FAR 17.502—Procedures.

General.

FAR 17.502-1 explains how agencies must set up responsibility for managing and administering interagency acquisitions, and it distinguishes between assisted acquisitions and direct acquisitions. For assisted acquisitions, it requires a written interagency agreement signed before the solicitation is issued, setting out the general terms and conditions of the relationship, including acquisition planning, contract execution, and contract/order administration. It also requires the requesting agency to identify any unique agency-specific requirements, statutes, regulations, directives, or other applicable conditions that must be incorporated into the contract or order, and it requires both agencies to keep the agreement and supporting documentation in the file for audit purposes. For direct acquisitions, the rule is simpler: the requesting agency administers the order, so no written agreement with the servicing agency is required. The section also imposes a separate business-case analysis requirement for multi-agency contracts and governmentwide acquisition contracts, including approval under OFPP guidance. That business case must address small business participation, administrative costs, the effect on the Government’s buying power, the need for the contract vehicle, and the roles and responsibilities for administration. In practice, this section is about preventing confusion over who is responsible, ensuring agency-specific requirements are not lost, and making sure large interagency vehicles are justified before they are created.

The Economy Act.

FAR 17.502-2 explains when and how agencies may use the Economy Act to obtain supplies or services from another agency, including interagency acquisitions and certain intra-agency transactions. It covers the basic authority under 31 U.S.C. 1535, when the FAR applies and when it does not, and the rule that the Economy Act is a fallback authority used only when more specific statutory authority is unavailable. The section also sets out the required determination and findings (D&F), including the best-interest finding, the finding that direct contracting is not as convenient or economical, and the required basis for using another agency. It addresses who must approve the D&F, how the requesting agency must transmit it to the servicing agency, and the payment rules for advance payment, post-performance payment, audit/certification, and limits on fees or charges. In practice, this section is important because it controls whether an interagency buy is legally supportable, who may approve it, and how money may flow between agencies without overpaying for administrative support.