United States Department of Agriculture
Research, Education and Economics

ARS * CSREES * ERS * NASS

Bulletin

Attached is the USDA/OCIO AGAR Advisory 58 dated October 3, 2003. Explanation of the policy along with associated ARS/CSREES/ERS/NAL TMACO (Telecommunications Mission Area Control Officer) policy and procedures are provided below. Any questions, please contact the TMACO, Brenda Katulski, at 301-504-1100 or bkatulski@ars.usda.gov

USDA/OCIO Policy

Effective November 1, 2003, PCMS purchase cards and convenience checks can no longer be used for the purchase of:

• Any “recurring” telecommunications services
• Any “non-recurring” telecommunications services over $350
• Any telecommunications supplies or equipment whose total amount ordered is over $350

Please see the advisory for definitions of covered telecommunications services, supplies, and equipment.

Exceptions To The USDA/OCIO Policy

There are two exceptions to this policy:

1. Even though the policy is effective November 1, 2003, USDA/OCIO will allow USDA agencies a one-month grace period (November 1 – November 30, 2003) to establish the appropriate NFC or government contract accounts to pay for their future invoices for telecommunications services, supplies, and equipment covered under this policy. Invoices for telecommunications services, supplies, and equipment covered under this policy that were ordered prior to November 1 may be paid by PCMS purchase card or convenience check during the one month grace period to ensure that payment is made on time. This is permissible as long as a new account has been, or will soon be, established at NFC or through a government contract and will be used to pay the next month’s invoice. However, invoices for telecommunications services, supplies, and equipment covered under this policy that are ordered after November 1 must be paid by the appropriate NFC or government contract account.
   
2. Purchases necessitated by emergencies. An emergency is defined as an unplanned event that:
   
• could cause death or significant injury to employees or the public;
• ould shut down or disrupt operations;
• could cause physical or environmental damage

Per the USDA/OCIO TNSMP (Telecommunications Network Stabilization and Migration Program) established in April 1997, agencies are required to plan for their telecommunications services and equipment in order to support their agency mission critical program initiatives. This policy was incorporated into the ARS ARMPS process. CSREES, ERS, and NAL have similar processes in place. Therefore, failure to plan for a telecommunications requirement (covered services, supplies, and equipment) does not constitute an emergency.

In addition, PCMS purchase cards and convenience checks can not be used to pay for covered telecommunications services, supplies, and equipment ordered from a government contract even if the contract or related AGAR allows for purchase cards and/or convenience checks to be used for payment.

Objectives of the USDA/OCIO Policy

The objectives are as follows:

• Provide an easier way for the Dept and the agencies to account for the inventory, payment, and total expenditures of their telecommunications services, supplies, and equipment
• Establish specific payment methods for each covered telecommunications service, supply, equipment
• Support migration of payment of covered telecommunications recurring services to TELE
• Support migration of payment of covered telecommunications non-recurring services, supplies, and equipment to PRCH

Ordering Procedures For Telecommunications Services, Supplies, and Equipment Covered Under This Policy

In lieu of AGAR Advisory 58 guidance on Page 3, Acquisition of Covered Telecommunications Resources, the ordering procedures below should be followed instead. The reasons for disregarding the AGAR paragraph is as follows: 1) It falsely states that all covered telecommunications services, supplies, and equipment should be requested via the TMACO or DAR. In reality, there are different contacts depending on the type of service, supply, and/or equipment to be ordered and 2) The paragraph implies that the FTS2001 contract is a main contract vehicle for these covered telecommunications items. In reality, the FTS2001 contract only covers some of the items and there are other contracts and direct ordering for the other items. The chart below provides the correct information for each covered item.

Below is a list of covered telecommunications services, supplies, and equipment under this policy that you may need to order and the appropriate person or group to initiate the order process through. In addition, the appropriate government contract or NFC payment system to pay for these covered telecommunications services, supplies, and equipment is also listed (see the Payment Procedures section for further guidance). If you are interested in ordering a telecommunications service, supply, or equipment and you are not sure what type it falls under as listed below, please contact the TMACO, Brenda Katulski, at 301-504-1100 or bkatulski@ars.usda.gov for further guidance.

