Part 8 - Required Sources of Supplies and

Services

8.000 Scope of part.

8.001 General.

8.002 Priorities for use of mandatory Government sources.

8.003 Use of other mandatory sources.

8.004 Use of other sources.

8.005 Contract clause.

Subpart 8.1 - Excess Personal Property

8.101 [Reserved]

8.102 Policy.

8.103 Information on available excess personal property.

8.104 Obtaining nonreportable property.

Subpart 8.2 - [Reserved]

Subpart 8.3 - [Reserved]

Subpart 8.4 - Federal Supply Schedules

8.401 Definitions.

8.402 General.

8.403 Applicability.

8.404 Use of Federal Supply Schedules.

8.405 Ordering procedures for Federal Supply Schedules.

8.405-1 Ordering procedures for supplies, and services not requiring a statement of work.

8.405-2 Ordering procedures for services requiring a statement of work.

8.405-3 Blanket purchase agreements (BPAs).

8.405-4 Price reductions.

8.405-5 Small business.

8.405-6 Limiting sources.
8.405-7 Payment.

8.406 Ordering activity responsibilities.

8.406-1 Order placement.

8.406-2 Inspection and acceptance.

8.406-3 Remedies for nonconformance.

8.406-4 Termination for cause.

8.406-5 Termination for the Government’s convenience.

8.406-6 Disputes.

8.406-7 Contractor Performance Evaluation.

Subpart 8.5 - [Reserved]

Subpart 8.6 - Acquisition from Federal Prison Industries, Inc.

8.601 General.

8.602 Policy.

8.603 Purchase priorities.

8.604 Waivers.

8.605 Exceptions.

8.606 Evaluating FPI performance.

8.607 Performance as a subcontractor.

8.608 Protection of classified and sensitive information.

Subpart 8.7 - Acquisition from Nonprofit Agencies Employing People Who Are Blind or Severely

Disabled

8.700 Scope of subpart.

8.701 Definitions.

8.702 General.

8.703 Procurement List.

8.704 Purchase priorities.

8.705 Procedures.

8.705-1 General.
8.705-2 Direct-order process.

8.705-3 Allocation process.

8.705-4 Compliance with orders.

8.706 Purchase exceptions.

8.707 Prices.

8.708 Shipping.

8.709 Payments.

8.710 Quality of merchandise.

8.711 Quality complaints.

8.712 Specification changes.

8.713 Optional acquisition of supplies and services.

8.714 Communications with the central nonprofit agencies and the Committee.

8.715 Replacement commodities.

8.716 Change-of-name and successor in interest procedures.

Subpart 8.8 - Acquisition of Printing and Related Supplies

8.800 Scope of subpart.

8.801 Definitions.

8.802 Policy.

Subpart 8.9 - [Reserved]

Subpart 8.10 - [Reserved]

Subpart 8.11 - Leasing of Motor Vehicles

8.1100 Scope of subpart.

8.1101 Definitions.

8.1102 Presolicitation requirements.

8.1103 Contract requirements.

8.1104 Contract clauses.

Parent topic: Federal Acquisition Regulation
8.000 Scope of part.

This part deals with prioritizing sources of supplies and services for use by the Government.

8.001 General.

Regardless of the source of supplies or services to be acquired, information technology acquisitions

shall comply with capital planning and investment control requirements in 40 U.S.C.11312 and OMB

CircularA-130.

8.002 Priorities for use of mandatory Government sources.

(a) Except as required by 8.003, or as otherwise provided by law, agencies shall satisfy requirements

for supplies and services from or through the mandatory government sources and publications listed

below in descending order of priority:

(1) Supplies.

(i) Inventories of the requiring agency.

(ii) Excess from other agencies (see subpart 8.1).

(iii) Federal Prison Industries, Inc. (see subpart 8.6).

(iv) Supplies which are on the Procurement List maintained by the Committee for Purchase From

People Who Are Blind or Severely Disabled (see subpart 8.7).

(v) Wholesale supply sources, such as stock programs of the General Services Administration (GSA)

(see 41 CFR 101-26.3), the Defense Logistics Agency (see 41 CFR 101-26.6), the Department of

Veterans Affairs (see 41 CFR 101-26.704), and military inventory control points.

(2) Services. Services that are on the Procurement List maintained by the Committee for Purchase

From People Who Are Blind or Severely Disabled (see subpart 8.7).

(b) Sources other than those listed in paragraph (a) of this section may be used as prescribed in 41

CFR 101-26.301 and in an unusual and compelling urgency as prescribed in 6.302-2 and in 41 CFR

101-25.101-5.

(c) The statutory obligation for Government agencies to satisfy their requirements for supplies or

services available from the Committee for Purchase From People Who Are Blind or Severely

Disabled also applies when contractors purchase the supplies or services for Government use.

8.003 Use of other mandatory sources.

Agencies shall satisfy requirements for the following supplies or services from or through specified
sources, as applicable:

(a) Public utility services (see part 41).

(b) Printing and related supplies (see subpart 8.8).

(c) Leased motor vehicles (see subpart 8.11).

(d) Strategic and critical materials (e.g., metals and ores) from inventories exceeding Defense

National Stockpile requirements (detailed information is available from the DLA Strategic Materials,

8725 John J. Kingman Rd., Suite 3229, Fort Belvoir, VA 22060-6223).

8.004 Use of other sources.

If an agency is unable to satisfy requirements for supplies and services from the mandatory sources

listed in 8.002 and 8.003, agencies are encouraged to consider satisfying requirements from or

through the non-mandatory sources listed in paragraph (a) of this section (not listed in any order of

priority) before considering the non-mandatory source listed in paragraph (b) of this section. When

satisfying requirements from non-mandatory sources, see 7.105(b) and part 19 regarding

consideration of small business, veteran-owned small business, service-disabled veteran-owned small

business, HUBZone small business, small disadvantaged business (including 8(a) participants), and

women-owned small business concerns.

(a)

(1) Supplies. Federal Supply Schedules, Governmentwide acquisition contracts, multi-agency

contracts, and any other procurement instruments intended for use by multiple agencies, including

blanket purchase agreements (BPAs) under Federal Supply Schedule contracts (e.g., Federal

Strategic Sourcing Initiative (FSSI) agreements accessible at http://www.gsa.gov/fssi (see also

5.601)).

(2) Services. Agencies are encouraged to consider Federal Prison Industries, Inc., as well as the

sources listed in paragraph (a)(1) of this section (see subpart 8.6).

(b) Commercial sources (including educational and non-profit institutions) in the open market.

8.005 Contract clause.

Insert the clause at 52.208-9, Contractor Use of Mandatory Sources of Supply and Services, in

solicitations and contracts that require a contractor to provide supplies or services for Government

use that are on the Procurement List maintained by the Committee for Purchase From People Who

Are Blind or Severely Disabled. The contracting officer shall identify in the contract schedule the

supplies or services that shall be purchased from a mandatory source and the specific source.
Subpart 8.1 - Excess Personal Property

8.101 [Reserved]

8.102 Policy.

When practicable, agencies shall use excess personal property as the first source of supply for

agency and cost-reimbursement contractor requirements. Agency personnel shall make positive

efforts to satisfy agency requirements by obtaining and using excess personal property (including

that suitable for adaptation or substitution) before initiating a contract action.

8.103 Information on available excess personal property.

Information regarding the availability of excess personal property can be obtained through—-

(a) Reviewing and requesting available excess personal property in GSAXcess® (see

https://gsaxcess.gov); and

(b) Personal contact with GSA or the activity holding the property.

8.104 Obtaining nonreportable property.

GSA will assist agencies in meeting their requirements for supplies of the types excepted from

reporting as excess by the Federal Management Regulations (41 CFR 102-36.220). Federal agencies

requiring such supplies should contact the appropriate GSA Personal Property Management office.

Visit www.gsa.gov/ppmo for contact information.

Subpart 8.2 - [Reserved]

Subpart 8.3 - [Reserved]

Subpart 8.4 - Federal Supply Schedules

8.401 Definitions.

As used in this subpartOrdering activity means an activity that is authorized to place orders, or establish blanket purchase

agreements (BPA), against the General Services Administration’s (GSA) Multiple Award Schedule

contracts. A list of eligible ordering activities is available at http://www.gsa.gov/schedules (click "For

Customers Ordering from Schedules" and then "Eligibility to Use GSA Sources").
Multiple Award Schedule (MAS) means contracts awarded by GSA or the Department of Veterans

Affairs (VA) for similar or comparable supplies, or services, established with more than one supplier,

at varying prices. The primary statutory authorities for the MAS program are 41 U.S.C. 152(3),

Competitive Procedures, and 40 U.S.C. 501, Services for Executive Agencies.

Requiring agency means the agency needing the supplies or services.

Schedules e-Library means the on-line source for GSA and VA Federal Supply Schedule contract

award information. Schedules e-Library may be accessed at http://www.gsa.gov/elibrary.

Special Item Number (SIN) means a group of generically similar (but not identical) supplies or

services that are intended to serve the same general purpose or function.

8.402 General.

(a) The Federal Supply Schedule program is also known as the GSA Schedules Program or the

Multiple Award Schedule Program. The Federal Supply Schedule program is directed and managed

by GSA and provides Federal agencies (see 8.004) with a simplified process for obtaining

commercial supplies and commercial services at prices associated with volume buying. Indefinite

delivery contracts are awarded to provide supplies and services at stated prices for given periods of

time. GSA may delegate certain responsibilities to other agencies (e.g., GSA has delegated authority

to the VA to procure medical supplies under the VA Federal Supply Schedules program). Orders

issued under the VA Federal Supply Schedule program are covered by this subpart. Additionally, the

Department of Defense (DoD) manages similar systems of schedule-type contracting for military

items; however, DoD systems are not covered by this subpart.

(b) GSA schedule contracts require all schedule contractors to publish an "Authorized Federal

Supply Schedule Pricelist" (pricelist). The pricelist contains all supplies and services offered by a

schedule contractor. In addition, each pricelist contains the pricing and the terms and conditions

pertaining to each Special Item Number that is on schedule. The schedule contractor is required to

provide one copy of its pricelist to any ordering activity upon request. Also, a copy of the pricelist

may be obtained from the Federal Supply Service by submitting a written e-mail request to

schedules.infocenter@gsa.gov or by telephone at 1-800-488-3111. This subpart, together with the

pricelists, contain necessary information for placing delivery or task orders with schedule

contractors. In addition, the GSA schedule contracting office issues Federal Supply Schedules

publications that contain a general overview of the Federal Supply Schedule (FSS) program and

address pertinent topics. Ordering activities may request copies of schedules publications by

contacting the Centralized Mailing List Service through the Internet at http://www.gsa.gov/cmls,

submitting written e-mail requests to CMLS@gsa.gov; or by completing GSA Form 457, FSS

Publications Mailing List Application, and mailing it to the GSA Centralized Mailing List Service (7

SM), P.O. Box 6477, Fort Worth, TX 76115. Copies of GSA Form 457 may also be obtained from the

above-referenced points of contact.

