Department of the Interior
Determination and Findings
Amendment 3
FINDINGS
1.
On
2. Based on enactment of the Second Emergency
Supplemental Appropriations Act to Meet Immediate Needs Arising From the
Consequences of Hurricane Katrina, Public Law 109-62, specifically, section
101(2), Amendment 2 raised the procurement threshold for micro-purchases to
$250,000 subject to the definitions, limitations, program management
responsibilities, and additional acquisition responsibilities identified in Appendix
A to the amendment.
3.
In a Memorandum for Heads of Executive
Departments and Agencies, dated October 3, 2005 (attached), the Deputy Director for Management,
Office of Management and Budget (OMB) states that:
After consultation with officials from many of the
departments and agencies, We have concluded that the need for the increased micro-purchase threshold authorized by section 101, has diminished. We therefore request that
agencies not utilize this increased authority unless there are exceptional
circumstances.
4. The Office of Management and Budget
memorandum adds that OMB must review and clear any cases where agencies believe
that such exceptional circumstances exist (i.e., for using the micro-purchase
threshold up to $250,000), prior to
the agency or any units thereof exercising the increased micro-purchase
authority.
DETERMINATION
Based
on the attached
FINDINGS
Sec.
101. For procurements of property or services determined by the head of an
executive agency to be used in support of Hurricane Katrina rescue and relief
operations—
(1)
the emergency
procurement authority in subsection 32A( c) of the Office of Federal
Procurement Policy Act (41 U.S.C. 428a( c))may be used; and
(2)
the amount
specified in subsections (c ), (d), and (f) of section 32 of the Office of
Federal Procurement Policy Act (41 U.S.C. 428) shall be $250,000.
DETERMINATION
Based
on enactment of section 101, Public Law 109-62, and pursuant to the authority
delegated me under Part 209, Chapter 4 of the Department of the Interior
Departmental Manual, I hereby amend Determination 2.(1) of the Department of
the Interior Determination and Findings issued on September 6, 2005 to raise
the procurement threshold for micro-purchases to $250,000 only with prior express approval by the Office of Management and Budget
and subject to the definitions, limitations, program management
responsibilities, and additional acquisition responsibilities identified in Appendix
A (Revised) to this Determination
and Findings.
3. Only under exceptional circumstances, which
are defined as life-threatening circumstances and those situations posing an
immediate threat to the safety of individuals and the public health, and with prior approval of the Office of
Management and Budget (see above) are Department of the Interior
bureaus/offices authorized to exercise the increased single micro-purchase
authorities identified in section B.2.(a) and (b) of Appendix A (Revised) (attached).
/signed
P. Lynn Scarlett/ 10/04/2005
_____________________________ ____________________
P. Lynn Scarlett Date
Assistant Secretary – Policy,
Management and Budget
Appendix
A (Revised:
Management Controls for Implementing Section 101 of
the Second Emergency Supplemental Appropriations Act to Meet Immediate Needs
Arising From the Consequences of Hurricane Katrina, Public Law 109-62
A. Definitions.
For purposes of implementing
the Second Emergency Supplemental Appropriations Act to Meet Immediate Needs
Arising From the Consequences of Hurricane Katrina, Public Law 109-62, under
United States Department of the Interior Determination and Findings, Amendment 3,
the following definitions apply:
1. Transactions in support of Hurricane Katrina rescue and relief
operations: Official and necessary expenses authorized to support agency
mission including continuity of operations, and/or the disaster relief
responsibilities/efforts of other agencies as provided for under the Economy
Act or other appropriate authorities, and
used to alleviate the suffering and damage resulting from Hurricane
Katrina.
2. In good standing: To be considered in good standing, and
therefore eligible for delegation of single micropurchase authority over
$15,000, a cardholder and/or contracting officer, as appropriate, must meet the
following criteria:
3. Significant acquisition: Based on an overall assessment of risk (considering
awards to date, dollar amount of acquisitions, acquisition strategy, technical
requirements, and related factors) the Department of the Interior defines
“significant acquisition” as follows:
4. Exceptional
circumstances: Life-threatening
circumstances and those situations posing an immediate threat to the safety of
individuals and the public health.
B. Program management responsibilities.
1. Heads of contracting activities (as defined
in Department of the Interior Acquisition Regulation subpart 1402.101) without authority to redelegate to
a lower level, may, based upon disaster relief needs, authorize increased
single micropurchase procurement threshold for charge cardholders and
contracting officers in their bureau/office under the following
conditions/limitations:
a.)
