FAR Part 51

Question 1

Part 51

Answer 1

Use of Government Sources by Contractors

Question 2

Part 51 - Use of Government Sources by Contractors

Overview of FAR Part 51 - Use of Government Sources by Contractors

• Purpose: Establishes policies and procedures for the use of government supply sources and interagency fleet management system (IFMS) vehicles by contractors (FAR 51.000).
• Key Sections:

Answer 2

• 51.1 Contractor Use of Government Supply Sources
• 51.2 Contractor Use of Interagency Fleet Management System (IFMS) Vehicles

Question 3

Part 51 - Use of Government Sources by Contractors

Subpart 51.1 - Contractor Use of Government Supply Sources

• Purpose: Provides guidelines for contractors to use government supply sources (FAR 51.101).
• Key Features:

Answer 3

• Criteria for authorizing contractor use of government supply sources (FAR 51.102).
• Procedures for purchasing from government supply sources (FAR 51.103).

Question 4

Part 51 - Use of Government Sources by Contractors

Subpart 51.2 - Contractor Use of Interagency Fleet Management System (IFMS) Vehicles

• Purpose: Establishes policies for contractors to use IFMS vehicles (FAR 51.201).
• Key Features:

Answer 4

• Criteria for authorizing contractor use of IFMS vehicles (FAR 51.202).
• Procedures for managing and using IFMS vehicles (FAR 51.203).

Question 5

Subpart 51.1:
* Contractor use of Government Supply Sources

Answer 5

Subpart 51.2:
* Contractor use of Interagency Fleet Management System (IFMS) Vehicle

Question 6

SUBPART 51.105
Payment for Shipments

Answer 6

Receipt of billing is sufficient evidence to establish contractor liability and t o provide a
basis for payment

Question 7

SUBPART 51.106
Title

Answer 7

Title to all property acquired by t h e contractor u n d e r t h e contracting officer’s authorization shall vest in t h e
parties.

Question 8

The government at times may find it in its best interest to grant access to its supply system and vehicles management system. This part prescribes

Answer 8

policies and procedures for the use by contractors of government supply sources and interagency fleet management systems (IFMS) vehicles and related services.

Question 9

FAR 51.101 describes the policy used by the government should contractor use of government supply sources be advantageous.

This authorization applies to subcontractors when delegated by the prime as well. It presents three instances where contracting officers may authorize contractors to use these sources:

Answer 9

1. government cost reimbursement contracts;
2. other types of negotiated contracts when the agency determines that a substantial dollar portion of the contractor’s contracts are of a government cost reimbursement nature; or
3. a contract under 41 U.S.C Chapter 85 Committee for the Purchase from People Who Are Blind or Severely Disabled provided that the nonprofit agency is providing a commodity or serviceto the federal government and the supplies or services received are directly used in making providing a commodity or service approved by the committee for the purchase from the Committee for the Purchase from People Who Are Blind or Severely Disabled, to the government.

Question 10

FAR 51.102 requires the contracting officer to place in the contract file a determination and finding supporting the issuance of the authorization; except when the authorization is to acquires supplies or services from Committee for the Purchase from People Who Are Blind or Severely Disabled. The determination shall be based on, but not limited to, considerations of the following factors:

Answer 10

1. the administrative cost of placing orders with government supply sources and the program impact of delay factors, if any.
2. the lower cost of items available through government supplies sources.
3. suitability of items
   available through
   government supply sources.
4. delivery factors such as cost and time.
5. recommendations of the contractor.

Question 11

When and where appropriate the contracting officer shall request, in writing, from

Answer 11

the GSA, VA, Department of Interior, or the appropriate agency for access and approval for the contractor to use the government supply source. (FAR 51.102 (c)(1-5)).

FAR 51.104 requires that the contracting officer worked with the aforementioned agencies and the contract for in submitting the appropriate requisitions.

Question 12

FAR 51.105 and 51.106 address the process for payments for shipments and title.

Answer 12

Payments by the contractor will not occur until after receipt of billing and billing will not occur until after the supplies have been shipped.

Receipt of billing is sufficient evidence to establish contractor liability provide a basis for payment. Contracting officers should direct the.contractors to make payments properly upon receipt of billing.

Question 13

Property acquired by the contractor under the contracting officer’s authorization shall vest

Answer 13

as provided in the contract unless specifically provided otherwise. Special provisions are made for educational institutions.

Question 14

B. CONTRACTOR USE OF INTRA-AGENCY FLEET MANAGEMENT SYSTEM (IFMS)
VEHICLES (FAR 51.2)

At times it may be in the government’s interest to authorize contractor use of the Interagency Fleet Management System. In subpart 51.2 it addresses the policies and procedures for use by contractors. It also extends to subcontractors when authorized.

The services include

Answer 14

1. fuel and lubricants;
2. vehicle inspection, maintenance, and repair;
3. vehicle storage; and
4. commercially rented vehicles for short-term

Question 15

Major repairs such as

Answer 15

complete rebuilding of major components of contractor-owned or -leased equipment requires the approval of the contracting officer in each instance. (FAR 51.201(b))

Question 16

The use of IFMS vehicles and related services shall not be authorized

Answer 16

or any other contract except cost-reimbursement contracts, except when specifically approved by the Administrator of the General Services Administration. (FAR 51.201(c))

Question 17

The contracting officer may authorize use of IFMS vehicles (FAR 51.202) by cost-reimbursable contractors when they have:

Answer 17

1. determined that the authorization will accomplish the agency’s contractual obligation and effect demonstrable economies;
2. received evidence that the contractor has obtained a motor vehicle liability insurance covering bodily injury and property damage, with limits of liability is required or approved by the agency, protecting the contractor and the government against third-party claims arising from ownership, maintenance, or the use of and intra-agency fleet management system vehicle (IFMS);
3. arranged for periodic checks to ensure that authorize contractors are using vehicles and related services exclusively cost-reimbursement contracts;
4. ensured that contractor shall establish and enforce suitable penalties for their employees use authorize the use of government other than performance government contracts;
5. received a written statement that the contractor will assume, without rate of reimbursement from the government, cost or expense of any use intra-agency fleet management vehicles and services (IFMS) not related to contract; and
6. consider any recommendations
   of the contractor.

Question 18

FAR 51.202d) reminds contracting officers that their authorization of IEMS vehicles subjects their agency to

Answer 18

responsibilities and liabilities regarding accidents and claims.