(c)

(1) GSA offers an on-line shopping service called "GSA Advantage!" through which ordering

activities may place orders against Schedules. (Ordering activities may also use GSA Advantage! to

place orders through GSA’s Global Supply System, a GSA wholesale supply source, formerly known

as "GSA Stock" or the "Customer Supply Center." FAR subpart 8.4 is not applicable to orders placed

through the GSA Global Supply System.) Ordering activities may access GSA Advantage! through the
GSA Federal Supply Service Home Page (http://www.gsa.gov/fas) or the GSA Federal Supply

Schedule Home Page at http://www.gsa.gov/schedules.

(2) GSA Advantage! enables ordering activities to search specific information (i.e., national stock

number, part number, common name), review delivery options, place orders directly with Schedule

contractors (except see 8.405-6) and pay for orders using the Governmentwide commercial purchase

card.

(d)

(1) e-Buy, GSA’s electronic Request for Quotation (RFQ) system, is a part of a suite of on-line tools

which complement GSA Advantage!. E-Buy allows ordering activities to post requirements, obtain

quotes, and issue orders electronically. Posting an RFQ on e-Buy—

(i) Is one medium for providing fair notice to all schedule contractors offering such supplies and

services as required by, 8.405-2, and 8.405-3; and

(ii) Is required when an order contains brand-name specifications (see 8.405-6).

(2) Ordering activities may access e-Buy at http://www.ebuy.gsa.gov. For more information or

assistance on either GSA Advantage! or e-Buy, contact GSA at Internet e-mail address

gsa.advantage@gsa.gov.

(e) For more information or assistance regarding the Federal Supply Schedule Program, review the

following website: http://www.gsa.gov/schedules. Additionally, for on-line training courses regarding

the Schedules Program, review the following website: http://www.gsa.gov/training.

(f) For administrative convenience, an ordering activity contracting officer may add items not on the

Federal Supply Schedule (also referred to as open market items) to a Federal Supply Schedule

blanket purchase agreement (BPA) or an individual task or delivery order only if-

(1) All applicable acquisition regulations pertaining to the purchase of the items not on the Federal

Supply Schedule have been followed (e.g., publicizing (part 5), competition requirements (part 6),

acquisition of commercial products or commercial services (part 12), contracting methods (parts 

13, 14, and 15), and small business programs (part 19));

(2) The ordering activity contracting officer has determined the price for the items not on the

Federal Supply Schedule is fair and reasonable;

(3) The items are clearly labeled on the order as items not on the Federal Supply Schedule and they

conform to the rules for numbering line items at subpart 4.10; and

(4) All clauses applicable to items not on the Federal Supply Schedule are included in the order.

(g) When using the Governmentwide commercial purchase card as a method of payment, orders at

or below the micro-purchase threshold are exempt from verification in the System for Award

Management as to whether the contractor has a delinquent debt subject to collection under the

Treasury Offset Program (TOP).
8.403 Applicability.

(a) Procedures in this subpart apply to—

(1) Individual orders for supplies or services placed against Federal Supply Schedules contracts; and

(2) BPAs established against Federal Supply Schedule contracts.

(b) GSA may establish special ordering procedures for a particular schedule. In this case, that

schedule will specify those special ordering procedures. Unless otherwise noted, special ordering

procedures established for a Federal Supply Schedule take precedence over the procedures in

8.405.

Note: GSA-established ordering procedures for Order-Level Materials can be found at GSAR subpart

538-72 .

(c) In accordance with section 1427(b) of Public Law 108-136 (40 U.S.C. 1103 note), for

requirements that substantially or to a dominant extent specify performance of architect-engineer

services (as defined in 2.101), agencies—

(1) Shall use the procedures at subpart 36.6; and

(2) Shall not place orders for such requirements under a Federal Supply Schedule.

8.404 Use of Federal Supply Schedules.

(a) General. parts 13 (except 13.303-2(c)(3)), 14, 15, and 19 (except for the requirements at

19.102(b)(3) and 19.202-1(e)(1)(iii)) do not apply to BPAs or orders placed against Federal Supply

Schedules contracts (but see 8.405-5). BPAs and orders placed against a MAS, using the procedures

in this subpart, are considered to be issued using full and open competition (see 6.102(d)(3)).

Therefore, when establishing a BPA (as authorized by 13.303-2(c)(3)), or placing orders under

Federal Supply Schedule contracts using the procedures of 8.405, ordering activities shall not seek

competition outside of the Federal Supply Schedules or synopsize the requirement; but see

paragraph (g) of this section.

(b)

(1) The contracting officer, when placing an order or establishing a BPA, is responsible for applying

the regulatory and statutory requirements applicable to the agency for which the order is placed or

the BPA is established. The requiring agency shall provide the information on the applicable

regulatory and statutory requirements to the contracting officer responsible for placing the order.

(2) For orders over $600,000, see subpart 17.5 for additional requirements for interagency

acquisitions.

(c) Acquisition planning. Orders placed under a Federal Supply Schedule contract-

(1) Are not exempt from the development of acquisition plans (see subpart 7.1), and an information

technology acquisition strategy (see part 39);
(2) Shall comply with all FAR requirements for a consolidated or bundled contract when the order

meets the definition at 2.101(b) of "consolidation" or "bundling"; and

(3) Must, whether placed by the requiring agency, or on behalf of the requiring agency, be

consistent with the requiring agency’s statutory and regulatory requirements applicable to the

acquisition of the supply or service.

(d) Pricing. Supplies offered on the schedule are listed at fixed prices. Services offered on the

schedule are priced either at hourly rates, or at a fixed price for performance of a specific task (e.g.,

installation, maintenance, and repair). GSA has already determined the prices of supplies and fixedprice services, and rates for services offered at hourly rates, under schedule contracts to be fair and

reasonable. Therefore, ordering activities are not required to make a separate determination of fair

and reasonable pricing, except for a price evaluation as required by 8.405-2(d). By placing an order

against a schedule contract using the procedures in 8.405, the ordering activity has concluded that

the order represents the best value (as defined in FAR 2.101) and results in the lowest overall cost

alternative (considering price, special features, administrative costs, etc.) to meet the Government’s

needs. Although GSA has already negotiated fair and reasonable pricing, ordering activities may

seek additional discounts before placing an order (see 8.405-4).

(e) The procedures under subpart 33.1 are applicable to the issuance of an order or the

establishment of a BPA against a schedule contract.

(f) If the ordering activity issues an RFQ, the ordering activity shall provide the RFQ to any schedule

contractor that requests a copy of it.

(g)

(1) Ordering activities shall publicize contract actions funded in whole or in part by the American

Recovery and Reinvestment Act of 2009 (Pub. L. 111-5):

(i) Notices of proposed MAS orders (including orders issued under BPAs) that are for "informational

purposes only" exceeding $25,000 shall follow the procedures in 5.704 for posting orders.

(ii) Award notices for MAS orders (including orders issued under BPAs) shall follow the procedures

in 5.705.

(2) When an order is awarded or a Blanket Purchase Agreement is established with an estimated

value greater than the simplified acquisition threshold and supported by a limited-source

justification at 8.405-6 (a), the ordering activity contracting officer must-

(i) Publicize the action (see 5.301); and

(ii) Post the justification in accordance with 8.405-6 (a)(2).

(h) Type-of-order preference for services.

(1) The ordering activity shall specify the order type (i.e., firm-fixed price, time-and-materials, or

labor-hour) for the services offered on the schedule priced at hourly rates.

(2) Agencies shall use fixed-price orders for the acquisition of commercial services to the maximum

extent practicable.
(3)

(i) A time-and-materials or labor-hour order may be used for the acquisition of commercial services

only when it is not possible at the time of placing the order to estimate accurately the extent or

duration of the work or to anticipate costs with any reasonable degree of confidence.

(ii) Prior to the issuance of a time-and-materials or labor-hour order, the contracting officer shall-

(A) Execute a determination and findings (D&F) for the order, in accordance with paragraph

(h)(3)(iii) of this section that a fixed-price order is not suitable;

(B) Include a ceiling price in the order that the contractor exceeds at its own risk; and

(C) When the total performance period, including options, is more than three years, the D&F

prepared in accordance with this paragraph shall be signed by the contracting officer and approved

by the head of the contracting activity prior to the execution of the base period.

(iii) The D&F required by paragraph (h)(3)(ii)(A) of this section shall contain sufficient facts and

rationale to justify that a fixed-price order is not suitable. At a minimum, the D&F shall-

(A) Include a description of the market research conducted (see 8.404(c) and 10.002(e));

(B) Establish that it is not possible at the time of placing the order to accurately estimate the extent

or duration of the work or anticipate costs with any reasonable degree of confidence;

(C) Establish that the current requirement has been structured to maximize the use of fixed-price

orders (e.g., by limiting the value or length of the time-and-materials/labor-hour order; or,

establishing fixed prices for portions of the requirement) on future acquisitions for the same or

similar requirements; and

(D) Describe actions to maximize the use of fixed-price orders on future acquisitions for the same

requirements.

(iv) Prior to an increase in the ceiling price of a time-and-materials or labor-hour order, the ordering

activity shall-

(A) Conduct an analysis of pricing and other relevant factors to determine if the action is in the best

interest of the Government and document the order file;

(B) Follow the procedures at 8.405-6 for a change that modifies the general scope of the order; and

(C) Comply with the requirements at 8.402(f) when modifying an order to add open market items.

(i) Ensure that service contractor reporting requirements are met in accordance with subpart 4.17,

Service Contracts Inventory.

(j) Line items. When placing orders or establishing BPAs, ordering activities shall reference the

special item number and the corresponding line or subline item awarded (established per 4.1005) in

the schedule. If an ordering activity contracting officer adds an item not on the Federal Supply

Schedule in accordance with 8.402(f), establish a new line item in accordance with subpart 4.10.
8.405 Ordering procedures for Federal Supply Schedules.

Ordering activities shall use the ordering procedures of this section when placing an order or

establishing a BPA for supplies or services. The procedures in this section apply to all schedules. For

establishing BPAs and for orders under BPAs see 8.405-3.

8.405-1 Ordering procedures for supplies, and services not requiring a statement of work.

(a) Ordering activities shall use the procedures of this subsection when ordering supplies and

services that are listed in the schedules contracts at a fixed price for the performance of a specific

task, where a statement of work is not required (e.g., installation, maintenance, and repair). For

establishing BPAs and for orders under BPAs see 8.405-3.

