Exceptions
FAR 8.605 allows agencies to bypass mandatory FPI purchases in specific situations without a waiver, provided certain criteria are met and documented.
Overview
FAR 8.605 outlines specific exceptions to the mandatory requirement for federal agencies to purchase supplies from Federal Prison Industries, Inc. (FPI). This section details circumstances where purchases from FPI are not required and a waiver is not necessary. These exceptions include situations where FPI products are not comparable to private sector offerings, urgent public exigency, availability of used or excess supplies, overseas acquisitions, purchases under the micro-purchase threshold, items FPI offers on a competitive basis, and acquisition of services. Contracting officers must ensure compliance with these exceptions and document determinations as required.
Key Rules
- Non-Comparable FPI Items
- If FPI items do not meet the government’s needs in price, quality, or delivery, and the acquisition follows FAR 8.602(a)(4), FPI purchase is not mandatory.
- Public Exigency
- Immediate delivery or performance needs override the FPI purchase requirement.
- Used or Excess Supplies
- If suitable used or excess supplies are available, FPI purchase is not required.
- Overseas Acquisitions
- Supplies acquired and used outside the U.S. are exempt from FPI requirements.
- Micro-Purchases
- Purchases totaling $3,500 or less are exempt.
- Competitive FPI Items
- Items FPI offers only on a competitive basis (not mandatory) are exempt.
- Services
- Acquisition of services is not subject to FPI requirements.
Responsibilities
- Contracting Officers: Must determine and document when exceptions apply, especially for non-comparable items, and ensure acquisitions comply with FAR 8.602(a)(4) when relevant.
- Contractors: Should be aware of when FPI sourcing is not required and ensure their offers meet exception criteria.
- Agencies: Oversee compliance and proper documentation of exceptions.
Practical Implications
- This section clarifies when agencies can bypass FPI without a waiver, streamlining procurement in specific scenarios.
- It helps avoid unnecessary delays or costs when FPI products are unsuitable or urgent needs arise.
- Common pitfalls include failing to document determinations or misapplying exceptions, leading to compliance issues.