[Federal Register Volume 62, Number 236 (Tuesday, December 9, 1997)]
[Rules and Regulations]
[Pages 64916-64929]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-31817]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 4, 6, 8, 12, 13, 16, 19, 32, 41, 43, 49, 52, and 53
[FAC 97-03; FAR Case 94-772; Item IV]
RIN 9000-AH24
Federal Acquisition Regulation; Reorganization of FAR Part 13,
Simplified Acquisition Procedures
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council have agreed on a final rule amending
the Federal Acquisition Regulation (FAR) to reorganize part 13 for
clarity and to make other changes to facilitate the use of electronic
commerce in Government contracting. This regulatory action was not
subject to Office of Management and Budget review under Executive Order
12866, dated September 30, 1993. This is not a major rule under 5
U.S.C. 804.
EFFECTIVE DATE: February 9, 1998.
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS
Building, Washington, DC 20405, (202) 501-4755, for information
pertaining to status or publication schedules. For clarification of
content, contact Mr. Paul Linfield, Procurement Analyst, at (202) 501-
1757. Please cite FAC 97-03, FAR case 94-772.
SUPPLEMENTARY INFORMATION:
A. Background
This final rule revises FAR part 13 to reorganize its contents in a
more process-oriented manner and to emphasize the use of electronic
contracting and the Governmentwide commercial purchase card. FAR part
52 is amended to permit agency provisions and clauses to be
incorporated by reference in solicitations and contracts, if the full
text of the provisions and clauses may be accessed electronically by
prospective contractors. A new clause is added at FAR 52.213-4 for use
in simplified acquisitions; the clause is a compilation of the required
and most commonly used clauses that apply to simplified acquisitions,
and may be used in lieu of individual clauses prescribed in the FAR.
[[Page 64917]]
This effort was initiated as a result of public comments received
during the comment period on FAR case 94-770, published in the Federal
Register as an interim rule on July 3, 1995 (60 FR 34741). A proposed
rule was published in the Federal Register on September 13, 1996 (61 FR
48532).
Thirteen public comments were received in response to the proposed
rule. All comments were considered in the development of the final
rule.
B. Regulatory Flexibility Act
A Final Regulatory Flexibility Analysis has been performed. A copy
of the analysis may be obtained from the FAR Secretariat. The analysis
is summarized as follows:
This rule amends the Federal Acquisition Regulation (FAR) by
reorganizing the structure and material of part 13 in a manner that
would be clear to those individuals that are newly authorized to
make micro-purchases. The Federal Acquisition Streamlining Act of
1994 (FASA) (Pub. L. 103-355) authorized individuals other than
contracting officers to make purchases under $2,500 (micro-
purchases). Also, the rule takes into account the anticipated impact
on the workload of agency procurement personnel of evaluating the
many sources that may respond electronically to contract actions
that are initiated with widespread electronic public notice. Changes
made by the rule will better enable agencies to capture the benefits
of using electronic commerce in these situations. There were no
public comments received in response to the initial regulatory
flexibility analysis. Changes in FAR part 52 may affect a
significant number of small entities that participate in Federal
agency procurements. The provisions and clauses in this FAR part
generally are not required for micro-purchases. It is estimated that
40 percent of the contract actions below $25,000 are micro-
purchases. Approximately 50 percent of all contract actions of
$100,000 or less are annually awarded to small business concerns.
The rule will impose no new reporting, recordkeeping, or other
compliance requirements on large or small entities. The changes to
part 52 may have more impact on small business concerns than large
business concerns because these changes make it more imperative that
small business concerns have electronic capability to receive and
transmit procurement information. This rule authorizes the
incorporation by reference of any provision or clause used by an
agency contracting activity, provided that provision or clause was
accessible electronically to an offeror or prospective contractor.
The changes in part 52 should also result in a reduction in the
number of pages that a prospective contractor will have to submit
with its offer to the Government. An alternative that was considered
was making solicitation provisions and clauses available to
prospective contractors at the time they registered with the Central
Contractor Registration (CCR). In order to conduct electronic
commerce with any agency of the Federal Government, a potential
contractor must register with the CCR. However, providing provisions
and clauses at the time of registration with the CCR does not appear
to be practical, since the prospective contractor would not have any
assurance that the provisions and clauses were current at the time
it wanted to participate in an agency procurement.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the FAR do not impose recordkeeping or information collection
requirements, or collections of information from offerors, contractors,
or members of the public which require the approval of the Office of
Management and Budget under 44 U.S.C. 3501, et seq.
