As a non-appropriated federal agency, FOH operates much like a private sector organization. This means that we must cover our operating costs with funds collected through the services we provide. However, unlike our private sector counterparts, FOH makes no profit. By Congressional mandate, FOH may charge only our operating cost for services; no profits or fees.
Agencies receive services through an agreement process. Authorized representatives from FOH and the requesting agency sign an Interagency or Interservice Agreement (IAA/ISSA, or IAA). The IAA serves to outline the goods or services to be furnished, reporting requirements, method for the transfer of funds, and if appropriate, acquisition authority for any contracts to be awarded pursuant to the IAA. In addition, agencies can be assured that FOH will comply with all Federal Acquisition Regulation (FAR) requirements via full and open competition when FOH procures any additional services for our customers.
The use of IAAs is preferable to our customer agencies because they are: