[Code of Federal Regulations]

[Title 48, Volume 5]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR816.7001]



[Page 181-182]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 8--DEPARTMENT OF VETERANS AFFAIRS

 

PART 816_TYPES OF CONTRACTS--Table of Contents

 

                 Subpart 816.70_Unauthorized Agreements

 

Sec. 816.7001  Letters of availability.





    (a) Description. A letter of availability (sometimes inappropriately 

called a letter of intent) is a letter to a supplier primarily for the 

purpose of obtaining a place on the supplier's production or delivery 

schedule for long lead time items. Such a letter typically indicates 

that products or services are being considered for procurement, but that 

the statement of intent is not to be construed as a commitment. Such 

letters of availability are sometimes solicited by prospective 

contractors, or they may be originated by Government personnel. A letter 

of availability is distinguished from a letter contract which is 

specifically authorized in FAR 16.603.

    (b) Policy. (1) Unless specifically authorized by the Deputy 

Assistant Secretary for Acquisition and Materiel Management, letters of 

availability are not to be utilized for the following reasons:



[[Page 182]]



    (i) While such letters of availability may disclaim Government 

liability, they may induce potential contractors to initiate costly 

preparations in anticipation of contract award.

    (ii) Procurements announced in such letters do not always 

materialize. The result may be costly to the Government, the prospective 

contractor, or both. If the author of the letter of availability is an 

authorized contracting officer of the Department, the Government may be 

bound by action, even though the action is contrary to sound procurement 

practices and/or fiscal regulations. If the author of the letter of 

availability lacks procurement authority, the prospective contractor may 

incur substantial expenditures which may not be recovered from the 

Government, but for which the prospective contractor may seek to hold 

the unauthorized author personally liable.

    (iii) The issuance of a letter of availability may violate the 

``Anti-Deficiency Act'' (31 U.S.C. 1341).

    (2) It is recognized that potential contractors have a need to 

obtain procurement information at the earliest possible moment in order 

to make timely preparations. To this end, procurement personnel are 

expected to act as efficiently and expeditiously as possible on all 

procurement actions.



[49 FR 12607, Mar. 29, 1974, as amended at 54 FR 30044, July 18, 1989; 

54 FR 40064, Sept. 29, 1989]