FAR Part 8: Required Sources of Supplies and Services

In plain English

FAR Part 8 establishes mandatory sources of supplies and services that agencies must use before buying from commercial sources, including inventories of the requiring agency, excess personal property, Federal Prison Industries (FPI), and AbilityOne (Procurement List) supplies and services. It also covers procedures for using Federal Supply Schedules (GSA Schedules) and special rules for printing and leasing motor vehicles. For contractors, this means that some requirements may be set aside for these mandatory sources, and if you provide supplies or services to the Government, you may need to use these sources as subcontractors.

Key rules

• Agencies must satisfy requirements for supplies and services from mandatory Government sources in descending order of priority, starting with inventories of the requiring agency. (8.002)
• Agencies must use excess personal property as the first source of supply for agency and cost-reimbursement contractor requirements when practicable. (8.102)
• Agencies must purchase supplies and services on the AbilityOne Procurement List from AbilityOne participating nonprofit agencies if they are available within the required period. (8.704)
• Agencies must consider Federal Prison Industries (FPI) before purchasing an item listed in the FPI Schedule, unless an exception or waiver applies. (8.602, 8.605)
• Orders placed against Federal Supply Schedules are exempt from part 6 competition requirements, but ordering activities must justify limiting sources in certain circumstances. (8.405-6)
• Ordering activities may request a price reduction at any time before placing an order or establishing a BPA, and must seek one when the order or BPA exceeds the simplified acquisition threshold. (8.405-4)
• Agencies must not require a contractor or subcontractor to use FPI as a subcontractor by any means, including solicitation provisions or contract clauses. (8.607)
• Government printing must be done by or through the Government Publishing Office (GPO) unless an exception applies. (8.802)

Who does what

In practice

• If you are a small business contractor, be aware that some Government requirements may be set aside for mandatory sources like AbilityOne or FPI, limiting your ability to compete for those specific needs.
• When bidding on a contract that requires you to provide supplies or services for Government use, check if clause 52.208-9 applies; it may require you to use mandatory sources like the Procurement List.
• If you hold a Federal Supply Schedule contract, you can receive orders directly from agencies, but you may need to offer price reductions, especially for large orders.
• For motor vehicle leasing contracts, ensure you understand the certification and contract requirements that contracting officers must include.

Common pitfalls

• Assuming that all supplies and services can be purchased from commercial sources; many are mandatory to buy from AbilityOne or FPI, and agencies must follow priority rules.
• Ignoring the requirement to use excess personal property as the first source when practicable, which can lead to unnecessary purchases.
• Failing to provide a price reduction when requested for a Federal Supply Schedule order exceeding the simplified acquisition threshold, which could jeopardize future orders.
• Requiring a contractor to use FPI as a subcontractor, which is prohibited by 8.607.

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.