Sign In
  • Question

    What documentation needs to be included in a Consignment Agreement? Is there a checklist?


    Answer

    A previously submitted Ask A Professor question on consignment agreements provided the following information:
    "Consignment agreements are not addressed in the FAR. They are used sparingly and only for a very limited purpose. We found nothing regulatory that prohibits the use of these types of agreements, however, they should be used only when this method of acquisition is determined to be in the best interests of the government. 
    A consignment agreement is an agreement (not a contract) for a specified period of time under which a vendor provides an item(s) for government use and the vendor receives reimbursement only if and when the government actually uses the item. Unused items are returned to the vendor at the end of the effective period of the agreement without reimbursement or other expense to the Government."

    For your information, policy/guidance on consignment agreement use within the federal government is scarce. For your reference, the only relatively current guidance comes from the Department of Veterans Affairs where consignment agreements are in limited use primarily for non-biological implantable devices. The current version of the Veterans Affairs Acquisition Regulation (VAAR) mentions review of consignment agreements in passing under 801.602-72(8).




    Open full Question Details