(b) Orders at or below the micro-purchase threshold. Ordering activities may place orders at, or

below, the micro-purchase threshold with any Federal Supply Schedule contractor that can meet the

agency’s needs. Although not required to solicit from a specific number of schedule contractors,

ordering activities should attempt to distribute orders among contractors.

(c) Orders exceeding the micro-purchase threshold but not exceeding the simplified acquisition

threshold. Ordering activities shall place orders with the schedule contractor that can provide the

supply or service that represents the best value. Before placing an order, an ordering activity shall:

(1) Consider reasonably available information about the supply or service offered under MAS

contracts by surveying at least three schedule contractors through the GSA Advantage! on-line

shopping service, by reviewing the catalogs or pricelists of at least three schedule contractors, or by

requesting quotations from at least three schedule contractors (see 8.405-5 ); or

(2) Document the circumstances for restricting consideration to fewer than three schedule

contractors based on one of the reasons at 8.405-6 (a);

(d) For proposed orders exceeding the simplified acquisition threshold.

(1) Each order shall be placed on a competitive basis in accordance with (d)(2) and (3) of this

section, unless this requirement is waived on the basis of a justification that is prepared and

approved in accordance with 8.405-6 .

(2) The ordering activity contracting officer shall provide an RFQ that includes a description of the

supplies to be delivered or the services to be performed and the basis upon which the selection will

be made (see 8.405-1(f)).

(3) The ordering activity contracting officer shall -

(i) Post the RFQ on e-Buy to afford all schedule contractors offering the required supplies or services

under the appropriate multiple award schedule(s) an opportunity to submit a quote; or

(ii) Provide the RFQ to as many schedule contractors as practicable, consistent with market research

appropriate to the circumstances, to reasonably ensure that quotes will be received from at least

three contractors that can fulfill the requirements. When fewer than three quotes are received from

schedule contractors that can fulfill the requirement, the contracting officer shall prepare a written

determination explaining that no additional contractors capable of fulfilling the requirement could
be identified despite reasonable efforts to do so. The determination must clearly explain efforts

made to obtain quotes from at least three schedule contractors.

(4) The ordering activity contracting officer shall ensure that all quotes received are fairly

considered and award is made in accordance with the basis for selection in the RFQ.

(e) When an order contains brand-name specifications, the contracting officer shall post the RFQ on

e-Buy along with the justification or documentation, as required by 8.405-6. An RFQ is required

when a purchase description specifies a brand-name.

(f) In addition to price (see 8.404 (d) and 8.405-4), when determining best value, the ordering

activity may consider, among other factors, the following:

(1) Past performance.

(2) Special features of the supply or service required for effective program performance.

(3) Trade-in considerations.

(4) Probable life of the item selected as compared with that of a comparable item.

(5) Warranty considerations.

(6) Maintenance availability.

(7) Environmental and energy efficiency considerations.

(8) Delivery terms.

(g) Minimum documentation. The ordering activity shall document-

(1) The schedule contracts considered, noting the contractor from which the supply or service was

purchased;

(2) A description of the supply or service purchased;

(3) The amount paid;

(4) When an order exceeds the simplified acquisition threshold, evidence of compliance with the

ordering procedures at 8.405-1(d); and

(5) The basis for the award decision.

8.405-2 Ordering procedures for services requiring a statement of work.

(a) General. Ordering activities shall use the procedures in this subsection when ordering services

priced at hourly rates as established by the schedule contracts. The applicable services will be

identified in the Federal Supply Schedule publications and the contractor’s pricelists. For

establishing BPAs and for orders under BPAs see 8.405-3.

(b) Statements of Work (SOWs). All Statements of Work shall include a description of work to be

performed; location of work; period of performance; deliverable schedule; applicable performance
standards; and any special requirements (e.g., security clearances, travel, special knowledge). To

the maximum extent practicable, agency requirements shall be performance-based statements (see

subpart 37.6).

(c) Request for Quotation procedures. The ordering activity must provide the Request for Quotation

(RFQ), which includes the statement of work and evaluation criteria (e.g., experience and past

performance), to schedule contractors that offer services that will meet the agency’s needs. The RFQ

may be posted to GSA’s electronic RFQ system, e-Buy (see 8.402(d)).

(1) Orders at, or below, the micro-purchase threshold. Ordering activities may place orders at, or

below, the micro-purchase threshold with any Federal Supply Schedule contractor that can meet the

agency’s needs. The ordering activity should attempt to distribute orders among contractors.

(2) For orders exceeding the micro-purchase threshold, but not exceeding the simplified acquisition

threshold.

(i) The ordering activity shall develop a statement of work, in accordance with 8.405-2(b).

(ii) The ordering activity shall provide the RFQ (including the statement of work and evaluation

criteria) to at least three schedule contractors that offer services that will meet the agency’s needs

or document the circumstances for restricting consideration to fewer than three schedule

contractors based on one of the reasons at 8.405-6 (a).

(iii) The ordering activity shall specify the type of order (i.e., firm-fixed-price, labor-hour) for the

services identified in the statement of work. The contracting officer should establish firm-fixedprices, as appropriate.

(3) For proposed orders exceeding the simplified acquisition threshold. In addition to meeting the

requirements of 8.405-2(c)(2)(i) and (iii), the following procedures apply:

(i) Each order shall be placed on a competitive basis in accordance with (c)(3)(ii) and (iii) of this

section, unless this requirement is waived on the basis of a justification that is prepared and

approved in accordance with 8.405-6 .

(ii) The ordering activity contracting officer shall provide an RFQ that includes a statement of work

and the evaluation criteria.

(iii) The ordering activity contracting officer shall-

(A) Post the RFQ on e-Buy to afford all schedule contractors offering the required services under the

appropriate multiple-award schedule(s) an opportunity to submit a quote; or

(B) Provide the RFQ to as many schedule contractors as practicable, consistent with market

research appropriate to the circumstances, to reasonably ensure that quotes will be received from at

least three contractors that can fulfill the requirements. When fewer than three quotes are received

from schedule contractors that can fulfill the requirements, the contracting officer shall prepare a

written determination to explain that no additional contractors capable of fulfilling the requirements

could be identified despite reasonable efforts to do so. The determination must clearly explain

efforts made to obtain quotes from at least three schedule contractors.

(C) Ensure all quotes received are fairly considered and award is made in accordance with the

evaluation criteria in the RFQ.
(4) The ordering activity shall provide the RFQ (including the statement of work and the evaluation

criteria) to any schedule contractor who requests a copy of it.

(d) Evaluation. The ordering activity shall evaluate all responses received using the evaluation

criteria provided to the schedule contractors. The ordering activity is responsible for considering the

level of effort and the mix of labor proposed to perform a specific task being ordered, and for

determining that the total price is reasonable. Place the order with the schedule contractor that

represents the best value (see 8.404(d) and 8.405-4). After award, ordering activities should provide

timely notification to unsuccessful offerors. If an unsuccessful offeror requests information on an

award that was based on factors other than price alone, a brief explanation of the basis for the

award decision shall be provided.

(e) Use of time-and-materials and labor-hour orders for services. When placing a time-and-materials

or labor-hour order for services, see 8.404(h).

(f) Minimum documentation. The ordering activity shall document-

(1) The schedule contracts considered, noting the contractor from which the service was purchased;

(2) A description of the service purchased;

(3) The amount paid;

(4) The evaluation methodology used in selecting the contractor to receive the order;

(5) The rationale for any tradeoffs in making the selection;

(6) The price reasonableness determination required by paragraph (d) of this subsection;

(7) The rationale for using other than-

(i) A firm-fixed price order; or

(ii) A performance-based order; and

(8) When an order exceeds the simplified acquisition threshold, evidence of compliance with the

ordering procedures at 8.405-2(c).

8.405-3 Blanket purchase agreements (BPAs).

(a) Establishment.

(1) Ordering activities may establish BPAs under any schedule contract to fill repetitive needs for

supplies or services. Ordering activities shall establish the BPA with the schedule contractor(s) that

can provide the supply or service that represents the best value.

(2) In addition to price (see 8.404(d) and 8.405-4), when determining best value, the ordering

activity may consider, among other factors, the following:

(i) Past performance.
(ii) Special features of the supply or service required for effective program performance.

(iii) Trade-in considerations.

(iv) Probable life of the item selected as compared with that of a comparable item.

(v) Warranty considerations.

(vi) Maintenance availability.

(vii) Environmental and energy efficiency considerations.

(viii) Delivery terms.

(3)

(i) The ordering activity contracting officer shall, to the maximum extent practicable, give

preference to establishing multiple-award BPAs, rather than establishing a single-award BPA.

(ii) No single-award BPA with an estimated value exceeding $100 million (including any options),

may be awarded unless the head of the agency determines in writing that-

(A) The orders expected under the BPA are so integrally related that only a single source can

reasonably perform the work;

(B) The BPA provides only for firm-fixed priced orders for-

(1) Products with unit prices established in the BPA; or

(2) Services with prices established in the BPA for specific tasks to be performed;

(C) Only one source is qualified and capable of performing the work at a reasonable price to the

Government; or

(D) It is necessary in the public interest to award the BPA to a single source for exceptional

circumstances.

(iii) The requirement for a determination for a single-award BPA greater than $100 million is in

addition to any applicable requirement for a limited-source justification at 8.405-6. However, the two

documents may be combined into one document.

(iv) In determining how many multiple-award BPAs to establish or that a single-award BPA is

appropriate, the contracting officer should consider the following factors and document the decision

in the acquisition plan or BPA file:

(A) The scope and complexity of the requirement(s);

(B) The benefits of on-going competition and the need to periodically compare multiple technical

approaches or prices;

(C) The administrative costs of BPAs; and

(D) The technical qualifications of the schedule contractor(s).
(4) BPAs shall address the frequency of ordering, invoicing, discounts, requirements (e.g., estimated

quantities, work to be performed), delivery locations, and time.

(5) When establishing multiple-award BPAs, the ordering activity shall specify the procedures for

placing orders under the BPAs in accordance with 8.405-3(c)(2).

(6) Establishment of a multi-agency BPA against a Federal Supply Schedule contract is permitted if

the multi-agency BPA identifies the participating agencies and their estimated requirements at the

time the BPA is established.

(7) Minimum documentation. The ordering activity contracting officer shall include in the BPA file

documentation the-

(i) Schedule contracts considered, noting the contractor to which the BPA was awarded;

(ii) Description of the supply or service purchased;

(iii) Price;

(iv) Required justification for a limited-source BPA (see 8.405-6), if applicable;

(v) Determination for a single-award BPA exceeding $100 million, if applicable (see (a)(3)(ii)) of this

section);

(vi) Documentation supporting the decision to establish multiple-award BPAs or a single-award BPA

(see (a)(3)(iv));

(vii) Evidence of compliance with paragraph (b) of this section, for competitively awarded BPAs, if

applicable; and

(viii) Basis for the award decision. This should include the evaluation methodology used in selecting

the contractor, the rationale for any tradeoffs in making the selection, and a price reasonableness

determination for services requiring a statement of work.

