FAR Part 51: Use of Government Sources by Contractors

In plain English

FAR Part 51 covers when and how contractors can use Government supply sources (like GSA schedules and Government stock) and interagency fleet management system (IFMS) vehicles. It matters because it allows cost-reimbursement contractors to obtain supplies and vehicles through Government channels, potentially saving time and money, but only with proper authorization and adherence to specific rules.

Key rules

• Contracting officers may authorize contractors to use Government supply sources if it is in the Government's interest and the supplies or services are available from those sources, primarily for cost-reimbursement contracts or certain negotiated contracts. (51.101)
• Before authorizing use of Government supply sources, the contracting officer must place a written finding in the contract file supporting the authorization, except for certain Committee for Purchase authorizations. (51.102)
• Contractors placing orders under Federal Supply Schedules must follow the schedule terms and include a copy of the authorization and a specific statement with each order. (51.103)
• Contractors ordering from Government stock must comply with the contracting officer's authorization, use the correct activity address code, and order only items required for contract performance. (51.103)
• Payment for supplies ordered from Government stock is not billed until after shipment, and receipt of billing establishes contractor liability; contractors should pay promptly. (51.105)
• Title to property acquired under the authorization vests as provided in the contract, with special rules for educational institutions. (51.106)
• The contracting officer must insert the clause at 52.251-1, Government Supply Sources, in solicitations and contracts when authorizing contractor use of Government supply sources. (51.107)
• Contracting officers may authorize cost-reimbursement contractors to obtain IFMS vehicles and related services for official purposes only, with specific conditions such as insurance and penalties for misuse. (51.201, 51.202)

Who does what

In practice

• If you are a cost-reimbursement contractor, you may be able to buy supplies through Government sources like GSA schedules or Government stock, potentially saving money and time, but you need written authorization from your contracting officer.
• When ordering, you must follow the specific procedures, including using the correct activity address code and including required statements with your orders.
• For IFMS vehicles, only cost-reimbursement contractors are generally eligible, and you must have insurance and agree to pay for any non-contract use.

Common pitfalls

• Assuming you can use Government supply sources without explicit written authorization from the contracting officer; the regulation requires a written finding and authorization.
• Failing to include the required statement and copy of the authorization when placing orders under Federal Supply Schedules, which could cause order rejection.
• Using IFMS vehicles for purposes other than official contract performance without reimbursing the Government, which is prohibited and can lead to penalties.

Written by AI from this part's codified text (2026-10-04); cited sections are checked against the part. A guide, not legal advice: the regulation text, the solicitation and your contract rule.