FAR 17.501—General.
Plain-English Summary
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.
Key Rules
Common interagency vehicles
Interagency acquisitions are often conducted through indefinite-delivery contracts, especially task- and delivery-order contracts. The most frequently used vehicles are FSS, GWACs, and MACs.
No funding circumvention
An agency may not use an interagency acquisition to get around conditions or limitations attached to the use of appropriated funds. Funding restrictions still apply even when another agency places the order or administers the contract.
Subpart 7.3 still applies
Interagency acquisitions are not exempt from FAR subpart 7.3, Contractor Versus Government Performance. Agencies must still address whether the work should be performed by government personnel or contractors.
No conflict with other authorities
An agency may not use an interagency acquisition in a way that conflicts with another agency’s statutory authority or responsibility. This includes authorities such as those held by the Administrator of General Services under title 40 and procurement authorities under title 41.
Responsibilities
Agency using the interagency acquisition
Must ensure the acquisition is a proper use of an interagency vehicle, comply with all funding restrictions, follow FAR subpart 7.3, and avoid interfering with another agency’s legal authorities or responsibilities.
Contracting Officer
Must structure and review the interagency acquisition to confirm the vehicle is appropriate, the funding purpose and limitations are respected, contractor-versus-government performance requirements are addressed, and the action does not conflict with another agency’s statutory role.
Requiring Activity / Program Office
Must identify the actual need, confirm that the interagency approach is not being used to bypass funding or sourcing rules, and provide the information needed to support contractor-versus-government performance determinations.
Supporting or Servicing Agency
Must administer the vehicle or order in a manner consistent with its own authority and the requesting agency’s legal restrictions, and should not accept or process actions that would create a conflict with another agency’s statutory responsibilities.
Practical Implications
Interagency buying is a convenience tool, not a legal shortcut; funding restrictions and acquisition policy still apply.
A common mistake is assuming that using an FSS, GWAC, or MAC automatically solves all compliance issues; it does not.
Contracting officers should check both the requesting agency’s funding rules and the servicing vehicle’s scope and authority before placing an order.
Workforce sourcing questions still matter, so agencies should not skip contractor-versus-government performance analysis just because the acquisition is interagency.
If an interagency action touches another agency’s statutory domain, the parties should verify authority early to avoid protests, funding issues, or invalid procurement actions.
Official Regulatory Text
(a) Interagency acquisitions are commonly conducted through indefinite-delivery contracts, such as task- and delivery-order contracts. The indefinite-delivery contracts used most frequently to support interagency acquisitions are Federal Supply Schedules (FSS), Governmentwide acquisition contracts (GWACs), and multi-agency contracts (MACs). (b) An agency shall not use an interagency acquisition to circumvent conditions and limitations imposed on the use of funds. (c) An interagency acquisition is not exempt from the requirements of subpart 7.3 , Contractor Versus Government Performance. (d) An agency shall not use an interagency acquisition to make acquisitions conflicting with any other agency’s authority or responsibility (for example, that of the Administrator of General Services under title 40, United States Code , "Public Buildings, Property and Works" and 41 U.S.C. division C of subtitle I, Procurement.)