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405.7 - Obtaining Products and Services from Other Federal Agencies


OPR: Office of Acquisition and Federal Assistance

1. Purpose. This chapter establishes policy and procedures for obtaining products and services from another federal agency. The purpose of the chapter is to insure that applicable statutory and regulatory requirements are observed.

2. Scope. This chapter covers transfers of USGS appropriated funds to another federal agency as payment or reimbursement for products or services received from that agency. It does not include requisitioning from the General Services Administration (GSA) using GSA Advantage! or Federal Standard Requisitioning and Issue Procedures (FEDSTRIPs). It also does not include payments to GSA for space, repairs, maintenance, facilities and other related services (including Reimbursable Work Agreements) authorized by 40 USC 490. For interagency transfers in which USGS supplies products or services to another federal agency (funds incoming), see SM 500.3.

3. Definitions.

A. Interagency Agreement. An agreement or ordering document between federal agencies in which one agency transfers its appropriated funds to another agency for the purpose of obtaining products or services. This term includes inter-service support agreements (ISSA's) as discussed in Office of Management and Budget (OMB) Circular A-76 and transfers to other federal agencies for orders against other agency contracts, including governmentwide agency contracts (GWACs). These agreements are also referred to as interagency transfers or interagency acquisitions.

B. Requesting agency. In an interagency agreement, the ordering agency; i.e., agency to receive products or services.

C. Servicing agency. In an interagency agreement, the performing agency; i.e., agency supplying products or services.

D. Project coordinator. The program official whose program the agreement is intended to support; the team chief scientist, project leader, or other program official having overall responsibility; such individual so named in the agreement document.

4. References.

A. United States Code Title 43, Chapter 2, United States Geological Survey (Organic Act), Section 36c (43 USC 36c).

B. 31 USC 1535, Agency agreements (Economy Act).

C. Federal Acquisition Regulation (FAR) 17.5, Interagency Acquisitions under the Economy Act.

D. Department of the Interior Acquisition Regulation (DIAR) 1417.5, Interagency Acquisitions under the Economy Act, and deviation memorandum from the Director, Department of the Interior Office of Acquisition and Property Management dated February 12, 1996.

5. Policy.

A. Transfers between two Federal Government accounts are prohibited unless specifically authorized by law (see 31 USC 1532). For this reason, interagency agreements must cite a statutory authority. See paragraph 7B below for further guidance.

B. Pursuant to Survey Manual Chapter 205.4.3C, agreements under statutory authority under other than the Economy Act may be signed by authorized program officials if (1) the agreement does not exceed $500,000 over its life, and (2) the servicing agency is subject to the FAR. Offices planning or proposing agreements exceeding $100,000 must consult with an Office of Program Support warranted contracting officer before proceeding to negotiate or award the agreement (reference DOI Contracting Officers Warrant System Manual dated February 1997, paragraph III.D).

C. Reimbursements to the servicing agency cannot exceed the cost of performance; i.e., agencies may not profit from interagency agreements.

D. A proposal for interagency work may be initiated by either agency. USGS will not enter into an interagency agreement that circumvents USGS appropriation restrictions or conflicts with any other agency's authority or responsibility. The servicing agency must be substantially in a position to provide the supplies or products ordered, or equipped to render the work or services ordered.

E. Interagency agreements must serve a bona-fide need existing in the fiscal year in which issued, otherwise a valid obligation is not accomplished. Due consideration shall be given to necessary procurement lead-time in establishing such need.

F. Interagency agreements cannot be used to extend the "life" of an appropriation. The statute governing interagency transfers, 31 USC 1535(d), requires agencies to deobligate funds "to the extent that the agency filling the order has not incurred obligations before the end of the period of availability of the [source] appropriation".

G. Amendments which increase the scope or value of a project may be made at any time during the period for which the appropriation obligated by the agreement is available for further obligation. After an appropriation stated in an agreement expires for obligation, amendments which serve to extend the scope of an agreement must be financed from appropriations then current.

H. USGS should not enter into agreements with other Federal agencies that require procurement or federal assistance (grant and cooperative agreement) awards to named third parties (such as companies or universities) not previously awarded or approved for award by the servicing agency.

6. Interagency Acquisitions under the Economy Act. Economy Act agreements must be executed by a warranted Contracting Officer except as provided in paragraph A below. Agreements to be executed by a warranted Contracting Officer must be initiated by submission of a Requisition, Form DI-1 (see SM 402.3, Requisition for Goods and Services).

