U.S. flag
          An official website of the United States Government  Main navigation
  

        

              Data Initiatives
                              Regulations
                                                                        Row 1
                                              FAR FAR
                              Smart Matrix Smart Matrix
                              Chapter 99 (CAS) Chapter 99 (CAS)
                              Row 2
                                              DFARS DFARS
                              DFARSPGI DFARSPGI
                              AFARS AFARS
                              DAFFARS DAFFARS
                              DAFFARS MP DAFFARS MP
                              DARS DARS
                              DLAD DLAD
                              NMCARS NMCARS
                              Row 3
                                              SOFARS SOFARS
                              TRANSFARS TRANSFARS
                              AGAR AGAR
                              AIDAR AIDAR
                              CAR CAR
                              DEAR DEAR
                              DIAR DIAR
                              DOLAR DOLAR
                              Row 4
                                              DOSAR DOSAR
                              DTAR DTAR
                              EDAR EDAR
                              EPAAR EPAAR
                              FEHBAR FEHBAR
                              GSAM/R GSAM/R
                              HHSAR HHSAR
                              HSAR HSAR
                              Row 5
                                              HUDAR HUDAR
                              IAAR IAAR
                              JAR JAR
                              LIFAR LIFAR
                              NFS NFS
                              NRCAR NRCAR
                              TAR TAR
                              VAAR VAAR
                              Tools
                                                                        Archives
                              Smart Matrix
                              Regulations Search
                              Acquisition Regulation Comparator (ARC)
                              Policy Network
                                                                        CAOC
                              CAAC
                              FAR Council
                              ISDC
 Breadcrumb
        Home
                            Regulations
                            General Services Acquisition Manual (GSAM)
                            Part 517 - Special Contracting Methods
        
                  GSAM
GSAM
Change Number: Change 178 GSAR Case 2020-G511 Effective Date: 03/25/2024
PartPart 501Part 502Part 503Part 504Part 505Part 506Part 507Part 508Part 509Part 510Part 511Part 512Part 513Part 514Part 515Part 516Part 517Part 518Part 519Part 520Part 521Part 522Part 523Part 524Part 525Part 526Part 527Part 528Part 529Part 530Part 531Part 532Part 533Part 534Part 535Part 536Part 537Part 538Part 539Part 540Part 541Part 542Part 543Part 544Part 545Part 546Part 547Part 548Part 549Part 550Part 552Part 553Part 570Part 571
Subpart517.1517.2517.5
Section
Leave this field blank
        
                  

                                
                  
