TREASURY DIRECTIVE: 76-02

Date: October 22, 1992

Sunset Date: TBD

Expiration Date: TBD

SUBJECT: Use of Procurement Authority

1. PURPOSE. This directive sets forth Department of the Treasury policy pertaining to procurement authority and responsibility. It apprises nonprocurement personnel of the limitations of their authority when their job responsibilities require contact with commercial vendors and contractors. This directive also complements portions of the Treasury Acquisition/Procurement Regulation (TAPR), issued pursuant to Treasury Directive (TD) 76-01, and establishes procurement policies for Department of the Treasury personnel.

2. SCOPE. This directive applies to all bureaus, the Departmental Offices (DO), and the Office of Inspector General (OIG).

3. POLICY. It is the policy of the Department of the Treasury that:

a. contracting officers of Treasury bureaus who are appointed in accordance with TAPR Section 1001.603 are the exclusive agents of this Department for entering into, administering and terminating contracts or leases for personal property, real property, personal services and nonpersonal services within their respective bureaus;

b. contracting officers are also responsible for making related findings and determinations within the limitations of the authority delegated to them. Their actions must be in compliance with many statutes, regulations, Comptroller General Decisions, Board of Contract Appeals and court precedents, and other applicable requirements. Contractual commitments and changes are to be made by appointed contracting officers or personnel who, in accordance with TAPR 1001.603-3(e), are delegated procurement authority but do not require contracting officer appointments;

c. personnel with delegated procurement authority who do not require contracting officer appointments include impress fund cashiers, individuals authorized to use bankcards up to 10 percent of the small purchase threshold, and individuals authorized to place calls under blanket purchase agreements; and

d. Treasury personnel who are not contracting officers do not have authority to make commitments or promises to vendors regarding award of contracts. Nonprocurement personnel must remain mindful to keep discussions with vendors on a technical level whenever such contacts are required for them to obtain information from industry to develop realistic specifications. Treasury personnel shall not discuss procurement plans or other information that might provide preferential treatment to any vendor during any subsequent solicitation for competitive or noncompetitive offers. Nonprocurement personnel must keep the contracting officer informed of any needed vendor contact.

4. OPERATING PROCEDURES FOR NONPROCUREMENT PERSONNEL.

a. During the procurement solicitation process, Treasury personnel who are not contracting officers shall not make any changes to the terms, conditions or specifications of the solicitation document or give any information to any vendor that might provide a competitive advantage.

b. In determining technical responsiveness of vendor proposals submitted in reply to a procurement solicitation, nonprocurement personnel shall not release to any party any information relating to the number of respondents or their identity, their technical standing, or their proposal contents. This information may be considered proprietary source selection information which, if released, would be prejudicial to the competing vendors' interests and to the Government's negotiation posture.

c. Each Treasury contract shall identify an individual who is responsible for monitoring contractor technical performance, assuring that the Government receives the supplies or services contracted for in accordance with the contract's specifications, and acknowledging receipt of supplies or services. This individual is-usually from the requisitioning office and is designated as the "Contracting Officer's Technical Representative" (COTR) for the specific contract action in accordance with TAPR Section 1001.612. In monitoring a contractor's technical performance, the COTR shall not, formally or informally, direct or agree to any changes to the contract.

d. COTRs are to obtain appropriate training on their roles and responsibilities in order to safeguard the interests of the Government in its contractual relationship. Treasury Publication (TD P) 76-01.D, "Handbook for Contracting Officer's Technical Representatives," should be used as part of this training. COTRs are also required to complete training in accordance with the formal COTR Certification Program established by the Assistant Secretary (Management) on September 12, 1989. Documentation regarding COTR training, including training certificates, letters confirming course completion, or transcripts, should be provided to the contracting officer for consideration in appointing a COTR to a contract.

e. Violation of the procedures cited in paragraphs 4.a. through 4.d. may give the appearance that Treasury is not acting in good faith. Commitments made to vendors by other than the appointed contracting officers, or by their formally designated procurement agents, are unauthorized contractual obligations which cannot be condoned. Such commitments can result in formal protests by other companies, embarrassment to the Department and bureau involved, criticism by the General Accounting Office, and possible monetary loss to the employee and the firm involved. Personnel who violate the principles of this directive may also be subject to administrative censures, official letters of reprimand, or stronger disciplinary actions for more serious infractions.

5. REGULATORY COMPLIANCE. The TAPR implements the Federal Acquisition Regulation and provides policies and procedures primarily for bureau procurement personnel. Several portions of the TAPR provide instructions that pertain to nonprocurement personnel. These portions of the TAPR should be consulted as necessary. The primary areas of interest for nonprocurement personnel are:

a. ratification procedures for unauthorized contractual commitments made to vendors and bureau level and Departmental level approval requirements are contained in TAPR Subpart 1001.602-3;

b. guidelines on conduct regarding improper business practices and personal conflicts of interests, including standards of conduct, procurement integrity and antitrust violation provisions, are contained in TAPR Part 1003;

c. noncompetitive procurements and justifications required for contracting on other than a full and open competition basis are covered in TAPR Part 1006;

d. lead time for contracts and requirements for advance procurement planning for major acquisitions to be submitted to the procurement office are contained in TAPR Part 1007;

e. technical specifications and standards, as well as Treasury policies regarding voluntary standards, are covered in TAPR Part 1010;

f. unsolicited proposal handling and evaluation procedures are contained in TAPR Subpart 1015.5;

g. personal service contract guidelines are covered in TAPR Section 1037.104; and

h. advisory and assistance services procurements and requirements for bureau head and Departmental approvals are covered in TAPR Subpart 1037.2.

6. CANCELLATION. TD 76-02, "Use of Procurement Authority, dated November 7, 1985, is superseded.

7. AUTHORITIES.

a. Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251 et sea.).

b. Federal Acquisition Regulation (48 CFR Chapter 1).

8. REFERENCES.

a. TD 12-11, "Procurement Authority."

b. TD 76-01, "Treasury Acquisition/Procurement Regulation."

c. TD P 76-01.D, "Contracting Officer's Technical Representatives Handbook.

9. OFFICE OF PRIMARY INTEREST. Office of Procurement, Management Programs Directorate, Office of the Deputy Assistant Secretary (Departmental Finance and Management), Office of the Assistant Secretary (Management).

David M. Nummy

Assistant Secretary (Management)