§ 1535. — Agency agreements.
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From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 31USC1535]
TITLE 31--MONEY AND FINANCE
SUBTITLE II--THE BUDGET PROCESS
CHAPTER 15--APPROPRIATION ACCOUNTING
SUBCHAPTER III--TRANSFERS AND REIMBURSEMENTS
Sec. 1535. Agency agreements
(a) The head of an agency or major organizational unit within an
agency may place an order with a major organizational unit within the
same agency or another agency for goods or services if--
(1) amounts are available;
(2) the head of the ordering agency or unit decides the order is
in the best interest of the United States Government;
(3) the agency or unit to fill the order is able to provide or
get by contract the ordered goods or services; and
(4) the head of the agency decides ordered goods or services
cannot be provided by contract as conveniently or cheaply by a
commercial enterprise.
(b) Payment shall be made promptly by check on the written request
of the agency or unit filling the order. Payment may be in advance or on
providing the goods or services ordered and shall be for any part of the
estimated or actual cost as determined by the agency or unit filling the
order. A bill submitted or a request for payment is not subject to audit
or certification in advance of payment. Proper adjustment of amounts
paid in advance shall be made as agreed to by the heads of the agencies
or units on the basis of the actual cost of goods or services provided.
(c) A condition or limitation applicable to amounts for procurement
of an agency or unit placing an order or making a contract under this
section applies to the placing of the order or the making of the
contract.
(d) An order placed or agreement made under this section obligates
an appropriation of the ordering agency or unit. The amount obligated is
deobligated to the extent that the agency or unit filling the order has
not incurred obligations, before the end of the period of availability
of the appropriation, in--
(1) providing goods or services; or
(2) making an authorized contract with another person to provide
the requested goods or services.
(e) This section does not--
(1) authorize orders to be placed for goods or services to be
provided by convict labor; or
(2) affect other laws about working funds.
(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 933; Pub. L. 98-216,
Sec. 1(2), Feb. 14, 1984, 98 Stat. 3.)
Historical and Revision Notes
1982 Act
----------------------------------------------------------------------------------------------------------------
Revised Section Source (U.S. Code) Source (Statutes at Large)
----------------------------------------------------------------------------------------------------------------
1535(a).............................. 31:686(a)(1st sentence words Mar. 4, 1915, ch. 143, Sec. 1(3d proviso
before 15th comma, last on p. 1084), 38 Stat. 1084; May 21,
proviso). 1920, ch. 194, Sec. 7(a), 41 Stat. 613;
June 30, 1932, ch. 314, Sec. 601, 47
Stat. 417; restated July 20, 1942, ch.
507, 56 Stat. 661; Aug. 23, 1958, Pub.
L. 85-726, Sec. 1407, 72 Stat. 808;
Aug. 6, 1981, Pub. L. 97-31, Sec.
12(11), 95 Stat. 154; Dec. 29, 1981,
Pub. L. 97-136, Sec. 11, 95 Stat. 1707.
1535(b).............................. 31:686(a)(1st sentence 1st
proviso).
1535(c).............................. 31:686(a)(1st sentence words
between 15th comma and 1st
proviso, last sentence).
1535(d).............................. 31:686(c). May 21, 1920, ch. 194, Sec. 7(c), 41
Stat. 613; June 30, 1932, ch. 314, Sec.
601, 47 Stat. 417; restated June 26,
1943, ch. 150, Sec. 1, 57 Stat. 219.
31:686-1. Sept. 6, 1950, ch. 896, Sec. 1210(last
proviso), 64 Stat. 765.
1535(e)(1)........................... 31:686b(a), (b). June 30, 1932, ch. 314, Sec. 602(a),
(b), (c)(related to Sec. 602), 47 Stat.
418.
1535(e)(2)........................... 31:686b(c)(related to 31:686,
686b).
----------------------------------------------------------------------------------------------------------------
In the section, the word ``agency'' is substituted for ``executive
department or independent establishment of the Government'' for clarity.
See 12 Comp. Gen. 442 (1932) and United States v. Mitchell, 425 F. Supp.
