AFARS PART 5113

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AFARS -- Part 13

Simplified Acquisition Procedures

Subpart 5113.2 -- Actions at or Below the Micro-Purchase Threshold

5113.201 -- General.

(a) Delegation of micro-purchase authority.

(D) Ensure accounts are not established or billing officials certify invoices until required letters of delegations and appointment letters have been issued to cardholders and approving officials /certifying officials.

(v) Approving officials shall:

(vi) Cardholders shall:

(c) Training Requirements.

5113.202-90 -- Purchase guidelines.

(a) Micro-purchase authority should be delegated to the lowest possible level. Purchase cards shall be issued only to individuals who have received the orientation/training on the purchase card program as required in these procedures.

(b) Contracting Officers shall not issue cards to contractors. If contractors working on cost type contracts request cards, their request shall be forwarded to the contracting officer for the cost-reimbursable contract. If that office determines that they are eligible, the contractor will then file a Request for Eligibility Determination with the GSA SmartPay Contracting Officer.

(c) Cardholders may be authorized to utilize the Government Purchase Card as a payment instrument for orders exceeding $3,000 made against Federal Supply Schedule contracts, calls written against a Blanket Purchase Agreement (BPA) or orders placed against Indefinite Delivery/Indefinite Quantity (IDIQ) contracts that contain a provision authorizing payment by purchase card.

(d) The purchase card may also provide a streamlined way of paying for contracts other than those above. Prior to using the card this way, the contracting office shall determine that use of the card for payment is in the best interest of the Government. The determination shall address any increase in price and/or administrative costs to use the card versus the costs of processing the payment without the card.

(e) The purchase card may also be used to pay for government-owned materiel or government-performed services received from other government sources (i.e., DAPS, GSA, DLA).

[AFARS Revision #21, dated May 22, 2007]

5113.270-90 Use of the Governmentwide commercial purchase card.

Use of the purchase card must meet the following conditions in addition to conditions imposed by the General Services Administration Federal Supply Schedule:

(a) Each transaction should involve a single delivery and payment. Receipt of the item should be within the billing cycle or by the time the monthly report is received to simplify monthly reconciliation.

(b) Cardholders shall not break down (split) requirements aggregating more than the micro-purchase threshold into several purchases merely to avoid any requirement that applies to purchases exceeding the micro-purchase threshold.

(c) Cardholders shall advise Merchants/Vendors at the time the transaction(s) is/are made that items purchased with the card are “For Official United States Government Use.” Most states will exempt purchases made by the Government from state and local taxes.

(d) Cardholders shall initially attempt to settle disputes with the merchant. If the merchant refuses to work with the cardholder, or if 45 days has passed without resolution since receipt of the statement containing the questionable transaction, the cardholders shall formally dispute the transaction with the card-issuing bank.

(e) When using the purchase card to pay for services/supplies received from other government sources (i.e., Document Automated Printing Service (DAPS), General Services Administration (GSA) stores or depots, Defense Logistics Agency (DLA), procurement thresholds do not apply. Payment with the card is mandatory for services obtained from the DAPS.

(f) Army organizations are authorized to use the Governmentwide Purchase Card (GPC) up to micro-purchase thresholds at DOD Non-appropriated fund instrumentality (NAFI), including Army and Air Force Exchange Service (AAFES) facilities, provided the resale activities are within scope of the particular NAFI’s charter. Purchases up to $50,000 maybe made from exchanges only (vice NAFI’s) by overseas organizations and the purchase card can be used as a method of payment.

(g) The purchase card shall be used as a method of payment for all commercial training $25,000 and below for the following:

(h) Dollar limits.

(2) For payment against existing contracts, the limit is as identified in the contract.

[AFARS Revision #21, dated May 22, 2007]

Subpart 5113.3 – Simplified Acquisition Methods

5113.302 -- Purchase orders.

5113.302-3 -- Obtaining contractor acceptance and modifying purchase orders.

(b) It is not necessary to modify a purchase order to document a shortage in the final shipment, provided the shortage is negligible.

5113.303 -- Blanket purchase agreements (BPAs).

5113.303-1 -- General.

(S-90)

(a) It is preferable to have multiple BPA’s for similar items and to establish prices using reverse auctions between BPA holders. If quantities are too small and not conducive to using a reverse auction, then when practicable, contracting officers should establish pre-priced BPAs by negotiating firm unit prices for specific periods of time or by incorporating supplier’s price lists or catalogs in BPAs.

(b) Blanket purchase agreements should not be established for supplies or services for which unpriced purchase orders should be used (FAR 13.302-2).

[AFARS Revision #21, dated May 22, 2007]

5113.303-2 -- Establishment of BPAs.

(S-90) Contracting Office Responsibilities.

(a) The contracting officer shall:

(b) Training for use of BPAs is the same as that required for the use of purchase cards. Orientation must focus on the BPA process, except that if the same individual will also be a purchase cardholder, BPA orientation must be in addition to the Purchase Card Program orientation. The chief of the contracting office is responsible for approving training course content and instructor qualifications when training is provided by someone outside the contracting office.

[AFARS Revision #21, dated May 22, 2007]

5113.303-6 -- Review procedures.

(b) In addition to the review procedures in FAR 13.303-6, contracting officers who authorize individuals to place calls under BPAs shall:

[AFARS Revision #21, dated May 22, 2007]

5113.306 -- Standard Form 44, Purchase Order -- Invoice --Voucher.

(S-90)

[AFARS Revision #21, dated May 22, 2007]

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