(b) Competitive procedures for establishing a BPA. This paragraph applies to the establishment of a

BPA, in addition to applicable instructions in paragraph (a).

(1) For supplies, and for services not requiring a statement of work. The procedures of this

paragraph apply when establishing a BPA for supplies and services that are listed in the schedule

contract at a fixed price for the performance of a specific task, where a statement of work is not

required (e.g., installation, maintenance, and repair).

(i) If the estimated value of the BPA does not exceed the simplified acquisition threshold.

(A) The ordering activity shall:

(1) Consider reasonably available information about the supply or service offered under MAS

contracts by surveying at least three schedule contractors through the GSA Advantage! on-line

shopping service, by reviewing the catalogs or pricelists of at least three schedule contractors, or by

requesting quotations from at least three schedule contractors (see 8.405-5); or

(2) Document the circumstances for restricting consideration to fewer than three schedule

contractors based on one of the reasons at 8.405-6(a).
(B) The ordering activity shall establish the BPA with the schedule contractor(s) that can provide the

best value.

(ii) If the estimated value of the BPA exceeds the simplified acquisition threshold. The ordering

activity contracting officer:

(A) Shall provide an RFQ that includes a description of the supplies to be delivered or the services to

be performed and the basis upon which the selection will be made.

(B) (1) Shall post the RFQ on e-Buy to afford all schedule contractors offering the required supplies

or services under the appropriate multiple award schedule(s) an opportunity to submit a quote; or

(2) Shall provide the RFQ to as many schedule contractors as practicable, consistent with market

research appropriate to the circumstances, to reasonably ensure that quotes will be received from at

least three contractors that can fulfill the requirements. When fewer than three quotes are received

from schedule contractors that can fulfill the requirements, the contracting officer shall prepare a

written determination explaining that no additional contractors capable of fulfilling the requirements

could be identified despite reasonable efforts to do so. The determination must clearly explain

efforts made to obtain quotes from at least three schedule contractors.

(C) Shall ensure all quotes received are fairly considered and award is made in accordance with the

basis for selection in the RFQ. After seeking price reductions (see 8.405-4), establish the BPA with

the schedule contractor(s) that provides the best value.

(D) The BPA must be established in accordance with paragraphs (b)(1)(ii)(B) and (C) of this section,

unless the requirement is waived on the basis of a justification that is prepared and approved in

accordance with 8.405-6.

(2) For services requiring a statement of work. This applies when establishing a BPA that requires

services priced at hourly rates, as provided by the schedule contract. The applicable services will be

identified in the Federal Supply Schedule publications and the contractor’s pricelists.

(i) Statements of Work (SOWs). The ordering activity shall develop a statement of work. All

Statements of Work shall include a description of work to be performed; location of work; period of

performance; deliverable schedule; applicable performance standards; and any special requirements

(e.g., security clearances, travel, and special knowledge). To the maximum extent practicable,

agency requirements shall be performance-based statements (see subpart 37.6).

(ii) Type-of-order preference. The ordering activity shall specify the order type (i.e., firm-fixed price,

time-and-materials, or labor-hour) for the services identified in the statement of work. The

contracting officer should establish firm-fixed priced orders to the maximum extent practicable. For

time-and-materials and labor-hour orders, the contracting officer shall follow the procedures at

8.404(h).

(iii) Request for Quotation procedures. The ordering activity must provide a RFQ, which includes the

statement of work and evaluation criteria (e.g., experience and past performance), to schedule

contractors that offer services that will meet the agency’s needs. The RFQ may be posted to GSA’s

electronic RFQ system, e-Buy (see 8.402(d)).

(iv) If the estimated value of the BPA does not exceed the simplified acquisition threshold. The

ordering activity shall provide the RFQ (including the statement of work and evaluation criteria) to

at least three schedule contractors that offer services that will meet the agency’s needs.
(v) If estimated value of the BPA exceeds the simplified acquisition threshold. The ordering activity

contracting officer-

(A) Shall post the RFQ on e-Buy to afford all schedule contractors offering the required supplies or

services under the appropriate multiple-award schedule an opportunity to submit a quote; or

(B) Shall provide the RFQ, which includes the statement of work and evaluation criteria, to as many

schedule contractors as practicable, consistent with market research appropriate to the

circumstances, to reasonably ensure that quotes will be received from at least three contractors that

can fulfill the requirements. When fewer than three quotes are received from schedule contractors

that can fulfill the requirements, the contracting officer shall document the file. The contracting

officer shall prepare a written determination explaining that no additional contractors capable of

fulfilling the requirements could be identified despite reasonable efforts to do so. The determination

must clearly explain efforts made to obtain quotes from at least three schedule contractors.

(vi) The ordering activity contracting officer shall ensure all quotes received are fairly considered

and award is made in accordance with the basis for selection in the RFQ. The ordering activity is

responsible for considering the level of effort and the mix of labor proposed to perform, and for

determining that the proposed price is reasonable.

(vii) The BPA must be established in accordance with paragraph (b)(2)(iv) or (v), and with paragraph

(b)(2)(vi) of this section, unless the requirement is waived on the basis of a justification that is

prepared and approved in accordance with 8.405-6.

(viii) The ordering activity contracting officer shall establish the BPA with the schedule contractor(s)

that represents the best value (see 8.404(d) and 8.405-4).

(3) After award, ordering activities should provide timely notification to unsuccessful offerors. If an

unsuccessful offeror requests information on an award that was based on factors other than price

alone, a brief explanation of the basis for the award decision shall be provided.

(c) Ordering from BPAs. The procedures in this paragraph (c) are not required for BPAs established

on or before May 16, 2011. However, ordering activities are encouraged to use the procedures for

such BPAs.

(1) Single-award BPA. If the ordering activity establishes a single-award BPA, authorized users may

place the order directly under the established BPA when the need for the supply or service arises.

(2) Multiple-award BPAs.

(i) Orders at or below the micro-purchase threshold. The ordering activity may place orders at or

below the micro-purchase threshold with any BPA holder that can meet the agency needs. The

ordering activity should attempt to distribute any such orders among the BPA holders.

(ii) Orders exceeding the micro-purchase threshold but not exceeding the simplified acquisition

threshold.

(A) The ordering activity must provide each multiple-award BPA holder a fair opportunity to be

considered for each order exceeding the micro-purchase threshold, but not exceeding the simplified

acquisition threshold unless one of the exceptions at 8.405-6(a)(1)(i) applies.
(B) The ordering activity need not contact each of the multiple-award BPA holders before placing an

order if information is available to ensure that each BPA holder is provided a fair opportunity to be

considered for each order.

(C) The ordering activity contracting officer shall document the circumstances when restricting

consideration to less than all multiple-award BPA holders offering the required supplies and

services.

(iii) Orders exceeding the simplified acquisition threshold.

(A) The ordering activity shall place an order in accordance with paragraphs (c)(2)(iii)(A)(1), (2) and

(3) of this paragraph, unless the requirement is waived on the basis of a justification that is prepared

and approved in accordance with 8.405-6. The ordering activity shall-

(1) Provide an RFQ to all BPA holders offering the required supplies or services under the multipleaward BPAs, to include a description of the supplies to be delivered or the services to be performed

and the basis upon which the selection will be made;

(2) Afford all BPA holders responding to the RFQ an opportunity to submit a quote; and

(3) Fairly consider all responses received and make award in accordance with the selection

procedures.

(B) The ordering activity shall document evidence of compliance with these procedures and the basis

for the award decision.

(3) BPAs for hourly-rate services. If the BPA is for hourly-rate services, the ordering activity shall

develop a statement of work for each order covered by the BPA. Ordering activities should place

these orders on a firm-fixed price basis to the maximum extent practicable. For time-and-materials

and labor-hour orders, the contracting officer shall follow the procedures at 8.404(h). All orders

under the BPA shall specify a price for the performance of the tasks identified in the statement of

work. The ordering activity is responsible for considering the level of effort and the mix of labor

proposed to perform a specific task being ordered, and for determining that the total price is

reasonable through appropriate analysis techniques, and documenting the file accordingly.

(d) Duration of BPAs.

(1) Multiple-award BPAs generally should not exceed five years in length, but may do so to meet

program requirements.

(2) A single-award BPA shall not exceed one year. It may have up to four one-year options. See

paragraph (e) of this section for requirements associated with option exercise.

(3) Contractors may be awarded BPAs that extend beyond the current term of their GSA Schedule

contract, so long as there are option periods in their GSA Schedule contract that, if exercised, will

cover the BPA’s period of performance.

(e) Review of BPAs.

(1) The ordering activity contracting officer shall review the BPA and determine in writing, at least

once a year (e.g., at option exercise), whether-
(i) The schedule contract, upon which the BPA was established, is still in effect;

(ii) The BPA still represents the best value (see 8.404(d)); and

(iii) Estimated quantities/amounts have been exceeded and additional price reductions can be

obtained.

(2) The determination shall be included in the BPA file documentation.

8.405-4 Price reductions.

Ordering activities may request a price reduction at any time before placing an order, establishing a

BPA, or in conjunction with the annual BPA review. However, the ordering activity shall seek a price

reduction when the order or BPA exceeds the simplified acquisition threshold. Schedule contractors

are not required to pass on to all schedule users a price reduction extended only to an individual

ordering activity for a specific order or BPA.

8.405-5 Small business.

(a) Although the preference programs of part 19 are not mandatory in this subpart, in accordance

with section 1331 of Public Law 111-240 (15 U.S.C. 644(r))-

(1) Ordering activity contracting officers may, at their discretion-

(i) Set aside orders for any of the small business concerns identified in 19.000(a)(3); and

(ii) Set aside BPAs for any of the small business concerns identified in 19.000(a)(3).

(2) When setting aside orders and BPAs-

(i) Follow the ordering procedures for Federal Supply Schedules at 8.405-1, 8.405-2, and 8.405-3;

and

(ii) The specific small business program eligibility requirements identified in part 19 apply.

(b) Orders placed under schedule contracts may be credited toward the ordering activity’s small

business goals. For purposes of reporting an order placed with a small business schedule contractor,

an ordering agency may only take credit if the awardee meets a size standard that corresponds to

the North American Industry Classification System code assigned to the order in accordance with

19.102(b)(3). Ordering activities should rely on the small business representations made by schedule

contractors at the contract level (but see section 19.301-2(b)(2) concerning rerepresentation for an

order).

