§ 1513.570 - Oral purchase orders.

(a) Except as noted in paragraph (c) of this section, Contracting Officers should issue oral purchase orders for supplies or services for competitive acquisitions whose estimated value is $25,000 or less. Oral orders reduce procurement leadtime and costs associated with processing purchase orders; therefore, files must be documented to substantiate why an oral order was not used if the following conditions are present:

(1) Supplies or services are readily available.

(2) Specifications are not detailed and terms are not complex.

(3) The vendor will accept an oral order and does not require written confirmation of the order.

(b) When an oral order is placed the Contracting Officer shall document the file to include the following:

(1) An abstract of offers (for competitive acquisitions);

(2) Adequate sole source justification (for noncompetitive requirements);

(3) The date the order was placed;

(4) The purchase order number;

(5) The vendor's name, address and phone number;

(6) The procurement amount;

(7) Delivery and discount terms;

(8) A record showing that the vendor was advised of all applicable FAR and EPAAR clauses.

(9) A record showing that one copy of the purchase order was distributed to the originator, the commitment clerk, the servicing finance office and the shipping/receiving officer.

(c) Oral purchase orders shall not be used for—

(1) Acquisitions for construction over $2,000.

(2) Acquisitions for services over $2,500 which are subject to the Service Contract Act.