FEDERAL ACQUISITION CIRCULAR

May 16, 2011 Number 2005-50

Effective, May 16, 2011

Looseleaf Pages

Federal Acquisition Circular (FAC) 2005-50 is issued

under the authority of the Secretary of Defense, the

Administrator of General Services, and the Administrator for

the National Aeronautics and Space Administration.

Unless otherwise specified, all Federal Acquisition

Regulation (FAR) and other directive material contained in

FAC 2005-50 are effective March 16, 2011, except for Item

IV, which is effective April 15, 2011, and Item II, which is

effective May 16, 2011.

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FAC 2005-50 FILING INSTRUCTIONS

NOTE: The following pages reflect FAR final rule amendments.

Please do not file these pages until their effective date of

May 16, 2011.

Remove Pages Insert Pages

Part 5 TOC Part 5 TOC

pp. 5-1 and 5-2 pp. 5-1 and 5-2

5.3-1 and 5.3-2 5.3-1 and 5.3-2

5.4-1 and 5.4-2 5.4-1 and 5.4-2

5.7-1 and 5.7-2 5.7-1 and 5.7-2

Part 8 TOC Part 8 TOC

pp. 8-1 and 8-2 pp. 8-1 and 8-2

8.4-1 thru 8.4-8 8.4-1 thru 8.4-12

16.5-3 thru 16.5-6 16.5-3 thru 16.5-8

18.1-1 and 18.1-2 18.1-1 and 18.1-2

38.1-1 and 38.1-2 38.1-1 and 38.1-2

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5-1

Sec.

PART 5—PUBLICIZING CONTRACT ACTIONS

5.000 Scope of part.5.001 Definition.5.002 Policy.5.003 Governmentwide point of entry.

Subpart 5.1—Dissemination of Information5.101 Methods of disseminating information.5.102 Availability of solicitations.

Subpart 5.2—Synopses of Proposed Contract Actions

5.201 General.5.202 Exceptions.5.203 Publicizing and response time.5.204 Presolicitation notices.5.205 Special situations.5.206 Notices of subcontracting opportunities.5.207 Preparation and transmittal of synopses.

Subpart 5.3—Synopses of Contract Awards5.301 General.5.302 Preparation and transmittal of synopses of

awards.5.303 Announcement of contract awards.

Subpart 5.4—Release of Information5.401 General.5.402 General public.

5.403 Requests from Members of Congress.5.404 Release of long-range acquisition estimates.5.404-1 Release procedures.5.404-2 Announcements of long-range acquisition

estimates.5.405 Exchange of acquisition information.5.406 Public disclosure of justification documents for

certain contract actions.

Subpart 5.5—Paid Advertisements5.501 Definitions.5.502 Authority.5.503 Procedures.5.504 Use of advertising agencies.

Subpart 5.6—Publicizing Multi-Agency Use Contracts

5.601 Governmentwide database of contracts.

Subpart 5.7—Publicizing Requirements Under the American Recovery and Reinvestment Act of

20095.701 Scope.5.702 Applicability.5.703 Definition.5.704 Publicizing preaward.5.705 Publicizing postaward.

FAC 2005–50 MAY 16, 2011

5-2

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SUBPART 5.3—SYNOPSES OF CONTRACT AWARDS 5.303

5.3-1

Subpart 5.3—Synopses of Contract Awards

5.301 General.(a) Except for contract actions described in paragraph (b)

of this section and as provided in 5.003, contracting officersmust synopsize through the GPE the following:

(1) Contract awards exceeding $25,000 that are—(i) Covered by the World Trade Organization Gov-

ernment Procurement Agreement or a Free Trade Agreement(see subpart 25.4); or

(ii) Likely to result in the award of any subcontracts.However, the dollar threshold is not a prohibition against pub-licizing an award of a smaller amount when publicizing wouldbe advantageous to industry or to the Government.

(2) Certain contract actions greater than the simplifiedacquisition threshold as follows—

(i) Federal Supply Schedule (FSS) orders or BlanketPurchase Agreements supported by a limited-source justifica-tion (excluding brand name) in accordance with 8.405-6; or

(ii) Task or delivery orders awarded without provid-ing fair opportunity in accordance with 16.505(b)(2).

(3) A notice is not required under this section if thenotice would disclose the executive agency’s needs and thedisclosure of such needs would compromise the national secu-rity.

(b) A notice is not required under paragraph (a)(1) of thissection if—

(1) The award results from acceptance of an unsolicitedresearch proposal that demonstrates a unique and innovativeresearch concept and publication of any notice would disclosethe originality of thought or innovativeness of the proposedresearch or would disclose proprietary information associatedwith the proposal;

(2) The award results from a proposal submitted underthe Small Business Innovation Development Act of 1982(Pub. L. 97-219);

(3) The contract action is an order placed under subpart16.5 or 8.4, except see paragraph (a)(2) of this section;

(4) The award is made for perishable subsistence sup-plies;

(5) The award is for utility services, other than telecom-munications services, and only one source is available;

(6) The contract action—(i) Is for an amount not greater than the simplified

acquisition threshold;(ii) Was made through a means where access to the

notice of proposed contract action was provided through theGPE; and

(iii) Permitted the public to respond to the solicita-tion electronically; or

(7) The award is for the services of an expert to supportthe Federal Government in any current or anticipated litiga-

tion or dispute pursuant to the exception to full and open com-petition authorized at 6.302-3.

(c) With respect to acquisitions covered by the World TradeOrganization Government Procurement Agreement or a FreeTrade Agreement, contracting officers must submit synopsesin sufficient time to permit their publication in the GPE notlater than 60 days after award.

(d) Posting is required of the justifications for—(1) Contracts awarded using other than full and open

competition in accordance with 6.305;(2) FSS orders or Blanket Purchase Agreements with an

estimated value greater than the simplified acquisition thresh-old and supported by a limited-sources justification (see8.405-6(a)); or

(3) Task or delivery orders greater than the simplifiedacquisition threshold and awarded without providing for fairopportunity in accordance with 16.505(b)(2)(ii)(B) and (D).

5.302 Preparation and transmittal of synopses of awards.Contracting officers shall transmit synopses of contract

awards in the same manner as prescribed in 5.207.

5.303 Announcement of contract awards.(a) Public announcement. Contracting officers shall make

information available on awards over $4 million (unlessanother dollar amount is specified in agency acquisition reg-ulations) in sufficient time for the agency concerned toannounce it by 5 p.m. Washington, DC, time on the day ofaward. Agencies shall not release information on awardsbefore the public release time of 5 p.m. Washington, DC time.Contracts excluded from this reporting requirement include—

(1) Those placed with the Small Business Administra-tion under Section 8(a) of the Small Business Act;

(2) Those placed with foreign firms when the place ofdelivery or performance is outside the United States and itsoutlying areas; and

(3) Those for which synopsis was exempted under5.202(a)(1).

(b) Local announcement. Agencies may also release infor-mation on contract awards to the local press or other media.When local announcements are made for contract awards inexcess of the simplified acquisition threshold, they shallinclude—

(1) For awards after sealed bidding, a statement that thecontract was awarded after competition by sealed bidding, thenumber of offers solicited and received, and the basis forselection (e.g., the lowest responsible bidder); or

(2) For awards after negotiation, the information pre-scribed by 15.503(b), and after competitive negotiation (eitherprice or design competition), a statement to this effect, and ingeneral terms the basis for selection.

FAC 2005–50 MAY 16, 2011

5.3-2

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SUBPART 5.4—RELEASE OF INFORMATION 5.405

5.4-1

Subpart 5.4—Release of Information

5.401 General.(a) A high level of business security must be maintained in

order to preserve the integrity of the acquisition process.When it is necessary to obtain information from potential con-tractors and others outside the Government for use in prepar-ing Government estimates, contracting officers shall ensurethat the information is not publicized or discussed with poten-tial contractors.

(b) Contracting officers may make available maximuminformation to the public, except information—

(1) On plans that would provide undue or discrimina-tory advantage to private or personal interests;

(2) Received in confidence from an offeror;(3) Otherwise requiring protection under Freedom of

Information Act (see Subpart 24.2) or Privacy Act (seeSubpart 24.1); or

(4) Pertaining to internal agency communications(e.g., technical reviews, contracting authority or other rea-sons, or recommendations referring thereto).

(c) This policy applies to all Government personnel whoparticipate directly or indirectly in any stage of the acquisitioncycle.

5.402 General public.Contracting officers shall process requests for specific

information from the general public, including suppliers, inaccordance with Subpart 24.1 or 24.2, as appropriate.

5.403 Requests from Members of Congress.Contracting officers shall give Members of Congress, upon

their request, detailed information regarding any particularcontract. When responsiveness would result in disclosure ofclassified matter, business confidential information, or infor-mation prejudicial to competitive acquisition, the contractingofficer shall refer the proposed reply, with full documentation,to the agency head and inform the legislative liaison office ofthe action.

5.404 Release of long-range acquisition estimates.To assist industry planning and to locate additional sources

of supply, it may be desirable to publicize estimates of unclas-sified long-range acquisition requirements. Estimates may bepublicized as far in advance as possible.

5.404-1 Release procedures.(a) Application. The agency head, or a designee, may

release long-range acquisition estimates if the informationwill—

(1) Assist industry in its planning and facilitate meetingthe acquisition requirements;

(2) Not encourage undesirable practices (e.g., attemptsto corner the market or hoard industrial materials); and

(3) Not indicate the existing or potential mobilization ofthe industry as a whole.

(b) Conditions. The agency head shall ensure that—(1) Classified information is released through existing

security channels in accordance with agency securityregulations;

(2) The information is publicized as widely as practica-ble to all parties simultaneously by any of the means describedin this part;

(3) Each release states that—(i) The estimate is based on the best information

available,(ii) The information is subject to modification and is

in no way binding on the Government, and(iii) More specific information relating to any indi-

vidual item or class of items will not be furnished until the pro-posed action is synopsized through the GPE or the solicitationis issued;

(4) Each release contains the name and address of thecontracting officer that will process the acquisition;

(5) Modifications to the original release are publicizedas soon as possible, in the same manner as the original; and

(6) Each release—(i) Is coordinated in advance with small business,

public information, and public relations personnel, asappropriate;

(ii) Contains, if applicable, a statement that smallbusiness set-asides may be involved, but that a determinationcan be made only when acquisition action is initiated; and

(iii) Contains the name or description of the item, andthe estimated quantity to be acquired by calendar quarter, fis-cal year, or other period. It may also contain such additionalinformation as the number of units last acquired, the unitprice, and the name of the last supplier.

5.404-2 Announcements of long-range acquisition estimates.Further publicizing, consistent with the needs of the indi-

vidual case, may be accomplished by announcing through theGPE that long-range acquisition estimates have been pub-lished and are obtainable, upon request, from the contractingofficer.

5.405 Exchange of acquisition information.(a) When the same item or class of items is being acquired

by more than one agency, or by more than one contractingactivity within an agency, the exchange and coordination ofpertinent information, particularly cost and pricing data,between these agencies or contracting activities is necessaryto promote uniformity of treatment of major issues and theresolution of particularly difficult or controversial issues. The

5.406 FEDERAL ACQUISITION REGULATION

5.4-2

exchange and coordination of information is particularly ben-eficial during the period of acquisition planning, presolicita-tion, evaluation, and pre-award survey.

