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PART 1813

SMALL PURCHASE AND OTHER

SIMPLIFIED PURCHASE PROCEDURES

TABLE OF CONTENTS

SUBPART 1813.1 GENERAL

1813.104 Procedures.

SUBPART 1813.2 BLANKET PURCHASE AGREEMENTS

1813.203 Establishment of blanket purchase agreements.

1813.203-1 General.

1813.204 Purchases under blanket purchase agreements.

1813.205 Review procedures.

SUBPART 1813.3 FAST PAYMENT PROCEDURE

1813.302 Conditions for use.

1813.303 Preparation and execution of orders.

SUBPART 1813.4 IMPREST FUND

1813.402 Agency responsibilities.

1813.402-70 Establishment of imprest funds.

1813.403 Conditions for use.

1813.404 Procedures.

SUBPART 1813.5 PURCHASE ORDERS

1813.502 Unpriced purchase orders.

1813.505 Purchase order and related forms.

1813.505-1 Optional Form (OF) 347, Order for Supplies or Services, and Optional Form (OF) 348, Order for Supplies or Services- Continuation.

1813.505-3 Standard Form 44, Purchase Order-Invoice-Voucher.

SUBPART 1813.70 PROCUREMENT REQUEST OVERLAY METHOD

1813.7001 General.

1813.7002 Limitations on use.

1813.7003 Procedures.

SUBPART 1813.71 CREDIT CARDS

1813.7101 Scope of subpart.

1813.7102 Applicability.

1813.7103 Limitations.

1813.7104 Cardholders.

1813.7105 Approving officials.

1813.7106 COTR.

1813.7107 Administrative office contact.

PART 1813

SMALL PURCHASE AND OTHER

SIMPLIFIED PURCHASE PROCEDURES

Subpart 1813.1--General

1813.104 Procedures.

(a) Small purchase procedures are exempt from the requirements of FAR Part 6.

(b) When bulk funding is deemed appropriate, see Financial Management Manual 9030-5e and 9040-4b.

(c) For sole-source procurements over $2,500 involving (1) an individual employed by NASA during the past 2 years or (2) a firm in which such an individual is a partner, principal officer, or majority shareholder, or that is otherwise controlled or predominantly staffed by such individuals (see subpart 1803.70), the notation required by FAR 13.106(c)(2) shall be submitted for approval at a level above the contracting officer.

Subpart 1813.2--Blanket Purchase Agreements

1813.203 Establishment of blanket purchase agreements.

1813.203-1 General.

Blanket purchase agreements (BPA's) may be prepared and issued on any installation-prescribed purchase order form.

1813.204 Purchases under blanket purchase agreements.

Non-GS/GM-1102 or 1105 personnel shall not be authorized to place orders under a BPA in amounts greater than $2,500 for an individual order. A contracting officer warrant is not required to place an order under a BPA; however, individuals authorized to order must be specified in writing, by the contracting officer. Authority to place orders should be revoked immediately upon evidence of abuse.

1813.205 Review procedures.

The procurement officer shall ensure that all BPA files are reviewed at least annually to ascertain that appropriate procedures are being followed and that prices obtained are fair and reasonable.

Subpart 1813.3--Fast Payment Procedure

1813.302 Conditions for use.

Pursuant to FAR 13.302, the dollar limitation for NASA is hereby established as the small purchase ceiling for defense agencies.

1813.303 Preparation and execution of orders.

Orders incorporating the fast payment procedure may be issued on Optional Form 347, Order for Supplies or Services, or on any other installation-prescribed purchase order form.

Subpart 1813.4--Imprest Fund

1813.402 Agency responsibilities.

1813.402-70 Establishment of imprest funds.

(a) Authority. Upon approval of the Chief, Disbursing Office of the Treasury Department, the Director of Financial Management, NASA Headquarters, may authorize the establishment of imprest funds and any required subsequent increases to them. The number of imprest funds at an installation should generally be restricted to the minimum number necessary to ensure efficiency in small purchase transactions. Financial Management Manual 9650, Imprest Fund Procedures, should be used in conjunction with this subpart.

(b) Amount of imprest funds. The amount of each fund shall be established on the basis of the estimated monthly payments to be made from it and the need for replenishment without undue adminis- trative burden. Financial management officers of each NASA installation will designate one or more employee(s) in their office to make unannounced cash verifications of imprest fund balances at least quarterly. Each cash verification will be documented, and working papers retained for review by the Office of the Inspector General and personnel of the Financial Management Division, NASA Headquarters. In conjunction with the cash verification, the level of funds held in an imprest fund shall be evaluated on a semiannual basis (see FAR 13.402). The disclosure of any unauthorized use of or irregular accounting for an imprest fund during the quarterly cash verification, or the annual audit or at any other time, will be reported to the Director, Financial Management Division, NASA Headquarters.