Payment Procedures For Telecommunications Services, Supplies, and Equipment Covered Under This Policy

In lieu of AGAR Advisory 58 guidance on Page 3, Payment for Covered Telecommunications Resources, the payment procedures below should be followed instead. The reasons for disregarding the AGAR paragraph are as follows: 1) USDA/OCIO incorrectly stated that FFIS is a payment option. They will be amending that part of the policy in the near future to exclude FFIS and 2) USDA/OCIO is currently drafting new policy that will further define which payment systems should be used for which covered telecommunications services, supplies, and equipment. The procedures below are in line with the expected new policy.

Identify the appropriate government contract or NFC payment system that should be used for the telecommunications services, supplies, and or equipment you would like to purchase using the ordering chart listed above. Blanket Purchase Agreements (BPAs) may not be used for covered telecommunications services. Purchase cards used by Contracting Officers whose transactions flow to PRCH can be used if PRCH is mentioned as a payment option listed in the ordering chart above.

If FTS2001, you do not have to establish an account for payment. The TMACO works with each of the agencies and ARS/AFM/FMD at the beginning of each FY to establish each agency’s NFC FFIS management fund account to pay for all of the agency’s FTS2001 services for the whole FY. All FTS2001 services you order will be paid by your agency’s NFC FFIS FTS2001 management fund account.

If FTSP, work with the Wash Metro Area contact (Tony, Glenn, Gary, or Ouida) or the local GSA switch manager to order off an existing account or to establish a new account, if necessary. The Wash Metro Area contacts work with the agencies they service and ARS/AFM/FMD at the beginning of each FY to establish the funding for each of the agency’s accounts. All FTSP services you order with them will be paid by the appropriate agency account. If you are a field location ordering services from the local GSA switch manager, the manager will assist you in ordering off an existing agency account or establishing a new account. Your location is responsible for re-newing the funding for this account each FY. The local GSA switch manager can provide guidance on this process.

If Greenbook, you do not have to establish an account for payment. Your agency is billed for the service to one greenbook account.

If PRCH, prepare an AD-700 and follow your current agency procedures for processing the AD-700.

If TELE, follow the procedures listed below to establish a new account:

1. If you do not have a TUMS login ID and password, contact your agency security officer to obtain them. TUMS is an on-line NFC system for establishing new TELE accounts and modifying existing ones electronically in lieu of a hard copy AD-474. NFC no longer accepts hard copy AD 474s.
   
2. Prior to accessing TUMS, complete your order with the vendor and obtain an account number. For local voice service, the vendor will usually use one of your main telephone numbers to establish your account with them. For other kinds of services, the account numbers with those vendors vary.
   
3. Ask the vendor to send two copies of the invoices – one to you for your review and one to NFC for payment from your TELE account (NFC, Attn: Misc Pay Section, PO Box 60000, New Orleans, LA 70160). If the vendor will not send two copies and does not have an on-line billing system that you can access for review, then you will need to decide whether you want the invoice to go directly to NFC or to you. If to you, then you will be responsible for sending it to NFC upon receipt so that it will be paid on time thereby avoiding late fees or interest charges.
   
4. Once you have received your TUMS login ID and password, go to www.nfc.usda.gov and select the TUMS icon on the right-hand side under Application Launchpad.
   
5. Enter your login ID and password
   
6. Under service category, select commercial telephone
   
7. Under account action, select add a new account
   
8. Enter the account number (see 2 above). It is very important to enter the correct account number because NFC will not be able to process invoices from your vendor if the account number on the invoices and the account number you enter here do not completely match.
   
9. Select agency name
   
10. Select submit
    
11. Select the T&A contact point for your office/location from the drop down list provided. If you cannot identify your T&A contact, please contact the TMACO, Brenda Katulski, at 301-504-1100 or bkatulski@ars.usda.gov for assistance.
    
12. Select the service type. Telephone services apply to all local voice service, long distance voice service, and secure telephone service. Wireless services applies to all cellular and satellite services. Leased or dedicated telephone lines apply to all local dedicated circuits used for data or video. Other Misc Telephone applies to maintenance/management services. Telephone credit card should not be selected because all calling cards should be ordered through FTS2001.
    
