41 C.F.R. § 51-5.4

Purchase exceptions

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(a) A central nonprofit agency will normally grant a purchase exception for a contracting activity to procure from commercial sources commodities or services on the Procurement List when both of the following conditions are met:

(1) The central nonprofit agency or its nonprofit agency(ies) cannot furnish a commodity or service within the period specified, and

(2) The commodity or service is available from commercial sources in the quantities needed and significantly sooner than it will be available from the nonprofit agency(ies).

(b) The central nonprofit agency may grant a purchase exception when the quantity involved is not sufficient to be furnished economically by the nonprofit agency(ies).

(c) The Committee may also grant a purchase exception for the reasons set forth in paragraphs (a) and (b) of this section.

(d) The central nonprofit agency shall obtain the approval of the Committee before granting a purchase exception when the value of the procurement exceeds the simplified acquisition threshold set forth in the Federal Acquisition Streamlining Act of 1994 or any subsequent amendments thereto.

(e) When the central nonprofit agency grants a purchase exception under the above conditions, it shall do so promptly and shall specify the quantities and delivery period covered by the exception.

(f) When a purchase exception is granted under paragraph (a) of this section:

(1) Contracting activities shall initiate purchase actions within 15 days following the date of the purchase exception. The deadline may be extended by the central nonprofit agency with, in cases of procurements exceeding the simplified acquisition threshold, the concurrence of the Committee.

(2) Contracting activities shall furnish a copy to the solicitation to the appropriate central nonprofit agency at the time it is issued, and a copy of the annotated bid abstract upon awarding of the commercial contract.

(g) Any decision by a central nonprofit agency regarding a purchase exception may be appealed to the Committee by the contracting activity.

[56 FR 48981, Sept. 26, 1991; 56 FR 64002, Dec. 6, 1991, as amended at 59 FR 59343, Nov. 16, 1994]

Notes of Decisions

Cited in 5 cases (3 in the last 5 years), 2006–2023 · leading case: Magic Brite Janitorial v. United States, 69 Fed. Cl. 319 (Fed. Cl. 2006).

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Magic Brite Janitorial v. United States, 69 Fed. Cl. 319 (Fed. Cl. 2006). · cites it 2× “See 41 C.F.R. § 51-5.4 (authorizing the nonprofit agency to issue a purchase exception if the nonprofit agency cannot furnish the service within the specified period and the service is available commercially); 48 C.”

Goodwill Indus. of South Florida, Inc. v. United States (Fed. Cl. 2022). · cites it 10× “The implementing regulation at 41 C.F.R. § 51-5.4 explains: (a) A central nonprofit agency will normally grant a purchase exception for a contracting activity to procure from commercial sources commodities or services on the Procurement List when both of the following conditions…”

Magic Brite Janitorial v. United States, 72 Fed. Cl. 719 (Fed. Cl. 2006). “; see also 41 C.F.R. § 51-5.4 (a), (c) (authorizing NISH and the Committee to grant purchase exceptions allowing for commercial procurement when the nonprofit agency cannot provide the required service).”

Sekri, Inc. v. United States (Fed. Cl. 2022). · cites it 2× “, 41 C.F.R. § 51-5.4 (providing procedures to obtain a purchase exception).”

Sekri, Inc. v. United States (Fed. Cl. 2023). · cites it 2× “” 41 C.F.R. § 51-5.4 (a). A purchase exception may also be granted “when the quantity involved is not sufficient to be furnished economically by the nonprofit agency(ies).”

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