Proposed Rule2026-19331
General Services Administration Acquisition Regulation; GSAR Implementation of Executive Order 14275, Federal Supply Schedule Ordering Procedures
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Published
September 22, 2026
Issuing agencies
General Services Administration
Abstract
GSA is proposing to amend the General Services Administration Acquisition Regulation (GSAR) to move Federal Supply Schedule (FSS) ordering procedures from the Federal Acquisition Regulation (FAR) to GSAR part 538. This rule would direct ordering activities to use the FSS ordering procedures established by GSA.
Full Text
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<title>Federal Register, Volume 91 Issue 182 (Tuesday, September 22, 2026)</title>
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[Federal Register Volume 91, Number 182 (Tuesday, September 22, 2026)]
[Proposed Rules]
[Pages 60063-60068]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-19331]
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GENERAL SERVICES ADMINISTRATION
48 CFR Part 538
[GSAR Case 2026-G501; Docket No. GSA-GSAR-2026-0563; Sequence No. 1]
RIN 3090-AL13
General Services Administration Acquisition Regulation; GSAR
Implementation of Executive Order 14275, Federal Supply Schedule
Ordering Procedures
AGENCY: Office of Acquisition Policy, General Services Administration
(GSA).
ACTION: Proposed rule.
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SUMMARY: GSA is proposing to amend the General Services Administration
Acquisition Regulation (GSAR) to move Federal Supply Schedule (FSS)
ordering procedures from the Federal Acquisition Regulation (FAR) to
GSAR part 538. This rule would direct ordering activities to use the
FSS ordering procedures established by GSA.
DATES: Interested parties should submit written comments to the
Regulatory Secretariat Division at the address shown below on or before
October 22, 2026 to be considered in the formation of the final rule.
ADDRESSES: Submit comments in response to GSAR case 2026-G501 to:
<a href="https://www.regulations.gov">https://www.regulations.gov</a> via the Federal eRulemaking portal by
searching for ``GSAR Case 2026-G501''. Select the link ``Comment Now''
that corresponds with GSAR Case 2026-G501. Follow the instructions
provided at the ``Comment Now'' screen. Please include your name,
company name (if any), and ``GSAR Case 2026-G501'' on your attached
document. If your comment cannot be submitted using <a href="https://www.regulations.gov">https://www.regulations.gov</a>, call or email the points of contact in the FOR
FURTHER INFORMATION CONTACT section of this document for alternate
instructions.
To view the docket summary, click on ``View docket'' on the top
left corner of the screen.''
Instructions: Please submit comments only and cite GSAR Case 2026-
G501, in all correspondence related to this case. Comments received
generally will be posted without change to <a href="https://www.regulations.gov">https://www.regulations.gov</a>,
including any personal and/or business confidential information
provided. To confirm receipt of your comment(s), please check <a href="https://www.regulations.gov">https://www.regulations.gov</a>, approximately two to three days after submission
to verify posting.
FOR FURTHER INFORMATION CONTACT: For clarification of content, contact
Thomas O'Linn at <a href="/cdn-cgi/l/email-protection#c78094869597a8abaea4be87a0b4a6e9a0a8b1"><span class="__cf_email__" data-cfemail="3275617360625d5e5b514b725541531c555d44">[email protected]</span></a> or call 202-445-0390 and cite
``GSAR Case 2026-G501''. For information pertaining to status or
publication schedules, contact the Regulatory Secretariat Division at
202-501-4755 or <a href="/cdn-cgi/l/email-protection#dc9b8f9d8eb9bb8fb9bf9cbbafbdf2bbb3aa"><span class="__cf_email__" data-cfemail="43041002112624102620032430226d242c35">[email protected]</span></a>. Please cite GSAR Case 2026-G501.
SUPPLEMENTARY INFORMATION:
I. Background
Office of Federal Procurement Policy (OFPP), Office of Management
and Budget (OMB); Department of Defense (DoD); General Services
Administration (GSA); and National Aeronautics and Space Administration
(NASA) (collectively referred to as the Federal Acquisition Regulatory
Council or FAR Council) are working to amend the FAR to implement
Executive Order (E.O.) 14275, Restoring Common Sense to Federal
Procurement. The E.O. directs the elimination of excessive acquisition
regulations to stop the inefficient use of American taxpayer dollars.
In response to E.O. 14275, the Office of Management and Budget issued
memorandum M-25-26, Overhauling the Federal Acquisition Regulation. The
Memo directed the FAR Council to complete a ``revolutionary overhaul''
of the FAR (herein referred to as ``Revolutionary FAR Overhaul'' or
``RFO'').
