FAR 38.101—General.
Plain-English Summary
FAR 38.101 explains the basic structure and purpose of the Federal Supply Schedule (FSS) program, which is GSA’s governmentwide ordering system for commercial supplies and commercial services. It describes how the program uses indefinite-delivery contracts awarded through competitive procedures, how schedule contractors offer stated prices for specified periods and geographic coverage, and how the schedule contracting office publishes schedule information for users. The section also identifies that some agencies are mandatory users of particular schedules, while other agencies may still place orders under schedules even if they are not required users, and contractors are encouraged to accept those orders. In addition, it recognizes that although GSA awards most schedule contracts, it may delegate schedule-award authority to other agencies, such as the Department of Veterans Affairs for certain medical and subsistence items. Finally, it clarifies that when establishing schedules, GSA or a delegated agency must comply with applicable acquisition statutes and regulations, including FAR parts 5, 6, and 19 at the acquisition-planning stage, while those parts generally do not apply to orders and BPAs placed under existing schedule contracts except as specifically provided in FAR 8.404 and 8.405-5. In practice, this section tells contracting personnel when the schedule program rules apply, who may use the schedules, and where the competition and socioeconomic planning requirements belong in the acquisition process.
Key Rules
FSS is a simplified buying tool
The Federal Supply Schedule program is designed to help agencies buy commercial supplies and services more efficiently, in varying quantities, while leveraging volume discounts. It is an indefinite-delivery contracting vehicle, not a one-time purchase method.
Schedules use competitive awards
Schedule contracts are awarded using competitive procedures to firms, and the firms agree to provide supplies or services at stated prices for a stated period and geographic area. This creates a pre-competed source of supply for later ordering.
Schedule publications guide use
The schedule contracting office publishes Federal Supply Schedule publications that provide an overview of the program and address relevant topics. These publications help agencies and contractors understand how the schedule system works and what rules apply.
Some agencies are mandatory users
Each schedule identifies agencies that must use the contracts as primary sources of supply. For those agencies, the schedule is not optional when the listed requirement falls within the schedule’s scope.
Other agencies may still order
Agencies not identified as mandatory users may place orders under the schedules, and contractors are encouraged to accept those orders. This means the schedules are broadly available even when not required.
GSA may delegate schedule authority
Although GSA awards most schedule contracts, it may authorize other agencies to award schedule contracts and publish schedules. The Department of Veterans Affairs is a common example for certain medical and nonperishable subsistence items.
Planning rules apply at schedule setup
When establishing schedules, GSA or a delegated agency must comply with applicable statutory and regulatory requirements, including FAR parts 5, 6, and 19. Those requirements generally apply during acquisition planning before the schedule solicitation is issued, not to later orders or BPAs under the resulting schedule contracts, except where FAR 8.404 and 8.405-5 provide otherwise.
Responsibilities
GSA / Delegated Schedule Contracting Agency
Establish the schedule program or schedule contract in compliance with all applicable statutes and regulations. Conduct acquisition planning, follow FAR parts 5, 6, and 19 at the schedule-creation stage, publish the schedule information, and ensure the contract terms define price, period, and geographic coverage.
Contracting Officer
Use the schedule correctly, determine whether the agency is a mandatory user, and place orders or BPAs only within the scope of the schedule and applicable ordering rules. When creating schedules, ensure the required planning and competition requirements are satisfied before solicitation.
Mandatory-Use Agency
Use the identified schedule contracts as primary sources of supply for covered requirements. The agency must route applicable commercial supply and service needs through the schedule unless another exception or higher-level authority applies.
Nonmandatory Agency
May issue orders under the schedules when doing so is advantageous or appropriate. The agency should follow the ordering procedures applicable to schedule buys and confirm the requirement fits the schedule scope.
Schedule Contractor
Offer supplies or services at the stated prices and terms for the stated period and geographic area, and be prepared to accept orders from agencies authorized to use the schedule. The contractor should understand that schedule participation creates an ongoing ordering opportunity.
Practical Implications
This section is mainly about where the competition and socioeconomic planning work happens: at schedule establishment, not usually at the order level. Contracting officers should not mistakenly apply FAR parts 5, 6, and 19 to every schedule order or BPA unless a specific exception says to do so.
Agencies need to know whether they are mandatory users for a given schedule. Missing a mandatory-use requirement can create compliance problems, while ignoring a schedule that should be used can undermine acquisition policy.
Schedule contractors should expect orders from both mandatory and nonmandatory agencies and should be ready to accept them. Refusing orders without a valid reason can create performance and relationship issues, even though the section says contractors are only encouraged—not compelled—to accept orders from nonmandatory users.
The geographic scope and stated pricing matter. Buyers should verify that the schedule covers the needed location and that the ordering method respects the contract’s price and delivery terms.
This section is a gateway to the more detailed ordering rules in FAR 8.404 and 8.405-5. A common pitfall is treating the schedule as a normal open-market procurement or, conversely, assuming all acquisition planning rules disappear once a schedule exists.
Official Regulatory Text
(a) The Federal Supply Schedule program, pursuant to 41 U.S.C. 152(3) , provides Federal agencies with a simplified process of acquiring commercial supplies and commercial services in varying quantities while obtaining volume discounts. Indefinite-delivery contracts are awarded using competitive procedures to firms. The firms provide supplies and services at stated prices for given periods of time, for delivery within a stated geographic area such as the 48 contiguous states, the District of Columbia, Alaska, Hawaii, and overseas. The schedule contracting office issues Federal Supply Schedule publications that contain a general overview of the Federal Supply Schedule (FSS) program and address pertinent topics. (b) Each schedule identifies agencies that are required to use the contracts as primary sources of supply. (c) Federal agencies not identified in the schedules as mandatory users may issue orders under the schedules. Contractors are encouraged to accept the orders. (d) Although GSA awards most Federal Supply Schedule contracts, it may authorize other agencies to award schedule contracts and publish schedules. For example, the Department of Veterans Affairs awards schedule contracts for certain medical and nonperishable subsistence items. (e) When establishing Federal Supply Schedules, GSA, or an agency delegated that authority, is responsible for complying with all applicable statutory and regulatory requirements ( e.g., parts 5 , 6 , and 19 ). The requirements of parts 5 , 6 , and 19 apply at the acquisition planning stage prior to issuing the schedule solicitation and, generally, do not apply to orders and BPAs placed under resulting schedule contracts (except see 8.404 and 8.405-5 ).