        « PreviousNext »
Part 517 - Special Contracting MethodsPart 517 - Special Contracting Methods       Subpart 517.1 - Multi-year Contracting                                                         517.101 Authority.                                                            517.103 Definitions.                                                            517.109 Contract clause.                                                                             Subpart 517.2 - Options                                                         517.200 Scope of subpart.                                                            517.202 Use of options.                                                            517.204 Contracts.                                                            517.207 Exercise of options.                                                            517.208 Solicitation provisions.                                                                             Subpart 517.5 - Interagency Acquisitions                                                         517.502 Procedures.                                                                           517.502-70 Information Technology Procurements.    **Parent topic:**  General Services Administration Acquisition ManualSubpart 517.1 - Multi-year Contracting 	  517.101 Authority. 		    (a) In addition to the multi-year authority described in FAR 17.101, GSA is authorized to enter into contracts for periods not to exceed– 					           						             							              (1)  Five years for the inspection, maintenance, and repair of fixed building equipment in federally owned buildings (  40 U.S.C. 581(c)(6)); or 						             						             							              (2)  Ten years for public utility services (  40 U.S.C. 501(b)(1)(B)). 						             					           				         				         					          (b)  Contracting officers may award contracts under the authority of paragraph (a)(1) or paragraph (a)(2) of this section without a cancellation clause.517.103 Definitions. 		    “Fixed equipment in federally-owned buildings” means all GSA mechanical equipment, including heating/cooling (geothermal), ventilation, electrical (wind/photovoltaic), elevator, escalator, and fire safety systems, components, and devices.517.109 Contract clause. 		    Use of the FAR clause at   52.217-2 is optional in multi-year contracts authorized by— 			       				         					          (a)                     40 U.S.C. 581(c)(6) for the inspection, maintenance, and repair of fixed equipment in a federally-owned building; and 				         				         					          (b)                     40 U.S.C. 501(b)(1)(B) for public utility services.Subpart 517.2 - Options 	  517.200 Scope of subpart. 		    (a)  Except as provided in paragraph (b) of this section, this subpart applies to contracts for supplies and services, including architect-engineer services. 				         				         					          (b)  Policies and procedures for the use of options in solicitation provisions and contract clauses for services involving construction, alteration, or repair (including dredging, excavating, and painting) of buildings, bridges, roads, or other kinds of real property are prescribed in  536.270. FAR subpart 17.2 and this subpart do not apply to the use of options in solicitation provisions and contract clauses for services involving construction, alteration, or repair (including dredging, excavating, and painting) of buildings, bridges, roads, or other kinds of real property.517.202 Use of options. 		    (a) Options may be used when they meet one or more of the following objectives: 					           						             							              (1)  Reduce procurement lead time and associated costs. 						             						             							              (2)  Ensure continuity of contract support. 						             						             							              (3)  Improve overall contractor performance. 						             						             							              (4)  Facilitate longer term contractual relationships with those contractors that continually meet or exceed quality performance expectations. 						             					           				         				         					          (b)  An option is normally in the Government’s interest in the following circumstances: 					           						             							              (1)  There is an anticipated need for additional supplies or services during the contract term. 						             						             							              (2)  When there is both a need for additional supplies or services beyond the basic contract period and the use of multi-year contracting authority is inappropriate. 						             						             							              (3)  There is a need for continuity of supply or service support. 						             					           				         				         					          (c)  An option shall not be used if the market price is likely to change substantially and an economic price adjustment clause inadequately protects the Government's interest.517.204 Contracts. 		    (a)                   **Telecommunication contracts may not exceed 10 years. 				         				         					          (b)  Public utility contracts are limited to 10 years (  40 U.S.C. 501(b)(1)(B). 				         				         					          (c)                   *Requests to exceed 5-year limitation*. A deviation request to exceed the 5-year limitation specified in FAR 17.204(e) must provide all the following information: 					           						             							              (1)  Clearly explain the contract(s) and organization(s) covered by the request. 						             						             							              (2)  Support the need for and reasonableness of the extension. Consider factors such as the following: 							               								                 									                  (i)  The results of market research. 								                 								                 									                  (ii)  Stability of the requirement(s). 								                 								                 									                  (iii)  Benefits to the Government. 								                 								                 									                  (iv)  Use of a performance-based contracting approach. 								                 								                 									                  (v)  Availability of funds to cover estimated cancellation costs as well as costs for the first contract period. 								                 								                 									                  (vi)  Customary commercial practice. 								                 								                 									                  (vii)  Mechanisms to adjust for economic fluctuations. 								                 							               						             					           				         				         					          (d)                   *Approval authority*. Deviation requests to exceed the 5-year limitations specified in FAR 17.204(e) must be approved by– 					           						             							              (1)  The head of the contracting activity for individual contracts; and 						             						             							              (2)  GSA’s Senior Procurement Executive for classes of contracts.517.207 Exercise of options.       In addition to the requirements of FAR   17.207, the contracting officer shall:                                       (a) Document the contract file with the rationale for exercising the contract option to extend the period of performance if the contractor's performance under the contract is less than satisfactory.                                          (b) Determine that the option price is fair and reasonable.                                          (c)If applicable, consider any tiered solutions (see subpart  Subpart 507.71 - Category Management) or mandated solutions that were otherwise not available at the time of award.                                          (d) Conduct a Personal Identity Verification card review to determine the need for continued access, see 504.1370(c). This function may be delegated to the COR.                                          (e)For FSS contracts, verify the contractor is currently in compliance with GSAR clause  552.238-77 Submission and Distribution of Authorized Federal Supply Schedule (FSS) Price Lists., Submission and Distribution of Authorized Federal Supply Schedule Price Lists.                                          (f) If applicable, verify that the contractor’s subcontracting plan goals have been reviewed and approved (inclusive of any amendments) and review the contractor’s performance and compliance under the subcontracting plan (see FAR   19.705-6 and   19.706, and  519.706 Responsibilities of the cognizant administrative contracting officer.).517.208 Solicitation provisions. 		    (a) Insert a provision substantially the same as the provision at  552.217-70, Evaluation of Options, in solicitations for the Special Order Program when the following conditions apply: 					           						             							              (1)The solicitation contains an option to extend the term of the contract; and 						             						             							              (2)The contract will be fixed price and contain an economic price adjustment clause. 						             					           				         				         					          (b)Insert a provision substantially the same as the provision at  552.217-71, Notice Regarding Option(s), in solicitations that include an option for increased quantities of supplies or services or an option clause to extend the term of the contract.Subpart 517.5 - Interagency Acquisitions 	  517.502 Procedures. 		    (a)                     *General*. 					           						             							              (1)                           GSA provides interagency acquisition (IA) services to support the mission of federal agencies, foster competition and use of economies of scale, and provide options for agencies to meet their administrative and procurement needs. 						             						             							              (2)                           The Office of Acquisition Policy maintains tools and resources for the acquisition workforce on the GSA Acquisition Portal (  http://insite.gsa.gov/interagencyacquisition). 						                                                                                            (3)When conducting interagency acquisitions, an interagency agreement must be signed by the HCA. HCAs may designate approval authority for the interagency agreement to a level no lower than the Contracting Director.                                                                                                                     (4)For PBS Reimbursable Work Authorizations (RWA), only authorized PBS Officials shall accept an RWA in accordance with PBS National RWA Policy available at   www.gsa.gov/rwa.                                      					           				         				         					          (b)                     *Cut-Off Dates*. 					           						             							              (1)                           Heads of Contracting Activities shall devise and publicize cut-off dates to accept interagency acquisitions for their respective organization(s) in support of this subpart. The decision to accept funds near the end of the fiscal year must be determined on a case-by-case basis taking into consideration the following at a minimum: 							               								                 									                  (i)                                 funding requesting agency assurance that the funds are current; 								                 								                 									                  (ii)                                 understanding of the type of funds (*e.g.* one-year, multi-year, no-year); 								                 								                 									                  (iii)                                 time required for GSA to properly obligate the funds; and 								                 								                 									                  (iv)                                 confirmation that the requesting agency has submitted a “bona fide needs” statement. 								                 							               						             						             							              (2)                           Cut-off dates do not apply when accepting no-year funds. Cutoff dates do not apply to multi-year funds not near expiration or within the final year that the funds are eligible for use. 						             						             							              (3)                           Once accepted, GSA must expeditiously and diligently begin work on all interagency acquisitions it accepts. 						             					           				         				         					          (c)                     *Reasonable Time*. 					           						             							              (1)                           Policy. When establishing interagency agreements, contracting activities must obligate funds in a reasonable time. 						             						             							              (2)                           Definition. A reasonable time is considered to be 90 calendar days unless otherwise established in the interagency agreement or other policy. Contracting activities must examine with particular care if the 90 calendar day acquisition lead time can be achieved by: 							               								                 									                  (i)                                 using an existing contract or task/delivery order which can be awarded or modified expeditiously to meet the requesting agency’s requirement; and 								                 								                 									                  (ii)                                 validating that the requesting agency-specific fiscal policy attached to the funds (*e.g.*, DoD 7000.14-R Financial Management Regulation Volume 11A Chapter 18) does not have any applicable restrictions which would prevent the use of 90 calendar days as a "reasonable time". 								                 							               						             						             							              (3)                           Criteria for establishing “reasonable time”. For interagency acquisitions in which the contracting activity has determined the “reasonable time” to be in excess of 90 calendar days, the contracting officers must: 							               								                 									                  (i)                                 ensure that the “reasonable time” is mutually agreed upon and documented between the requesting agency and the GSA contracting activity at the time funds' are accepted (*e.g.* date specified on GSA Form 2957); 								                 								                 									                  (ii)                                 ensure that the requesting agency-specific fiscal policy restrictions are adhered to (*e.g.*, DoD 7000.14-R Financial Management Regulation Volume 11A Chapter 18); and 								                 								                 									                  (iii)                                 document the rationale for establishing a “reasonable time” which is in excess of 90 calendar days. 								                 							               						             					           				         				         					          (d)                     *Periodic Reviews*. Contracting officers must review all interagency acquisition obligations for goods or services that have been ordered but not yet received (undelivered orders/unfilled customer orders) at fiscal year-end. Generally speaking, if the interagency acquisition is for goods or services that were not delivered within the funds period of availability, the funds must be deobligated and current funds used, unless the goods could not be delivered because of delivery, production or manufacturing lead time, or unforeseen delays that are out of the control and not previously contemplated by the contracting parties at the time of contracting. 				         				         					          (e)                                      *Resolving Interagency Policy Differences.* Any inconsistency in the applicability of requesting agency and GSA policy shall be resolved by considering the following: 					           						             							              (1)                           Where there is a conflict between the requesting agency and GSA policy, refer to the interagency agreement to resolve the conflict. If the interagency policy is not clear, document what the conflict is and request guidance as to what the governing policy is from the Office of General Council (OGC). 						             						             							              (2)                           When the requesting agency’s policy is less restrictive than GSA’s policy (e.g., higher dollar authority, streamlined procedures) and the interagency agreement does not identify which policy to follow, the contracting officer has discretion on which policy to follow. However, the contracting officer must consult with Service-level acquisition management (*e.g.*, FAS OPC, PBS OAM) and OGC if following the less restrictive policy to ensure GSA has adequate controls in place and has the authority to utilize the less restrictive policy. 						             						              						               (3)                         A number of agencies have authorities which GSA does not have. GSA cannot use a requesting agency’s given program authority (e.g., Other Transaction Authority (OTA)) unless the authority is specifically delegated to GSA by the requesting agency in a formal delegation. 	  517.502-70 Information Technology Procurements. 		    (a)  The requesting agency is responsible for the required information technology coordination and approval outlined in Federal Information and Technology Acquisition Reform Act (FITARA) (Pub L. No. 113-291) if the procurement involves information technology for the use of the requesting agency and not for GSA use. This requirement for CIO coordination by the requesting agency should be confirmed by GSA as the servicing agency by ensuring this CIO coordination requirement is documented in the interagency agreement or a separate document. 				         				         					          (b) The requesting agency is responsible for identifying any special or higher level requirements for network connectivity (e.g. security, basic connectivity and communications) beyond the minimum Internet Protocol Version 6 (IPv6) requirements in FAR 11.002(g) for information technology that will have the capability to access the Internet or any network utilizing Internet protocol (IPv4 or IPv6). The special or higher level requirements as well as any deviation from the requirement in FAR 11.002(g) shall be documented in the interagency agreement.
« PreviousNext »
FavoriteX

