The Economy Act provides authority for what type of interagency transactions?

The Economy Act provides authority for what type of interagency transactions?

• A. To regulate military pensions.
• B. To restrict interagency collaboration.
• C. To allow federal agencies to provide supplies and services to each other on a cost-reimbursement basis.
• D. To govern international arms sales.

Answer: (C)

The Economy Act allows one federal agency to provide supplies or services to another agency and be reimbursed for the cost. This arrangement enables agencies to share capabilities and avoid duplicating procurement, using a cost-reimbursement method so the furnishing agency recovers actual costs plus any allowable overhead. It’s not a tool for pension regulation, it doesn’t impose restrictions on collaboration, and it isn’t involved with international arms sales.

The Economy Act allows one federal agency to provide supplies or services to another agency and be reimbursed for the cost. This arrangement enables agencies to share capabilities and avoid duplicating procurement, using a cost-reimbursement method so the furnishing agency recovers actual costs plus any allowable overhead. It’s not a tool for pension regulation, it doesn’t impose restrictions on collaboration, and it isn’t involved with international arms sales.