USMC-CMPG

This Simplified Acquisition Procedures Guide is for Contracting Officers in the Marine Corps Field Contracting System (MCFCS) acquiring supplies or services under the following circumstances:

Using appropriated funds for an acquisition in which the aggregate amount of supplies or services does not exceed the Simplified Acquisition Threshold (SAT) as defined in .
Procuring commercial supplies or services with a value not greater than $5.5 million ($11 million for contingency operations) including Options, in accordance with .

Simplified Acquisition Procedures (SAP) were developed to accomplish the following:

Reduce administrative costs.
Improve opportunities for Small, Small Disadvantaged, Women-Owned, and Service-Disabled Veteran Owned Small Businesses.
Promote efficiency and economy in contracting.
Avoid unnecessary burdens for agencies and Contractors.

Simplified acquisitions follow the same basic contracting process as all procurements, involving progression through the five contracting phases: Planning, Solicitation, Evaluation, Award, and Postaward. Sections five through nine of this guide detail the steps involved in each of the five contracting phases, specific to acquisitions using SAP.

1.1 Regulations

The Department of the Navy (DON) SAP policies and procedures issued via NAVSUP Instruction implement and supplement the Federal Acquisition Regulation (FAR), Department of Defense (DoD) FAR Supplement (DFARS), and Navy Marine Corps Acquisition Regulation Supplement (NMCARS). Additional guidance on SAP is provided in the DFARS Procedures, Guidance, and Information (DFARS PGI) and Marine Corps Acquisition Procedures Supplement (MAPS).

Another source of SAP policy is the , which serves as a repository of SAP memos. Enter “DON Simplified Acquisition Policy” in the Policy Group field and leave all other fields blank. Click “Search” to find all policy memos that amend the , DON Simplified Acquisition Procedures. The Series provides guidance on the use of the Governmentwide Commercial Purchase Card (GCPC).

1.2 Key Terminology

Acquisition Team: All participants in a Government acquisition including representatives from the technical, financial, supply, logistics, legal, and procurement communities.

Contracting Officer: Term used throughout this guide to encompass all contracting personnel, including the Contract Specialist and Ordering Officer. In the MCFCS, the Contracting Officer and Ordering Officer are most often the same individual.

Customer/Project Officer/Requiring Activity/Program Manager: Terms used interchangeably throughout this guide to denote the requiring entity and associated support staff.

MCFCS: Marine Corps Field Contracting System. The USMC has undergone an organizational transformation resulting in a regional management model. This regionalization resulted in five geographically based Marine Corps Installations (MCIs). The MCFCS consists of those Regional Contracting Offices (RCOs) that support the MCI organization as well as other contracting offices that have been delegated contracting authority. The MCFCS provides general contracting support for supplies and services in support of USMC Posts, Camps, and Stations.

Micro-purchases: As defined in , a micro-purchase is an acquisition of supplies or services using Simplified Acquisition Procedures (SAP), the aggregate amount of which does not exceed the micro-purchase threshold. The micro-purchase threshold is $3,000 for supplies, $2,500 for services, and $2,000 for construction subject to the Davis-Bacon Act. The micro-purchase threshold increases to $15,000 for the acquisition of supplies or services in support of a contingency operation within the United States, and $25,000 for the acquisition of supplies or services in support of a contingency operation outside the United States. DoD policy requires micro-purchases to be made using the GCPC unless a written waiver has been obtained.

Offer: Per , an offer is a response to a solicitation that, if accepted, would bind the Offeror to perform the resultant contract. Vendor responses to invitations for bids (sealed bidding) are offers called “bids” or “sealed bids”; responses to requests for proposals (negotiation) are offers called “proposals”; however, responses to requests for quotations (simplified acquisitions) are “quotations,” not offers. Under Simplified Acquisition Procedures (SAP), a Vendor’s quotation is accepted when the Government issues an order. The order is the Government’s offer to buy certain supplies or services upon specified terms and conditions. A contract is established when the supplier accepts the Government’s offer. See for more information. The terms offer and quote (and thus Offeror and Quoter) have different legal connotations per ; however, for the purposes of simplicity in this SAP Module, the terms are used interchangeably.

Personal Services: Personal services contracts are defined in . These contracts in effect create an employer-employee relationship and may not be entered into by MCFCS personnel. Personal services contracts are not authorized because they circumvent civil service personnel laws and may violate the Veterans Preference Act and/or the Civilian Personnel Classification Act.

Purchase/Contract File: Contract files are established and maintained to serve as a background for informed decisions at each step of the acquisition process, provide information for reviews and investigations, and furnish essential facts in the event of litigation or Congressional inquiries. This file is often called a “purchase file” when created for procurements using SAP; however, for purposes of this guide, the file is hereafter referred to as the “contract file.”

Simplified Acquisition Procedures (SAP): SAP refers to the methods prescribed in for the acquisition of supplies or services, including construction, research and development, and commercial items below the Simplified Acquisition Threshold (SAT). SAP may also be used when procuring commercial supplies or services greater than $100,000 but not exceeding $5.5 million, including Options, in accordance with Test Program for Certain Commercial Items (see ). An order shall never be issued in excess of the MCFCS Contracting Officer’s specific delegation of authority.

Note: As stated in , SAP shall be used to the maximum extent practicable for all purchases of supplies or services not exceeding the SAT, unless requirements can be met by using a) required sources of supply under , b) existing indefinite delivery/indefinite quantity (IDIQ) contracts, or c) other established contracts.

Simplified Acquisition Threshold (SAT): As defined in , the SAT is $100,000, except for acquisitions of supplies or services that, as determined by the head of the contracting activity, are to be used to support a contingency operation or to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack (41 U.S.C. 428a), which means – (1) $250,000 for any contract to be awarded and performed, or purchase to be made, inside the United States; and (2) $1,000,000 for any contract to be awarded and performed, or purchase to be made, outside the United States. Note: The entire value of a procurement, including all Options, may not exceed the SAT in order to use SAP.

Small Business Concern: A concern, including its affiliates, that is independently owned and operated, not dominant in the field of operation in which it is bidding on Government contracts, and qualifies as a small business under the criteria and size standards in . To be eligible for award as a small business, an Offeror must represent in good faith that it is a small business at the time of its written representation. An Offeror may represent that it is a small business concern in connection with a specific solicitation if it meets the definition of a small business concern applicable to the solicitation and has not been determined by the Small Business Administration (SBA) to be other than a small business.

1.3 Simplified Acquisition Thresholds at a Glance

SIMPLIFIED ACQUISITION PROCEDURES	Threshold
Commercial or non-commercial buys ( )	$100,000
Contingency Operation or Defense against Nuclear, Biological, Chemical, or Radiological Attack – inside the United States	$250,000
Contingency Operation or Defense against Nuclear, Biological, Chemical, or Radiological Attack – outside the United States	$1,000,000
Commercial supplies and services per	$5,500,000
Commercial – contingency / used for defense against or recovery from attack per	$11,000,000

GOVERNMENTWIDE COMMERCIAL PURCHASE CARD (GCPC) CARDHOLDER PURCHASE LIMITS
Services ()	< $2,500
Supplies ()	< $3,000
Construction	< $2,000
Procurements outside of the United States	< $25,000
Contingency Operation or Defense against Nuclear, Biological, Chemical, or Radiological Attack (g)(1)*	< $15,000 CONUS < $25,000 OCONUS
GCPC as a Method of Payment
DoD Printing Requisitions	< $100,000
Purchase Orders, Blanket Purchase Agreement (BPA) Orders	< $100,000 < $5M for commercial items
Delivery Order against Federal Supply Schedules or Basic Ordering Agreements (BOAs) under Indefinite Delivery Contracts (IDCs)	< $9,999,900
Oral Orders for supplies against Letters of Agreement	$2,500 – $25,000
Delivery and Task Orders against competed IDIQ Contracts	< $100,000
Training Requirements using	< $25,000

Micro-purchases outside the United States in support of humanitarian, contingency, or peacekeeping operations may be authorized to use the GCPC on a stand-alone basis up to the SAT as defined by 10 U.S.C. 101(a)(13) and 10 U.S.C. 2302(8), per .

The Contracting Officer is prohibited, under , from breaking down requirements aggregating more than the above thresholds into several purchases that are less than the applicable threshold merely to permit use of SAP or avoid requirements applicable to purchases exceeding the micro-purchase threshold or the SAT (otherwise known as “splitting” to circumvent a threshold).

1.4 Purchase Procedures, per FAR 13.101

The Contracting Officer shall:

Comply with the policy in relating to economic purchase quantities, when practicable;
Satisfy the procedures described in with respect to Certificates of Competency before rejecting a quotation, oral or written, from a small business concern determined to be nonresponsible (see );
Provide for the inspection of supplies or services as prescribed in or ; and
Issue simplified acquisitions on a firm fixed-price basis unless approval to use other pricing methods has been received from NAVSUP.

The Contracting Officer 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 provided suppliers are so advised when quotations or offers are requested;
Incorporate provisions and clauses by reference in solicitations and in awards under requests for quotations, provided the requirements in are satisfied;
Make maximum effort to obtain trade and prompt payment discounts (see ). Prompt payment discounts shall not be considered in the evaluation of quotations; and
Use bulk funding to the maximum extent practicable. Bulk funding is a system whereby the Contracting Officer receives authorization from a fiscal and accounting officer to obligate funds on purchase documents against a specified lump sum of funds reserved for the purpose for a specified period of time rather than obtaining individual obligational authority on each purchase document. Bulk funding is particularly appropriate if numerous purchases using the same type of funds are to be made during a given period.

1.5 Authorized Representatives of the Contracting Officer

Contracting Officer’s Representatives (COR). COR appointments shall be in accordance with the policies outlined in (a). COR designation is common for services and procurement actions greater than the SAT; however, designation of a COR may be helpful in simplified acquisition awards as determined by the Contracting Officer. In the event that the Contracting Officer determines a COR is necessary, the procedures outlined in and shall be followed.

Ordering Officer. Ordering Officer appointments shall be in accordance with the policies outlined in (b). It is recommended that Ordering Officers, at a minimum, take a contracting course prior to appointment that provides instruction on contracting skill sets (e.g., CON 237 Simplified Acquisition Procedures). Ordering Officers must become fully knowledgeable with ordering procedures delineated in the specific contract that the Ordering Officer is assigned to.

1.6 Internal Controls / Separation of Functions

MCFCS must process Customer requirements in an expeditious manner that allows for effective management, control, and reporting to HQMC, I&L (Contracts). To satisfy this successfully, MCFCS should establish internal operating procedures for managing simplified acquisitions. This should include developing internal procedures for the management and over-sight of the procurement function, including developing a POA&M for performing internal reviews of compliance with simplified acquisition policies, procedures, processes, and functions.

1.6.1 Self Assessments and Internal Reviews

To maximize the utility of simplified acquisition policies and procedures, HCAs delegating contracting authority to offices using SAP should perform regularly scheduled self-assessments or internal reviews. Three types of reviews can be effective in accomplishing self-assessments at contracting offices using SAP:

Compliance Reviews. Contracting Officers should perform contract file reviews to ensure purchase practices are in compliance with DoD/DON guidance. Attention should be given to currency of existing local policies, procedures and instructions, Contracting Officer warrants and compliance with contract reporting procedures. In addition, a random sample of contract files should be reviewed to ensure that purchase actions are accomplished within current DoD and DON guidance.
Efficiency Reviews. Contracting Officers should perform reviews of SAP contract files to determine if the most efficient procurement methods are being utilized. A review of POs of a repetitive requirement may indicate that a BPA would better serve the Customer. A review of BPAs and BPA Calls over a period of time may indicate that an opportunity for a long term IDIQ would better serve the Customer. A review of requirements may reveal that establishing BPAs with FSS Schedule holders would serve the Customer. This review can be accomplished in conjunction with the compliance reviews.
Quality Reviews. Contracting Officers should perform process reviews of contracting offices using simplified acquisitions. The review should identify and evaluate processes currently utilized in accomplishing SAP requirements. This should provide activity managers an opportunity to evaluate the need for process improvement in areas like screening for mandatory sources, requisitioning, evaluation of quotations, award requirements including contract administration and areas related to utilization of acquisition reform initiatives.

1.6.2 Separation of Duties

Separation of duties is essential to establish checks and balances in the procurement process. provides that controls shall be established to ensure a three-way separation of function to prevent fraud, waste, and abuse. A single individual may perform only one of the following functions: requirement initiation; award of contract or placement of order; and receipt, inspection, and acceptance of supplies or services. To protect the integrity of the procurement process, if a three-way separation is impractical (i.e., when a single individual is not available for each function), there shall be, at an absolute minimum, at least two different individuals responsible for these three functions (two-way separation of function). The individual responsible for awarding the contract should never also receive, inspect, or accept. In this situation, the Contracting Officer should note, in the contract file, the reasons the required separation is impractical and any in-place internal controls to offset inherent risks.

1.7 Ethics

Statutes prohibit Government personnel from accepting gifts or bribes; using public office for private gain; giving preferential treatment to any person; losing complete independence and impartiality in business decisions; making a Government decision outside official channels; or eroding the confidence of the public in the integrity of the Government. Any concerns or questions about ethics-related issues that arise in purchases using SAP should be directed to CL field Counsel (see ).

Ethics and Contractors in the Workplace

In the latest Annual Conflict of Interest Prosecution Survey by the Office of Government Ethics, nearly 75 percent of prosecutions involved contract-related misconduct. Contractor performance is essential to accomplishing nearly every aspect of the USMC mission. The increased use of contractors and instances of “mixed workplaces” reinforces the need for Government employees – not restricted to those in formal “procurement” or “contracting” positions – to stay informed of their legal and ethical requirements. Consider the following during day-to-day decision making:

Allowing “Time Off.” Federal Personnel System rules and regulations are not applicable to contractor personnel. Contractor personnel time is billed to the Government under procurement and fiscal laws and regulations. Decisions concerning “time off” (i.e., 59 minutes) are to be made by the contractor management and NOT the Government. Contractor personnel are paid pursuant to the terms of their contract with the Marine Corps, not according to Federal personnel system rules/regulations. Exercise caution and judgment during holiday parties, training, off-site conferences, etc. Coordinate with the Contracting Officer and CL field Counsel, if necessary, and ensure that contractor personnel are informed.
Misuse of Contractor Personnel. Government employees are prohibited from directing contractor personnel to perform any tasks other than those specified in the contract. Examples of contractor misuse include having them pick up dry-cleaning, prescriptions, or meals, and assisting with unofficial activities in support of non-Federal entities.

As shown in the and its attachments: and , compliance with provisions such as the Procurement Integrity Act does not necessarily equate to compliance with related, yet different, provisions in the ethics laws and regulations.
For a better understanding of ethics and conflicts of interest, see the .

1.8 Recommended Procurement Administrative Lead Times (PALT)

The Procurement Administrative Lead Time (PALT) in the table below are considered general lead times for commercial acquisition buys and may be used as guidelines for workload planning by the Contracting Officer and the Customer. Marine Corps units that execute simplified acquisitions are required and encouraged to process requirements in the timeliest manner possible while remaining within legal, regulatory, and procedural confines.

Dollar Value	Acquisition	Work Days to Award
Under $25,000	All SAP	30
$25,001-$100,000	Supplies	50
$25,001-$100,000	Services	60
$100,000-$5M	In accordance with the AP	As negotiated/TBD
Any	GSA Schedule Orders	30-90
Any	Establish BPA under GSA	60

The range under the column entitled "Work Days to Award" can be subjectively applied to Marine Corps units that routinely process high volumes of a mix of simplified acquisitions, (i.e., an average of 100 to 300 per week) and for units that routinely process low volumes of a mix of simplified acquisitions (i.e., 15 to 25 per week).

2.0 Required Sources of Supplies and Services

An imperative step in the acquisition process is screening mandatory Government Sources of Supply for their availability to meet the Government’s requirements. Once the Marine Corps has identified a need for supplies/services, it is essential to determine whether the need can be fulfilled by a required source of supply or service as specified in . Many of the required sources offer the Contracting Officer access to a wide range of supplies and services and provide simple ordering procedures to easily satisfy the Customer’s requirements.

In determining if a required source meets the Government's need, Contracting Officer should consider factors such as end-function, delivery date, quantity, shipping point, and cost. All procurement actions, regardless of dollar value, shall use the following sources of supplies and services in the order in which they are listed ():

Supplies by Descending Order of Priority

Agency Inventories (i.e., stock items that may be maintained by DON/USMC)
Excess From Other Agencies (see )
Federal Prison Industries, Inc. (UNICOR) (see )
Supplies which are on the Procurement List maintained by the Committee for Purchase From People Who Are Blind or Severely Disabled (see )
Wholesale supply sources such as General Services Administration (GSA) stock programs, the Defense Logistics Agency (DLA), Department of Veterans Affairs (VA), and Military Inventory Control Points (ICPs)
Mandatory Federal Supply Schedules (FSS) (see ) (not applicable to DoD)
Optional use FSS (see )
Commercial Sources (including educational and nonprofit institutions)

Services by Descending Order of Priority

Services which are on the Procurement List maintained by the Committee for Purchase From People Who Are Blind or Severely Disabled (see )
Mandatory FSS (see ) (not applicable to DoD)
Optional use FSS (see )
Federal Prison Industries, Inc. (UNICOR) (see ) or Commercial Sources (including educational and nonprofit institutions)

2.1 Agency Inventories

The term “agency inventory” refers to in-house stock items (e.g., excess personal property). Per , agency personnel must make positive efforts to satisfy agency requirements by obtaining and using excess personal property (including that which is suitable for adaptation or substitution) before initiating a contract action.

Information regarding the availability of excess personal property can be obtained through the following:

Review of excess personal property catalogs and bulletins issued by the GSA;
Personal contact with GSA or the activity holding the property;
Submission of supply requirements to the regional offices of GSA (GSA Form 1539, Request for Excess Personal Property, is available for this purpose); and
Examination and inspection of reports and samples of excess personal property in GSA regional offices.

