Must an agency prepare an Economy Act determination and finding before using a Franchise Fund?
No. The Economy Act does not apply when using the Interior Franchise Fund. The Government Management Reform Act of 1994 (GMRA) created the specific statutory authority for agencies to obtain common administrative services from franchise funds or inter-departmental agencies. The Economy Act is used only when a specific authority does not exist. A memorandum from the Department of Defense (DoD), dated September 25, 2003, on “Fiscal Principals and Interagency Agreements,” is also included here to support the use of organizations that have separate legal authority outside of the Economy Act. Fiscal Principals and Interagency Agreements (pdf, 67k) Please note that the Acquisition Services Directorate requires that all funding documents include the following language: “This order is issued under the express authority of the Government Management Reform Act of 1994 (P.L. 103-356)” Please refer to the Funding Information page for more information.
