8.405-2
Ordering procedures for services requiring a statement of work
FAR 8.405-2 mandates structured, competitive, and well-documented procedures for ordering services requiring a statement of work under Federal Supply Schedules, with requirements scaling by order value.
Overview
FAR 8.405-2 outlines the required procedures for ordering services that require a statement of work (SOW) under Federal Supply Schedule (FSS) contracts, specifically when services are priced at hourly rates. It details how agencies must prepare SOWs, issue requests for quotations (RFQs), evaluate responses, and document their actions. The regulation establishes different requirements based on the value of the order (micro-purchase threshold, simplified acquisition threshold, and above), ensuring competition and transparency in the ordering process. It also addresses the use of time-and-materials and labor-hour orders, and sets forth minimum documentation standards for each order placed.
Key Rules
- Statement of Work (SOW) Requirements
- SOWs must clearly describe the work, location, period of performance, deliverables, performance standards, and any special requirements. Performance-based SOWs are preferred.
- RFQ and Competition Procedures
- Agencies must provide RFQs (including SOW and evaluation criteria) to appropriate schedule contractors, with specific competition requirements depending on the order value. For orders above the micro-purchase threshold, at least three contractors must be solicited unless justified otherwise.
- Evaluation and Award
- All quotes must be evaluated using the stated criteria, with award made to the best value contractor. Agencies must notify unsuccessful offerors and provide explanations when requested.
- Documentation
- Agencies must document the contracts considered, services purchased, evaluation methodology, price reasonableness, and compliance with competition requirements, especially for orders above the simplified acquisition threshold.
Responsibilities
- Contracting Officers: Must ensure proper SOW preparation, competition, evaluation, award, and documentation. Responsible for compliance with thresholds and justification requirements.
- Contractors: Must respond to RFQs with compliant quotes and be prepared for fair competition and evaluation.
- Agencies: Must oversee adherence to procedures, maintain records, and ensure transparency and fairness in the ordering process.
Practical Implications
- This section ensures fair competition, transparency, and value in acquiring services through FSS. It impacts daily contracting by requiring careful documentation, competitive solicitation, and clear SOWs. Common pitfalls include inadequate competition, insufficient documentation, or failure to justify exceptions, which can lead to protests or audit findings.