The landscape surrounding procurement from FPI began to change in 2002, when Congress passed Section 811 of the National Defense Authorization Act for FY 2002. This provision was quickly amended by Section 819 of the National Defense Authorization Act for FY 2003. Together, the two provisions are commonly referred to as Section 811/819 and are codified at 10 U.S.C. § 2410n. The provisions of Section 811/819 require agencies of the Department of Defense to conduct a two step procurement process when purchasing a product listed in FPI’s Schedule of Products.
First, the agency must conduct market research to determine whether an FPI product is the comparable to products available from the private sector on the basis of price, quality and delivery.
If FPI’s product is not comparable, then the agency must utilize competitive procedures and solicit an offer from FPI. If FPI’s product is comparable, however, then the mandatory source provisions of 18 U.S.C. § 4124 apply. Regulations implementing this section were approved by the Federal Acquisition Regulation (FAR) Council on November 14, 2003, and are published in the DFARS Part 208 (68 FR 64559-61). These regulations, as well as actions taken by the FPI Board of Directors, are intended to provide guidance and interpretation to contracting officials purchasing items from FPI, and do not supercede the procedures passed by Congress.
- Click here to see the text of Section 811/819
- Click here to review the DFARS implementing Section 811/819
Passage of the Consolidated Spending Bill for FY 2004, P.L. 108-199, altered
the process by which civilian agencies purchase products from FPI. Section 637
of that bill requires civilian agencies to determine whether an FPI product
or service offers the best value to the procuring agency, in accordance with
the same procedures, standards, and limitations of 10 U.S.C. § 2410n and
the resulting procurement regulations (68 FR 64559), Section 637. Thus, the
two-step process created for defense agencies through Section 811/819, has been
extended to civilian agencies.
As such, Section 637, like 10 U.S.C. § 2410n, requires the civilian agency
to conduct market research to determine whether an FPI product is comparable
to products available from the private sector on the basis of price, quality
and delivery. If FPI’s product is not comparable, then the agency must
utilize competitive procedures and solicit an offer from FPI. If FPI’s
product is comparable, however, then the mandatory source provisions of 18 U.S.C.
§ 4124 apply. The interim rule implementing Section 637 became effective
March 26, 2004, and modified FAR 8.6 at 69 Federal Register 16148. It applied
to civilian agency FY 2004 purchases.
The passage fo the Consolidated Appropriations Bill, H.R. 4818, into law December 8, 2004 (Consolidated Appropriations Act, 2005) extends to civilian agencies, on a permanent basis, the purchasing provisions detailed in Section 637 of the former Omnibus Bill.
These regulations, as well as actions taken by the FPI Board of Directors, are intended to provide guidance and interpretation to contracting officers purchasing items from FPI, and do not supercede the procedures passed by Congress.
- Click here to see the text of Section 637; Consolidated Appropriations Act, 2005
- Click here to see the text of Section 637; Omnibus Bill, 2004
- Click here to see FAR 8.6
NEW! PURCHASING FROM FPI MADE SIMPLE Brochure
Click here to view a quick reference brochure, including a chart in “decision-tree” format, which graphically details procedures mandated by the laws and regulations summarized, above.
- Click here to download
a copy of the UNICOR Purchasing Redefined brochure.
- Click here to request one or several copies of A Government Program that WORKS!, by mail.
- Click here to access the comprehensive Index of FPI purchasing procedures and
related information, by topic