2.2 Excess from Other Agencies

When an agency is unable to fulfill a requirement using excess personal property, it shall next seek property from other agencies.

2.3 UNICOR / Federal Prison Industries (FPI)

UNICOR is the trade name for the Federal Prison Industries (FPI) – a self-supporting, wholly owned Government corporation of the District of Columbia that provides training and employment for prisoners in Federal correctional institutions. governs the procedures for purchases from , which provides a wide range of products and services listed in its FPI schedule that are available for purchase at prices not to exceed current market prices. Supplies manufactured by FPI are in strict conformity with Federal specifications.

requires Contracting Officers to use competitive procedures when acquiring products for which FPI’s market share exceeds five percent. If this is the case, FPI is to be solicited in the same manner as other sources.

If FPI does not have a five percent market share for a particular product, Contracting Officers are required to follow the procedures outlined in for FPI acquisitions. Specifically, the Contracting Officer is required to conduct market research and then make a written determination (documented in a Determination and Findings (D&F)) whether or not the FPI item is comparable to supplies available from the private sector that best meet the Government's needs in terms of price, quality, and delivery schedule. The determination is a unilateral decision made solely at the discretion of the Contracting Officer and shall be retained in the contract file. Market research is not required if the purchase will be made from a source other than FPI based on an exception listed in (which are listed below).
If an item is comparable, it should be purchased from FPI (following procedures at ), unless a waiver is obtained. FPI waivers are discussed at ; waiver requests should be sent electronically to . If the item is found to not be comparable, the item should be acquired using competitive procedures (, , and ) or the fair opportunity procedures in

Authorized Exceptions (FAR 8.605) Purchase from FPI is not mandatory and a waiver is not required if:

The Contracting Officer makes a determination that the FPI item of supply is not comparable to supplies available from the private sector that best meet the Government's needs in terms of price, quality, and time of delivery; and
The item is acquired in accordance with (a)(4);
Public exigency requires immediate delivery or performance;
Suitable used or excess supplies are available;
The supplies are acquired and used outside the United States;
Items being acquired total $3,000 or less; or
Services are being acquired.

Items listed in the FPI Schedule of Products are normally ordered using the DD 1155 Order for Supplies or Services. However, FPI also offers a Quick Ship/credit card option for expedited delivery.

2.4 Committee for Purchase From People Who Are Blind or Severely Disabled (AbilityOne/NIB-NISH)

Federal agencies and activities are required by the Javits-Wagner-O'Day (JWOD) Act and the rules of the National Industries for the Blind and Severely Disabled (NIB/NISH) to purchase requirements for selected supplies and services from nonprofit agencies employing people who are blind or severely disabled () at Committee-established prices if available during the required period.

Contracting Officers should be aware of the supplies/services available under AbilityOne (renamed from JWOD Program in 2006) and utilize them to the maximum extent practicable. The two central nonprofit agencies under AbilityOne are:

Before placing orders with any source, buyers must ensure that they have first screened the requirement(s) for mandatory products and documented the contract file with the results of the screening. Remember: The contract file must provide an audit trail of all actions taken by the buyer. If there is “special” need for which the A-List product won't work, the file should be annotated. As an example: A buyer purchased a commercial, thick, black marker instead of a Skillcraft marker. Only after some discussion with Command personnel did the reviewing official learn that the marker was needed by divers to mark ships' hulls. AbilityOne doesn't make a water insoluble marker and the buyer had failed to adequately annotate the file.

The Contracting Officer must obtain supplies on the from the central nonprofit agency or its designated participating AbilityOne nonprofit agency. Consult the AbilityOne website for specific ordering information. If supplies on the Procurement List are available from DLA, GSA, or VA facilities, these supplies may be ordered from these agencies in lieu of ordering directly from the AbilityOne Program as these agencies also provide the AbilityOne products. See also the .

For policy information on Central Nonprofit Agency Fees under AbilityOne acquisitions, see the .

2.5 Wholesale Supply Sources

Wholesale supply source is an umbrella term identifying the various Government-managed supply systems (GSA, DLA, VA, ICPs). Items are obtained utilizing various requisition methods. See 41 CFR 101-26.6 for information on DLA and 41 CFR 101-26.704 for information on VA. The Code of Federal Regulations can be found at .

2.6 General Services Administration (GSA) Federal Supply Schedules (FSS)

The General Services Administration (GSA) Federal Supply Schedule (FSS) Program (see ) is authorized to issue Governmentwide Acquisition Contracts (GWACs) – contracts that allow DoD agencies to place orders with commercial firms for services and products at stated prices for given periods of time. Orders are placed directly with the Schedule Contractor and deliveries are made to the Customer. This provides ordering activities with a simplified process for obtaining commonly used supplies and services at prices associated with volume buying. When placing orders under an FSS contract, Contracting Officers must request at least three proposals but need not seek further external competition or synopsize the requirement. GSA programs and Schedule information are available at the .

Placing an order against a GSA FSS, however, is not always an easy nor the best solution. Open market competitions generally provide greater flexibility in reserving items to meet socioeconomic goals and particularly for developmental or commercial items, the Government may receive a price benefit as a result of competing the item on the open market. The Contracting Officer is still required to document the reasonableness of the procurement by completing a Business Clearance Memorandum (BCM) for orders exceeding $100,000 or a Simplified Acquisition Documentation Record for actions exceeding the micro-purchase threshold up to $100,000. The BCM for Direct Acquisitions greater than $100,000 must be prepared in accordance with the BCM documentation requirements outlined in .

While prices offered on GSA have been determined to be fair and reasonable, multiple/competing offers can provide lower rates resulting in additional savings to the Government. Contracting Officers should seek discounts off of the published schedule prices when an order exceeds the maximum order threshold, when the supply or service is available elsewhere at a lower price, or when establishing a BPA to fulfill recurring requirements. The discounts may be based on such things as comparisons with other Vendor prices and quantity discounts. For services, the Contracting Officer is responsible for considering the level of effort and the mix of labor proposed to perform a specific task being ordered, and for determining that the total price is reasonable. In addition, if in the Contracting Officer’s judgment, introduction of competition from non-schedule sources would be in the best interest of the Government in terms of price, delivery, or quality, non-schedule alternatives should be utilized. (See , Chapter 4, Section 4.)

Many Contracting Officers have delegations of authority which differentiate between contracting authority for Government sources of supply and awards where a Purchase Order or BPA would be issued. If the Contracting Officer elects to award to a Contractor who does not have a GSA Schedule, he/she may not exceed the specific delegation of authority for nonschedule awards.

There are two types of GSA FSS:

Single Award Schedule – Single award schedules are those schedules in which only one Contractor is listed on the schedule to provide those specific supplies. The list of supplies and services in each schedule contains the items or services available from that schedule. When contemplating a single award schedule, Contracting Officers should check schedule provisions such as expiration date, delivery schedule and transportation terms and price for his/her geographic area.
Multiple Award Schedule (MAS) – Multiple award schedules are GSA FSS contract schedules in which there are several Vendors in any given commodity who offer the same or similar supplies. The Contracting Officer should review and compare among the Vendors and various supplies offered on the schedule before making a best value determination. Best value considerations include special features, trade-in considerations, probable life of the item compared with that of a comparable item, warranty, maintenance availability, past performance, and environmental and energy efficiency. (See .)

Contracting Officers can place orders at or below the micro-purchase threshold with any FSS Contractor.
Orders exceeding the micro-purchase threshold - Ordering activities should ensure that awards over the micro-purchase threshold under MAS represent the best value and meet the Government’s needs at the lowest overall cost (the price of the item plus administrative costs). To accomplish this, an ordering activity should consider reasonable available information about products offered under MAS contracts by utilizing GSA Advantage!, the online shopping service, or by reviewing the catalogs/price lists of at least three schedule contractors and selecting the delivery and other options available under the schedule that meets the Government’s needs. In selecting the supply or service representing best value, the Contracting Officer/ buyer may consider the following factors: special features of the supply or service required for effective program performance, trade-in considerations, probable life of the item selected as compared with a comparable item, warranty provisions, past performance, and environmental and energy efficiency considerations.

2.6.1 Sole Source Justification for Orders under GSA FSS (At or Below the SAT)

The below information is applicable to justifications limiting sources for GSA FSS orders at or below the SAT. For orders under GSA FSS that are above $100,000, justifications shall be prepared using the procedures outlined in .

For orders above the micro-purchase threshold and at or below $100,000, the Contracting Officer shall document the circumstances of the restricted competition as required by (f). The documentation shall be in the format outlined in the .

2.6.2 GSA Advantage!

GSA offers an online shopping service called “GSA Advantage!” through which Contracting Officers may place orders against Schedules. Contracting Officers may access GSA Advantage! through the . The Contracting Officer may search specific information (e.g., national stock number, part number, common name), review delivery options, place orders directly with Schedule Contractors and pay for orders at GSA Advantage!.

2.6.3 e-Buy

e-Buy is an electronic system that allows Federal buyers to request information, find sources, and prepare RFQs/RFPs online for services and products offered through GSA’s MAS program. e-Buy facilitates the request for and submission of offers for commercial products and services offered through GSA FSS and GWACs. Using the e-Buy system, Contracting Officers may prepare and post an RFQ/RFP for a specified period of time and Contractors may review the request and post a response. e-Buy may be used to provide fair notice to all Contractors as required by (c)(2).

e-Buy leverages the power of the Internet to increase FSS and GWAC Contractor participation to obtain quotations that result in best value procurement opportunities. For more information, visit .

2.7 Existing Indefinite Delivery Contracts (IDCs) and Multiple Awards Contracts (MACs)

Contracts established under FSS are generally IDCs. IDCs are used when a future need for supplies and services is known, but the exact times and/or quantities of future deliveries may not be known at the time of contract award, allowing the Contracting Officer to place individual DOs or TOs as needs are determined. Contracting Officers should screen local contracts and other MCFCS and agency contracts (external to the Marine Corps) to attempt to fill Customer requirements utilizing existing IDCs. When issuing DOs/TOs against single award IDCs, the Contracting Officer does not need to seek competition or synopsize, and does not need to negotiate terms or prices.

Firm fixed-price orders are normally placed against IDCs for supplies or services, GSA Schedules, or contracts with Government agencies such as FPI and nonprofit agencies employing people who are blind or severely disabled. Under an IDC, three contract types exist:

Definite Quantity – in which a known quantity exists yet the delivery schedule is unknown.
Indefinite Quantity – in which the quantity and delivery schedules are unknown and the IDC promises a minimum quantity to the Contractor.
Requirements – guarantees that all requirements for contract line items will be ordered from the Contractor that awarded the IDC.

Whether single or multiple award IDC contracts, at a minimum, the IDC contract should include:

Terms and conditions
Authorized Contracting Officers
Contract Line Item Numbers (CLINs) and unit prices
Basic contract price and any Option period prices
Minimum/maximum order quantities
Delivery locations and time frames

Oral Orders Oral orders may be issued against an IDC if authorized in the basic contract. If payment will be made by Governmentwide Commercial Purchase Card (GCPC), issuance of a confirming written order is not required. The cardholder must ensure that the information required by (a)(6) is documented in the purchase file or on the GCPC purchase log or IDC DO/TO log. If payment will not be made by GCPC, oral orders must be confirmed in writing. The basic contract will provide instruction on ordering and confirmation procedures. See the for more information on use of GCPC as the method of payment for IDC orders.

Multiple Award Contracts (MACs). The Contracting Officer should, to the maximum extent practicable, give preference to making multiple awards under a single solicitation for the same or similar supplies or services to two or more sources.

2.8 EMALL

Effective 1 May 2006, all DON purchases of office supplies by appropriated fund activities are limited to the various contracting vehicles available on the DOD EMALL or from existing Base Supply Stores/ServMarts.

The DOD EMALL is a single entry point for buyers to find and acquire commercial off-the-shelf (COTS) goods from commercial and Government suppliers. identifies suppliers from the mandatory sources list, including but not limited to, DLA inventories, GSA goods, and AbilityOne programs. Using the GCPC, users may obtain supplies, parts, and commercial IT products from the Internet. General Services Administration Federal Supply Schedule 75, Special Item Number 200, defines Office Supplies as commercially available off-the-shelf items. A sampling of examples include: binders, clips and fasteners, staplers, pencils, pens, paper, printer and toner cartridges, calendars, pads, notebooks, desk accessories, filing supplies, post-it notes, scissors, tape, waste containers, and data storage media (e.g., CDs, diskettes, digital tape).

A Base Supply Store/ServMart is an on-installation retail store operation selling a wide range of office, janitorial supply, and other products, including AbilityOne items, to primarily meet the same-day shopping needs of its Government customers. Existing Base Supply Stores supporting Navy customers at various locations around the world include stores operated by NIB/NISH organizations, NEXCOM, or GSA, as well as the FISC San Diego Virtual Office Supply Contract.

See for more information. Deployed units and OCONUS sites are exempted from the mandatory use of the DOD EMALL and may use local sources of supply (see ASN(RD&A) Memorandum for Distribution: ).

2.9 Acquisition of Printing Services and Related Supplies

Government printing and related supplies are also Federally mandated to be performed/furnished by or through the Government Printing Office (GPO) unless an exception exists (see (a)). For the Department of Defense (DoD), rather than going directly to GPO, the Document Automation and Production Service (DAPS) () serves as the single manager for printing and high speed, high volume duplicating, including both the operation of DoD in-house facilities and the procurement of these services from outside the DoD, and as the preferred provider of document conversion and/or automation services. For more information, see .

2.10 Commercial Sources

Purchases from commercial sources (e.g., Purchase Orders and IDC Awards) are those made from commercial Vendors when all other mandatory supply sources have been evaluated and excluded. In open market purchasing, the conditions of a purchase can typically be agreed upon and a standard Government purchase document is used to accomplish the buy (e.g., SF 1449 or DD 1155).

Vendors may request signature of their own industry agreements – Do Not Sign Vendor Agreements. Congress provides methods and tools for obligating money on behalf of the U.S. Government, and the Contracting Officer must use only the Government’s procurement methods, required forms (e.g., Department of Defense (DD), Standard Forms (SF)), and tools (e.g., regulations, guidance) to establish contracts. Contact CL field Counsel for clarification, if needed.

3.0 Micro-Purchases

Actions at or below the micro-purchase threshold are all open market purchases of supplies less than $3,000 or services less than $2,500, or supplies/services less than $15,000 ($25,000 outside the United States) in support of a contingency operation or to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack for a contract to be awarded and performed, or purchase to be made within the United States. See , and .

Micro-purchasing regulations are designed to reduce administrative work and expedite the purchases of readily available supplies and services. After determining that supplies/services are not available from mandatory sources (as must occur in all procurements per – see ), the Contracting Officer may initiate a micro-purchase.

3.1 Governmentwide Commercial Purchase Card (GCPC)

With few exceptions, mandates use of the Governmentwide Commercial Purchase Card (GCPC) for all micro-purchases, either as a procurement method or as a method of payment under another simplified acquisition method (e.g., Purchase Orders (POs) and Blanket Purchase Agreements (BPAs)). The GCPC may only be used as a method of payment for MCFCS transactions greater than the micro-purchase threshold when certain conditions apply. For details on method of payment, see the and . This policy applies to orders processed via the Standard Procurement System (SPS).

requires the use of the GCPC as the method of purchase and/or method of payment for purchases valued at or below the micro-purchase threshold. This policy applies to all types of contract actions authorized by the FAR unless one of the following applies:

A General or Flag Officer or a member of the Senior Executive Service (SES) makes a written determination that –

The source or sources available for the supply or service do not accept the GCPC; and
The Contracting Office is seeking a source that accepts the GCPC.

To prevent mission delays, if an activity does not have a resident General or Flag Officer or SES member, delegation of this authority to the level of the senior local commander or director is permitted; or
The purchase or payment meets one or more of the following criteria:

The place of performance is entirely outside the United States and its outlying areas.
The purchase is an SF 44 purchase for aviation fuel or oil.
The purchase is an overseas transaction by a Contracting Officer in support of a contingency operation as defined in 10 U.S.C. 101(a)(13) or a humanitarian or peacekeeping operation as defined in 10 U.S.C. 2302(8).
The purchase is a transaction in support of intelligence or other specialized activities addressed by Part 2.7 of Executive Order 12333.
The purchase is for training exercises in preparation for overseas contingency, humanitarian, or peacekeeping operations.
The payment is made with a Convenience Check.
The payment is for a transportation bill.
The purchase is under a Federal Supply Schedule contract that does not permit use of the GCPC.
The purchase is for medical services and:

It involves a controlled substance or narcotic;
It requires the submission of a Health Care Summary Record to document the nature of the care purchased;
The ultimate price of the medical care is subject to an independent determination that changes the price paid based on application of a mandatory CHAMPUS Maximum Allowable Charge determination that reduces the Government liability below billed charges;
The Government already has entered into a contract to pay for the services without the use of a purchase card;
The purchaser is a beneficiary seeking medical care; or
The senior local commander or director of a hospital or laboratory determines that use of the GCPC is not appropriate or cost-effective. The Medical Prime Vendor Program and the DoD Medical Electronic Catalog Program are two examples where use of the GCPC may not be cost-effective.

3.2 Buy Green

Micro-purchases must comply with the Resource Conservation and Recovery Act (RCRA) and Executive Order 13101 of September 14, 1988, entitled "Greening the Government through Waste Prevention, Recycling, and Federal Acquisition." The Executive Order directs the Environment Protection Agency (EPA) to issue guidance on buying "environmentally preferable products." Each year, EPA distributes recommended products and materials that each agency is required to buy for all procurements. See for an explanation of EPA designated products.

3.3 Guidelines

Here are some general guidelines for micro-purchases:

Procurements do not have to be reserved for small businesses, but the Marine Corps does encourage utilizing small businesses whenever possible. Regardless, purchases shall be rotated among qualified suppliers.
The requirements in , Required Sources of Supplies and Services, apply to micro-purchases (see ).
The only FAR clauses required for micro-purchases, if not using the GCPC, are Central Contractor Registration and those clauses provided under regarding Electronic Funds Transfer; however, use of FAR clauses is not prohibited (see ).

