41 C.F.R. Subpart 101–26.1—General
Title 41 - Public Contracts and Property Management
This subpart provides policy guidance of a general nature concerning procurement of lowest cost items obtainable from GSA supply sources; availability from GSA of special buying services in addition to the specified GSA procurement sources; criteria for placing end-of-year purchase documents with GSA and for insuring that end-of-year requisitions placed with GSA obligate the applicable fiscal year appropriation; and justification requirements to support negotiated procurement by GSA for other agencies. [36 FR 17423, Aug. 31, 1971] GSA provides lines of similar items to meet particular end-use requirements under the GSA stock program, special order program (SOP) established source, and the Federal Supply Schedule program. Although these similar items may differ in terms of price, quality, and essential characteristics, they often can serve the same functional end-use procurement needs of the various ordering agencies. Therefore, in submitting requisitions or placing delivery orders for similar items obtainable from GSA sources, agencies shall utilize the source from which the lowest cost item can be obtained which will adequately serve the functional end-use purpose. [56 FR 12455, Mar. 26, 1991] Waiver requests, when required by §101–26.102–1 (special order program established source items), §101–26.301 (GSA stock items) or §101–26.401–3(b) (Federal Supply Schedule items), shall be submitted to the Commissioner, Federal Supply Service (F), General Services Administration, Washington, DC 20406. Waiver requests will be approved if considered justified. Approval of a waiver request does not constitute authority for a sole source procurement. Depending on the basis for the waiver request, each request shall contain the following information: (a) Waiver requests based on determination that the GSA item is not of the requisite quality or will not serve the required functional end-use purpose of the agency requesting the waiver shall include the following information with each request: (1) A complete description of the type of item needed to satisfy the requirement. Descriptive literature such as cuts, illustrations, drawings, and brochures which show the characteristics or construction of the type of item or an explanation of the operation should be furnished whenever possible. (2) The item description and the stock number (NSN if possible) of the GSA item being compared. Inadequacies of the GSA items in performing the required functions. (3) The quantity required. (If demand is recurrent, nonrecurrent, or unpredictable, so state.) (4) The name and telephone number of the person to be contacted when questions arise concerning the request. (5) Other pertinent data, when applicable. (b) Waiver request based on determination that the GSA item can be purchased locally at a lower price shall include the following information with each request. However, the price alone of an item without other substantive consideration will not be considered sufficient justification to approve a waiver request. (1) A complete description of the type of item needed to satisfy the requirement. (2) The quantity required. (If demand is recurrent, nonrecurrent, or unpredictable, so state.) (3) The destination of item to be delivered. (4) The name and address of source. (5) A price comparison with the GSA item, including the NSN of the GSA item. Cost comparisons shall include the agency administrative cost to effect the local purchase. (6) The name and telephone number of the person to be contacted when questions arise concerning the request. (7) Other pertinent data, when applicable. (c) When the item is a Standard or optional form available from GSA stock, the provisions of §101–26.302 apply. (d) Agencies shall not initiate action to procure similar items from non-GSA sources until a request for a waiver has been requested from and approved by GSA. The fact that action to procure a similar item has been initiated will not influence GSA action on a request for waiver. (e) Waivers are not required for items or services procured in accordance with the policy set forth in §101–26.100–1 relating to the acquisition of the lowest cost item from GSA sources, §101–26.401–4(f) relating to the purchase of products that are available at prices lower than the prices of identical products provided by multiple award Federal Supply Schedule contracts, or when an urgent requirement exists in accordance with FAR 6.302–2 (48 CFR 6.302–2). [56 FR 12455, Mar. 26, 1991] Through its procurement sources and programs GSA provides for certain types of items and services which are covered by warranties. Such warranties allow ordering activities additional time after acceptance within which to assert a right to correct certain deficiencies in supplies or services furnished. The additional time period and the specific corrective actions for which the contractor is responsible are usually stated in the warranty. Items and services subject to warranties are normally identified by a warranty marking or notice. Such marking or notice will state that a warranty exists, its extent of coverage, its duration, and whom to notify concerning defects. Using activities shall take the following actions when items or services (except for automotive vehicles and components which are subject to the provisions of §101–26.501–6) covered by warranty provisions are found to be defective during the warranty period. (a) Activities shall attempt to resolve all complaints where a warranty is involved. If the contractor replaces the item or corrects the deficiency, a Standard Form (SF) 368, Product Quality Deficiency Report, in duplicate, shall be sent to the GSA Discrepancy Reports Center (6FR), 1500 East Bannister Road, Kansas City, MO 64131–3088. The resolution of the case should be clearly stated in the text of the SF 368. This information will be maintained as a quality history file for use in future procurements. (b) If the contractor refuses to correct, or fails to replace, a defective item or an aspect of service under the warranty, an SF 368, in duplicate, along with copies of all pertinent correspondence, shall be submitted to the contracting officer in the appropriate GSA commodity center for necessary action. The address of the contracting officer is contained in the contract/purchase order, except for schedule items where the address is shown in the Federal Supply Schedule. [56 FR 12456, Mar. 26, 1991] To the fullest extent practicable, agencies shall utilize inventories in long supply, as prescribed in subpart 101–27.3, and excess personal property, as prescribed in part 101–43, as a first source of supply in fulfilling their requirements. [34 FR 200, Jan. 7, 1969]
Title 41: Public Contracts and Property Management
PART 101–26—PROCUREMENT SOURCES AND PROGRAM
Subpart 101–26.1—General
§ 101-26.100 Scope of subpart.