13. Enter vendor name
    
14. Select billing cycle – normally monthly
    
15. Enter billing date – date service started or will start
    
16. Enter service location address – where service is ordered for the location or for someone that works at the location
    
17. Enter service dollar limit and toll dollar limit, if applicable. Service limit (total monthly bill for everything) should be the maximum amount that you want NFC to pay without notifying the T&A contact point to get approval to pay the bill. The same thing applies to toll limit, which is the total monthly bill for all telephone calls. Your limit amounts should be just slightly above what you expect to pay in these areas each month. (Note: These limits apply only to each monthly invoice. Any charges, including interest, that carry over from previous invoices that were not paid the month they were due will be placed in the arrears amount owed. To pay any portion of the arrears amount, NFC’s Misc Pay Section must be contacted and given permission to pay.)
    
18. Enter accounting number, % of the bill to be paid from that accounting number, and the associated fund code. If less than 100%, then enter however many accounting numbers necessary to add up to 100%.
    
19. Press the submit button

TUMS is updated daily at 2pm every business day so your new account will be established that same day if entered before 2pm or at 2pm the next day. After you have established your TELE account in TUMS, you can use TUMS to modify your TELE account information and to view account invoice payment history for the past 3 months.

Another way to review your TELE account is via the NFC Reporting Center, which allows you print a standard report, or to create a more personalized report. To access the NFC Reporting Center, you will need an ID and password. Contact your agency security officer to obtain them.

If you have any questions or problems using TUMS, please contact the NFC Misc Pay Section at 1-800-421-0323 or misc@usda.gov. Also, NFC has just prepared a TUMS (Telephone & Utilities Maintenance System) manual that provides far more detail. The manual can be accessed at http://dab.nfc.usda.gov/pubs/na-pubsmain.html.

Emergency Payment Procedures For Telecommunications Services, Supplies, and Equipment Covered Under This Policy Purchased By A Purchase Card/Convenience Check As Necessitated By An Emergency (see definition above)

Agencies must justify these purchases by demonstrating that an emergency existed and the purchase was necessitated by the emergency. In lieu of AGAR Advisory guidance on Page 4, Emergencies, the procedures below should be followed instead. The reason for disregarding the AGAR paragraph is because all justifications should be sent to the TMACO for review and comment before being forwarded to USDA/OCIO.

1. Within seven business days, the purchaser must send the following information to the TMACO, Brenda Katulski, at bkatulski@ars.usda.gov:
   
   1. Agency contact information regarding this purchase to include name, telephone number, and e-mail address;
   2. Agency organizational name and full physical address (no PO Box) of location for which the telecommunications services, supplies, or equipment were purchased;
   3. Specific description of the telecommunications services, supplies, and/or equipment that were purchased;
   4. For each item purchased, provide vendor name, cost, quantity, and, if appropriate, manufacturer name and model or version;
   5. Justification for why the purchase was considered an emergency and why TELE, PRCH, FTS2001, or FTSP was not used for payment
      
2. The TMACO will review the justification statement.
   
3. If all of the information requested above was submitted and the justification supports an emergency as defined by the AGAR Advisory 58, the TMACO will forward the justification to the USDA Associate Chief Information Officer for Telecommunications, Jan Lilja, with a statement of support within seven business days. The agency contact will be copied on all communications between the TMACO and the USDA/OCIO.
   
4. If all of the information requested above was not submitted or the justification does not support an emergency as defined by the AGAR Advisory 58, the TMACO will work with the agency contact to complete the justification statement. The TMACO will then forward the justification to the USDA Associate Chief Information Officer for Telecommunications, Jan Lilja, with either a statement of approval/non-approval within seven business days. The agency contact will be copied on all communications between the TMACO and the USDA/OCIO. In a case of non-support, the TMACO will explain to the agency contact in advance why the purchase was not considered an emergency and the appropriate procedures that need to be taken to avoid another policy violation.

USDA/OCIO Planned Monitoring Of Compliance Of The Policy

Starting December 1, 2003, USDA/OCIO plans to monitor NFC’s PCMS system to capture any purchase card/convenience check payments of invoices for telecommunications services, supplies, and equipment that are covered under this policy. They will map the payments to emergency purchase card/convenience check justification statements sent to the USDA Associate Chief Information Officer for Telecommunications (as described in procedures above). USDA/OCIO will contact the associated agency TMACO if a justification statement was not sent or if the justification statement sent did not provide enough information to justify an emergency purchase. If after further investigation, USDA/OCIO determines that a purchase card/convenience check was not used for an emergency purchase, it is possible that the purchase card/convenience checks may be cancelled by USDA/OCIO. Each violation will be dealt with on a case-by-case basis with the possibility (but not guarantee) that leniency may be shown to first time violators.