List of Subjects in 48 CFR Parts 4, 6, 8, 12, 13, 16, 19, 32, 41, 43,
49, 52, and 53
Government procurement.
Dated: December 1, 1997.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, 48 CFR parts 4, 6, 8, 12, 13, 16, 19, 32, 41, 43, 49,
52, and 53 are amended as set forth below:
1. The authority citation for 48 CFR parts 4, 6, 8, 12, 13, 6, 19,
32, 41, 43, 49, 52, and 53 continues to read as follows:
Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
PART 4--ADMINISTRATIVE MATTERS
4.800 [Amended]
2. Section 4.800 is amended to revise the reference in the
parenthetical to read ``13.106-3(b)''.
PART 6--COMPETITION REQUIREMENTS
6.001 [Amended]
3. Section 6.001 is amended in paragraph (a) by revising the
references ``13.602'' and ``subpart 13.6'' to read ``13.501'' and
``subpart 13.5'', respectively.
PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES
8.404 [Amended]
4. Section 8.404 is amended in the first sentence of paragraph
(b)(4) by revising the parenthetical to read ``(see 13.303-2(c)(3))''.
PART 12--ACQUISITION OF COMMERCIAL ITEMS
5. Section 12.102 is amended by revising paragraphs (d)(2) and
(d)(3) to read as follows:
12.102 Applicability.
* * * * *
(d) * * *
(2) Using the Standard Form 44 (see 13.306);
(3) Using the imprest fund (see 13.305); or
* * * * *
12.203 [Amended]
6. Section 12.203 is amended in the last sentence of the
undesignated paragraph by revising the reference ``subpart 13.6'' to
read ``subpart 13.5''.
12.206, 12.301, and 12.602 [Amended]
7. In the following sections, remove ``13.106-2'' and insert
``13.106'': 12.206, 12.301(c)(2), 12.602(a), and 12.602(b).
8. Part 13 is revised to read as follows:
PART 13--SIMPLIFIED ACQUISITION PROCEDURES
13.000 Scope of part.
13.001 Definitions.
13.002 Purpose.
13.003 Policy.
13.004 Legal effect of quotations.
13.005 Federal Acquisition Streamlining Act of 1994 list of
inapplicable laws.
13.006 Inapplicable provisions and clauses.
Subpart 13.1--Procedures
13.101 General.
13.102 Source list.
13.103 Use of standing price quotations.
13.104 Promoting competition.
13.105 Synopsis and posting requirements.
13.106 Soliciting competition, evaluation of quotations or offers,
award and documentation.
13.106-1 Soliciting competition.
13.106-2 Evaluation of quotations or offers.
13.106-3 Award and documentation.
Subpart 13.2--Actions at or Below the Micro-Purchase Threshold
13.201 General.
13.202 Purchase guidelines.
Subpart 13.3--Simplified Acquisition Methods
13.301 Governmentwide commercial purchase card.
13.302 Purchase orders.
13.302-1 General.
13.302-2 Unpriced purchase orders.
13.302-3 Obtaining contractor acceptance and modifying purchase
orders.
13.302-4 Termination or cancellation of purchase orders.
13.302-5 Clauses.
13.303 Blanket purchase agreements (BPAs).
13.303-1 General.
13.303-2 Establishment of BPAs.
13.303-3 Preparation of BPAs.
13.303-4 Clauses.
13.303-5 Purchases under BPAs.
13.303-6 Review procedures.
13.303-7 Completion of BPAs.
13.303-8 Optional clause.
13.304 [Reserved]
13.305 Imprest funds and third party drafts.
[[Page 64918]]
13.305-1 General.
13.305-2 Agency responsibilities.
13.305-3 Conditions for use.
13.305-4 Procedures.
13.306 SF 44, Purchase Order--Invoice--Voucher.
13.307 Forms.
Subpart 13.4--Fast Payment Procedure
13.401 General.
13.402 Conditions for use.
13.403 Preparation and execution of orders.
13.404 Contract clause.
Subpart 13.5--Test Program for Certain Commercial Items
13.500 General.
13.501 Special documentation requirements.
13.000 Scope of part.
This part prescribes policies and procedures for the acquisition of
supplies and services, including construction, research and
development, and commercial items, the aggregate amount of which does
not exceed the simplified acquisition threshold (see 2.101). Subpart
13.5 provides special authority for acquisitions of commercial items
exceeding the simplified acquisition threshold but not exceeding
$5,000,000, including options. See part 12 for policies applicable to
the acquisition of commercial items exceeding the micro-purchase
threshold. See 36.602-5 for simplified procedures to be used when
acquiring architect-engineer services.
