Description and Requirements. The Economy Act of 1932, as amended, 31 U.S.C. § 1535, permits Federal Government agencies to purchase goods or services from other Federal Government agencies or other major organizational units within the same agency. An Economy Act purchase is permitted only if: (1) amounts for the purchase are actually available, (2) the purchase is in the best interest of the Government, (3) the ordered goods or services cannot be provided by contract from a commercial enterprise, i.e., the private sector, as conveniently or cheaply as could be by the Government, and (4) the agency or unit to fill the order is able to provide or get by contract the ordered goods or services. The Federal Acquisition Regulations (FAR), 48 CFR 17.5 provides further requirements for Economy Act agreements. The FAR provides that an order cannot be placed under the Economy Act if a more specific statutory authority exists. Purchases pursuant to the Economy Act are not exempt from the requirements of 48 CFR 7.3, “Contractor Versus Government Performance.” Thus, OMB Circular A-76 applies to Economy Act agreements. Economy Act agreement must achieve full cost recovery, and there is no law permits a waiver of this full cost recovery requirement. Full cost recovery includes direct and indirect costs. Further, the Economy Act does not allow a Federal agency or unit to receive a profit when providing goods or services. The FAR states that Economy Act orders must include (1) a description of the supplies or services required; (2) delivery requirements; (3) a funds citation; (4) a payment provision ; and
Appears in 2 contracts
Sources: Economy Act Agreement, Economy Act Agreement