3.4 Quotes in Micro-Purchases

Micro-purchases may be made without competitive quotes. If quotes are obtained, however, oral quotes should be utilized to the maximum extent practical. Quotes may be evaluated for best value, including warranty, maintenance, and performance. Personal preference and brand-name identification shall not limit Vendors.

The Contracting Officer may request a quote from one Vendor and award the procurement once it has been determined that the quoted price is reasonable. Verification of price reasonableness is only required, per (a)(3), if the Contracting Officer suspects or has information to indicate that the price may not be reasonable or if he/she is purchasing a supply or service for which no comparable pricing information is readily available. (See for an explanation of fair and reasonable price determinations.) Whenever possible, micro-purchases should be equitably distributed among qualified suppliers.

3.5 Documentation

Documentation should be kept to a minimum; however, micro-purchase documentation must: explain deviation from a mandatory source, describe unusual situations affecting the purchase, and/or state the Contracting Officer’s rationale for the purchase. An example where documentation would be required might be where competitive quotations were solicited and award was made to other than the low Quoter; in this instance, documentation to support the purchase may be limited to identification of the solicited concerns and an explanation for the award decision. The Simplified Acquisition Documentation Record may be used to document a micro-purchase but is not mandatory for transactions under $3,000. Applicable requisition or award documents should be provided to personnel for receipt, inspection and acceptance, funds obligation, and payment, as needed.

4.0 Acquisition of Commercial Items

The Federal Acquisition Streamlining Act (FASA) resulted in significant changes to Government procurement, including the institution of policy that Government agencies shall buy commercial items that meet agency needs to the maximum extent practicable. Commercial item acquisitions follow the same five phases of the contracting process (Planning, Solicitation, Evaluation, Award, Postaward); the predominant difference is in the format and clauses. Procurements pursuant to Commercial Items allow for a Combined Synopsis/Solicitation whereas procurements pursuant to Test Program for Certain Commercial Items allow for additional streamlined procedures.

4.1 What is a Commercial Item?

states, in part, that a commercial item is:

Any item, other than real property, that is of a type customarily used by the general public or by non-governmental entities for purposes other than governmental purposes, and has been sold, leased, or licensed to the general public; or has been offered for sale, lease, or license to the general public;
Any item that evolved from an item described in paragraph (1) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace, but will be available in the commercial marketplace in time to satisfy the delivery requirements under a Government solicitation;
Any item that would satisfy a criterion expressed in numbers (1) or (2) above, but for (a) modifications of a type customarily available in the commercial marketplace; or (b) minor modifications of a type not customarily available in the commercial marketplace made to meet Federal Government requirements. Minor modifications means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component, or change the purpose of a process.
Any combination of items meeting the requirements of paragraphs (1), (2), (3), or (5) of this definition that are of a type customarily combined and sold in combination to the general public;
Certain installation services, maintenance services, repair services, training services, and other services;
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions;
Any item, combination of items, or service referred to in numbers (1) through (6) above, notwithstanding the fact that the item, combination of items, or service is transferred between or among separate divisions, subsidiaries, or affiliates of a Contractor; or
A nondevelopmental item, if the procuring agency determines the item was developed exclusively at private expense and sold in substantial quantities, on a competitive basis, to multiple State and local governments.

For the complete definition of a commercial item, as well as exceptions to the above-listed criteria, see . A good method of determining whether a Government requirement can be met with a commercial item is for the Contracting Officer to ask: “Is this item or service unique to the Government?” and “Is the item generally available to the public?” If the item in question is indeed publicly available, and the amount of the purchase is $3,000 or more for supplies or $2,500 or more for services, then Contracting Officers are required to follow the procedures for a commercial item purchase. Most of the supplies and services the Government buys using SAP are commercial.

Contracting Officers must evaluate each requirement at or below the Simplified Acquisition Threshold (SAT) to determine if it meets the definition of a commercial supply or service in . Generally, all requirements under SAT can be considered commercial unless market research, buyer’s knowledge, etc., indicates that the item is not commercial. The Contracting Officer should proceed to solicit and award simplified acquisitions using commercial practices. The Contracting Officer should document the contract file with the basis for his/her decision to use the polices and procedures of or for acquisitions of supplies and services. In either case, the solicitation and award should reflect the Contracting Officer’s written determination of commerciality or non-commerciality.

The attached depicts the acquisition procedures for commercial items, from defining the requirement through contract award.

The is provided to assist the Contracting Officer in making a determination of commerciality or non-commerciality in accordance with the definition of commercial items. The Office of the Secretary of Defense Acquisition, Technology, and Logistics (Acquisition Initiatives) has issued a that provides guidance and sound business strategies for acquiring commercial items, as well as numerous references to additional sources of information, training, and tools. Contracting Officers are highly encouraged to consult the handbook when procuring commercial items.

4.2 Procedures and Documentation

Per , Contracting Officers should use the policies for commercial items () in conjunction with the policies and procedures for Solicitation, Evaluation, and Award prescribed in , Simplified Acquisition Procedures; , Sealed Bidding; or , Contracting by Negotiation, as appropriate for the particular acquisition.

Special requirements have been established for commercial item acquisitions in order for Government practices to leverage those practices found in the commercial marketplace. These requirements include:

Market Research: After the requirement has been established, market research should be conducted to determine if the agency’s need can be fulfilled commercially and to determine any unique commercial terms and conditions. Market research also may determine if items are available that can be modified to meet a given requirement or if non-developmental items are available.
Description of Agency Need: The purchase description should contain sufficient detail to allow potential Offerors of commercial items to know which of their products and services may be suitable.
Contract Type: Commercial items can only be acquired with the use of a firm fixed price award.
Solicitation Procedures: Use a Combined Synopsis/Solicitation (pursuant to ) whenever possible. The Combined Synopsis/Solicitation procedure offers several benefits, including authorization of a shorter response time and elimination of the requirement to issue a separate written solicitation.

If, through market research, the Contracting Officer determines that a commercial item is available and can meet the Government’s requirement, the Contracting Officer should take the following steps:
1. Evaluate the requirement for small business and subcontracting possibilities. All requirements between $3,000 and $100,000 are automatically set aside for small business concerns.
2. Document sole source justification, if applicable.
3. Synopsize the requirement on NECO (see ) using either the combined or standard synopsis procedures of .
4. If issuing a written solicitation, use an SF 1449.
5. After evaluation, award on an SF 1449 (recommended) or DD 1155.
Commercial Practices. The terms and conditions delineated in are intended to satisfy the interests of the Government and the Offeror. However, it may be determined through market research that a practice not identified in is customary in the commercial marketplace. The Contracting Officer may tailor to incorporate any such practices into the solicitation/order when determined appropriate and not otherwise precluded by law or executive order.

Commercial Software. Commercial computer software or documentation can generally be acquired under licenses customarily provided to the public as long as the licenses are consistent with Federal law and satisfy the Government’s needs. (See .)

4.3 Commercial Items Exceeding $100K

Test Program for Certain Commercial Items provides special authority to use SAP for the acquisition of commercial items exceeding $100,000 but not exceeding $5.5 million ($11 million in support of a contingency operation or to facilitate the defense against or recovery from nuclear, biological, chemical, or radiological attack), including Options. An award shall never be issued in excess of the Contracting Officer’s specific delegation of contracting authority. As part of a test program that expires 1 January 2010 (IAW Sec. 817 of the FY05 National Defense Authorization Act), Contracting Officers should employ the simplified procedures authorized by this test program to the maximum extent practicable for commercial items.

The purpose of the test program is to vest Contracting Officers with additional procedural discretion and flexibility, so that commercial item acquisitions may be solicited, offered, evaluated, and awarded in a simplified manner that maximizes efficiency and economy and minimizes burden and administrative costs for both the Government and industry. When using SAP to procure commercial items exceeding $100,000, the Contracting Officer must identify in the solicitation that the procedures of will be used.

In accordance with , when acquiring commercial items under , if awarding a task or delivery order contract greater than or equal to $5,500,000 (including all options) to a single source, a Determination and Findings (D&F) may be required. If required, the D&F shall be prepared in accordance with the requirements in .

Contracting Officers shall review each acquisition to determine if it can be set-aside for small business participation considering the recommendations of the cognizant Small Business Specialist. Acquisitions over the SAT shall be set-aside for small business participation when there is a reasonable expectation that offers will be obtained from two responsible sources and the award will be made at a fair and reasonable price. The clause at , Utilization of Small Business Concerns, must be included in the solicitation. Additionally, for all actions that exceed $550,000 for which is required, the Contracting Officer must include , Small Business Subcontracting Plan.

See for more information on small business set-asides.

4.3.1 Procurement Procedures under FAR Subpart 13.5

Describe the requirement in terms of commercial items.

Perform market research to determine if commercial items are available to meet the Government’s requirement.

Evaluate the requirement for small business and subcontracting possibilities.

Issue and document sole source requirements as detailed below.

Synopsize the requirement using the Combined Synopsis/Solicitation.

Issue a written solicitation (if desired) on an SF 1449.

After evaluation, issue a unilateral Purchase Order (PO) on an SF 1449. A bilateral PO may also be awarded.

Establish BPAs, if desired, which allow Contracting Officers to issue calls up to $5 million, or a lessor amount as expressly stated on the Contracting Officer’s Certificate of Appointment, SF1402.

4.3.2 Sole Source Acquisitions under FAR Subpart 13.5

is a test program that gives Contracting Officers procedural discretion and flexibility so that commercial item acquisitions greater than the simplified acquisition threshold (SAT) may be solicited, offered, evaluated, and awarded in a simplified manner that maximizes efficiency and economy and minimizes burden and administrative costs for both the Government and industry. This program authorizes use of simplified acquisition procedures (SAP) for the acquisition of commercial supplies and services in amounts greater than the SAT but not exceeding $5.5 million ($11 million for acquisitions for commercial items to support a contingency operation or facilitate the defense against or recovery from nuclear, biological, chemical, or radiological attack).

Justifications for sole source acquisitions under shall be prepared in accordance with the procedures outlined in .

Sole Source Price Reasonableness Determination. Once the Government has received a proposal for the supply or services from the sole source provider, the Contracting Officer must determine if the price is fair and reasonable. The is provided as a guide illustrating where information can be obtained to support a price reasonableness determination.

4.3.3 Contract File Documentation under FAR Subpart 13.5

Depending on the circumstances surrounding the procurement, including the dollar value, commercial acquisitions pursuant to may require additional reports, reviews, and documentation in addition to those prescribed under for simplified acquisitions. Additional documentation includes, but is not limited to, the following:

(requires Contracting Officer approval/signature).
Documentation of market research.
Commerciality Determination. Per , Contracting Officers must document in writing their determinations that the commercial item definition has been met for all acquisitions using that exceed $1 million. Contract files must be fully and adequately documented to show the market research conducted and the rationale supporting the decision. Particular care must be taken to document determinations involving modifications of a type customarily available in the commercial marketplace, and items only offered for sale, lease, or license to the general public, but not yet actually sold, leased, or licensed. In these situations, the documentation must clearly detail the particulars of the modifications and sales offers. When such items lack sufficient market pricing histories, additional diligence must be given to determinations that prices are fair and reasonable as required by .
Subcontracting Plan negotiated, approved, and incorporated into resultant contract. Required for all actions greater than $550,000 if solicited on an unrestricted basis.
Legal review (e.g., required for all solicitations (and amendments to these solicitations) and awards greater than the SAT as required by (b)(1)). Note that when the Contracting Officer determines that subcontracting possibilities do not exist, he/she must make a written determination, approved at one level above the Contracting Officer, and include this determination in the contract file.
For sole source acquisitions, a justification prepared in accordance with the procedures outlined in .
Evidence that the acquisition was posted on NECO.
For acquisitions pursuant to , a Determination and Findings (D&F) to award a task or delivery order contract equal to or greater than $5,500,000 (including all options) to a single source.
Streamlined Business Clearance Memorandum (BCM). Per , in all acquisitions greater than $100,000, the Contracting Officer is required to complete a BCM. A streamlined BCM template is provided for procurements under . See the and and the for more information.
Documenting the contract file via the BCM to include a brief written description of the procedures used in awarding the contract, including the fact that the test procedures in were used, the number of offers received, and an explanation, tailored to the size and complexity of the basis for the award.
Preparation of Congressional Notification of Contract Awards (required for actions with face value in excess of $5.5 million).
Program Management Reporting System (PMRS) / Federal Procurement Data System – Next Generation (FPDS-NG) Reporting – ensure proper coding of reports to reflect that the award was made pursuant to Test Program for Certain Commercial Items.

5.0 Planning Phase

The role of the Customer is dominant in the planning phase, but the Contracting Officer has ultimate responsibility for successful contract award and administration. A cohesive effort between the Contracting Officer and Customer is essential.

The procurement process starts with the Customer. The Customer identifies the USMC need, develops specific requirements, and provides funding. Once it is determined that acquisitions of supplies or services are not expected to exceed the Simplified Acquisition Threshold (SAT), the Customer and Contracting Officer work together to conduct market research to determine the availability of the supply/service. The Customer documents the requirement and research results in a Purchase Request. This process is detailed below.

5.1 Defining Requirements

The first, and one of the most crucial, steps in the procurement process is defining and describing the requirement. The better a requirement description, the more likely the Government will obtain the desired supply or service at an acceptable price with adequate delivery terms. A good-quality description enables the Contracting Officer to choose the most suitable procurement method.
Requirements should be developed in a manner that promotes competition, allows for use of commercial items, eliminates restrictive features, and includes only what is essential to satisfy the Government’s minimum needs and is authorized by law. As discussed in , the Customer should state requirements for supplies or services in terms of the following:
1. Function to be performed,
2. Performance required, or
3. Essential physical characteristics.
A common way to describe simplified acquisition requirements is through a written document (referred to as a “Purchase Description” in the ). A Requirements Document/Purchase Description should adequately state the Government’s needs. When acquiring supplies, the Contracting Officer should include the following:
1. Common nomenclature (commercial description)
2. Kind of material
3. Electrical data (if applicable)
4. Dimensions, size, capacity
5. Principles of operation
6. Restrictive environmental conditions
7. Intended use
8. Equipment with which the item is to be used
9. End item application
10. Original Equipment Manufacturer (OEM) part number (if applicable)
11. Other pertinent info, as needed
Military/Federal Specifications (MIL/FED)
1. Describing requirements in terms that commercial offerors can recognize and obtaining commercial items is the preferred methodology within the Department of Defense (DoD). MIL/FED Specifications should only be used in cases where it is the only way to describe the requested item. However, if the Customer describes the requirement through use of a MIL/FED Specification, ordering data must be included in each Specification. In addition, when a MIL/FED specification is used, the buyer must verify that the item is not on a Qualified Products List (QPL). If a QPL does apply, award can only be made to a Contractor who is listed on the QPL.
2. For service acquisitions, the Purchase Description should be detailed and specific so as to adequately identify to potential Offerors the requirement, support needed, intended duration of services to be provided, and the Government’s expectations. The Purchase Description for services should include the following:
  1. Performance Work Statement (PWS) that provides required outcomes and quality standards
  2. Place of performance
  3. Period of performance or delivery schedule for supplies
  4. Key experience or skills required of Contractor personnel
3. All service acquisitions shall be performance based unless justified, documented, and approved in accordance with (b). Further discussion on performance based acquisition follows in and .

5.1.1 “Brand Name” and “Brand Name or Equal”

For acquisitions requiring brand name or brand name or equal product(s), refer to the procedures outlined in .

5.1.2 Item Unique Identification (IUID) and Radio Frequency Identification (RFID)

As regulatory requirements for IUID and RFID are the same regardless of acquisition value, the procedures provided under Solicitation Phase, for IUID and for RFID are applicable to simplified acquisitions.

5.2 Market Research

Market research is the continuous process of collecting and analyzing information about marketplace capabilities to satisfy current and future requirements. The process of market research allows the Contracting Officer to determine whether or not the requirement can be fulfilled by a commercial source and often also helps to solidify the requirement early in the acquisition process. Further, market research can assist the Contracting Officer in determining if a requirement should be set-aside for small business concerns or solicited on an unrestricted basis. Commercial item availability allows the Government to leverage streamlined acquisition procedures.

Market research will assist the Contracting Officer in determining appropriate steps in the simplified acquisition process pursuant to or for commercial items or for non-commercial items. After performing market research, the Contracting Officer should document the contract file with all actions taken and the decisions that will result from the research (e.g., determination of commerciality, sole source justification requirement).

The primary purpose of market research is to assist all members of the acquisition team in making better acquisition decisions. The extent of market research will vary depending on such factors as urgency, estimated dollar value, complexity of the requirement, and historical purchases of the item. Although not formally required for acquisitions under the SAT, market research should be conducted by the Contracting Officer to the maximum extent practicable. Market research can provide information on the availability of commercial or non-developmental items in the marketplace, who manufactures or sells the item, and number of sources available. describes the requirements and procedures for conducting market research. For simplified acquisitions, market research can generally be accomplished using information on-hand within the Contracting Office. Available tools for conducting market research include the following:

Copies of previous purchases with the same or similar requirements
Catalogs
Thomas Registry online:
Public phone books
Internet
Trade magazines
Government sources of supply
Federal Logistics Record (FEDLOG)
Central Contractor Registration ()
See for a complete listing of current commercial items available and respective costs.

When conducting market research online, the Contracting Officer must ensure that appropriate safeguarding measures are taken to prevent compromising classified or proprietary information.

In addition to using readily available methods for conducting market research, Contracting Officers may also maintain a source list of possible Vendors identifying the status of each source in the following categories:

Small Business
Small Disadvantaged Business
Women-Owned Small Business
HUBZone Small Business
Service-Disabled Veteran-Owned Small Business (SDVOSB)
Veteran-Owned Small Business

The status information may be used as the basis to ensure that small business concerns are provided opportunities to respond to solicitations issued using SAP. New sources disclosed by Customers, the cognizant Small Business Specialist, responses to solicitations, etc., should be reviewed and added to the source list. In addition, the has a website to assist Contracting Officers locate potential sources.

