Economy Act
The Economy Act (31 U.S.C. 1535) lets a federal agency order supplies or services from another agency when it serves the government's interest, requires a determination and findings under FAR 17.502-2, and deobligates funds the servicing agency fails to obligate in time.
The Economy Act is the default authority for buying through another federal agency when no more specific statute covers the transaction. Orders against Federal Supply Schedules ride 40 U.S.C. 501 and GWAC orders ride 40 U.S.C. 11302(e), so the Economy Act picks up what remains: one agency using another's contracts or expertise when that beats contracting directly.
Every order needs a determination and findings concluding the order is in the government's best interest and that a private source could not supply the need as conveniently or economically, approved by a contracting officer of the requesting agency. When the servicing agency does not follow the FAR, approval sits no lower than the senior procurement executive. The servicing agency charges actual cost, paid in advance or on delivery.
The trap is 31 U.S.C. 1535(d): amounts the requester obligates are deobligated to the extent the servicing agency has not itself obligated them before the ordering appropriation's period of availability ends. An Economy Act order is not a place to park expiring money.
Regulatory Reference
31 U.S.C. 1535; FAR 17.502-2; FAR 17.503; DoD FMR 7000.14-R, Volume 11A, Chapter 3
RFO Status
The Part 17 model deviation retains subpart 17.5 with plain-language revisions, and the D&F requirement is rooted in the statute, so Economy Act mechanics carry through the overhaul intact.
Category
Regulations & Policy
How AcqBot Helps
AcqBot drafts the Economy Act D&F from your requirement and market research record, checks whether a more specific interagency authority applies first, and monitors servicing-agency obligation status so ordered funds don't deobligate unnoticed at the end of their period of availability.
Related glossary entries
Class Deviation
A class deviation authorizes an agency to depart from specific FAR or supplement provisions for a category of contract actions rather than a single case — the mechanism agencies are using to implement the Revolutionary FAR Overhaul ahead of formal rulemaking.
Commercial Products and Services (FAR Part 12)
Commercial products and commercial services are items of a type sold, leased, licensed, or offered in the commercial marketplace, defined at FAR 2.101. FAR Part 12 implements the statutory preference for buying them whenever market research shows they can meet the agency's need.
Rule of Two
The rule of two directs a contracting officer to set aside an acquisition for small business when there is a reasonable expectation of receiving offers from at least two responsible small business concerns and making award at fair market prices, per FAR 19.502-2.
Controlled Unclassified Information (CUI)
Controlled Unclassified Information (CUI) is information the government creates or possesses, or that an entity handles on its behalf, that a law, regulation, or governmentwide policy requires safeguarding or dissemination controls for — sensitive but not classified, governed by 32 CFR Part 2002.