Agency procurement personnel are not responsible for monitoring agency compliance to this policy. However, they may be required to handle requests from USDA/OCIO via the TMACO to cancel agency purchase cards/convenience checks.

/s/
Dr. Melinda L. McClanahan
Chief Information Officer
Agricultural Research Service

October 3, 2003

AGAR ADVISORY

UNITED STATES DEPARTMENT OF AGRICULTURE
OFFICE OF PROCUREMENT AND PROPERTY MANAGEMENT
PROCUREMENT POLICY DIVISION
AGAR ADVISORY NO. 58

Prohibition on Using Purchase Cards or Convenience Checks
To Acquire Telecommunications

INTRODUCTION:  This Agriculture Acquisition Regulation (AGAR) Advisory has been prepared to inform USDA agencies and offices about a change to policy governing the use of purchase cards and convenience checks.  Effective November 1, 2003, USDA agencies may no longer use purchase cards or convenience checks to purchase or to pay for telecommunications services, supplies, or equipment, except as provided in this Advisory. 

SUMMARY:  USDA is taking steps to improve its management of telecommunications resources.  In order to improve control over expenditures for telecommunications, it is necessary to limit the ways by which telecommunication resources may be acquired.  Accordingly, it is necessary to limit the use of the purchase card and convenience checks for purchase of, or payment for, telecommunications resources. 

In moving authority to purchase small requirements from contracting offices to individuals who use the supplies or services purchased, the purchase card program has substantially decentralized decision-making authority for such purchases. The decentralization has adversely affected USDA's ability to effectively and efficiently monitor telecommunications acquisition costs and implement and enforce consistent telecommunications procurement standards.

Departmental Regulation (DR) 5013-6, Use of the Purchase Card and Convenience Check, already provides that the purchase card and convenience check may not be used to acquire major telecommunications services.  The Senior Procurement Executive and the Chief Information Officer have further determined that the card and check should be used strictly for emergency use and for purchases of telecommunications products and non-transmission services not exceeding $350.00.  DR 5013-6 will be revised to incorporate this change of policy on the use of purchase cards and convenience checks.

DEFINITIONS:  Telecommunications includes the transmission, emission, or reception of signals, writing, images, sounds, or intelligence of any nature, by wire, cable, satellite, fiber optics, laser, radio, or any other electronic, electric, electromagnetic, or acoustically coupled means. This Advisory addresses the acquisition of products and services that support telecommunications. 

Telecommunications products include, but are not limited to: any component of a network involved in the transmission of analog or digital communications including network routers, bridges, hubs, and Web servers; telecommunications software such as email, groupware or facsimile software; and, end-user devices like telephones, wireless devices and video equipment. Products also include supplies such as cables, jacks, cords, modems, network interface cards, and more.

Telecommunication services include, but are not necessarily limited to: Service Level Agreements (SLAs) for wireline and wireless carriers; Internet Service Provider (ISP) agreements; contract services for the planning, design, development, installation, operations and maintenance of telecommunications networks; and program management support for telecommunications projects.

Telecommunications resources are telecommunications products and/or services.

Covered telecommunications resources are telecommunications resources that are covered by this Advisory; i.e., resources that may not be acquired with a purchase card or convenience checks. 

The following types of telecommunications resources are not covered by this Advisory:

1. Telecommunications accessories and incidental supplies or equipment, when the total amount ordered is less than $350.00; e.g., cords, cabling, jacks, wall plates, interface cards, termination plugs, antennas, cell phones, cell batteries, and similar items;
2. Purchase of "one time" telecommunications services when the amount of the order is less than $350.00; e.g., equipment repair.  (Note:  User fees for service of any duration and charges or fees for other recurring services are payments for covered telecommunications resources and may not be paid for with the purchase card or convenience check.);
3. Purchases necessitated by emergencies.  An emergency is any unplanned event that can cause death or significant injury to employees or the public; that can shut down or disrupt operations; or that can cause physical or environmental damage, such as national or declared emergencies, fire emergencies, hazardous materials incidents, storms, communications failure, disaster recovery, and similar emergencies.  Purchases also may be made on an emergency basis when an unforeseen need of compelling urgency for telecommunications resources arises; i.e., the Government would be seriously injured if it could not immediately obtain telecommunications resources.  Failure to plan for a requirement does not

constitute an emergency.  Use of the purchase card or convenience check for emergency purchases must be justified as provided by Emergencies, below.

