| # | Description |
|---|---|
| 13.201 | General. |
| 13.202 | Purchase guidelines. |
| # | Description |
|---|---|
| 13.401 | General. |
| 13.402 | Conditions for use. |
| 13.403 | Preparation and execution of orders. |
| 13.404 | Contract clause. |
| # | Description |
|---|---|
| 13.500 | General. |
| 13.501 | Special documentation requirements. |
"Authorized individual" means a person who has been granted authority, in accordance with agency procedures, to acquire supplies and services in accordance with this part.
"Governmentwide commercial purchase card" means a purchase card, similar in nature to a commercial credit card, issued to authorized agency personnel to use to acquire and to pay for supplies and services.
"Imprest fund" means a cash fund of a fixed amount established by an advance of funds, without charge to an appropriation, from an agency finance or disbursing officer to a duly appointed cashier, for disbursement as needed from time to time in making payment in cash for relatively small amounts.
"Purchase order" means an offer by the Government to buy supplies or services, including construction and research and development, upon specified terms and conditions, using simplified acquisition procedures.
"Third party draft" means an agency bank draft, similar to a check, that is used to acquire and to pay for supplies and services. (See Treasury Financial Management Manual, Section 3040.70.)
(a) Reduce administrative costs;
(b) Improve opportunities for small, small disadvantaged, and women-owned small business concerns to obtain a fair proportion of Government contracts;
(c) Promote efficiency and economy in contracting; and
(d) Avoid unnecessary burdens for agencies and contractors.
(1) Required sources of supply under Part 8 (e.g., Federal Prison Industries, Committee for Purchase from People Who are Blind or Severely Disabled, and Federal Supply Schedule contracts);
(2) Existing indefinite delivery/indefinite quantity contracts; or
(3) Other established contracts.
(b)(1) Each acquisition of supplies or services that has an anticipated dollar value exceeding $2,500 and not exceeding $100,000 is reserved exclusively for small business concerns and shall be set aside (see 19.000 and Subpart 19.5). See 19.502-2 for exceptions.
(2) Each written solicitation under a set-aside shall contain the appropriate provisions prescribed by Part 19. If the solicitation is oral, however, information substantially identical to that in the provision shall be given to potential quoters.
(c) The contracting office shall use simplified acquisition procedures for contract actions exceeding $50,000 after December 31, 1999, only if the office's cognizant agency has certified full FACNET capability in accordance with 4.505-2. This limitation does not apply to acquisitions of commercial items conducted using Subpart 13.5.
(d) The contracting officer shall not use simplified acquisition procedures to acquire supplies and services if the anticipated award will exceed the simplified acquisition threshold (or $5,000,000, including options, for acquisitions of commercial items using Subpart 13.5). Do not break down requirements aggregating more than the simplified acquisition threshold (or for commercial items, the threshold in Subpart 13.5) or the micro-purchase threshold into several purchases that are less than the applicable threshold merely to--
(1) Permit use of simplified acquisition procedures; or
(2) Avoid any requirement that applies to purchases exceeding the micro-purchase threshold.
(e) An agency that has specific statutory authority to acquire personal services (see 37.104) may use simplified acquisition procedures to acquire those services.
(f) Agencies shall use the Governmentwide commercial purchase card and electronic purchasing techniques to the maximum extent practicable in conducting simplified acquisitions.
(g) For contract actions exceeding the micro-purchase threshold but not exceeding the simplified acquisition threshold, agencies shall maximize the use of FACNET, when practicable and cost-effective (see 4.506), to acquire supplies and services (including construction, research and development, and architect-engineer). FACNET also may be used for contract actions exceeding the simplified acquisition threshold. Drawings and lengthy specifications can be provided off-line in hard copy or through other appropriate means.
(h) Authorized individuals shall make purchases in the simplified manner that is most suitable, efficient, and economical based on the circumstances of each acquisition. For acquisitions not expected to exceed--
(1) The simplified acquisition threshold for other than commercial items, use any appropriate combination of the procedures in Parts 13, 14, 15, 35, or 36, including the use of Standard Form 1442, Solicitation, Offer, and Award (Construction, Alteration, or Repair), for construction contracts (see 36.701(b)); or
(2) $5 million for commercial items, use any appropriate combination of the procedures in Parts 12, 13, 14, and 15 (see paragraph (d) of this section).
(i) In addition to other considerations, contracting officers shall--
(1) Promote competition to the maximum extent practicable (see 13.104);
(2) Establish deadlines for the submission of responses to solicitations that afford suppliers a reasonable opportunity to respond (see 5.203);
(3) Consider all quotations or offers that are timely received. For evaluation of quotations or offers conducted through FACNET, see 13.106-2(b)(3); and
(4) Use innovative approaches, to the maximum extent practicable, in awarding contracts using simplified acquisition procedures.
