0:'economy act agreements for purchasing goods or services 1. description and requirements. the economy act of 1932, as amended, 31',
1:'u.s.c. § 1535, permits federal government agencies to purchase goods or services from other federal government agencies or other major',
2:'organizational units within the same agency. an economy act purchase is permitted only if: 1 amounts for the purchase are',
3:'actually available, 2 the purchase is in the best interest of the government, 3 the ordered goods or services cannot',
4:'be provided by contract from a commercial enterprise, i.e., the private sector, as conveniently or cheaply as could be by',
5:'the government, and 4 the agency or unit to fill the order is able to provide or get by contract',
6:'the ordered goods or services. the federal acquisition regulations far, 48 cfr 17.5 provides further requirements for economy act agreements.',
7:'the far provides that an order cannot be placed under the economy act if a more specific statutory authority exists.',
8:'purchases pursuant to the economy act are not exempt from the requirements of 48 cfr 7.3, “contractor versus government performance.”',
9:'thus, omb circular a76 applies to economy act agreements. economy act agreement must achieve full cost recovery, and there is',
10:'no law permits a waiver of this full cost recovery requirement. full cost recovery includes direct and indirect costs. further,',
11:'the economy act does not allow a federal agency or unit to receive a profit when providing goods or services.',
12:'the far states that economy act orders must include 1 a description of the supplies or services required; 2 delivery',
13:'requirements; 3 a funds citation; 4 a payment provision ; and 5 acquisition authority as may be appropriate. further, each',
14:'economy act order shall be supported by a determination and finding d&f. the d&f shall state that: 1 use of',
15:'an interagency acquisition is in the best interest of the government; and 2 the supplies or services cannot be obtained',
16:'as conveniently or economically by contracting directly with a private source. if the economy act order requires contracting action by',
17:'the servicing agency, the d&f shall also include a statement that at least one of the following circumstances is applicable:',
18:'1 the acquisition will appropriately be made under an existing contract of the servicing agency, entered into before placement of',
19:'the order, to meet the requirements of the servicing agency for the same or similar supplies or services; 2 the',
20:'servicing agency has capabilities or expertise to enter into a contract for such supplies or services which is not available',
21:'within the requesting agency; or 3 the servicing agency is specifically authorized by law or regulation to purchase such supplies',
22:'or services on behalf of other agencies. the d&f must be approved by a contracting officer of the requesting agency',
23:'with authority to contract for the supplies or services to be ordered, or by another official designated by the agency',
24:'head, except that, if the servicing agency is not covered by the far, approval of the d&f may not be',
25:'delegated below the senior procurement executive of the requesting agency omb rules for intragovernmental transactions; economy act agreements in november,',
26:'2006, omb issued rules on what needs to be in agreements involving the transfer of funds between agencies. these rules',
27:'require that certain financial info be included, as well as special provisions addressing termination costs and dispute resolution. all economy',
28:'act agreements must now include the following financial data for both agencies in an intragovernmental transaction: treasury account symbol tas,',
29:'also referred to as the appropriation code business partner network bpn no. duns should be used. the duns is necessary',
30:'in order to register the bpn. business event type code betc generally the codes used will be disb for gross',
31:'disbursement or coll for offsetting collection depending on whether you are the requesting or servicing agency. this link contains information',
32:'on the betc: http://www.fms.treas.gov/gwa/factsheetbetc.html in addition, omb is requiring new cancellation and dispute resolution provisions, which must be incorporated into',
33:'the agreement; see sections 8 and 9. 2. model economy act agreement. memorandum of understanding pursuant to the economy act',
34:'through which [name of your operating unit] u.s. department of commerce is purchasing [state what you are purchasing] from [name',
35:'of other agency] agreement no. [note: this format is for use only to order goods or services from another federal',
36:'agency.] 2 1. parties and purpose this memorandum of understanding mou establishes an agreement between the [name of doc office],',
37:'u.s. department of commerce doc and [name of other agency] through which [name of doc office] will pay [name of',