(b) When substantial acquisitions of major items areinvolved or when the contracting activity deems it desirable,the contracting activity shall request appropriate information(on both the end item and on major subcontracted compo-nents) from other agencies or contracting activities responsi-ble for acquiring similar items. Each agency or contractingactivity receiving such a request shall furnish the informationrequested. The contracting officer, early in a negotiation of acontract, or in connection with the review of a subcontract,shall request the contractor to furnish information as to thecontractor’s or subcontractor’s previous Government con-

tracts and subcontracts for the same or similar end items andmajor subcontractor components.

5.406 Public disclosure of justification documents for certain contract actions.(a) Justifications and approvals for other than full and open

competition must be posted in accordance with 6.305.(b) Limited-source justifications (excluding brand name)

for FSS orders or blanket purchase agreements with an esti-mated value greater than the simplified acquisition thresholdmust be posted in accordance with 8.405-6(a)(2).

(c) Justifications for task or delivery orders greater than thesimplified acquisition threshold and awarded without provid-ing for fair opportunity must be posted in accordance with16.505(b)(2)(ii)(D).

FAC 2005–50 MAY 16, 2011

SUBPART 5.7—PUBLICIZING REQUIREMENTS UNDER THE AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 5.705

5.7-1

Subpart 5.7—Publicizing Requirements Under the American Recovery and

Reinvestment Act of 2009

5.701 Scope.This subpart prescribes posting requirements for presolic-

itation and award notices for actions funded in whole or in partby the American Recovery and Reinvestment Act of 2009(Pub. L. 111-5) (Recovery Act). The requirements of this sub-part enhance transparency to the public.

5.702 Applicability.This subpart applies to all actions expected to exceed

$25,000 funded in whole or in part by the Recovery Act.Unlike subparts 5.2 and 5.3, this subpart includes additionalrequirements for orders and for actions that are not both fixed-price and competitive.

5.703 Definition.As used in this subpart—“Task or delivery order contract” means a “delivery order

contract,” and a “task order contract,” as defined in 16.501-1.For example, it includes Governmentwide Acquisition Con-tracts (GWACs), multi-agency contracts (MACs), and otherindefinite-delivery/indefinite-quantity contracts, whether sin-gle award or multiple award. It also includes Federal SupplySchedule contracts (including Blanket Purchase Agreementsunder Subpart 8.4).

5.704 Publicizing preaward.(a)(1) Follow the publication procedures at 5.201.

(2) In addition, notices of proposed contract actions arerequired for orders exceeding $25,000, funded in whole or inpart by the Recovery Act, which are issued under task or deliv-ery order contracts. This does not include modifications toexisting orders, but these modifications are covered post-award, see 5.705. These notices are for “informational pur-poses only,” therefore, 5.203 does not apply. Contractingofficers should concurrently use their usual solicitation prac-tice (e.g., e-Buy).

(b) Contracting officers shall identify proposed contractactions, funded in whole or in part by the Recovery Act, byusing the following instructions which are also available in theRecovery FAQs under “Buyers/Engineers” at the Govern-mentwide Point of Entry (GPE) (https://www.fedbizopps.gov):

(1) If submitting notices electronically via ftp or email,enter the word “Recovery” as the first word in the title field.

(2) If using the GPE directly, select the “yes” radio but-ton for the “Is this a Recovery and Reinvestment Act action”field on the “Notice Details” form (Step 2) located below the“NAICS Code” field. In addition, enter the word “Recovery”as the first word in the title field.

(c) In preparing the description required by 5.207(a)(16),use clear and concise language to describe the planned pro-curement. Use descriptions of the goods and services (includ-ing construction), that can be understood by the generalpublic. Avoid the use of acronyms or terminology that is notwidely understood by the general public.

5.705 Publicizing postaward.Follow usual publication procedures at 5.301, except that

the following supersede the exceptions at 5.301(b)(2) through(7):

(a)(1) Publicize the award notice for any action exceeding$500,000, funded in whole or in part by the Recovery Act,including—

(i) Contracts; (ii) Modifications to existing contracts;(iii) Orders which are issued under task or delivery

order contracts; and(iv) Modifications to orders under task or delivery

order contracts.(2) Contracting officers shall identify contract actions,

funded in whole or in part by the Recovery Act, by using thefollowing instructions which are also available in the Recov-ery FAQS under “Buyers/Engineers” at the GovernmentwidePoint of Entry (GPE) (https://www.fedbizopps.gov):

(i) If submitting notices electronically via ftp oremail, enter the word “Recovery” as the first word in the titlefield.

(ii) If using the GPE directly, select the “yes” radiobutton for the “Is this a Recovery and Reinvestment Actaction” field on the “Notice Details” form (Step 2) locatedbelow the “NAICS Code” field. In addition, enter the word“Recovery” as the first word in the title field.

(3) In preparing the description required by5.207(a)(16), use clear and concise language to describe theplanned procurement. Use descriptions of the goods and ser-vices (including construction), that can be understood by thegeneral public. Avoid the use of acronyms or terminology thatis not widely understood by the general public.

(b) Regardless of dollar value, if the contract action,including all modifications and orders under task or deliveryorder contracts, is not both fixed-price and competitivelyawarded, publicize the award notice and include in thedescription the rationale for using other than a fixed-pricedand/or competitive approach. Include in the description astatement specifically noting if the contract action was notawarded competitively, or was not fixed-price, or was neithercompetitive nor fixed-price. These notices and the rationalewill be available to the public at the GPE, so do not includeany proprietary information or information that would com-promise national security. The following table provides exam-ples for when a rationale is required.

FAC 2005–50 MAY 16, 2011

5.705 FEDERAL ACQUISITION REGULATION

5.7-2

Posting of Rationale - Examples

(c) Contracting officers shall use the instructions availablein the Recovery FAQs under “Buyers/Engineers” at the GPE(https://www.fedbizopps.gov) to identify actions funded inwhole or in part by the Recovery Act.

* * * * * *

Description of Contract Action Rationale Required

(1) A contract is competitively awarded and is fixed-price.

Not Required.

(2) A contract is awarded that is not fixed-price.

Required.

(3) A contract is awarded without competition.

Required.

(4) An order is issued under a new or existing single award IDIQ contract.

Required if order is made under a contract described in (2) or (3).

(5) An order is issued under a new or existing multiple award IDIQ contract.

Required if one or both of the following conditions exist: (i) The order is not fixed-price. (ii) The order is awarded pursuant to an exception to the competition require-ments applicable to the underlying vehicle (e.g., award is made pursuant to an exception to the fair opportunity process).

(6) A modification is issued. Required if modification is made— (i) To a contract described in (2) or (3) above; or (ii) To an order requiring posting as described in (4) or (5) above.

(7) A contract or order is awarded pursuant to a small business contracting authority (e.g., SBA’s sec-tion 8(a) program).

Required if one or both of the following conditions exist: (i) the contract or order is not fixed-price; (ii) the contract or order was not awarded using competition (e.g., a non-competitive 8(a) award).

FAC 2005–42 JULY 16, 2010

8-1

Sec.

PART 8—REQUIRED SOURCES OF SUPPLIES AND SERVICES

8.000 Scope of part.8.001 General.8.002 Priorities for use of Government supply sources.8.003 Use of other Government supply sources.8.004 Contract clause.

Subpart 8.1—Excess Personal Property8.101 [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 Schedules8.401 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 Limited 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—Acquisition of Helium8.500 Scope of subpart.8.501 Definitions.8.502 Policy.8.503 Exception.8.504 Procedures.8.505 Contract clause.

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 Disabled8.700 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 Vehicles8.1100 Scope of subpart.8.1101 Definitions.8.1102 Presolicitation requirements.8.1103 Contract requirements.8.1104 Contract clauses.

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SUBPART 8.4—FEDERAL SUPPLY SCHEDULES 8.402

8.4-1

Subpart 8.4—Federal Supply Schedules

8.401 Definitions.As used in this subpart—“Ordering activity” means an activity that is authorized to

place orders, or establish blanket purchase agreements (BPA),against the General Services Administration’s (GSA) Multi-ple Award Schedule contracts. A list of eligible ordering activ-ities is available at http://www.gsa.gov/schedules (click “ForCustomers Ordering from Schedules” and then “Eligibility toUse GSA Sources”).

“Multiple Award Schedule (MAS)” means contractsawarded by GSA or the Department of Veterans Affairs (VA)for similar or comparable supplies, or services, establishedwith more than one supplier, at varying prices. The primarystatutory authorities for the MAS program are Title III of theFederal Property and Administrative Services Act of 1949(41 U.S.C. 251, et seq.) and Title 40 U.S.C. 501, Services forExecutive Agencies.

“Requiring agency” means the agency needing the sup-plies or services.

“Schedules e-Library” means the on-line source for GSAand 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 generi-cally similar (but not identical) supplies or services that areintended 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 ScheduleProgram. The Federal Supply Schedule program is directedand managed by GSA and provides Federal agencies (see8.002) with a simplified process for obtaining commercialsupplies and services at prices associated with volume buying.Indefinite delivery contracts are awarded to provide suppliesand services at stated prices for given periods of time. GSAmay delegate certain responsibilities to other agencies(e.g., GSA has delegated authority to the VA to procure med-ical supplies under the VA Federal Supply Schedules pro-gram). Orders issued under the VA Federal Supply Scheduleprogram are covered by this subpart. Additionally, the Depart-ment of Defense (DoD) manages similar systems of schedule-type contracting for military items; however, DoD systems arenot covered by this subpart.

(b) GSA schedule contracts require all schedule contrac-tors to publish an “Authorized Federal Supply SchedulePricelist” (pricelist). The pricelist contains all supplies andservices offered by a schedule contractor. In addition, eachpricelist contains the pricing and the terms and conditions per-taining to each Special Item Number that is on schedule. Theschedule contractor is required to provide one copy of its

pricelist to any ordering activity upon request. Also, a copy ofthe pricelist may be obtained from the Federal Supply Serviceby submitting a written e-mail request toschedules.infocenter@gsa.gov or by telephone at1-800-488-3111. This subpart, together with the pricelists,contain necessary information for placing delivery or taskorders with schedule contractors. In addition, the GSA sched-ule contracting office issues Federal Supply Schedules publi-cations that contain a general overview of the Federal SupplySchedule (FSS) program and address pertinent topics. Order-ing activities may request copies of schedules publications bycontacting the Centralized Mailing List Service through theInternet at http://www.gsa.gov/cmls, submitting written e-mail requests to CMLS@gsa.gov; or by completing GSAForm 457, FSS Publications Mailing List Application, andmailing it to the GSA Centralized Mailing List Service (7SM),P.O. Box 6477, Fort Worth, TX 76115. Copies of GSAForm 457 may also be obtained from the above-referencedpoints of contact.

(c)(1) GSA offers an on-line shopping service called “GSAAdvantage!” through which ordering activities may placeorders against Schedules. (Ordering activities may also useGSA Advantage! to place orders through GSA’s Global Sup-ply System, a GSA wholesale supply source, formerly knownas “GSA Stock” or the “Customer Supply Center.”FAR Subpart 8.4 is not applicable to orders placed through theGSA Global Supply System.) Ordering activities may accessGSA Advantage! through the GSA Federal Supply ServiceHome Page (http://www.gsa.gov/fss) or the GSA Federal Sup-ply Schedule Home Page at http://www.gsa.gov/schedules.

(2) GSA Advantage! enables ordering activities tosearch specific information (i.e., national stock number, partnumber, common name), review delivery options, placeorders directly with Schedule contractors (except see 8.405-6)and pay for orders using the Governmentwide commercialpurchase card.

