FAR 51.1—Subpart 51.1

Scope of subpart.

FAR 51.100 is the opening scope provision for FAR subpart 51.1, and it tells readers what the subpart is about and who it reaches. It states that the subpart prescribes the policies and procedures governing contractors’ use of Government supply sources, with a cross-reference to FAR 51.102(c) for the specific supply sources covered. It also establishes an important interpretive rule: throughout this subpart, the words “contractors” and “contracts” are read broadly to include “subcontractors” and “subcontracts.” In practice, this means the rules in the subpart are not limited to prime contractors alone; they can also apply down the contracting chain when a subcontractor is using Government supply sources under the applicable authority. The section is short, but it matters because it defines the reach of the entire subpart and prevents narrow readings that would exclude lower-tier contractors from the policy and procedural framework.

Policy.

FAR 51.101 explains when contractors may use Government supply sources instead of commercial sources, and when contracting officers must or may authorize that use. It covers three main situations: use of Government supply sources in cost-reimbursement and certain other negotiated contracts, access to security equipment for fixed-price contracts involving classified information, and the special ordering path for supplies that are mandatory for purchase from the Committee for Purchase From People Who Are Blind or Severely Disabled (the AbilityOne program). In practice, this section is about channeling contractor purchases through existing Government or mandatory sources when that is in the Government’s interest, while also preserving the special procurement rules that apply to AbilityOne items. It matters because it affects cost allowability, ordering procedures, source selection, and compliance with mandatory source requirements. Contractors need to know when they may use Government sources and when they must use them, while contracting officers need to know when authorization is permitted or required and which source takes priority. The section also ties together FAR Part 51, FAR Subpart 8.7, and related GSA and DLA supply channels.

Authorization to use Government supply sources.

FAR 51.102 explains how a contracting officer authorizes a contractor to use Government supply sources and what must happen before, during, and after that authorization. It covers the required written finding in the contract file, the factors the contracting officer should consider when deciding whether to authorize use of Government sources, the special rule for subcontractors, and the steps for obtaining the proper activity address code or agency approval from GSA, DoD, VA, or another agency. It also addresses what information must be included in the request to the Government supply source, what must be stated in the contractor’s authorization letter, and how the authorization may be limited by scope, dollar amount, facility, contract, or title-vesting terms. Finally, it assigns post-authorization responsibilities to the authorizing agency for monitoring compliance, handling unpaid indebtedness, and notifying supply sources of address changes or contract completion/termination. In practice, this section is the control point that prevents contractors from using Government inventories or ordering systems without documented need, proper routing, and clear accountability.

Ordering from Government supply sources.

FAR 51.103 explains how contractors may place orders against Government supply sources when they have been given written authorization to do so. It covers two distinct ordering paths: orders under Federal Supply Schedules and orders for Government stock. For Federal Supply Schedule orders, the section requires contractors to follow the schedule terms and the specific authorization, include a copy of the authorization with the order unless it was already provided, and include a mandatory statement that the order is placed under written authorization and that the schedule contract controls if there is any inconsistency. For Government stock orders, the section requires compliance with the contracting officer’s authorization, use of FEDSTRIP or MILSTRIP procedures as appropriate, use of the correct Government activity address code and contractor access code when ordering from GSA Customer Supply Centers, and a limitation that only items needed to perform the contract may be ordered. In practice, this section is about controlling access to Government supply systems, ensuring orders are traceable to valid authority, and preventing contractors from using Government supply channels for anything beyond authorized contract performance. It matters because mistakes in ordering format, authorization, or scope can delay fulfillment, create payment or audit issues, or result in unauthorized use of Government supply sources.

Furnishing assistance to contractors.

FAR 51.104 explains the government’s role in helping a contractor get set up to use Government supply and ordering systems after the contractor receives an activity address code. It requires the contracting officer to notify the appropriate GSA regional office or military activity, which then contacts the contractor and provides initial ordering information and instructions. The section also covers hands-on assistance, when needed, for preparing and submitting the initial FEDSTRIP or MILSTRIP requisitions, Optional Form 347, or other agency-approved forms, as well as completing GSA Form 457 for FSS publications mailing lists and GSA Form 3525 for Customer Supply Center services and address changes. In practice, this section is about onboarding the contractor into the correct ordering and publication-distribution channels so the contractor can receive required forms, instructions, and supply support without delay. It matters because early administrative setup errors can disrupt ordering, publication delivery, and supply center communications, especially for contractors performing work that depends on government-furnished ordering processes.

Payment for shipments.

FAR 51.105 addresses how payment works when a contractor receives supplies ordered from Government stock under the Government property/furnishing system. It covers three core topics: when GSA, DoD, and VA may forward bills to contractors, what event establishes the contractor’s liability for the billed amount, and the contracting officer’s role in directing prompt payment. The rule is designed to align billing with shipment, so contractors are not charged before the supplies have actually been shipped. In practice, this means the contractor’s obligation to pay arises upon receipt of the billing, and the billing itself is treated as sufficient evidence of liability and a basis for payment. The section is short, but it is important because it sets the timing and evidentiary standard for payment disputes involving Government-stock shipments and helps agencies and contractors avoid premature billing or delayed payment.

Title.

FAR 51.106 addresses who owns property acquired by a contractor when the contractor is acting under the contracting officer’s authorization to acquire Government property. Its core purpose is to make title rules clear so the parties know whether title vests in the Government, the contractor, or another party as stated in the contract. The section also creates a special rule for contracts with educational institutions when the Government Property clause at 52.245-1, Alternate II, is used: property with a unit acquisition cost of less than $5,000 vests in the contractor under the clause, unless the agency sets a higher threshold. In practice, this section matters because title determines who bears risk, who controls disposition, how property is recorded, and what happens when the contract ends or property is no longer needed. It is especially important for contractors managing purchased equipment, supplies, or other property under Government authorization, and for contracting officers drafting or administering property clauses and title provisions.

Contract clause.

FAR 51.107 is a very short but important implementation rule for the Government property and supply sources framework. It tells contracting officers when they must include the contract clause at 52.251-1, Government Supply Sources, in solicitations and contracts: specifically, whenever the contractor is authorized to obtain supplies or services from a Government supply source. In practice, this section ensures the contract clearly permits and governs contractor use of Government-run sources of supply, such as Federal supply schedules or other authorized Government supply channels, rather than leaving that authority implied. Its purpose is to make the contractor’s access to Government supply sources explicit, so both parties understand the scope of the authorization and the applicable clause terms. For contracting officers, it is a mandatory clause-insertion rule tied to a specific contracting decision. For contractors, it signals that they may use Government supply sources only to the extent the contract authorizes and the clause governs that use.