A. Delegation of Authority. Pursuant to SM 205.4.3C, Economy Act agreements may be executed by a program division project coordinator (or higher level official if required by Division procedures) if all of the following conditions are met:

(1) The agreement does not exceed $500,000 over its total life;

(2) The servicing agency does not require a purchase order or a Military Interdepartmental Purchase Request (MIPR), DD Form 448;

(3) The award does not involve performance of commercial activities subject to Office of Management and Budget (OMB) Circular A-76; and

(4) The agreement does not require contracting by the servicing agency.

B. Determination and Findings. All Economy Act agreements must be supported by a Determination and Findings (D&F), fully documented to comply with the requirements of the FAR, DIAR and 31 USC 1535, as shown in the Figure 1 sample. If the agreement will require contracting by the servicing agency, the D&F sample in Figure 1 must be expanded to address the additional matters in FAR 17.503(b). Authority to sign the D&F is as follows:

(1) If the Agreement will be signed by the project coordinator (see paragraph 5A above) or a program division (field) Contracting Officer acting within the scope of his/her authority, the D&F must be signed by the project coordinator's assistant division chief or regional division chief or equivalent. This approval level may not be redelegated.

(2) If the Agreement will be signed by an Office of Program Support Contracting Officer, the D&F must be signed by the Bureau Procurement Chief in accordance with DIAR 1417.502(a).

C. Legal Review. Economy Act agreements exceeding $100,000 over the entire period of performance must be reviewed for legal sufficiency by the Assistant Solicitor for Procurement and Patents prior to signature using whatever transmittal or format is most convenient (DIAR 1417.502(a)).

7. Interagency Agreement Content. Interagency agreements are analogous to contracts placed with commercial concerns, and like such contracts shall be specific, definite, and certain both as to the work encompassed by the agreement and the terms of the agreement itself. Like commercial contracts, interagency agreements may contain special provisions and may be subsequently modified or amended. A sample interagency agreement is attached as Figure 2. Use of the sample is not mandatory, however, all information from the sample must be included within or as an attachment to the document used. The following information is provided to assist in document preparation:

A. Document Number. Agreements to be executed by the project coordinator will be assigned an 11-character alphanumeric document number that must appear at the top of each page of the agreement. Numbers will be assigned according to the following format:


FY \Cost Center/ \Sequential #/

(last digit)

B. Legal Authority/Limitations. The statute authorizing the interagency agreement must be cited. When the purpose of the agreement is to fund the efforts of servicing agency employees to prosecute a cooperative project (rather than primarily to acquire products or services from a third party through the servicing agency), 43 USC 36c may be cited as the authorizing statute. If 43 USC 36c does not apply and more specific statutory authority cannot be found, the Economy Act (31 USC 1535) authorizes interagency acquisitions. See special requirements that apply to Economy Act agreements in paragraph 6 above.

C. Period of Performance. Insert the date work on the project is to begin, and expected completion or expiration date. Expiration/completion dates may be subsequently extended by amendment to the agreement.

D. Delivery Instructions/Requirements. May include a provision requiring the servicing agency to promptly advise USGS concerning changes in delivery schedules.

E. Provision for Resolution of Disputes. See FAR 17.504(c).

F. Provision for Partial or Complete Termination. Provide instructions/terms for termination of part or all of the project, including costs of termination.

G. Funds Citation.

H. Payment Provision. Agreements may provide for reimbursement either on the basis of cost of performance or on a fixed-price basis if significant variations in cost or work specifications are unlikely. Provide instructions on how the servicing agency will draw payments and whether moneys will be paid in advance, in arrears, or on a stated schedule (see SM 321.1).

I. Availability of Data Clause. Interagency agreements must state that the results of work performed will be available for use or publication by the USGS in connection with its ongoing programs, unless prohibited by security considerations.

J. Project Cost Estimate. The estimated total project cost and amount funded by USGS will be stated in the agreement. A breakdown of estimated project costs should be provided by the servicing agency, however, it is advisable that the project office prepare its own estimate as well. Refer to the Project Cost Estimate worksheet attached to SM 500.3 for a list of project costs that may be incurred. The project cost breakdown should be retained in the official file to support the total project cost and funding amounts identified in the agreement.

K. Government-Furnished Property. Identify any USGS-owned property to be furnished for use by the servicing agency and any new permanent equipment to be acquired or furnished. Specify which agency will retain title and control after the agreement ends, and which agency will be responsible for maintaining property records.