(d)(1) “e-Buy,” GSA’s electronic Request for Quotation(RFQ) system, is a part of a suite of on-line tools which com-plement GSA Advantage!. E-Buy allows ordering activities topost requirements, obtain quotes, and issue orders electroni-cally. Posting an RFQ on e-Buy—

(i) Is one medium for providing fair notice to allschedule contractors offering such supplies and services asrequired by 8.405-1, 8.405-2, and 8.405-3; and

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

(2) Ordering activities may access e-Buy at http://www.ebuy.gsa.gov. For more information or assistance oneither GSA Advantage! or e-Buy, contact GSA at Internet e-mail address gsa.advantage@gsa.gov.

(e) For more information or assistance regarding the Fed-eral Supply Schedule Program, review the following website:http://www.gsa.gov/schedules. Additionally, for on-line train-

FAC 2005–50 MAY 16, 2011

8.403 FEDERAL ACQUISITION REGULATION

8.4-2

ing courses regarding the Schedules Program, review the fol-lowing website: http://fsstraining.gsa.gov.

(f) For administrative convenience, an ordering activitycontracting officer may add items not on the Federal SupplySchedule (also referred to as open market items) to a FederalSupply Schedule blanket purchase agreement (BPA) or anindividual task or delivery order only if—

(1) All applicable acquisition regulations pertaining tothe purchase of the items not on the Federal Supply Schedulehave been followed (e.g., publicizing (Part 5), competitionrequirements (Part 6), acquisition of commercial items(Part 12), contracting methods (Parts 13, 14, and 15), andsmall business programs (Part 19));

(2) The ordering activity contracting officer has deter-mined the price for the items not on the Federal Supply Sched-ule is fair and reasonable;

(3) The items are clearly labeled on the order as itemsnot on the Federal Supply Schedule; and

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

(g) When using the Governmentwide commercial pur-chase card as a method of payment, orders at or below themicro-purchase threshold are exempt from verification in theCentral Contractor Registration (CCR) database as to whetherthe contractor has a delinquent debt subject to collection underthe Treasury Offset Program (TOP).

8.403 Applicability.(a) Procedures in this subpart apply to—

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

(2) BPAs established against Federal Supply Schedulecontracts.

(b) GSA may establish special ordering procedures for aparticular schedule. In this case, that schedule will specifythose special ordering procedures. Unless otherwise noted,special ordering procedures established for a Federal SupplySchedule take precedence over the procedures in 8.405.

(c) In accordance with section 1427(b) of Public Law 108-136, for requirements that substantially or to a dominantextent specify performance of architect-engineer services (asdefined 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 requirement at 19.202-1(e)(1)(iii)) do notapply to BPAs or orders placed against Federal Supply Sched-ules contracts (but see 8.405-5). BPAs and orders placedagainst a MAS, using the procedures in this subpart, are con-

sidered to be issued using full and open competition (see6.102(d)(3)). Therefore, when establishing a BPA (as autho-rized by 13.303-2(c)(3)), or placing orders under Federal Sup-ply Schedule contracts using the procedures of 8.405,ordering activities shall not seek competition outside of theFederal Supply Schedules or synopsize the requirement; butsee paragraph (g) of this section.

(b)(1) The contracting officer, when placing an order orestablishing a BPA, is responsible for applying the regulatoryand statutory requirements applicable to the agency for whichthe order is placed or the BPA is established. The requiringagency shall provide the information on the applicable regu-latory and statutory requirements to the contracting officerresponsible for placing the order.

(2) For orders over $500,000, see subpart 17.5 for addi-tional requirements for interagency acquisitions. For exam-ple, the requiring agency shall make a determination that useof the Federal Supply Schedule is the best procurementapproach, in accordance with 17.502-1(a).

(c) Acquisition planning. Orders placed under a FederalSupply Schedule contract—

(1) Are not exempt from the development of acquisitionplans (see Subpart 7.1), and an information technology acqui-sition strategy (see Part 39);

(2) Must comply with all FAR requirements for a bun-dled contract when the order meets the definition of “bundledcontract” (see 2.101(b)); and

(3) Must, whether placed by the requiring agency, or onbehalf of the requiring agency, be consistent with the requiringagency’s statutory and regulatory requirements applicable tothe acquisition of the supply or service.

(d) Pricing. Supplies offered on the schedule are listed atfixed prices. Services offered on the schedule are priced eitherat hourly rates, or at a fixed price for performance of a specifictask (e.g., installation, maintenance, and repair). GSA hasalready determined the prices of supplies and fixed-price ser-vices, and rates for services offered at hourly rates, underschedule contracts to be fair and reasonable. Therefore, order-ing activities are not required to make a separate determina-tion of fair and reasonable pricing, except for a priceevaluation as required by 8.405-2(d). By placing an orderagainst a schedule contract using the procedures in 8.405, theordering activity has concluded that the order represents thebest value (as defined in FAR 2.101) and results in the lowestoverall cost alternative (considering price, special features,administrative costs, etc.) to meet the Government’s needs.Although GSA has already negotiated fair and reasonablepricing, ordering activities may seek additional discountsbefore placing an order (see 8.405-4).

(e) The procedures under subpart 33.1 are applicable to theissuance of an order or the establishment of a BPA against aschedule contract.

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SUBPART 8.4—FEDERAL SUPPLY SCHEDULES 8.405-1

8.4-3

(f) If the ordering activity issues an RFQ, the orderingactivity shall provide the RFQ to any schedule contractor thatrequests a copy of it.

(g)(1) Ordering activities shall publicize contract actionsfunded in whole or in part by the American Recovery andReinvestment Act of 2009 (Pub. L. 111-5):

(i) Notices of proposed MAS orders (includingorders issued under BPAs) that are for “informational pur-poses only” exceeding $25,000 shall follow the procedures in5.704 for posting orders.

(ii) Award notices for MAS orders (including ordersissued under BPAs) shall follow the procedures in 5.705.

(2) When an order is awarded or a Blanket PurchaseAgreement is established with an estimated value greater thanthe simplified acquisition threshold and supported by a lim-ited-source justification at 8.405-6(a), the ordering activitycontracting officer must—

(i) Publicize the action (see 5.301); and(ii) Post the justification in accordance with

8.405-6(a)(2).

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 sup-plies or services. The procedures in this section apply to allschedules. For establishing BPAs and for orders under BPAssee 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 sub-

section when ordering supplies and services that are listed inthe schedules contracts at a fixed price for the performance ofa specific task, where a statement of work is not required(e.g., installation, maintenance, and repair). For establishingBPAs 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 con-tractor that can meet the agency’s needs. Although notrequired to solicit from a specific number of schedule contrac-tors, ordering activities should attempt to distribute ordersamong contractors.

(c) Orders exceeding the micro-purchase threshold but notexceeding the simplified acquisition threshold. Orderingactivities shall place orders with the schedule contractor thatcan provide the supply or service that represents the bestvalue. Before placing an order, an ordering activity shall:

(1) Consider reasonably available information about thesupply or service offered under MAS contracts by surveyingat least three schedule contractors through the GSA Advan-tage! on-line shopping service, by reviewing the catalogs orpricelists of at least three schedule contractors, or by request-

ing quotations from at least three schedule contractors (see8.405-5); or

(2) Document the circumstances for restricting consid-eration to fewer than three schedule contractors based on oneof the reasons at 8.405-6(a);

(d) For proposed orders exceeding the simplified acquisi-tion threshold. (1) Each order shall be placed on a competitivebasis in accordance with (d)(2) and (3) of this section, unlessthis requirement is waived on the basis of a justification thatis prepared and approved in accordance with 8.405-6.

(2) The ordering activity contracting officer shall pro-vide an RFQ that includes a description of the supplies to bedelivered or the services to be performed and the basis uponwhich 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 con-

tractors offering the required supplies or services under theappropriate multiple award schedule(s) an opportunity to sub-mit a quote; or

(ii) Provide the RFQ to as many schedule contractorsas practicable, consistent with market research appropriate tothe circumstances, to reasonably ensure that quotes will bereceived from at least three contractors that can fulfill therequirements. When fewer than three quotes are receivedfrom schedule contractors that can fulfill the requirement, thecontracting officer shall prepare a written determinationexplaining that no additional contractors capable of fulfillingthe requirement could be identified despite reasonable effortsto do so. The determination must clearly explain efforts madeto obtain quotes from at least three schedule contractors.

(4) The ordering activity contracting officer shall ensurethat all quotes received are fairly considered and award ismade in accordance with the basis for selection in the RFQ.

(e) When an order contains brand-name specifications, thecontracting officer shall post the RFQ on e-Buy along with thejustification or documentation as required by 8.405-6.

(f) In addition to price (see 8.404(d) and 8.405-4), whendetermining 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 consider-

ations.(8) Delivery terms.

(g) Minimum documentation. The ordering activity shalldocument—

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8.4-4

(1) The schedule contracts considered, noting the con-tractor 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 proce-dures 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 ratesas established by the schedule contracts. The applicable ser-vices will be identified in the Federal Supply Schedule publi-cations and the contractor’s pricelists. For establishing BPAsand for orders under BPAs see 8.405-3.

(b) Statements of Work (SOWs). All Statements of Workshall include a description of work to be performed; locationof work; period of performance; deliverable schedule; appli-cable performance standards; and any special requirements(e.g., security clearances, travel, special knowledge). To themaximum extent practicable, agency requirements shall beperformance-based statements (see Subpart 37.6).

(c) Request for Quotation procedures. The ordering activ-ity must provide the Request for Quotation (RFQ), whichincludes the statement of work and evaluation criteria(e.g., experience and past performance), to schedule contrac-tors that offer services that will meet the agency’s needs. TheRFQ 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 con-tractor that can meet the agency’s needs. The ordering activityshould 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, inaccordance with 8.405-2(b).

(ii) The ordering activity shall provide the RFQ(including the statement of work and evaluation criteria) to atleast three schedule contractors that offer services that willmeet the agency’s needs or document the circumstances forrestricting consideration to fewer than three schedule contrac-tors based on one of the reasons at 8.405-6(a).

(iii) The ordering activity shall specify the type oforder (i.e., firm-fixed-price, labor-hour) for the services iden-tified in the statement of work. The contracting officer shouldestablish firm-fixed-prices, as appropriate.

(3) For proposed orders exceeding the simplified acqui-sition threshold. In addition to meeting the requirements of8.405-2(c)(2)(i) and (iii), the following procedures apply:

(i) Each order shall be placed on a competitive basisin accordance with (c)(3)(ii) and (iii) of this section, unlessthis requirement is waived on the basis of a justification thatis prepared and approved in accordance with 8.405-6.

(ii) The ordering activity contracting officer shallprovide an RFQ that includes a statement of work and theevaluation 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 appropri-ate multiple-award schedule(s) an opportunity to submit aquote; or

(B) Provide the RFQ to as many schedule con-tractors as practicable, consistent with market research appro-priate to the circumstances, to reasonably ensure that quoteswill be received from at least three contractors that can fulfillthe requirements. When fewer than three quotes are receivedfrom schedule contractors that can fulfill the requirements, thecontracting officer shall prepare a written determination toexplain that no additional contractors capable of fulfilling therequirements could be identified despite reasonable efforts todo so. The determination must clearly explain efforts made toobtain quotes from at least three schedule contractors.

(C) Ensure all quotes received are fairly consid-ered and award is made in accordance with the evaluation cri-teria in the RFQ.

(4) The ordering activity shall provide the RFQ (includ-ing the statement of work and the evaluation criteria) to anyschedule contractor who requests a copy of it.