(c) Ordering activities may consider socio-economic status when identifying contractor(s) for

consideration or competition for award of an order or BPA. At a minimum, ordering activities should

consider, if available, at least one small business, veteran-owned small business, service disabled

veteran-owned small business, HUBZone small business, women-owned small business, or small

disadvantaged business schedule contractor(s). GSA Advantage! and Schedules e-Library at

http://www.gsa.gov/fas contain information on the small business representations of Schedule
contractors.

(d) For orders exceeding the micro-purchase threshold, ordering activities should give preference to

the items of small business concerns when two or more items at the same delivered price will satisfy

the requirement.

8.405-6 Limiting sources.

Orders placed or BPAs established under Federal Supply Schedules are exempt from the

requirements in part 6. However, an ordering activity must justify its action when restricting

consideration in accordance with paragraph (a) or (b) of this section—

(a) Orders or BPAs exceeding the micro-purchase threshold based on a limited sources justification.

(1) Circumstances justifying limiting the source.

(i) For a proposed order or BPA with an estimated value exceeding the micro-purchase threshold not

placed or established in accordance with the procedures in, 8.405-2, or 8.405-3, the only

circumstances that may justify the action are–

(A) An urgent and compelling need exists, and following the procedures would result in

unacceptable delays;

(B) Only one source is capable of providing the supplies or services required at the level of quality

required because the supplies or services are unique or highly specialized; or

(C) In the interest of economy and efficiency, the new work is a logical follow-on to an original

Federal Supply Schedule order provided that the original order was placed in accordance with the

applicable Federal Supply Schedule ordering procedures. The original order or BPA must not have

been previously issued under sole-source or limited-sources procedures.

(ii) See 8.405-6(c) for the content of the justification for an order or BPA exceeding the simplified

acquisition threshold.

(2) Posting.

(i) Within 14 days after placing an order or establishing a BPA exceeding the simplified acquisition

threshold that is supported by a limited-sources justification permitted under any of the

circumstances under paragraph (a)(1) of this section, the ordering activity shall–

(A) Publish a notice in accordance with 5.301; and

(B) Post the justification-

(1) At the GPE https://www.sam.gov;

(2) On the Web site of the ordering activity agency, which may provide access to the justification by

linking to the GPE; and

(3) For a minimum of 30 days.
(ii) In the case of an order or BPA permitted under paragraph (a)(1)(i)(A) of this section, the

justification shall be posted within 30 days after award.

(iii) Contracting officers shall carefully screen all justifications for contractor proprietary data and

remove all such data, and such references and citations as are necessary to protect the proprietary

data, before making the justifications available for public inspection. Contracting officers shall also

be guided by the exemptions to disclosure of information contained in the Freedom of Information

Act (5 U.S.C. 552) and the prohibitions against disclosure in 24.202 in determining whether other

data should be removed. Although the submitter notice process set out in Executive Order 12600

"Predisclosure Notification Procedures for Confidential Commercial Information" does not apply, if

the justification appears to contain proprietary data, the contracting officer should provide the

contractor that submitted the information an opportunity to review the justification for proprietary

data before making the justification available for public inspection, redacted as necessary. This

process must not prevent or delay the posting of the justification in accordance with the timeframes

required in paragraphs (a)(2)(i) and (ii) of this section.

(iv) This posting requirement does not apply when disclosure would compromise the national

security (e.g., would result in disclosure of classified information) or create other security risks.

(b) Items peculiar to one manufacturer. An item peculiar to one manufacturer can be a particular

brand name, product, or a feature of a product, peculiar to one manufacturer. A brand name item,

whether available on one or more schedule contracts, is an item peculiar to one manufacturer.

(1) Brand name specifications shall not be used unless the particular brand name, product, or

feature is essential to the Government’s requirements, and market research indicates other

companies’ similar products, or products lacking the particular feature, do not meet, or cannot be

modified to meet, the agency’s needs.

(2) Documentation.

(i) For proposed orders or BPAs with an estimated value exceeding the micro-purchase threshold,

but not exceeding the simplified acquisition threshold, the ordering activity contracting officer shall

document the basis for restricting consideration to an item peculiar to one manufacturer.

(ii) For proposed orders or BPAs with an estimated value exceeding the simplified acquisition

threshold, see paragraph (c) of this section.

(iii) The documentation or justification must be completed and approved at the time the requirement

for a brand-name item is determined. In addition, the justification for a brand-name item is required

at the order level when a justification for the brand-name item was not completed for the BPA or

does not adequately cover the requirements in the order.

(3) Posting.

(i) The ordering activity shall post the following information along with the Request for Quotation

(RFQ) to e-Buy (http://www.ebuy.gsa.gov):

(A) For proposed orders or BPAs with an estimated value exceeding $25,000, but not exceeding the

simplified acquisition threshold, the documentation required by paragraph (b)(2)(i) of this section.

(B) For proposed orders or BPAs with an estimated value exceeding the simplified acquisition
threshold, the justification required by paragraph (c) of this section.

(C) The documentation in paragraph (b)(2)(i) of this sectionand the justification in paragraph (c) of

this section is subject to the screening requirement in paragraph (a)(2)(iii) of this section.

(ii) The posting requirement of paragraph (b)(3)(i) of this section does not apply when-

(A) Disclosure would compromise the national security (e.g., would result in disclosure of classified

information) or create other security risks. The fact that access to classified matter may be

necessary to submit a proposal or perform the contract does not, in itself, justify use of this

exception;

(B) The nature of the file (e.g., size, format) does not make it cost-effective or practicable for

contracting officers to provide access through e-Buy; or

(C) The agency’s senior procurement executive makes a written determination that access through

e-Buy is not in the Government’s interest.

(4) When applicable, the documentation and posting requirements in paragraphs (b)(2) and (3) of

this section apply only to the portion of the order or BPA that requires a brand-name item. If the

justification and approval is to cover only the portion of the acquisition which is brand-name, then it

should so state; the approval level requirements will then only apply to that portion.

(c) An order or BPA with an estimated value exceeding the simplified acquisition threshold.

(1) For a proposed order or BPA exceeding the simplified acquisition threshold, the requiring activity

shall assist the ordering activity contracting officer in the preparation of the justification. The

justification shall cite that the acquisition is conducted under the authority of the Multiple-Award

Schedule Program (see 8.401).

(2) At a minimum, each justification shall include the following information:

(i) Identification of the agency and the contracting activity, and specific identification of the

document as a "Limited-Sources Justification."

(ii) Nature and/or description of the action being approved.

(iii) A description of the supplies or services required to meet the agency’s needs (including the

estimated value).

(iv) The authority and supporting rationale (see 8.405-6(a)(1)(i) and (b)(1)) and, if applicable, a

demonstration of the proposed contractor’s unique qualifications to provide the required supply or

service.

(v) A determination by the ordering activity contracting officer that the order represents the best

value consistent with 8.404(d).

(vi) A description of the market research conducted among schedule holders and the results or a

statement of the reason market research was not conducted.

(vii) Any other facts supporting the justification.

(viii) A statement of the actions, if any, the agency may take to remove or overcome any barriers that
led to the restricted consideration before any subsequent acquisition for the supplies or services is

made.

(ix) The ordering activity contracting officer’s certification that the justification is accurate and

complete to the best of the contracting officer’s knowledge and belief.

(x) Evidence that any supporting data that is the responsibility of technical or requirements

personnel (e.g., verifying the Government’s minimum needs or requirements or other rationale for

limited sources) and which form a basis for the justification have been certified as complete and

accurate by the technical or requirements personnel.

(xi) For justifications under 8.405-6(a)(1), a written determination by the approving official

identifying the circumstance that applies.

(d) Justification approvals.

(1) For a proposed order or BPA with an estimated value exceeding the simplified acquisition

threshold, but not exceeding $750,000, the ordering activity contracting officer’s certification that

the justification is accurate and complete to the best of the ordering activity contracting officer’s

knowledge and belief will serve as approval, unless a higher approval level is established in

accordance with agency procedures.

(2) For a proposed order or BPA with an estimated value exceeding $750,000, but not exceeding $15

million, the justification must be approved by the advocate for competition of the activity placing the

order, or by an official named in paragraph (d)(3) or (4) of this section. This authority is not

delegable.

(3) For a proposed order or BPA with an estimated value exceeding $15 million, but not exceeding

$75 million (or, for DoD, NASA, and the Coast Guard, not exceeding $100 million), the justification

must be approved by-

(i) The head of the procuring activity placing the order;

(ii) A designee who-

(A) If a member of the armed forces, is a general or flag officer; or

(B) If a civilian, is serving in a position in a grade above GS-15 under the General Schedule (or in a

comparable or higher position under another schedule); or

(iii) An official named in paragraph (d)(4) of this section.

(4) For a proposed order or BPA with an estimated value exceeding $75 million (or, for DoD, NASA,

and the Coast Guard, over $100 million), the justification must be approved by the senior

procurement executive of the agency placing the order. This authority is not delegable, except in the

case of the Under Secretary of Defense for Acquisition and Sustainment, acting as the senior

procurement executive for the Department of Defense.

8.405-7 Payment.

Agencies may make payments for oral or written orders by any authorized means, including the
Governmentwide commercial purchase card (but see 32.1108(b)(2)).

8.406 Ordering activity responsibilities.

8.406-1 Order placement.

(a) Ordering activities may place orders orally, except for-

(1) Supplies and services not requiring a statement of work exceeding the simplified acquisition

threshold;

(2) Services requiring a statement of work (SOW); and

(3) Orders containing brand-name specifications that exceed $25,000.

(b) Ordering activities may use Optional Form 347, an agency-prescribed form, or an established

electronic communications format to order supplies or services from schedule contracts.

(c) The ordering activity shall place an order directly with the contractor in accordance with the

terms and conditions of the price lists (see 8.402(b)). Prior to placement of the order, the ordering

activity shall ensure that the regulatory and statutory requirements of the requiring agency have

been applied.

(d) Orders shall include the following information in addition to any information required by the

schedule contract:

(1) Complete shipping and billing addresses.

(2) Contract number and date.

(3) Agency order number.

(4) F.o.b. delivery point; i.e., origin or destination.

(5) Discount terms.

(6) Delivery time or period of performance.

(7) Special item number or national stock number.

(8) Line item or subline item.

(9) A statement of work for services, when required, or a brief, complete description of each item

(when ordering by model number, features and options such as color, finish, and electrical

characteristics, if available, must be specified).

(10) Quantity and any variation in quantity.

(11) Number of units.

(12) Unit price.
(13) Total price of order.

(14) Points of inspection and acceptance.

(15) Other pertinent data; e.g., delivery instructions or receiving hours and size-of-truck limitation.

(16) Marking requirements.

(17) Level of preservation, packaging, and packing.

8.406-2 Inspection and acceptance.