13.001 Definitions.
As used in this part--
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.)
13.002 Purpose.
The purpose of this part is to prescribe simplified acquisition
procedures in order to--
(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.
13.003 Policy.
(a) Agencies shall use simplified acquisition procedures to the
maximum extent practicable for all purchases of supplies or services
not exceeding the simplified acquisition threshold (including purchases
at or below the micro-purchase threshold). This policy does not apply
if an agency can meet its requirement using--
(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
[[Page 64919]]
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.
13.004 Legal effect of quotations.
(a) A quotation is not an offer and, consequently, cannot be
accepted by the Government to form a binding contract. Therefore,
issuance by the Government of an order in response to a supplier's
quotation does not establish a contract. The order is an offer by the
Government to the supplier to buy certain supplies or services upon
specified terms and conditions. A contract is established when the
supplier accepts the offer.
(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.)
13.005 Federal Acquisition Streamlining Act of 1994 list of
inapplicable laws.
(a) The following laws are inapplicable to all contracts and
subcontracts (if otherwise applicable to subcontracts) at or below the
simplified acquisition threshold:
(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.
13.006 Inapplicable provisions and clauses.
While certain statutes still apply, pursuant to Public Law 103-355,
the following provisions and clauses are inapplicable to contracts and
subcontracts at or below the simplified acquisition threshold:
(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.
Subpart 13.1--Procedures
13.101 General.
(a) In making purchases, contracting officers shall--
(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.
13.102 Source list.
(a) Each contracting office should maintain a source list (or
lists, if more
[[Page 64920]]
convenient). New supply sources for the list may be obtained from a
variety of sources, including the Procurement Automated Source System
(PASS) of the Small Business Administration and the Central Contractor
Registration (CCR) Data Base (see 4.503). The list should identify the
status of each source (when the status is made known to the contracting
office) in the following categories:
(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.
13.103 Use of standing price quotations.
Authorized individuals do not have to obtain individual quotations
for each purchase. Standing price quotations may be used if--
(a) The pricing information is current; and
(b) The Government obtains the benefit of maximum discounts before
award.
13.104 Promoting competition.
The contracting officer shall promote competition to the maximum
extent practicable to obtain supplies and services from the source
whose offer is the most advantageous to the Government, considering the
administrative cost of the purchase.
(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.
13.105 Synopsis and posting requirements.
(a) The contracting officer shall comply with the public display
and synopsis requirements of 5.101 and 5.203 unless--
(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.
13.106 Soliciting competition, evaluation of quotations or offers,
award and documentation.
13.106-1 Soliciting competition.
(a) Considerations. In soliciting competition, the contracting
officer shall consider the guidance in 13.104 and the following before
requesting 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.
13.106-2 Evaluation of quotations or offers.
(a) General. (1) The contracting officer shall evaluate quotations
or offers--
(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
[[Page 64921]]
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.
13.106-3 Award and documentation.
(a) Basis for award. Before making award, the contracting officer
shall determine that the proposed price is fair and reasonable.
(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)).
Subpart 13.2--Actions at or Below the Micro-Purchase Threshold
13.201 General.
(a) Agency heads are encouraged to delegate micro-purchase
authority (see 1.603-3).
(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.
13.202 Purchase guidelines.
(a) Solicitation, evaluation of quotations, and award. (1) To the
extent practicable, micro-purchases shall be distributed equitably
among qualified suppliers.
(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.
Subpart 13.3--Simplified Acquisition Methods
13.301 Governmentwide commercial purchase card.
(a) The Governmentwide commercial purchase card is authorized for
use in making and/or paying for purchases of supplies, services, or
construction. The Governmentwide commercial purchase card may be used
by contracting officers and other individuals designated in accordance
with 1.603-3. The card may
[[Page 64922]]
be used only for purchases that are otherwise authorized by law or
regulation.
(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.
13.302 Purchase orders.
13.302-1 General.
(a) Except as provided under the unpriced purchase order method
(see 13.302-2), purchase orders generally are issued on a fixed-price
basis. See 12.207 for acquisition of commercial items.
(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.
13.302-2 Unpriced purchase orders.
(a) An unpriced purchase order is an order for supplies or
services, the price of which is not established at the time of issuance
of the order.
(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.
13.302-3 Obtaining contractor acceptance and modifying purchase
orders.
(a) When it is desired to consummate a binding contract between the
parties before the contractor undertakes performance, the contracting
officer shall require written (see 2.101) acceptance of the purchase
order by the contractor.
(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.
13.302-4 Termination or cancellation of purchase orders.