REFERENCES:

7 CFR 2.25, Delegations of Authority, Chief Information Officer
DR 3300-001, Telecommunications & Internet Services and Use, March 23, 1999
NFC Bulletin TELE 02-2, Telephone and Utilities Maintenance System (TUMS), October 1, 2002
NFC Procedures, Telephone Vendors System (TELE), Title II, Chapter 3, Section 3, November 2001

SPECIFIC ISSUES: 

Prohibition on Using Purchase Cards or Convenience Checks To Acquire Covered Telecommunications.  Neither the purchase card nor the convenience check may be used to purchase or to pay for covered telecommunications resources. 

Revocation of Delegated Authority.  Cardholder authority to purchase covered telecommunications resources using purchase cards or convenience checks is hereby revoked as of the effective date of this Advisory.

Acquisition of Covered Telecommunications Resources.  Covered telecommunications resources shall be requested through agency Telecommunication Mission Area Control Officers (TMACO) or Dedicated Agency Representatives (DAR) and acquired in accordance with DR 3300-001 and agency procedures. The FTS2001 GSA contract offers favorable pricing for telecommunications services.  More information about FTS 2001 is provided in Attachment A.  Questions about acquiring telecommunications should be directed to the agency TMACO or to the DAR. 

Payment for Covered Telecommunications Resources.  Agencies will use the Telephone Vendors System (TELE), the Purchase Order System (PRCH), the Foundation Financial Information System (FFIS), or Federal Telephone System Payments (FTSP), as appropriate, to establish payment for all charges for covered telecommunications resources.  TELE and FTSP are used to pay for recurring telecommunications services, such as user charges, toll charges, or monthly charges for Internet access or cell phone service.  PRCH and FFIS are used for purchases through a contract vehicle; e.g., purchases of telecommunications equipment.  Use the online Telephone and Utilities Maintenance System (TUMS) to set up accounts for telecommunications services in TELE or contact your Designated Agency Representative (DAR) to set up accounts for toll charges or services paid through FTSP.

Invoices received at the National Finance Center (NFC) are processed in TELE within 3 days and scheduled for payment provided:  a) the account is set-up correctly and b) the invoice passes the system edits designed to detect duplicate and/or erroneous charges.  Payment occurs 10 days before the invoice due date.

Emergencies.  Telecommunications resources purchased to respond to emergencies are not covered telecommunications resources.  Agencies may use the purchase card or convenience checks to acquire telecommunications resources for emergencies.  However, agencies that use the card or checks for emergency telecommunications purchases must justify each purchase by demonstrating that an emergency existed and that the purchase was necessitated by the emergency.  Within 15 business days after the purchase, agencies that used the purchase card or convenience checks to obtain telecommunications resources on an emergency basis shall notify the Associate Chief Information Officer for Telecommunications.   Agencies shall justify the purchase and provide the following information to OCIO:

1. Specific description of the telecommunications supplies, equipment, or services that were purchased;
2. Cost broken out per item, quantity, manufacturer name and model or version;
3. City and State of office or other location where items or services were required;
4. Why the agency could not use TELE, PRCH, FFIS, or FTSP to pay for the required services (if applicable);
5. Justification for acquisition and why it was impracticable to acquire the needed supplies, equipment, or services through the supporting telecommunications office; and,
6. Agency contact information - to include a name, telephone number, and e-mail address of the appropriate agency point of contact.

If you have questions or comments regarding this advisory, please contact Joseph Daragan by phone ((202) 720-5729), fax ((202) 720-8972), or e-mail (joe.daragan@usda.gov). 

This AGAR Advisory will appear on the USDA World Wide Web site at the following URL: http://www.usda.gov/procurement/policy/advisories.html.

EFFECTIVE DATE:  This advisory is effective from November 1, 2003 until the revision to DR 5013-6 is issued.

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