(d) Evaluation. The ordering activity shall evaluate allresponses received using the evaluation criteria provided tothe schedule contractors. The ordering activity is responsiblefor considering the level of effort and the mix of labor pro-posed to perform a specific task being ordered, and for deter-mining that the total price is reasonable. Place the order withthe schedule contractor that represents the best value (see8.404(d) and 8.405-4). After award, ordering activities shouldprovide timely notification to unsuccessful offerors. If anunsuccessful offeror requests information on an award thatwas based on factors other than price alone, a brief explana-tion of the basis for the award decision shall be provided.

(e) Minimum documentation. The ordering activity shalldocument—

(1) The schedule contracts considered, noting the con-tractor 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 selec-

tion;(6) The price reasonableness determination required by

paragraph (d) of this subsection; and

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SUBPART 8.4—FEDERAL SUPPLY SCHEDULES 8.405-3

8.4-5

(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 acquisitionthreshold, evidence of compliance with the ordering proce-dures 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 forsupplies or services. Ordering activities shall establish theBPA with the schedule contractor(s) that can provide the sup-ply or service that represents the best value.

(2) In addition to price (see 8.404(d) and 8.405-4), whendetermining 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 consider-

ations.(viii) Delivery terms.

(3)(i) The ordering activity contracting officer shall, tothe maximum extent practicable, give preference to establish-ing multiple-award BPAs, rather than establishing a single-award BPA.

(ii) No single-award BPA with an estimated valueexceeding $103 million (including any options), may beawarded unless the head of the agency determines in writingthat—

(A) The orders expected under the BPA are sointegrally related that only a single source can reasonably per-form the work;

(B) The BPA provides only for firm-fixed pricedorders for—

(1) Products with unit prices established in theBPA; or

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

(C) Only one source is qualified and capable ofperforming the work at a reasonable price to the Government;or

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

(iii) The requirement for a determination for a single-award BPA greater than $103 million is in addition to anyapplicable requirement for a limited-source justification at

8.405-6. However, the two documents may be combined intoone document.

(iv) In determining how many multiple-award BPAsto establish or that a single-award BPA is appropriate, the con-tracting officer should consider the following factors and doc-ument the decision in the acquisition plan or BPA file:

(A) The scope and complexity of the require-ment(s);

(B) The benefits of on-going competition and theneed to periodically compare multiple technical approaches orprices;

(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 order-ing activity shall specify the procedures for placing ordersunder the BPAs in accordance with 8.405-3(c)(2).

(6) Establishment of a multi-agency BPA against a Fed-eral Supply Schedule contract is permitted if the multi-agencyBPA identifies the participating agencies and their estimatedrequirements at the time the BPA is established.

(7) Minimum documentation. The ordering activity con-tracting officer shall include in the BPA file documentationthe—

(i) Schedule contracts considered, noting the con-tractor 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));(vi) Documentation supporting the decision to estab-

lish multiple-award BPAs or a single-award BPA (see(a)(3)(iv));

(vii) Evidence of compliance with paragraph (b) ofthis section, for competitively awarded BPAs, if applicable;and

(viii) Basis for the award decision. This shouldinclude the evaluation methodology used in selecting the con-tractor, the rationale for any tradeoffs in making the selection,and a price reasonableness determination for services requir-ing a statement of work.

(b) Competitive procedures for establishing a BPA. Thisparagraph applies to the establishment of a BPA, in additionto applicable instructions in paragraph (a).

(1) For supplies, and for services not requiring a state-ment of work. The procedures of this paragraph apply whenestablishing a BPA for supplies and services that are listed inthe schedule contract at a fixed price for the performance of a

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8.405-3 FEDERAL ACQUISITION REGULATION

8.4-6

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 exceedthe simplified acquisition threshold. (A) The ordering activ-ity shall:

(1) Consider reasonably available informationabout the supply or service offered under MAS contracts bysurveying at least three schedule contractors through the GSAAdvantage! on-line shopping service, by reviewing the cata-logs or pricelists of at least three schedule contractors, or byrequesting quotations from at least three schedule contractors(see 8.405-5); or

(2) Document the circumstances for restrictingconsideration to fewer than three schedule contractors basedon one of the reasons at 8.405-6(a).

(B) The ordering activity shall establish the BPAwith the schedule contractor(s) that can provide the best value.

(ii) If the estimated value of the BPA exceeds the sim-plified acquisition threshold. The ordering activity contract-ing officer:

(A) Shall provide an RFQ that includes a descrip-tion of the supplies to be delivered or the services to be per-formed and the basis upon which the selection will be made.

(B) (1) Shall post the RFQ on e-Buy to afford allschedule contractors offering the required supplies or servicesunder the appropriate multiple award schedule(s) an opportu-nity to submit a quote; or

(2) Shall provide the RFQ to as many sched-ule contractors as practicable, consistent with market researchappropriate to the circumstances, to reasonably ensure thatquotes will be received from at least three contractors that canfulfill the requirements. When fewer than three quotes arereceived from schedule contractors that can fulfill the require-ments, the contracting officer shall prepare a written determi-nation explaining that no additional contractors capable offulfilling the requirements could be identified despite reason-able efforts to do so. The determination must clearly explainefforts made to obtain quotes from at least three schedule con-tractors.

(C) Shall ensure all quotes received are fairly con-sidered and award is made in accordance with the basis forselection in the RFQ. After seeking price reductions (see8.405-4), establish the BPA with the schedule contractor(s)that provides the best value.

(D) The BPA must be established in accordancewith paragraphs (b)(1)(ii)(B) and (C) of this section, unlessthe requirement is waived on the basis of a justification thatis prepared and approved in accordance with 8.405-6.

(2) For services requiring a statement of work. Thisapplies when establishing a BPA that requires services pricedat hourly rates, as provided by the schedule contract. Theapplicable services will be identified in the Federal SupplySchedule publications and the contractor’s pricelists.

(i) Statements of Work (SOWs). The ordering activityshall develop a statement of work. All Statements of Workshall include a description of work to be performed; locationof work; period of performance; deliverable schedule; appli-cable performance standards; and any special requirements(e.g., security clearances, travel, and special knowledge). Tothe maximum extent practicable, agency requirements shallbe performance-based statements (see subpart 37.6).

(ii) Type-of-order preference. The ordering activityshall specify the order type (i.e., firm-fixed price, labor-hour)for the services identified in the statement of work. The con-tracting officer should establish firm-fixed prices, as appro-priate.

(iii) Request for Quotation procedures. The orderingactivity must provide a RFQ, which includes the statement ofwork and evaluation criteria (e.g., experience and past perfor-mance), to schedule contractors that offer services that willmeet the agency’s needs. The RFQ may be posted to GSA’selectronic RFQ system, e-Buy (see 8.402(d)).

(iv) If the estimated value of the BPA does not exceedthe simplified acquisition threshold. The ordering activityshall provide the RFQ (including the statement of work andevaluation criteria) to at least three schedule contractors thatoffer services that will meet the agency’s needs.

(v) If estimated value of the BPA exceeds the simpli-fied acquisition threshold. The ordering activity contractingofficer—

(A) Shall post the RFQ on e-Buy to afford allschedule contractors offering the required supplies or servicesunder the appropriate multiple-award schedule an opportunityto submit a quote; or

(B) Shall provide the RFQ, which includes thestatement of work and evaluation criteria, to as many schedulecontractors as practicable, consistent with market researchappropriate to the circumstances, to reasonably ensure thatquotes will be received from at least three contractors that canfulfill the requirements. When fewer than three quotes arereceived from schedule contractors that can fulfill the require-ments, the contracting officer shall document the file. Thecontracting officer shall prepare a written determinationexplaining that no additional contractors capable of fulfillingthe requirements could be identified despite reasonable effortsto do so. The determination must clearly explain efforts madeto obtain quotes from at least three schedule contractors.

(vi) The ordering activity contracting officer shallensure all quotes received are fairly considered and award ismade in accordance with the basis for selection in the RFQ.The ordering activity is responsible for considering the levelof effort and the mix of labor proposed to perform, and fordetermining that the proposed price is reasonable.

(vii) The BPA must be established in accordancewith paragraph (b)(2)(iv) or (v), and with paragraph (b)(2)(vi)of this section, unless the requirement is waived on the basis

FAC 2005–50 MAY 16, 2011

SUBPART 8.4—FEDERAL SUPPLY SCHEDULES 8.405-5

8.4-7

of a justification that is prepared and approved in accordancewith 8.405-6.

(viii) The ordering activity contracting officer shallestablish the BPA with the schedule contractor(s) that repre-sents the best value (see 8.404(d) and 8.405-4).

(3) After award, ordering activities should providetimely notification to unsuccessful offerors. If an unsuccessfulofferor requests information on an award that was based onfactors other than price alone, a brief explanation of the basisfor 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 theprocedures for such BPAs.

(1) Single-award BPA. If the ordering activity estab-lishes a single-award BPA, authorized users may place theorder directly under the established BPA when the need for thesupply or service arises.

(2) Multiple-award BPAs. (i) Orders at or below themicro-purchase threshold. The ordering activity may placeorders at or below the micro-purchase threshold with any BPAholder that can meet the agency needs. The ordering activityshould attempt to distribute any such orders among the BPAholders.

(ii) Orders exceeding the micro-purchase thresholdbut no exceeding the simplified acquisition threshold.(A) The ordering activity must provide each multiple-awardBPA holder a fair opportunity to be considered for each orderexceeding the micro-purchase threshold, but not exceedingthe simplified acquisition threshold unless one of the excep-tions at 8.405-6(a)(1)(i) applies.

(B) The ordering activity need not contact each ofthe multiple-award BPA holders before placing an order ifinformation is available to ensure that each BPA holder is pro-vided a fair opportunity to be considered for each order.

(C) The ordering activity contracting officer shalldocument the circumstances when restricting consideration toless than all multiple-award BPA holders offering the requiredsupplies and services.

(iii) Orders exceeding the simplified acquisitionthreshold. (A) The ordering activity shall place an order inaccordance with paragraphs (c)(2)(iii)(A)(1), (2) and (3) ofthis paragraph, unless the requirement is waived on the basisof a justification that is prepared and approved in accordancewith 8.405-6. The ordering activity shall—

(1) Provide an RFQ to all BPA holders offeringthe required supplies or services under the multiple-awardBPAs, to include a description of the supplies to be deliveredor the services to be performed and the basis upon which theselection will be made;

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

(3) Fairly consider all responses received andmake award in accordance with the selection procedures.

(B) The ordering activity shall document evi-dence of compliance with these procedures and the basis forthe award decision.

(3) BPAs for hourly-rate services. If the BPA is forhourly-rate services, the ordering activity shall develop astatement of work for each order covered by the BPA. Order-ing activities should place these orders on a firm-fixed pricebasis to the maximum extent practicable. All orders under theBPA shall specify a price for the performance of the tasksidentified in the statement of work.

(d) Duration of BPAs. (1) Multiple-award BPAs generallyshould not exceed five years in length, but may do so to meetprogram requirements.

(2) A single-award BPA shall not exceed one year. Itmay have up to four one-year options. See paragraph (e) ofthis section for requirements associated with option exercise.

(3) Contractors may be awarded BPAs that extendbeyond the current term of their GSA Schedule contract, solong as there are option periods in their GSA Schedule con-tract that, if exercised, will cover the BPA’s period of perfor-mance.

(e) Review of BPAs. (1) The ordering activity contractingofficer shall review the BPA and determine in writing, at leastonce a year (e.g., at option exercise), whether—

(i) The schedule contract, upon which the BPA wasestablished, is still in effect;

(ii) The BPA still represents the best value (see8.404(d)); and

(iii) Estimated quantities/amounts have beenexceeded and additional price reductions can be obtained.