(a) If a purchase order that has been accepted in writing by the
contractor is to be terminated, the contracting officer shall process
the termination in accordance with--
(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.
13.302-5 Clauses.
(a) Each purchase order (and each purchase order modification (see
13.302-3)) shall incorporate all clauses prescribed for the particular
acquisition.
(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
[[Page 64923]]
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.
13.303 Blanket purchase agreements (BPAs).
13.303-1 General.
(a) A blanket purchase agreement (BPA) is a simplified method of
filling anticipated repetitive needs for supplies or services by
establishing ``charge accounts'' with qualified sources of supply (see
subpart 16.7 for additional coverage of agreements).
(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.
13.303-2 Establishment of BPAs.
(a) The following are circumstances under which contracting
officers may establish BPAs:
(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.
13.303-3 Preparation of BPAs.
Prepare BPAs on the forms specified in 13.307. Do not cite
accounting and appropriation data (see 13.303-5(e)(4)).
(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,
[[Page 64924]]
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.
13.303-4 Clauses.
(a) The contracting officer shall insert in each BPA the clauses
prescribed elsewhere in this part that are required for or applicable
to the particular BPA.
(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.
13.303-5 Purchases under BPAs.
(a) Use a BPA only for purchases that are otherwise authorized by
law or regulation.
(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.
13.303-6 Review procedures.
(a) The contracting officer placing orders under a BPA, or the
designated representative of the contracting officer, shall review a
sufficient random sample of the BPA files at least annually to ensure
that authorized procedures are being followed.
(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.
13.303-7 Completion of BPAs.
An individual BPA is considered complete when the purchases under
it equal its total dollar limitation, if any, or when its stated time
period expires.
13.303-8 Optional clause.
The clause at 52.213-4, Terms and Conditions--Simplified
Acquisitions (Other Than Commercial Items), may be used in BPAs
established under this section.
13.304 [Reserved]
13.305 Imprest funds and third party drafts.
13.305-1 General.
Imprest funds and third party drafts may be used to acquire and to
pay for supplies or services. Policies and regulations concerning the
establishment of and accounting for imprest funds and third party
drafts, including the responsibilities of designated cashiers and
alternates, are contained in Part IV of the Treasury Financial Manual
for Guidance of Departments and Agencies, Title 7 of the General
Accounting Office Policy and Procedures Manual for Guidance of Federal
Agencies, and the agency implementing regulations. Agencies also shall
be guided by the Manual of Procedures and Instructions for Cashiers,
issued by the Financial Management Service, Department of the Treasury.
13.305-2 Agency responsibilities.
Each agency using imprest funds and third party drafts shall--
(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.
13.305-3 Conditions for use.
Imprest funds or third party drafts may be used for purchases
when--
(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;
[[Page 64925]]
(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.
13.305-4 Procedures.
(a) Each purchase using imprest funds or third party drafts shall
be based upon an authorized purchase requisition, contracting officer
verification statement, or other agency approved method of ensuring
that adequate funds are available for the purchase.
(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.
13.306 SF 44, Purchase Order--Invoice--Voucher.
The SF 44, Purchase Order--Invoice--Voucher, is a multipurpose
pocket-size purchase order form designed primarily for on-the-spot,
over-the-counter purchases of supplies and nonpersonal services while
away from the purchasing office or at isolated activities. It also can
be used as a receiving report, invoice, and public voucher.
(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; and
(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.
13.307 Forms.
(a) Commercial items. For use of the SF 1449, Solicitation/
Contract/Order for Commercial Items, see 12.204.
(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.
Subpart 13.4--Fast Payment Procedure
13.401 General.
(a) The fast payment procedure allows payment under limited
conditions to a contractor prior to the Government's verification that
supplies have been received and accepted. The procedure provides for
payment for supplies based on the contractor's submission of an invoice
that constitutes a certification that the contractor--
(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).
13.402 Conditions for use.
If the conditions in paragraphs (a) through (f) of this section are
present, the fast payment procedure may be used, provided that use of
the procedure is consistent with the other conditions of the purchase.
The conditions for use of the fast payment procedure are as follows:
(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
[[Page 64926]]
(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).
13.403 Preparation and execution of orders.
Priced or unpriced contracts, purchase orders, or BPAs using the
fast payment procedure shall include the following:
(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.
13.404 Contract clause.
The contracting officer shall insert the clause at 52.213-1, Fast
Payment Procedure, in solicitations and contracts when the conditions
in 13.402 are applicable and it is intended that the fast payment
procedure be used in the contract (in the case of BPAs, the contracting
officer may elect to insert the clause either in the BPA or in orders
under the BPA).