5.2.1 Central Contractor Registration (CCR)

An alternative to maintaining a source list is using the Central Contractor Registration () website to obtain Vendor information. The CCR website is the primary Vendor database for the Federal Government. CCR collects, validates, stores, and disseminates data in support of agency acquisition missions. prescribes policies and procedures for requiring Contractor registration in the DoD CCR database to comply with the Debt Collection Improvement Act of 1996 and increase visibility of Vendor sources for specific supplies and services in their geographical locations.

Unless an exception exists, prospective prime Vendors must be registered in CCR prior to being awarded a contract, basic agreement, Basic Ordering Agreement (BOA), or Blanket Purchase Agreement (BPA) (see ). The Contracting Officer must use CCR to verify that the prospective Contractor is registered in the CCR database.

Vendors are required to complete a one-time registration to provide basic information relevant to procurement and financial transactions. Vendors must update or renew their registration at least once per year to maintain an active status.

CCR validates the Vendor information and electronically shares the secure and encrypted data with Federal agencies’ finance offices to facilitate paperless payments through electronic funds transfer (EFT). Additionally, CCR shares data with Federal Government procurement and electronic business systems.

This policy applies to all types of awards except the following:

Purchases using the GCPC as both the purchasing and payment mechanism.
Awards to foreign vendors for work performed outside the United States, if it is impractical to obtain CCR registration.
Classified contracts or purchases, when registration in the CCR database, or use of CCR data, could compromise the safeguarding of classified information or national security.
Contracts awarded by deployed Contracting Officers in the course of military operations, including, but not limited to, contingency operations as defined in 10 U.S.C. 101(a)(13) or contracts awarded by Contracting Officers in the conduct of emergency operations such as responses to natural disasters or national or civil emergencies.
Purchases to support unusual or compelling needs of the type described in . Use of this exception does not relieve the Contracting Officer from ensuring that the Contractor is registered in CCR prior to the time of payment by DFAS.
Micro-purchases that do not use the electronic funds transfer (EFT) method for payment and are not required to be reported (see ).

Contract Provisions/Clauses. Except as noted above, use the clause found at , Required Central Contractor Registration, in solicitations and resulting contracts/BPAs/BOAs.

5.2.2 Environmental Screening / EPA Designated Products

It is the Government’s policy to procure environmentally friendly supplies. One way this is accomplished is through utilization of the Environmental Protection Agency’s () List of Designated Products. An EPA-designated product is a product:

That is or can be made with recovered material;
That is listed by EPA in a procurement guideline (40 CFR Part 247); and
For which EPA has provided purchasing recommendations in a related Recovered Materials Advisory Notice (RMAN).

As part of its continuing program to promote the use of recovered materials, the EPA has issued "Comprehensive Guidelines for Procurement of Products Containing Recovered Materials" (CPG) to designate recycled-content products in various product categories. The CPG implements Section 6002 of the Resource Conservation and Recovery Act (RCRA) requiring the EPA to designate products that are or can be produced with recovered materials and to recommend practices for the procurement of designated products by procuring agencies. Once the EPA designates a product, RCRA requires any Federal agency procuring that product to purchase it with the highest percentage of recovered materials practicable.

When purchasing supplies that contain recovered material or services that could include supplies that contain recovered material, the Contracting Officer should access the list of designated products, which also provides recommended sources of supply.

If the Contracting Officer determines that an acquisition of EPA-designated products is not practical, he/she should place a written justification in the contract file. If the agency has designated an Environmental Executive, the Contracting Officer shall give a copy of the written justification to that official. The Contracting Officer must base the justification on the inability to acquire the product:

Competitively within a reasonable period of time;
At reasonable prices; or
To reasonable performance standards in the Specifications, provided a written determination by technical or requirements personnel of the performance standard’s reasonableness is included with the justification. The technical and requirements personnel must base their determination on National Institute of Standards and Technology guidelines, if available.

For further guidance, see , , or .

5.3 Acquisition Plan

Acquisition planning ensures that the Government’s needs are met in the most effective, economical, and timely manner. Written Acquisition Plans (APs) are required for high dollar value acquisitions, as detailed in . A procurement that does not meet the DFARS AP threshold still requires acquisition planning to identify and detail a procurement strategy.

Although an AP is not generally required for orders below the SAT, it is recommended that the Contracting Officer utilize a Plan of Action and Milestones (POA&M) for complex or high dollar value SAP requirements (see MCFCS ). The POA&M may be used to inform the Customer of the key procurement milestones (e.g., synopsis and technical review) and projected timeframe for award. For AP requirements for acquisitions exceeding the SAT, refer to .

5.4 Funding of Requirements

Funding. Each Purchase Request must contain adequate funding to support the proposed requirement. An approved line of accounting including appropriation data and an estimated dollar amount from the Customer will usually provide this. This requirement is necessary unless the Purchase Request is backed by a document providing bulk funds (in cases where the Requiring Activity provides the Purchase Officer with a block grant of money to issue a series of orders). The estimated cost shown on the Purchase Request is the amount that has been committed by the Requiring Activity for the purchase of requested supplies or services. Responsibility for controlling the obligations of funds is vested exclusively in the allotment holder or designated representative. Consequently, NAVCOMPT Form 2276 contains a certification by the approving signature block stating, “I certify that the funds cited are properly chargeable for the items requested.” Thus, for any other Purchase Request from signer/approver of the document, the certification is also made even though it may not be preprinted on the Purchase Request form itself.

Regardless, the Contracting Officer is still responsible for ensuring that all requirements of law, executive order, regulations and all other applicable procedures have been met as required by .

Purchase Requests Containing Restrictions as to Availability of Cited Funds. If the Purchase Request contains a cut-off date for obligation of cited funds, every effort should be made to schedule procurement actions to meet the established deadline. Meeting the deadline does not relieve the Contracting Officer from compliance with established procurement policies including adequate competition and fair and reasonable pricing. Any known or anticipated delay that may prevent the obligation of funds by the deadline date must be reported to the Requiring Activity in a timely manner. If the proposed purchase price exceeds the monetary ceiling established on the Purchase Request, the Contracting Officer cannot issue a contract award until additional funding is provided. The following methods are approved for providing additional funding:

An increase may be requested and authorized by message when time does not permit the use of an amendment to the Purchase Request. When NAVCOMPT Form 2276 is used, an increase is processed via an amended NAVCOMPT Form 2276.
Authorization may be obtained by telephone, fax, or email but must be documented and confirmed in writing.
Customer activities that place a high volume of purchase actions with their respective Purchase Officers may establish written agreements to permit Contracting Officers to exceed the amount committed on an individual Purchase Request within specific limits.

Appropriations. Proper use of appropriations is imperative. Contracting Officers must ensure that the specified appropriation/funds in the Purchase Request is appropriate for the supplies/services required. provides a table that summarizes the most common defense appropriations along with obligation periods and examples of use. Further guidance on avoiding misappropriation can be found in the .

Antideficiency Act. The Antideficiency Act prohibits obligation or expenditure of Government funds in excess of amounts appropriated by Congress or in excess of amounts permitted by regulations; forbids the obligation of any funds in advance of the official appropriation of funds; and requires the head of each Government agency to establish an administrative control system for the purposes of keeping obligations within the amount of apportionment and enabling the agency to detect and report violations of the act.

Budgeting. The Customer is responsible for proper budgeting, which is an important precursor to not violating the Antideficiency Act. The Contracting Officer has ultimate responsibility for ensuring the appropriate funding is available for obligation at contract award.

A simple can prove to be a useful tool for the Contracting Officer to track funding after contract award and throughout the life of the contract/orders, whether firm fixed, cost plus award fee, or cost plus fixed fee.

5.5 Methods of Procurement

Several simplified acquisition methods for purchase and payment may be utilized to satisfy procurement requirements. Based on market research and dollar threshold, Contracting Officers (in consultation with the Customer) should determine the method most suitable, efficient, and economical for individual procurements. Customers and Contracting Officers may wish to meet to determine the methods that best fit the circumstances of long-term and short-term requirements. The following methods are available for contract award, orders against existing contracts, or payment:

GCPC
Purchase Orders
Unpriced Purchase Orders (UPOs)
Blanket Purchase Agreement (BPA) and BPA Calls
Indefinite Delivery Contracts (IDCs) and Delivery/Task Orders
Delivery/Task Orders under Multiple Award Contracts (MACs)
Standard Form 44 (SF 44)
Imprest Funds

Regardless of the method chosen, electronic commerce should be used whenever practicable and cost-effective. Additionally, the Contracting Officer should strive to accomplish the following:

Promote competition.
Establish deadlines for responses to solicitations (i.e., quotes from Vendors).
Consider all offers received within the established timeline for submission.
Use innovative practices.

5.6 Small Business Considerations

Each acquisition of supplies or services that has an anticipated dollar value exceeding $3,000 (micro-purchase threshold) but not exceeding $100,000 ($250,000 for contingency operations) is reserved exclusively for small business concerns and should be set aside per . The Contracting Officer may also set-aside acquisitions for Historically Underutilized Business Zone (HUBZone) Small Business Concerns (see ) or SDVOSB concerns (see ) for an acquisition of supplies or services that has an anticipated dollar value exceeding $3,000 but not exceeding $100,000.

and dictate that the Government shall “provide maximum practicable opportunities in its acquisitions [to small businesses],” including the opportunity to participate as Prime Contractors and Subcontractors. The Contracting Officer is not required to set aside acquisitions for small business concerns if he/she determines there is not a reasonable expectation of obtaining offers from two or more responsible small business concerns that are competitive in terms of market prices, quality, and delivery. As appropriate, the Contracting Officer should combine the policies and procedures for acquiring commercial supplies and services into the process for contracting with small businesses. Purchases from required sources of supply under are exempt from small business set-aside requirements.

The Navy Small Business Program provides training, advice, guidance, and innovative strategies to acquisition teams seeking maximum opportunities for small businesses at the earliest stage of acquisition planning in the capacity of both prime and subcontractors. For more information, including a link to the Secretary of the Navy Small Business Strategic Plan and descriptions of each of the Navy’s eleven Major Contraction Commands (including HQMC), visit the .

5.6.1 Small Business Documentation for Actions At or Below the SAT

For acquisitions using SAP, the following order of small business considerations as outlined in the is required:

Award under the SBA 8(a) Business Development Program
Very Small Business (VSB) Set-Aside (as defined in and described in )
Total Small Business Set-Aside

As required by , when an acquisition using SAP is to be awarded to a contractor whose small business status does not meet one of the above listed small business considerations or if no small business responses were received and the acquisition will be recompeted as unrestricted, the Contracting Officer shall document the contract file as follows:

For acquisitions not exceeding $10,000, complete the NAVSUPINST 4200.85D Form.
For acquisitions greater than $10,000, complete the as outlined in .

In an effort to preclude unnecessary re-solicitation of any requirement, the Contracting Officer should conduct thorough market research prior to releasing the solicitation. The outcome of the market research will provide the information necessary for the Contracting Officer to determine whether a requirement can be set aside for small business or if it should be solicited on an unrestricted basis.

The above required documentation is be prepared for acquisitions processed inside the United States, its territories and possessions, Puerto Rico, the Trust Territory of the Pacific Islands, and the District of Columbia.

Socioeconomic programs do not apply overseas. A non U.S.-based Contracting Officer may contract with local businesses without the FAR restrictions for small business concerns.

5.6.2 Small Business Size Standards

To be eligible for small business set-asides, a firm must be small, as defined by size standards that are set by the SBA, as well as meet the definition of “small business concern” in . The Small Business Act states that a small business concern is "one that is independently owned and operated and which is not dominant in its field of operation." The SBA establishes size standards on an industry-by-industry basis (see ). SBA’s table of size standards numerically defines the size of each for-profit industry and is matched to North American Industry Classification System (NAICS) codes. A size standard is almost always stated either as the number of employees or average annual receipts of a business concern, unless otherwise noted in the .

In addition to establishing eligibility for SBA programs, the SBA size standards must be used by all Federal agencies for Government contracts that are identified as a small business.

SBA Size Recertification

To ensure that small business size status is accurately represented and reported over the life of long-term Federal contracts, effective 30 June 2007, small business size status is no longer automatically retained from the time of initial offer. This SBA size recertification rule (Federal Register Nov 15 2006) will be applicable to solicitations as well as to all current and future long-term contracts.
Recertification must occur prior to the following events:

Option exercise
Merger or acquisition
End of the first five years of a contract

Government-Wide Acquisition Contracts (GWACs), General Services Administration (GSA) Multiple Award Schedule (MAS) contracts, and multi-agency contracts (MACs) are not exempted from this rule.
See the for more information.

5.6.3 Determining NAICS Codes

Until October 1, 2000, small business standards were classified by a four-digit code called a Standard Industrial Classification (SIC) Code. NAICS codes have since replaced SIC codes. On the , the Contracting Officer can search on NAICS codes. For size standard purposes, procurements are classified in the industry whose definition best describes the principal nature of the product or services being acquired. The Contracting Officer ultimately determines the NAICS code.

Upon approval, the NAICS Code and size standard listed in the should be included in the NECO synopsis. The solicitation must include the provision at , Small Business Program Representations, required for inclusion in all solicitations exceeding the micro-purchase threshold when the contract will be performed in the U.S. or its outlying areas.

5.6.4 Applying the Small Business Size Standard in a Procurement

Per , small business size standards are applied by:

Classifying the product or service being acquired in the industry whose definition, as found in the NAICS (), best describes the product,
Identifying the size standard that SBA has established for that industry, and
Specifying the size standard in the solicitation so that Offerors can correctly identify themselves as small or large.

Further guidance on small business set-asides during the solicitation phase of the contracting process is included in .

5.6.5 Nonmanufacturer Rule and Waivers

Per the SBA, a nonmanufacturer concern is one that supplies a product under a Federal Government contract that it did not manufacture. To qualify for Federal Government contracting, a nonmanufacturer must have 500 or fewer employees, be primarily in the wholesale or retail trade, and supply the product of a U.S. small manufacturer, if the contract is set aside for a small business. This requirement is called the “Nonmanufacturer Rule.” dictates that a Contractor under a small business set-aside or 8(a) contract shall be a small business under the applicable size standard and shall provide either its own product or that of another domestic small business manufacturing or processing concern under the Nonmanufacturer Rule.

The Nonmanufacturer Rule is detailed in paragraph (b) of 13 CFR §121.406.

Waivers for Nonmanufacturers. SBA has waived the requirement for small businesses to furnish supplies manufactured by small businesses for simplified acquisitions not exceeding $25,000. Therefore, a small business may provide a quote on the product of any domestic manufacturer (regardless of size), as long as the procurement is less than $25,000. For acquisitions above $25,000, the small business Vendor must provide a quote on products manufactured by a small business. SBA may waive the requirement for a Vendor to furnish supplies manufactured by a small business if there are no small business manufacturers or producers in the Federal market.

The SBA Associate Administrator for Government Contracting has the authority to make decisions on waivers of the Nonmanufacturer Rule in the following cases:

After reviewing a determination by a Contracting Officer that no small business manufacturer or processor can reasonably be expected to offer a product meeting the Specifications (including period of performance) required of an Offeror or by the solicitation; or
For a product or class of products after determining that no small business is available to participate in the Federal procurement market.

The two types of waivers of the Nonmanufacturer Rule are regularly referred to as “individual waivers” or “solicitation-specific” and “class waivers.” More information on each type and a sample format for waiver requests can be found at the .
Contracting Officers may request that the SBA waive the Nonmanufacturer Rule for a particular class of products. When procuring an item on the SBA waiver list, the Contracting Officer may proceed with the set-aside by incorporating , Alternate I, which allows the small business Contractor to provide the product of any domestic manufacturer. For items that are not on the SBA list of classes for which a waiver has been granted, the Contracting Officer may document the file and solicit on an unrestricted basis or may request an individual waiver from SBA to proceed with the set-aside. Once the waiver is received, the Contracting Officer may proceed with the small business set-aside. The contract shall include , Alternate I; however, the acquisition remains under the total small business set-aside.

5.6.6 Small Business Administration (SBA) 8(a) Business Development Program

The SBA 8(a) Business Development Program was created to help small disadvantaged businesses compete in the Federal procurement market. To be considered for the program, a business must apply via the local SBA district office. Once certified by the SBA, program participants enter a developmental stage for four years and then a transitional stage for five years. The SBA reviews 8(a) firms annually for compliance with eligibility requirements.

Procedures Less than or Equal to the SAT

After an 8(a) Contractor has been identified, the Contracting Officer shall establish the prices, terms, and conditions with the 8(a) Contractor and shall prepare a purchase order consistent with the procedures in and , including the applicable clauses. No later than the day that the purchase order is provided to the 8(a) Contractor, the Contracting Officer shall provide it to the cognizant SBA Business Opportunity Specialist, using facsimile, electronic mail, or any other means acceptable to the SBA district office.
The following requirements are all eliminated under 8(a) contracting: an agency offering or SBA acceptance letter, competition, and synopsis. Solicitations may be issued on a sole-source basis without the requirement for a justification for other than full and open competition to support the action; POs may be issued unilaterally. After awarding to an 8(a) business concern, the Contracting Officer should forward a copy of the order or contract to the local SBA office to verify the Contractor’s eligibility. Two days after SBA’s receipt of the order, performance may commence.

Procedures Greater than the SAT

For requirements greater than the SAT, the written notification to the SBA shall clearly indicate that the requirement is being processed under the SBA-DoD Partnership Agreement (PA). In addition to the notification requirements at , the notice shall also specify the following (as outlined in ):

Under the PA, an SBA acceptance or rejection of the offering is required within 5 working days of receipt of the offering; and
For sole source requirements, an SBA acceptance shall include a size verification and a determination of the 8(a) firm’s program eligibility, and, upon acceptance, the Contracting Officer will solicit a proposal, conduct negotiations, and make award directly to the 8(a) firm; or
For competitive requirements, upon acceptance, the Contracting Officer will solicit offers, conduct source selection, and, upon receipt of an eligibility verification, award a contract directly to the selected 8(a) firm.