Single Micropurchase Procurement Authority up to
$15,000:
Must be based on cardholder
supervisor’s written approval/endorsement.
No warrant required for use of charge card as a procurement instrument
for open market purchases and charges against Federal Supply Schedules and
other established sources over $2,500 up to $15,000.
2. In
accordance with Office of Management and Budget requirements, single
micropurchase authority may be granted to the thresholds identified below only
under exceptional circumstances (see definition A.4.) and with prior approval
by the Office of Management and Budget through the DOI Senior Procurement
Executive. Heads of contracting
activities are also responsible for identifying in writing and maintaining a
listing of those individuals that have been granted authority to use the higher
micropurchase thresholds identified in section B.2. a) and b), below.
a.) Single
Micropurchase Procurement Authority Over $15,000 up to $50,000: Only with
prior express approval by the Office of Management and Budget Through DOI
Senior Procurement Executive.
(Applies
to open market purchases over $15,000 up to $50,000.) May only be granted to cardholders that: (1)
have obtained supervisor’s written approval/endorsement; (2) are in good
standing relative to their warrant and charge card privileges; (3) have satisfactorily
completed Department of the Interior Purchase Card training and meet the 80 hour training
requirement for Level IIB contracting officers as identified in the Department
of the Interior Contracting Officer’s Warrant Manual’s section on Individual
Warrant Qualification Requirements, accessible at: http://www.doi.gov/pam/cows.html#4, i.e., Candidates must satisfactorily complete 40
hours training in Federal Acquisition Regulation simplified acquisitions and
procedures for federal supply schedule ordering, and an additional 40 hours in
one or more of the following topics:
Advanced/Intermediate
Simplified Acquisition
Price
Analysis
Contracting
by Negotiation
Basic
Contract Administration
Commercial
Items Acquisition
b.) Single
Micropurchase Procurement Authority Over $50,000 up to $250,000: Only with
prior express approval by the Office of Management and Budget Through DOI
Senior Procurement Executive.
(Applies to open
market purchases over $50,000 up to $250,000.) May only be granted to Level III
or Level IV contracting officers that: (1) have obtained supervisor’s written
approval/endorsement; (2) are in good standing relative to their warrant and
charge card privileges; (3) have satisfactorily completed Department of the
Interior Purchase Card training and meet
the training requirements for their respective warrant level as identified in
the Department of the Interior Contracting Officer’s Warrant Manual’s section
on Individual Warrant Qualification Requirements, accessible at: http://www.doi.gov/pam/cows.html#4.
3.
Bureaus/offices shall, in consultation with the Charge Card Support
Center and Bank of America: a) establish specific option sets in order to track
transactions made using any increased micropurchase authority under sec. 101 of the
Act. This
should enhance the ability of the card manager to isolate transactions associated
with the hurricane efforts for later reporting or audits. With specific, new option sets, the data will
not be commingled with fire, or other transactions not associated with the hurricane
relief. Therefore, existing option sets must not be modified; and, b) raise monthly and single transaction
limits, as appropriate.
4. In consultation with the Department of the
Interior’s Senior Procurement Executive, the Interior Chief Acquisition Officer
(CAO) will require Interior bureau and office directors to establish Hurricane
Relief Acquisition Review Boards on or about October 14,
2005 to review at regular intervals bureau/office contracting activity reports
on all “significant acquisitions” in support of Hurricane Katrina rescue and
relief operations (see Attachment B).
The boards will meet at regular intervals for the duration of the
Hurricane Katrina relief effort. The
first in a series of bureau/office board meetings will be held on or about
The
boards shall review their respective contracting activity reports on each
“significant acquisition” to verify that the transactions identified in the
reports (a) meet the definition of “transaction in support of Hurricane Katrina
rescue and relief operations” as defined in section A.1., above; (b) comply
with law and regulation; and (c) were otherwise reasonable and appropriate. Further, the boards will determine whether
modifications, terminations, or follow-on transactions are in the best interest
of the government.
5. The boards will:
a.)
Develop an aggressive but realistic timetable for completing their review activities;
and
b.)
Not more than 60 days following their initial meeting, will provide to the
Interior Chief Acquisition Officer (Attention: Senior Procurement Executive)
through their respective bureau/office director a comprehensive interim or
final report (as appropriate)* of board activities including:
· transaction review findings and recommendations (including policy recommendations, e.g., suggestions related to the mitigation efforts identified in section B.6., below);
· corrective actions taken;
·
any identified best practices; and
·
lessons learned.