Subpart 13.5--Test Program for Certain Commercial Items
13.500 General.
(a) This subpart authorizes, as a test program, use of simplified
procedures for the acquisition of supplies and services in amounts
greater than the simplified acquisition threshold but not exceeding
$5,000,000, including options, if the contracting officer reasonably
expects, based on the nature of the supplies or services sought, and on
market research, that offers will include only commercial items.
Under this test program, contracting officers may use any simplified
acquisition procedure in this part, subject to any specific dollar
limitation applicable to the particular procedure. The purpose of this
test program is to vest contracting officers with additional procedural
discretion and flexibility, so that commercial item acquisitions in
this dollar range may be solicited, offered, evaluated, and awarded in
a simplified manner that maximizes efficiency and economy and minimizes
burden and administrative costs for both the Government and industry
(10 U.S.C. 2304(g) and 2305 and 41 U.S.C. 253(g) and 253a and 253b).
(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.
13.501 Special documentation requirements.
(a) Sole source acquisitions. (1) Acquisitions conducted under
simplified acquisition procedures are exempt from the requirements in
part 6. However, contracting officers shall--
(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.
PART 16--TYPES OF CONTRACTS
16.701 [Amended]
9. Section 16.701 is amended in the parenthetical by revising
``subpart 13.2'' to read ``13.303''.
16.703 [Amended]
10. Section 16.703 is amended in paragraph (c)(1)(vi) by revising
the citation ``13.303'' to read ``13.403''.
PART 19--SMALL BUSINESS PROGRAMS
19.1006 [Amended]
11. Section 19.1006 is amended in paragraph (c)(1)(i) by removing
``13.105 or''.
PART 32--CONTRACT FINANCING
32.1103 [Amended]
12. Section 32.1103 is amended in paragraph (a)(1) by revising the
reference ``13.103(e)'' to read ``13.003(f)'' and in paragraph (b)(2)
by revising ``13.103(e)'' to read ``13.301''.
PART 41--ACQUISITION OF UTILITY SERVICES
41.202 [Amended]
13. Section 41.202 is amended in paragraph (c)(1) by revising the
reference ``subpart 13.5'' to read ``13.302''.
PART 43--CONTRACT MODIFICATIONS
43.301 [Amended]
14. Section 43.301 is amended in paragraph (a)(2)(iii) by revising
the reference ``13.503'' to read ``13.302-3''.
[[Page 64927]]
PART 49--TERMINATION OF CONTRACTS
49.002 [Amended]
15. Section 49.002 is amended in paragraph (a) by revising the
reference ``13.504(b)'' to read ``13.302-4''.
16. Section 49.501 is amended by adding the following text as the
second sentence:
49.501 General.
* * * This subpart does not apply to contracts that use the clause
at 52.213-4, Terms and Conditions--Simplified Acquisitions (Other Than
Commercial Items). * * *
* * * * *
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
52.101 [Amended]
17. Section 52.101 is amended in paragraph (e)(2)(i) by removing
the semicolon after the word ``authorized'' and replacing it with
``(see 52.102);''.
18. Section 52.102 is revised to read as follows:
52.102 Incorporating provisions and clauses.
(a) Provisions and clauses should be incorporated by reference to
the maximum practical extent, rather than being incorporated in full
text, even if they--
(1) Are used with one or more alternates or on an optional basis;
(2) Are prescribed on a ``substantially as follows'' or
``substantially the same as'' basis, provided they are used verbatim;
(3) Require modification or the insertion by the Government of
fill-in material (see 52.104); or
(4) Require completion by the offeror or prospective contractor.
This instruction also applies to provisions completed as annual
representations and certifications.
(b) Except for provisions and clauses prescribed in 52.107, any
provision or clause that can be accessed electronically by the offeror
or prospective contractor may be incorporated by reference in
solicitations and/or contracts. However, the contracting officer, upon
request, shall provide the full text of any provision or clause
incorporated by reference.
(c) Agency approved provisions and clauses prescribed in agency
acquisition regulations, and provisions and clauses not authorized by
subpart 52.3 to be incorporated by reference, need not be incorporated
in full text, provided the contracting officer includes in the
solicitation and contract a statement that--
(1) Identifies all provisions and clauses that require completion
by the offeror or prospective contractor;
(2) Specifies that the provisions and clauses must be completed by
the offeror or prospective contractor and must be submitted with the
quotation or offer; and
(3) Identifies to the offeror or prospective contractor at least
one electronic address where the full text may be accessed.
