FAR 51.201—Policy.
Plain-English Summary
FAR 51.201 sets the basic policy for when contractors may use Government fleet resources and related support services, and when they may not. It covers three main subjects: authorization for cost-reimbursement contractors to obtain interagency fleet management system (IFMS) vehicles and related services for official purposes only; the requirement for contracting officer approval before a contractor performs complete rebuilding of major components on contractor-owned or -leased equipment; and the general prohibition on authorizing IFMS vehicles and related services for contracts other than cost-reimbursement contracts unless the Administrator of General Services specifically approves an exception at the agency’s request. In practice, this section is about controlling Government property and transportation support so that contractor use is limited, justified, and tied to the Government’s interest. It also helps prevent unauthorized use of Government fleet assets, improper charging, and unapproved maintenance or rebuilding work. For contracting officers, the section establishes a gatekeeping role; for contractors, it defines a narrow set of circumstances in which fleet support may be used and makes clear that approval is not automatic.
Key Rules
Cost-Reimbursement Use Allowed
The contracting officer may authorize cost-reimbursement contractors to obtain IFMS vehicles and related services when doing so is in the Government’s interest. The authorization is limited to official purposes only, meaning the vehicles and services must support contract performance and not private or unrelated use.
Covered Fleet Services
When authorized, the contractor may obtain not only IFMS vehicles but also related services such as fuel and lubricants, vehicle inspection, maintenance and repair, vehicle storage, and short-term commercially rented vehicles. These services are part of the same controlled authorization and are not independently available without proper approval.
Rebuilding Needs Approval
Complete rebuilding of major components of contractor-owned or contractor-leased equipment requires contracting officer approval in each individual case. This is a case-by-case control, so a contractor cannot assume that prior approval, general contract authority, or routine maintenance rights cover major rebuilding work.
Non-Cost Contracts Generally Prohibited
Government contractors are not authorized to obtain IFMS vehicles and related services for performance of any contract other than a cost-reimbursement contract. This is the default rule and applies broadly unless an exception is specifically approved.
GSA Exception Process
An exception for a non-cost-reimbursement contract may be made only if the Administrator of the General Services Administration approves it at the request of the agency involved. This means the agency must seek special approval; contractors cannot self-authorize or rely on informal agency permission.
Responsibilities
Contracting Officer
Determine whether authorizing IFMS vehicles and related services is in the Government’s interest for a cost-reimbursement contract, limit use to official purposes only, and approve each instance of complete rebuilding of major components of contractor-owned or -leased equipment. The contracting officer must also ensure no unauthorized IFMS use is permitted under non-cost-reimbursement contracts absent a valid exception.
Contractor
Use IFMS vehicles and related services only when properly authorized and only for official purposes, comply with any limits on fuel, maintenance, storage, and short-term rental use, and seek approval before undertaking complete rebuilding of major components of owned or leased equipment. The contractor must not assume IFMS access is available under fixed-price or other non-cost-reimbursement arrangements.
Agency
When a non-cost-reimbursement contract needs IFMS vehicles or related services, request special approval from the Administrator of General Services if an exception is justified. The agency must support and route the request rather than treating the exception as automatic.
Administrator of General Services
Consider and, if appropriate, approve exceptions allowing IFMS vehicles and related services for contracts other than cost-reimbursement contracts when requested by the agency involved.
Practical Implications
This section creates a strong approval gate before contractors can use Government fleet assets, so contracting officers should document the basis for any authorization and keep the scope narrow.
Contractors should not treat fuel cards, maintenance access, storage, or short-term rentals as routine entitlements; each is tied to the underlying authorization and official-purpose limitation.
A common pitfall is assuming that because a contractor is supporting the Government, it may use IFMS resources under any contract type; FAR 51.201 makes cost-reimbursement the default eligible category.
Another risk is treating major equipment rebuilding as ordinary repair work. If the work is a complete rebuilding of major components, the contractor needs specific contracting officer approval each time.
Agencies seeking an exception for a non-cost contract should plan for a formal approval process through GSA, which can affect schedule and should be addressed early in acquisition planning.
Official Regulatory Text
(a) If it is in the Government’s interest, the contracting officer may authorize cost-reimbursement contractors to obtain, for official purposes only, interagency fleet management system (IFMS) vehicles and related services, including- (1) Fuel and lubricants, (2) Vehicle inspection, maintenance, and repair, (3) Vehicle storage, and (4) Commercially rented vehicles for short-term use. (b) Complete rebuilding of major components of contractor-owned or -leased equipment requires the approval of the contracting officer in each instance. (c) Government contractors shall not be authorized to obtain interagency fleet management system (IFMS) vehicles and related services for use in performance of any contract other than a cost-reimbursement contract, except as otherwise specifically approved by the Administrator of the General Services Administration at the request of the agency involved.