(b) When appropriate, the contracting officer may ask the supplier to indicate acceptance of an order by notification to the Government, preferably in writing, as defined at 2.101. In other circumstances, the supplier may indicate acceptance by furnishing the supplies or services ordered or by proceeding with the work to the point where substantial performance has occurred.
(c) If the Government issues an order resulting from a quotation, the Government may (by written notice to the supplier, at any time before acceptance occurs) withdraw, amend, or cancel its offer. (See 13.302-4 for procedures on termination or cancellation of purchase orders.)
(1) 41 U.S.C. 57(a) and (b) (Anti-Kickback Act of 1986). (Only the requirement for the incorporation of the contractor procedures for the prevention and detection of violations, and the contractual requirement for contractor cooperation in investigations are inapplicable.)
(2) 40 U.S.C. 270a (Miller Act). (Although the Miller Act does not apply to contracts at or below the simplified acquisition threshold, alternative forms of payment protection for suppliers of labor and material (see 28.102) are still required if the contract exceeds $25,000.)
(3) 40 U.S.C. 327 - 333 (Contract Work Hours and Safety Standards Act--Overtime Compensation).
(4) 41 U.S.C. 701(a)(1) (Section 5152 of the Drug-Free Workplace Act of 1988), except for individuals.
(5) 42 U.S.C. 6962 (Solid Waste Disposal Act). (Only the requirement for providing the estimate of recovered material utilized in the performance of the contract is inapplicable.)
(6) 10 U.S.C. 2306(b) and 41 U.S.C. 254(a) (Contract Clause Regarding Contingent Fees).
(7) 10 U.S.C. 2313 and 41 U.S.C. 254(c) (Authority to Examine Books and Records of Contractors).
(8) 10 U.S.C. 2402 and 41 U.S.C. 253g (Prohibition on Limiting Subcontractor Direct Sales to the United States).
(b) The Federal Acquisition Regulatory (FAR) Council will include any law enacted after October 13, 1994, that sets forth policies, procedures, requirements, or restrictions for the acquisition of property or services, on the list set forth in paragraph (a) of this section. The FAR Council may make exceptions when it determines in writing that it is in the best interest of the Government that the enactment should apply to contracts or subcontracts not greater than the simplified acquisition threshold.
(c) The provisions of paragraph (b) of this section do not apply to laws that--
(1) Provide for criminal or civil penalties; or
(2) Specifically state that notwithstanding the language of Section 4101, Public Law 103-355, the enactment will be applicable to contracts or subcontracts in amounts not greater than the simplified acquisition threshold.
(d) Any individual may petition the Administrator, Office of Federal Procurement Policy (OFPP), to include any applicable provision of law not included on the list set forth in paragraph (a) of this section unless the FAR Council has already determined in writing that the law is applicable. The Administrator, OFPP, will include the law on the list in paragraph (a) of this section unless the FAR Council makes a determination that it is applicable within 60 days of receiving the petition.
(a) 52.203-5, Covenant Against Contingent Fees.
(b) 52.203-6, Restrictions on Subcontractor Sales to the Government.
(c) 52.203-7, Anti-Kickback Procedures.
(d) 52.215-2, Audits and Records--Negotiation.
(e) 52.222-4, Contract Work Hours and Safety Standards Act--Overtime Compensation.
(f) 52.223-6, Drug-Free Workplace, except for individuals.
(g) 52.223-9, Certification and Estimate of Percentage of Recovered Material Content for EPA Designated Items.
(1) Comply with the policy in 7.202 relating to economic purchase quantities, when practicable;
(2) Satisfy the procedures described in Subpart 19.6 with respect to Certificates of Competency before rejecting a quotation, oral or written, from a small business concern determined to be nonresponsible (see Subpart 9.1);
(3) Use United States-owned excess or near-excess foreign currency, if appropriate, in making payments under simplified acquisition procedures (see Subpart 25.3); and
(4) Provide for the inspection of supplies or services as prescribed in 46.404.
(b) In making purchases, contracting officers should--
(1) Include related items (such as small hardware items or spare parts for vehicles) in one solicitation and make award on an "all-or-none" or "multiple award" basis provided suppliers are so advised when quotations or offers are requested;
(2) Incorporate provisions and clauses by reference in solicitations and in awards under requests for quotations, provided the requirements in 52.102 are satisfied;
(3) Make maximum effort to obtain trade and prompt payment discounts (see 14.408-3). Prompt payment discounts shall not be considered in the evaluation of quotations; and
(4) Use bulk funding to the maximum extent practicable. Bulk funding is a system whereby the contracting officer receives authorization from a fiscal and accounting officer to obligate funds on purchase documents against a specified lump sum of funds reserved for the purpose for a specified period of time rather than obtaining individual obligational authority on each purchase document. Bulk funding is particularly appropriate if numerous purchases using the same type of funds are to be made during a given period.
(1) Small business.
(2) Small disadvantaged business.
(3) Women-owned small business.
