8.707
Prices
FAR 8.707 requires agencies to use Committee-established fair market prices for AbilityOne items and services, with specific rules for adjustments, invoicing, and special requirements.
Overview
FAR 8.707 outlines the pricing policies for items and services acquired from nonprofit agencies under the AbilityOne Program (Procurement List). The section establishes that prices are set as fair market prices by the Committee for Purchase From People Who Are Blind or Severely Disabled, with specific rules for adjustments, invoicing, and agency involvement.
Key Rules
- Fair Market Prices Established by Committee
- All items on the Procurement List have prices set by the Committee, considered fair market value, and are f.o.b. origin.
- Price Adjustment Frequency
- Supply prices are typically adjusted semiannually; service prices are adjusted annually.
- Committee Authority and Agency Assistance
- The Committee may request agency assistance in price setting but can establish prices independently.
- Effective Date of Price Changes
- Price changes generally apply to orders received on or after the effective date, but exceptions can be made for earlier orders.
- Special Packing/Marking Costs
- Additional costs for non-standard packing, packaging, or marking must be itemized and reimbursed by the ordering office.
- Recommendations for Price Revisions
- Ordering offices can recommend price revisions to the Committee at any time.
Responsibilities
- Contracting Officers: Must use Committee-established prices, ensure correct application of price changes, and reimburse for special packing/marking costs.
- Contractors (Nonprofit Agencies): Must invoice separately for additional packing/marking and apply price changes as directed.
- Agencies: May assist in price setting and recommend price revisions to the Committee.
Practical Implications
- Ensures pricing transparency and fairness for AbilityOne acquisitions.
- Requires careful tracking of price changes and effective dates.
- Ordering offices must budget for and process additional costs for special requirements. Failure to follow these rules can result in payment disputes or noncompliance with AbilityOne mandates.