Purchase priorities
Federal agencies must strictly follow the mandated order of precedence—FPI first for supplies, AbilityOne first for services—when purchasing items on the Procurement List, with waivers required for exceptions.
Overview
FAR 8.704 establishes the mandatory order of precedence for federal agencies when purchasing supplies and services that appear on both the Procurement List (AbilityOne Program) and the Federal Prison Industries (FPI) Schedule. Agencies must follow strict purchase priorities: for supplies, FPI is first, followed by AbilityOne nonprofit agencies, then commercial sources; for services, AbilityOne is first, then FPI or commercial sources. The regulation reinforces that no other FAR provision overrides these priorities, and a formal waiver from FPI is required before buying certain supplies from AbilityOne agencies if those items are also available from FPI. This ensures compliance with statutory requirements to support both FPI and AbilityOne programs, which provide employment opportunities for people who are blind, severely disabled, or incarcerated.
Key Rules
- Purchase Priorities for Supplies
- Agencies must first buy from FPI, then AbilityOne, then commercial sources if identical items are available from all.
- Purchase Priorities for Services
- Agencies must first buy from AbilityOne, then FPI or commercial sources.
- Mandatory Compliance
- No other FAR provision allows exceptions to these priorities.
- Waiver Requirement
- A formal waiver from FPI is needed before purchasing certain supplies from AbilityOne if those supplies are also available from FPI.
Responsibilities
- Contracting Officers: Must follow the prescribed order of precedence, obtain waivers when required, and ensure purchases comply with statutory mandates.
- Contractors: Should understand their position in the supply chain and eligibility to sell to the government based on these priorities.
- Agencies: Must enforce compliance, maintain documentation, and coordinate with FPI and AbilityOne as needed.
Practical Implications
- This section ensures government support for FPI and AbilityOne, impacting sourcing decisions and market access for contractors.
- Failure to follow priorities can result in procurement violations.
- Contractors should be aware of their eligibility and the waiver process to avoid delays or disqualification.