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

(3) If a single-award BPA is established, the orderingactivity contracting officer’s annual determination must beapproved by the ordering activity’s competition advocateprior to the exercise of an option to extend the term of theBPA.

8.405-4 Price reductions.Ordering activities may request a price reduction at any

time before placing an order, establishing a BPA, or in con-junction with the annual BPA review. However, the orderingactivity shall seek a price reduction when the order or BPAexceeds the simplified acquisition threshold. Schedule con-tractors are not required to pass on to all schedule users a pricereduction extended only to an individual ordering activity fora specific order or BPA.

8.405-5 Small business.(a) Although the mandatory preference programs of

Part 19 do not apply, orders placed against schedule contracts

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8.405-6 FEDERAL ACQUISITION REGULATION

8.4-8

may be credited toward the ordering activity’s small businessgoals. For purposes of reporting an order placed with a smallbusiness schedule contractor, an ordering agency may onlytake credit if the awardee meets a size standard that corre-sponds to the work performed. Ordering activities should relyon the small business representations made by schedule con-tractors at the contract level.

(b) Ordering activities may consider socio-economic statuswhen identifying contractor(s) for consideration or competi-tion for award of an order or BPA. At a minimum, orderingactivities should consider, if available, at least one small busi-ness, veteran-owned small business, service disabled veteran-owned small business, HUBZone small business, women-owned small business, or small disadvantaged businessschedule contractor(s). GSA Advantage! and Schedules e-Library at http://www.gsa.gov/fss contain information on thesmall business representations of Schedule contractors.

(c) For orders exceeding the micro-purchase threshold,ordering activities should give preference to the items of smallbusiness concerns when two or more items at the same deliv-ered price will satisfy the requirement.

8.405-6 Limited sources.Orders placed or BPAs established under Federal Supply

Schedules are exempt from the requirements in part 6. How-ever, an ordering activity must justify its action when restrict-ing consideration in accordance with paragraphs (a) or (b) ofthis section—

(a) Orders or BPAs exceeding the micro-purchase thresh-old based on a limited sources justification. (1) Circum-stances justifying limiting the source. (i) For a proposedorder or BPA with an estimated value exceeding the micro-purchase threshold not placed or established in accordancewith the procedures in 8.405-1, 8.405-2, or 8.405-3, the onlycircumstances that may justify the action are—

(A) An urgent and compelling need exists, andfollowing the procedures would result in unacceptable delays;

(B) Only one source is capable of providing thesupplies or services required at the level of quality requiredbecause the supplies or services are unique or highly special-ized; or

(C) In the interest of economy and efficiency, thenew work is a logical follow-on to an original Federal SupplySchedule order provided that the original order was placed inaccordance with the applicable Federal Supply Scheduleordering procedures. The original order or BPA must not havebeen previously issued under sole-source or limited-sourcesprocedures.

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

(2) Posting. (i) Within 14 days after placing an order orestablishing a BPA exceeding the simplified acquisition

threshold that is supported by a limited-sources justificationpermitted 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 www.fedbizopps.gov;(2) On the Web site of the ordering activity

agency, which may provide access to the justification by link-ing 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 beposted within 30 days after award.

(iii) Contracting officers shall carefully screen alljustifications for contractor proprietary data and remove allsuch data, and such references and citations as are necessaryto protect the proprietary data, before making the justifica-tions available for public inspection. Contracting officersshall also be guided by the exemptions to disclosure of infor-mation contained in the Freedom of Information Act (5 U.S.C.552) and the prohibitions against disclosure in 24.202 indetermining whether other data should be removed. Althoughthe submitter notice process set out in Executive Order 12600“Predisclosure Notification Procedures for ConfidentialCommercial Information” does not apply, if the justificationappears to contain proprietary data, the contracting officershould provide the contractor that submitted the informationan opportunity to review the justification for proprietary databefore making the justification available for public inspec-tion, redacted as necessary. This process must not prevent ordelay the posting of the justification in accordance with thetimeframes required in paragraphs (a)(2)(i) and (ii) of this sec-tion.

(iv) This posting requirement does not apply whendisclosure would compromise the national security (e.g.,would result in disclosure of classified information) or createother security risks.

(b) Items peculiar to one manufacturer. An item peculiar toone manufacturer can be a particular brand name, product, ora feature of a product, peculiar to one manufacturer). A brandname item, whether available on one or more schedule con-tracts, is an item peculiar to one manufacturer.

(1) Brand name specifications shall not be used unlessthe particular brand name, product, or feature is essential tothe Government’s requirements, and market research indi-cates other companies’ similar products, or products lackingthe particular feature, do not meet, or cannot be modified tomeet, the agency’s needs.

(2) Documentation. (i) For proposed orders or BPAswith an estimated value exceeding the micro-purchase thresh-old, but not exceeding the simplified acquisition threshold, theordering activity contracting officer shall document the basis

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8.4-9

for restricting consideration to an item peculiar to one manu-facturer.

(ii) For proposed orders or BPAs with an estimatedvalue exceeding the simplified acquisition threshold see para-graph (c) of this section.

(3) Posting. (i) The ordering activity shall post the fol-lowing information along with the Request for Quotation(RFQ) to e-Buy (http://www.ebuy.gsa.gov):

(A) For proposed orders or BPAs with an esti-mated value exceeding $25,000, but not exceeding the simpli-fied acquisition threshold, the documentation required byparagraph (b)(2)(i) of this section.

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

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

(A) Disclosure would compromise the nationalsecurity (e.g., would result in disclosure of classified informa-tion) or create other security risks. The fact that access to clas-sified matter may be necessary to submit a proposal orperform the contract does not, in itself, justify use of thisexception;

(B) The nature of the file (e.g., size, format) doesnot make it cost-effective or practicable for contracting offic-ers to provide access through e-Buy; or

(C) The agency’s senior procurement executivemakes a written determination that access through e-Buy isnot in the Government’s interest.

(c) An order or BPA with an estimated value exceeding thesimplified acquisition threshold. (1) For a proposed order orBPA exceeding the simplified acquisition threshold, therequiring activity shall assist the ordering activity contractingofficer in the preparation of the justification. The justificationshall cite that the acquisition is conducted under the authorityof the Multiple-Award Schedule Program (see 8.401).

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

(i) Identification of the agency and the contractingactivity, and specific identification of the document as a “Lim-ited-Sources Justification.”

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

(iii) A description of the supplies or services requiredto meet the agency’s needs (including the estimated value).

(iv) The authority and supporting rationale (see8.405-6(a)(1)(i) and (b)(1)) and, if applicable, a demonstra-tion of the proposed contractor’s unique qualifications to pro-vide the required supply or service.

(v) A determination by the ordering activity con-tracting officer that the order represents the best value consis-tent with 8.404(d).

(vi) A description of the market research conductedamong schedule holders and the results or a statement of thereason market research was not conducted.

(vii) Any other facts supporting the justification.(viii) (viii) A statement of the actions, if any, the

agency may take to remove or overcome any barriers that ledto the restricted consideration before any subsequent acquisi-tion for the supplies or services is made.

(ix) The ordering activity contracting officer’s certi-fication that the justification is accurate and complete to thebest of the contracting officer’s knowledge and belief.

(x) Evidence that any supporting data that is theresponsibility of technical or requirements personnel (e.g.,verifying the Government’s minimum needs or requirementsor other rationale for limited sources) and which form a basisfor the justification have been certified as complete and accu-rate by the technical or requirements personnel.

(xi) For justifications under 8.405-6(a)(1), a writtendetermination by the approving official identifying the cir-cumstance that applies.

(d) Justification approvals. (1) For a proposed order orBPA with an estimated value exceeding the simplified acqui-sition threshold, but not exceeding $650,000, the orderingactivity contracting officer’s certification that the justificationis accurate and complete to the best of the ordering activitycontracting officer’s knowledge and belief will serve asapproval, unless a higher approval level is established inaccordance with agency procedures.

(2) For a proposed order or BPA with an estimated valueexceeding $650,000, but not exceeding $12.5 million, the jus-tification must be approved by the competition advocate of theactivity placing the order, or by an official named in paragraph(d)(3) or (d)(4) of this section. This authority is not delegable.

(3) For a proposed order or BPA with an estimated valueexceeding $12.5 million, but not exceeding $62.5 million (or,for DoD, NASA, and the Coast Guard, not exceeding $85.5million), the justification must be approved by—

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

(ii) A designee who—(A) If a member of the armed forces, is a general

or flag officer;(B) If a civilian, is serving in a position in a grade

above GS-15 under the General Schedule (or in a comparableor higher position under another schedule); or

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

(4) For a proposed order or BPA with an estimated valueexceeding $62.5 million (or, for DoD, NASA, and the CoastGuard, over $85.5 million), the justification must be approvedby the senior procurement executive of the agency placing theorder. This authority is not delegable, except in the case of theUnder Secretary of Defense for Acquisition, Technology, and

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8.4-10

Logistics, acting as the senior procurement executive for theDepartment of Defense.

8.405-7 Payment.Agencies may make payments for oral or written orders by

any authorized means, including the Governmentwide com-mercial 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 commu-nications format to order supplies or services from schedulecontracts.

(c) The ordering activity shall place an order directly withthe contractor in accordance with the terms and conditions ofthe pricelists (see 8.402(b)). Prior to placement of the order,the ordering activity shall ensure that the regulatory and stat-utory requirements of the requiring agency have been applied.

(d) Orders shall include the following information in addi-tion 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) A statement of work for services, when required, or

a brief, complete description of each item (when ordering bymodel number, features and options such as color, finish, andelectrical characteristics, if available, must be specified).

(9) Quantity and any variation in quantity.(10) Number of units.(11) Unit price.(12) Total price of order.(13) Points of inspection and acceptance.(14) Other pertinent data; e.g., delivery instructions or

receiving hours and size-of-truck limitation.(15) Marking requirements.(16) Level of preservation, packaging, and packing.

8.406-2 Inspection and acceptance.(a) Supplies. (1) Consignees shall inspect supplies at des-

tination except when—

(i) The schedule contract indicates that mandatorysource inspection is required by the schedule contractingagency; or

(ii) A schedule item is covered by a product descrip-tion, and the ordering activity determines that the schedulecontracting agency’s inspection assistance is needed (basedon the ordering volume, the complexity of the supplies, or thepast performance of the supplier).

(2) When the schedule contracting agency performs theinspection, the ordering activity will provide two copies of theorder specifying source inspection to the schedule contractingagency. The schedule contracting agency will notify the order-ing activity of acceptance or rejection of the supplies.

(3) Material inspected at source by the schedule con-tracting agency, and determined to conform with the productdescription of the schedule, shall not be reinspected for thesame 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 inspectall services in accordance with the contract requirements andas called for by the order. The ordering activity shall performinspections and tests as specified in the order’s quality assur-ance surveillance plan in a manner that will not unduly delaythe 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 activityshall take appropriate action in accordance with the inspectionand acceptance clause of the contract, as supplemented by theorder.

(b) If the contractor fails to perform an order, or take appro-priate corrective action, the ordering activity may terminatethe order for cause or modify the order to establish a newdelivery date (after obtaining consideration, as appropriate).Ordering activities shall follow the procedures at 8.406-4when terminating an order for cause.

8.406-4 Termination for cause.(a)(1) An ordering activity contracting officer may termi-

nate individual orders for cause. Termination for cause shallcomply with FAR 12.403, and may include charging the con-tractor with excess costs resulting from repurchase.

(2) The schedule contracting office shall be notified ofall instances where an ordering activity contracting officer hasterminated for cause an individual order to a Federal SupplySchedule contractor, or if fraud is suspected.