8. Distribution and File Retention. A file containing the original agreement and if required, D&F and record of legal approval, and any related correspondence will be maintained by the office executing the agreement. After signature by both parties, copies must be provided to the following Office of Program Support components:

A. Office of Financial Management; one copy to serve as an obligating document.

B. Branch of Property Management or appropriate Regional Supply Management Office; one copy if the agreement involves the furnishing of government-controlled property.

C. Office of Acquisition and Federal Assistance, one copy including D&F and legal review documentation, if applicable, to insure that this delegation of authority is exercised properly.

9. Failure to Comply. As a condition of the deviation granted permitting execution of Economy Act agreements by the program divisions, DOI requires that reviews of such agreements that disclose inconsistencies with this chapter or abuse of the delegation in 405.7.6A above result in suspension or rescission of the authority provided.


Survey Manual Chapter 405.7

Figure 1





The U.S. Geological Survey, (insert requisitioning division/office), requires the services of (insert servicing federal agency) to (insert brief description of goods or services to be provided). Use of an interagency agreement in the estimated amount of $(insert) for the required goods or services during the period (insert period of performance) is permitted based on the following findings and determination.


Pursuant to Federal Acquisition Regulation 17.503(a) and Survey Manual Chapter 405.7.5, I make the following findings:

1. The servicing agency has the capabilities or expertise to provide the products or services required.

2. Acquisition of above described goods or services through this Interagency Agreement does not circumvent USGS appropriation restrictions or conflict with any other agency's authority or responsibility.

3. The supplies or services cannot be obtained as conveniently or economically by contracting directly with a private source. Document results of market survey/cost comparison with private sources below.

4. Contracting by the servicing agency is not required, and therefore the requirements of FAR 17.503(b) do not apply to this document.


Based on the foregoing, I hereby determine that an interagency agreement is in the best interest of the Government and is authorized under the Economy Act (31 U.S.C. 1535). By my signature below, I certify that the foregoing findings are true statements of fact.







Optional Form 9- Survey Manual Chapter 405.7

Page 1 of Figure 2




Statutory Authority (check one):

Economy Act, 31 U.S.C. 1535.

Other (cite):

Fiscal Year:

Estimated Cost: $

Period of Performance:

Account Information:

Appropriation Symbol:



Bureau: U.S. Geological Survey | Department:

Division: | Bureau/Agency:

Office: | Customer #:


Address: 12201 Sunrise Valley Drive | Address:

Mail Stop |

Reston, VA 20192 |


Project Coordinator: | Project Coordinator:

Telephone: | Telephone:

Fax: | Fax:

Agency Location Code (ALC): 1408 | Agency Location Code (ALC):

DESCRIPTION OF SERVICE (Attach breakdown of projected/estimated costs, work statement and/or milestone plan).


A. The U.S. Geological Survey enters into this agreement subject to the terms and conditions stated on this form and any attachments thereto.

B. The results of this work will be available to the USGS for publication and use in connection with related work.

C. This agreement is not valid unless signed below by an authorized official from each agency.

(Continued next page)

Optional Form 9- Interagency Agreement No.

Page 2 of

D. The document/agreement number will be marked on all related correspondence.

E. Performance schedule/Deliverable Items (Work will not begin before the date this agreement is signed by both parties):

F. Payment Provisions (including name, address and telephone number of financial/billing contact in both agencies):

G. Resolution of Disagreements (Optional; applies to interagency acquisitions under the Economy Act; see Federal Acquisition Regulation 17.504(c)). Disagreements that may arise under this interagency acquisition will be resolved as follows:

H. Government Property to be Furnished/Acquired: (If acquisition of new items of property of $5,000 or more is authorized, itemize below and indicated whether to be retained by the servicing agency or returned to USGS upon expiration/completion of this agreement. If any items of controlled property will be loaned or transferred to the servicing agency, identify below. Indicate which agency will be responsible for maintaining property records during performance of the agreement/project.)


FOR THE U.S. GEOLOGICAL SURVEY: FOR (insert servicing agency name):

(Name) (Name)

(Title/Office/Division) (Title/Office/Division)

Date Date

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U.S. Department of the Interior, U.S. Geological Survey, Reston, VA, USA
Contact: APS, Office of Policy and Analysis
Last modification: 13-Feb-2013@15:14 (kk)
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