Contracting Officers: Ensure compliance with agency-specific requirements, acquisition planning, proper order type selection, D&F documentation, publicizing, and correct line item referencing.
- Contractors: Respond to RFQs, comply with order terms, and provide required reporting.
- Agencies: Provide necessary regulatory/statutory information to contracting officers and ensure oversight of acquisition planning and reporting.
Practical Implications
- FAR 8.404 streamlines FSS ordering but requires careful compliance with agency-specific and statutory requirements. Contracting officers must document decisions, especially for non-fixed-price orders, and ensure transparency for certain high-value or Recovery Act-funded actions. Common pitfalls include failing to properly document D&Fs, neglecting acquisition planning, or misapplying publicizing requirements.