(c) Imprest fund cashiers.

(1) Imprest fund cashiers shall be appointed in accordance with Financial Management Manual 9650 and are authorized to make cash payments for materials and nonpersonal services, maintain custody of funds, and file periodic vouchers to account for and replenish the imprest fund. Financial management or fiscal officers and others having access to accounting records or responsibility for originating, approving, processing, or receiving requirements are not eligible for appointment as imprest fund cashiers. In no event shall an imprest fund cashier have access to or control of more than one imprest fund.

(2) An alternate imprest fund cashier may be appointed (i) if the volume of work requires an alternate to the principal cashier or (ii) to provide service during the principal cashier's absence. Appointment requirements for principal cashiers shall apply to alternate cashiers. In planned short-term absences of the principal cashier, cash may be advanced by the principal to the alternate in an amount not to exceed the alternate's limit of the fund. Upon resuming duties, the principal cashier shall return the cash receipt to the alternate after obtaining paid receipts, subvouchers, and residual cash. In the absence of the principal cashier for more than 15 working days or for a period of time that will require submission of a reimbursable voucher before the principal's return, transfer of funds from the principal to the alternate cashier shall be accomplished as prescribed by Financial Management Manual 9650.

1813.403 Conditions for use.

(a) Imprest Funds may be used to make local cash payments of $300 or less for transactions involving--

(1) Small purchases and nonpersonal services which are readily available for delivery and do not require technical specifications or technical inspection and where direct cash payment will be advantageous to the government;

(2) Travel advances and vouchered reimbursements for travel expenses (not to exceed $500 for any one transaction);

(3) Postage stamps, parcel post, c.o.d. postal charges, and local drayage;

(4) Reimbursement for the cost of official local transportation and telephone or telegraphic services; or

(5) Prepaid transportation charges indicating f.o.b. shipping point which do not exceed $100.

(b) Imprest funds shall not be used for--

(1) Articles or services, particularly repetitive items, which are available from store stock inventories;

(2) Purchases of articles or services in quantities or amounts covered by mandatory sources of supply;

(3) Articles or services which are restricted by statutory or regulatory laws, i.e., newspapers and similar items;

(4) Paying salaries or wages;

(5) Advances, other than those authorized in 1813.404(b);

(6) Cashing checks or other nego- tiable instruments;

(7) For money orders or personal services unless authorized by the Director, Financial Management Division, NASA Headquarters; or

(8) Paying for international shipments or household goods shipments.

1813.404 Procedures.

(a) Receipt of material.

(1) All material purchased through the imprest fund shall be delivered to a designated receiving activity. The receiver shall examine the material to ascertain that the quantities and items described in the procurement request and the supplier's sales document are present and in satisfactory condition. If the material is acceptable, the receiver shall stamp the sales document "Received and Accepted," date and sign the document, and pass it to the imprest fund cashier for payment. In the absence of a supplier's sales document, a receipted Standard Form 1165, Receipt for Cash--Subvoucher, shall be used to record the receipt of purchases made from the imprest fund and shall be processed in the same manner.

(2) When it is not practicable to obtain delivery of material at destination on a c.o.d. basis, advance arrangements may be made for the material to be picked up. The imprest fund cashier may then advance cash to an authorized individual to pick up and pay for the material. Necessary certifications of receipt and acceptance of material shall be obtained on one of the documents as indicated in paragraph (a)(1) of this section. Receipt for cash payment (see paragraph (c) of this section) shall be made on the same document, which will serve as the imprest fund receipt.

(3) When prior arrangements for picking up material are not practicable, the imprest fund cashier may advance cash to an authorized individual to make a proposed purchase.

(b) Advance of funds. Individuals receiving a cash advance from the imprest fund cashier shall be required to sign the "Interim Receipt for Cash" portion of Standard Form 1165. After purchase has been made, the individual will return any unused cash to the imprest fund cashier with the necessary certifications of receipt, acceptance, and cash payment, at which time the imprest fund cashier shall void the interim receipt for cash. Cash advanced should generally be accounted for daily, but may be advanced for a period not to exceed five consecutive work days.

(c) Certification of cash payment.

(1) The original receipt document (or a copy tendered as the original) presented to the imprest fund cashier for payment shall be stamped with a certification containing --

(i) A statement that cash payment was received in full;

(ii) The amount paid;

(iii) The date of payment; and

(iv) The signature and title of the supplier or agent receiving the payment.

(2) Alterations or corrections to documents tendered for payment shall be initialled by the person making the change. Changes in the amount paid shall be initialled by the individual receiving payment.