The FAR Council's RFO FAR case 2026-003 includes the complete
revision to FAR part 8. FAR part 8, specifically FAR subpart 8.4, is
where FSS ordering procedures are currently located. FAR case 2026-003
removes FSS ordering procedures and instead directs agencies to use the
FSS ordering procedures provided by GSA. As a result, GSA is proposing
to amend the GSAR to move FSS ordering procedures to GSAR part 538.
II. Discussion and Analysis
Currently, FAR part 8 contains requirements, guidance, and
procedures for acquiring and using excess property and ordering
products and/or services from Federal Prison Industries (FPI),
AbilityOne participating nonprofit agencies, the Federal Supply
Schedule (FSS) program, and the Government Publishing Office.
FAR case 2026-003 removes duplicative requirements, guidance, and
procedures currently found in the FAR part 8 and directs agencies to
rely on the requirements, guidance, and procedures provided by these
sources.
The FSS program pursuant to 41 U.S.C. 152(3) is directed and
managed by GSA. GSA develops and oversees FSS ordering procedures.
Currently, FSS ordering procedures are codified in Chapter 1 of Title
48 of the CFR (see FAR subpart 8.4). FSS ordering procedures would be
moved under this proposed rule to Chapter 5 of title 48 of the CFR. At
the same time, FSS ordering procedures are being reorganized to
harmonize with RFO efforts and improve readability. The removal of FSS
ordering procedures from FAR part 8 provides GSA with the flexibility
necessary to better manage FSS ordering procedures and support
customers' use of the FSS program. A summary of proposed changes to
existing FSS ordering procedures follows:
[[Page 60064]]
A. General
The changes to FSS ordering procedures reflect the principles of
the RFO and address only the essential requirements for placing orders
and establishing blanket purchase agreements (BPAs) against FSS
contracts. These changes-enhance the speed of acquisition and empower
acquisition professionals to use innovative approaches to acquire
products, services, and solutions under the FSS program.
B. Summary of changes
1. Statutory Requirements
The proposed rule retains GSA's statutory requirements and
principles regarding the FSS program, including:
<bullet> 40 U.S.C. 501, Services for Executive Agencies
<bullet> 40 U.S.C. 1103 Note, Architectural and Engineering Services
<bullet> 41 U.S.C. 152(3), Competitive Procedures
<bullet> 41 U.S.C. 3302, Requirements for Purchase of Property and
Services Pursuant to Multiple Award Contracts
2. Plain Language Requirements
The proposed rule reorganizes requirements and simplifies the text
into plain language. This aligns with the Federal plain language
guidelines as directed by the Plain Writing Act of 2010 (Pub. L. 111-
274; 5 U.S.C. 301 note). Plain language efforts include:
<bullet> Changes to active voice.
<bullet> Edits to improve readability and clarity.
<bullet> Reorganization to present information more logically.
<bullet> Replacing the use of the term ``shall'' with ``must'' or
``will,'' as appropriate to impose requirements.
3. Harmonization With the RFO [for Federal Acquisition Regulation (FAR]
The proposed rule harmonizes FSS ordering requirements with
revisions being made by the FAR Council under their RFO FAR efforts.
Revisions include updating cross-references and use of consistent
language, where appropriate (e.g., harmonization with language used in
RFO part 12 and subpart 16.5).
4. Improve Readability and Organization of Content
The proposed rule improves clarity, organization, and usability
while preserving existing statutory authorities and long-standing FSS
program policy. Specifically, the proposed rule reorganizes existing
text into a more direct and streamlined format that is easier to read
and allows ordering activities to quickly and easily identify the
requirements that apply to their specific acquisition. These efforts
include:
<bullet> Creating a single unified approach to order placement
based on dollar threshold vs. type of order. Currently, ordering
requirements are spread across three different sections in FAR subpart
8.4 (i.e., FAR 8.405-1 (for products/services not requiring a Statement
of Work--non-Blanket Purchase Agreement (BPA) orders); FAR 8.405-2 (for
services requiring an SOW--non-BPA order); and FAR 8.405-3 (for orders
against BPAs)). This reorganization ensures ordering procedures are
logically grouped and do not include unnecessary repetition, thereby
simplifying the regulatory structure and enhancing clarity for ordering
activities; and
<bullet> Relocating Order-level materials (OLM) requirements from
GSAR clause 552.238-115 into GSAR subpart 538.71. This reorganization
ensures OLM order-level requirements are located with FSS ordering
procedures, thereby ensuring ordering activities have awareness of
these requirements.