(d) An agency may develop a group listing of provisions and clauses
that apply to a specific category of contracts. An agency group listing
may be incorporated by reference in solicitations and/or contracts in
lieu of citing the provisions and clauses individually, provided the
group listing is made available electronically to offerors and
prospective contractors.
(e) A provision or clause that is not available electronically to
offerors and prospective contractors shall be incorporated in
solicitations and/or contracts in full text if it is--
(1) A FAR provision or clause that otherwise is not authorized to
be incorporated by reference (see subpart 52.3); or
(2) A provision or clause prescribed for use in an agency
acquisition regulation.
(f) Provisions or clauses may not be incorporated by reference by
being listed in the--
(1) Provision at 52.252-3, Alterations in Solicitations; or
(2) Clause at 52.252-4, Alterations in Contract.
52.102-1 and 52.102-2 [Removed]
19. Sections 52.102-1 and 52.102-2 are removed.
20. Section 52.213-1 is revised to read as follows:
52.213-1 Fast Payment Procedure.
As prescribed in 13.404, insert the following clause:
Fast Payment Procedure (Feb 1998)
(a) General. The Government will pay invoices based on the
Contractor's delivery to a post office or common carrier (or, if
shipped by other means, to the point of first receipt by the
Government).
(b) Responsibility for supplies. (1) Title to the supplies
passes to the Government upon delivery to--
(i) A post office or common carrier for shipment to the specific
destination; or
(ii) The point of first receipt by the Government, if shipment
is by means other than Postal Service or common carrier.
(2) Notwithstanding any other provision of the contract, order,
or blanket purchase agreement, the Contractor shall--
(i) Assume all responsibility and risk of loss for supplies not
received at destination, damaged in transit, or not conforming to
purchase requirements; and
(ii) Replace, repair, or correct those supplies promptly at the
Contractor's expense, if instructed to do so by the Contracting
Officer within 180 days from the date title to the supplies vests in
the Government.
(c) Preparation of invoice. (1) Upon delivery to a post office
or common carrier (or, if shipped by other means, the point of first
receipt by the Government), the Contractor shall--
(i) Prepare an invoice as provided in this contract, order, or
blanket purchase agreement; and
(ii) Display prominently on the invoice ``FAST PAY.''
(2) If the purchase price excludes the cost of transportation,
the Contractor shall enter the prepaid shipping cost on the invoice
as a separate item. The Contractor shall not include the cost of
parcel post insurance. If transportation charges are stated
separately on the invoice, the Contractor shall retain related paid
freight bills or other transportation billings paid separately for a
period of 3 years and shall furnish the bills to the Government upon
request.
(3) If this contract, order, or blanket purchase agreement
requires the preparation of a receiving report, the Contractor shall
prepare the receiving report on the prescribed form or,
alternatively, shall include the following information on the
invoice, in addition to that required in paragraph (c)(1) of this
clause:
(i) A statement in prominent letters ``NO RECEIVING REPORT
PREPARED.''
(ii) Shipment number.
(iii) Mode of shipment.
(iv) At line item level--
(A) National stock number and/or manufacturer's part number;
(B) Unit of measure;
(C) Ship-To Point;
(D) Mark-For Point, if in the contract; and
(E) FEDSTRIP/MILSTRIP document number, if in the contract.
(4) If this contract, order, or blanket purchase agreement does
not require preparation of a receiving report on a prescribed form,
the Contractor shall include on the invoice the following
information at the line item level, in addition to that required in
paragraph (c)(1) of this clause:
(i) Ship-To Point.
(ii) Mark-For Point.
(iii) FEDSTRIP/MILSTRIP document number, if in the contract.
(5) Where a receiving report is not required, the Contractor
shall include a copy of the invoice in each shipment.
(d) Certification of invoice. The Contractor certifies by
submitting an invoice to the Government that the supplies being
billed to the Government have been shipped or delivered in
accordance with shipping instructions issued by the ordering
officer, in the quantities shown on the invoice, and that the
supplies are in the quantity and of the quality designated by the
contract, order, or blanket purchase agreement.
[[Page 64928]]
(e) Fast pay container identification. The Contractor shall mark
all outer shipping containers ``FAST PAY.''
(End of clause)
52.213-2 [Amended]
21. Section 52.213-2 is amended in the introductory text by
revising the reference ``13.506(b)'' to read ``13.302-5(b)''.
52.213-3 [Amended]
22. Section 52.213-3 is amended in the introductory text by
revising the reference ``13.506(c)'' to read ``13.302-5(c)''.
23. Section 52.213-4 is added to read as follows:
52.213-4 Terms and Conditions--Simplified Acquisitions (Other Than
Commercial Items).