(b) If the contractor asserts that the failure was excusable,the ordering activity contracting officer shall follow the pro-cedures at 8.406-6, as appropriate.

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8.4-11

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

(1) Any repurchase shall be made at as low a price asreasonable, considering the quality required by the Govern-ment, delivery requirement, and administrative expenses.Copies of all repurchase orders, except the copy furnished tothe contractor or any other commercial concern, shall includethe notation:

Repurchase against the account of __________ [insertcontractor's name] under Order __________ [insert number]under Contract __________ [insert number].

(2) When excess costs are anticipated, the orderingactivity may withhold funds due the contractor as offset secu-rity. Ordering activities shall minimize excess costs to becharged against the contractor and collect or set-off any excesscosts owed.

(3) If an ordering activity is unable to collect excessrepurchase costs, it shall notify the schedule contracting officeafter final payment to the contractor.

(i) The notice shall include the following informa-tion about the terminated order:

(A) Name and address of the contractor.(B) Schedule, contract, and order number.(C) National stock or special 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 infor-mation 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 thecontract to terminate for cause any, or all, supplies or servicescovered by the schedule contract. If the schedule contractingofficer has terminated any supplies or services covered by theschedule contract, no further orders may be placed for thoseitems. Orders placed prior to termination for cause shall befulfilled by the contractor, unless terminated for the conve-nience of the Government by the ordering activity contractingofficer.

(e) Reporting. An ordering activity contracting officer, inaccordance with agency procedures, shall ensure that infor-mation related to termination for cause notices and anyamendments are reported. In the event the termination forcause is subsequently converted to a termination for conve-

nience, or is otherwise withdrawn, the contracting officershall ensure that a notice of the conversion or withdrawal isreported. All reporting shall be in accordance with 42.1503(f).

8.406-5 Termination for the Government’s convenience.(a) An ordering activity contracting officer may terminate

individual orders for the Government’s convenience. Termi-nations for the Government’s convenience shall comply withFAR 12.403.

(b) Before terminating orders for the Government’s conve-nience, the ordering activity contracting officer shall endeavorto enter into a “no cost” settlement agreement with thecontractor.

(c) Only the schedule contracting officer may modify theschedule contract to terminate any, or all, supplies or servicescovered by the schedule contract for the Government’sconvenience.

8.406-6 Disputes.(a) Disputes pertaining to the performance of orders under

a schedule contract.(1) Under the Disputes clause of theschedule contract, the ordering activity contracting officermay—

(i) Issue final decisions on disputes arising from per-formance of the order (but see paragraph (b) of this section);or

(ii) Refer the dispute to the schedule contractingofficer.

(2) The ordering activity contracting officer shall notifythe schedule contracting officer promptly of any finaldecision.

(b) Disputes pertaining to the terms and conditions ofschedule contracts. The ordering activity contracting officershall refer all disputes that relate to the contract terms and con-ditions to the schedule contracting officer for resolution underthe Disputes clause of the contract and notify the schedulecontractor of the referral.

(c) Appeals. Contractors may appeal final decisions toeither the Board of Contract Appeals servicing the agency thatissued the final decision or the U.S. Court of Federal Claims.

(d) Alternative dispute resolution. The contracting officershould use the alternative dispute resolution (ADR) proce-dures, to the maximum extent practicable (see 33.204 and33.214).

8.406-7 Contractor Performance Evaluation.Ordering activities must prepare an evaluation of contrac-

tor performance for each order that exceeds the simplifiedacquisition threshold in accordance with 42.1502(c).

(FAC 2005–50)

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orders in those areas will be awarded on a sole-source basis;however, each awardee need not be capable of performingevery requirement as well as any other awardee under the con-tracts. The contracting officer should consider the followingwhen determining the number of contracts to be awarded:

(1) The scope and complexity of the contractrequirement.

(2) The expected duration and frequency oftask or delivery orders.

(3) The mix of resources a contractor musthave to perform expected task or delivery order requirements.

(4) The ability to maintain competition amongthe awardees throughout the contracts’ period ofperformance.

(B) The contracting officer must not use the mul-tiple award approach if—

(1) Only one contractor is capable of providingperformance at the level of quality required because the sup-plies or services are unique or highly specialized;

(2) Based on the contracting officer’s knowl-edge of the market, more favorable terms and conditions,including pricing, will be provided if a single award is made;

(3) The expected cost of administration ofmultiple contracts outweighs the expected benefits of makingmultiple awards;

(4) The projected task orders are so integrallyrelated that only a single contractor can reasonably performthe work;

(5) The total estimated value of the contract isless than the simplified acquisition threshold; or

(6) Multiple awards would not be in the bestinterests of the Government.

(C) The contracting officer must document thedecision whether or not to use multiple awards in the acquisi-tion plan or contract file. The contracting officer may deter-mine that a class of acquisitions is not appropriate for multipleawards (see Subpart 1.7).

(D) (1) No task or delivery order contract in anamount estimated to exceed $103 million (including alloptions) may be awarded to a single source unless the head ofthe agency determines in writing that—

(i) The task or delivery orders expectedunder the contract are so integrally related that only a singlesource can reasonably perform the work;

(ii) The contract provides only for firm-fixed price (see 16.202) task or delivery orders for—

(A) Products for which unit prices areestablished in the contract; or

(B) Services for which prices are estab-lished in the contract for the specific tasks to be performed;

(iii) Only one source is qualified and capa-ble of performing the work at a reasonable price to the Gov-ernment; or

(iv) It is necessary in the public interest toaward the contract to a single source due to exceptional cir-cumstances.

(2) The head of the agency must notify Con-gress within 30 days after any determination under paragraph(c)(1)(ii)(D)(1)(iv) of this section.

(3) The requirement for a determination for asingle-award contract greater than $103 million:

(i) Is in addition to any applicable require-ments of Subpart 6.3.

(ii) Is not applicable for architect-engineerservices awarded pursuant to Subpart 36.6.

(2) Contracts for advisory and assistance services.(i) Except as provided in paragraph (c)(2)(ii) of this section,if an indefinite-quantity contract for advisory and assistanceservices exceeds 3 years and $12.5 million, including alloptions, the contracting officer must make multiple awardsunless—

(A) The contracting officer or other official des-ignated by the head of the agency determines in writing, aspart of acquisition planning, that multiple awards are not prac-ticable. The contracting officer or other official must deter-mine that only one contractor can reasonably perform thework because either the scope of work is unique or highly spe-cialized or the tasks so integrally related;

(B) The contracting officer or other official des-ignated by the head of the agency determines in writing, afterthe evaluation of offers, that only one offeror is capable of pro-viding the services required at the level of quality required; or

(C) Only one offer is received.(ii) The requirements of paragraph (c)(2)(i) of this

section do not apply if the contracting officer or other officialdesignated by the head of the agency determines that the advi-sory and assistance services are incidental and not a signifi-cant component of the contract.

16.505 Ordering.(a) General. (1) In general, the contracting officer does not

synopsize orders under indefinite-delivery contracts; exceptsee 16.505(a)(10) and 16.505(b)(2)(ii)(D).

(2) Individual orders shall clearly describe all servicesto be performed or supplies to be delivered so the full cost orprice for the performance of the work can be established whenthe order is placed. Orders shall be within the scope, issuedwithin the period of performance, and be within the maximumvalue of the contract.

(3) Performance-based acquisition methods must beused to the maximum extent practicable, if the contract ororder is for services (see 37.102(a) and Subpart 37.6).

(4) When acquiring information technology and relatedservices, consider the use of modular contracting to reduceprogram risk (see 39.103(a)).

(5) Orders may be placed by using any medium speci-fied in the contract.

(6) Orders placed under indefinite-delivery contractsmust contain the following information:

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(i) Date of order.(ii) Contract number and order number.(iii) For supplies and services, contract item number

and description, quantity, and unit price or estimated cost orfee.

(iv) Delivery or performance schedule.(v) Place of delivery or performance (including

consignee).(vi) Any packaging, packing, and shipping

instructions.(vii) Accounting and appropriation data.(viii) Method of payment and payment office, if not

specified in the contract (see 32.1110(e)).(7) Orders placed under a task-order contract or deliv-

ery-order contract awarded by another agency (i.e., a Govern-mentwide acquisition contract, or multi-agency contract)—

(i) Are not exempt from the development of acquisi-tion plans (see Subpart 7.1), and an information technologyacquisition strategy (see Part 39);

(ii) May not be used to circumvent conditions andlimitations imposed on the use of funds(e.g., 31 U.S.C. 1501(a)(1)); and

(iii) Must comply with all FAR requirements for abundled contract when the order meets the definition of “bun-dled contract” (see 2.101(b)).

(8) In accordance with section 1427(b) of Public Law108-136, orders placed under multi-agency contracts for ser-vices that substantially or to a dominant extent specify perfor-mance of architect-engineer services, as defined in 2.101,shall—

(i) Be awarded using the procedures at Subpart 36.6;and

(ii) Require the direct supervision of a professionalarchitect or engineer licensed, registered or certified in theState, Federal District, or outlying area, in which the servicesare to be performed.

(9) (i) No protest under Subpart 33.1 is authorized inconnection with the issuance or proposed issuance of an orderunder a task-order contract or delivery-order contract, exceptfor—

(A) A protest on the grounds that the orderincreases the scope, period, or maximum value of the contract;or

(B) A protest of an order valued in excess of $10million. Protests of orders in excess of $10 million may onlybe filed with the Government Accountability Office, in accor-dance with the procedures at 33.104.

(ii) The authority to protest the placement of an orderunder this subpart expires on May 27, 2011. (10 U.S.C.2304a(d) and 2304c(d), and 41 U.S.C. 253h(d) and 253j(d)).

(10) Publicize orders funded in whole or in part by theAmerican Recovery and Reinvestment Act of 2009 (Pub. L.111-5) as follows:

(i) Notices of proposed orders shall follow the pro-cedures in 5.704 for posting orders.

(ii) Award notices for orders shall follow the proce-dures in 5.705.

(11) When using the Governmentwide commercial pur-chase card as a method of payment, orders at or below themicro-purchase threshold are exempt from verification in theCentral Contractor Registration (CCR) database as to whetherthe contractor has a delinquent debt subject to collection underthe Treasury Offset Program (TOP).

(b) Orders under multiple award contracts—(1) Fairopportunity.(i) The contracting officer must provide eachawardee a fair opportunity to be considered for each orderexceeding $3,000 issued under multiple delivery-order con-tracts or multiple task-order contracts, except as provided forin paragraph (b)(2) of this section.

(ii) The contracting officer may exercise broad dis-cretion in developing appropriate order placement proce-dures. The contracting officer should keep submissionrequirements to a minimum. Contracting officers may usestreamlined procedures, including oral presentations. If theorder does not exceed the simplified acquisition threshold, thecontracting officer need not contact each of the multipleawardees under the contract before selecting an order awardeeif the contracting officer has information available to ensurethat each awardee is provided a fair opportunity to be consid-ered for each order. The competition requirements in Part 6and the policies in Subpart 15.3 do not apply to the orderingprocess. However, the contracting officer must—

(A) Develop placement procedures that will pro-vide each awardee a fair opportunity to be considered for eachorder and that reflect the requirement and other aspects of thecontracting environment;

(B) Not use any method (such as allocation ordesignation of any preferred awardee) that would not result infair consideration being given to all awardees prior to placingeach order;

(C) Tailor the procedures to each acquisition;(D) Include the procedures in the solicitation and

the contract; and(E) Consider price or cost under each order as one

of the factors in the selection decision.(iii) Orders exceeding the simplified acquisition

threshold.(A) Each order exceeding the simplified acquisi-

tion threshold shall be placed on a competitive basis in accor-dance with paragraph (b)(1)(iii)(B) of this section, unlesssupported by a written determination that one of the circum-stances described at 16.505(b)(2)(i) applies to the order andthe requirement is waived on the basis of a justification thatis prepared in accordance with 16.505(b)(2)(ii)(B);

(B) The contracting officer shall—(1) Provide a fair notice of the intent to make

a purchase, including a clear description of the supplies to bedelivered or the services to be performed and the basis uponwhich the selection will be made to all contractors offering the

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16.5-5

required supplies or services under the multiple-award con-tract; and

(2) Afford all contractors responding to thenotice a fair opportunity to submit an offer and have that offerfairly considered.