III. Expected Impact of the Rule
This proposed rule creates no significant new or additional costs.
The rule moves the procedures from the FAR to GSA and reorganizes and
improves the readability of the language. The revisions proposed by
this rule will significantly benefit the FSS program as a whole (i.e.,
GSA and VA, ordering activities, businesses interested in doing
business with GSA, and existing FSS contractors).
The proposed rule streamlines the Federal Supply Ordering
procedures at FAR 8.4 from over 10,000 words to approximately 2,600.
Removing, reducing, and streamlining content ensures GSA, ordering
activities, businesses interested in doing business with GSA, and
existing FSS contractors don't:
<bullet> Waste time or effort navigating a maze of scattered
instructions as currently required;
<bullet> Unnecessarily complete requirements not required by
statute, executive order, or for sound procurement that don't support
faster acquisitions or better results.
GSA anticipates that these revisions will result in qualitative
benefits, such as:
<bullet> Increasing competition;
<bullet> Improving customer satisfaction and reduced customer costs
(e.g., time) associated with ordering products, services, and solutions
under the FSS program);
<bullet> Encouraging businesses to consider seeking an FSS
contract;
<bullet> Reducing administrative costs for ordering activities and
existing FSS contractors;
<bullet> Clarifying burdensome procedures, like FAR part 15 source
selection procedures that don't apply to FSS orders (e.g., there is no
requirement for evaluation plans, quotation scoring, or establishing a
competitive range before communicating with quoters or soliciting
revised quotations);
<bullet> Encouraging coordination between FSS contractors, such as
through FSS contractor team arrangements and OLMs; and
<bullet> Encouraging an increase in the number and extent of
offerings available under the FSS program.
GSA anticipates non-recurring costs associated with familiarization
and training related to the rule. GSA anticipates these costs will
apply to ordering activities and business concerns, including those
interested in seeking a FSS contract and existing FSS contractors.
These entities will likely need to take the time to familiarize
themselves with the changes to FSS ordering procedures. Additionally,
it is anticipated that GSA will need to update existing FSS program
resources to reflect the revisions made under this proposed rule.
GSA calculates the estimated cost for ordering activities to
familiarize themselves with the updates to FSS ordering procedures as
$1,390,830.\1\ GSA calculates the estimated cost for existing FSS
contractors and potential interested business concerns seeking to
obtain a FSS contract to familiarize themselves with the updates to FSS
ordering procedures as $567,775.\2\ GSA calculates the estimated cost
for training and updating existing FSS program
[[Page 60065]]
resources for purposes of reflecting these revisions as $33,115.\3\
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\1\ The anticipated costs is calculated as follows: estimated .5
hours * $66.23 hourly rate * 42,000 (estimated impacted ordering
entities). The hourly rate is based on GS-12 Step 5 base pay plus
``Rest of US Locality Pay'' plus ``Fringe''). The hourly rate for
GS-12 is $66.23 ($48.61 as a GS-12/step 5 salary OPM 2026 pay scale
Rest of US, with a 36.25% ($17.62) fringe factor pursuant to OMB
memorandum M-08-13). The total estimated impacted entities is
calculated by adding the approximate 42,000 Federal employees within
the 1102, 1103 and 1104 job series (source OPM Federal Workforce
Data).
\2\ The anticipated costs is calculated as follows: estimated .5
hour * $66.23 hourly rate * 16,700 (impacted entities). The hourly
rate is based on GS-12 Step 5 base pay plus ``Rest of US Locality
Pay'' plus ``Fringe''). The hourly rate for GS-12 is $66.23 ($48.61
as a GS-12/step 5 salary OPM 2026 pay scale Rest of US, with a
36.25% ($17.62) fringe factor pursuant to OMB memorandum M-08-13).
The total estimated impacted entities is calculated by adding the
approximate 14,445 active FSS contractors and approximate 2,700
annual offerors.
\3\ The anticipated costs is calculated as follows: estimated
hours 500 * 66.23 hourly rate. The hourly rate is the same hourly
rate used for the familiarization cost.
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In whole, the movement of FSS ordering procedures from the FAR to
the GSAR and the qualitative benefits outlined offset any new, de
minimis non-recurring costs identified above.
IV. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
the costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
This is a significant regulatory action under section 3(f) of E.O.
12866 and, therefore, was subject to review under Section 6(b) of E.O.
12866.