As prescribed in 13.302-5(d), insert the following clause:
Terms and Conditions--Simplified Acquisitions (Other Than Commercial
Items) (Feb 1998)
(a) The Contractor shall comply with the following Federal
Acquisition Regulation (FAR) clauses that are incorporated by
reference:
(1) The clauses listed below implement provisions of law or
Executive order:
(i) 52.222-3, Convict Labor (Aug 1996) (E.O. 11755).
(ii) 52.233-3, Protest After Award (Aug 1996) (31 U.S.C. 3553).
(2) Listed below are additional clauses that apply:
(i) 52.225-11, Restrictions on Certain Foreign Purchases (Oct
1996).
(ii) 52.232-1, Payments (Apr 1984).
(iii) 52.232-8, Discounts for Prompt Payment (May 1997).
(iv) 52.232-11, Extras (Apr 1984).
(v) 52.232-25, Prompt Payment (Jun 1997).
(vi) 52.232-33, Mandatory Information for Electronic Funds
Transfer Payment (Aug 1996).
(vii) 52.233-1, Disputes (Oct 1995).
(viii) 52.244-6, Subcontracts for Commercial Items and
Commercial Components (Oct 1995).
(ix) 52.253-1, Computer Generated Forms (Jan 1991).
(b) The Contractor shall comply with the following FAR clauses,
incorporated by reference, unless the circumstances do not apply:
(1) The clauses listed below implement provisions of law or
Executive order:
(i) 52.222-20, Walsh-Healey Public Contracts Act (DEC 1996) (41
U.S.C. 35-45) (Applies to supply contracts over $10,000 in the
United States).
(ii) 52.222-26, Equal Opportunity (APR 1984) (E.O. 11246)
(Applies to contracts over $10,000).
(iii) 52.222-35, Affirmative Action for Special Disabled and
Vietnam Era Veterans (APR 1984) (38 U.S.C. 4212) (Applies to
contracts over $10,000).
(iv) 52.222-36, Affirmative Action for Handicapped Workers (APR
1984) (29 U.S.C. 793) (Applies to contracts over $2,500).
(v) 52.222-37, Employment Reports on Special Disabled Veterans
and Veterans of the Vietnam Era (JAN 1988) (38 U.S.C. 4212) (Applies
to contracts over $10,000).
(vi) 52.222-41, Service Contract Act of 1965, As Amended (MAY
1989) (41 U.S.C. 351, et seq.) (Applies to service contracts over
$2,500).
(vii) 52.223-5, Pollution Prevention and Right-to-Know
Information (MAR 1997) (E.O. 12856) (Applies to services performed
on Federal facilities).
(viii) 52.225-3, Buy American Act--Supplies (JAN 1994) (41
U.S.C. 10) (Applies to supplies, and to services involving the
furnishing of supplies, if the contract was--
(A) Under $25,000; or
(B) Set aside for small business concerns, regardless of dollar
value).
(2) Listed below are additional clauses that may apply:
(i) 52.209-6, Protecting the Government's Interest When
Subcontracting with Contractors Debarred, Suspended, or Proposed for
Debarment (JULY 1995) (Applies to contracts over $25,000).
(ii) 52.211-17, Delivery of Excess Quantities (SEPT 1989)
(Applies to fixed-price supplies).
(iii) 52.247-29, F.o.b. Origin (JUN 1988) (Applies to supplies
if delivery is f.o.b. origin).
(iv) 52.247-34, F.o.b. Destination (NOV 1991) (Applies to
supplies if delivery is f.o.b. destination).
(c) FAR 52.252-2, Clauses Incorporated by Reference (FEB 1998).
This contract incorporates one or more clauses by reference, with
the same force and effect as if they were given in full text. Upon
request, the Contracting Officer will make their full text
available. Also, the full text of a clause may be accessed
electronically at this/these address(es):
----------------------------------------------------------------------
----------------------------------------------------------------------
[Insert one or more Internet addresses]
(d) Inspection/Acceptance. The Contractor shall tender for
acceptance only those items that conform to the requirements of this
contract. The Government reserves the right to inspect or test any
supplies or services that have been tendered for acceptance. The
Government may require repair or replacement of nonconforming
supplies or reperformance of nonconforming services at no increase
in contract price. The Government must exercise its postacceptance
rights--
(1) Within a reasonable period of time after the defect was
discovered or should have been discovered; and
(2) Before any substantial change occurs in the condition of the
item, unless the change is due to the defect in the item.