(iv) Orders exceeding $5 million. For task or deliv-ery orders in excess of $5 million, the requirement to provideall awardees a fair opportunity to be considered for each ordershall include, at a minimum—

(A) A notice of the task or delivery order thatincludes a clear statement of the agency’s requirements;

(B) A reasonable response period; (C) Disclosure of the significant factors and sub-

factors, including cost or price, that the agency expects to con-sider in evaluating proposals, and their relative importance;

(D) Where award is made on a best value basis, awritten statement documenting the basis for award and the rel-ative importance of quality and price or cost factors; and

(E) An opportunity for a postaward debriefing inaccordance with paragraph (b)(4) of this section.

(v) The contracting officer should consider the fol-lowing when developing the procedures:

(A) (1) Past performance on earlier orders underthe contract, including quality, timeliness and cost control.

(2) Potential impact on other orders placedwith the contractor.

(3) Minimum order requirements.(4) The amount of time contractors need to

make informed business decisions on whether to respond topotential orders.

(5) Whether contractors could be encouragedto respond to potential orders by outreach efforts to promoteexchanges of information, such as—

(i) Seeking comments from two or morecontractors on draft statements of work;

(ii) Using a multiphased approach wheneffort required to respond to a potential order may be resourceintensive (e.g., requirements are complex or need continueddevelopment), where all contractors are initially consideredon price considerations (e.g., rough estimates), and other con-siderations as appropriate (e.g., proposed conceptualapproach, past performance). The contractors most likely tosubmit the highest value solutions are then selected for one-on-one sessions with the Government to increase their under-standing of the requirements, provide suggestions for refiningrequirements, and discuss risk reduction measures.

(B) Formal evaluation plans or scoring of quotesor offers are not required.

(2) Exceptions to the fair opportunity process. (i) Thecontracting officer shall give every awardee a fair opportunityto be considered for a delivery-order or task-order exceeding$3,000 unless one of the following statutory exceptionsapplies:

(A) The agency need for the supplies or servicesis so urgent that providing a fair opportunity would result inunacceptable delays.

(B) Only one awardee is capable of providing thesupplies or services required at the level of quality requiredbecause the supplies or services ordered are unique or highlyspecialized.

(C) The order must be issued on a sole-sourcebasis in the interest of economy and efficiency because it is alogical follow-on to an order already issued under the con-tract, provided that all awardees were given a fair opportunityto be considered for the original order.

(D) It is necessary to place an order to satisfy aminimum guarantee.

(E) For orders exceeding the simplified acquisi-tion threshold, a statute expressly authorizes or requires thatthe purchase be made from a specified source.

(ii) The justification for an exception to fair oppor-tunity shall be in writing as specified in paragraphs(b)(2)(ii)(A) or (B) of this section.

(A) Orders exceeding $3,000, but not exceedingthe simplified acquisition threshold. The contracting officershall document the basis for using an exception to the fairopportunity process. If the contracting officer uses the logicalfollow-on exception, the rationale shall describe why the rela-tionship between the initial order and the follow-on is logical(e.g., in terms of scope, period of performance, or value).

(B) Orders exceeding the simplified acquisitionthreshold. As a minimum, each justification shall include thefollowing information and be approved in accordance withparagraph (b)(2)(ii)(C) of this section:

(1) Identification of the agency and the con-tracting activity, and specific identification of the document asa “Justification for an Exception to Fair Opportunity.”

(2) Nature and/or description of the actionbeing approved.

(3) A description of the supplies or servicesrequired to meet the agency’s needs (including the estimatedvalue).

(4) Identification of the exception to fairopportunity (see 16.505(b)(2)) and the supporting rationale,including a demonstration that the proposed contractor’sunique qualifications or the nature of the acquisition requiresuse of the exception cited. If the contracting officer uses thelogical follow-on exception, the rationale shall describe whythe relationship between the initial order and the follow-on islogical (e.g., in terms of scope, period of performance, orvalue).

(5) A determination by the contracting officerthat the anticipated cost to the Government will be fair andreasonable.

(6) Any other facts supporting the justifica-tion.

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16.5-6

(7) A statement of the actions, if any, theagency may take to remove or overcome any barriers that ledto the exception to fair opportunity before any subsequentacquisition for the supplies or services is made.

(8) The contracting officer’s certification thatthe justification is accurate and complete to the best of thecontracting officer’s knowledge and belief.

(9) Evidence that any supporting data that isthe responsibility of technical or requirements personnel (e.g.,verifying the Government’s minimum needs or requirementsor other rationale for an exception to fair opportunity) andwhich form a basis for the justification have been certified ascomplete and accurate by the technical or requirements per-sonnel.

(10) A written determination by the approvingofficial that one of the circumstances in (b)(2)(i)(A) through(E) of this section applies to the order.

(C) Approval. (1) For proposed orders exceedingthe simplified acquisition threshold, but not exceeding$650,000, the ordering activity contracting officer’s certifica-tion that the justification is accurate and complete to the bestof the ordering activity contracting officer’s knowledge andbelief will serve as approval, unless a higher approval level isestablished in accordance with agency procedures.

(2) For a proposed order exceeding $650,000,but not exceeding $12.5 million, the justification must beapproved by the competition advocate of the activity placingthe order, or by an official named in paragraph (b)(2)(ii)(C)(3)or (4) of this section. This authority is not delegable.

(3) For a proposed order exceeding $12.5 mil-lion, but not exceeding $62.5 million (or, for DoD, NASA,and the Coast Guard, not exceeding $85.5 million), the justi-fication must be approved by—

(i) The head of the procuring activity plac-ing the order;

(ii) A designee who—(A) If a member of the armed forces, is

a general or flag officer;(B) If a civilian, is serving in a position

in a grade above GS-15 under the General Schedule (or in acomparable or higher position under another schedule); or

(iii) An official named in paragraph(b)(2)(ii)(C)(4) of this section.

(4) For a proposed order exceeding $62.5 mil-lion (or, for DoD, NASA, and the Coast Guard, over $85.5million), the justification must be approved by the senior pro-curement executive of the agency placing the order. Thisauthority is not delegable, except in the case of the Under Sec-retary of Defense for Acquisition, Technology, and Logistics,acting as the senior procurement executive for the Departmentof Defense.

(D) Posting. (1) Except as provided in paragraph(b)(2)(ii)(D)(5) of this section, within 14 days after placing an

order exceeding the simplified acquisition threshold that doesnot provide for fair opportunity in accordance with 16.505(b),the contract officer shall—

(i) Publish a notice in accordance with5.301; and

(ii) Make publicly available the justifica-tion required at (b)(2)(ii)(B) of this section.

(2) The justification shall be made publiclyavailable—

(i) At the GPE www.fedbizopps.gov;(ii) On the Web site of the agency, which

may provide access to the justifications by linking to the GPE;and

(iii) Must remain posted for a minimum of30 days.

(3) In the case of an order permitted underparagraph (b)(2)(i)(A) of this subsection, the justificationshall be posted within 30 days after award of the order.

(4) Contracting officers shall carefully screenall justifications for contractor proprietary data and remove allsuch data, and such references and citations as are necessaryto protect the proprietary data, before making the justifica-tions available for public inspection. Contracting officersshall also be guided by the exemptions to disclosure of infor-mation contained in the Freedom of Information Act (5 U.S.C.552) and the prohibitions against disclosure in 24.202 indetermining whether other data should be removed. Althoughthe submitter notice process set out in Executive Order 12600“Predisclosure Notification Procedures for ConfidentialCommercial Information” does not apply, if the justificationappears to contain proprietary data, the contracting officershould provide the contractor that submitted the informationan opportunity to review the justification for proprietary databefore making the justification available for public inspec-tion, redacted as necessary. This process must not prevent ordelay the posting of the justification in accordance with thetimeframes required in paragraphs (1) and (3).

(5) The posting requirement of this sectiondoes not apply when disclosure would compromise thenational security (e.g., would result in disclosure of classifiedinformation) or create other security risks.

(3) Pricing orders. If the contract did not establish theprice for the supply or service, the contracting officer mustestablish prices for each order using the policies and methodsin Subpart 15.4.

(4) Postaward Notices and Debriefing of Awardees forOrders Exceeding $5 million. The contracting officer shallnotify unsuccessful awardees when the total price of a task ordelivery order exceeds $5 million.

(i) The procedures at 15.503(b)(1) shall be followedwhen providing postaward notification to unsuccessfulawardees.

FAC 2005–50 MAY 16, 2011

SUBPART 16.5—INDEFINITE-DELIVERY CONTRACTS 16.506

16.5-7

(ii) The procedures at 15.506 shall be followed whenproviding postaward debriefing to unsuccessful awardees.

(iii) A summary of the debriefing shall be includedin the task or delivery order file.

(5) Decision documentation for orders. (i) The con-tracting officer shall document in the contract file the rationalefor placement and price of each order, including the basis foraward and the rationale for any tradeoffs among cost or priceand non-cost considerations in making the award decision.This documentation need not quantify the tradeoffs that led tothe decision.

(ii) The contract file shall also identify the basis forusing an exception to the fair opportunity process (see para-graph (b)(2)).

(6) Task-order and delivery-order ombudsman. Thehead of the agency shall designate a task-order and delivery-order ombudsman. The ombudsman must review complaintsfrom contractors and ensure they are afforded a fair opportu-nity to be considered, consistent with the procedures in thecontract. The ombudsman must be a senior agency officialwho is independent of the contracting officer and may be theagency’s competition advocate.

(c) Limitation on ordering period for task-order contractsfor advisory and assistance services. (1) Except as providedfor in paragraphs (c)(2) and (c)(3), the ordering period of atask-order contract for advisory and assistance services,including all options or modifications, normally may notexceed 5 years.

(2) The 5-year limitation does not apply when—(i) A longer ordering period is specifically autho-

rized by a statute; or(ii) The contract is for an acquisition of supplies or

services that includes the acquisition of advisory and assis-tance services and the contracting officer, or other official des-ignated by the head of the agency, determines that the advisoryand assistance services are incidental and not a significantcomponent of the contract.

(3) The contracting officer may extend the contract ona sole-source basis only once for a period not to exceed6 months if the contracting officer, or other official designatedby the head of the agency, determines that—

(i) The award of a follow-on contract is delayed bycircumstances that were not reasonably foreseeable at the timethe initial contract was entered into; and

(ii) The extension is necessary to ensure continuityof services, pending the award of the follow-on contract.

16.506 Solicitation provisions and contract clauses.(a) Insert the clause at 52.216-18, Ordering, in solicitations

and contracts when a definite-quantity contract, a require-

ments contract, or an indefinite-quantity contract iscontemplated.

(b) Insert a clause substantially the same as the clause at52.216-19, Order Limitations, in solicitations and contractswhen a definite-quantity contract, a requirements contract, oran indefinite-quantity contract is contemplated.

