Summary
This Federal Acquisition Regulation establishes a mandatory hierarchy for government procurement, requiring agencies to prioritize purchasing from government inventories, excess property, Federal Prison Industries, the Committee for Purchase From People Who Are Blind or Severely Disabled, and wholesale supply sources (GSA, DLA, VA) before considering commercial options. It also governs the Federal Supply Schedule program with extensive procedures for ordering, competition requirements, documentation, and pricing determinations.
Reason
This regulation distorts market competition by forcing government agencies to purchase from specific government-run or politically-favored sources regardless of price, quality, or efficiency. It imposes significant administrative burdens through complex ordering procedures, documentation requirements, and compliance mechanisms. The mandate protects inefficient government enterprises from competition, increases taxpayer costs through hidden procurement inefficiencies, and violates free market principles by substituting central planning for discretionary purchasing decisions. The social objectives (supporting disabled workers, prison labor) could be achieved more efficiently through direct appropriations rather than hidden procurement mandates that distort resource allocation.