FAR 8.705-3—Allocation process.
Plain-English Summary
FAR 8.705-3 explains the allocation process used when the AbilityOne direct order process is not authorized. It covers how an ordering office must request an allocation from the central nonprofit agency named in the Procurement List, what information must be included in requests for supplies and services, when the request must be sent, what happens after an allocation is received, and how orders are issued and recorded. The section also addresses timing requirements, including the need to allow enough lead time for reply, ordering, and performance, and the duty to notify the central nonprofit agency if an order will be delayed more than 15 days or canceled. In practice, this section ensures the AbilityOne system can assign work to the designated nonprofit agency and that ordering offices provide enough detail and follow-through to support timely performance. It also makes clear that orders may be placed without dollar limitation, must be recorded as obligations when issued, and must include both the allocation-request information and any additional performance instructions needed for successful execution.
Key Rules
Use allocation when direct order is unavailable
If the direct order process has not been authorized, the ordering office must request an allocation from the central nonprofit agency designated in the Procurement List. The allocation request is the mechanism for identifying which AbilityOne participating nonprofit agency will produce the supplies or perform the service.
Allow enough lead time
Ordering offices must submit allocation requests early enough to permit a reply, placement of the order, and completion of production or performance within the required schedule. This is a planning requirement, not just a paperwork step, and it helps avoid delivery or performance delays.
Include required request details
The request must contain specific information depending on whether the requirement is for supplies or services. For supplies, the request must identify the item, stock number, latest specification, quantity, unit price, required delivery date, and destination; for services, it must identify the type and location of service, latest specification, work to be performed, estimated volume, and required completion date or dates.
Add other performance requirements
The request must also include other relevant requirements, such as packing and marking, when necessary. This ensures the central nonprofit agency has enough information to make an effective allocation and the nonprofit agency can perform to the Government’s needs.
Issue the order promptly after allocation
Once the allocation is received, the ordering office must promptly issue the order to the specified AbilityOne participating nonprofit agency or to the central nonprofit agency, as directed by the allocation. If issuance will be delayed more than 15 days beyond receipt of the allocation, or if the order is canceled, the central nonprofit agency must be notified immediately.
Record orders as obligations
Ordering offices may issue orders without dollar limitation, and each order must be recorded as an obligation when issued. The order must include at least the same information provided in the allocation request, plus any additional instructions needed for performance.
Responsibilities
Ordering Office
Submit a written allocation request when direct ordering is not authorized; provide complete supply or service details; send the request early enough to support timely reply, ordering, and performance; issue the order promptly after allocation; notify the central nonprofit agency immediately if issuance will be delayed more than 15 days or if the order is canceled; record the order as an obligation when issued; and include all required and additional performance instructions in the order.
Central Nonprofit Agency
Receive allocation requests, designate the AbilityOne participating nonprofit agency to perform the work, and issue the allocation instructions that tell the ordering office where to place the order.
AbilityOne Participating Nonprofit Agency
Perform the supply production or service work identified through the allocation and comply with the order and any additional instructions included by the ordering office.
Practical Implications
This section is mainly about planning and information quality: incomplete requests or late submissions can delay allocation, ordering, and performance.
The 15-day delay/cancellation notice is important operationally; failing to notify the central nonprofit agency can disrupt workload planning for the AbilityOne system.
Ordering offices should treat the allocation request as the foundation for the order, because the final order must contain at least the same information plus any extra performance instructions.
Because orders may be issued without dollar limitation, the key control is not a dollar threshold but proper process, documentation, and timely obligation recording.
Common pitfalls include missing specifications, unclear delivery or completion dates, failing to include packing/marking or government-furnished property instructions, and waiting too long after allocation to issue the order.
Official Regulatory Text
(a) When the direct order process has not been authorized, the ordering office shall submit a written request for allocation (requesting the designation of the AbilityOne participating nonprofit agency to produce the supplies or perform the service) to the central nonprofit agency designated in the Procurement List. Ordering offices shall request allocations in sufficient time for a reply, for orders to be placed, and for the nonprofit agency to produce the supplies or provide the service within the required delivery or performance schedule. (b) The ordering office’s request to the central nonprofit agency for allocation shall include the following information: (1) For supplies-Item name, stock number, latest specification, quantity, unit price, date delivery is required, and destination to which delivery is to be made. (2) For services-Type and location of service required, latest specification, work to be performed, estimated volume, and required date or dates for completion. (3) Other requirements; e.g., packing, marking, as necessary. (c) When an allocation is received, the ordering office shall promptly issue an order to the specified AbilityOne participating nonprofit agency or to the central nonprofit agency, as instructed by the allocation. If the issuance of an order is to be delayed for more than 15 days beyond receipt of the allocation, or canceled, the ordering office shall advise the central nonprofit agency immediately. (d) Ordering offices may issue orders without limitation as to dollar amount and shall record them upon issuance as obligations. Each order shall include, as a minimum, the information contained in the request for allocation. Ordering offices shall also include additional instructions necessary for performance under the order; e.g., on the handling of Government-furnished property, reports required, and notification of shipment.