(b) The status information may be used as the basis to ensure that small business concerns are provided the maximum practicable opportunities to respond to solicitations issued using simplified acquisition procedures.
(a) The pricing information is current; and
(b) The Government obtains the benefit of maximum discounts before award.
(a) The contracting officer shall not--
(1) Solicit quotations based on personal preference; or
(2) Restrict solicitation to suppliers of well-known and widely distributed makes or brands.
(b) If using simplified acquisition procedures and not using FACNET, maximum practicable competition ordinarily can be obtained by soliciting quotations or offers from sources within the local trade area. Unless the contract action requires synopsis pursuant to 5.101 and an exception under 5.202 is not applicable, consider solicitation of at least three sources to promote competition to the maximum extent practicable. Whenever practicable, request quotations or offers from two sources not included in the previous solicitation.
(1) FACNET is used for an acquisition at or below the simplified acquisition threshold; or
(2) An exception in 5.202 applies.
(b) When acquiring commercial items, the contracting officer may use a combined synopsis/solicitation. In such cases, a separate solicitation is not required. The contracting officer must include enough information to permit suppliers to develop quotations or offers.
(1)(i) The nature of the article or service to be purchased and whether it is highly competitive and readily available in several makes or brands, or is relatively noncompetitive.
(ii) Information obtained in making recent purchases of the same or similar item.
(iii) The urgency of the proposed purchase.
(iv) The dollar value of the proposed purchase.
(v) Past experience concerning specific dealers' prices.
(2) When soliciting quotations or offers, the contracting officer shall notify potential quoters or offerors of the basis on which award will be made (price alone or price and other factors, e.g., past performance and quality). Contracting officers are encouraged to use best value. Solicitations are not required to state the relative importance assigned to each evaluation factor and subfactor, nor are they required to include subfactors.
(b) Soliciting from a single source. (1) For purchases not exceeding the simplified acquisition threshold, contracting officers may solicit from one source if the contracting officer determines that the circumstances of the contract action deem only one source reasonably available (e.g., urgency, exclusive licensing agreements, or industrial mobilization).
(2) For sole source acquisitions of commercial items in excess of the simplified acquisition threshold conducted pursuant to Subpart 13.5, the requirements at 13.501(a) apply.
(c) Soliciting orally. (1) The contracting officer shall solicit quotations orally to the maximum extent practicable, if--
(i) The acquisition does not exceed the simplified acquisition threshold;
(ii) FACNET is not available or the contracting office has a written determination that it is not practicable or cost-effective to purchase via FACNET (see 4.506); and
(iii) Notice is not required under 5.101.
(2) However, an oral solicitation may not be practicable for contract actions exceeding $25,000 unless covered by an exception in 5.202.
(d) Written solicitations. If obtaining electronic or oral quotations is uneconomical or impracticable, the contracting officer should issue paper solicitations for contract actions likely to exceed $25,000. The contracting officer shall issue a written solicitation for construction requirements exceeding $2,000.
(e) Use of options. Options may be included in solicitations, provided the requirements of Subpart 17.2 are met and the aggregate value of the acquisition and all options does not exceed the dollar threshold for use of simplified acquisition procedures.
(f) Inquiries. An agency should respond to inquiries received through any medium (including FACNET) if doing so would not interfere with the efficient conduct of the acquisition. For an acquisition conducted through FACNET, an agency must respond to telephonic or facsimile inquiries only if it is unable to receive inquiries through FACNET.
(i) In an impartial manner; and
(ii) Inclusive of transportation charges from the shipping point of the supplier to the delivery destination.
(2) Quotations or offers shall be evaluated on the basis established in the solicitation.
(3) All quotations or offers shall be considered (see paragraph (b) of this subsection).
(b) Evaluation procedures. (1) The contracting officer has broad discretion in fashioning suitable evaluation procedures. The procedures prescribed in Parts 14 and 15 are not mandatory. At the contracting officer's discretion, one or more, but not necessarily all, of the evaluation procedures in Part 14 or 15 may be used.
(2) If using price and other factors, ensure that quotations or offers can be evaluated in an efficient and minimally burdensome fashion. Formal evaluation plans and establishing a competitive range, conducting discussions, and scoring quotations or offers are not required. Contracting offices may conduct comparative evaluations of offers. Evaluation of other factors, such as past performance--
(i) Does not require the creation or existence of a formal data base; and
(ii) May be based on information such as the contracting officer's knowledge of and previous experience with the supply or service being acquired, customer surveys, or other reasonable basis.
(3) For acquisitions conducted using FACNET, the contracting officer may--
(i) After preliminary consideration of all quotations or offers, identify from all quotations or offers received one that is suitable to the user, such as the lowest priced brand name product, and quickly screen all lower priced quotations or offers based on readily discernible value indicators, such as past performance, warranty conditions, and maintenance availability; or
(ii) Where an evaluation is based only on price and past performance, make an award based on whether the lowest priced of the quotations or offers having the highest past performance rating possible represents the best value when compared to any lower priced quotation or offer.