V. Executive Order 14192
This proposed rule, if finalized as proposed, is not an E.O. 14192
regulatory action because it does not impose any more than de minimis
regulatory costs. See discussion in the ``Expected Impact of the Rule''
section of this preamble.
VI. Regulatory Flexibility Act
GSA does not expect this proposed rule to have a significant
economic impact on a substantial number of small entities within the
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.,
because this rule is to move to the GSAR, reorganize, and improve
readability of existing ordering procedures related to FSS program
currently found in FAR subpart 8.4. The underlying purpose of the rule
remains the same (i.e., supporting the placement of orders and
establishment of blanket purchase agreements against FSS contracts).
However, an Initial Regulatory Flexibility Analysis (IRFA) has been
prepared consistent with 5 U.S.C. 603.
The analysis is summarized as follows:
1. Reasons for the action.
OFPP, DoD, GSA, and NASA (collectively referred to as the Federal
Acquisition Regulatory Council or FAR Council) are working to amend the
Federal Acquisition Regulation (FAR) to implement Executive Order
(E.O.) 14275, Restoring Common Sense to Federal Procurement, and Office
of Management and Budget issued memorandum M-25-26, Overhauling the
Federal Acquisition Regulation. This effort is collectively referred to
as the Revolutionary FAR Overhaul (RFO).
One of the FAR Council's RFO efforts, specifically FAR case 2026-
003, includes the complete revision to FAR part 8, which currently
contains requirements, guidance, and procedures for ordering products
and/or services from the following sources: Federal Prison Industries
(FPI), AbilityOne participating nonprofit agencies, the Federal Supply
Schedule (FSS) Program, and the Government Publishing Office. FAR case
2026-003 removes duplicative requirements, guidance, and procedures
currently found in the FAR part 8 and has ordering activities rely on
the requirements, guidance, and procedures provided by each source,
instead. This approach simplifies the acquisition process for ordering
activities when ordering from these sources and provides each of these
sources with the flexibility to manage how customers use their programs
(e.g., the FSS Program).
As a result, GSA is proposing to amend the GSAR to move FSS
ordering procedures to GSAR part 538.
2. Objective of, and legal basis for, the rule.
The rewrite of the FAR under the RFO represents a paradigm shift in
federal acquisition. It emphasizes streamlining, clarity, and
accessibility, while ensuring that the regulation focuses only on
statutory mandates and foundational procurement principles. The RFO is
designed to streamline compliance for contracting professionals,
improve acquisition speed and agility, and reinforce mission outcomes
over process formalities.
For purposes of moving FSS ordering procedures the GSAR, GSA is
reorganizing and improving readability of existing requirements
currently codified in FAR subpart 8.4. The proposed changes support the
RFO objectives and do not create any new burden on the Government or
industry. Instead, these changes simplify the requirements needed for
customers to acquire products, services, and solutions from the FSS
program, thereby making the acquisition process faster and more
efficient.
The basis for the RFO, which encompasses the basis for this rule,
is E.O. 14275, Restoring Common Sense to Federal Procurement. GSA's
authority for promulgation of ordering procedures for the FSS Program
is 10 U.S.C. 3012(3); 40 U.S.C. 121(c); 40 U.S.C. 501; 41 U.S.C.
152(3); and 41 U.S.C. 3302. These ordering procedures have been
coordinated with The Administrator for Federal Procurement Policy in
accordance with 41 U.S.C. 4104(c).
3. Description of, and estimate of, the number of small entities to
which the rule will apply.
The proposed changes to the GSAR do not impose any new requirements
or burdens on small business concerns. The proposed changes impact the
internal procedures of the Government concerning the placement of
orders and establishment of blanket purchase agreements under the FSS
program. Therefore, the changes proposed by this rule are not expected
to have a significant economic impact on a substantial number of small
entities.
It is recognized that small business concerns seeking to do
business with the Federal Government, specifically those seeking to
obtain a FSS contract as well as existing FSS contractors will have to
familiarize themselves with the updates to FSS ordering procedures. As
of January 2026, there were 401,196 entities registered in the System
for Award Management (SAM) that were small for at least one NAICS code
they had selected. At the end of Fiscal Year 2025, there were
approximately 14,000 active vendors holding a FSS contract (out of
which approximately 12,400 (89 percent) were small business FSS
contractors).
4. Description of projected reporting, recordkeeping, and other
compliance requirements of the rule.
The proposed rule does not impose any new reporting, recording
keeping, or compliance requirements.
5. Relevant Federal rules which may duplicate, overlap, or conflict
with the rule.