38:'other agency] for [provide a general description of the good/service for which doc is paying]. 2. background [provide background information',
39:'which addresses why we are requesting the goods/services.] 3. authority the authorities for doc and [name of other agency] to',
40:'enter into this agreement are: 1 the economy act, 31 u.s.c. § 1535, which provides that an agency may place',
41:'an order with a major organizational unit within the same agency or another agency for goods or services if: a',
42:'amounts are available; b the ordering agency decides the order is in the best interest of the united states government;',
43:'c the agency to fill the order is able to provide or get by contract the ordered goods or services;',
44:'and d the agency decides ordered goods or services cannot be provided by contract as conveniently or cheaply by a',
45:'commercial enterprise payments must be made on the basis of the actual cost of goods or services provided; and 2',
46:'[set forth your operating unit’s legal authority under which it is making the purchase for goods/or services, i.e., the programmatic',
47:'authority to which the purchase is related]. 4. economy act findings as set forth in the attached “determinations and findings',
48:'pursuant to 48 cfr 17.503,” [name of doc office] warrants that sufficient funding amounts are available, that this agreement is',
49:'in the best interest of the united states government, and that the services requested cannot be provided by contract as',
50:'conveniently or cheaply by a commercial enterprise. [pursuant to 48 cfr 17.503, if the economy act order requires contracting action',
51:'by the servicing agency, there also must be a determination that at least one of the following circumstances is applicable:',
52:'1 the acquisition will appropriately be made under an existing contract of the servicing agency, entered into before placement of',
53:'the order, to meet the requirements 3 of the servicing agency for the same or similar supplies or services; 2',
54:'the servicing agency has capabilities or expertise to enter into a contract for such supplies or services which is not',
55:'available within the requesting agency; or 3 the servicing agency is specifically authorized by law or regulation to purchase such',
56:'supplies or services on behalf of other agencies. accordingly, if the order requires such contract action, the agreement also must',
57:'include a statement such as: “[name of doc office] warrants [choose one of the above 3 situations which applies].”] [name',
58:'of other agency] warrants that it is able to provide or get by contract the requested services. [if the agreement',
59:'requires contracting action by the servicing agency, the agreement must also include the following sentence: [name of other agency] warrants',
60:'that it has adequate statutory authority for the contractual action and will comply fully with the competition requirements of part',
61:'6 of the federal acquisition regulations as well as all other legal or regulatory requirements applicable to the contract. ]1',
62:'5. terms and conditions [state the terms and conditions of the agreement, i.e., what it is specifically that you are',
63:'purchasing, delivery requirements, and the amount that the other party will receive as payment. the goods/services ordered must further the',
64:'mission of the department.] [orders that would divide the costs of goods or services among agencies participating in events such',
65:'as conferences, etc., on a basis other than each agency paying only for what it receives are not appropriate. you',
66:'should discuss such an arrangement with the general law division 2024825391 prior to drafting an agreement.] 6. transfer of funds',
67:'[explain the details of how doc will pay for the goods/services, e.g., whether payments will be monthly, quarterly, etc. or',
68:'in advance if required by the servicing agency.] the appropriation out of which [name of doc office] will pay for',
69:'these services is: . these funds expire on [state the date on which the funds expire].2 this amount will be',
70:'deobligated to the extent that the servicing agency has not incurred obligations before the end of the period of availability',
71:'of that appropriation. [note: the 1 note: if the servicing agency is not subject to the far, contact the general',
72:'law division for further advice in drafting the agreement. 2 however, if the funds are “no year” funds, state that',
73:'doc is using “no year” funds for the purchase. 4 servicing agency may ask for advance payment for all of',
74:'part of the estimated costs of furnishing the supplies or services, or payment may be made after the supplies and',
75:'services have been furnished. under no circumstances will the amount paid be more than the actual costs of the goods',
76:'or services.] [note: include the appropriation code and all appropriate codes and numbers as described above in the introductory notes.]',
