FAR 51.103—Ordering from Government supply sources.
Plain-English Summary
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.
Key Rules
Follow schedule terms
When ordering under Federal Supply Schedules, the contractor must comply with the applicable schedule contract and the specific written authorization. The order cannot override the schedule terms; if there is a conflict, the schedule contract controls.
Include authorization copy
Each Federal Supply Schedule order must include a copy of the written authorization unless the schedule contractor has already received one. This ensures the supplier can verify the contractor’s authority to place the order.
Use required statement
The order must contain the prescribed statement identifying the written authorization and date, and stating that the schedule contract governs in case of inconsistency. This language is mandatory and serves as notice of the governing terms.
Comply with stock authorization
For Government stock orders, the contractor must follow the contracting officer’s authorization and use FEDSTRIP or MILSTRIP procedures as appropriate. The ordering method must match the Government’s prescribed supply system.
Use correct access codes
When ordering from GSA Customer Supply Centers, the contractor must use only the Government activity address code obtained by the contracting officer under FAR 51.102(e), together with the contractor’s assigned access code. This controls access and ties the order to the authorized contractor.
Order only needed items
Contractors may order only items required to perform their contracts. Government supply sources are not a general-purpose purchasing channel for contractor convenience or unrelated needs.
Responsibilities
Contractor
Place orders only when properly authorized, follow the applicable schedule or stock ordering procedures, include required documentation and statements, use the correct codes, and limit orders to items needed for contract performance.
Contracting Officer
Issue the written authorization, specify the terms and conditions for ordering Government stock, and obtain the Government activity address code needed for GSA Customer Supply Center ordering under FAR 51.102(e).
Federal Supply Schedule Contractor / Supplier
Accept orders that are properly authorized and formatted, and apply the schedule contract terms when there is any inconsistency between the order and the schedule contract.
Agency / Government Supply Activity
Provide the supply-source access framework, including stock ordering procedures and codes, and ensure orders are processed through the proper Government supply channels.
Practical Implications
Contractors should treat the authorization as part of the order package, not as an informal permission. Missing the authorization copy or the required statement can cause rejection or delay.
The biggest compliance risk is ordering beyond contract needs. Even if a contractor has access to Government supply sources, it may only buy items necessary to perform the Government contract.
For Federal Supply Schedule orders, contractors should not try to negotiate order terms that conflict with the schedule contract. The schedule terms prevail, which can affect pricing, delivery, warranties, and other conditions.
For Government stock orders, using the wrong ordering system or codes can prevent the order from being processed and may create audit issues because the order is not properly tied to the authorized contractor.
Contractors and contracting officers should verify that the authorization is current, the correct supply source is being used, and the order documentation clearly shows the basis for authority and the intended contract purpose.
Official Regulatory Text
(a) Contractors placing orders under Federal Supply Schedules shall follow the terms of the applicable schedule and authorization and include with each order- (1) A copy of the authorization (unless a copy was previously furnished to the Federal Supply Schedule contractor); and (2) The following statement: This order is placed under written authorization from ______ dated ______. In the event of any inconsistency between the terms and conditions of this order and those of your Federal Supply Schedule contract, the latter will govern. (b) Contractors placing orders for Government stock shall- (1) Comply with the requirements of the contracting officer’s authorization, using FEDSTRIP or MILSTRIP procedures, as appropriate; (2) Use only the Government activity address code obtained by the contracting officer in accordance with 51.102 (e) along with the contractor’s assigned access code, when ordering from GSA Customer Supply Centers. (3) Order only those items required in the performance of their contracts.