The proposed rule, if finalized, would not duplicate, overlap, or
conflict with other Federal rules.
6. Description of any significant alternatives to the rule which
accomplish the stated objectives of applicable statutes and which
minimize any significant economic impact of the rule on small entities.
There are no significant alternatives that would minimize the
impact of the rule on small entities.
The Regulatory Secretariat Division has submitted a copy of the
IRFA to the Chief Counsel for Advocacy of the Small Business
Administration. A copy of the IRFA may be obtained from the Regulatory
Secretariat Division. The FAR Council invites comments from small
business concerns and other interested parties on the expected impact
of this proposed rule on small entities.
[[Page 60066]]
GSA will also consider comments from small entities concerning the
existing regulations in subparts affected by the rule in accordance
with 5 U.S.C. 610. Interested parties must submit such comments
separately and should cite 5 U.S.C 610 (GSAR Case 2026-G501), in
correspondence.
VII. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the GSAR do not impose recordkeeping or information collection
requirements, or the collection of information from offerors,
contractors, or members of the public that require the approval of the
Office of Management and Budget (OMB) under 44 U.S.C. 3501, et seq.
List of Subjects in 48 CFR Part 538
Government procurement.
Jeffrey A. Koses,
Senior Procurement Executive, Office of Acquisition Policy, Office of
Government-wide Policy, General Services Administration.
Therefore, GSA proposes to amend 48 CFR part 538 as set forth
below:
PART 538--FEDERAL SUPPLY SCHEDULE CONTRACTING
0
1. The authority citation for 48 CFR Part 538 continues to read as
follows:
Authority: 40 U.S.C. 121(c).
0
2. Add subpart 538.71 to read as follows:
Sec.
538.7100 Scope of subpart.
538.7101 Definitions.
538.7102 FSS program.
538.7103 Procedures.
538.7103-1 General requirements.
538.7103-2 Acquisitions at or not more than the micro-purchase
threshold.
538.7103-3 Acquisitions exceeding the micro-purchase threshold, but
not more than the simplified acquisition threshold (SAT).
538.7103-4 Acquisitions exceeding the SAT.
538.7104 Additional requirements.
538.7104-1 FSS Blanket purchase agreements.
538.7104-2 Order-level materials.
538.7104-3 FSS Sole source justifications.
538.7104-4 Items peculiar to one manufacturer.
538.7105 Postaward requirements.
Subpart 538.71 Federal Supply Schedule Ordering Procedures
538.7100 Scope of subpart.
This subpart prescribes the procedures for placing orders and
establishing blanket purchase agreements (BPAs) against Federal Supply
Schedule (FSS) contracts. Learn more about the FSS program at <a href="http://www.gsa.gov/schedules">http://www.gsa.gov/schedules</a>.
538.7101 Definitions.
As used in this subpart--
Ordering activity means an entity that is eligible to place orders
or establish BPAs against FSS contracts.
Order-level materials (OLMs) means products, services, and/or
solutions (a combination of products and/or services) included in an
order against an FSS contract or BPA in direct support of the primary
purpose of the order or BPA, when the products, services, and/or
solutions are not awarded on the contractor's FSS contract. OLMs do not
include costs that are separately addressed elsewhere in the FSS
contract (e.g., travel).
538.7102 FSS program.
(a) The procedures in this subpart are considered competitive
procedures under the Competition in Contracting Act (see 41 U.S.C.
152(3) and 10 U.S.C. 3012(3)).
(b) Unless otherwise prescribed, FAR parts 5, 6, 14, 15, 16, and 19
do not apply to this subpart.
(c) Requirements that substantially or to a dominant extent specify
performance of architect-engineer services (as defined in FAR 2.101)
are not within scope of the FSS program (see 40 U.S.C. 1103 note).
(d) Two or more FSS contractors can combine their offerings and
propose an FSS contractor team arrangement (CTA) to meet an ordering
activity's needs, unless prohibited by the ordering activity.
(e) In performance of an FSS order, including orders under FSS
BPAs, GSA has authorized FSS contractors to acquire products, services,
or solutions from other FSS contracts, unless prohibited by the
ordering activity. A separate authorization under FAR 8.105 is not
required at the order level.
(f) GSA may establish special ordering procedures for a particular
FSS schedule, category, or special item number (SIN). When established,
the special ordering procedures will be identified within the
applicable FSS, category, or SIN. Except when otherwise stated, special
ordering procedures take precedence over the procedures in this
subpart.
538.7103 Procedures.
These procedures apply to placing orders and establishing BPAs
against FSS contracts. See 538.7104-1(e) for the procedures for placing
orders against FSS BPAs.
