FAR Part 13 Flashcards
Simplified Acquisition Procudures
Part 13
Simplified Acquisition Procedures
Part 13 - Simplified Acquisition Procedures
Slide 16: Overview of Part 13
Purpose: Simplify acquisition procedures for small procurements
(FAR 13.000).
KeySections:
* 13.1: General procedures (FAR 13.101).
* 13.2: Micro-purchase threshold (FAR 13.201).
* 13.3: Simplified acquisition methods (FAR 13.301).
* 13.4: Fast payment procedure (FAR 13.401).
* 13.5: Simplified procedures for commercial items (FAR 13.501).
Part 13 - Simplified Acquisition Procedures
Subpart 13.1 - Procedures
Purpose: Provide simplified methods for small acquisitions (FAR
13.101).
*CombineRelatedItems(FAR13.101(b)(1)):Include related items in one solicitation and make awards on an “all-or-none” or “multiple award” basis.
*Incorporate Provisions by Reference(FAR13.101(b)(2)):Use provisions and clauses by reference in solicitations and awards when appropriate.
*Maximize Trade and Prompt Payment Discounts(FAR13.101(b)(3)):Make efforts to obtain trade and prompt payment discounts, which should not be considered in the evaluation of quotations.
* Use Bulk Funding (FAR13.101(b)(4)):Utilize bulk funding to streamline financial authorization for numerous purchases over a specified period.
Benefits: Quick and efficient procurement, minimizes costs, reduces paperwork (FAR 13.102).
Part 13 - Simplified Acquisition Procedures
Subpart 13.2 - Micro-Purchase Threshold
Purpose: Expedite small purchases with minimal administrative effort
(FAR 13.201).
Benefits: Reduces procurement lead time, streamlines processes, enhances flexibility (FAR 13.202).
Part 13 - Simplified Acquisition Procedures
Subpart 13.3 - Simplified Acquisition Methods
Purpose:Providevariousmethodsforsimplifiedacquisitions(FAR13.301).
*Purchase Orders (FAR13.302): A streamlined method for acquiring goods and services, reducing the need for lengthy contracts.
* Blanket Purchase Agreements(BPAs)(FAR13.303):Allow agencies to establish agreements with suppliers for recurring needs, further simplifying the procurement process.
* Imprest Funds and Third-PartyDrafts(FAR13.305):Methods for small purchases that enable quick transactions with minimal administrative burden.
*Simplified Acquisition Threshold(SAT)(FAR13.000):Increases the threshold for simplified acquisitions, allowing more purchases to qualify for streamlined procedures
Benefits:Offers flexibility in procurement, reduces lead times and administrative costs (FAR 13.302).
Part 13 - Simplified Acquisition Procedures
Subpart 13.4 - Fast Payment Procedure
Purpose: Accelerate payments to vendors, improving cash flow (FAR
13.401).
Benefits: Improves vendor relations, reduces administrative burden, ensures timely delivery (FAR 13.402).
Part 13 - Simplified Acquisition Procedures
Subpart 13.5 - Simplified Procedures for Certain Commercial Items
Purpose: Simplify acquisition of specific commercial products and
services (FAR 13.501).
*Streamlined Solicitation Process(FAR13.501(a)):Contracting officers can combine the synopsis and solicitation in a single document, making it easier and faster to procure necessary items.
*Flexible Evaluation Methods(FAR13.501(b)):Simplified evaluations can be used, such as considering only price and past performance, without needing to use complex scoring systems.
Benefits: Reduces costs and procurement time, streamlines evaluation and award processes (FAR 13.502).
Simplified Acquisition Overview
Simplified acquisition
A less rigorous method for entering into relatively low-dollar-threshold contracts
Usually occurs without the elaborate and formal solicitation techniques required by
sealed bidding and negotiation
Simplified acquisition procedures are used for acquisitions which do not exceed the simplified acquisition threshold.
They may be used to purchase supplies and services, including construction; research and development; and commercial
items.
