2024: The FAR, Federal Acquisition Regulations - Part 17

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THE FAR
THE FAR – PART 17

2024 Webinar Series
THE FAR
FAR PART #17:
Special Contracting Methods
SPEAKER: Isaias “Cy” Alba
FIRM: Piliero Mazza
EMAIL: ialba@pilieromazza.com

Overview
⮚ Key Aspects
⮚ Part 17: Contracting Methods

FAR Part 17: Key Aspects
⮚ FAR Part 17 details “policies and procedures for the acquisition of supplies and services through
special contracting methods, including (a) multi-year contracting; (b) options; and (c) leader company
contracting,” in addition to others
⮚ FAR Part 17 can tell contractors more about unique contracting methods and special rules that apply
⮚ The more niche FAR Part 17 rules largely apply to contractors involved in special missions with the
government, interagency work, or the leader company contracting program

Contracting Methods Overview
⮚ FAR 17.1: Multi-year Contracting
⮚ FAR 17.2: Options
⮚ FAR 17.4: Leader Company Contracting
⮚ FAR 17.5: Interagency Acquisitions
⮚ FAR 17.6: Management and Operating Contracts
⮚ FAR 17.7: Interagency Acquisitions

FAR 17.1:Multi-year Contracting
⮚ Purpose: 17.1 provides policy and procedures for multi-year contracting
⮚ Multi-year v. Multiple Year
• Multi-year: contract for supplies and/or services for more than 1, but no more than 5 program
years; modifications permitted; more flexible
• Multiple Year: contract with a base year and options to renew
⮚ When is FAR 17.1 Multi-year Contracting Used?
• Sealed Bidding; Negotiation

FAR 17.1:Multi-year Contracting Continued
⮚ How?
• CO determines that the need for supplies and/or services is continuing
• DoD, NASA, USCG: only if significant savings involved
• Must be cancelled if funds are not appropriated to support next year
⮚ Objectives
• Lower costs
• Enhanced standardization
• Continuity of production, performance
• No need for new contractor procedures each year

FAR 17.2: Options
⮚ Purpose: 17.2 provides policy and procedures for use of option provisions
⮚ Use of Options
• CO may include options in contract when it’s in the Government’s interest
• If sealed bidding, the CO shall make a written determination that there’s a “reasonable
likelihood” the options will be exercised before including the clause

FAR 17.2: Options Continued
⮚ “In the Government’s Interest”
• Normally not: when foreseeable requirements involve minimum economic quantities; delivery
requirements far enough in the future to permit competition; if IDIQ would be more appropriate
than a contract with options
• Definitely not (“CO shall not employ options”): when the contractor will incur undue risks (ex.
price, availability of materials is not foreseeable); market prices likely to change substantially;
option represents known firm requirements for which funds are available
⮚ Exercise of Options
• When exercising an option, the CO shall provide written notice to contractor
• CO shall run through checklist before exercising option: i.e., funds are available, option covers
Government need, contractor past performance considered, etc.

FAR 17.4: Leader Company Contracting
⮚ Purpose: 17.4 provides guidance on leader company contracting
⮚ Leader Company Contracting
• LCC is “an extraordinary acquisition technique” limited to special circumstances
• Developer/sole producer of a product/system is designated to be the “leader company”
• Leader company gives assistance to 1+ designated “follower companies” under contract

FAR 17.4: Leader Company Contracting Continued
⮚ Objectives
• Reduces delivery time
• Achieves geographic dispersion of suppliers
• Maximizes use of scarce tooling, special equipment
• Ensures uniformity and reliability in equipment, standardization of components
• Eliminates issues in use of proprietary data
⮚ Limitations: LCC can only be used when…
• Leader company has the necessary knowledge and can provide assistance
• No other source can meet the Government’s requirements without leader company
• Its use is authorized in accordance with agency procedures

FAR 17.5: Interagency Acquisitions
⮚ Purpose: 17.5 prescribes policies applicable to all interagency acquisitions – applying when one
agency uses another’s contract to obtain supplies/services
• Excluding: FSS orders under $600k; when interagency contracting is incidental to the
transaction; when interagency work is reimbursable to federal employees
• Notably, nondefense agencies are also subject to 17.7
• Authorized by the Economy Act (31 U.S.C. 1535)
⮚ What Types of Contracts?
• Most interagency acquisitions are via IDIQ contracts (task, delivery orders)
• Most interagency IDIQs are FSS, GWACs, and MACs

FAR 17.5: Interagency Acquisitions Continued
⮚ How?
• Assisted acquisitions: before solicitation, the agencies shall sign an agreement dictating its
relationship, the roles of each party, and how the contract will be managed and executed
• Direct acquisitions: requesting agency administers order, so no written agreement required
• Reporting requirement – each executive agency shall submit an annual report to OMB
⮚ Business-Case Analysis
• To establish a GWAC or MAC, a business-case analysis must be prepared by servicing agency
and approved in accordance with OFPP business case guidance (which considers strategies,
administration and impact of contract, etc.)

FAR 17.6: Management and Operating Contracts
⮚ Purpose: 17.6 prescribes rules for management and operating contracts for the Department of Energy
(and other agencies having statutory authority)
⮚ “Management and Operating Contracts”
⮚ Agreement for the operation, maintenance, or support of a Government-owned/controlled research,
development, production, or testing site devoted to 1+ major programs of the contracting agency
⮚ Often when a contract’s nature requires a special, close relationship between the contractor, the
contractor’s personnel, and the Government
⮚ I.E., national defense facilities, where conduct of work is Government-specific
⮚ How?
⮚ Heads of agencies (with the requisite statutory authority) can, in writing, authorize COs to renew or
enter into a management and operating contract
⮚ The contract must be in accordance with the agency’s statutory authority and the agency’s regulations
governing its contracts

FAR 17.7: Interagency Acquisitions
⮚ Purpose: 17.7 applies to acquisitions by nondefense agencies on behalf of DoD, and expands on
rules set forth in 17.5
⮚ Defense v. Nondefense Agency
• Defense: U.S. Department of Defense
• Nondefense: U.S. department or agency other than DoD
• Nondefense in intelligence community (17.7 does not apply):
o Director of National Intelligence
o Central Intelligence Agency
o DBI, DoE, DEA intelligence elements
o Any other group designated as an element of the intelligence community

FAR 17.7: Interagency Acquisitions Continued
⮚ What’s the Objective?
• A DoD acquisition official can request nondefense agency to conduct an acquisition on behalf of
DoD in excess of the Simplified Acquisition Threshold, only if the head of nondefense agency
has certified that the agency will comply with applicable procurement requirements

2024 Webinar Series
THE FAR
THANK YOU FOR ATTENDING!
FAR PART #17:
Special Contracting Methods
SPEAKER: Isaias “Cy” Alba
FIRM: Piliero Mazza
EMAIL:ialba@pilieromazza.com
Disclaimer
This communication does not provide legal advice, nor does it create an attorney-client relationship with you or any other reader. If
you require legal guidance in any specific situation, you should engage a qualified lawyer for that purpose. Prior results do not
guarantee a similar outcome.
Attorney Advertising
It is possible that under the laws, rules, or regulations of certain jurisdictions, this may be construed as an advertisement or
solicitation.
© 2024 PilieroMazza PLLC
All rights reserved.

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THE FAR
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2024: The FAR, Federal Acquisition Regulations - Part 17

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2024: The FAR, Federal Acquisition Regulations - Part 17