538.7103-1 General requirements.
(a) Ordering activities must--
(1) Follow FAR parts 4, 7, and 11, to the extent necessary, for
purposes of planning, conducting market research, and defining their
needs. For example, ordering activities may use FSS e-tools to search
for and compare products, services, and solutions offered under the FSS
program. Refer to 538.7104-4 if the requirement involves items peculiar
to one manufacturer.
(2) Comply with the requirements of FAR 12.104(b) when placing an
order on a time-and-materials or labor-hour basis.
(3) Based on the total estimated value of the acquisition, follow
the applicable requirements in 538.7103-2 through 538.7103-4 and any
applicable requirements in 538.7104.
(i) To solicit quotations for orders and BPAs against FSS
contracts, issue a Request for Quotation (RFQ). A quotation is not an
offer. Consequently, the procedures described in this subpart are not
considered negotiations or source selection. RFQs must describe the
requirement and the basis on which selection will be made. Ordering
activities have broad discretion in establishing how quotations will be
evaluated.
(ii) Ordering activities are not required to have evaluation plans,
score quotations, or establish a competitive range before communicating
with quoters or soliciting quotations. To maximize efficiency, ordering
activities are encouraged to use innovative approaches when placing
orders and establishing FSS BPAs, commensurate with the risk and
complexity of the requirement. Learn more about innovative approaches
in the Periodic Table of Acquisition Innovations at <a href="https://acquisitiongateway.gov/periodic-table">https://acquisitiongateway.gov/periodic-table</a>.
(4) Check the System for Award Management (<a href="http://SAM.gov">SAM.gov</a>) for active
contractor exclusion records prior to award.
(5) Document the file to the extent necessary to support the award
decision, commensurate with the risk and complexity of the requirement,
such as demonstrating that each quotation was fairly considered.
(6) Award the FSS order to (or establish the FSS BPA with) the FSS
contractor that represents the best value (as defined by FAR 2.101).
This may include considering the level of effort and the mix of labor
proposed to perform a specific task being ordered.
(b) Ordering activities may--
(1) Set aside or otherwise place orders or establish FSS BPAs with
small business concerns identified in FAR 19.000(a)(3).
(2) Seek further price discounts or other concessions before
placing an order or establishing an FSS BPA.
[[Page 60067]]
(3) Place orders orally, ahead of written confirmation, when using
the procedures in 538.7103-2 or 538.7103-3(a).
(4) Use the Governmentwide commercial purchase card or other
authorized means--
(i) As a payment mechanism for orders, regardless of dollar amount,
subject to any applicable limitations (e.g., limitations established by
the FSS BPA, ordering activity policies, or the Governmentwide
commercial purchase card program).
(ii) To place orders, regardless of dollar amount subject to any
applicable limitations (e.g., limitations established by the FSS BPA,
ordering activity policies, or the Governmentwide commercial purchase
card program).]
(c) Ordering activities are not required to--
(1) Determine contractor responsibility at the order level or BPA
level as contractor responsibility has been determined at the FSS
contract level.
(2) Make a fair and reasonable price determination at the order
level or BPA level for FSS products, services, or solutions priced in
the contractor's FSS contract because FSS contract pricing has been
determined fair and reasonable.
538.7103-2 Acquisitions at or not more than the micro-purchase
threshold.
Place the order or establish the BPA with any FSS contractor that
can meet the need. Although not required to solicit from a specific
number of FSS contractors, ordering activities should attempt to
distribute orders among FSS contractors.
538.7103-3 Acquisitions exceeding the micro-purchase threshold, but
not more than the simplified acquisition threshold (SAT).
(a) When the product, service, or solution is clearly defined and
is available for purchase at a fixed-price (e.g., capability-as-a-
service, subscription, training)
(1) Publish an RFQ on GSA's eBuy;
(2) Issue an RFQ to three or more FSS contractors; or
(3) Consider reasonably available information about the product,
service, or solution offered by three or more FSS contractors.
(b) When the product, service, or solution is not clearly defined,
involves OLMs, requires a statement of objectives, statement of work,
or performance work statement, or is not available for purchase at a
fixed-price--
(1) Publish an RFQ on GSA's eBuy; or
(2) Issue an RFQ to three or more FSS contractors.
(c) When the product, service, or solution is to be procured on a
sole source basis, execute a justification in accordance with 538.7104-
3(a).
538.7103-4 Acquisitions exceeding the SAT.
