17.502-2  The Economy Act.

4.  Amend section 17.502-2 by--

a.  Revising paragraphs (a) and (c);

b.  Removing paragraph (d);

c.  Redesignating paragraph (e) as paragraph (d); and

d.  Revising the newly redesignated paragraph (d)(4) to read as follows:

17.502-2  The Economy Act.

(a)  The Economy Act (31 U.S.C. 1535) authorizes agencies to enter into agreements to obtain supplies or services from another agency. The FAR applies when one agency uses another agency's contract to obtain supplies or services. If the interagency business transaction does not result in a contract or an order, then the FAR does not apply. The Economy Act also provides authority for placement of orders between major organizational units within an agency; procedures for such intra-agency transactions are addressed in agency regulations.

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(c)  Requirements for determinations and findings.

(1)  Each Economy Act order to obtain supplies or services by interagency acquisition shall be supported by a determination and findings (D&F). The D&F shall--

(i)  State that use of an interagency acquisition is in the best interest of the Government;

(ii)  State that the supplies or services cannot be obtained as conveniently or economically by contracting directly with a private source; and

(iii)  Include a statement that at least one of the following circumstances applies:

(A)  The acquisition will appropriately be made under an existing contract of the servicing agency, entered into before placement of the order, to meet the requirements of the servicing agency for the same or similar supplies or services.

(B)  The servicing agency has the capability or expertise to enter into a contract for such supplies or services that is not available within the requesting agency.

(C)  The servicing agency is specifically authorized by law or regulation to purchase such supplies or services on behalf of other agencies.

(2)  The D&F shall be approved by a contracting officer of the requesting agency with authority to contract for the supplies or services to be ordered, or by another official designated by the agency head, except that, if the servicing agency is not covered by the FAR, approval of the D&F may not be delegated below the senior procurement executive of the requesting agency.

(3)  The requesting agency shall furnish a copy of the D&F to the servicing agency with the request for order.

(d) * * *

(4)  In no event shall the servicing agency require, or the requesting agency pay, any fee or charge in excess of the actual cost (or estimated cost if the actual cost is not known) of entering into and administering the contract or other agreement under which the order is filled.