(1) Whenever possible, base price reasonableness on competitive quotations or offers.
(2) If only one response is received, include a statement of price reasonableness in the contract file. The statement may be based on--
(i) Market research;
(ii) Comparison of the proposed price with prices found reasonable on previous purchases;
(iii) Current price lists, catalogs, or advertisements;
(iv) A comparison with similar items in a related industry;
(v) Value analysis;
(vi) The contracting officer's personal knowledge of the item being purchased;
(vii) Comparison to an independent Government estimate; or
(viii) Any other reasonable basis.
(3) Occasionally an item can be obtained only from a supplier that quotes a minimum order price or quantity that either unreasonably exceeds stated quantity requirements or results in an unreasonable price for the quantity required. In these instances, the contracting officer should inform the requiring activity of all facts regarding the quotation or offer and ask it to confirm or alter its requirement. The file shall be documented to support the final action taken.
(b) File documentation and retention. Keep documentation to a minimum. Purchasing offices shall retain data supporting purchases (paper or electronic) to the minimum extent and duration necessary for management review purposes (see Subpart 4.8). The following illustrate the extent to which quotation or offer information should be recorded:
(1) Oral solicitations. The contracting office should establish and maintain records of oral price quotations in order to reflect clearly the propriety of placing the order at the price paid with the supplier concerned. In most cases, this will consist merely of showing the names of the suppliers contacted and the prices and other terms and conditions quoted by each.
(2) Written solicitations (see 2.101). For acquisitions not exceeding the simplified acquisition threshold, limit written records of solicitations or offers to notes or abstracts to show prices, delivery, references to printed price lists used, the supplier or suppliers contacted, and other pertinent data.
(3) Special situations. Include additional statements--
(i) Explaining the absence of competition if only one source is solicited and the acquisition does not exceed the simplified acquisition threshold (does not apply to an acquisition of utility services available from only one source); or
(ii) Supporting the award decision if other than price-related factors were considered in selecting the supplier.
(c) Notification. For acquisitions that do not exceed the simplified acquisition threshold and for which automatic notification is not provided through FACNET, notification to unsuccessful suppliers shall be given only if requested or required by 5.301.
(d) Request for information. If a supplier requests information on an award that was based on factors other than price alone, a brief explanation of the basis for the contract award decision shall be provided (see 15.503(b)(2)).
(b) The Governmentwide commercial purchase card shall be the preferred method to purchase and to pay for micro-purchases (see 2.101).
(c) Purchases at or below the micro-purchase threshold may be conducted using any of the methods described in Subpart 13.3, provided the purchaser is authorized and trained, pursuant to agency procedures, to use those methods.
(d) Micro-purchases do not require provisions or clauses, except as provided at 32.1103. This paragraph takes precedence over any other FAR requirement to the contrary, but does not prohibit the use of any clause.
(e) The requirements in Part 8 apply to purchases at or below the micro-purchase threshold.
(2) Micro-purchases may be awarded without soliciting competitive quotations if the contracting officer or individual appointed in accordance with 1.603-3(b) considers the price to be reasonable.
(3) The administrative cost of verifying the reasonableness of the price for purchases may more than offset potential savings from detecting instances of overpricing. Therefore, action to verify price reasonableness need only be taken if--
(i) The contracting officer or individual appointed in accordance with 1.603-3(b) suspects or has information to indicate that the price may not be reasonable (e.g., comparison to the previous price paid or personal knowledge of the supply or service); or
(ii) Purchasing a supply or service for which no comparable pricing information is readily available (e.g., a supply or service that is not the same as, or is not similar to, other supplies or services that have recently been purchased on a competitive basis).
(b) Documentation. If competitive quotations were solicited and award was made to other than the low quoter, documentation to support the purchase may be limited to identification of the solicited concerns and an explanation for the award decision.
(b) Agencies using the Governmentwide commercial purchase card shall establish procedures for use and control of the card that comply with the Treasury Financial Manual for Guidance of Departments and Agencies (TFM 4-4500) and that are consistent with the terms and conditions of the GSA Federal Supply Service Contract Guide for Governmentwide Commercial Purchase Card Service. Agency procedures should not limit the use of the Governmentwide commercial purchase card to micro-purchases. Agency procedures should encourage use of the card in greater dollar amounts by contracting officers to place orders and to pay for purchases against contracts established under Part 8 procedures, when authorized; and to place orders and/or make payment under other contractual instruments, when agreed to by the contractor.
(c) The Governmentwide commercial purchase card may be used to--
(1) Make micro-purchases;
(2) Place a task or delivery order (if authorized in the basic contract, basic ordering agreement, or blanket purchase agreement); or
(3) Make payments, when the contractor agrees to accept payment by the card.