When soliciting 8(a) concerns, the Contracting Officer should utilize the procedures outlined in , which provide increased flexibility for Contracting Officers using SAP. He/she should search the website to find local businesses falling under the SBA 8(a) Business Development Program and make an award to the responsive and responsible Contractor that is determined to provide best value to the Government at a price that is determined to be fair and reasonable.

5.6.7 Very Small Business (VSB) Set-Aside and Total Small Business Set-Aside

In instances where the Contracting Officer cannot award under the SBA 8(a) Business Development Program, he/she should next attempt to award using the Very Small Business (VSB) Set-Aside or Total Small Business Set-Aside.

VSBs are those small business concerns that, together with its affiliates, has no more than 15 employees. Additionally, average annual receipts may not exceed $1 million. Headquarters located in each geographic area served by SBA district offices are listed in . The Contracting Officer should set aside requirements for very small businesses when requirements exceed the micro-purchase threshold but are not greater than $50,000. Supplies and/or service should be ordered through a very small business concern if:

A firm in the 8(a) Business Development Program cannot be used,
The contracting office is located within the geographical area served by a designated SBA district or the contract will be performed within the area, and
The Contracting Officer expects that offers will be obtained from two or more responsible very small businesses within the designated SBA district.

The form is available in .
If the Contracting Officer does not consider it likely that two VSB or Total Small Business sources will respond to a solicitation, he/she should dissolve the set-aside and re-submit the solicitation on an unrestricted basis. Even when a requirement is solicited on an unrestricted basis, small business concerns may continue to compete for the award.

When an adequate number of small business concerns are solicited and one or more acceptable quotations are received, the Contracting Officer may award the requirement (via SF 1449 or DD 1155) to the responsible VSB or small business who offers the lowest price/best value to the Government, based on the source selection criteria established in the solicitation.

5.6.8 HUBZone

The Historically Underutilized Business Zone (HUBZone) Program was created to provide Federal contracting assistance for qualified small business concerns located in historically underutilized business zones, in an effort to increase employment opportunities, investment, and economic development in those areas. HUBZones are historically located within one or more qualified census tracts, qualified non-metropolitan counties, or lands within the external boundaries of an Indian reservation (see ).

Eligible businesses appear on the list of qualified HUBZone Small Business Concerns maintained on the website. Per , in all acquisitions exceeding the SAT, HUBZone Small Business set-asides take priority over set-asides for small business concerns.

At their sole discretion, the Contracting Officer may set-aside acquisitions that exceed the micro-purchase threshold for competition restricted to HUBZone Small Business Concerns, provided the following criteria are satisfied:

Offers will be received from two or more HUBZone Small Business Concerns.
Award will be made at a fair market price.

5.6.9 Service Disabled Veteran-Owned Small Business (SDVOSB) Concerns

A Service-Disabled Veteran-Owned Small Business (SDVOSB) Concern is a small business concern that is not less than 51-percent owned by one or more service-disabled veterans, or in the case of any publicly owned business, not less than 51-percent stock owned by one or more service-disabled veterans. Further, the management and daily operations of an SDVOSB must be controlled by one or more service-disabled veterans, or, in the case of a veteran with permanent and severe disability, the spouse or permanent caregiver of such veteran.

provides that Contracting Officers may set requirements aside for SDVOSB Concerns over the micro-purchase threshold if:

There is reasonable expectation that offers will be received from two or more SDVOSB Concerns. If the Contracting Officer receives only one acceptable offer from an SDVOSB Concern in response to a set-aside, the Contracting Officer should make an award to that Offeror, given that #2 below is determined.
Award will be made at a fair market price.

In FY06, $1.5 billion was awarded to SDVOSB concerns – significantly short of the $9B goal for SDVOSB prime contract awards. discusses tools available to make meeting the DoD’s current objective to create opportunities for service disabled veterans possible, including use of the (VETS) small business set-aside GWAC.

The Contracting Officer is encouraged to conduct market research in order to locate SDVOSB Concerns in order to conduct set-asides. Vendor information is available at the .

If an acceptable offer is received from an SDVOSB in response to a set-aside, the Contracting Officer should award to that Concern, either on a DD 1155 or SF 1449. If no acceptable offers are received, the Contracting Officer should withdraw the set-aside. The requirement should then be set aside for other small business concerns.

The Contracting Officer may award contracts to SDVOSB Concerns on a sole-source basis when only one SDVOSB can satisfy the requirement; the award price, including Options, will not exceed $5.5 million for a requirement within the NAICS codes for manufacturing ($3.5 million for a requirement within any other NAICS code); the SDVOSB Concern has been determined responsible with respect to performance; and award can be made at a fair and reasonable price. See and for more information on Contractor responsibility and fair and reasonable price determination.

5.7 EIT Certification / Section 508 Compliance

The Rehabilitation Act requires that when Federal departments or agencies develop, procure, maintain, or use Electronic and Information Technology (EIT), they must ensure that the EIT allows Federal employees with disabilities to have access to, and use of, information and data in the same manner as Federal employees without disabilities.

requires that members of the public with disabilities seeking information or services from a Federal department or agency have comparable access to and use of information and data as members of the public without disabilities.

Exceptions exist to providing comparable access, including EIT acquisitions that meet the following:

Are purchased pursuant to (micro-purchases) prior to April 1, 2005.
Are for a national security system.
Are acquired by a Contractor incidental to a contract.
Are located in spaces frequented only by service personnel.
Would impose an undue burden (significant difficulty or expense).

The has many helpful links, including the online training modules for buying accessible EIT. Additional training information may be accessed at .

5.8 Contracting for Services

A service contract is one that calls for a Contractor's time and effort performing services rather than providing an end item of supply. In general, service employees include guards, watchmen, and persons engaged in skilled mechanical crafts or manual labor occupations. (For more examples of service contracts, see ). The law originally covered blue-collar workers, but its provisions were amended to extend coverage to white-collar workers while exempting those employed in a bona fide executive, administrative, or professional capacity.

Contracting Officers must ensure that a requirement is, indeed, a service as defined by for Service Contracting – that is, “a contract that directly engages the time and effort of a contractor whose primary purpose is to perform an identifiable task rather than to furnish an end item of supply.” Postaward reviews, such as Procurement Performance Management Assessment Program (PPMAP) reviews, of service contracts in support of the DoD have exposed numerous instances in which contracts for services were being used to obtain products, supplies, and facilities not required for, or incidental to, the performance of those service contracts. See to learn about PPMAP reviews. For more information on contracts for services, see the .

5.8.1 Service Contract Act (SCA)

For all employees engaged in the performance of service contracts exceeding $2,500, the Service Contract Act (SCA) establishes standards for minimum wages and fringe benefits, safe and sanitary working conditions, notification to employees of minimum allowable compensation, and equivalent Federal employee classifications and wage rates. Contracting Officers must incorporate the appropriate SCA clause or variation as well as the appropriate Wage Determination (WD), into their service contracts.

The Contracting Officer is required to submit Standard Forms 98 and 98a “Notice of Intention to Make a Service Contract and Response to Notice” and “Attachment A” electronically. provides Contracting Officers a one-stop shop for obtaining appropriate SCA WDs for official contract actions. Guidance in selecting WDs is provided in the WDOL.gov User’s Guide available on the website. In some instances, the website will not contain the appropriate SCA WD, and alternatively the Contracting Officer may obtain direct access to the Department of Labor’s (DOL’s) electronic “” website to submit a request for SCA WDs. DOL will provide the Contracting Officer with an SCA WD through the e98 system.

At the time of award, the DOL Publication WH-1313 entitled "Notice to Employees Working on Government Contracts" must be furnished to the Vendor (see ). The publication explains to the Vendor that the poster be displayed at the worksite for employees to know what types of wages and compensation they are entitled to by Federal law. The publication should be furnished to the Vendor under the following criteria:

Possible services that fall under the SCA (when exceeding $2,500): custodial, janitorial, food services, laundry, trash removal, grounds maintenance, engineering or logistic support services.
Repairs that fall under Walsh Healey Public Contract Act (when exceeding $10,000): work related by manufacturer of materials, supplies, articles, or equipment.

There are situations in which the SCA does not apply. For statutory exemptions, see . For all of the regulatory details of the SCA, see . See the for further information on contract labor standards and contractor labor management relations.

5.8.2 Performance-Based Acquisition (PBA) of Services

Current DoD policy identifies Performance-Based Acquisition (PBA) as the preferred approach to obtaining services. PBA procurements consist of a Performance Work Statement (PWS), Measurable Performance Standards, Remedies and/or Incentives, and a Performance Assessment Plan or Quality Assurance Surveillance Plan (QASP). (All service contracts, whether performance-based or not, require the use of a QASP in accordance with (a) to measure performance. See for requirements for acquisitions at or below the SAT.) For more detail on service requirements, see and .

PBA is contracting for results, not just best efforts – structuring all aspects of an acquisition around the purpose of the work to be performed and what needs to be accomplished rather than how to accomplish it. PBA techniques include using objective, measurable performance requirements and quality standards in developing Statements of Work; selecting Contractors using performance as a consideration; determining contract type and incentives in accordance with a fair assessment and assignment of performance risk; and performing contract surveillance and administration for insight only into essential areas of Contractor performance, being mindful of the need for conservation of Government resources. Samples and tools for PBA may be found at .

5.8.3 MOPAS 2

Per (f), agencies shall establish effective management practices in accordance with Office of Federal Procurement Policy (OFPP) Policy Letter 93-1, Management Oversight of Service Contracting, to prevent fraud, waste, and abuse in service contracting.

DON MOPAS 2 supersedes the DON MOPAS Memo of 10 March 2003 and is applicable to all activities and organizations within the DON. Its purpose is to ensure service acquisitions:

Support DON objectives.
Utilize performance-based methods to the maximum extent practicable.
Contain clear requirements.
Identify measurable outcomes.
Are properly planned and administered.
Achieve the intended results.

mandates that all service acquisitions exceeding the Simplified Acquisition Threshold (SAT) comply with DON MOPAS 2. This includes the acquisition of services through the use of a contract or task order issued by a non-DoD agency, otherwise referred to as “Assisted Acquisitions.” For Assisted Acquisitions, the Determination and Findings (D&F) template provided in shall be used in lieu of the DON MOPAS 2 AS Content Requirements document identified below.

MOPAS 2 does not apply to research and development or construction acquisitions (however, it does apply to advisory/assistance services to support those activities). Also, MOPAS 2 does not apply to services that are part of Weapon System Acquisition Programs, Automated Information Systems, or services managed by the Series.

MOPAS 2 Acquisition Strategy. Using the guidance provided in the DON (ACQ) MOPAS 2 Memo, the Project Office and Contracting Officer should work jointly to develop the AS:

Tailor the AS to be consistent with the size and complexity of the requirement.
Include cost, schedule, and performance metrics that measure service acquisition outcomes against requirements. Appropriate outcomes and corresponding measures should be addressed and validated during market research. Decision authorities will approve metrics for service acquisitions as part of their review and approval of the AS.
As required by (a), the MCFCS shall use the when drafting any AS for services.
The AS shall be reviewed and approved in accordance with (b).

5.9 Information Technology Acquisition Waivers

Information Technology (IT) Acquisition Waivers

The MCFCS is not authorized to procure IT equipment or to permit their Contractors to obtain IT–related items. The MCFCS should forward all IT requirements to MCSC for acquisition. All computer hardware and operating system software within the USMC must be purchased by MCSC from one of the (MCHS) contract vehicles. Waivers to this process may be sought. For detailed instructions and to apply for an IT waiver, visit the .
All waiver requests must be submitted through HQMC C4I for review. For MCSC programs, once the waiver request is approved by HQMC, additional procedures must be followed to receive final approval from C4I-IT. Upon approval, all server, desktop, and laptop orders must be submitted to MSCS PM-IT office for procurement. For more information see the . See also the , for a comprehensive listing of IT policy/approval/waiver requirements.
In the event a waiver is approved, all Contracting Officers shall comply with the requirements outlined in , which requires review of all prospective IT procurements in excess of $25,000.

5.10 Use of Non-DoD Contracts – Interagency Acquisitions Under the Economy Act

In developing an Acquisition Strategy, Project and Contracting Officers must determine the appropriate means to fulfill the requirement. The MCFCS mission is to negotiate contracts tailored to meet the Customer’s needs. Occasionally other contracts may provide a more efficient and cost effective means of fulfilling the requirement. Non-Marine Corps/Non-DoD contracts can be an effective means of supporting the USMC mission. This determination can be made by considering a variety of important factors:

Does use of this contract satisfy customer requirements, meet program schedule, prove cost effective, and consider contract administration?
Are the tasks to be accomplished or supplies to be procured within the scope of the Non-Marine Corps/Non-DoD contract?
Will the funding be used in accordance with appropriation limitations in terms of purpose, time and amount?
Will unique terms, conditions, and requirements be provided to the assisting agencies for incorporation into the contract to comply with all applicable DoD-unique statutes, regulations, directives and other requirements?

Non–Marine Corps contracts may not be used to avoid funding limitations or as a band-aid for poor acquisition planning. The transfer of funds should not be the default position of the Marine Corps. Project Officers should make every effort to satisfy the requirement using Marine Corps resources and, in the process, avoid payment of unnecessary fees. This objective can only be achieved if requirements generators identify their needs and initiate the acquisition and coordination well in advance with the Comptroller, Contracting Officer and Legal Counsel. MCFCS Contracting Officers should negotiate all fees requested by the Assisting Agency to ensure reasonableness.

Definitions. The Contracting Officer shall use the definitions in to understand and follow Direct and Assisted Acquisition procedures.

Determinations and Findings (D&F). For Assisted Acquisitions, MCFCS Contracting Officers in concert with the cognizant Comptroller must ensure the appropriate D&F is completed. MCFCS Contracting Officers shall prepare the D&F using the format outlined in the . For Direct Acquisitions over the simplified acquisition threshold (SAT), the rationale shall be included in the Business Clearance Memorandum (BCM). For instructions on documenting the rationale in the BCM, see the .

Approvals. Thresholds and approval authorities for Economy Act and Non-Economy Act Orders and for Direct Acquisitions for the MCFCS shall be in accordance with (a) and (b). For convenience, the MAPS approval thresholds and authorities are outlined in the below matrices:

APPROVAL MATRICES FOR
ECONOMY ACT AND NON-ECONOMY ACT ASSISTED ACQUISITIONS

Economy Act Orders
Format Required

$ Amount	Assisting Agency	Approval Authority	Reference
> Micro-purchase threshold - $5M	DoD Agency	Contracting Officer	; (b); (c)(i)(A) & (B)
> $5M	DoD Agency	ADC, I&L(Contracts) SES	(c)(i)(A) & (B)
> Micro-purchase threshold - $50M	Non-DoD Agency	ADC, I&L(Contracts) SES	(c)(i)(B) &
> $50M - $500M	Non-DoD Agency	DASN(A&LM)
> $500M	Non-DoD Agency	ASN(RDA)

Non-Economy Act Orders
Format Required

$ Amount	Assisting Agency	Approval Authority	Reference
Up to and including the SAT	Non-DoD Agency	Comptroller Approval on MIPR or NAVCOMP Form (No formal D&F required)	ASN(FM&C) memo of 31 Jan 07
> SAT - $5M	Non-DoD Agency	Contracting Officer
> $5M - $50M	Non-DoD Agency	ADC, I&L(Contracts) SES
> $50M - $500M	Non-DoD Agency	DASN(A&LM)
> $500M	Non-DoD Agency	ASN(RDA)

APPROVAL MATRIX FOR DIRECT ACQUISITIONS
Content Required

$ Amount	Assisting Agency	Approval Authority	Reference
SAT	Use of any non-DoD contract vehicle by a Marine Corps Contracting Officer	BCM approval official	DON Guidelines for Proper Use of Non-DoD Contracts of 14 Dec 04

Reporting. As required by (f), CCOs shall report all Assisted Economy Act Orders and Non-Economy Act Orders that they or Contracting Officers under their supervision have approved during the previous fiscal year. Reports shall be provided in the format outlined in the .

Interagency Acquisition and Direct Acquisition Resources. For more information, policy, and guidance pertaining to the proper use of Interagency Acquisitions Under the Economy Act and Non-Economy Act, as well as Direct Acquisitions, see the following:

The document, which provides a short list of examples of “other specific authority.”
.
, which contains the OASN(FM&C) Memo, Advance Payments and Non-Economy Act Financial Management Guidance. Note: Enclosure 3 in this letter is identified as MAPS Subpart 17.5 and MAPS Appendices L and M. MAPS 17.5 has been revised; refer to the MAPS for the most current version of Subpart 17.5. MAPS Change 4 deleted Appendices L and M; however, these appendices have been renamed and are now hyperlinked in CMPG 1.5.1 above. Appendix L has be renamed as the and Appendix M has been renamed as .
The , which discusses “widely misunderstood” guidance on funding acquisitions made through non-DoD agencies and DoD FMR requirements for reviewing and investigating potential Antideficiency Act violations.

5.11 Purchase Request

After conducting market research and defining the requirement, this information is compiled into a Purchase Request (referred to by some as the “Procurement Request” or “PR”), which the Contracting Officer uses to begin the acquisition process. The Customer is responsible for preparing the Purchase Request and including information needed by the Contracting Officer to prepare a solicitation, evaluate offers, and award a contract action. The Purchase Request package may be for new work, modification to an existing contract (administrative purposes or to add new work), or for a funding action (funded order against an existing contract).

