FAR 51.101—Policy.
Plain-English Summary
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.
Key Rules
Government interest required
Contracting officers may authorize contractor use of Government supply sources only when it is in the Government’s interest and the needed supplies or services are available from those sources. This is a discretionary authority, not a blanket right for contractors.
Cost-reimbursement contracts
Contractors performing Government cost-reimbursement contracts may be authorized to use Government supply sources. The rule recognizes that these contracts often make Government-furnished or Government-channel purchasing more practical and economical.
Certain negotiated contracts
For other negotiated contracts, authorization is allowed only when the agency determines that a substantial dollar portion of the contractor’s contracts are cost-reimbursement in nature. This limits the policy to contractors whose business mix makes Government-source purchasing especially relevant.
AbilityOne-related use
A contract under 41 U.S.C. chapter 85 may use Government supply sources only if the nonprofit agency is providing a commodity or service to the Federal Government and the supplies or services are directly used in making or providing an approved commodity or service to the Government. This links FAR 51.101 to the mandatory source framework in FAR Subpart 8.7.
Security equipment for classified work
Contractors with fixed-price Government contracts that require protection of security classified information may acquire security equipment through GSA sources. This is a specific exception for classified-work needs, referenced to the GSA supply system.
Priority for DLA, GSA, and VA
When contractors are purchasing supply items for Government use that are available from the Committee for Purchase From People Who Are Blind or Severely Disabled, contracting officers shall authorize purchase from DLA, GSA, and VA distribution facilities if the items are available there. These sources are used before ordering through the central nonprofit agency.
Central nonprofit agency fallback
If mandatory AbilityOne supplies are not available from DLA, GSA, or VA, they must be ordered through the appropriate central nonprofit agency. This preserves the mandatory source requirement while allowing use of Government distribution channels first when available.
Responsibilities
Contracting Officer
Determine whether authorizing contractor use of Government supply sources is in the Government’s interest and whether the required supplies or services are available from those sources. For qualifying contracts, authorize use of Government sources; for AbilityOne items, direct contractors to DLA, GSA, or VA distribution facilities when available, and use the central nonprofit agency only when those sources cannot supply the item.
Agency
Decide whether a substantial dollar portion of a contractor’s contracts are cost-reimbursement in nature when considering authorization for other negotiated contracts. Ensure internal purchasing and supply policies align with FAR Part 51, FAR Subpart 8.7, and related GSA/DLA/VA channels.
Contractor
Use Government supply sources only when authorized or required under the contract and applicable FAR provisions. For classified fixed-price work, obtain security equipment through GSA sources when permitted; for AbilityOne-related supply items, follow the authorized ordering path and do not bypass mandatory source rules.
Nonprofit Agency / Central Nonprofit Agency
Provide AbilityOne commodities or services within the statutory and regulatory framework. When DLA, GSA, or VA do not have the mandatory item available, receive orders through the appropriate central nonprofit agency as required.
DLA, GSA, and VA
Make available, through their distribution facilities, supply items that are on the mandatory source list for Government use. When items are available through these channels, they take priority over ordering through the central nonprofit agency.
Practical Implications
This section is mainly about source-of-supply control: contractors cannot assume they may buy from Government sources unless the contract type and authorization fit the rule.
For cost-reimbursement work, using Government supply sources can simplify procurement and support cost control, but the contracting officer must still make the interest-of-the-Government determination.
A common pitfall is confusing AbilityOne mandatory source procedures with ordinary Government supply sourcing; the order of precedence matters, and DLA/GSA/VA distribution facilities must be checked first when applicable.
For classified fixed-price contracts, security equipment may be obtained through GSA sources, so contractors should coordinate early rather than buying commercially and risking noncompliance.
Contracting officers should document the basis for authorization, especially for non-cost-reimbursement negotiated contracts, because the rule depends on an agency determination that a substantial dollar portion of the contractor’s business is cost-reimbursement in nature.
Official Regulatory Text
(a) If it is in the Government’s interest, and if supplies or services required in the performance of a Government contract are available from Government supply sources, contracting officers may authorize contractors to use these sources in performing- (1) Government cost-reimbursement contracts; (2) Other types of negotiated contracts when the agency determines that a substantial dollar portion of the contractor’s contracts are of a Government cost-reimbursement nature; or (3) A contract under 41 U.S.C. chapter 85 , Committee for Purchase from People Who Are Blind or Severely Disabled, if- (i) The nonprofit agency requesting use of the supplies and services is providing a commodity or service to the Federal Government; and (ii) The supplies or services received are directly used in making or providing a commodity or service, approved by the Committee for Purchase From People Who Are Blind or Severely Disabled, to the Federal Government (see subpart 8.7 ). (b) Contractors with fixed-price Government contracts that require protection of security classified information may acquire security equipment through GSA sources (see 41 CFR 101-26.507 ). (c) Contracting officers shall authorize contractors purchasing supply items for Government use that are available from the Committee for Purchase from People Who Are Blind or Severely Disabled (see subpart 8.7 ) to purchase such items from the Defense Logistics Agency (DLA), the General Services Administration (GSA), and the Department of Veterans Affairs (VA) if they are available from these agencies through their distribution facilities. Mandatory supplies that are not available from DLA/GSA/VA shall be ordered through the appropriate central nonprofit agency (see 52.208-9 (c)).