§ 101-26.100-1 Procurement of lowest cost items.
§ 101-26.100-2 Request for waivers.
§ 101-26.100-3 Warranties.
§ 101-26.101 Utilization of long supply and excess personal property.
§ 101-26.102 Special buying services.
§ 101-26.102-1 General.
The special buying services of GSA are performed through the GSA special order program (SOP). The SOP allows an agency to obtain items not included in either the GSA stock or Federal Supply Schedule program. All executive agencies within the United States (including Hawaii and Alaska), in order to maximize the use of the Government's centralized supply system, shall request SOP items by submitting requisitions for GSA centrally managed items to GSA. GSA will process all requisitions for SOP items, regardless of total line item value, from activities electing to purchase from GSA. If an agency determines that alternative sources are more favorable, procurement from other sources is authorized: Provided, that the dollar thresholds and criteria outlined in §101–26.301(b)(1) through (3) are followed.
[56 FR 12456, Mar. 26, 1991]
§ 101-26.102-2 Utilization by military agencies.
Military activities shall utilize the buying services of GSA when:
(a) GSA has agreed with the Secretary of Defense, or with the Secretary of a military department in connection with the requirements of that department, to perform such buying services; and
(b) The items involved are not properly obtainable from GSA stock or Federal Supply Schedules.
[29 FR 15610, Nov. 20, 1964, as amended at 36 FR 17423, Aug. 31, 1971]
§ 101-26.102-3 Procurement leadtime.
When GSA performs the purchasing services for other agencies or activities as contemplated by this §101–26.102–3, calculation of the delivery dates required for the items involved must be based on the procurement leadtimes illustrated in the GSA publication, FEDSTRIP Operating Guide. These leadtimes are based on the normal time required after receipt of agency requisitions by GSA to effect delivery to destinations within the 50 States.
(a) Time required to obtain any additional essential information from the requisitioning office for use in issuing a solicitation for bids or offers is not included in the leadtimes.
(b) If unusually large quantities or complex items are required, leadtime adjustments should be made to reflect the specific requirement. As an example, standard furniture items can usually be delivered in less than 90 days after receipt of the requisition. However, for large quantity or complex orders requiring a definite quantity procurement, delivery times may range from 4 to 6 months. Footnotes relating to classes where this is a frequent occurrence are shown in the procurement leadtime table illustrated in the FEDSTRIP Operating Guide.
(c) The procurement leadtime table illustrated in the FEDSTRIP Operating Guide does not apply to public exigency or other high priority requisitions; however, it should be used as a guide to establish realistic required delivery dates for such requisitions.
[32 FR 17939, Dec. 15, 1967, as amended at 40 FR 41093, Sept. 5, 1975; 57 FR 3949, Feb. 3, 1992]
§ 101-26.102-4 Payment to GSA contractors.
Policies and procedures covering payment to GSA contractors for supplies and services furnished by GSA to Government agencies are in subpart 101–2.1.
[47 FR 8779, Mar. 2, 1982]
§ 101-26.103 Establishing essentiality of requirements.
§ 101-26.103-1 Policy for personal property.