(d) Responsibilities of imprest fund cashier. Pending receipt of material, the imprest fund cashier shall keep a file of procurement requests covering imprest fund purchases. Before payment or acceptance of the document tendered for settlement of an advance, the cashier shall verify the necessary certification of receipt and the supplier's billed price or the price paid. If the supplier's receipt for cash payment is not obtained for a purchase of $15 or less, the person making the purchase shall complete and sign the cash receipt document indicating receipt of funds from the imprest fund.

(e) Payments.

(1) C.o.d. Upon presentation of an authorized document with the necessary certification of receipt for supplies or services, the imprest fund cashier or other authorized individual shall pay the supplier or agent and obtain the certification of cash payment as required by paragraph (c) of this section.

(2) Receipt from common carrier or post office. When c.o.d. shipments are received or picked up from a common carrier or post office, the certification of cash payment may be accomplished on a list of the packages provided by the post office or common carrier. Such receipt shall be supported by copies of the applicable sales document, if available.

(3) Periodic payments. When use of a blanket purchase agreement is not suitable and it is administratively convenient and agreeable to the supplier, periodic payments from the imprest fund may be made for supplies delivered on a repetitive basis, provided that the accumulated amount of the deliveries for the specified period does not exceed the dollar limitation imposed on the imprest fund method by 1813.403.

(4) Failure to ship c.o.d. When material is ordered c.o.d., but is shipped by the supplier subject to payment by check, Standard Form 1034, Public Voucher for Purchases and Services Other than Personal, may be used to make payment. Under these circumstances, the receiver shall prepare the necessary certification of receipt and shall forward the receipted document through the imprest fund cashier for (i) attachment of the supporting documents authorizing the shipment and (ii) submission to the disbursing officer for payment.

(f) Reimbursement of imprest funds.

(1) The imprest fund shall be reimbursed in accordance with Financial Management Manual 9650.

(2) When a supplier refunds cash before submission of the Standard Form 1129, Reimbursement Voucher, covering the payment, the imprest fund cashier shall accept the refund, return it to the imprest fund, and enter the amount on the original of the supplier's receipt. When refund is made after submission of the applicable Standard Form 1129, the imprest fund cashier shall enter the amount on the retained copy of the reimbursement voucher and promptly (i) submit the refund directly to the disbursing officer or (ii) deposit it directly on Standard Form 209, Certificate of Deposit.

(g) Accounting. Recordkeeping shall be based on simplified memorandum records to permit frequent reconciliation of funds and should show (1) the amount of cash received, (2) the amount paid out, and (3) the balance on hand at the close of each day. It is permissible to group numerous small payments by numbering payment documents and affixing to them an adding-machine tape showing the total applying to each grouping of payment documents.

(h) Audits. The Financial Management Officer of each NASA installation having an Imprest Fund will perform an annual audit of the advances and disbursements made from the fund. Documentation covering the annual audit is retained for review by the Office of Inspector General and personnel of the Financial Management Division, NASA Headquarters. The Office of Inspector General, NASA Headquarters, will conduct an audit of each Imprest Fund not less than once every 3 years. More frequent audits may be made where, on the basis of past findings, the audits have disclosed procedural deficiencies.

Subpart 1813.5--Purchase Orders

1813.502 Unpriced purchase orders.

(a) NASA contracting officers shall ensure that suppliers receiving unpriced purchase orders are carefully selected.

(b) Orders shall not contain an estimated target unit price.

(c) Suitable local records and controls of outstanding unpriced purchase orders shall be maintained to ensure regular follow-up with suppliers until the order is priced. These records should include any information available to support the fairness and reasonableness of the proposed monetary limitation.

1813.505 Purchase order and related forms.

1813.505-1 Optional Form (OF) 347, Order for Supplies or Services, and Optional Form (OF) 348, Order for Supplies or Services Schedule-Continuation.

Optional Forms 347 and 348 or Installation-prescribed forms may be used.

1813.505-3 Standard Form 44, Purchase Order-Invoice-Voucher.

The $2,500 ceiling for use of the Standard Form 44 at FAR 13.505-3 is raised to $10,000 for purchases of aviation fuel and oil only.

Subpart 1813.70--Procurement Request Overlay Method

1813.7001 General.

This method is an acceptable adjunct to other simplified purchase procedures and may be used in placing oral orders when use of a BPA is too cumbersome or no BPA exists. Each transaction is recorded on a small form that attaches to, becomes a part of, and overlays a portion of the procurement request. Suppliers' delivery tickets are used as additional supporting documentation. Use of this method eliminates the administrative requirements for preparing and mailing individual purchase orders. This method may be used when suppliers (a) are willing to accept oral orders and (b) can be reasonably relied upon to fill them in accordance with the terms of the oral transaction.