(a) Unless a justification is executed and approved in accordance
with 538.7104-3(b)--
(1) Publish an RFQ on GSA's eBuy; or
(2) Issue an RFQ to as many FSS contractors offering the product,
service, or solution as practicable, to reasonably ensure that
quotations will be received from at least three FSS contractors. If
fewer than three quotations are received, document the file by
describing how no additional FSS contractors capable of meeting the
need could be identified despite reasonable efforts taken.
(b) After award, provide prompt notification to unsuccessful
quoters. If, within 3 days after receipt of the award notice, an
unsuccessful quoter requests information on an award that was based on
factors other than price alone, provide a brief explanation of the
basis for award decision that explains why the unsuccessful quoter was
not selected. Day, as used in this paragraph, has the meaning set forth
at FAR 33.102.
538.7104 Additional requirements.
538.7104-1 FSS Blanket purchase agreements.
(a) General. FSS BPAs may be established with one or more FSS
contractors to fill repetitive needs. Pricing is generally established
as a discount off of the established FSS contract. When establishing
multiple-award BPAs, one or more BPAs may be reserved for small
business concerns identified in FAR 19.000(a)(3).
(b) Content requirements. FSS BPAs must, at a minimum, include--
(1) Sufficient detail about the need, such as scope of work or
objectives;
(2) An ordering period, inclusive of any options or award terms;
(3) Ordering activity requirements (e.g., invoicing, delivery, and
discounts/other concessions) that are not otherwise included in the FSS
contract; and
(4) Ordering procedures that--
(i) Identify the customers/individuals authorized to place orders
and any limitations surrounding the placement of orders;
(ii) Ensure compliance with FAR 12.104(b) when placing an order on
a time-and-materials or labor-hour basis; and
(iii) For multiple-award BPAs, ensure that orders exceeding the SAT
are solicited from--
(A) All BPA holders; or
(B) As many BPA holders as practicable. If fewer than three BPA
holders are solicited, document the reason.
(c) Duration. FSS BPAs may be established with an ordering period
that extends beyond the current term of a contractor's FSS contract, so
long as there are option periods in the contractor's FSS contract that,
if exercised by the FSS contracting officer, will cover the FSS BPA's
ordering period, including any options and award terms.
(d) Review. On an annual basis or prior to exercise of an option or
award of an award term, FSS BPAs must be reviewed and a written
determination made as to whether--
(1) The BPA still represents the best value;
(2) Estimated quantities, if applicable, or the total estimated
value has been reached or exceeded;
(3) The BPA ordering procedures are being followed;
(4) Additional price discounts or other concessions can be
obtained;
(5) The FSS contract, against which the BPA is established, is
still in effect; and
(6) If OLMS are included in the BPA, whether
(i) Their pricing is still considered fair and reasonable;
(ii) They are still necessary; and
(iii) If OLMs are still necessary in the BPA, whether they should
be added to the contractor's FSS contract.
(e) Ordering. When placing orders against FSS BPAs, follow the
ordering procedures established by the FSS BPA.
538.7104-2 Order-level materials.
(a) Mandatory requirements. For OLMs to be included in an order or
BPA--
(1) They must not be the primary purpose of the order or BPA. For
administrative convenience, OLMs may be concentrated in individual
orders under a BPA, provided they are not the primary purpose of the
BPA itself.
(2) They must be clearly identified in the order and BPA as OLMs.
(3) The underlying FSS contract must include the OLM SIN.
(4) A fair and reasonable price determination must be made for each
OLM at the order level or, if applicable, the BPA level. This
determination--
(i) Is not required for OLMs acquired from other FSS contracts
under 538.7102(e).
(ii) Is not required to be made prior to award of the order, but
must be made prior to the FSS contractor acquiring the OLM.
[[Page 60068]]
(iii) May be based on a comparison of the quotes for OLMs received
in response to the RFQ, information provided by the FSS contractor, or
any other information available.
(5) The FSS contractor must have any necessary authorization before
acquiring OLMs from other Government sources (see FAR 8.105).
Authorization is not required for a FSS contractor to propose or
acquire OLMs from other FSS contracts under 538.7102(e).
(6) OLMs may not be used to circumvent any limitations on the
ordering activity's eligibility or authority to use the FSS program,
such as the Cooperative Purchasing program or other initiatives which
limit purchases to certain FSS categories.
(b) Optional requirements. The ordering activity should--
(1) Provide notification in the RFQ of any restrictions or
conditions concerning OLMs, such as mandating or limiting the use of
Government sources (see FAR 8.105).
