FAR 8.706—Purchase exceptions.
Plain-English Summary
FAR 8.706 explains when an ordering office may buy items on the AbilityOne Procurement List from commercial sources instead of the nonprofit agencies designated to furnish them, and how that exception process works. It covers the basic rule that commercial purchases require a purchase exception, the two main grounds for a central nonprofit agency to grant an exception, the requirement that the exception state the quantity and delivery or performance period, the contracting officer’s follow-up duties after an exception is granted, and the separate authority of the Committee to grant exceptions whenever it deems appropriate. In practice, this section protects the priority system for AbilityOne purchases while allowing flexibility when nonprofit agencies cannot meet urgent timing needs or cannot produce the required quantity economically. It also creates a paper trail and timing controls so exceptions are limited to what is actually authorized. For contracting officers and ordering offices, the section is a compliance checkpoint before buying from commercial sources; for AbilityOne stakeholders, it is a safeguard against unnecessary bypass of the Procurement List.
Key Rules
Commercial buys need authorization
Ordering offices may buy supplies or services on the Procurement List from commercial sources only when a purchase exception has been specifically authorized by the designated central nonprofit agency. Without that exception, the Procurement List requirement remains controlling.
Two grounds for exception
The central nonprofit agency must promptly grant a purchase exception when the participating nonprofit agencies cannot meet the required time and commercial sources can deliver significantly sooner in the needed quantities, or when the required quantity cannot be produced or provided economically by the participating nonprofit agencies.
Exception must define scope
Any exception granted by the central nonprofit agency must specify the quantity covered and the delivery or performance period covered by the exception. This limits the exception to the exact need approved.
Contracting officer follow-up required
After an exception is granted, the contracting officer must initiate purchase action within 15 days of the exception date, or within any extension granted by the central nonprofit agency. The contracting officer must also provide a copy of the solicitation to the central nonprofit agency when it is issued.
Committee may grant exceptions
The Committee has separate authority to grant a purchase exception under any circumstances it considers appropriate. This is broader discretionary authority than the central nonprofit agency’s mandatory-grant situations.
Responsibilities
Ordering Offices
May acquire Procurement List items from commercial sources only when a valid purchase exception has been specifically authorized. They must not bypass the AbilityOne process without the required approval.
Designated Central Nonprofit Agency
Must promptly grant purchase exceptions when the stated timing or economic-production conditions are met. It must also define the quantity and delivery or performance period covered by the exception and may grant extensions as appropriate.
Contracting Officer
Must initiate purchase action within 15 days after the exception date or any approved extension, and must provide the solicitation to the central nonprofit agency when issued. The contracting officer must ensure the commercial acquisition stays within the scope of the exception.
Committee
May grant a purchase exception whenever it considers appropriate, using its broader discretionary authority to approve exceptions outside the central nonprofit agency’s mandatory-grant situations.
AbilityOne Participating Nonprofit Agencies
Must be considered as the priority source for Procurement List items; their inability to meet timing or economic production needs is the basis for an exception, but they do not themselves grant the exception under this section.
Practical Implications
This section is a gatekeeper for buying Procurement List items from commercial sources, so the first question is always whether a valid exception exists before any solicitation or award proceeds.
The exception is not open-ended; it is limited to the quantity and time period stated, so buying more than authorized or outside the approved period can create compliance problems.
The 15-day initiation deadline is easy to miss, especially when market research or internal approvals take time, so contracting officers should track the exception date carefully.
Providing the solicitation to the central nonprofit agency is not optional; it helps maintain transparency and allows oversight of the commercial purchase.
A common pitfall is assuming urgency alone is enough. The exception must be specifically authorized, and the file should show the basis for the exception and the scope approved.
Official Regulatory Text
(a) Ordering offices may acquire supplies or services on the Procurement List from commercial sources only if the acquisition is specifically authorized in a purchase exception granted by the designated central nonprofit agency. (b) The central nonprofit agency shall promptly grant purchase exceptions when- (1) The AbilityOne participating nonprofit agencies cannot provide the supplies or services within the time required, and commercial sources can provide them significantly sooner in the quantities required; or (2) The quantity required cannot be produced or provided economically by the AbilityOne participating nonprofit agencies. (c) The central nonprofit agency granting the exception shall specify the quantity and delivery or performance period covered by the exception. (d) When a purchase exception is granted, the contracting officer shall- (1) Initiate purchase action within 15 days following the date of the exception or any extension granted by the central nonprofit agency; and (2) Provide a copy of the solicitation to the central nonprofit agency when it is issued. (e) The Committee may also grant a purchase exception, under any circumstances it considers appropriate.