The Contracting Officer must review, or screen, the Purchase Request for accuracy before proceeding with the buy. Purchase Requests must contain adequate funding to support the requirement, be documented with evidence that the requirement was screened for mandatory Government sources of supply, and include certain items. At a minimum, the Purchase Request must provide the following data, to ensure that sufficient information is relayed to potential Offerors regarding the purchase (detailed description of each follows after the list):

Document number
Adequate purchase description
Quantity and unit of issue
Delivery information
Unique requirements
Price estimate
Funding
Inspection and Acceptance
Point of Contact
Approvals/Signatures

The Customer must determine what additional items, if any, to include in each Purchase Request package.

Document Number. A document number is required to adequately track requirements through the financial and acquisition process. The make-up of document numbers may vary depending upon the activity and accounting requirements. A document number is often comprised of the Requiring Activity Unit Identification Code (UIC), Julian date of the requisition, and serial number. For requests for Contractual Procurement (NAVCOMPT Form 2276), the standard document number prescribed for use of that form is included.

Adequate Purchase Description. See for further details on the Purchase Description.

Quantity and Unit of Issue.

The Contracting Officer will normally purchase the exact quantity of a supply/service provided on the Purchase Request. However, when an increase in quantity is advantageous, the Contracting Officer/Buyer may make the adjustment provided the adjustment does not exceed the funding restrictions provided on the Purchase Request or;
The Requiring Activity is contacted for authority and concurs with the recommendation to adjust the requested quantity (on a case-by-case basis only); or
The Requiring Activity has a pre-established written agreement with the Purchase Officer that automatically authorizes the Contracting Officer to effect changes to the purchase quantity. In all cases where the Requiring Activity authorizes the Purchase Officer to effect automatic adjustments in quantity, the Purchase Request should be annotated with the limits of the authorization.

Contracting Officers and Buyers can find general tables for units of measure to verify quantities and units of issue on the .

Delivery Information. The Customer should provide adequate information, on the Purchase Request, of the required delivery date or period of performance, place of delivery or performance, whether partials will be accepted, and a priority designator (if appropriate). The Required Delivery Date (RDD) must be stated as a specific calendar date (Julian dates are acceptable). As Soon As Possible (ASAP) is not an acceptable required delivery date.

Unique Requirements. The Customer should identify any unique requirements such as packing, marking or transportation requirements including Transportation Account Codes (TAC).

Price Estimate. An Independent Government Cost Estimate (IGCE) or price estimate and the basis on which it was developed (i.e., prices paid on previous buys for similar items, catalog prices, newspaper advertisements, etc.) should be provided on the Purchase Request. When applicable, the Government estimate should also include labor categories, labor rates, travel costs, etc. that are required to perform the proposed Performance Work Statement (PWS)/ Statement of Work (SOW) or Objectives (SOO).

Funding. See for further details on Funding requirements.

Inspection and Acceptance. Supplies obtained using SAP are normally inspected and accepted at destination. The Customer should identify any special inspection and acceptance requirements on the Purchase Request. See and for more information on inspection and acceptance.

Point of Contact (POC). The Purchase Request should also provide a technical POC (including a phone number or email address) at the Requiring Activity in case additional information is required.

Approvals/Signatures. A Purchase Request should include all the necessary justifications and signatures approving the requirement. (Some examples of some approvals that should be documented include sole source, Hazardous Material Certification, etc.) In addition, see the List of Prohibited and Special Attention Items for Simplified Acquisitions, which provides a ready reference for Customers and Buyers of items that DoD/DON has identified as requiring special attention and approval. The guide is not all-inclusive and does not supplant current legislative and regulatory directives applicable to supplies or services required.

5.11.1 PR Builder

PR Builder is the Marine Corps’ online Purchase Request application. It can be utilized from anywhere in the world where Internet access is available and Internet Explorer installed. All Purchase Requests above the micro-purchase threshold must be initiated using this application.

The Customer initiates the Purchase Request, entering data relevant to the procurement into PR Builder. The application guides the user through the process of generating, routing, and applying funding to a Purchase Request; it allows users to establish routing workflows of key players involved in the procurement process from the initiator through financial personnel to the Contracting Officer, and notifies users via email when actions occur.

To gain access to PR Builder, users register via the website. The PR Builder website offers web-based training on the latest release of PR Builder Version 4.0 (July 2006). This release features a new look, increased functionality for contract related actions, and new functionality for the creation and approval of funding documents.

When requesters submit a Purchase Request, data are transferred to financial approvers who apply funding and transmit the Purchase Request to the Standard Accounting, Budgeting, and Reporting System (SABRS). SABRS returns a Line of Accounting (LOA) to PR Builder and the PR is then transmitted to the Standard Procurement System (SPS). (Award is made in SPS using the LOA provided on the Purchase Request by SABRS.)

When requirements are subject to the availability of funds (SAF), the Customer does not include an LOA. Instead, he/she clicks on the SAF button in PR Builder so that SABRS will be bypassed and the Purchase Request will be routed directly to the Contracting Officer. The Contracting Officer awards the contractual action “SAF” by including the appropriate clauses (without an LOA). Once funding becomes available, the Customer creates a modification with an LOA, which is routed through SABRS and on to the Contracting Officer. The Contracting Officer then modifies the contract to add the LOA and corresponding funding amount.

SAF authority may be used only for Operation and Maintenance or for continuing services that are necessary for normal operations and for which Congress previously and consistently appropriated funds. The Government shall not accept supplies or services under a Purchase Order/Modification conditioned upon the availability of funds until the Contracting Officer has given the Contractor notice by issuance of a modification that funds are available.

6.0 Solicitation Phase

Upon completion of the planning phase, the Contracting Officer may formally solicit quotations from Vendors in the marketplace. In this phase, the Contracting Officer solicits quotes (either orally or written), encourages participation by small business concerns, publicly synopsizes the Government requirement, and completes all required solicitation forms. The solicitation phase is important because it defines the Contractors that are solicited, how the solicitation is issued, and the factors that impact solicitation procedures (e.g., small business requirements, foreign acquisition restrictions, etc).

The solicitation is a robust expression of the Purchase Request package. The Customer sends the Purchase Request package via PR Builder to the Contracting Officer in the Standard Procurement System (SPS) PD² and the Contracting Officer uses SPS to incorporate appropriate FAR, DFARS, and local clauses and provisions, create the solicitation, and issue the solicitation.

SPS standardizes procurement processes from receipt of requirements to contract closeout. It also establishes the necessary framework for senior Government and elected officials to use Federal Procurement Data System – Next Generation (FPDS-NG) (see ) to make key decisions in the areas of logistics, acquisition, and budgeting.

For further information about SPS, visit SPS Training Link () and .

6.1 Synopsis

In some situations, prior to issuing a contract action, the Contracting Officer must first issue a synopsis. The purpose of publicizing contract actions is to increase competition, broaden small business participation in meeting Government requirements, and notify small business concerns () of simplified acquisition opportunities. describes the regulations for publicizing contract actions. All procurements expected to exceed $25,000 (including Options) must be synopsized (unless an exception exists per ) in the electronic Government Point of Entry (GPE), which, for the MCFCS, is Navy Electronic Commerce Online (NECO) (see ).

The website is the centerpiece of the Navy’s paperless process strategy. All MCFCS Contracting personnel must become registered in NECO, as it is the single point of entry for USMC competitive solicitations. Contracting Officers are required to post any publicized contractual data on NECO. NECO automatically uploads to the Federal Business Opportunities () website. HQMC, I&L (Contracts) is the source for creating user accounts for all Marine Corps users. As there have been instances where the automatic upload did not occur, it is good business practice for the Contracting Officer to verify that the data uploaded properly to FedBizOpps.

Notices for non-commercial items must be posted per , at least 15 days before solicitation release. When acquiring commercial items (supplies or services), the Contracting Officer may use a Combined Synopsis/Solicitation, eliminating the timeframe between notice and solicitation release.

Micro-purchases are not subject to synopsis requirements. Other exceptions, as listed in , include the following:

Value not expected to exceed the Simplified Acquisition Threshold (SAT) that will provide access to the notice of the proposed contract action through NECO and permit the public to respond to the solicitation electronically. Unusual and compelling urgency.
8(a) award or NIB/NISH award.
Order placed against an IDC.
The contract action will be made and performed outside the United States and its outlying areas, and only local sources will be solicited.

For solicitations subject to the North American Free Trade Agreement (NAFTA), the Contracting Officer/buyer must synopsize the requirement for 15 days and allow a 40-day response time between publication of the notice of synopsis and receipt of quotes. provides additional information on NAFTA.

For detailed information regarding the various types of synopses, see .

Posting Actions Between $10,000 and $25,000. Proposed contract actions expected to exceed $10,000 yet not expected to exceed $25,000 must be displayed in a public place or disseminated by any appropriate electronic means. The notice must be posted no later than the date of solicitation issue and must remain posted for 10 days or until after the quotes have been opened, whichever comes later. Posting may take place manually at the contracting office, on an electronic bulletin board or Internet website at the contracting office, or via NECO/FedBizOpps – whichever the Contracting Officer determines to be in the Government’s best interest (see ).

Evidence that a solicitation was synopsized or justification for not synopsizing must be retained in the contract file. If the synopsis contains sufficient information to receive oral quotations, the Contracting Officer is not required to issue a separate written solicitation.

6.2 Solicitation

The Government communicates its requirements to prospective Offerors by issuing a solicitation. For simplified acquisitions, the solicitation takes the form of an SF 18 Request for Quotation (RFQ). At a minimum, solicitations describe the Government’s requirement, quantities and/or anticipated terms and conditions, information required in the offer/quote, the criteria that will be used to evaluate the offer, and the response deadline.

Under , the Contracting Officer has broad discretion in fashioning suitable evaluation procedures ( ). If using price and other factors as evaluation criteria, the Contracting Officer must ensure that quotations can be evaluated in an efficient and minimally burdensome fashion. Formal evaluation plans and establishing a competitive range, conducting discussions, and scoring quotations or offers are not required. Solicitations are not required to state the relative importance assigned to each evaluation factor and subfactor, nor are they required to include subfactors, unlike procurements. It is incumbent upon the Contracting Officer to ensure requirements have been described clearly and concisely to each and every Vendor.

Solicitations for commercial item procurements () and simplified acquisition solicitations () follow a streamlined format. acquisitions under $5.5 million may follow the solicitation procedures under . acquisitions greater than $5.5 million are not eligible for streamlined solicitation procedures and follow the procedures under (see ).

6.2.1 Oral Solicitations

To the maximum extent possible, quotes for requirements not expected to exceed the Simplified Acquisition Threshold (SAT) and not processed through NECO (under ) should be solicited orally, particularly for requirements not exceeding the micro-purchase threshold and when an oral solicitation is more efficient than soliciting through available electronic commerce alternatives. Additionally, solicitations for requirements not expected to exceed $25,000 may be limited to qualified sources within the local trade area. However, Contracting Officers may not limit solicitations to well-known businesses nor those that they personally prefer. Oral solicitations may not be practicable for contract actions exceeding $25,000 unless covered by an exception in .

Oral solicitations have the benefit of saving time, minimizing paperwork, and maximizing competition. Therefore, oral solicitations are less administratively expensive than written solicitations. When speaking with a Vendor, the Contracting Officer should describe the requirement completely and request a quote within a specified period of time (response time should be reasonably based upon the value and complexity of the action). The Contracting Officer should also request the Vendor’s business size and cage code, and then verify these on the Central Contractor Registration () website prior to quote evaluation. The quotation should contain the following, as applicable: Vendor’s name; model number, part number, and/or catalog number; unit and extended price; delivery date; transportation terms; and prompt payment discounts.

The Contracting Officer shall establish and maintain documentation of oral quotes to determine the best value for the Government. It may not be wise to solicit orally when one or more of the following conditions exists:

A lengthy specification or work statement must be communicated to a Vendor.
Soliciting quotes for services over $2,500.
Soliciting quotes for numerous items.
After advertising in NECO/FedBizOpps, many Vendors have requested participation in the solicitation.

6.2.2 Written Solicitations

When oral solicitations are considered impractical, when the use of NECO is not economical or practical, and/or when requirements exceed the micro-purchase threshold, the Contracting Officer should solicit quotes via written solicitations. A written solicitation may be issued using the SF 18 Request for Quotations, SF 1449 Solicitation/Contract/Order for Commercial Items, or by using the Combined Synopsis/Solicitation, which is uploaded to NECO via SPS. Written solicitations should be numbered in accordance with the – Uniform Procurement Instrument Identification Numbers.

Similar to oral solicitations, written solicitations also may be limited to qualified sources in the local trade area. The Contracting Officer may determine that a written solicitation is in the best interest of the Marine Corps when the following conditions exist:

Numerous line items are included in a single purchase action.
Purchase description or Performance Work Statement (PWS) is detailed.
Documentation must be provided to each potential Offeror.

Solicitations for service contracts over $2,500 shall be written pursuant to the requirements of the Service Contract Act (SCA). Wage rates as well as specific clauses are required to be included in solicitations and orders. These wages are based on the prevailing wages in the area where the contract is being performed, under the Fair Labor Standards Act. See the for further information on contract labor standards and contractor labor management relations.

Provisions are not generally required in solicitations for micro-purchases; however, this does not prohibit the use of provisions in the solicitation or clauses in the eventual Purchase Order when determined necessary by the Customer or Contracting Officer.

Adequacy of Solicitations. Whether soliciting quotes orally or in writing, the Contracting Officer must ensure that requirements are described in a clear, concise manner to each prospective Quoter. This description must include, at a minimum: a description of the supplies and services, the quantities required, the delivery date and location, and a deadline for responding to the solicitation.

6.2.3 Competition Requirements

Soliciting multiple Vendors is not required for procurements below the micro-purchase threshold or those under the Small Business Association (SBA) 8(a) Business Development Program ($5.5 million for manufacturing and $3.5 million for all other requirements).

Factors that influence the number of sources solicited include the following:

The nature of the supply or service to be purchased and whether it is highly competitive and readily available in several makes or brands, or if it is relatively noncompetitive.
Information obtained in making recent purchases of the same or similar item.
The urgency of the proposed purchase.
The dollar value of the proposed purchase.
Past experience concerning specific Vendors’ prices.

Micro-purchase Solicitations. For purchases not exceeding the micro-purchase threshold, one quote is acceptable if deemed reasonably priced ( ). Purchases should be equally distributed among qualified suppliers; that means acquisitions under the micro-purchase threshold should be rotated among Vendors so as not to show favoritism to any one Vendor.

Solicitations exceeding the micro-purchase threshold. Contracting Officers are required to promote competition by soliciting competitive quotes for actions above the micro-purchase threshold whenever practicable. Contracting Officers shall solicit quotes from at least three responsible, qualified sources () to promote competition to the maximum extent possible. Whenever practicable, quotations or offers should be requested from two sources not included in the previous solicitation. All qualified sources must, upon request, be allowed to submit a quotation if the quote is submitted in a timely fashion.

If only one source or product is reasonably available to meet the Government’s requirements, the Contracting Officer shall prepare a sole source Justification and Approval (J&A) for actions above the micro-purchase threshold and at or below the SAT restricting the solicitation to one source or a brand name product(s). The sole source J&A must provide an analysis of the requirement, describe the marketplace in which it is found, and explain the uniqueness of the product or service required and why the requested source or brand name is the only one that will meet the Government’s needs. Sole source J&As shall be prepared using the . This J&A template is also provided in PR Builder since it is necessary for the requirements generators to complete a justification when not competing a requirement.
Justifications for sole source acquisitions under shall be prepared and approved in accordance with the procedures outlined in .

6.2.4 Online Representations and Certifications Application (ORCA)

All solicitations, regardless of value, should instruct Offerors to complete Representations and Certifications, or the submission of other information via the Online Representations and Certifications Application (). The Contracting Officer must include Annual Representations and Certifications in all solicitations. For procurements of commercial supplies/services, the solicitation shall include , Offeror Representations and Certifications – Commercial Items. (Offerors may still be required to complete DFARS Representations and Certifications, or other statements of information in the solicitation.)

ORCA replaces most of the paper-based Representations and Certifications (Reps and Certs) in solicitations. mandates the use of ORCA on or after January 1, 2005.

CCR and ORCA are complimentary systems; Vendors must be registered in CCR in order to register in ORCA. ORCA uses data pulled from CCR and pre-populates many of the required Reps and Certs. The Vendor completes the remaining Reps and Certs with the understanding that with each solicitation, they are certifying to current, accurate, and complete information.

6.2.5 Solicitation Procedures for Commercial Items

Use of the Standard Form (SF) 1449. The standard form used when purchasing commercial items is SF 1449 Solicitation/Contract/Order for Commercial Items. In using SF 1449, the Contracting Officer ensures that all information required by statute (e.g., North American Industry Classification System (NAICS) Codes, size standards, commercial clauses) is gathered and recorded on one form. The SF 1449 is simple and allows the Contracting Officer to use one form for solicitation, award, receipt, inspection, and acceptance, which greatly reduces paperwork.

Use of the SF 1449 for a commercial items solicitation (when a written solicitation will be issued) and the contract/order award of commercial items is mandated when the conditions of (a) are met.
For acquisitions below the simplified acquisition threshold (SAT), per (a)(3), use of the SF 1449 is not mandatory but encouraged. As authorized by (a), if use of the SF 1449 for the contract/order award of commercial items is not practicable, the Contracting Officer may use the DD 1155 as long as appropriate terms and conditions are included.

Provisions and clauses for commercial items. For all acquisitions for commercial items, the solicitation provisions and contract clauses provided at shall be used as applicable. In addition, tailoring of commercial items provisions and clauses as authorized by may be appropriate.

Synopsis. Acquisitions of commercial items exceeding $25,000 shall be synopsized. Unless using a combined solicitation/synopsis in accordance with (a) (further described below), the synopsis for a commercial items solicitation:

Must be issued prior to issuing the solicitation.
May allow fewer than 15 days between publication of the synopsis and issuance of the solicitation as authorized by (a)(1).