77:'7. contact the contacts of each part to this agreement are: [name of doc contact] [title of doc contact] [address',
78:'of doc contact person] phone:[phone number of doc contact person] fax : [fax number of doc contact person] email: [email',
79:'address of doc contact person] [name of other party’s contact person] [title of other party’s contact person] [address of other',
80:'party’s contact person] phone:[phone number of other party’s contact person] fax : [fax number of other party’s contact person] email:',
81:'[email address of other party’s contact person] the parties agree that if there is a change regarding the information in',
82:'this section, the party making the change will notify the other party in writing of such change. 8. duration of',
83:'agreement, amendments and modifications this agreement will become effective when signed by all parties. the agreement will terminate on [date],',
84:'but may be amended at any time by mutual consent of the parties. [note: if the agreement will last longer',
85:'than 3 years, the following sentence should be included in the agreement: “the parties will review this agreement at least',
86:'once every three years to determine whether it should be revised, renewed, or canceled.”] any party may terminate this agreement',
87:'by providing days written notice to the other party. this agreement is subject to the availability of funds. [add cancellation',
88:'provision per omb requirements:] if [buyer] cancels the order, [seller] is authorized to collect costs incurred prior to cancellation of',
89:'the order plus any termination costs, up to the total payment amount provided for under this agreement. 5 9. resolution',
90:'of disagreements nothing herein is intended to conflict with current doc or [name of other agency] directives. if the terms',
91:'of this agreement are inconsistent with existing directives of either of the agencies entering into this agreement, then those portions',
92:'of this agreement which are determined to be inconsistent shall be invalid, but the remaining terms and conditions not affected',
93:'by the inconsistency shall remain in full force and effect. at the first opportunity for review of the agreement, all',
94:'necessary changes will be accomplished either by an amendment to this agreement or by entering into a new agreement, whichever',
95:'is deemed expedient to the interest of both parties. [add dispute resolution provision per omb requirements:] disputes shall be resolved',
96:'pursuant to applicable provisions of the business rules for intragovernmental transactions delineated in the treasury financial manual, vol. 1, bulletin',
97:'200703, section vii resolving intragovernmental disputes and major differences. [signaturemust be an official with authority to sign economy act agreements]',
98:'[typed name] [typed title] [typed office at doc] u.s. department of commerce [typed address] [date] [signature of person who has',
99:'authority to commit other party to the economy act agreement] [typed name] [typed title] [typed name of other agency] [typed',
100:'address of other agency] [date] attachment 6 determinations and findings pursuant to 48 cfr 17.503 [name of doc office] warrants:',
101:'that sufficient funding amounts are available; that this agreement is in the best interest of the united states government; and',
102:'that the services requested cannot be provided by contract as conveniently or cheaply by a commercial enterprise. [note: place a',
103:'check in each space for each finding to indicate it has been substantiated.] it has been determined that this economy',
104:'act order: does not require contracting action by the servicing agency; or does require contracting action by the servicing agency',
105:'and that one of the following circumstances exists: the acquisition will appropriately be made under an existing contract of the',
106:'servicing agency, entered into before placement of the order, to meet the requirements of the servicing agency for the same',
107:'or similar supplies or services; the servicing agency has capabilities or expertise to enter into a contract for such supplies',
108:'or services which is not available within the requesting agency; or the servicing agency is specifically authorized by law or',
109:'regulation, i.e., [set forth the citation for the law or regulation], to purchase such supplies or services on behalf of',
110:'other agencies. [note: place a check in each space above that applies.] [name of doc official who has authority to',
111:'sign this d&f, i.e., either a contracting officer or other official designated by the agency to sign the d&f]3 [title',
112:'and office] u.s. department of commerce date: 3 if the servicing agency is not covered by the federal acquisition regulations,',
113:'approval of the d&f may not be delegated below the senior procurement executive of the department.',