* In cases
where hurricane relief support is provided for a period beyond 60 days
following the bureau/office Hurricane Relief Acquisition Review Board’s
initial meeting,
interim
reports shall be provided to the Interior CAO in intervals of not more than 60
days. A final, comprehensive
report will be required when a board has completed its
review
activities following the termination of bureau/office Katrina relief/support.
c.)
At minimum, include the bureau/office: (1) Head of Contracting Activity; (2)
Bureau Procurement Chief; (3) Chief Financial Officer; (4) Chief Information
Officer (as appropriate); (5) Engineering or Facility/Construction
representative or other program representative (as appropriate) -- or their
designees.
Representatives
from the Office of the Secretary Office of Acquisition and Property Management,
and Office of the Solicitor will be available to the boards in an advisory
capacity. Follow-up reviews of any of
the identified significant acquisition transactions may be made by
representatives of either or both the Office of Acquisition and Property
Management and the Office of the Solicitor at the Solicitor and/or the Senior
Procurement Executive’s discretion.
6. Moreover, based on their hurricane
rescue/relief experiences and needs, the boards shall, as part of their
reporting process, identify and elevate for Departmental consideration and
implementation, processes for mitigating acquisition, financial and program
management risk for future Katrina-related activities. These processes shall reflect an increased
level of oversight and attention for “significant acquisitions,” as defined
above. Mitigation efforts shall include,
at a minimum, the following outcomes.
·
Minimization of variances in cost, schedule, or performance of
“significant acquisitions.”
·
Increased program management approvals based on the risk and value of
“significant acquisitions.”
·
Additional program management responsibilities to monitor contractor
performance, as well as to verify that contractors have performed fully in
accordance with the terms & conditions of their “significant acquisitions.”
·
Additional financial management controls.
The
boards shall establish internal reporting requirements (including frequency
thereof) for Katrina-related rescue/relief acquisition activities, with
emphasis on “significant acquisitions.” Bureaus/offices will use Attachment B
(format for tracking significant acquisition information) as a reporting tool
in addition to appropriate Bank of America charge card, and Federal Procurement
Data System-Next Generation reports to meet their review, oversight and
reporting needs.
C. Additional Acquisition
Responsibilities.
1. Cardholders and ordering officials are
reminded to ensure that prices are reasonable.
These common sense determinations may take into consideration the
extraordinary circumstances of the rescue and recovery operations.
2. Although there is no
absolute requirement to award micropurchases to small businesses,
bureaus/offices using this authority are expected to provide small businesses
with maximum practicable opportunity under the circumstances to participate in
federal acquisitions as prime contractors and subcontractors. Where possible and consistent with efficient
acquisition of needed supplies and services, local small businesses should be
given priority.
3. Section 307 of the
Stafford Act (P.L. 93-288) establishes a preference, to the extent feasible and
practicable, for contracting with local organizations, firms, or individuals
for debris clearance, distribution of supplies, reconstruction, and other major
disaster or emergency assistance activities.
4. When conducting acquisitions
for other Federal agencies, cognizant contracting officers and funds certifying
officials will apply additional oversight to ensure the requesting agency has:
a.) the
authority to make the purchase;
b.) provided sufficient funds; and
c.) approved the statement of work, and otherwise
concurs with the acquisition and program management plan established for the
acquisition.
Cognizant
contracting officers shall fully document the transaction, including the date
and time of the request, the name and contact information of the requesting
official, and funding authorization information.
5. The Federal Procurement Data System – Next
Generation’s Governmentwide $2,500 procurement transaction reporting threshold
remains in force. Effective immediately,
contracting personnel/cardholders shall include the following annotation in the
Description line of applicable transaction reports: Katrina.
Attachment B
REPORT OF “SIGNIFICANT
ACQUISITION” ACTIONS FOR THE PERIOD OF _______________ TO ________________ FOR
THE KATRINA RELIEF EFFORT
|
DOI Bureau/ Office |
Dollar Amt of Action |
Source of Funding (e.g., FEMA) |
Contract vehicle no. (e.g., contract,
purchase order, delivery order, task order no.) |
Requirement Description |
Period of Performance |
Significant
Acquisition Authority Used* |
Approving Official (e.g., CAO, SPE,
HCA, etc.) |
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*Identify type of
“Significant Acquisition” awarded. See
definition in Paragraph A of Management Controls, Appendix A.