To obtain maximum benefit from Government funds available for procurement of personal property, each executive agency shall:
(a) Insure that personal property currently on hand is being utilized to the fullest extent practical and provide supporting justification prior to effecting new procurement for similar type property. (When the proposed procurement is for similar items from non-GSA sources, the provisions of §101–26.100–2 apply.)
(b) Procure the minimum quantity and quality of property which is required to support the mission of the agency and to satisfy the function for which the property is required.
(c) Limit procurement of different varieties, types, sizes, colors, etc., of required items to those essential in satisfying the functional end-use purpose. To this end the quantity, quality, and variety of personal property required to adequately perform the end-use function should be determined prior to initiation of procurement processes.
[36 FR 17423, Aug. 31, 1971]
§ 101-26.103-2 Restriction on personal convenience items.
Government funds may be expended for pictures, objects of art, plants, or flowers (both artificial and real), or any other similar type items when such items are included in a plan for the decoration of Federal buildings approved by the agency responsible for the design and construction. Determinations as to the need for purchasing such items for use in space assigned to any agency are judgments reserved to the agency. Determinations with respect to public space such as corridors and lobbies are reserved to the agency responsible for operation of the building. Except as otherwise authorized by law, Government funds shall not be expended for pictures, objects of art, plants, flowers (both artificial and real), or any other similar type items intended solely for the personal convenience or to satisfy the personal desire of an official or employee. These items fall into the category of “luxury items” since they do not contribute to the fulfillment of missions normally assigned to Federal agencies.
[36 FR 17423, Aug. 31, 1971]
§ 101-26.104 End-of-year submission of requisitions for action by GSA.
(a) Purchase documents for supplies or services submitted to GSA at or near the close of a fiscal year shall reflect actual agency requirements and shall not be used as a means of exhausting appropriation balances.
(b) Under the FEDSTRIP/MILSTRIP systems, the requisitions submitted to GSA are not required to reflect the applicable appropriation or fiscal year funds to be charged. The fund code entry on the requisition simply indicates to the supply source (GSA) that funds are available to pay the charge, thereby providing authority for the release of material and subsequent billing. Requisitions received by GSA in purchase authority format are normally converted to FEDSTRIP/MILSTRIP documentation so that processing can be accomplished expeditiously through a uniform system based on the use of automated equipment. Accordingly, primary responsibility rests with the ordering activity for ensuring that requisitions intended to be chargeable to appropriations expiring the last day of the fiscal year are submitted in sufficient time for GSA to consummate the necessary action before the end of the fiscal year. Requisitions submitted on or before the last day of the fiscal year may be chargeable to appropriations expiring on that date provided the ordering agency is required by law or GSA regulation to use GSA supply sources. When the ordering agency is not required to use GSA sources, requisitions for GSA stock items may be recorded as obligations provided the items are intended to meet a bona fide need of the fiscal year in which the need arises or to replace stock used in that fiscal year; requests for other than GSA stock items are to be recorded as obligations at the time GSA awards a contract for the required items. In the latter case, GSA procurement leadtimes illustrated in the GSA publication, FEDSTRIP Operating Guide, should be used as a guide for timely submission of these requisitions. The leadtimes referred to relate to the number of days between submission of a requisition and actual delivery of the items involved. While this may furnish some guidance to requisitioners, there is no direct relationship between those leadtimes and the time it takes for GSA to make an award of a contract.
(c) End-of-year submission of requisitions which require GSA to award a contract not later than the last day of the fiscal year in order to obligate the appropriation or funds of the ordering agency will be annotated to indicate that GSA procurement of the requested items must be accomplished not later than the last day of the fiscal year in which the requisitions are submitted. For example, a FEDSTRIP/MILSTRIP requisition should be prepared to include Document Identifier Code A0E or A05 and reflect the annotation in the “Remarks” block. With this information GSA will attempt to complete procurement action before the end of the fiscal year. When a requistion is received too late to permit GSA to complete procurement action before the end of the fiscal year, the requisitioning activity will be so notified and requested to furnish instructions regarding the action to be taken. Based on these instructions, procurement action will be taken or the requisition will be canceled and returned to the ordering activity.
[33 FR 19013, Dec. 20, 1968, as amended at 40 FR 41093, Sept. 5, 1975; 57 FR 3949, Feb. 3, 1992]
§ 101-26.105 Justification to support negotiated procurement by GSA for other agencies.