Combined solicitation/synopsis. In lieu of a separate written solicitation, the Contracting Officer is encouraged to issue a Combined Synopsis/Solicitation as outlined in (a) to the maximum extent practicable, as the combined action reduces Procurement Administrative Lead Time (PALT).

The SF 1449 may be used to award a contract for commercial items that used the combined solicitation/synopsis procedures.
Ensure the synopsis addresses the following:

All elements identified in .
When the acquisition includes a brand name product(s), ensure the additional synopsis requirements at are met.
When using combined solicitation/synopsis procedures, ensure the synopsis includes the information required by (c)(2).

6.3 Small Business Program Solicitation Instructions

The Contracting Officer must ensure special considerations are taken for, and encourage maximum participation by, Small Businesses, Veteran-Owned Small Businesses, Service-Disabled Veteran-Owned Small Businesses (SDVOSB), HUBZone Small Businesses, Small Disadvantaged Businesses, and Women-Owned Small Businesses in acquisitions. The Contracting Officer must determine, during the market research process, whether there are an adequate number of small businesses in the supply commodity or service industry applicable to the requirements. If so, the Contracting Officer must set-aside the requirement for small business participation and solicit the requirement, inserting the applicable clauses, as required.

Applicable FAR and DFARS Small Business Program provisions and clauses shall be included in all solicitations, solicitations (whether oral, written, or electronic) and resultant contracts. The Contracting Officer may use the Hill Air Force Base FARSite Clause Logic online tool to determine which requisite regulatory provisions and clauses to include in a solicitation and resultant contract.

For oral solicitations, purchasing files shall contain evidence that the applicable provision and clause information was provided to all Vendors solicited for quotations.

Generally, small businesses will self-certify their status in the applicable solicitation provision or orally in response to telephone solicitations.

Solicitations for 8(a) Concerns. Competition is not required when soliciting quotes from 8(a) concerns; rather, solicitations may be issued on a sole source basis without a sole source justification using Notification of Competition Limited to Eligible to 8(a) Concerns.

Solicitations for Very Small Businesses.

When the contracting office is located in a designated SBA district (or when one of its Customers is in a designated district), the Contracting Officer should maintain lists of Very Small Businesses. Requirements shall be set aside for Very Small Business Concerns when actions have an anticipated dollar value exceeding the micro-purchase threshold but not greater than $50,000 and when the requirements meet the following provisions:

The contracting office is located (supplies) or the contract will be performed (services) within the area served by an SBA district, and
There is reasonable expectation of receiving offers that are competitive in price, quality, and delivery from two or more responsible Very Small Business Concerns headquartered within the area served by an SBA district.

If these provisions are not met, the Contracting Officer shall document the file and proceed to award as a Total Small Business Set-Aside. This exception may apply, for example, in the event the Contracting Officer is purchasing Original Equipment Manufacturer (OEM) parts that are sole-source and only available from a large business.
If the Contracting Officer solicits quotes from small businesses and receives only one quote from a small business, award should be made to that Offeror, after the Contracting Officer has determined that the price is reasonable.

Total Small Businesses.

If the Contracting Officer issues a solicitation establishing the Total Small Business Set-Aside but does not receive at least one quote from a responsible small business concern at a fair and reasonable price, the set-aside shall be withdrawn and the requirement re-solicited on an unrestricted basis. If a synopsis has been issued for the original requirement, this should be canceled and a new unrestricted synopsis issued. This requires documenting the contract file with the reason for not awarding the order to a small business and either amending the previous solicitation or issuing a new solicitation.

The Contracting Officer must submit DD 2579s for actions exceeding $10,000 to the SBS for review that are not totally set aside for small business concerns in accordance with . (The Contracting Officer should follow the procedures at (d)(10) regarding such reviews.)
The SBS will review the requirement in accordance with and make recommendations on the DD 2579 and return it to the Contracting Officer. The Contracting Officer is ultimately responsible for accepting or rejecting the recommendations on the DD 2579. If the recommendations are not accepted, the Contracting Officer should meet with the SBS to resolve the issues. In the event a resolution cannot be reached, the DD 2579 may be forwarded to the Small Business Administration’s (SBA’s) assigned Procurement Center Representative (PCR) for decision. If no PCR is assigned, the Contracting Officer will refer the matter to the SBS Appointing Authority. Note: When a set-aside is dissolved, contracts/orders may still be awarded to 8(a) firms under Contracting With the Small Business Administration.

HubZone / Service-Disabled Veteran-Owned Small Businesses.

Pursuant to , the Contracting Officer may set aside for HUBZone Small Business Concerns or SDVOSB Concerns an acquisition of supplies or services that has an anticipated dollar value exceeding the micro-purchase threshold and not exceeding the SAT. The Contracting Officer’s decision not to set aside an acquisition for HUBZone Small Business or SDVOSB Concerns participation below the SAT is not subject to review under .
For acquisitions exceeding the SAT, the requirement to set aside an acquisition for HUBZone Small Business Concerns takes priority over the requirement to set aside the acquisition for Small Business Concerns. Solicitation procedures for HubZone or SDVOSB set-asides are identical to those for other set-asides under .

Unrestricted Solicitations.

Prior to soliciting a requirement exceeding the micro-purchase threshold but not exceeding SAT on an unrestricted basis, the Contracting Officer must make a written determination to be included in the contract file. This determination shall state that there is no reasonable expectation of obtaining quotations from two or more responsible small business concerns (including nonmanufacturers who offer the products of different concerns), that will be competitive in terms of price, quality, and delivery.
This determination can be accomplished on the form (for requirements not exceeding $10,000) or the (for requirements exceeding $10,000).

6.3.1 Size Standard Representations in Solicitations

After reviewing the purchase description or Performance Work Statement (PWS), the Contracting Officer will determine the appropriate NAICS code(s) and the related small business size standard, which should be included in the solicitation provision, or its alternate or , as appropriate.

6.3.2 Quoter’s Representations

To be eligible for award under a small business set-aside, a Quoter must represent in good faith that the Vendor is a small business as of the date the quotation was submitted. The Contracting Officer will generally accept the representation unless (1) another Quoter or interested party challenges the Vendor’s representation or (2) the Contracting Officer has reason to question the representation. Challenges of and questions concerning representations should be referred to the SBA per .

6.4 Special Considerations

During the solicitation phase, the Contracting Officer must consider certain provisions and statutes for applicability to individual procurements.

6.4.1 Economic Quantity Discounts

Each solicitation for supplies is required, if practicable, to include the provision at , Economic Purchase Quantity-Supplies. This provision invites each Quoter to: (1) state an opinion on whether the quantity of the supplies requested is economically advantageous to the Government, and (2) if applicable, recommend quantities that would be more economically advantageous. If quantity discounts are quoted and a significant price variation is evident between the requested quantity and the quoted discounted quantities (which identify significant savings for the Government) the buyer must consult with the Customer/requesting activity prior to award to identify the potential savings. When consultations with the Customer result in a change in the requested quantity, the Contracting Officer/ buyer must request revised quotes from the participating Offerors per the revised quantity.

6.4.2 Evaluating Quotes for Multiple Awards

Instructions to Offerors – Commercial Items states that the Government reserves the right to make multiple awards (e.g., issuing several POs or BPA Calls for a multiple line item purchase request). If doing so is economically advantageous, the Government may indeed elect to make multiple awards under a single solicitation. In order to do so, however, the appropriate award clause must have been included in the solicitation: Evaluation of Bids for Multiple Awards (for commercial purchases, insert Instructions to Offerors - Commercial Items).

The decision to award multiple orders should be based on a realistic cost developed by the Contracting Officer based on the administrative cost of issuing additional awards. Prior to soliciting the requirement, the Contracting Officer may decide to include a restriction in the solicitation that authorizes subsequent awards only on an all or none basis.

6.4.3 Federal Technical Data Solution (FedTeDS)

All Sensitive But Unclassified (SBU) acquisition information used during the solicitation phase of the procurement cycle should be entered into, and protected by, Federal Technical Data Solution (FedTeDS), an online dissemination tool designed to safeguard sensitive acquisition related information for use by all Federal Agencies and their approved business partners. When the Contracting Officer determines that a solicitation contains information requiring additional controls to monitor access and distribution (e.g., technical data, Specifications, maps, building designs, schedules), the information should be made available through FedTeDS unless an exception in exists. FedTeDS provides an electronic link to FedBizOps (to meet synopsis requirements) that makes SBU information accessible only by the Contracting Officer.

6.4.4 Service Contracting

When buying services, the Contracting Officer must comply not only with simplified acquisition policies and procedures, but also with statutes and laws aimed at protecting service employees.

The McNamara-O'Hara Service Contract Act (SCA) of 1965 provides that the Secretary of Labor shall determine the minimum wages and fringe benefits to be paid to "service employees," those working under Federal contracts in excess of $2,500. Service employees are generally blue-collar type employees (e.g., mechanics, helpers, draftsmen, etc.). Wage levels vary by type of service and by locality. The Wage Determination (WD) is made part of the order, and the Contractor and any Subcontractor are obliged to comply with it. Therefore, the buyer or Contracting Officer must complete and forward an SF 98 to the Department of Labor (DOL) or via the Internet at . Prior to award of a service contract, he/she must also obtain the DOL’s determination of prevailing wages for specific job categories in the locality in which the contract is to be performed, which is to be included in the solicitation and award document. The DOL database website entitled "WDOL.GOV" is part of the Integrated Acquisition Environment, one of the E-Government initiatives in the President's Management Agenda. As part of the President's Management Agenda, DOL provides electronic access to WDs at .

In an emergency procurement, such as an environmental clean up, it may be impossible to obtain the WD from the Vendor prior to award. Therefore, the Contracting Officer must make sure the Vendor knows the SCA applies and that the Vendor is paying prevailing labor rates for the area (see also FAR Subpart 22.10 SCA of 1965, as Amended). When the Contracting Officer receives the WD from DOL, he/she must modify the purchase to incorporate the wage rates with a bilateral agreement. In some cases, he/she may have to increase the amount of the purchase order to accommodate the payment of those rates.

On June 1, 2006, the prevailing health and welfare fringe benefits issued under SCA were increased. All solicitations released, or service contracts awarded on or after June 1, 2006, must include an updated SCA WD. Revised WDs reflecting the new benefit rates are available at (). For more information, see U.S. Department of Labor Memo, Service Contract Act Health and Welfare Fringe Benefit Changes Changes.

For Service Contracts over $2,500, the Contracting Officer must include the following:

, Service Contract Act of 1965, as amended
, Statement of Equivalent Rates for Federal Hires
, Fair Labor Standards Act and Service Contract Act – Price Adjustment (multiple year and Option contracts)
, Fair Labor Standards Act and Service Contract Act – Price Adjustment

Additional information on the SCA can be found at . The SCA does not apply to services performed outside the United States and its outlying areas (this does not include leased bases or Trust Territories). See the for further information on contract labor standards and contractor labor management relations.

6.4.5 Buy American Act

The Buy American Act restricts the purchase of supplies that are not domestic end products for use within the United States. Generally, simplified acquisitions are reserved for small businesses offering domestic end products, as prescribed in and . (See for definitions of articles, materials, and supplies considered domestic end products.) If, however, the small business set-aside is waived and offers are received for both domestic and foreign products, the Contracting Officer must evaluate all offers.

The Buy American Act applies to supply orders and those orders for services that involve furnishing of supplies acquired for use in the U.S. that exceed the micro-purchase threshold ($3,000). A foreign end product may be selected if the Contracting Officer determines that the price of the lowest domestic offer is unreasonable or if another exception applies (see ).

When using written solicitations, the Contracting Officer must state in the solicitation that only domestic end products shall be accepted unless the price for an offered domestic end product is unreasonable or another exception under exists. When soliciting quotes orally, the Contracting Officer must relay this information to each Vendor verbally. For all solicitations to which the Buy American Act applies, the following clauses and provisions shall be inserted in the solicitation:

The clause at Buy American Act and Balance of Payments Program
The provision at Buy American Act – Balance of Payments Program Certificates
The clauses at , Qualifying Country Sources as Subcontractors

For Foreign Acquisitions under GSA FSS, when a Schedule lists both foreign and domestic items that will meet the Customer’s needs and is over the micro-purchase threshold, the Contracting Officer must apply the evaluation procedures of the Buy American Act.

6.4.6 North American Free Trade Agreement (NAFTA)

NAFTA is a trade agreement among the U.S., Canada, and Mexico. Canadian and Mexican end products subject to NAFTA are those listed under . If the solicitation is set-aside as a Total Small Business Set-Aside under , the NAFTA does not apply (other exceptions can be found under and ). When a solicitation is issued on an unrestricted basis, the Contracting Officer shall not apply the Buy American Act or Balance of Payments Program factor to any eligible NAFTA country end product and shall evaluate each quotation as a qualifying country end product per . As required by the NAFTA, Canadian end products under supply contracts with an estimated value above a certain threshold ($25,000 per ), and Mexican end products under supply contracts with an estimated value above a certain threshold ($56,190 per ), shall be evaluated without regard to the Buy American Act; however, Canadian end products at any value should be considered and evaluated as qualifying end products since Canada is listed in as a qualifying country. Quotations for Mexican end products estimated to cost less than the threshold ($56,190 per ), or which are not eligible under NAFTA, may be considered and evaluated as a nonqualifying country end product.

As required by the Federal Trade Agreement, Chile and Singapore end products under supply contracts with an estimated value above a pre-determined dollar value shall be evaluated without regard to the Buy American Act. The Israeli Trade Agreement is also similar to NAFTA, as only end products under supply contracts with a pre-determined estimated value shall be evaluated without regard to the Buy American Act. The estimated values change frequently; Contracting Officers shall refer to to validate information before soliciting and awarding.

For all solicitations over $25,000 solicited on an unrestricted basis to which NAFTA applies, the following clauses and provisions shall be inserted in the solicitation:
1. The provisions at or Alternate I, Buy American Act – North American Free Trade Agreement Implementation Act – Balance of Payments Program Certificate instead of
2. The clause at or Alternate I
4. over $100,000
Exceptions to the Balance of Payments Program and Trade Agreements Act can be found in and , respectively, as well as .

6.4.7 Restrictions on Certain Foreign Purchases

The Contracting Officer may not acquire supplies or services from the following countries:

Cuba (31 CFR Part 515),
Iran (31 CFR Part 560),
Libya (31 CFR Part 550),
North Korea (31 CFR Part 500), and
Sudan (31 CFR part 538).

Unless agency procedures require a higher level of approval, the Contracting Officer may, in unusual circumstances, acquire for use outside the United States supplies and services from Cuba. Examples of unusual circumstances are an emergency or when the supplies or services are not otherwise available and a substitute is not acceptable. The Contracting Officer must provide documentation in the contract file whenever this exception is used.

The Contracting Officer must check the lists of entities and individuals subject to economic sanctions that are available on the Office of Foreign Assets Control () website and may not acquire from such entities and individuals ((b)). The Contracting Officer is no longer authorized in unusual circumstances to acquire for use outside the United States supplies or services restricted by this section unless specifically authorized by OFAC. However, OFAC has granted authority to DoD personnel to make emergency acquisitions in direct support of U.S. or allied forces deployed in military contingency, humanitarian or peacekeeping operations in a country or region subject to economic sanctions administered by OFAC (see ).

6.4.8 Hazardous Materials and Hazardous Waste Disposal

Hazardous material procurement must be preceded by approval from a Navy Hazardous Material Control and Management Committee Program Office. If no such office exists for an activity, it may receive approval from the Commanding Officer. If the Purchase Request is lacking the required documentation, the Purchase Request shall be returned without action to the Customer.

When acquiring hazardous materials, it is the Contracting Officer’s responsibility to include clause “Hazardous Material Identification and Material Safety Data” in all orders for hazardous materials identified in Federal Standard 313C. This clause requires the Vendor to certify that material is/is not hazardous and to furnish a Material Safety Data Sheet (MSDS) with the shipment of material. provides guidance on the MSDS.

The Contracting Officer must also include , “Hazard Warning Labels,” which requires the Vendor to submit warning labels for hazardous materials.

Per DODI 6050.5 and , the Contracting Officer must forward the MSDS and hazard warning label to Naval Environmental Health Center (NEHC) and to the cognizant safety officer. Refer to FED-STD-313C to ensure inclusion of the correct requirements and clear instructions to Vendors.

6.4.9 Transportation Provisions

When Free on Board (FOB) Destination-only quotations are desired within the Continental United States (CONUS), the Contracting Officer may include a statement in the solicitation that quotes submitted on a basis other than FOB Destination will be rejected as nonresponsive.

The Contracting Officer may also specify that quotations be FOB Destination, FOB Origin, or both. FOB Origin and/or FOB Destination shall be incorporated into the solicitation and resultant contract if terms other than FOB Destination will be considered by the Government.

6.5 Options

Pursuant to and , prior to including Option provisions in solicitations and contracts, Contracting Officers must justify in writing the quantities or the term under Option, the notification period for exercising the Option, and any limitation on Option price.
An Option is a unilateral right by which the Government may elect to purchase additional supplies or services called for by the contract, or may elect to extend the term of the contract. An Option requires the Contractor to guarantee prices for a definite period of time with no assurance that the Option will be exercised. The use of Options allows the Government to satisfy requirements that were unknown or unfunded at the time of contract award without having to expend further time or funds competing the work. Options should only be used when doing so is in the Government’s best interest. Options may not be in the Government’s best interest when the foreseeable requirement involves minimum quantities and delivery requirements far enough into the future to permit competition, production, and delivery. Additionally, Options may not be advisable when an Indefinite Delivery PO (IDPO) would be more appropriate (in this instance, Options may still be used in the IDPO).
The Contracting Officer shall not employ Options if:

The Contractor will incur risks (e.g., price and/or availability of materials or labor are not foreseeable);
Market prices are likely to change substantially;
The Option represents known firm requirements and funds are available (exceptions exist).