(b) Purchase orders shall--
(1) Specify the quantity of supplies or scope of services ordered;
(2) Contain a determinable date by which delivery of the supplies or performance of the services is required;
(3) Provide for inspection as prescribed in Part 46. Generally, inspection and acceptance should be at destination. Source inspection should be specified only if required by Part 46. When inspection and acceptance will be performed at destination, advance copies of the purchase order or equivalent notice shall be furnished to the consignee(s) for material receipt purposes. Receiving reports shall be accomplished immediately upon receipt and acceptance of supplies;
(4) Specify f.o.b. destination for supplies to be delivered within the United States, except Alaska or Hawaii, unless there are valid reasons to the contrary; and
(5) Include any trade and prompt payment discounts that are offered, consistent with the applicable principles at 14.408-3.
(c) The contracting officer's signature on purchase orders shall be in accordance with 4.101 and the definitions at 2.101. Facsimile and electronic signature may be used in the production of purchase orders by automated methods.
(d) Limit the distribution of copies of purchase orders and related forms to the minimum deemed essential for administration and transmission of contractual information.
(e) In accordance with 31 U.S.C. 3332, electronic funds transfer (EFT) may be required for payments. See 32.1103 for instructions for use of the appropriate clause in purchase orders. When obtaining verbal quotes, the contracting officer shall inform the quoter of the EFT clause that will be in any resulting purchase order. Contracting officers shall not accept EFT payment data. The contractor shall provide all such data directly to the payment office.
(b) An unpriced purchase order may be used only when--
(1) It is impractical to obtain pricing in advance of issuance of the purchase order; and
(2) The purchase is for--
(i) Repairs to equipment requiring disassembly to determine the nature and extent of repairs;
(ii) Material available from only one source and for which cost cannot readily be established; or
(iii) Supplies or services for which prices are known to be competitive, but exact prices are not known (e.g., miscellaneous repair parts, maintenance agreements).
(c) Unpriced purchase orders may be issued on paper or electronically. A realistic monetary limitation, either for each line item or for the total order, shall be placed on each unpriced purchase order. The monetary limitation shall be an obligation subject to adjustment when the firm price is established. The contracting office shall follow up on each order to ensure timely pricing. The contracting officer or the contracting officer's designated representative shall review the invoice price and, if reasonable (see 13.106-3(a)), process the invoice for payment.
(b) Each purchase order modification shall identify the order it modifies and shall contain an appropriate modification number.
(c) A contractor's written acceptance of a purchase order modification may be required only if--
(1) Determined by the contracting officer to be necessary to ensure the contractor's compliance with the purchase order as revised; or
(2) Required by agency regulations.
(1) 12.403(d) and 52.212-4(l) for commercial items; or
(2) Part 49 or 52.213-4 for other than commercial items.
(b) If a purchase order that has not been accepted in writing by the contractor is to be canceled, the contracting officer shall notify the contractor in writing that the purchase order has been canceled, request the contractor's written acceptance of the cancellation, and proceed as follows:
(1) If the contractor accepts the cancellation and does not claim that costs were incurred as a result of beginning performance under the purchase order, no further action is required (i.e., the purchase order shall be considered canceled).
(2) If the contractor does not accept the cancellation or claims that costs were incurred as a result of beginning performance under the purchase order, the contracting officer shall process the termination action as prescribed in paragraph (a) of this subsection.
(b) The contracting officer shall insert the clause at 52.213-2, Invoices, in purchase orders that authorize advance payments (see 31 U.S.C. 3324(d)(2)) for subscriptions or other charges for newspapers, magazines, periodicals, or other publications (i.e., any publication printed, microfilmed, photocopied, or magnetically or otherwise recorded for auditory or visual usage).
(c) The contracting officer shall insert the clause at 52.213-3, Notice to Supplier, in unpriced purchase orders.
(d) The contracting officer may use the clause at 52.213-4, Terms and Conditions--Simplified Acquisitions (Other Than Commercial Items), in simplified acquisitions exceeding the micro-purchase threshold that are for other than commercial items (see 12.301). The clause--
(1) Is a compilation of the most commonly used clauses that apply to simplified acquisitions; and
(2) May be modified to fit the individual acquisition to add other needed clauses, or those clauses may be added separately. Modifications (i.e., additions, deletions, or substitutions) must not create a void or internal contradiction in the clause. For example, do not add an inspection and acceptance or termination for convenience requirement unless the existing requirement is deleted. Also, do not delete a paragraph without providing for an appropriate substitute.
(b) BPAs should be established for use by an organization responsible for providing supplies for its own operations or for other offices, installations, projects, or functions. Such organizations, for example, may be organized supply points, separate independent or detached field parties, or one-person posts or activities.
(c) The use of BPAs does not exempt an agency from the responsibility for keeping obligations and expenditures within available funds.
(1) There is a wide variety of items in a broad class of supplies or services that are generally purchased, but the exact items, quantities, and delivery requirements are not known in advance and may vary considerably.
