FAR 41.206—Interagency agreements.
Plain-English Summary
FAR 41.206 is a short but important cross-reference rule for federal utility acquisitions from other Government agencies. It covers when agencies must use interagency agreements—such as consolidated purchase agreements, joint-use arrangements, or cross-service agreements—when obtaining utility service or utility facilities from another federal agency, and it ties those transactions to the Economy Act policies and procedures at FAR 17.502-2. In practice, this means the buying agency cannot treat these arrangements as ordinary utility buys; it must follow the interagency acquisition framework that governs one agency ordering from another. The section exists to ensure legal authority, proper documentation, cost control, and compliance with governmentwide rules when agencies rely on another agency’s utility-related resources or contracting capability. For contracting officers and program offices, the practical significance is that the form of the arrangement matters: if the utility service or facility is coming from another agency, the transaction must be structured and justified as an interagency agreement under the Economy Act framework rather than as a standalone procurement.
Key Rules
Use interagency agreements
When an agency acquires utility service or facilities from another Government agency, it must use an interagency agreement. The rule expressly includes consolidated purchase, joint use, and cross-service agreements as examples of acceptable interagency arrangements.
Applies to utility services and facilities
The requirement covers both utility service and utility facilities obtained from another federal agency. Agencies should not assume the rule is limited to purchased utility commodities; it also reaches arrangements involving the use or provision of utility-related facilities.
Follow Economy Act procedures
These interagency agreements must comply with the policies and procedures in FAR 17.502-2, which implements the Economy Act. That means the agency must satisfy the legal and procedural requirements for one agency to order goods or services from another.
Government-to-government transactions only
This section applies specifically when the source is another Government agency, not a private utility or commercial vendor. If the provider is another federal agency, the acquisition must be handled under the interagency agreement framework.
Responsibilities
Agency acquiring the utility service or facilities
Must structure the transaction as an interagency agreement and ensure the arrangement complies with FAR 17.502-2. The agency must not bypass the Economy Act requirements when obtaining utility-related support from another federal agency.
Contracting Officer
Must determine whether the acquisition is from another Government agency and, if so, use the proper interagency agreement vehicle. The contracting officer must ensure the agreement is properly justified, documented, and processed under the Economy Act procedures.
Providing Government Agency
Must furnish the utility service or facilities under an interagency agreement framework rather than as an informal transfer. The providing agency must support the arrangement in a manner consistent with Economy Act policies and procedures.
Program/Requirements Office
Must identify early when the requirement involves another federal agency and coordinate with contracting personnel to ensure the correct acquisition method is used. It should provide the operational need and support any required justification or documentation.
Practical Implications
Agencies cannot treat utility support from another federal agency as a routine internal arrangement; it must be documented as an interagency agreement.
A common pitfall is failing to apply FAR 17.502-2 because the transaction is labeled as a utility arrangement rather than an interagency acquisition.
Contracting officers should verify whether the source is a federal agency before selecting the acquisition approach, since the compliance path changes significantly.
The rule helps prevent unauthorized or poorly documented transfers of utility-related services and facilities between agencies.
Early coordination matters: if the requirement may be met by another agency, the acquisition team should address Economy Act requirements up front to avoid delays or invalid agreements.
Official Regulatory Text
Agencies shall use interagency agreements ( e.g. , consolidated purchase, joint use, or cross-service agreements) when acquiring utility service or facilities from other Government agencies and shall comply with the policies and procedures at 17.502-2 , The Economy Act.