FAR 8.004—Use of other sources.
Plain-English Summary
FAR 8.004 explains what agencies should do when they cannot meet a supply or service requirement through the mandatory sources in FAR 8.002 and 8.003. It identifies the next places agencies are encouraged to look, starting with non-mandatory government sources such as Federal Supply Schedules, Governmentwide acquisition contracts (GWACs), multi-agency contracts (MACs), other procurement instruments intended for use by multiple agencies, and blanket purchase agreements (BPAs) under Federal Supply Schedule contracts, including Federal Strategic Sourcing Initiative (FSSI) agreements. For services, it also points agencies to Federal Prison Industries, Inc. and the same multi-agency sources. Only after considering those sources should agencies move to commercial open-market sources, including educational and nonprofit institutions. The section also reminds agencies that when using non-mandatory sources, they must still consider small business programs and socioeconomic priorities under FAR 7.105(b) and FAR part 19, including small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business (including 8(a) participants), and women-owned small business concerns. In practice, this section is about acquisition planning and source selection discipline: it tells contracting personnel the order of consideration, reinforces small business policy obligations, and helps agencies use existing government buying vehicles before going to the open market.
Key Rules
Use non-mandatory sources first
If mandatory sources cannot satisfy the requirement, agencies are encouraged to look to non-mandatory sources before going to the open market. This is a preference rule, not an absolute prohibition, but it establishes the expected sequence of consideration.
Supplies: consider governmentwide vehicles
For supplies, agencies should consider Federal Supply Schedules, GWACs, MACs, and other multi-agency procurement instruments, including BPAs under FSS contracts such as FSSI agreements. These sources are listed without priority order within the group.
Services: include Federal Prison Industries
For services, agencies are encouraged to consider Federal Prison Industries, Inc., along with the same multi-agency sources listed for supplies. The reference to subpart 8.6 means agencies must also follow the specific rules governing FPI use.
Open market is the last listed option
Commercial sources, including educational and nonprofit institutions, are the non-mandatory source listed in paragraph (b) and are considered after the sources in paragraph (a). This reflects a preference for existing government or government-related procurement channels before open-market buying.
Small business considerations still apply
When using non-mandatory sources, agencies must still consider the acquisition planning and small business requirements in FAR 7.105(b) and FAR part 19. This includes socioeconomic programs for veteran-owned, service-disabled veteran-owned, HUBZone, small disadvantaged, 8(a), and women-owned small businesses.
Responsibilities
Agency
Determine whether mandatory sources can meet the requirement, then consider the non-mandatory sources identified in FAR 8.004 before turning to the open market. The agency must also apply small business and socioeconomic considerations required by FAR 7.105(b) and FAR part 19.
Contracting Officer
Evaluate available sources in the prescribed order of consideration, document the source-selection rationale as needed, and ensure compliance with small business policy requirements when using non-mandatory sources. The contracting officer must also apply the specific rules for Federal Prison Industries when that source is considered for services.
Acquisition Planner / Requiring Activity
Help identify whether the requirement can be satisfied through existing governmentwide or multi-agency vehicles and ensure the acquisition strategy accounts for small business and socioeconomic goals. The requiring activity should provide accurate requirement descriptions so the agency can match them to available sources.
Small Business Specialist / SBA Liaison (as applicable)
Advise the agency on small business and socioeconomic set-aside and participation considerations when non-mandatory sources are being evaluated. This support helps ensure the agency does not bypass part 19 requirements while using existing vehicles.
Federal Prison Industries, Inc.
Serve as a potential source for services when agencies are considering non-mandatory sources under this section, subject to the requirements of subpart 8.6.
Commercial Vendors, Educational Institutions, and Nonprofits
Provide open-market supplies or services when the agency reaches paragraph (b) and elects to buy commercially after considering the listed non-mandatory government sources.
Practical Implications
This section pushes agencies to reuse existing contracting vehicles before creating a new open-market buy, which can save time and reduce duplication. Contractors should understand that being on a Schedule, GWAC, MAC, or BPA can make them more visible to agencies that are following this source-selection sequence.
The rule is not a strict ranking among the sources in paragraph (a), but agencies are expected to consider those sources before the open market. A common mistake is jumping straight to an open-market solicitation without checking whether an existing governmentwide or multi-agency vehicle can satisfy the need.
Small business policy does not disappear just because an agency uses a Schedule or other non-mandatory vehicle. Contracting officers must still think through set-aside and socioeconomic opportunities, so agencies should not assume that using an existing vehicle automatically satisfies part 19 obligations.
For services, agencies must remember Federal Prison Industries is specifically called out and that subpart 8.6 applies. A practical pitfall is overlooking FPI or failing to apply the special procedures that govern its use.
For contractors, this section highlights the value of being available on commonly used procurement instruments and of understanding how agencies source through those vehicles. For agencies, it reinforces the need to document market research and acquisition planning so the file shows why a particular source was chosen.
Official Regulatory Text
If an agency is unable to satisfy requirements for supplies and services from the mandatory sources listed in 8.002 and 8.003 , agencies are encouraged to consider satisfying requirements from or through the non-mandatory sources listed in paragraph (a) of this section (not listed in any order of priority) before considering the non-mandatory source listed in paragraph (b) of this section. When satisfying requirements from non-mandatory sources, see 7.105 (b) and part 19 regarding consideration of small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business (including 8(a) participants), and women-owned small business concerns. (a) (1) Supplies. Federal Supply Schedules, Governmentwide acquisition contracts, multi-agency contracts, and any other procurement instruments intended for use by multiple agencies, including blanket purchase agreements (BPAs) under Federal Supply Schedule contracts (e.g., Federal Strategic Sourcing Initiative (FSSI) agreements accessible at http://www.gsa.gov/fssi (see also 5.601 )). (2) Services. Agencies are encouraged to consider Federal Prison Industries, Inc., as well as the sources listed in paragraph (a)(1) of this section (see subpart 8.6 ). (b) Commercial sources (including educational and non-profit institutions) in the open market.