917 (D.D.C. 1976). The words ``major organizational unit'' or ``unit''
are substituted for ``bureau or office'' for consistency in the revised
title. The words ``to fill the order'' or ``filling the order'' are
substituted for ``such requisitioned'' and ``as may be requisitioned''
for clarity and because of the restatement. The words ``goods or
services'' are substituted for ``materials, supplies, equipment, work,
or services'' to eliminate unnecessary words.
In subsection (a)(4), the words ``the head of the agency decides''
are added, and the words ``commercial enterprise'' are substituted for
``private agencies'', for clarity. The words ``by competitive bids'' are
omitted as surplus because of various procurement laws.
In subsection (b), the words ``The Secretary of Defense'' are added
for clarity because of Comptroller General decision B-20179 (Apr. 1,
1981). The words ``a military department of the Department of Defense''
are substituted for ``the Department of the Army, Navy Department'' for
consistency with title 10 and to apply the source provisions to the
Department of the Air Force because of sections 205(a) and 207(a) and
(f) of the Act of July 26, 1947 (ch. 343, 61 Stat. 501, 502), and
section 1 of the Act of August 10, 1956 (ch. 1041, 70A Stat. 488). The
words ``Secretary of Transportation in carrying out duties and powers
related to aviation and the Coast Guard'' are substituted for ``Federal
Aviation Agency, Coast Guard'' to reflect the transfer of those
functions to the Secretary of Transportation. The words ``the
Administrator of General Services'' are added to reflect the transfer of
the functions of the Bureau of Federal Supply of the Treasury Department
to the Administrator by section 102(a) of the Act of June 30, 1949
(40:752(a)). The words ``the Administrator of'' are added before
``Maritime Administration'' for clarity and consistency in the revised
title and with other titles of the United States Code.
In subsection (c), the words ``pursuant to such order'' are omitted
as unnecessary.
Subsection (d) is substituted for the source provisions being
restated to reflect decisions of the Comptroller General, including 31
Comp. Gen. 83 (1951), 34 Comp. Gen. 418 (1955), 39 Comp. Gen. 317
(1959), and 55 Comp. Gen. 1497 (1976).
In subsection (e), the words ``any Government department or
independent establishment, or any bureau or office thereof'' and
``except as otherwise provided by law'' are omitted as unnecessary
because of the restatement. The text of 31:686b(a) is omitted as
executed.
1984 Act
----------------------------------------------------------------------------------------------------------------
Revised Section Source (U.S. Code) Source (Statutes at Large)
----------------------------------------------------------------------------------------------------------------
1535(a).............................. 31 App.:686(a) (1st sentence May 21, 1920, ch. 194, Sec. 7(a) (1st,
words before 15th comma, 2d sentences), 41 Stat. 613; June 30,
proviso) 1932, ch. 314, Sec. 601, 47 Stat. 417;
restated July 20, 1942, ch. 507, 56
Stat. 661; Aug. 23, 1958, Pub. L. 85-
726, Sec. 1407, 72 Stat. 808; Aug. 6,
1981, Pub. L. 97-136, Sec. 11, 95 Stat.
1707; Oct. 15, 1982, Pub. L. 97-332,
Sec. 1(1)-(3), 96 Stat. 1622.
1535(b).............................. 31 App.:686(a) (1st sentence
words between 15th comma and
proviso, 2d sentence)
1535(c).............................. 31 App.:686(a) (last sentence) May 21, 1920, ch. 194, 41 Stat. 607, Sec.
7(a) (last sentence); added Oct. 15,
1982, Pub. L. 97-332, Sec. 1(4), 96
Stat. 1622.
----------------------------------------------------------------------------------------------------------------
Amendments
1984--Subsec. (a)(3). Pub. L. 98-216, Sec. 1(2)(A), inserted ``or
get by contract'' after ``provide''.
Subsec. (a)(4). Pub. L. 98-216, Sec. 1(2)(B), inserted ``by
contract'' after ``provided''.