(a) Supplies.

(1) Consignees shall inspect supplies at destination except when-

(i) The schedule contract indicates that mandatory source inspection is required by the schedule

contracting agency; or

(ii) A schedule item is covered by a product description, and the ordering activity determines that

the schedule contracting agency’s inspection assistance is needed (based on the ordering volume,

the complexity of the supplies, or the past performance of the supplier).

(2) When the schedule contracting agency performs the inspection, the ordering activity will provide

two copies of the order specifying source inspection to the schedule contracting agency. The

schedule contracting agency will notify the ordering activity of acceptance or rejection of the

supplies.

(3) Material inspected at source by the schedule contracting agency, and determined to conform

with the product description of the schedule, shall not be reinspected for the same purpose. The

consignee shall limit inspection to kind, count, and condition on receipt.

(4) Unless otherwise provided in the schedule contract, acceptance is conclusive, except as regards

latent defects, fraud, or such gross mistakes as amount to fraud.

(b) Services. The ordering activity has the right to inspect all services in accordance with the

contract requirements and as called for by the order. The ordering activity shall perform inspections

and tests as specified in the order’s quality assurance surveillance plan in a manner that will not

unduly delay the work.

8.406-3 Remedies for nonconformance.

(a) If a contractor delivers a supply or service, but it does not conform to the order requirements,

the ordering activity shall take appropriate action in accordance with the inspection and acceptance

clause of the contract, as supplemented by the order.

(b) If the contractor fails to perform an order, or take appropriate corrective action, the ordering

activity may terminate the order for cause or modify the order to establish a new delivery date (after

obtaining consideration, as appropriate). Ordering activities shall follow the procedures at 8.406-4
when terminating an order for cause.

8.406-4 Termination for cause.

(a)

(1) An ordering activity contracting officer may terminate individual orders for cause. Termination

for cause shall comply with FAR 12.403, and may include charging the contractor with excess costs

resulting from repurchase.

(2) The schedule contracting office shall be notified of all instances where an ordering activity

contracting officer has terminated for cause an individual order to a Federal Supply Schedule

contractor, or if fraud is suspected.

(b) If the contractor asserts that the failure was excusable, the ordering activity contracting officer

shall follow the procedures at 8.406-6, as appropriate.

(c) If the contractor is charged excess costs, the following apply:

(1) Any repurchase shall be made at as low a price as reasonable, considering the quality required

by the Government, delivery requirement, and administrative expenses. Copies of all repurchase

orders, except the copy furnished to the contractor or any other commercial concern, shall include

the notation:

Repurchase against the account of __________ [insert contractor’s name] under Order __________

[insert number] under Contract __________ [insert number].

(2) When excess costs are anticipated, the ordering activity may withhold funds due the contractor

as offset security. Ordering activities shall minimize excess costs to be charged against the

contractor and collect or set-off any excess costs owed.

(3) If an ordering activity is unable to collect excess repurchase costs, it shall notify the schedule

contracting office after final payment to the contractor.

(i) The notice shall include the following information about the terminated order:

(A) Name and address of the contractor.

(B) Schedule, contract, and order number.

(C) Line item number(s) and a brief description of the item(s).

(D) Cost of schedule items involved.

(E) Excess costs to be collected.

(F) Other pertinent data.

(ii) The notice shall also include the following information about the purchase contract:

(A) Name and address of the contractor.
(B) Item repurchase cost.

(C) Repurchase order number and date of payment.

(D) Contract number, if any.

(E) Other pertinent data.

(d) Only the schedule contracting officer may modify the contract to terminate for cause any, or all,

supplies or services covered by the schedule contract. If the schedule contracting officer has

terminated any supplies or services covered by the schedule contract, no further orders may be

placed for those items. Orders placed prior to termination for cause shall be fulfilled by the

contractor, unless terminated for the convenience of the Government by the ordering activity

contracting officer.

(e) Reporting. An ordering activity contracting officer, in accordance with agency procedures, shall

ensure that information related to termination for cause notices and any amendments are reported.

In the event the termination for cause is subsequently converted to a termination for convenience, or

is otherwise withdrawn, the contracting officer shall ensure that a notice of the conversion or

withdrawal is reported. All reporting shall be in accordance with 42.1503(h).

8.406-5 Termination for the Government’s convenience.

(a) An ordering activity contracting officer may terminate individual orders for the Government’s

convenience. Terminations for the Government’s convenience shall comply with FAR 12.403.

(b) Before terminating orders for the Government’s convenience, the ordering activity contracting

officer shall endeavor to enter into a "no cost" settlement agreement with the contractor.

(c) Only the schedule contracting officer may modify the schedule contract to terminate any, or all,

supplies or services covered by the schedule contract for the Government’s convenience.

8.406-6 Disputes.

(a) Disputes pertaining to the performance of orders under a schedule contract.

(1) Under the Disputes clause of the schedule contract, the ordering activity contracting officer may-

(i) Issue final decisions on disputes arising from performance of the order (but see paragraph (b) of

this section); or

(ii) Refer the dispute to the schedule contracting officer.

(2) The ordering activity contracting officer shall notify the schedule contracting officer promptly of

any final decision.

(b) Disputes pertaining to the terms and conditions of schedule contracts. The ordering activity

contracting officer shall refer all disputes that relate to the contract terms and conditions to the

schedule contracting officer for resolution under the Disputes clause of the contract and notify the
schedule contractor of the referral.

(c) Appeals. Contractors may appeal final decisions to either the Board of Contract Appeals servicing

the agency that issued the final decision or the U.S. Court of Federal Claims.

(d) Alternative dispute resolution. The contracting officer should use the alternative dispute

resolution (ADR) procedures, to the maximum extent practicable (see 33.204 and 33.214).

8.406-7 Contractor Performance Evaluation.

Ordering activities must prepare at least annually and at the time the work under the order is

completed, an evaluation of contractor performance for each order that exceeds the simplified

acquisition threshold in accordance with 42.1502(c).

Subpart 8.5 - [Reserved]

Subpart 8.6 - Acquisition from Federal Prison Industries,

Inc.

8.601 General.

(a) Federal Prison Industries, Inc. (FPI), also referred to as UNICOR, is a self-supporting, wholly

owned Government corporation of the District of Columbia.

(b) FPI provides training and employment for prisoners confined in Federal penal and correctional

institutions through the sale of its supplies and services to Government agencies (18

U.S.C.4121-4128).

(c) FPI diversifies its supplies and services to minimize adverse impact on private industry.

(d) Supplies manufactured and services performed by FPI are listed in the FPI Schedule, which can

be accessed at http://www.unicor.gov or by submitting a written request to Federal Prison

Industries, Inc., Department of Justice, Washington, DC 20534.

(e) Agencies are encouraged to purchase FPI supplies and services to the maximum extent

practicable.

8.602 Policy.

(a) In accordance with 10 U.S.C. 3905 and Section 637 of Division H of the Consolidated

Appropriations Act, 2005 (Pub. L. 108-447) (18 U.S.C. 4124 note), and except as provided in

paragraph (b) of this section, agencies shall-

(1) Before purchasing an item of supply listed in the FPI Schedule, conduct market research to

determine whether the FPI item is comparable to supplies available from the private sector that best
meet the Government’s needs in terms of price, quality, and time of delivery. This is a unilateral

determination made at the discretion of the contracting officer. The arbitration provisions of 18

U.S.C.4124(b) do not apply.

(2) Prepare a written determination that includes supporting rationale explaining the assessment of

price, quality, and time of delivery, based on the results of market research comparing the FPI item

to supplies available from the private sector.

(3) If the FPI item is comparable, purchase the item from FPI following the ordering procedures at

http://www.unicor.gov, unless a waiver is obtained in accordance with 8.604; and

(4) If the FPI item is not comparable in one or more of the areas of price, quality, and time of

delivery-

(i) Acquire the item using-

(A) Competitive procedures (e.g., the procedures in 6.102, the set-aside procedures in subpart 19.5,

or competition conducted in accordance with part 13); or

(B) The fair opportunity procedures in 16.505, if placing an order under a multiple award deliveryorder contract;

(ii) Include FPI in the solicitation process and consider a timely offer from FPI for award in

accordance with the item description or specifications, and evaluation factors in the solicitation-

(A) If the solicitation is available through the Governmentwide point of entry (Contract Opportunities

at SAM.gov ), it is not necessary to provide a separate copy of the solicitation to FPI;

(B) If the solicitation is not available through Contract Opportunities at SAM.gov , provide a copy of

the solicitation to FPI;

(iii) When using a multiple award schedule issued under the procedures in subpart 8.4 or when

using the fair opportunity procedures in 16.505-

(A) Establish and communicate to FPI the item description or specifications, and evaluation factors

that will be used as the basis for selecting a source, so that an offer from FPI can be evaluated on

the same basis as the contract or schedule holder; and

(B) Consider a timely offer from FPI;

(iv) Award to the source offering the item determined by the agency to provide the best value to the

Government; and

(v) When the FPI item is determined to provide the best value to the Government as a result of FPI’s

response to a competitive solicitation, follow the ordering procedures at http://www.unicor.gov.

(b) The procedures in paragraph (a) of this section do not apply if an exception in 8.605(b) through

(g) applies.

(c) In some cases where FPI and an AbilityOne participating nonprofit agency produce identical

items (see 8.603), FPI grants a waiver to permit the Government to purchase a portion of its

requirement from the AbilityOne participating nonprofit agency. When this occurs, the portion of the

requirement for which FPI has granted a waiver-
(1) Shall be purchased from the AbilityOne participating nonprofit agency using the procedures in

subpart 8.7; and

(2) Shall not be subject to the procedures in paragraph (a) of this section.

(d) Disputes regarding price, quality, character, or suitability of supplies produced by FPI, except for

determinations under paragraph (a)(1) of this section, are subject to arbitration as specified in 18

U.S.C.4124. The statute provides that the arbitration shall be conducted by a board consisting of the

Comptroller General of the United States, the Administrator of General Services, and the President,

or their representatives. The decisions of the board are final and binding on all parties.

8.603 Purchase priorities.

FPI and nonprofit agencies participating in the AbilityOne Program under 41 U.S.C. chapter 85,

Committee for Purchase from People Who Are Blind or Severely Disabled (see subpart 8.7) may

produce identical supplies or services. When this occurs, ordering offices shall purchase supplies

and services in the following priorities:

(a) Supplies.

(1) Federal Prison Industries, Inc. (41 U.S.C.8504).

(2) AbilityOne participating nonprofit agencies.

(3) Commercial sources.

(b) Services.

(1) AbilityOne participating nonprofit agencies.

(2) Federal Prison Industries, Inc., or commercial sources.