Simplified Acquisition Overview
Reasons to use simplified acquisition procedures:
To reduce administrative costs
To improve opportunities for small business
concerns to obtain a fair proportion of government contracts
To promote efficiency and economy in contracting
To avoid unnecessary burdens for agencies and contractors
The Request for Quotations
Invitation for bids
Used in sealed bidding
Response is an offer, a bid
The Request for Quotations
Request for proposals
Used in negotiation
Response is an offer, a proposal
The Request for Quotations
Request for quotations
Used in simplified acquisitions
Response is not an offer: a quotation
The Contracting Officer’s Responsibilities
In addition to other considerations, contracting officers shall:
Promote competition to the maximum extent practicable
Establish deadlines for the submission of quotations that afford suppliers a reasonable opportunity to respond
Consider all quotations or offers that are received in a timely manner
Use innovative approaches, to the maximum extent
practicable, in awarding contracts using simplified acquisition procedures
Agency requirement for supplies or services exceeding the simplified
acquisition threshold
$270K
$90K $90k$90K
Do not break down requirements aggregating more than the SAT into several purchases that
are less than the SAT merely to permit use of simplified acquisition procedures.
Do not break down requirements aggregating more than the micropurchase threshold into several purchases that are less than the micropurchase threshold merely to avoid requirements for purchases exceeding the micropurchase threshold.
Sources of Information
System for Award Management
https://www.sam.gov/
Contracting officers should use the SAM database as their primary source of vendor information. Offices maintaining additional vendor source files
or listings should identify the small-business status of each source when known.
The contracting officer shall promote competition to the maximum extent practicable, considering what is most advantageous ot the government.
Authorized individuals do not have to obtain individual
quotations for each purchase. Standing price quotations may
be used fi the pricing information is current, and the government obtains the maximum discounts before award.
Personal Preference
The contracting officer must not solicit quotations based
on personal preference, or restrict solicitation to suppliers of well- known and widely distributed makes or brands.
Promoting Competition
If using simplified acquisition procedures and not providing access to the notice of proposed contract action and solicitation information through the GPE, maximum practicable competition ordinarily can be obtained by soliciting quotations or offers from sources within the local trade area
Promoting Competition
Unless the contract action requires synopsis in the GPE, and an exception is not applicable, the contracting officer shall 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.
Evaluation of Quotations
When soliciting quotations or offers, the CO shall
notify potential offerors of the basis on which award
wil be made (price alone, or price and other factors, such as past performance or quality).
Solicitations are not required to state the relative
importance assigned to each evaluation factor, nor are they required to include subfactors.
Evaluation of Quotations
COs are encouraged to use best value.
COs have broad discretion ni fashioning suitable evaluation procedures. The procedures prescribed in
FAR Parts 14 and 15 are not mandatory.
Prior to award, the contracting officer must determine that the proposed price is fair and reasonable.
Solicitation from a Single Source
Single source
One source among others in a competitive marketplace that, for justifiable reason, is found to be most advantageous for the purpose of contract award
For purchases not exceeding the simplified acquisition threshold,
contracting officers may solicit from one source fi the contracting officer determines that the circumstances of the contract action deem only one
source reasonably available (due to, for example, urgency, exclusive licensing agreements, brand name, or industrial mobilization).
ContractAward
Whenever possible, price reasonableness should be determined based on:
Competitive quotations or offers
ContractAward
If there was only one response, price reasonableness may be determined based on:
Market research
Prices previously found reasonable
Price lists, catalogs, or advertisements
Comparison to similar items
Personal knowledge of the item
Independent government estimat
In making purchases, contracting officers should:
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
Incorporate provisions and clauses by reference in solicitations and in awards under requests for quotations
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
Use bulk funding to the maximum extent practicable
Micropurchases and the Micropurchase Threshold
Micropurchase
An acquisition of supplies or services, the aggregate amount of which does not exceed the micropurchase threshold
The micropurchase threshold is $3,500 generally
For acquisitions of construction subject to 40
U.S.C. chapter 31, subchapter IV, Wage Rate Requirements (Construction), the micropurchase threshold is $2,000.
For acquisitions of services subject to 41 U.S.C.
chapter 67, Service Contract Labor Standards, the micropurchase threshold is $2,500.
For acquisitions of supplies or services that are to be used to support a contingency operation or to facilitate defense against or
recovery from nuclear, biological, chemical or radiological attack, the micropurchase threshold is $20,000 for any contract to be
awarded and performed, or purchase to be made, inside the United States.