When a requisition submitted by an agency to GSA requires procurement without providing for full and open competition, the agency submitting the requisition will be so notified and required to furnish specific information to assist GSA in preparing the required written justification. The GSA contracting officer will defer procurement action pending receipt of the requested information. If the requisitioning agency has prior knowledge that a requisition will require procurement without providing for full and open competition (e.g., sole source acquisition), sufficient information shall be included with the requisition to allow GSA to justify the procurement. Specifically, the information must include the following:
(a) The specific needs to be satisfied in terms of identified tasks or work processes;
(b) The requirements that generate the specific needs;
(c) The characteristics of the designated item that enable it to satisfy the specific needs, if a specific source(s) is requested;
(d) The identification of other items evaluated and, for each, a statement of the characteristics (or lack thereof) which preclude their satisfying the specific needs, if a specific source(s) is requested;
(e) The citation of the applicable law, if any, authorizing other than full and open competition (see FAR 6.302 (48 CFR 6.302); and
(f) Any required certifications, pursuant to FAR 6.303–2(b) (48 CFR 6.303–2(b)), that supporting data is complete and accurate.
[56 FR 12456, Mar. 26, 1991]
§ 101-26.106 Consolidation of requirements.
Full consideration shall be given to the consolidation of individual small volume requirements to enable the Government to benefit from lower prices normally obtainable through definite quantity contracts for larger volume procurements. This policy pertains to procurement from commercial sources either directly or through an intermediary agency and does not apply to GSA stock items or small volume requirements normally obtained from GSA customer supply centers. When it is practical, each agency shall establish procedures that will permit planned requirements consolidation on an agencywide basis. When it is impractical to plan requirements on an agencywide consolidated basis, the requirements consolidation effort may be limited to a bureau, to other agency segments, or to a program, if such limited consolidation will provide significant price advantages when procurement is effected on a volume basis. Requisitions for item requirements exceeding maximum order limitations in Federal Supply Schedule contracts shall be submitted to GSA in accordance with the applicable instructions in the respective schedules. Special buying services desired by agencies for procurement of other consolidated item requirements shall be requested from GSA in accordance with §101–26.102.
[51 FR 13498, Apr. 21, 1986]
§ 101-26.107 Priorities for use of supply sources.
(a) Executive agencies shall satisfy requirements for supplies and services from or through the sources and publications listed below in descending order of priority:
(1) Supplies. (i) Agency inventories;
(ii) Excess for other agencies (see part 101–43 and 48 CFR subpart 8.1);
(iii) Federal Prison Industries, Inc. (UNICOR) (see §101–26.702 and 48 CFR subpart 8.6);
(iv) Procurement lists of products available from the Committee for Purchase From People Who Are Blind or Severely Disabled (see §101.26.701 and 48 CFR subpart 8.7);
(v) Central supply sources, such as the stock, special order, or customer supply center programs of the General Services Administration (GSA) (see subpart 101–26.3, §101–26.102, and subpart 101–28.3), the Defense Logistics Agency (see subpart 101–26.6), the Department of Veterans Affairs (see §101–26.704), and military inventory control points (see §101–26.606);
(vi) Mandatory Federal Supply Schedules (see subpart 101–26.4 and 48 CFR subpart 8.4);
(vii) Optional use Federal Supply Schedules (see subpart 101–26.4 and 48 CFR subpart 8.4); and
(viii) Commercial sources (including educational and nonprofit institutions).
(2) Services. (i) Procurement lists of services available from the Committee for Purchase From People Who Are Blind or Severely Disabled (see §101–26.701 and 48 CFR subpart 8.7);
(ii) Mandatory Federal Supply Schedules (see subpart 101–26.4 and 48 CFR subpart 8.4);
(iii) Optional use Federal Supply Schedules (see subpart 101–26.4 and 48 CFR subpart 8.4); and
(iv) Federal Prison Industries, Inc. (UNICOR) (see §101–26.702 and 48 CFR subpart 8.6) or other commercial sources (including educational and nonprofit institutions).
(b) Sources other than those listed in paragraph (a) of this section may be used as prescribed in §101–26.301 and in an unusual and compelling urgency as prescribed in §101–25.101–5 and 48 CFR 6.302–2.
[58 FR 41367, Aug. 5, 1993]
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