(2) There is a need to provide commercial sources of supply for one or more offices or projects in a given area that do not have or need authority to purchase otherwise.
(3) The use of this procedure would avoid the writing of numerous purchase orders.
(4) There is no existing requirements contract for the same supply or service that the contracting activity is required to use.
(b) After determining a BPA would be advantageous, contracting officers shall--
(1) Establish the parameters to limit purchases to individual items or commodity groups or classes, or permit the supplier to furnish unlimited supplies or services; and
(2) Consider suppliers whose past performance has shown them to be dependable, who offer quality supplies or services at consistently lower prices, and who have provided numerous purchases at or below the simplified acquisition threshold.
(c) BPAs may be established with--
(1) More than one supplier for supplies or services of the same type to provide maximum practicable competition;
(2) A single firm from which numerous individual purchases at or below the simplified acquisition threshold will likely be made in a given period; or
(3) Federal Supply Schedule contractors, if not inconsistent with the terms of the applicable schedule contract.
(d) BPAs should be prepared without a purchase requisition and only after contacting suppliers to make the necessary arrangements for--
(1) Securing maximum discounts;
(2) Documenting individual purchase transactions;
(3) Periodic billings; and
(4) Incorporating other necessary details.
(a) The following terms and conditions are mandatory:
(1) Description of agreement. A statement that the supplier shall furnish supplies or services, described in general terms, if and when requested by the contracting officer (or the authorized representative of the contracting officer) during a specified period and within a stipulated aggregate amount, if any.
(2) Extent of obligation. A statement that the Government is obligated only to the extent of authorized purchases actually made under the BPA.
(3) Purchase limitation. A statement that specifies the dollar limitation for each individual purchase under the BPA (see 13.303-5(b)).
(4) Individuals authorized to purchase under the BPA. A statement that a list of individuals authorized to purchase under the BPA, identified either by title of position or by name of individual, organizational component, and the dollar limitation per purchase for each position title or individual shall be furnished to the supplier by the contracting officer.
(5) Delivery tickets. A requirement that all shipments under the agreement, except those for newspapers, magazines, or other periodicals, shall be accompanied by delivery tickets or sales slips that shall contain the following minimum information:
(i) Name of supplier.
(ii) BPA number.
(iii) Date of purchase.
(iv) Purchase number.
(v) Itemized list of supplies or services furnished.
(vi) Quantity, unit price, and extension of each item, less applicable discounts (unit prices and extensions need not be shown when incompatible with the use of automated systems, provided that the invoice is itemized to show this information).
(vii) Date of delivery or shipment.
(6) Invoices. One of the following statements shall be included (except that the statement in paragraph (a)(6)(iii) of this subsection should not be used if the accumulation of the individual invoices by the Government materially increases the administrative costs of this purchase method):
(i) A summary invoice shall be submitted at least monthly or upon expiration of this BPA, whichever occurs first, for all deliveries made during a billing period, identifying the delivery tickets covered therein, stating their total dollar value, and supported by receipt copies of the delivery tickets.
(ii) An itemized invoice shall be submitted at least monthly or upon expiration of this BPA, whichever occurs first, for all deliveries made during a billing period and for which payment has not been received. These invoices need not be supported by copies of delivery tickets.
(iii) When billing procedures provide for an individual invoice for each delivery, these invoices shall be accumulated, provided that--
(A) A consolidated payment will be made for each specified period; and
(B) The period of any discounts will commence on the final date of the billing period or on the date of receipt of invoices for all deliveries accepted during the billing period, whichever is later.
(iv) An invoice for subscriptions or other charges for newspapers, magazines, or other periodicals shall show the starting and ending dates and shall state either that ordered subscriptions have been placed in effect or will be placed in effect upon receipt of payment.
(b) If the fast payment procedure is used, include the requirements stated in 13.403.
(b) Unless a clause prescription specifies otherwise (e.g., see 22.305(a), 22.605(a)(5), or 22.1006), if the prescription includes a dollar threshold, the amount to be compared to that threshold is that of any particular order under the BPA.
(b) Individual purchases shall not exceed the simplified acquisition threshold. However, agency regulations may establish a higher threshold consistent with the following:
(1) The simplified acquisition threshold and the $5,000,000 limitation for individual purchases do not apply to BPAs established in accordance with 13.303-2(c)(3).
(2) The limitation for individual purchases for commercial item acquisitions conducted under Subpart 13.5 is $5,000,000.
(c) The existence of a BPA does not justify purchasing from only one source or avoiding small business set-asides. The requirements of 13.003(b) and Subpart 19.5 also apply to each order.
(d) If, for a particular purchase greater than the micro-purchase threshold, there is an insufficient number of BPAs to ensure maximum practicable competition, the contracting officer shall--
(1) Solicit quotations from other sources (see 13.105) and make the purchase as appropriate; and
(2) Establish additional BPAs to facilitate future purchases if--
(i) Recurring requirements for the same or similar supplies or services seem likely;
(ii) Qualified sources are willing to accept BPAs; and
(iii) It is otherwise practical to do so.