For acquisitions of supplies or services that are to be used to support a contingency operation or to facilitate defense against or
recovery from nuclear, biological, chemical or radiological attack, the micropurchase threshold is $35,000 for any contract to be awarded and performed, or purchase to be made, outside the United States.
The governmentwide commercial purchase card is the preferred method of payment for micro purchases
Simplified Acquisition Methods
The governmentwide commercial purchase c a r d is authorized for
purchases of supplies, services, or construction.
A blanket purchase agreement (BPA) is a simplified method of filing anticipated repetitive needs by establishing “charge accounts” with qualified sources.
Purchase orders are
generally issued on a fixed-price basis.
Imprest funds and
third party drafts may be used to acquire and to pay for supplies or services.
Simplified Acquisition Methods
Government wide commercial purchase card
Authorized for use in making and paying for purchases of supplies, services, or construction
May be used by contracting officers and other individuals designated by an agency head or a Certificate of Appointment
Purchases must be otherwise authorized by law or regulation
Simplified Acquisition Methods
Purchase order (PO)
Offer by the government to buy supplies or services using simplified acquisition procedures, generally issued on a fixed-price basis.
Specifies the quantity of supplies or scope of services ordered and a date for delivery of the supplies or
performance of the services
Provides for inspection and acceptance at destination
Includes trade and prompt payment discounts as offered
Simplified Acquisition Methods
Blanket purchase agreement (BPA)
A simplified method of filing anticipated repetitive needs for supplies or services by establishing “charge accounts” with qualified sources of supply
A wide variety of items is generally purchased, but the exact items, quantities, and delivery requirements are not known
Commercial sources of supply must be provided for offices or projects that do not have authority to purchase otherwise
To avoid writing numerous purchase orders
Simplified Acquisition Methods
Imprest fund
A cash fund of a fixed amount established by advance of funds for disbursement as needed, in cash, for relatively smal purchases.
Used when the transaction does not exceed $500, its use is advantageous to the government, and the use complies with any additional conditions established by agencies
Simplified Acquisition Methods
Third-party draft
An agency bank draft, similar to a check, that is used to acquire and to pay for supplies and
services
Used when the transaction does not exceed $2,500, its use is advantageous to the government, and the use complies with any additional conditions established by agencies
Simplified Acquisition Methods
Standard Form 44
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. tI also can be used as a receiving report, invoice, and public voucher.
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.
Dollar threshold
for FPP is $35,000
For deliveries of supplies to locations
where there is geographical separation and a lack of communication with
government activities that will make it impractical to make timely payment based on evidence of government acceptance
Simplified Procedures for Certain Commercial Items
Simplified procedures for the acquisition of supplies and services in amounts greater than the simplified acquisition threshold but not exceeding $7.5 million
including options.
Used when the contracting officer reasonably expects, based on the nature of the supplies or services sought and on market research, that offers wil include only commercial items.
Contracting officers may use any simplified acquisition procedure in this part, subject to any specific dollar limitation applicable to the particular procedure.
The procedure vests contracting officers with discretion and flexibility, so that commercial item acquisitions in this dollar range may be solicited, offered, evaluated, and awarded in a simplified manner.
Using simplified acquisition procedures for commercial items maximizes
efficiency and economy, and minimizes the burden and administrative costs for both the government and industry.
Generally, each acquisition of supplies or services that has an anticipated dollar value exceeding the MPT and not exceeding the SAT, are reserved
exclusively for small business concerns and shall be set aside. Some exceptions to this are detailed in FAR part 19.
In addition to other considerations, contracting officers are to
Promote competition to the maximum extent practicable,
Establish reasonable deadlines for submission of responses to solicitations,
Consider all quotations or offers that are received on time, and
Use innovative approaches to the maximum extent
Micro-purchases may be awarded without soliciting competitive quotations if the contracting officer determines
that the price is reasonable.
Action to verify price reasonableness should be taken only when the contracting officer suspects or has information to indicate that the price may not be reasonable or when purchasing a supply or service for which no comparable pricing information is readily available.
