8.705-4 Compliance with orders
Source: FAR 8.705-4 on acquisition.gov
FAR 8.705-4 establishes clear procedures for managing delivery changes, nonperformance, and cancellations for AbilityOne orders, ensuring compliance and minimizing supply disruptions.
Overview
FAR 8.705-4 outlines the procedures and responsibilities for ensuring compliance with orders placed under the AbilityOne Program, which provides products and services from nonprofit agencies employing people who are blind or have significant disabilities. The section details communication requirements, procedures for handling delivery schedule changes, steps for addressing nonperformance, and the process for order cancellation and purchase exceptions.
Key Rules
- Lead Time Communication
- Central nonprofit agencies must promptly inform ordering offices of any changes in lead times to minimize the need for delivery extensions.
- Schedule Revisions
- Ordering offices should grant reasonable requests for delivery or completion schedule changes, or, if not feasible, seek order reallocation or purchase exceptions.
- Nonperformance Resolution
- Ordering offices must attempt to resolve performance issues directly with the nonprofit agency, escalating to the central nonprofit agency and then the Committee if unresolved.
- Order Cancellation and Purchase Exceptions
- If cancellation is necessary, the ordering office must notify the central nonprofit agency and, if possible, request reallocation. If reallocation is not possible, a purchase exception may be granted, with Committee approval required for exceptions of $25,000 or more.
Responsibilities
- Contracting Officers: Communicate with central nonprofit agencies, process schedule changes, resolve nonperformance, and follow escalation and cancellation procedures.
- Contractors (AbilityOne Nonprofit Agencies): Notify of lead time changes, request schedule revisions as needed, and address performance issues.
- Agencies: Oversee compliance, manage exceptions, and escalate unresolved issues to the Committee.
Practical Implications
- Ensures timely and transparent communication between ordering offices and AbilityOne agencies.
- Provides a structured process for handling delays, nonperformance, and order cancellations.
- Helps maintain compliance with AbilityOne Program requirements and minimizes disruptions in government supply chains.
(a) The central nonprofit agency shall inform the ordering office of changes in lead time experienced by its AbilityOne participating nonprofit agencies to minimize requests for extensions once the ordering office places an order.
(b) The ordering office shall grant a request by a central nonprofit agency or AbilityOne participating nonprofit agency for revision in the delivery or completion schedule, if feasible. If extension of the delivery or completion date is not feasible, the ordering office shall notify the appropriate central nonprofit agency and request that it reallocate the order, or grant a purchase exception authorizing acquisition from commercial sources.
(c) When an AbilityOne participating nonprofit agency fails to perform under the terms of an order, the ordering office shall make every effort to resolve the noncompliance with the nonprofit agency involved and to negotiate an adjustment before taking action to cancel the order. If the problem cannot be resolved with the nonprofit agency, the ordering office shall refer the matter for resolution first to the central nonprofit agency and then, if necessary, to the Committee.
(d) When, after complying with 8.705-4(c), the ordering office determines that it must cancel an order, it shall notify the central nonprofit agency and, if practical, request a reallocation of the order. When the central nonprofit agency cannot reallocate the order, it shall grant a purchase exception permitting use of commercial sources, subject to approval by the Committee when the value of the purchase exception is $25,000 or more.