FAR 8.707—Prices.
Plain-English Summary
FAR 8.707 explains how prices are set and changed for items on the AbilityOne Procurement List, and how those prices apply to orders placed by federal agencies. It covers the Committee’s authority to establish fair market prices, the fact that supply prices are f.o.b. origin, the normal schedule for adjusting prices for supplies and services, the Committee’s ability to seek agency assistance or act without prior coordination, the effective date of price changes, special treatment for price changes in unusual cases, reimbursement for nonstandard packing/packaging/marking, and the ability of ordering offices to recommend price revisions. In practice, this section is the pricing framework that governs what agencies pay for AbilityOne supplies and services and when those prices change. It matters because contracting officers and ordering offices must use the Committee-established price, not negotiate their own price, and must understand when additional charges are allowable. It also gives agencies a formal channel to raise pricing concerns while preserving the Committee’s central role in setting fair market prices.
Key Rules
Committee Sets Fair Market Prices
Prices for Procurement List items are fair market prices established by the Committee. Agencies and contracting officers do not independently set these prices for AbilityOne purchases under this subpart.
Supply Prices Are F.O.B. Origin
All prices for supplies ordered under this subpart are f.o.b. origin. That means the pricing structure assumes shipment from the nonprofit agency’s point of origin, and transportation-related responsibilities follow that basis unless otherwise addressed by the contract or order terms.
Normal Price Adjustment Cycles
Prices for supplies are normally adjusted semiannually, while prices for services are normally adjusted annually. This creates a recurring review cycle so prices stay aligned with current market conditions and program requirements.
Committee May Seek Agency Input
The Committee may ask the responsible acquiring agency to help establish or revise a fair market price. However, the Committee may also set prices without prior coordination with the responsible contracting office.
Price Changes Apply by Effective Date
Price changes normally apply to all orders received by the AbilityOne participating nonprofit agency on or after the effective date of the change. In special cases, the Committee may make the change apply to earlier orders after considering the ordering office’s views.
Extra Packing Costs Are Reimbursable
If an ordering office wants packing, packaging, or marking other than the standard pack on the Procurement List, any added cost must be shown separately on the nonprofit agency’s invoice and reimbursed by the ordering office.
Ordering Offices May Recommend Revisions
Ordering offices may recommend price revisions to the Committee at any time for supplies and services on the Procurement List. This gives agencies a formal way to request review when they believe a price should change.
Responsibilities
Committee
Establish and revise fair market prices for Procurement List items, determine when price changes take effect, decide whether special cases justify retroactive application, and may request agency assistance in pricing decisions.
Ordering Office / Contracting Officer
Use the Committee-established price, consider and provide views when the Committee seeks input on special pricing cases, reimburse approved extra costs for nonstandard packing/packaging/marking, and submit price revision recommendations when appropriate.
Responsible Agency Acquiring the Supplies or Services
Assist the Committee when requested in establishing or revising fair market prices and provide relevant acquisition or market information as needed.
AbilityOne Participating Nonprofit Agency
Apply the correct price based on the effective date of the Committee’s change, invoice separately for any approved extra packing/packaging/marking costs, and receive orders under the applicable pricing rules.
Practical Implications
Contracting officers should not treat AbilityOne pricing like a normal negotiated procurement price; the Committee controls the fair market price, so the order must follow the established schedule and effective date.
Watch the effective date closely. A price change usually applies only to orders received on or after that date, but special cases can create exceptions that affect earlier orders.
If an agency wants nonstandard packing, packaging, or marking, that is not included in the base price unless the Procurement List says otherwise; the extra cost must be separately identified and paid.
Agencies should use the formal recommendation process if they believe a price is outdated or incorrect, rather than trying to renegotiate directly with the nonprofit agency.
Because the Committee can set prices without prior coordination with the contracting office, agencies need to monitor Committee actions and updates to avoid using stale pricing or issuing orders under the wrong rate.
Official Regulatory Text
(a) The prices of items on the Procurement List are fair market prices established by the Committee. All prices for supplies ordered under this subpart are f.o.b. origin. (b) Prices for supplies are normally adjusted semiannually. Prices for services are normally adjusted annually. (c) The Committee may request the agency responsible for acquiring the supplies or service to assist it in establishing or revising the fair market price. The Committee has the authority to establish prices without prior coordination with the responsible contracting office. (d) Price changes shall normally apply to all orders received by the AbilityOne participating nonprofit agency on or after the effective date of the change. In special cases, after considering the views of the ordering office, the Committee may make price changes applicable to orders received by the AbilityOne participating nonprofit agency prior to the effective date of the change. (e) If an ordering office desires packing, packaging, or marking of supplies other than the standard pack as provided on the Procurement List, any difference in costs shall be included as a separate item on the nonprofit agency’s invoice. The ordering office shall reimburse the nonprofit agency for these costs. (f) Ordering offices may make recommendations to the Committee at any time for price revisions for supplies and services on the Procurement List.