Subsecs. (b), (c). Pub. L. 98-216, Sec. 1(2)(C)-(E), redesignated
subsec. (c) as (b). Former subsec. (b), which provided that the
Secretary of Defense, the Secretary of a military department of the
Department of Defense, the Secretary of Transportation in carrying out
duties and powers related to aviation and the Coast Guard, the Secretary
of the Treasury, the Administrator of General Services, and the
Administrator of the Maritime Administration could place orders under
this section for goods and services that an agency or unit filling the
order might be able to provide or procure by contract, was struck out.
Review and Enhancement of Existing Authorities for Using Air Force and
Air National Guard Modular Airborne Fire-Fighting Systems and Other
Department of Defense Assets To Fight Wildfires
Pub. L. 108-136, div. A, title X, Sec. 1058, Nov. 24, 2003, 117
Stat. 1619, provided that:
``(a) Review Required.--The Director of the Office of Management and
Budget shall conduct a review of existing authorities regarding the use
of Air Force and Air National Guard Modular Airborne Fire-Fighting
Systems units and other Department of Defense assets to fight wildfires
to ensure that, in accordance with applicable legal requirements, such
assets are available in the most expeditious manner to fight wildfires
on Federal lands or non-Federal lands at the request of a Federal agency
or State government. In conducting the review, the Director shall
specifically consider--
``(1) any adverse impact caused by the restrictions contained in
section 1535(a)(4) of title 31, United States Code, or caused by the
interpretation of such restrictions, on the ability of the Forest
Service and other Federal agencies to procure such firefighting
services; and
``(2) whether the authorities under the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et
seq.), including section 403(c) of such Act (42 U.S.C. 5170b), are
being properly utilized to facilitate an expeditious Department of
Defense response to State requests under, and consistent with, such
Act for firefighting services.
``(b) Determination Required.--On the basis of the review, the
Director shall make a determination regarding whether existing
authorities are being used in a manner consistent with using the
available capabilities of Department of Defense assets to fight
wildfires in the most expeditious and efficacious way to minimize the
risk to public safety.
``(c) Expedited Economy Act Review Process.--If the Director
determines under subsection (b) that existing authorities are adequate
for the deployment of Department of Defense assets to fight wildfires,
the Director shall develop and implement, subject to subsection (f),
such modifications to the process for conducting the cost comparison
required by section 1535(a)(4) of title 31, United States Code, as the
Director considers appropriate to further expedite the procurement of
such firefighting services.
``(d) Development and Implementation of Revised Policies.--If the
Director determines under subsection (b) that the existing authorities
or their use is inadequate or can be improved, the Director shall
develop and implement, subject to subsection (f), such regulations,
policies, and interagency procedures as may be necessary to improve the
ability of the Department of Defense to respond to a request by a
Federal agency or State government to assist in fighting wildfires on
Federal lands or non-Federal lands under section 1535(a) of title 31,
United States Code, or the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5121 et seq.), or both.
``(e) Reporting Requirement.--Not later than 120 days after the date
of the enactment of this Act [Nov. 24, 2003], the Director shall
transmit to Congress a report--
``(1) containing the results of the review conducted under
subsection (a) and the determination made under subsection (b); and
``(2) based on such determination, describing the modifications
proposed to be made to existing authorities under subsection (c) or
(d), including whether there is a need for legislative changes to
further improve the procedures for using Department of Defense
assets to fight wildfires.
``(f) Delayed Implementation.--The modifications described in the
report prepared under subsection (e) to be made to existing authorities
under subsection (c) or (d) shall not take effect until the end of the
30-day period beginning on the date on which the report is transmitted
to Congress.''
Placement of Orders by Chief Administrative Officer of the House of
Representatives
Pub. L. 107-206, title I, Sec. 904, Aug. 2, 2002, 116 Stat. 876,
provided that: ``Nothing in section 1535 of title 31, U.S.C. (commonly
referred to as the `Economy Act'), or any other provision of such title
may be construed to prevent or restrict the Chief Administrative Officer
of the House of Representatives from placing orders under such section
during any fiscal year in the same manner and to the same extent as the
head of any other major organizational unit with an agency may place
orders under such section during a fiscal year.''