8.604 Waivers.

FPI may grant a waiver for purchase of supplies in the FPI Schedule from another source. FPI

waivers ordinarily are of the following types:

(a) General or blanket waivers issued when classes of supplies are not available from FPI.

(b) Formal waivers issued in response to requests from offices desiring to acquire, from other

sources, supplies listed in the FPI Schedule and not covered by a general waiver. Agencies shall

process waiver requests in accordance with the procedures at http://www.unicor.gov.

8.605 Exceptions.

Purchase from FPI is not mandatory and a waiver is not required if-
(a)

(1) The contracting officer makes a determination that the FPI item of supply is not comparable to

supplies available from the private sector that best meet the Government’s needs in terms of price,

quality, and time of delivery; and

(2) The item is acquired in accordance with 8.602(a)(4);

(b) Public exigency requires immediate delivery or performance;

(c) Suitable used or excess supplies are available;

(d) The supplies are acquired and used outside the United States;

(e) Acquiring listed items totaling $3,500 or less;

(f) Acquiring items that FPI offers exclusively on a competitive (non-mandatory) basis, as identified

in the FPI Schedule; or

(g) Acquiring services.

8.606 Evaluating FPI performance.

Agencies shall evaluate FPI contract performance in accordance with subpart 42.15. Performance

evaluations do not negate the requirements of 8.602 and 8.604, but they may be used to support a

waiver request in accordance with 8.604.

8.607 Performance as a subcontractor.

Agencies shall not require a contractor, or subcontractor at any tier, to use FPI as a subcontractor

for performance of a contract by any means, including means such as-

(a) A solicitation provision requiring a potential contractor to offer to make use of FPI supplies or

services;

(b) A contract specification requiring the contractor to use specific supplies or services (or classes of

supplies or services) offered by FPI; or

(c) Any contract modification directing the use of FPI supplies or services.

8.608 Protection of classified and sensitive information.

Agencies shall not enter into any contract with FPI that allows an inmate worker access to any-

(a) Classified data;

(b) Geographic data regarding the location of-

(1) Surface and subsurface infrastructure providing communications or water or electrical power
distribution;

(2) Pipelines for the distribution of natural gas, bulk petroleum products, or other commodities; or

(3) Other utilities; or

(c) Personal or financial information about any individual private citizen, including information

relating to such person’s real property however described, without the prior consent of the

individual.

Subpart 8.7 - Acquisition from Nonprofit Agencies

Employing People Who Are Blind or Severely Disabled

8.700 Scope of subpart.

This subpart prescribes the policies and procedures for implementing–

(a) 41 U.S.C. chapter 85, Committee for Purchase from People Who Are Blind or Severely Disabled;

and

(b) The rules of the Committee for Purchase from People Who Are Blind or Severely Disabled (41

CFR Chapter 51), which implements the AbilityOne program.

8.701 Definitions.

As used in this subpartAllocation means an action taken by a central nonprofit agency to designate the AbilityOne

participating nonprofit agencies that will furnish definite quantities of supplies or perform specific

services upon receipt of orders from ordering offices.

Central nonprofit agency means National Industries for the Blind (NIB), which has been designated

to represent people who are blind; or NISH, which has been designated to represent AbilityOne

participating nonprofit agencies serving people with severe disabilities other than blindness.

"Committee" means the Committee for Purchase From People Who Are Blind or Severely Disabled.

Government or "entity of the Government" means any entity of the legislative or judicial branch, any

executive agency, military department, Government corporation, or independent establishment, the

U.S. Postal Service, or any nonappropriated-fund instrumentality of the Armed Forces.

Ordering office means any activity in an entity of the Government that places orders for the

purchase of supplies or services under the AbilityOne Program.

Procurement List means a list of supplies (including military resale commodities) and services that

the Committee has determined are suitable for purchase by the Government under 41 U.S.C.

chapter 85.
Nonprofit agency serving people who are blind or "nonprofit agency serving people with other

severe disabilities" (referred to jointly as AbilityOne participating nonprofit agencies) means a

qualified nonprofit agency employing people who are blind or have other severe disabilities

approved by the Committee to furnish a commodity or a service to the Government under 41 U.S.C.

chapter 85.

8.702 General.

The Committee is an independent Government activity with members appointed by the President of

the United States. It is responsible for-

(a) Determining those supplies and services to be purchased by all entities of the Government from

AbilityOne participating nonprofit agencies;

(b) Establishing prices for the supplies and services; and

(c) Establishing rules and regulations to implement 41 U.S.C. chapter 85.

8.703 Procurement List.

The Committee maintains a Procurement List of all supplies and services required to be purchased

from AbilityOne participating nonprofit agencies. The Procurement List may be accessed at:

http://www.abilityone.gov . Questions concerning whether a supply item or service is on the

Procurement List may be submitted at Internet e-mail address info@abilityone.gov or referred to the

Committee offices at the following address and telephone number:

Committee for Purchase From People Who Are Blind or Severely Disabled, 1401 S. Clark Street,

Suite 10800, Arlington, VA 22202-3259, (703) 603-7740.

Many items on the Procurement List are identified in the General Services Administration (GSA)

Supply Catalog and GSA’s Customer Service Center Catalogs with a black square and the words

"NIB/NISH Mandatory Source," and in similar catalogs issued by the Defense Logistics Agency

(DLA) and the Department of Veterans Affairs (VA). GSA, DLA, and VA are central supply agencies

from which other Federal agencies are required to purchase certain supply items on the

Procurement List.

8.704 Purchase priorities.

(a) 41 U.S.C. chapter 85 requires the Government to purchase supplies or services on the

Procurement List, at prices established by the Committee, from AbilityOne participating nonprofit

agencies if they are available within the period required. When identical supplies or services are on

the Procurement List and the Schedule of Products issued by Federal Prison Industries, Inc.,

ordering offices shall purchase supplies and services in the following priorities:

(1) Supplies:

(i) Federal Prison Industries, Inc. (41 U.S.C. 8504).
(ii) AbilityOne participating nonprofit agencies.

(iii) Commercial sources.

(2) Services:

(i) AbilityOne participating nonprofit agencies.

(ii) Federal Prison Industries, Inc., or commercial sources.

(b) No other provision of the FAR shall be construed as permitting an exception to the mandatory

purchase of items on the Procurement List.

(c) The Procurement List identifies those supplies for which the ordering office must obtain a formal

waiver (8.604) from Federal Prison Industries, Inc., before making any purchases from AbilityOne

participating nonprofit agencies.

8.705 Procedures.

8.705-1 General.

(a) Ordering offices shall obtain supplies and services on the Procurement List from the central

nonprofit agency or its designated AbilityOne participating nonprofit agencies, except that supplies

identified on the Procurement List as available from DLA, GSA, or VA supply distribution facilities

shall be obtained through DLA, GSA, or VA procedures. If a distribution facility cannot provide the

supplies, it shall inform the ordering office, which shall then order from the AbilityOne participating

nonprofit agency designated by the Committee.

(b) Supply distribution facilities in DLA and GSA shall obtain supplies on the Procurement List from

the central nonprofit agency identified or its designated AbilityOne participating nonprofit agency.

8.705-2 Direct-order process.

Central nonprofit agencies may authorize ordering offices to transmit orders for specific supplies or

services directly to an AbilityOne participating nonprofit agency. The written authorization remains

valid until it is revoked by the central nonprofit agency or the Committee. The central nonprofit

agency shall specify the normal delivery or performance lead time required by the nonprofit agency.

The ordering office shall reflect this lead time in its orders.

8.705-3 Allocation process.

(a) When the direct order process has not been authorized, the ordering office shall submit a written

request for allocation (requesting the designation of the AbilityOne participating nonprofit agency to

produce the supplies or perform the service) to the central nonprofit agency designated in the

Procurement List. Ordering offices shall request allocations in sufficient time for a reply, for orders

to be placed, and for the nonprofit agency to produce the supplies or provide the service within the

required delivery or performance schedule.
(b) The ordering office’s request to the central nonprofit agency for allocation shall include the

following information:

(1) For supplies-Item name, stock number, latest specification, quantity, unit price, date delivery is

required, and destination to which delivery is to be made.

(2) For services-Type and location of service required, latest specification, work to be performed,

estimated volume, and required date or dates for completion.

(3) Other requirements; e.g., packing, marking, as necessary.

(c) When an allocation is received, the ordering office shall promptly issue an order to the specified

AbilityOne participating nonprofit agency or to the central nonprofit agency, as instructed by the

allocation. If the issuance of an order is to be delayed for more than 15 days beyond receipt of the

allocation, or canceled, the ordering office shall advise the central nonprofit agency immediately.

(d) Ordering offices may issue orders without limitation as to dollar amount and shall record them

upon issuance as obligations. Each order shall include, as a minimum, the information contained in

the request for allocation. Ordering offices shall also include additional instructions necessary for

performance under the order; e.g., on the handling of Government-furnished property, reports

required, and notification of shipment.

8.705-4 Compliance with orders.

(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.

8.706 Purchase exceptions.

(a) Ordering offices may acquire supplies or services on the Procurement List from commercial
sources only if the acquisition is specifically authorized in a purchase exception granted by the

designated central nonprofit agency.

(b) The central nonprofit agency shall promptly grant purchase exceptions when-

(1) The AbilityOne participating nonprofit agencies cannot provide the supplies or services within

the time required, and commercial sources can provide them significantly sooner in the quantities

required; or

(2) The quantity required cannot be produced or provided economically by the AbilityOne

participating nonprofit agencies.

(c) The central nonprofit agency granting the exception shall specify the quantity and delivery or

performance period covered by the exception.

(d) When a purchase exception is granted, the contracting officer shall-

(1) Initiate purchase action within 15 days following the date of the exception or any extension

granted by the central nonprofit agency; and

(2) Provide a copy of the solicitation to the central nonprofit agency when it is issued.

(e) The Committee may also grant a purchase exception, under any circumstances it considers

appropriate.

8.707 Prices.

(a) The prices of items on the Procurement List are fair market prices established by the Committee.

All prices for supplies ordered under this subpart are f.o.b. origin.

(b) Prices for supplies are normally adjusted semiannually. Prices for services are normally adjusted

annually.

(c) The Committee may request the agency responsible for acquiring the supplies or service to assist

it in establishing or revising the fair market price. The Committee has the authority to establish

prices without prior coordination with the responsible contracting office.

(d) Price changes shall normally apply to all orders received by the AbilityOne participating

nonprofit agency on or after the effective date of the change. In special cases, after considering the

views of the ordering office, the Committee may make price changes applicable to orders received

by the AbilityOne participating nonprofit agency prior to the effective date of the change.

(e) If an ordering office desires packing, packaging, or marking of supplies other than the standard

pack as provided on the Procurement List, any difference in costs shall be included as a separate

item on the nonprofit agency’s invoice. The ordering office shall reimburse the nonprofit agency for

these costs.