(c) Insert the clause at 52.216-20, Definite Quantity, insolicitations and contracts when a definite-quantity contract iscontemplated.

(d)(1) Insert the clause at 52.216-21, Requirements, insolicitations and contracts when a requirements contract iscontemplated.

(2) If the contract is for nonpersonal services and relatedsupplies and covers estimated requirements that exceed a spe-cific Government activity’s internal capability to produce orperform, use the clause with its Alternate I.

(3) If the contract includes subsistence for both Govern-ment use and resale in the same Schedule, and similar prod-ucts may be acquired on a brand-name basis, use the clausewith its Alternate II (but see paragraph (d)(5) of this section).

(4) If the contract involves a partial small business set-aside, use the clause with its Alternate III (but seeparagraph (d)(5) of this section).

(5) If the contract—(i) Includes subsistence for Government use and

resale in the same schedule and similar products may beacquired on a brand-name basis; and

(ii) Involves a partial small business set-aside, usethe clause with its Alternate IV.

(e) Insert the clause at 52.216-22, Indefinite Quantity, insolicitations and contracts when an indefinite-quantity con-tract is contemplated.

(f) Insert the provision at 52.216-27, Single or MultipleAwards, in solicitations for indefinite-quantity contracts thatmay result in multiple contract awards. Modify the provisionto specify the estimated number of awards. Do not use thisprovision for advisory and assistance services contracts thatexceed 3 years and $12.5 million (including all options).

(g) Insert the provision at 52.216-28, Multiple Awards forAdvisory and Assistance Services, in solicitations for task-order contracts for advisory and assistance services thatexceed 3 years and $12.5 million (including all options),unless a determination has been made under16.504(c)(2)(i)(A). Modify the provision to specify the esti-mated number of awards.

(h) See 10.001(d) for insertion of the clause at 52.210-1,Market Research, when the contract is over $5 million for theprocurement of items other than commercial items.

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SUBPART 18.1—AVAILABLE ACQUISITION FLEXIBILITIES 18.111

18.1-1

18.000 Scope of part.(a) This part identifies acquisition flexibilities that are

available for emergency acquisitions. These flexibilities arespecific techniques or procedures that may be used to stream-line the standard acquisition process. This part includes—

(1) Generally available flexibilities; and(2) Emergency acquisition flexibilities that are avail-

able only under prescribed circumstances.(b) The acquisition flexibilities in this part are not exempt

from the requirements and limitations set forth in FAR Part 3,Improper Business Practices and Personal Conflicts of Inter-est.

(c) Additional flexibilities may be authorized in an execu-tive agency supplement to the FAR.

18.001 Definition.“Emergency acquisition flexibilities”, as used in this part,

means flexibilities provided with respect to any acquisition ofsupplies or services by or for an executive agency that, asdetermined by the head of an executive agency, may beused—

(a) In support of a contingency operation as defined in2.101;

(b) To facilitate the defense against or recovery fromnuclear, biological, chemical, or radiological attack againstthe United States; or

(c) When the President issues an emergency declaration, ora major disaster declaration.

Subpart 18.1—Available Acquisition Flexibilities

18.101 General.The FAR includes many acquisition flexibilities that are

available to the contracting officer when certain conditionsare met. These acquisition flexibilities do not require an emer-gency declaration or designation of contingency operation.

18.102 Central contractor registration.Contractors are not required to be registered in the Central

Contractor Registration (CCR) for contracts awarded to sup-port unusual and compelling needs or emergency acquisitions.(See 4.1102). However, contractors are required to registerwith CCR in order to gain access to the Disaster ResponseRegistry. Contracting officers shall consult the DisasterResponse Registry at www.ccr.gov to determine the availabil-ity of contractors for debris removal, distribution of supplies,reconstruction, and other disaster or emergency relief activi-ties inside the United States and outlying areas. (See 26.205).

18.103 Synopses of proposed contract actions.Contracting officers need not submit a synopsis notice

when there is an unusual and compelling urgency and the

Government would be seriously injured if the agency com-plied with the notice time periods. (See 5.202(a)(2).)

18.104 Unusual and compelling urgency.Agencies may limit the number of sources and full and

open competition need not be provided for contracting actionsinvolving urgent requirements. (See 6.302-2.)

18.105 Federal Supply Schedules (FSSs), multi-agency blanket purchase agreements (BPAs), and multi-agency indefinite delivery contracts.Streamlined procedures and a broad range of goods and

services may be available under Federal Supply Schedulecontracts (see Subpart 8.4), multi-agency BPAs (see8.405-3(a)(6)), or multi-agency, indefinite-delivery contracts(see 16.505(a)(7)). These contracting methods may offeragency advance planning, pre-negotiated line items, and spe-cial terms and conditions that permit rapid response.

18.106 Acquisitions from Federal Prison Industries, Inc. (FPI).Purchase from FPI is not mandatory and a waiver is not

required if public exigency requires immediate delivery orperformance (see 8.605(b)).

18.107 AbilityOne specification changes.Contracting officers are not held to the notification

required when changes in AbilityOne specifications ordescriptions are required to meet emergency needs. (See8.712(d).)

18.108 Qualifications requirements.Agencies may determine not to enforce qualification

requirements when an emergency exists. (See 9.206-1.)

18.109 Priorities and allocations.The Defense Priorities and Allocations System (DPAS)

supports approved national defense, emergency preparedness,and energy programs and was established to facilitate rapidindustrial mobilization in case of a national emergency. (SeeSubpart 11.6.)

18.110 Soliciting from a single source.For purchases not exceeding the simplified acquisition

threshold, contracting officers may solicit from one sourceunder certain circumstances. (See 13.106-1(b).)

18.111 Oral requests for proposals.Oral requests for proposals are authorized under certain

conditions. (See 15.203(f).)

FAC 2005–50 MAY 16, 2011

18.112 FEDERAL ACQUISITION REGULATION

18.1-2

18.112 Letter contracts.Letter contracts may be used when contract performance

must begin immediately. (See 16.603.)

18.113 Interagency acquisitions.Interagency acquisitions are authorized under certain con-

ditions. (See Subpart 17.5.)

18.114 Contracting with the Small Business Administration (The 8(a) Program).Contracts may be awarded to the Small Business Admin-

istration (SBA) for performance by eligible 8(a) firms oneither a sole source or competitive basis. (See Subpart 19.8.)

18.115 HUBZone sole source awards.Contracts may be awarded to Historically Underutilized

Business Zone (HUBZone) small business concerns on a solesource basis. (See 19.1306.)

18.116 Service-disabled Veteran-owned Small Business (SDVOSB) sole source awards.Contracts may be awarded to Service-disabled Veteran-

owned Small Business (SDVOSB) concerns on a sole sourcebasis. (See 19.1406.)

18.117 Awards to economically disadvantaged women-owned small business (EDWOSB) concerns and women-owned small business (WOSB) concerns eligible under the WOSB Program.Contracts may be awarded to EDWOSB concerns and

WOSB concerns on a competitive basis. (See subpart 19.15.)

18.118 Overtime approvals.Overtime approvals may be retroactive if justified by

emergency circumstances. (See 22.103-4(i).)

18.119 Trade agreements.The policies and procedures of FAR 25.4 may not apply to

acquisitions not awarded under full and open competition (see25.401(a)(5)).

18.120 Use of patented technology under the North American Free Trade Agreement.Requirement to obtain authorization prior to use of pat-

ented technology may be waived in circumstances of extremeurgency or national emergency. (See 27.204-1.)

18.121 Bid guarantees.The chief of the contracting office may waive the require-

ment to obtain a bid guarantee for emergency acquisitionswhen a performance bond or a performance bond and pay-ment bond is required. (See 28.101-1(c).)

18.122 Advance payments.Agencies may authorize advance payments to facilitate the

national defense for actions taken under Public Law 85-804(see Subpart 50.1, Extraordinary Contractual Actions). Theseadvance payments may be made at or after award of sealed bidcontracts, as well as negotiated contracts. (See 32.405.)

18.123 Assignment of claims.The use of the no-setoff provision may be appropriate to

facilitate the national defense in the event of a national emer-gency or natural disaster. (See 32.803(d).)

18.124 Electronic funds transfer.Electronic funds transfer payments may be waived for

acquisitions to support unusual and compelling needs oremergency acquisitions. (See 32.1103(e).)

18.125 Protest to GAO.When urgent and compelling circumstances exist, agency

protest override procedures allow the head of the contractingactivity to determine that the contracting process may con-tinue after GAO has received a protest. (See 33.104(b) and(c).)

18.126 Contractor rent-free use of Government property.Rental requirements do not apply to items of Government

production and research property that are part of a general pro-gram approved by the Federal Emergency ManagementAgency and meet certain criteria. (See 45.301.)

18.127 Extraordinary contractual actions.Subpart 50.1 prescribes policies and procedures for enter-

ing into, amending, or modifying contracts in order to facili-tate the national defense under the extraordinary emergencyauthority granted by Public Law 85-804 (50 U.S.C. 1431-1434). This includes—

(a) Amending contracts without consideration (see50.103-2(a));

(b) Correcting or mitigating mistakes in a contract (see50.103-2(b)); and

(c) Formalizing informal commitments (See 50.103-2(c)).

FAC 2005–51 APRIL 1, 2011

SUBPART 38.1—FEDERAL SUPPLY SCHEDULE PROGRAM 38.101

38.1-1

38.000 Scope of part.This part prescribes policies and procedures for contract-

ing for supplies and services under the Federal Supply Sched-ule program, which is directed and managed by the GeneralServices Administration (see Subpart 8.4, Federal SupplySchedules, for additional information). GSA may delegatecertain responsibilities to other agencies (e.g., GSA has dele-gated authority to the Department of Veterans Affairs (VA) toprocure medical supplies under the VA Federal Supply Sched-ules Program). The VA Federal Supply Schedules Program iscovered by this subpart. Additionally, the Department ofDefense manages a similar system of schedule contracting formilitary items; however, the Department of Defense systemsare not a part of the Federal Supply Schedule program.

Subpart 38.1—Federal Supply Schedule Program

38.101 General.(a) The Federal Supply Schedule program, pursuant to

41 U.S.C. 259(b)(3)(A), provides Federal agencies with asimplified process of acquiring commercial supplies and ser-vices in varying quantities while obtaining volume discounts.Indefinite-delivery contracts are awarded using competitiveprocedures to firms. The firms provide supplies and services

at stated prices for given periods of time, for delivery withina stated geographic area such as the 48 contiguous states, theDistrict of Columbia, Alaska, Hawaii, and overseas. Theschedule contracting office issues Federal Supply Schedulepublications that contain a general overview of the FederalSupply Schedule (FSS) program and address pertinent topics.

(b) Each schedule identifies agencies that are required touse the contracts as primary sources of supply.

(c) Federal agencies not identified in the schedules as man-datory users may issue orders under the schedules. Contrac-tors are encouraged to accept the orders.

(d) Although GSA awards most Federal Supply Schedulecontracts, it may authorize other agencies to award schedulecontracts and publish schedules. For example, the Departmentof Veterans Affairs awards schedule contracts for certain med-ical and nonperishable subsistence items.

(e) When establishing Federal Supply Schedules, GSA, oran agency delegated that authority, is responsible for comply-ing with all applicable statutory and regulatory requirements(e.g., Parts 5, 6, and 19). The requirements of parts 5, 6, and19 apply at the acquisition planning stage prior to issuing theschedule solicitation and, generally, do not apply to orders andBPAs placed under resulting schedule contracts (except see8.404).

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