When using the governmentwide commercial purchase card as a method of payment, purchases at or below the MPT are exempt from verification in the SAM database as to whether the contractor has delinquent debt subject to collection under the Treasury Offset Program
GOVERNMENTWIDE COMMERCIAL PURCHASE
CARD (FAR 13.301)
The governmentwide commercial purchase card is authorized for use in making and/or paying for purchases of supplies, services, or construction and may be used by contracting officers and other designated individuals. The card may be used only for purchases that are otherwise authorized by law or regulation.
The governmentwide commercial purchase card may be used to
make micro-purchases;
place a task or delivery order (if authorized in the basic contract, basic ordering agreement,
or blanket purchase agreement);
or make payments, when the contractor agrees to accept payment by the card.
PURCHASE ORDERS (FAR 13.302)
A purchase order is an offer by the government to buy supplies or services, including construction and research and development, upon specified terms and conditions, using SAP. Except as provided under the unpriced purchase order method, purchase orders
are to be issued on a fixed-price basis.
Electronic funds transfer (EFT) is required for most payments.
When obtaining verbal quotes, the contracting officer shall inform the quoter of the EFT clause that will be in any resulting purchase order.
Unpriced purchase orders are orders for supplies or services, the price of
which is not established at the time of issuance of the order.
An example of this would be repairs to equipment that required disassembly to determine the nature or extent of repairs.
If a purchase order needs to be terminated, the action taken is dependent upon the circumstances.
If the contractor has accepted a purchase order, the contracting officer shall proceed with the termination procedure appropriate for the item covered by the order, which is either the commercial item or noncommercial item procedure.
If the purchase order has not been
accepted in writing, the contracting officer shall notify the contractor in writing that the order has been cancelled and request written acceptance from the contractor.
If that acceptance is received, the order is considered cancelled and no further action is required.
If the contractor attempts to recover costs from starting performance, it shall be handled as either a commercial item or noncommercial item termination.
BLANKET PURCHASE AGREEMENTS (FAR
13.303)
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.
BPAs are appropriate
(1) when requirements exist for a wide variety of items within a broad class of goods, but the exact items, quantities, and delivery requirements are not known in advance;
(2) when there is a need to provide commercial sources of supply for one or more offices in a given area that do not have or need authority to purchase otherwise;
(3) when the writing of numerous purchase orders can be avoided through the use of this procedure; or
(4) when there is no existing requirements contract for the same supply or service that the contracting activity is required to
IMPREST FUNDS AND THIRD-PARTY DRAFTS (FAR 13.305)
An imprest fund is
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 purchases.
A third-party draft means an agency bank draft, similar to a check that is used to acquire and to pay for supplies and services.
Purchases made using imprest funds or third-party drafts shall be based upon
an authorized purchase requisition, contracting officer verification statement, or another agency approved method of ensuring that adequate funds are available for the purchase.
Normally, purchases should be placed verbally and without soliciting competition if prices are considered reasonable.
For all practical purposes, there is simultaneous placement of the order and delivery of the items.
Therefore, clauses are not required for purchases using imprest funds or third-party
THE SF 44 PURCHASE ORDER-INVOICE-VOUCHER (FAR 13.306)
The SF 44 Purchase Order-Invoice-Voucher is amultipurpose pocket-sized 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 may be used when
(1) the amount of the purchase is at or below the MPT,
(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 SAP.
The form may also be used as a receiving report, invoice, or public voucher as needed.
E. FAST PAYMENT PROCEDURE (FAR 13.4)
The fast payment procedure allows payment under limited conditions to a contractor prior
government’s verification that supplies have been received and accepted.
They are generally used when an individual order does not exceed the limit identified in FAR 13.402 (a) and (b) and delivery must occur at a geographically separated location that would make it impractical to make timely payment based on evidence of government acceptance.
It provides for payment based on the contractor’s submission of an invoice, which constitutes the contractor’s representation that supplies have been delivered to a post office, common carrier, or point of first receipt by the government; and that the contractor agrees to replace, repair, or correct supplies not received at the destination, damaged in transit, or not conforming to the purchase agreement.
Title to the supplies passes to the government upon delivery to a post office or common carrier for mailing or shipment to destination (or upon receipt by the government, if the shipment is by means other than Postal Service or common carrier).