Economy Act Purchases
Pub. L. 103-355, title I, Sec. 1074, Oct. 13, 1994, 108 Stat. 3271,
provided that the Federal Acquisition Regulation was to be revised to
include regulations governing the exercise of authority under this
section for Federal agencies to purchase goods and services under
contracts entered into or administered by other agencies, and further
provided for content of regulations, establishment of system to monitor
procurements under regulations, and that section would cease to be
effective one year after date on which final regulations took effect.
Final regulations were published in the Federal Register Sept. 26, 1995,
effective Oct. 1, 1995. See 60 F.R. 49720.
Department of Defense Purchases Through Other Agencies
Pub. L. 105-261, div. A, title VIII, Sec. 814, Oct. 17, 1998, 112
Stat. 2087, provided that:
``(a) Extension of Regulations.--Not later than 90 days after the
date of the enactment of this Act [Oct. 17, 1998], the Secretary of
Defense shall revise the regulations issued pursuant to section 844 of
the National Defense Authorization Act for Fiscal Year 1994 (Public Law
103-160; 107 Stat. 1720; 31 U.S.C. 1535 note) to--
``(1) cover any purchase described in subsection (b) that is
greater than the micro-purchase threshold; and
``(2) provide for a streamlined method of compliance for any
such purchase that is not greater than the simplified acquisition
threshold.
``(b) Description of Purchases.--A purchase referred to in
subsection (a) is a purchase of goods or services for one agency of the
Department of Defense by any other agency under a task or delivery order
contract entered into by the other agency under section 2304a of title
10, United States Code, or section 303H of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 253h).
``(c) Definitions.--In this section:
``(1) The term `micro-purchase threshold' has the meaning
provided in section 32 of the Office of Federal Procurement Policy
Act (41 U.S.C. 428).
``(2) The term `simplified acquisition threshold' has the
meaning provided in section 4 of such Act (41 U.S.C. 403).
``(d) Termination.--This section shall cease to be effective 1 year
after the date on which final regulations prescribed pursuant to
subsection (a) take effect.''
Pub. L. 103-160, div. A, title VIII, Sec. 844, Nov. 30, 1993, 107
Stat. 1720, directed Secretary of Defense, not later than six months
after Nov. 30, 1993, to prescribe regulations governing exercise by
Department of Defense of authority under this section to purchase goods
and services under contracts entered into or administered by another
agency, and provided for content of regulations, establishment of system
to monitor procurements under regulations, and that section would cease
to be effective one year after date on which final regulations took
effect. Final regulations were published in the Federal Register Sept.
26, 1995, effective Oct. 1, 1995. See 60 F.R. 49720.
Acquisition of Goods, Services, or Space by Secretary of Senate and
Sergeant at Arms and Doorkeeper of Senate
Pub. L. 101-163, title I, Sec. 8, Nov. 21, 1989, 103 Stat. 1046,
provided that:
``(1) The Secretary of the Senate and the Sergeant at Arms and
Doorkeeper of the Senate are authorized to acquire goods, services, or
space from government agencies and units by agreement under the
provisions of the Economy Act, 31 U.S.C. 1535, and to make advance
payments in conjunction therewith, if required by the providing agency
or establishment.
``(2) No advance payment may be made under paragraph (1) unless
specifically provided for in the agreement. No agreement providing for
advance payment may be entered into unless it contains a provision
requiring the refund of any unobligated balance of the advance.
``(3) No agreement may be entered into under paragraph (1) without
the approval of the Senate Committee on Rules and Administration and the
Senate Committee on Appropriations.''
Section Referred to in Other Sections
This section is referred to in section 1536 of this title; title 2
sections 142j, 182c, 1151, 1385; title 7 section 2009cc-16; title 10
sections 377, 1104, 2205, 2684; title 16 sections 670c-1, 825k; title 22
sections 2358, 6204; title 24 section 168b; title 25 section 2804; title
29 section 563a; title 38 section 1720A; title 40 sections 3134, 3176;
title 41 section 261; title 42 section 254; title 43 sections 1471c,
1471f; title 48 section 1469d; title 50 section 414.