FAR 17.5—Subpart 17.5

Scope of subpart.

FAR 17.500 defines the scope of Subpart 17.5, which governs interagency acquisitions. It explains when the subpart’s policies and procedures apply, including situations where one agency buys supplies or services using another agency’s contract and situations where one agency provides acquisition assistance by awarding or administering a contract, task order, or delivery order for another agency. It also identifies important exclusions, including interagency reimbursable work performed by Federal employees when the work is not acquisition assistance, interagency activities where contracting is only incidental to the transaction, and orders of $750,000 or less placed against Federal Supply Schedules. The section further notes a special overlay for nondefense agencies acquiring supplies and services on behalf of the Department of Defense, which must also comply with FAR Subpart 17.7. In practice, this section tells agencies and contractors when interagency acquisition rules are triggered, when they are not, and when additional DoD-specific requirements apply, helping prevent misuse of another agency’s contracting vehicle and ensuring the right oversight, authority, and procedures are used.

General.

FAR 17.501 gives the basic policy framework for interagency acquisitions. It explains that these acquisitions are commonly carried out through indefinite-delivery vehicles, especially Federal Supply Schedules (FSS), Governmentwide acquisition contracts (GWACs), and multi-agency contracts (MACs), and it warns agencies not to use interagency arrangements to evade statutory or regulatory funding limits. The section also makes clear that using another agency’s contract vehicle does not remove the need to comply with FAR subpart 7.3 on contractor versus government performance, so agencies still must consider whether work should be performed by federal employees or contractors. Finally, it prohibits using interagency acquisitions in ways that conflict with another agency’s legal authorities or responsibilities, such as the General Services Administration’s authorities under title 40 and procurement-related provisions of title 41. In practice, this section is about ensuring interagency buying is used as a legitimate acquisition tool, not as a workaround for fiscal, sourcing, or jurisdictional rules.

Procedures.

Ordering procedures.

FAR 17.503 explains the basic ordering procedures for interagency acquisitions—when one Government agency places an order with another agency for supplies or services. It covers the threshold requirement to follow the proper interagency acquisition procedures in FAR 17.502-1 and, for Economy Act orders, FAR 17.502-2; the content and form of the order itself; how the agencies should handle disagreements, including possible third-party forums; and what additional steps apply when the servicing agency must award a contract. It also addresses who is responsible for preparing justifications and approvals or determinations and findings (J&As or D&Fs), how the requesting agency must support those actions, and how legal, funding, competition, and contract administration requirements are allocated between the agencies. Finally, it includes special rules for nonsponsoring agencies using FFRDCs, including sponsor consent, scope limitations, and documentation that the work will not place the FFRDC in direct competition with private industry. In practice, this section is about making sure interagency buys are properly authorized, documented, competed, funded, and administered so the Government avoids invalid orders, improper charges, and disputes between agencies.

Reporting requirements.

FAR 17.504 addresses two reporting obligations tied to interagency acquisitions and service contracts. First, it requires each executive agency’s senior procurement executive to submit an annual report to the Director of OMB on interagency acquisitions, following whatever format, content, and timing OMB directs. Second, it places responsibility on the servicing agency’s contracting officer to make sure service contractor reporting requirements are satisfied under FAR subpart 4.17, the Service Contracts Inventory. In practice, this section is about accountability and visibility: OMB and agencies need data on how interagency acquisitions are being used, and agencies need accurate service contract inventory reporting to support oversight, workforce planning, and management review. For contracting officers, the rule means reporting is not optional or purely administrative; it is part of contract administration and must be coordinated with the applicable inventory reporting system and agency procedures.