1813.7002 Limitations on use.

This method shall not be used if--

(a) The requirements of more than one procurement request are to be combined in a transaction;

(b) More than one delivery will be required (unless the requirements of a single procurement request are to be divided among several suppliers and only one delivery per supplier is required);

(c) An installation-prescribed form or Optional Form 347 has been utilized;

(d) It is necessary or desirable to incorporate specifications or other terms and conditions in a written purchase order;

(e) GSA Federal Supply Schedules are to be used;

(f) Purchases are to be made from or through other Government agencies; or

(g) The amount of the purchase is over $2,500 (unless the purchase is made under a BPA).

1813.7003 Procedures.

(a) After competitive selection of the source (see FAR 13.106), the order may be placed by telephone. Particular care shall be taken to ensure that the supplier agrees to accept the order without written confirmation and that the order number, item descriptions, quantities, prices, and other terms and conditions are clearly understood. If the amount of the purchase does not exceed $300, the supplier should be encouraged to deliver c.o.d. (see FAR 13.403).

(b) The supplier shall be given all pertinent and specific instructions at the time of placing the order, including the installation's methods of handling charge purchases to be billed within a period of one month or less.

(c) Upon placing the order, the contracting officer shall (1) ensure that a preprinted overlay form is affixed to the procurement request and, if necessary, after the overlay is filled in (2) adjust the estimated unit and total cost figures of the procurement request to reflect the actual purchase price. This shall be done by lining through the original procurement request figures so that they remain legible. Any other changes in the original information of the procurement request to make it conform to the facts of the purchase shall be made in like manner. The preprinted overlay form shall contain at least the following information:

Order No.

Supplier (Name)

(Address, City)

(State, Zip)

Discount Terms

Delivery Date

Buyer

F.o.b. Destination

Procurement

Placement

Code

Action: procurement request line items ( ), ( ), (etc.) complete*

Total procurement request action: partial,* complete*

Payment: cash,* charge*

(Contracting Officer Signature)

Date Signed

(*Circle as appropriate)

(d) The contracting officer shall sign and date the completed overlay form on the procurement request.

(e) The procurement request with overlay shall be reproduced and distributed internally in accordance with the installation's local instructions to provide copies to the offices or activities responsible for receiving and accepting the merchandise, making cash payment, or processing charge purchases.

(f) In accordance with local instructions, copies of the supplier's delivery ticket received with the merchandise shall be distributed to establish receipt and acceptance of merchandise and serve as a basis for cash payment or obligation of funds and subsequent payment of charge purchases.

Subpart 1813.71--Credit Cards

1813.7101 Scope of subpart.

This subpart authorizes the use of the U.S. Government Credit Card. (See 1870.4 for NASA procedures under the NASA Credit Card System.)

1813.7102 Applicability.

This subpart applies to installations that have elected to participate in the credit card program by issuing a delivery order under the contract for Governmentwide Commercial Credit Card Service awarded by the General Services Administration, Federal Supply Service.

1813.7103 Limitations.

To use the GSA schedule contract, an installation must take the following actions before issuing a delivery order:

(a) Designate cardholders, approving officials, a Contracting Officer's Technical Representative (COTR), an Administrative Office Contact, and a Financial Management Office Contact.

(b) Establish procedures for covering the contractor's administrative fee.

1813.7104 Cardholders.

(a) Designation. The Procurement Officer shall determine the number of cardholders to be authorized at the installation and shall designate individual cardholders based on installation nomination procedures. The Procurement Officer shall issue a delegation of authority to each cardholder specifying the authority being delegated and any limitation on the authority. See FAR 3.104-4(h)(5) for procurement integrity requirements.

(b) Single purchase limits. The authority delegated to a cardholder shall not exceed the small purchase limit in FAR 13.000. This authority is the limit for a single purchase, which may include multiple items as part of the same transaction.

(c) Limitation on designations. Cardholders with authority for purchases above $2,500 shall be warranted contracting officers appointed under 1801.6.

(d) Training.

(1) Cardholders with purchase authority not exceeding $2,500 shall have completed 4 hours of training as determined by the cognizant procurement officer.

(2) Cardholders with purchase authority over $2,500, but not exceeding $25,000, shall have completed the formal training required by 1801.603-2(e)(1)(iii)(A).

(e) Review. The Procurement Officer shall establish a system for periodic review of the credit card transaction process, including a review of a sample of purchases, to ensure that proper purchasing procedures are being followed and that internal controls to avoid fraud, waste, and abuse are effective.

1813.7105 Approving officials.

Unless installation procedures otherwise provide for their designation, the Procurement Officer shall designate approving officials. The approving official should be the cardholder's supervisor or a higher level individual. A cardholder may not be an approving official for purchases made by the cardholder or the cardholder's supervisor.

1813.7106 COTR.

The Procurement Officer shall appoint a COTR and notify GSA of the appointment.

1813.7107 Administrative office contact.

The Procurement Officer shall appoint an installation Administrative Office Contact (who may be the COTR).

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