(e) Excusable delays. The Contractor shall be liable for default
unless nonperformance is caused by an occurrence beyond the
reasonable control of the Contractor and without its fault or
negligence, such as acts of God or the public enemy, acts of the
Government in either its sovereign or contractual capacity, fires,
floods, epidemics, quarantine restrictions, strikes, unusually
severe weather, and delays of common carriers. The Contractor shall
notify the Contracting Officer in writing as soon as it is
reasonably possible after the commencement of any excusable delay,
setting forth the full particulars in connection therewith, shall
remedy such occurrence with all reasonable dispatch, and shall
promptly give written notice to the Contracting Officer of the
cessation of such occurrence.
(f) Termination for the Government's convenience. The Government
reserves the right to terminate this contract, or any part hereof,
for its sole convenience. In the event of such termination, the
Contractor shall immediately stop all work hereunder and shall
immediately cause any and all of its suppliers and subcontractors to
cease work. Subject to the terms of this contract, the Contractor
shall be paid a percentage of the contract price reflecting the
percentage of the work performed prior to the notice of termination,
plus reasonable charges that the Contractor can demonstrate to the
satisfaction of the Government, using its standard record keeping
system, have resulted from the termination. The Contractor shall not
be required to comply with the cost accounting standards or contract
cost principles for this purpose. This paragraph does not give the
Government any right to audit the Contractor's records. The
Contractor shall not be paid for any work performed or costs
incurred that reasonably could have been avoided.
(g) Termination for cause. The Government may terminate this
contract, or any part hereof, for cause in the event of any default
by the Contractor, or if the Contractor fails to comply with any
contract terms and conditions, or fails to provide the Government,
upon request, with adequate assurances of future performance. In the
event of termination for cause, the Government shall not be liable
to the Contractor for any amount for supplies or services not
accepted, and the Contractor shall be liable to the Government for
any and all rights and remedies provided by law. If it is determined
that the Government improperly terminated this contract for default,
such termination shall be deemed a termination for convenience.
(h) Warranty. The Contractor warrants and implies that the items
delivered hereunder are merchantable and fit for use for the
particular purpose described in this contract.
(End of clause)
24. Sections 52.252-1 and 52.252-2 are revised to read as follows:
52.252-1 Solicitation Provisions Incorporated by Reference.
As prescribed in 52.107(a), insert the following provision:
Solicitation Provisions Incorporated by Reference (Feb 1998)
This solicitation incorporates one or more solicitation
provisions by reference, with the same force and effect as if they
were given in full text. Upon request, the Contracting Officer will
make their full text available. The offeror is cautioned that the
listed provisions may include blocks that must be completed by the
offeror and submitted with its quotation or offer. In lieu of
submitting
[[Page 64929]]
the full text of those provisions, the offeror may identify the
provision by paragraph identifier and provide the appropriate
information with its quotation or offer. Also, the full text of a
solicitation provision may be accessed electronically at this/these
address(es):
----------------------------------------------------------------------
----------------------------------------------------------------------
[Insert one or more Internet addresses]
(End of provision)
52.252-2 Clauses Incorporated by Reference.
As prescribed in 52.107(b), insert the following clause:
Clauses Incorporated by Reference (Feb 1998)
This contract incorporates one or more clauses by reference,
with the same force and effect as if they were given in full text.
Upon request, the Contracting Officer will make their full text
available. Also, the full text of a clause may be accessed
electronically at this/these address(es):
----------------------------------------------------------------------
----------------------------------------------------------------------
[Insert one or more Internet addresses]
(End of clause)
PART 53--FORMS
53.213 and 53.243 [Amended]
25. Amend the internal references throughout 53.213 and 53.243 as
indicated in the following table:
----------------------------------------------------------------------------------------------------------------
Location Remove Insert
----------------------------------------------------------------------------------------------------------------
53.213(a)...................... 13.107 both times it appears........................... 13.307(b)
53.213(b)...................... 13.503(b).............................................. 13.307(c)(3)
3.213(c)....................... 13.505(b).............................................. 13.306
53.213(d)...................... 13.404(e).............................................. 13.307(e)
53.213(e)...................... 13.107(c).............................................. 13.307(c)(1)
53.213(f)(1)................... 13.505................................................. 13.307
53.213(f)(2)................... 13.202................................................. 13.303-2
53.213(f)(2)................... 13.204(e).............................................. 13.303-5
53.243 undesignated paragraph.. 13.503(b).............................................. 13.302-3
----------------------------------------------------------------------------------------------------------------
[FR Doc. 97-31817 Filed 12-8-97; 8:45 am]
BILLING CODE 6820-EP-P
