Procurement Services Agreement(PSA)
An agreement establishing the terms and conditions under which procurement services will be provided between organizations.
Overview
A Procurement Services Agreement (PSA) is a formal arrangement between two organizations—often a government entity and a contracting services provider—that establishes the terms, fees, and procedures for conducting procurement activities on behalf of the requesting organization. PSAs enable organizations to leverage the procurement expertise and contract vehicles of another entity.
Why It Matters in GovCon
PSAs are the mechanism behind many assisted acquisition and shared services arrangements in government. When an agency lacks contracting capacity or needs access to specialized contract vehicles, it enters a PSA with a servicing agency. Contractors should understand PSAs because they affect who holds contracting authority and which regulations apply.
Key Details
- Assisted Acquisitions: PSAs formalize the relationship when one agency performs acquisitions on behalf of another.
- Fee Structure: The servicing organization typically charges an administrative fee, often a percentage of the contract value.
- Roles and Responsibilities: PSAs define which organization manages requirements, evaluation, award, and administration.
- Legal Authority: Assisted acquisitions under PSAs must comply with the Economy Act or other specific statutory authority.
- Examples: GSA's assisted acquisition services and DoD's Defense Contract Management Agency operate under PSA frameworks.
Related Terms
- Assisted Acquisition
- Economy Act Orders
- Interagency Agreement
- Contracting Officer
More Acquisition Terms
A payment method where the government transfers funds electronically to contractor bank accounts.
A 1994 law that simplified federal procurement by raising thresholds, reducing paperwork, and promoting commercial item acquisition.
The predecessor to SAM.gov; the legacy system where federal solicitations were posted (replaced by beta.SAM.gov).
A formal review gate in the acquisition process where senior leadership decides whether a program may proceed to the next phase, requires changes, or should be terminated.
Written narrative responses that describe a candidate or contractor capability in specific areas, historically used in federal hiring and some proposal evaluations.
Goods and services used to maintain, repair, and operate facilities and equipment — a major category of government procurement.
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