Purchase priorities
Federal agencies must follow a strict order—FPI, then AbilityOne, then commercial sources—when purchasing supplies or services available from multiple sources.
Overview
FAR 8.603 establishes the mandatory order of precedence for federal agencies when purchasing supplies and services that are available from both Federal Prison Industries, Inc. (FPI) and nonprofit agencies participating in the AbilityOne Program. This section ensures that agencies follow a specific hierarchy to support government priorities, including the rehabilitation of prisoners and employment of people who are blind or severely disabled, before turning to commercial sources.
Key Rules
- Supplies Purchase Priority
- Agencies must first consider FPI for supplies, then AbilityOne nonprofit agencies, and only then commercial sources if the first two cannot meet the requirement.
- Services Purchase Priority
- For services, agencies must first consider AbilityOne nonprofit agencies, then FPI or commercial sources if AbilityOne cannot fulfill the need.
Responsibilities
- Contracting Officers: Must verify availability from FPI and AbilityOne sources and document compliance with the priority order before purchasing from commercial sources.
- Contractors: Should be aware that agencies are required to check FPI and AbilityOne sources before soliciting commercial offers.
- Agencies: Must ensure procurement actions comply with the established purchase priorities and maintain records of compliance.
Practical Implications
- This regulation exists to promote social and economic objectives through federal procurement.
- It impacts daily contracting by requiring additional market research and documentation before turning to commercial vendors.
- Common pitfalls include failing to check FPI or AbilityOne availability, which can result in procurement delays or protests.