(f) Ordering offices may make recommendations to the Committee at any time for price revisions for

supplies and services on the Procurement List.
8.708 Shipping.

(a) Delivery is accomplished when a shipment is placed aboard the vehicle of the initial carrier. The

time of delivery is the date shipment is released to and accepted by the initial carrier.

(b) Shipment is normally under Government bills of lading. However, for small orders, ordering

offices may specify other shipment methods.

(c) When shipments are under Government bills of lading, the bills of lading may accompany orders

or be otherwise furnished promptly. Failure of an ordering office to furnish bills of lading or to

designate a method of transportation may result in an excusable delay in delivery.

(d) AbilityOne participating nonprofit agencies shall include transportation costs for small shipments

paid by the nonprofit agencies as an item on the invoice. The ordering office shall reimburse the

nonprofit agencies for these costs.

8.709 Payments.

The ordering office shall make payments for supplies or services on the Procurement List within 30

days after shipment or after receipt of a proper invoice or voucher.

8.710 Quality of merchandise.

Supplies and services provided by AbilityOne participating nonprofit agencies shall comply with the

applicable Government specifications and standards cited in the order. When no specifications or

standards exist-

(a) Supplies shall be of the highest quality and equal to similar items available on the commercial

market; and

(b) Services shall conform to good commercial practices.

8.711 Quality complaints.

(a) When the quality of supplies or services received is unsatisfactory, the using activity shall take

the following actions:

(1) For supplies received from DLA supply centers, GSA supply distribution facilities, or Department

of Veterans Affairs distribution division, notify the supplying agency.

(2) For supplies or services received from AbilityOne participating nonprofit agencies, address

complaints to the individual nonprofit agency involved, with a copy to the appropriate central

nonprofit agency.

(b) When quality problems cannot be resolved by the AbilityOne participating nonprofit agency and

the ordering office, the ordering office shall first contact the central nonprofit agency and then, if

necessary, the Committee for resolution.
8.712 Specification changes.

(a) The contracting activity shall notify the AbilityOne participating nonprofit agency and

appropriate central nonprofit agency of any change in specifications or descriptions. In the absence

of such written notification, the AbilityOne participating nonprofit agency shall furnish the supplies

or services under the specification or description cited in the order.

(b) The contracting activity shall provide 90-days advance notification to the Committee and the

central nonprofit agency on actions that affect supplies on the Procurement List and shall permit

them to comment before action is taken, particularly when it involves-

(1) Changes that require new national stock numbers or item designations;

(2) Deleting items from the supply system;

(3) Standardization; or

(4) Developing new items to replace items on the Procurement List.

(c) For services, the contracting activity shall notify the AbilityOne participating nonprofit agency

and central nonprofit agency concerned at least 90 days prior to the date that any changes in the

scope of work or other conditions will be required.

(d) When, in order to meet its emergency needs, a contracting activity is unable to give the 90-day

notification required in paragraphs (b) and (c) of this section, the contracting activity shall, at the

time it places the order or change notice, inform the AbilityOne participating nonprofit agency and

the central nonprofit agency in writing of the reasons that it cannot meet the 90-day notification

requirement.

8.713 Optional acquisition of supplies and services.

(a) Ordering offices may acquire supplies and services not included on the Procurement List from an

AbilityOne participating nonprofit agency that is the low responsive, responsible offeror under a

solicitation issued by other authorized acquisition methods.

(b) Ordering offices should forward solicitations to AbilityOne participating nonprofit agencies that

may be qualified to provide the supplies or services required.

8.714 Communications with the central nonprofit agencies and the

Committee.

(a) The addresses of the central nonprofit agencies are:

(1) National Industries for the Blind

1310 Braddock Place

Alexandria, VA 22314-1691
(703) 310-0500; and

(2) NISH

8401 Old Courthouse Road

Vienna, VA 22182

(571) 226-4660.

(b) Any matter requiring referral to the Committee shall be addressed to:

Executive Director of the Committee, 1401 S. Clark Street, Suite 10800, Arlington, VA 22202-3259.

8.715 Replacement commodities.

When a commodity on the Procurement List is replaced by another commodity which has not been

previously acquired, and a qualified AbilityOne participating nonprofit agency can furnish the

replacement commodity in accordance with the Government’s quality standards and delivery

schedules and at a fair market price, the replacement commodity is automatically on the

Procurement List and shall be acquired from the AbilityOne participating nonprofit agency

designated by the Committee. The commodity being replaced shall continue to be included on the

Procurement List until there is no longer a requirement for that commodity.

8.716 Change-of-name and successor in interest procedures.

When the Committee recognizes a name change or a successor in interest for an AbilityOne

participating nonprofit agency providing supplies or services on the Procurement List-

(a) The Committee will provide a notice of a change to the Procurement List to the cognizant

contracting officers; and

(b) Upon receipt of a notice of a change to the Procurement List from the Committee, the

contracting officer must-

(1) Prepare a Standard Form (SF) 30, Amendment of Solicitation/Modification of Contract,

incorporating a summary of the notice and attaching a list of contracts affected; and

(2) Distribute the SF 30, including a copy to the Committee.

Subpart 8.8 - Acquisition of Printing and Related Supplies

8.800 Scope of subpart.

This subpart provides policy for the acquisition of Government printing and related supplies.
8.801 Definitions.

As used in this subpartGovernment printing means printing, binding, and blankbook work for the use of an executive

department, independent agency, or establishment of the Government.

Related supplies means supplies that are used and equipment that is usable in printing and binding

operations.

8.802 Policy.

(a) Government printing must be done by or through the Government Publishing Office (GPO) (44

U.S.C.501), unless-

(1) The GPO cannot provide the printing service (44 U.S.C.504);

(2) The printing is done in field printing plants operated by an executive agency (44 U.S.C.501(2));

(3) The printing is acquired by an executive agency from allotments for contract field printing (44

U.S.C.501(2)); or

(4) The printing is specifically authorized by statute to be done other than by the GPO.

(b) The head of each agency shall designate a central printing authority; that central printing

authority may serve as the liaison with the Congressional Joint Committee on Printing (JCP) and the

Public Printer on matters related to printing. Contracting officers shall obtain approval from their

designated central printing authority before contracting in any manner, whether directly or through

contracts for other supplies or services, for the items defined in 8.801 and for composition,

platemaking, presswork, binding, and micrographics (when used as a substitute for printing).

(c)

(1) Further, 44 U.S.C.1121 provides that the Public Printer may acquire and furnish paper and

envelopes (excluding envelopes printed in the course of manufacture) in common use by two or more

Government departments, establishments, or services within the District of Columbia, and provides

for reimbursement of the Public Printer from available appropriations or funds. Paper and envelopes

that are furnished by the Public Printer may not be acquired in any other manner.

(2) Paper and envelopes for use by Executive agencies outside the District of Columbia and stocked

by GSA shall be requisitioned from GSA in accordance with the procedures listed in Federal

Property Management Regulations (FPMR) 41 CFR part 101, subpart 101-26.3.

Subpart 8.9 - [Reserved]
Subpart 8.10 - [Reserved]

Subpart 8.11 - Leasing of Motor Vehicles

8.1100 Scope of subpart.

This subpart covers the procedures for the leasing, from commercial concerns, of motor vehicles

that comply with Federal Motor Vehicle Safety Standards and applicable State motor vehicle safety

regulations. It does not apply to motor vehicles leased outside the United States and its outlying

areas.

8.1101 Definitions.

As used in this subpartLeasing means the acquisition of motor vehicles, other than by purchase from private or commercial

sources, and includes the synonyms "hire" and "rent."

Motor vehicle means an item of equipment, mounted on wheels and designed for highway and/or

land use, that-

(1) Derives power from a self-contained power unit; or

(2) Is designed to be towed by and used in conjunction with self-propelled equipment.

8.1102 Presolicitation requirements.

(a) Except as specified in 8.1102(b), before preparing solicitations for leasing of motor vehicles,

contracting officers shall obtain from the requiring activity a written certification that-

(1) The vehicles requested are of maximum fuel efficiency and minimum body size, engine size, and

equipment (if any) necessary to fulfill operational needs, and meet prescribed fuel economy

standards;

(2) The head of the requiring agency, or a designee, has certified that the requested passenger

automobiles (sedans and station wagons) larger than Type IA, IB, or II (small, subcompact, or

compact) are essential to the agency’s mission;

(3) Internal approvals have been received; and

(4) The General Services Administration has advised that it cannot furnish the vehicles.

(b) With respect to requirements for leasing motor vehicles for a period of less than 60 days, the

contracting officer need not obtain the certification specified in 8.1102(a)-

(1) If the requirement is for type 1 A, 1 B, or II vehicles, which are by definition fuel efficient; or
(2) If the requirement is for passenger vehicles larger than 1 A, 1 B, or II, and the agency has

established procedures for advance approval, on a case-by-case basis, of such requirements.

(c) Generally, solicitations shall not be limited to current year production models. However, with the

prior approval of the head of the contracting office, solicitations may be limited to current models on

the basis of overall economy.

8.1103 Contract requirements.

Contracting officers shall include the following items in each contract for leasing motor vehicles:

(a) Scope of contract.

(b) Method of computing payments.

(c) A listing of the number and type of vehicles required, and the equipment and accessories to be

provided with each vehicle.

(d) Responsibilities of the contractor or the Government for furnishing gasoline, motor oil,

antifreeze, and similar items.

(e) Unless it is determined that it will be more economical for the Government to perform the work,

a statement that the contractor shall perform all maintenance on the vehicles.

(f) A statement as to the applicability of pertinent State and local laws and regulations, and the

responsibility of each party for compliance with them.

(g) Responsibilities of the contractor or the Government for emergency repairs and services.

8.1104 Contract clauses.

Insert the following clauses in solicitations and contracts for leasing of motor vehicles, unless the

motor vehicles are leased in foreign countries:

(a) The clause at 52.208-4, Vehicle Lease Payments.

(b) The clause at 52.208-5, Condition of Leased Vehicles.

(c) The clause at 52.208-6, Marking of Leased Vehicles.

(d) A clause substantially the same as the clause at 52.208-7, Tagging of Leased Vehicles, for

vehicles leased over 60 days (see subpart B of 41 CFR part 102-34).

(e) The provisions and clauses prescribed elsewhere in the FAR for solicitations and contracts for

supplies when a fixed-price contract is contemplated, but excluding-

(1) The clause at 52.211-16, Variation in Quantity;

(2) The clause at 52.232-1, Payments;

(3) The clause at 52.222-20, Contracts for Materials, Supplies, Articles, and Equipment; and
(4) The clause at 52.246-16, Responsibility for Supplies.