FAR 18.106—Acquisitions from Federal Prison Industries, Inc. (FPI).
Plain-English Summary
FAR 18.106 addresses one narrow but important exception in the Federal Prison Industries, Inc. (FPI) purchasing framework: when a public exigency requires immediate delivery or performance, agencies do not have to treat FPI as a mandatory source and do not need to obtain a waiver before buying elsewhere. In practical terms, this section ties emergency acquisition authority to the FPI source-preference rules in FAR 8.605(b) and clarifies that urgent mission needs can override the normal FPI purchasing process. The section is designed to prevent delays in time-sensitive situations where waiting for FPI availability, coordination, or waiver processing would harm the Government’s ability to respond quickly. For contracting officers, it means documenting the urgency and proceeding with the acquisition without treating FPI as a required source. For contractors and acquisition personnel, it signals that emergency buys may bypass FPI requirements, but only when the facts truly support immediate delivery or performance. The section is short, but it has real operational significance because it preserves flexibility during emergencies while keeping the general FPI preference rule intact for non-urgent buys.
Key Rules
Emergency overrides FPI preference
When a public exigency requires immediate delivery or performance, the Government is not required to purchase from Federal Prison Industries, Inc. This means the normal source preference does not control if the need is urgent enough to justify immediate action.
No waiver needed in exigency
In a public exigency situation, the contracting activity does not need to obtain a waiver before buying from another source. The urgency itself serves as the basis for bypassing the usual FPI purchasing requirement.
Refer to FAR 8.605(b)
This section points readers to FAR 8.605(b) for the related rule on public exigency. The practical effect is that the contracting officer should use the standards and procedures in that provision to support the decision.
Responsibilities
Contracting Officer
Determine whether the requirement truly involves a public exigency requiring immediate delivery or performance, and if so, proceed without treating FPI as mandatory and without seeking a waiver. The contracting officer should ensure the urgency is supportable and consistent with FAR 8.605(b).
Agency/Acquisition Team
Identify urgent mission needs early, document the basis for immediate action, and coordinate the acquisition path so the emergency requirement is met without unnecessary delay. The team should avoid treating FPI as a mandatory source when the exigency exception applies.
Federal Prison Industries, Inc. (FPI)
Recognize that its source preference does not apply in public exigency situations requiring immediate delivery or performance. FPI is not entitled to be used as the source when the emergency exception is properly invoked.
Practical Implications
This rule matters most in emergencies, where even short delays can affect mission success, safety, or continuity of operations.
The main pitfall is assuming that any urgent need automatically qualifies; the contracting officer still needs a real public exigency that requires immediate delivery or performance.
Another common mistake is spending time on a waiver request when the regulation says no waiver is needed in these circumstances.
Because the section is cross-referenced to FAR 8.605(b), users should read both provisions together to understand the full decision standard and documentation expectations.
For contractors, the practical takeaway is that an agency may bypass FPI in urgent buys, so source-preference assumptions should not be relied on when the Government is acting under emergency authority.
Official Regulatory Text
Purchase from FPI is not mandatory and a waiver is not required if public exigency requires immediate delivery or performance (see 8.605 (b)).