8.406
Ordering activity responsibilities
FAR 8.406 ensures ordering activities follow standardized procedures for placing, managing, and closing out orders under Federal Supply Schedules, protecting government interests and ensuring contractor accountability.
Overview
FAR 8.406 outlines the responsibilities of ordering activities (government agencies placing orders) when using Federal Supply Schedules (FSS). This section details the procedures and requirements for placing orders, inspecting and accepting goods or services, handling nonconformance, and managing contract terminations and disputes. It also covers the evaluation of contractor performance. The regulation ensures that ordering activities follow consistent processes to maintain compliance, protect government interests, and ensure contractor accountability under FSS contracts.
Key Rules
- Order Placement (8.406-1)
- Specifies how orders must be placed under FSS contracts, including required documentation and procedures.
- Inspection and Acceptance (8.406-2)
- Outlines the process for inspecting and accepting delivered goods or services to ensure they meet contract requirements.
- Remedies for Nonconformance (8.406-3)
- Provides steps for addressing contractor failures to meet contract terms, including corrective actions.
- Termination for Cause (8.406-4)
- Details procedures for terminating orders when the contractor fails to perform or comply with contract terms.
- Termination for the Government’s Convenience (8.406-5)
- Allows the government to terminate orders when it is in its best interest, even if the contractor is not at fault.
- Disputes (8.406-6)
- Establishes procedures for resolving disputes between the government and contractors.
- Contractor Performance Evaluation (8.406-7)
- Requires evaluation and documentation of contractor performance for future reference.
Responsibilities
- Contracting Officers: Ensure orders are placed, inspected, and accepted per FSS procedures; manage remedies, terminations, and disputes; evaluate contractor performance.
- Contractors: Deliver goods/services as ordered, comply with inspection and acceptance, address nonconformance, and participate in performance evaluations.
- Agencies: Oversee compliance with FSS ordering procedures and maintain records of actions taken.
Practical Implications
- This section ensures that ordering activities follow standardized procedures for FSS orders, reducing risk and ensuring accountability.
- It impacts daily contracting by requiring documentation, timely inspections, and proper handling of disputes and terminations.
- Common pitfalls include inadequate documentation, failure to follow inspection protocols, and improper handling of nonconformance or terminations.