(2) Include any requirements governing OLMs that are not otherwise
included in the contractor's FSS contract or BPA, such as requirements
for indirect costs and contract type requirements (see FAR 12.104(b)).
538.7104-3 FSS Sole source justifications.
Orders placed and BPAs established against FSS contracts are exempt
from the competition requirements in FAR part 6. However, the ordering
activity contracting officer must justify, in writing, placing an order
or establishing a BPA exceeding the MPT on a sole source basis in
accordance with this subsection.
(a) Exceeding the MPT, but not more than the SAT. Document the
circumstances, including rationale, as to why only one source is
reasonably capable of providing the products, services, or solutions
(e.g., urgency, exclusive licensing agreements, items particular to one
manufacturer).
(b) Exceeding the SAT. Document the circumstances, including
sufficient detail and supporting rationale to support the statutory
exception used. (1) Statutory exceptions. The exceptions permitting an
order or an FSS BPA to be established on a sole source basis are:
(i) The need is of such unusual urgency that following the
procedures in 538.7103-4 would result in unacceptable delays in
fulfilling that need;
(ii) Only one source is capable of providing the products,
services, or solution required at the level of quality required because
the products, services, or solutions are unique or highly specialized;
(iii) The order or BPA must be issued on a sole source basis in the
interest of economy and efficiency because it is a logical follow-on to
an FSS order already issued or BPA already established on a competitive
basis (see 538.7103-4);
(iv) It is necessary to place an order to satisfy a minimum
guarantee; or
(v) A statute expressly authorizes or requires that the purchase be
made from a specified source.
(vi) For DoD, NASA, and the Coast Guard, the order satisfies one of
the exceptions permitting the use of other than full and open
competition listed in 10 U.S.C. 3406(c)(5). The public interest
exception may only be used when Congress is notified in accordance with
10 U.S.C. 3204(a)(7).
(2) Publication requirements. (i) Justifications must be made
publicly available within 14 days after award, except--
(A) For justifications made under paragraph (b)(1)(i) of this
subsection, which must be posted within 30 days after award; and
(B) When publication is not required in the event of extraordinary
circumstances or where publication would compromise national security
(e.g., would result in disclosure of classified information) or create
other security risks.
(ii) Justifications must be made publicly available--
(A) At the Government-wide Point of Entry (GPE); and
(B) On the website of the ordering activity, which may provide
access to the justifications by linking to the GPE; and
(C) For a minimum of 30 days.
(iii) Before publication, justifications must be carefully
screened--
(A) To identify and remove any contractor proprietary data,
including references and citations as are necessary to protect such
proprietary data.
(B) To determine whether the justification, or portions of the
justification, are exempt from publication under any of the exemptions
to disclosure of information contained in the Freedom of Information
Act (5 U.S.C. 552) and the prohibitions against disclosure contained in
FAR part 24.
(c) Documentation and approval. Agency procedures may establish
similar content and approval requirements as prescribed by FAR 16.507-
6(d)(2) and FAR 16.507-6(e).
538.7104-4 Items peculiar to one manufacturer.
(a) General. An item peculiar to one manufacturer can be a
particular brand name, product, or a feature of a product, that is
peculiar to one manufacturer.
(b) Requirement. Items peculiar to one manufacturer may only be
acquired when--
(1) The particular brand name, product, or feature is essential to
the ordering activity's requirements, and market research indicates
other companies' similar products, or products lacking the particular
feature, do not meet, or cannot be modified to meet, the ordering
activity's need; and
(2) The file is documented accordingly--
(i) If the order is to be placed (or FSS BPA established)
competitively, the file must be documented concerning the basis for
restricting consideration to an item peculiar to one manufacturer, or
(ii) If the order is to be placed (or FSS BPA established) on a
sole source basis, a justification must be executed in accordance with
538.7104-3.
538.7105 Postaward requirements.
(a) Under the Disputes clause of the FSS contract, the ordering
activity contracting officer must--
(i) Consult with the FSS contracting officer prior to resolving a
dispute arising under or relating to an FSS order that requires
interpretation of material FSS contract terms or involves a significant
FSS contract administration issue.
(ii) Issue the final decision in accordance with FAR 33.205-6.
(b) The ordering activity contracting officer should use the
alternative dispute resolution (ADR) procedures (see FAR 33.205-8), to
the maximum extent practicable.
[FR Doc. 2026-19331 Filed 9-21-26; 8:45 am]
BILLING CODE 6820-61-P
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</html>Indexed from Federal Register on September 22, 2026.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.