FAR Part 13 Flashcards

Question

Micropurchases and the Micropurchase Threshold Micropurchase

Answer 1

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

Answer 2

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.

Answer 3

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

Answer 4

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

Answer 5

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

Answer 6

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

Answer 7

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

Answer 8

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.

Answer 9

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

Answer 10

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.

Answer 11

efficiency and economy, and minimizes the burden and administrative costs for both the government and industry.

Answer 12

exclusively for small business concerns and shall be set aside. Some exceptions to this are detailed in FAR part 19.

Answer 13

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

Answer 14

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

Answer 15

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.

Answer 16

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.

Answer 17

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.

Answer 18

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.

Answer 19

of filling anticipated repetitive needs for supplies or services by establishing "charge accounts" with qualified sources of supply.

Answer 20

(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

Answer 21

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.

Answer 22

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

Answer 23

(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.

Answer 24

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).

FAR Part 13 Flashcards

Simplified Acquisition Procudures