FAR Part 13

Question 1

Part 13

Answer 1

Simplified Acquisition Procedures

Question 2

Part 13 - Simplified Acquisition Procedures

Slide 16: Overview of Part 13

Answer 2

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).

Question 3

Part 13 - Simplified Acquisition Procedures

Subpart 13.1 - Procedures

Answer 3

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).

Question 4

Part 13 - Simplified Acquisition Procedures

Subpart 13.2 - Micro-Purchase Threshold

Answer 4

Purpose: Expedite small purchases with minimal administrative effort
(FAR 13.201).

Benefits: Reduces procurement lead time, streamlines processes, enhances flexibility (FAR 13.202).

Question 5

Part 13 - Simplified Acquisition Procedures

Subpart 13.3 - Simplified Acquisition Methods

Answer 5

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).

Question 6

Part 13 - Simplified Acquisition Procedures

Subpart 13.4 - Fast Payment Procedure

Answer 6

Purpose: Accelerate payments to vendors, improving cash flow (FAR
13.401).

Benefits: Improves vendor relations, reduces administrative burden, ensures timely delivery (FAR 13.402).

Question 7

Part 13 - Simplified Acquisition Procedures

Subpart 13.5 - Simplified Procedures for Certain Commercial Items

Answer 7

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).

Question 8

Simplified Acquisition Overview

Simplified acquisition

Answer 8

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.

Question 9

Simplified Acquisition Overview

Reasons to use simplified acquisition procedures:

Answer 9

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

Question 10

The Request for Quotations

Invitation for bids

Answer 10

Used in sealed bidding

Response is an offer, a bid

Question 11

The Request for Quotations

Request for proposals

Answer 11

Used in negotiation

Response is an offer, a proposal

Question 12

The Request for Quotations

Request for quotations

Answer 12

Used in simplified acquisitions

Response is not an offer: a quotation

Question 13

The Contracting Officer’s Responsibilities

In addition to other considerations, contracting officers shall:

Answer 13

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

Question 14

Agency requirement for supplies or services exceeding the simplified
acquisition threshold

Answer 14

$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.

Question 15

Sources of Information

System for Award Management

https://www.sam.gov/

Answer 15

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.

Question 16

Personal Preference
The contracting officer must not solicit quotations based

Answer 16

on personal preference, or restrict solicitation to suppliers of well- known and widely distributed makes or brands.

Question 17

Promoting Competition

Answer 17

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

Question 18

Promoting Competition

Unless the contract action requires synopsis in the GPE, and an exception is not applicable, the contracting officer shall consider solicitation

Answer 18

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.

Question 19

Evaluation of Quotations

When soliciting quotations or offers, the CO shall

Answer 19

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.

Question 20

Evaluation of Quotations

Answer 20

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.

Question 21

Solicitation from a Single Source

Single source

Answer 21

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).

Question 22

ContractAward

Whenever possible, price reasonableness should be determined based on:

Answer 22

Competitive quotations or offers

Question 23

ContractAward

If there was only one response, price reasonableness may be determined based on:

Answer 23

Market research

Prices previously found reasonable

Price lists, catalogs, or advertisements

Comparison to similar items

Personal knowledge of the item

Independent government estimat

Question 24

In making purchases, contracting officers should:

Answer 24

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

Question 25

Micropurchases and the Micropurchase Threshold

Micropurchase

Answer 25

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

Question 26

Simplified Acquisition Methods

Answer 26

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.

Question 27

Simplified Acquisition Methods

Government wide commercial purchase card

Answer 27

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

Question 28

Simplified Acquisition Methods

Purchase order (PO)

Answer 28

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

Question 29

Simplified Acquisition Methods
Blanket purchase agreement (BPA)

Answer 29

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

Question 30

Simplified Acquisition Methods

Imprest fund

Answer 30

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

Question 31

Simplified Acquisition Methods

Third-party draft

Answer 31

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

Question 32

Simplified Acquisition Methods

Standard Form 44

Answer 32

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.

Question 33

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.

Answer 33

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

Question 34

Simplified Procedures for Certain Commercial Items

Answer 34

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.

Question 35

Using simplified acquisition procedures for commercial items maximizes

Answer 35

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

Question 36

Generally, each acquisition of supplies or services that has an anticipated dollar value exceeding the MPT and not exceeding the SAT, are reserved

Answer 36

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

Question 37

In addition to other considerations, contracting officers are to

Answer 37

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

Question 38

Micro-purchases may be awarded without soliciting competitive quotations if the contracting officer determines

Answer 38

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

Question 39

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

Answer 39

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.

Question 40

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

Answer 40

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.

Question 41

Unpriced purchase orders are orders for supplies or services, the price of

Answer 41

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.

Question 42

If a purchase order needs to be terminated, the action taken is dependent upon the circumstances.

Answer 42

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.

Question 43

BLANKET PURCHASE AGREEMENTS (FAR
13.303)
A blanket purchase agreement (BPA) is a simplified method

Answer 43

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

Question 44

BPAs are appropriate

Answer 44

(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

Question 45

IMPREST FUNDS AND THIRD-PARTY DRAFTS (FAR 13.305)
An imprest fund is

Answer 45

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.

Question 46

Purchases made using imprest funds or third-party drafts shall be based upon

Answer 46

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

Question 47

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

Answer 47

(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.

Question 48

E. FAST PAYMENT PROCEDURE (FAR 13.4)

The fast payment procedure allows payment under limited conditions to a contractor prior

Answer 48

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).