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FAR and DFARS › FAR Part 8: Required Sources of Supplies and Services › Subpart 8.7

FAR 8.704 Purchase priorities.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section sets the order in which agencies must buy supplies or services that appear on the Procurement List, which is run under the AbilityOne program. For supplies, Federal Prison Industries comes first, then AbilityOne nonprofit agencies, then commercial sources; for services, AbilityOne comes first, then Federal Prison Industries or commercial sources. It also says no other FAR rule can be read as allowing an exception to the mandatory purchase of Procurement List items.

Applies to: Ordering offices buying supplies or services that are on the Procurement List

What it requires

  • Purchase supplies or services on the Procurement List from AbilityOne participating nonprofit agencies if available within the required period
  • When identical supplies or services are on both the Procurement List and the Federal Prison Industries Schedule of Products, follow the stated purchase priorities
  • Obtain a formal waiver under 8.604 from Federal Prison Industries before buying certain Procurement List supplies from AbilityOne agencies

Key terms: Procurement List · AbilityOne participating nonprofit agencies · Federal Prison Industries, Inc. · Schedule of Products · formal waiver

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) 41 U.S.C. chapter 85 requires the Government to purchase supplies or services on the Procurement List, at prices established by the Committee, from AbilityOne participating nonprofit agencies if they are available within the period required. When identical supplies or services are on the Procurement List and the Schedule of Products issued by Federal Prison Industries, Inc., ordering offices shall purchase supplies and services in the following priorities:

(1) Supplies:

(i) Federal Prison Industries, Inc. (41 U.S.C. 8504).

(ii) AbilityOne participating nonprofit agencies.

(iii) Commercial sources.

(2) Services:

(i) AbilityOne participating nonprofit agencies.

(ii) Federal Prison Industries, Inc., or commercial sources.

(b) No other provision of the FAR shall be construed as permitting an exception to the mandatory purchase of items on the Procurement List.

(c) The Procurement List identifies those supplies for which the ordering office must obtain a formal waiver (8.604) from Federal Prison Industries, Inc., before making any purchases from AbilityOne participating nonprofit agencies.

Sections it refers to

← 8.703 Procurement List. · 8.705 Procedures. →

Rule changes for FAR Part 8

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 8.704 Purchase priorities · SpendQuery