FAR 17.500—Scope of subpart.
Plain-English Summary
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.
Key Rules
Subpart applies broadly
Subpart 17.5 applies to all interagency acquisitions under any authority unless a stated exception applies. This means agencies must look first to whether the transaction is an interagency acquisition before deciding which procedures govern it.
Using another agency’s contract
The subpart applies when an agency needing supplies or services obtains them through another agency’s contract. This covers situations where the buying agency is relying on a contract already awarded by a different agency.
Acquisition assistance arrangements
The subpart also applies when one agency assists another by awarding or administering a contract, task order, or delivery order. The focus is on the use of another agency to perform acquisition functions, not just on who ultimately receives the supplies or services.
DoD acquisitions need extra compliance
Nondefense agencies acquiring supplies or services on behalf of the Department of Defense must comply not only with Subpart 17.5 but also with FAR Subpart 17.7. This creates an additional layer of policy and procedure for those transactions.
Federal employee work excluded
The subpart does not apply to interagency reimbursable work performed by Federal employees when the work is not acquisition assistance. If the activity is simply interagency work and contracting is not the main purpose, Subpart 17.5 is not triggered.
Incidental contracting excluded
Interagency activities where contracting is incidental to the purpose of the transaction are outside the subpart. The key question is whether the transaction is primarily about acquisition or whether contracting is only a minor part of a broader interagency effort.
Small FSS orders excluded
Orders of $750,000 or less issued against Federal Supply Schedules are excluded from this subpart. Agencies placing these smaller schedule orders do not apply Subpart 17.5’s interagency acquisition procedures.
Responsibilities
Contracting Officer
Determine whether a transaction is an interagency acquisition covered by Subpart 17.5, apply the subpart’s policies and procedures when it is covered, and recognize when an exclusion or the DoD-specific overlay in Subpart 17.7 applies.
Requiring Activity / Program Office
Identify whether the need will be satisfied through another agency’s contract or through acquisition assistance, and provide enough information for the contracting office to determine the correct regulatory framework.
Assisting Agency
When providing acquisition assistance, award or administer the contract, task order, or delivery order in accordance with the applicable interagency acquisition rules and any additional requirements tied to the requesting agency or DoD use.
Nondefense Agency Acquiring for DoD
Comply with both Subpart 17.5 and FAR Subpart 17.7 when acquiring supplies or services on behalf of the Department of Defense, ensuring the transaction meets both sets of requirements.
Agency Legal / Policy Officials
Help determine whether the transaction is an interagency acquisition, whether an exclusion applies, and whether special statutory or regulatory requirements affect the planned use of another agency’s contract or acquisition support.
Practical Implications
This section is a threshold rule: before using another agency’s contract or asking another agency to run the procurement, the parties must decide whether the transaction is covered by Subpart 17.5.
A common pitfall is assuming that any interagency arrangement is exempt because it is reimbursable or collaborative; if acquisition assistance is involved, the subpart likely applies.
Another frequent issue is overlooking the DoD-specific overlay when a civilian agency is buying for DoD; that transaction can trigger additional compliance obligations beyond the general interagency rules.
Agencies should also watch the $750,000 Federal Supply Schedule exception carefully, because it is a specific carve-out that can remove smaller schedule orders from Subpart 17.5.
Proper classification matters because it affects who may place the order, what procedures must be followed, and what oversight or documentation is needed to support the acquisition.
Official Regulatory Text
(a) This subpart prescribes policies and procedures applicable to all interagency acquisitions under any authority, except as provided for in paragraph (c) of this section. In addition to complying with the interagency acquisition policy and procedures in this subpart, nondefense agencies acquiring supplies and services on behalf of the Department of Defense shall also comply with the policy and procedures at subpart 17.7 . (b) This subpart applies to interagency acquisitions, see 2.101 for definition, when- (1) An agency needing supplies or services obtains them using another agency’s contract; or (2) An agency uses another agency to provide acquisition assistance, such as awarding and administering a contract, a task order, or delivery order. (c) This subpart does not apply to- (1) Interagency reimbursable work performed by Federal employees (other than acquisition assistance), or interagency activities where contracting is incidental to the purpose of the transaction; or (2) Orders of $750,000 or less issued against Federal Supply Schedules.