(e) Limit documentation of purchases to essential information and forms as follows:
(1) Purchases generally should be made electronically, or orally when it is not considered economical or practical to use electronic methods.
(2) A paper purchase document may be issued if necessary to ensure that the supplier and the purchaser agree concerning the transaction.
(3) Unless a paper document is issued, record essential elements (e.g., date, supplier, supplies or services, price, delivery date) on the purchase requisition, in an informal memorandum, or on a form developed locally for the purpose.
(4) Cite the pertinent purchase requisitions and the accounting and appropriation data.
(5) When delivery is made or the services are performed, the supplier's sales document, delivery document, or invoice may (if it reflects the essential elements) be used for the purpose of recording receipt and acceptance of the supplies or services. However, if the purchase is assigned to another activity for administration, the authorized Government representative shall document receipt and acceptance of supplies or services by signing and dating the agency specified form after verification and after notation of any exceptions.
(b) The contracting officer that entered into the BPA shall--
(1) Ensure that each BPA is reviewed at least annually and, if necessary, updated at that time; and
(2) Maintain awareness of changes in market conditions, sources of supply, and other pertinent factors that may warrant making new arrangements with different suppliers or modifying existing arrangements.
(c) If an office other than the purchasing office that established a BPA is authorized to make purchases under that BPA, the agency that has jurisdiction over the office authorized to make the purchases shall ensure that the procedures in paragraph (a) of this subsection are being followed.
(a) Periodically review and determine whether there is a continuing need for each fund or third party draft account established, and that amounts of those funds or accounts are not in excess of actual needs;
(b) Take prompt action to have imprest funds or third party draft accounts adjusted to a level commensurate with demonstrated needs whenever circumstances warrant such action; and
(c) Develop and issue appropriate implementing regulations. These regulations shall include (but are not limited to) procedures covering--
(1) Designation of personnel authorized to make purchases using imprest funds or third party drafts; and
(2) Documentation of purchases using imprest funds or third party drafts, including documentation of--
(i) Receipt and acceptance of supplies and services by the Government;
(ii) Receipt of cash or third party draft payments by the suppliers; and
(iii) Cash advances and reimbursements.
(a) The imprest fund transaction does not exceed $500 or such other limits as have been approved by the agency head;
(b) The third party draft transaction does not exceed $2,500, unless authorized at a higher level in accordance with Treasury restrictions;
(c) The use of imprest funds or third party drafts is considered to be advantageous to the Government; and
(d) The use of imprest funds or third party drafts for the transaction otherwise complies with any additional conditions established by agencies and with the policies and regulations referenced in 13.305-1.
(b) Normally, purchases should be placed orally and without soliciting competition if prices are considered reasonable.
(c) Since there is, for all practical purposes, simultaneous placement of the order and delivery of the items, clauses are not required for purchases using imprest funds or third party drafts.
(d) Forms prescribed at 13.307(e) may be used if a written order is considered necessary (e.g., if required by the supplier for discount, tax exemption, or other reasons). If a purchase order is used, endorse it "Payment to be made from Imprest Fund" (or "Payment to be made from Third Party Draft," as appropriate).
(e) The individual authorized to make purchases using imprest funds or third party drafts shall--
(1) Furnish to the imprest fund or third party draft cashier a copy of the document required under paragraph (a) of this subsection annotated to reflect--
(i) That an imprest fund or third party draft purchase has been made;
(ii) The unit prices and extensions; and
(iii) The supplier's name and address; and
(2) Require the supplier to include with delivery of the supplies an invoice, packing slip, or other sales instrument giving--
(i) The supplier's name and address;
(ii) List and quantity of items supplied;
(iii) Unit prices and extensions; and
(iv) Cash discount, if any.
(a) This form may be used if all of the following conditions are satisfied:
(1) The amount of the purchase is at or below the micro-purchase threshold, except for purchases made under unusual and compelling urgency or in support of contingency operations. Agencies may establish higher dollar limitations for specific activities or items.
(2) The supplies or services are immediately available.
(3) One delivery and one payment will be made.
(4) Its use is determined to be more economical and efficient than use of other simplified acquisition procedures.
(b) General procedural instructions governing the form's use are printed on the form and on the inside front cover of each book of forms.
(c) Since there is, for all practical purposes, simultaneous placement of the order and delivery of the items, clauses are not required for purchases using this form.
(d) Agencies shall provide adequate safeguards regarding the control of forms and accounting for purchases.
(b) Other than commercial items. (1) Except when quotations are solicited via FACNET, other electronic means, or orally, the SF 1449; SF 18, Request for Quotations; or an agency form/automated format may be used. Each agency request for quotations form/automated format should conform with the SF 18 or SF 1449 to the maximum extent practicable.