      GSAM Parts
            Regulations GSAM Menu
  

        

              Index
                              501
                              502
                              503
                              504
                              505
                              506
                              507
                              508
                              509
                              510
                              511
                              512
                              513
                              514
                              515
                              516
                              517
                              518
                              519
                              520
                              521
                              522
                              523
                              524
                              525
                              526
                              527
                              528
                              529
                              530
                              531
                              532
                              533
                              534
                              535
                              536
                              537
                              538
                              539
                              540
                              541
                              542
                              543
                              544
                              545
                              546
                              547
                              548
                              549
                              550
                              552
                              553
                              570
                              571

      ×
        Data Initiatives
                                                              Regulations
                                                              Tools
                                              Archives
                                                              Smart Matrix
                                                              Regulations Search
                                                              Acquisition Regulation Comparator (ARC)
                                                              Policy Network
                                              CAO.gov
                                                        CAO Home
                                                              Council Member
                                                                    Large Agencies
                                                              Small Agencies
                                                              Council Defining Documents
                                                                    CAOC History
                                                              CAOC Charter
                                                              Civilian Agency Acquisition Council (CAAC)
                                                              Federal Acquisition Regulatory Council
                                                              Interagency Suspension and Debarment Committee (ISDC)
                                                              Search
 ˄ Top Sign up for FAR News

                            Share the FAR
                        Upper Footer Menu
  

        
      Useful Links
                              FAR Resources
                              Training
                              Acquisition Systems
            
                            **Contact Us/FAQs**
                        **Privacy and Security Notice**
                        **Accessibility Aids**
                        **Last Updated 03/29/2024**
 ACQUISITION.GOV
                An official website of the General Services Administration About GSA
                Accessibility support
                FOIA requests
                No FEAR Act data
                Office of the Inspector General
                Performance reports
                Privacy policy Looking for U.S. government information and services?
            Visit USA.gov
 «
    
    Tt