(2) Both SF 1449 and OF 347, Order for Supplies or Services, are multipurpose forms used for negotiated purchases of supplies or services, delivery or task orders, inspection and receiving reports, and invoices. An agency form/automated format also may be used.
(c) Forms used for both commercial and other than commercial items. (1) OF 336, Continuation Sheet, or an agency form/automated format may be used when additional space is needed.
(2) OF 348, Order for Supplies or Services Schedule--Continuation, or an agency form/automated format may be used for negotiated purchases when additional space is needed. Agencies may print on these forms the clauses considered to be generally suitable for purchases.
(3) SF 30, Amendment of Solicitation/Modification of Contract, or a purchase order form may be used to modify a purchase order, unless an agency form/automated format is prescribed in agency regulations.
(d) SF 44, Purchase Order--Invoice--Voucher, is a multipurpose pocket-size purchase order form that may be used as outlined in 13.306.
(e) SF 1165, Receipt for Cash--Subvoucher, or an agency purchase order form may be used for purchases using imprest funds or third party drafts.
(1) Has delivered the supplies to a post office, common carrier, or point of first receipt by the Government; and
(2) Shall replace, repair, or correct supplies not received at destination, damaged in transit, or not conforming to purchase agreements.
(b) The contracting officer shall be primarily responsible for collecting debts resulting from failure of contractors to properly replace, repair, or correct supplies lost, damaged, or not conforming to purchase requirements (see 32.605(b) and 32.606).
(a) Individual purchasing instruments do not exceed $25,000, except that executive agencies may permit higher dollar limitations for specified activities or items on a case-by-case basis.
(b) Deliveries of supplies are to occur at locations where there is both a geographical separation and a lack of adequate communications facilities between Government receiving and disbursing activities that will make it impractical to make timely payment based on evidence of Government acceptance.
(c) Title to the supplies passes to the Government--
(1) Upon delivery to a post office or common carrier for mailing or shipment to destination; or
(2) Upon receipt by the Government if the shipment is by means other than Postal Service or common carrier.
(d) The supplier agrees to replace, repair, or correct supplies not received at destination, damaged in transit, or not conforming to purchase requirements.
(e) The purchasing instrument is a firm-fixed-price contract, a purchase order, or a delivery order for supplies.
(f) A system is in place to ensure--
(1) Documentation of evidence of contractor performance under fast payment purchases;
(2) Timely feedback to the contracting officer in case of contractor deficiencies; and
(3) Identification of suppliers that have a current history of abusing the fast payment procedure (also see Subpart 9.1).
(a) A requirement that the supplies be shipped transportation or postage prepaid.
(b) A requirement that invoices be submitted directly to the finance or other office designated in the order, or in the case of unpriced purchase orders, to the contracting officer (see 13.302-2(c)).
(c) The following statement on the consignee's copy:
Consignee's Notification to Purchasing Activity of Nonreceipt, Damage, or Nonconformance
The consignee shall notify the purchasing office promptly after the specified date of delivery of supplies not received, damaged in transit, or not conforming to specifications of the purchase order. Unless extenuating circumstances exist, the notification should be made not later than 60 days after the specified date of delivery.
(b) For the period of this test, contracting activities shall employ the simplified procedures authorized by the test to the maximum extent practicable.
(c) When acquiring commercial items using the procedures in this part, the requirements of Part 12 apply subject to the order of precedence provided at 12.102(c). This includes use of the provisions and clauses in Subpart 12.3.
(d) The authority to issue solicitations under this subpart shall expire on January 1, 2000. Contracts may be awarded after the expiration of this authority for solicitations issued before the expiration of the authority.
(i) Conduct sole source acquisitions, as defined in 6.003, under this subpart only if the need to do so is justified in writing and approved at the levels specified in paragraphs (a)(2)(i) and (a)(2)(ii) of this section; and
(ii) Prepare sole source justifications using the format at 6.303-2, modified to reflect an acquisition under the authority of the test program for commercial items (section 4202 of the Clinger-Cohen Act of 1996).
(2) Justifications and approvals are required under this subpart only for sole source acquisitions.
(i) For a proposed contract exceeding $100,000, but not exceeding $500,000, the contracting officer's certification that the justification is accurate and complete to the best of the contracting officer's knowledge and belief will serve as approval, unless a higher approval level is established in accordance with agency procedures.
(ii) For a proposed contract exceeding $500,000, the approval shall be by the competition advocate for the procuring activity, designated pursuant to 6.501; or an official described in 6.304(a)(3) or (a)(4). This authority is not delegable.
(b) Contract file documentation. The contract file shall include--
(1) A brief written description of the procedures used in awarding the contract, including the fact that the test procedures in FAR Subpart 13.5 were used;
(2) The number of offers received;
(3) An explanation, tailored to the size and complexity of the acquisition, of the basis for the contract award decision; and
(4) Any justification approved under paragraph (a) of this section.