The use of Options provides no guarantee to the Contractor and the Government may choose not to exercise the Option for the following reasons:
1. The requirement no longer exists.
2. Congress fails to appropriate the funds.
3. The Contracting Officer determines that exercising the Option is not in the best interest of the Government.
All Options should typically be synopsized and priced at the time of contract award with the exception of “surge Options” (see and ). Any decision to not evaluate options at time of award must be justified in writing and approved at a level above the Contracting Officer. Evaluation criteria for Options must be included in all solicitations with Options. Option pricing should be evaluated along with the required base quantity pricing prior to contract award. The objective of this evaluation is to determine Option prices to be fair and reasonable at the time of the basic award.
Prior to incorporating Option provisions into any solicitation, the Contracting Officer should determine if using Options is in the Government’s best interest. explains the policies and procedures for the use of Option solicitation provisions and contract clauses. The Contracting Officer must justify, in the file, the quantities or the term under the Option, the notification period for exercising the Option (see ), and any limitation on Option price. In determining the Option exercise date and quantities, the Contracting Officer must abide by the limitations set forth in (c) and .
Unless otherwise approved in accordance with agency procedures, the total of the basic and Option periods shall not exceed five years in the case of services, and the total of the basic and Option quantities shall not exceed the requirement for five years in the case of supplies. The Contracting Officer must obtain approval prior to issuing the dolicitation for the use of contract terms in excess of five years. This approval must be submitted to ADC, I&L (Contracts) in the form of a Determination and Findings (D&F). The D&F shall explain how the procurement’s competitive history and/or significant capital investment requirement indicates that a longer period of performance is necessary to establish or maintain competition.
Actions typically should exceed five years only if there are significant start-up costs and investment requirements on the part of offerors. Most of those types of actions exceeding five years will likely exceed the $50M limit for a formal Acquisition Plan (AP). In those cases where an AP is prepared, the rationale and justification for a period exceeding five years must be made in the AP. Approval of the AP will suffice for approval of the extended period rather than submitting a separate D&F.
A determination to establish an ordering period in excess of 10 years, in accordance with (e)(i)(C), must be submitted to ADC, I&L (Contracts), who will review and forward to DASN(A&LM) .
Provisions and Clauses: Several provisions and clauses are required when incorporating Options in purchases. They are discussed fully in . Note that the clauses for Options for supplies differ from the clauses for Options for services. The Contracting Officer should insert the applicable provisions and clauses:
1. , EVALUATION EXCLUSIVE OF OPTIONS is required when the solicitation includes an Option clause and does not include one of the following:
2. , EVALUATION OF OPTIONS EXERCISE AT TIME OF CONTRACT AWARD is required when the solicitation includes an Option clause, a determination has been that there is a reasonable likelihood that the Option will be exercised and the Option may be exercised at the time of the contract.
3. , EVALUATION OF OPTIONS is required in solicitations when the solicitation contains an Option clause; an Option is not to be exercised at the time of contract award; and a determination has been made that there is a reasonable likelihood that the Option will be exercised.
4. , OPTION FOR INCREASED QUANTITY is required in solicitations and orders, other than those for services, when the inclusion of an Option is appropriate and the Option quantity is expressed as a percentage of the basic order quantity or as an additional quantity of a specific line item.
5. , OPTION FOR INCREASED QUANTITY-SEPARATELY PRICED LINE ITEM is required in solicitations and orders, other than those for services, when the inclusion of an Option is appropriate and the Option quantity is identified as a separately priced line item having the same nomenclature as a corresponding basic order line item. This clause contains a fill-in for the Contracting Officer to indicate the time the Government will exercise the Option for additional quantities. When using this clause, keep in mind the delivery requirements of the order. For example, the order may state that Option quantities are required to be delivered within 30 days of Option exercise.
6. , OPTION TO EXTEND SERVICES is required in solicitation and orders for services when the inclusion of an Option is appropriate.
7. , OPTION TO EXTEND THE TERM OF THE CONTRACT is required in solicitations and orders when the inclusion of an Option is appropriate and it is necessary to include in the order a requirement that the Government shall give the Contractor a preliminary written notice of its intent to extend the contract, a stipulation that an extension of the Option, and/or a specified limitation on the total duration of the contract. The clause also requires a fill-in for the time period in which the Contracting Officer has to exercise the Option.

6.6 Payment Methods and Procedures

6.6.1 Prompt Payment

Pursuant to , the Prompt Payment method is applicable to all contracts with the exception of contracts with contract financing payments, and contracts with payment terms and late payment penalties established by other governmental authorities. Additional information and procedural guidance for using the Prompt Payment method is outlined in .

In addition to the Prompt Payment method, when applicable, the Fast Payment method may apply. Refer to below for specific guidance on the applicability of the Fast Payment method and procedures for use.

6.6.2 Fast Payment

Fast Payment Method. Fast Payment procedures are designed to allow payment, under limited conditions, to a Contractor prior to official receipt and acceptance of supplies. As outlined in , the Fast Payment method provides for payment for supplies based on the Contractor’s submission of an invoice that constitutes a certification that the supplies have been delivered to a post office, common carrier, or point of first receipt by the Government. The Contractor agrees to replace, repair, or correct supplies not received at the destination, damaged in transit, or that do not conform to purchase agreements.

Fast Payment procedures are not appropriate when the point of acceptance is nearby, where normal receiving report control procedures apply, or where the item is complex and requires special quality assurance and/or inspection and acceptance procedures. The Fast Payment method is designed to encourage faster delivery to the Government and to improve supplier relations by speeding payments to Contractors.

Applicability. Fast Payment procedures are used when:

The acquisition is less than or equal to $30,000, the conditions in apply, and the conditions listed below from apply; or
The acquisition exceeds $30,000, the conditions in and apply, and the conditions listed below from apply.

As stated above, below are the , Chapter 8, Section 4, conditions that apply for the use of Fast Payment procedures in addition to the FAR and DFARS requirements also identified above.

The final destination shall be a U.S. Government agency or facility located in a remote area;
Contract administration shall be retained by the purchasing office;
The Contractor agrees to prepay transportation or postage expenses to the final destination or the point of first receipt by the Government. If unit prices do not include these transportation charges, the order shall be labeled as required under F.O.B. Origin Freight Prepaid Terms; and
The Government will provide payment to the Contractor within 15 calendar days after receipt of a proper invoice.

Solicitation/Contract Requirements. Purchase Orders (POs) or Blanket Purchase Agreements (BPAs) using the Fast Payment method shall:

Include the clause at Fast Payment Procedure (BPAs may either include the clause in the BPA or the orders placed under the BPA);
Require that supplies be shipped with transportation or postage prepaid;
Include in the ordering document, or have attached to it, instructions and deadlines for notifying the purchasing office if supplies are not received, damaged in transit or not conforming to specifications. Pursuant to , the instructions shall include the following:

The final consignee shall provide the purchasing office with a Report of Receipt, Non-Receipt or Nonconformance card, or other document that includes similar information. The report is due within 10 days after receipt stating the material conforms or does not conform to requirements of the order.
The final consignee shall notify the Contracting Officer of non-receipt of material within 30 days of the receipt date noted in the order. (Note: The Contracting Officer does not need to include this notification in the instructions if the purchase request is in the MILSTRIP System).

Receipt and Acceptance of Supplies.

The Contracting Officer shall track Fast Payment orders and ensure timely delivery by establishing a system to ensure regular follow-up with the final consignee. The Contracting Officer shall obtain periodic status checks from the final consignee and set reminders for delivery due dates in order to track progress, receipt, non-receipt, and nonconformance of the supplies.
If supplies are lost, damaged or do not conform to the purchase requirements and a Contractor fails to properly replace, repair, or correct the supplies, the Contracting Officer shall be primarily responsible for determining the amount of debt owed to the Government, as outlined in (b).

Payment. Pursuant to , the Government shall provide payment to the Contractor within 15 calendar days after receipt of a proper invoice.

Monitoring the Use of Fast Payment Orders. MCFCS offices using Fast Payment orders shall establish internal operating procedures to ensure that Contractors authorized the use of the procedures do not abuse Fast Payment procedures. If more than 10 Fast Payment orders are issued per year, activities must establish internal operating procedures that identify Contractors who have received Fast Payment orders and not conformed to the required procedures. In addition, activities must establish an internal list of Contractors who are ineligible for future Fast Payment orders based on prior experiences in which they did not comply with Fast Payment ordering procedures.

6.7 Solicitation Record

All information attained during the solicitation phase must be documented in the contract file. At a minimum, the Contracting Officer should include the following for each quote received within the allotted timeframe for responses:

Identification of Quoter (business name, address, phone number, and POC)
Date/time of quote received
Quoter’s business size representation
Other qualifications
Brand name and model, part or catalog number of each quoted item
Country of origin of quoted item
Unit and extended price for each product or service
Total price of all quoted items
Proposed delivery date
Transportation terms
Quantity or trade discounts offered, if applicable
Minimum order charge, if applicable
Prompt payment discounts, if applicable

7.0 Evaluation Phase

Once quotes are received, all must be evaluated to ensure that award is made to an Offeror who is responsive to the solicitation, meets any selection criteria that were established within the solicitation, is able to perform (per ), and offers the needed supplies and/or services at a fair and reasonable price.

All quotes received must be considered impartially by the Contracting Officer, taking into consideration transportation charges as appropriate. Quotations or offers must be evaluated on the basis established in the solicitation and the evaluation results documented in the contract file. The Contracting Officer has broad discretion in fashioning suitable evaluation procedures in the solicitation but must ensure adherence to the procedures during the Evaluation.

Several methods of evaluation are included in this section. In addition to price evaluation techniques, the Contracting Officer should consider other factors that affect the total price to be paid, such as minimum order charges, packing/packaging charges, and special marking charges. Each of these factors has the ability to increase the total acquisition price. The Contracting Officer may evaluate quotations based on price alone or price and other factors (e.g., past performance, delivery, quality). Suppliers must be advised when quotations are solicited and award will be made on factors other than price alone. Those factors must be identified in the solicitation.

Quotations shall be evaluated by their aggregate firm fixed prices, including Options unless the Contracting Officer determines that it is not in the Government’s best interest (e.g., when there is a reasonable certainty that funds will be unavailable to permit exercise of the Option).

7.1 Fair and Reasonable Price Determination

All actions over the micro-purchase threshold must have a written “fair and reasonable” determination, which is documented in the contract file (). A fair and reasonable price is one that is fair to both parties involved in the acquisition – Government and Contractor – considering the promised quality and timeliness of the Contractor’s performance. Typically, there is not one singular price that is fair and reasonable, but there exists a range of acceptable prices, considering the character of the marketplace in which the supply or service is normally sold and the degree of competition available. Market research, current market price/conditions, previous purchases, catalogs, advertisements, similar items in a related industry, value analysis, the Contracting Officer’s personal knowledge of the items being purchased, comparison to an Independent Government Cost Estimate (IGCE), or any other reasonable basis should all be considered when making a determination of price reasonableness.

For procurements greater than the micro-purchase threshold but less than $100,000, the Contracting Officer shall document fair and reasonable price determination for the contract file in the . The Contracting Officer should provide adequate documentation to support his/her determination. For procurements using Simplified Acquisition Procedures (SAP) under , the Contracting Officer must complete a more robust document, a streamlined Business Clearance Memorandum (BCM). See the SAP Pre/Postnegotiation BCM and SAP Postnegotiation BCM in the .

If only one quote is received in response to a solicitation, price reasonableness still needs to be determined, and the Contracting Officer must evaluate all quotations to determine if competition has resulted in a fair and reasonable price. Wide variations in prices may be an indication that an Offeror does not understand the requirement or is trying to “buy-in” to the procurement. The Contracting Officer must explain wide discrepancies in quoted prices in determining the prices fair and reasonable. Additionally, he/she shall obtain approval of the Simplified Acquisition Documentation Record, or of the streamlined BCM, depending on the dollar value of the requirement.

7.2 Price Analysis

Price analysis is the process of examining and evaluating a quoted price without considering either the cost of the elements therein or the profit of the Vendor. When awarding procurements using SAP, the conclusion that a price is fair and reasonable is generally based on price analysis. In many cases, price analysis uses comparisons to establish a basis for determining price reasonableness. The following are the primary price analysis techniques used in simplified acquisitions. These methods usually require no further analysis by the Contracting Officer. When competition is not available (e.g., for a sole-source requirement), other forms of price analysis must be utilized. When three Vendors are solicited for quotes and only one quote is received, the Contracting Officer must use a price analysis technique other than competition to make a determination that the proposed price is fair and reasonable before making the award.

7.2.1 Primary Price Analysis Techniques

Primary price analysis techniques are pricing methods that can stand alone and normally require no further information or analysis by the Contracting Officer.

Price Competition

Comparing competitive quotes is the best method for determining a proposed price to be fair and reasonable. When utilizing this price analysis technique, the prices must bear a reasonable relationship to one another. Adequate price competition exists when quotes have been solicited from at least three sources, with a minimum of two independent quotations received that can be used to establish a competitive range (a fairly tight cluster of quotes). The proximity of the range of prices provides the Contracting Officer with an indication that adequate price competition has been obtained and award can be made without additional comparisons. If the quoted prices vary significantly, it could mean that a Quoter is efficient and is passing on quantity discounts, or that he/she is trying to “buy-in” with an unrealistically low price or has provided a mistaken quotation.
If the price variance between responses reflects a lack of adequate competition, some other form of price analysis must be used to determine that the price is fair and reasonable. Additionally, the Contracting Officer must make analysis of a quoted item’s real worth (based on past experience and personal judgment).

Established Catalog/Market Price List

When only one quote is received or price competition is otherwise determined inadequate, the buyer must use other price analysis techniques. Another such technique is use of an established catalog/market price list. When a valid comparison can be made through this method, it may assist the Contracting Officer in his/her fair and reasonable determination. It is important to note that established market or catalog prices alone do not establish price reasonableness, however. Additional price analysis must be performed to verify the validity of the catalog or market price. In order to use a catalog, it must be regularly maintained by the Vendor and published or otherwise made available for inspection by Customers. It must state prices at which sales are currently or were last made to a significant number of persons or businesses constituting the general public. Market price is established (independently of the manufacturer or Vendor) during the normal course of business between buyers and sellers, and can be verified via newspapers, radio, or TV ads. All items must be commercial, regularly used for other than Government purposes, and sold in substantial quantities to the general public.
Supplies are sold in substantial quantities when facts or circumstances support a reasonable conclusion that the quantities regularly sold constitute a real commercial market for the item. Nominal quantities like models, specimens, samples, and prototype or experimental units do not meet this requirement. Services are sold in substantial quantities and are customarily provided by a company with regularly-employed personnel and regularly-maintained equipment, if any is needed solely or principally to provide such services.
When relying on published prices, there must be a high degree of confidence that the price list reflects prevailing competitive rates and that the suppliers' awareness of one another's prices was as effective as direct competition in establishing those prices. Some manufacturers may use a series of catalogs with varying prices for different classes of Customers, charging what they think the market will bear. Contracting Officers should ask many questions and document the answers in the contract file. When using this method, the file should be documented with the Vendor’s catalog date (at a minimum) or a copy of the page from the catalog that contains the published price.

Prices Set by Law or Regulation If the price quoted is set by law or regulation, the Offeror is required to identify the regulated price. The Contracting Officer must ensure that the Quoter is the entity being regulated. Some suppliers sell mostly to regulated industries; the Federal Government may not be subject to the same laws and regulations. If Government sales are not controlled by such legally established prices, the Contracting Officer should use the established catalog/market price technique. The first step in this comparison technique is to obtain a copy of the rate schedule set by the applicable law or regulation. The Contracting Officer must verify that the Government is being charged the correct price and that the Vendor falls under the regulation.

7.2.2 Secondary Price Analysis Techniques

The following are secondary price analysis techniques, which should be used to support primary techniques that are inadequate.

Comparison Between Previous Similar Buys and Current Prices (Historical Comparison)

A price previously paid or quoted cannot be used to determine price reasonableness unless the Contracting Officer knows that the prior purchase was fair and reasonable, as determined by the comparison of competitive quotations. To use this pricing technique, the following criteria must be met:

The prior purchase price used was determined in writing to be fair and reasonable, taking into consideration the competitive environment that shaped the previous price (e.g., purchase quantity, delivery time, transportation charges, and special packaging).
The Contracting Officer should select the most recent previous history purchases to ensure the greatest reliability of the price comparison.
The Contracting Officer should select previous buys that had identical or similar quantities. When variations exist between quantities being compared, the Contracting Officer should explain how prices are comparable.

Comparison with IGCE

A quoted price may be compared with a reliable, supported, and documented Government estimate when primary analysis techniques have proven inadequate. The Contracting Officer must evaluate the supporting documentation provided by the Customer to determine how the IGCE was derived. The documentation should include a validation of the amount of labor effort required, the type of materials, and any travel or other direct costs.
The Purchase Request estimate can be a valid standard for comparison if the estimate’s origin can be determined and the originator used a reasonable past purchase price. The Customer can also perform a technical analysis of the item being purchased as a basis to establish price reasonableness. Supporting documentation that explains the basis of analysis should be included.

7.2.3 Auxiliary Price Analysis Techniques

When both primary and secondary techniques are insufficient to determine fair and reasonable pricing, the following methods may be used to support the determination in conjunction with one of the other methods previously listed:

Value analysis.
Price breakdowns.
Parametric analysis.

Value analysis. The value analysis technique attempts to develop the intrinsic worth of a product or service. This analysis may help a Contracting Officer justify the price of a sole-source offer or explain differences between past buys and present quotes. To use value analysis, the Contracting Officer will need to obtain additional information from the Customer and/or the Contractor (e.g., intended use, any special manufacturing processes or treatments that would support a higher price, cost of the end item that is inoperable because of a missing part). With the assistance of the Customer and Contractor, he/she must carefully review the Government’s requirement and answer the following questions where applicable: (a) What does the product have to do? (b) What does it cost now? What prices did we pay previously? What does it cost to operate and maintain? (c) Is it part of a larger system or product? What is the cost of the system or product? (d)What is the affect on mission accomplishment without the availability?

Price breakdowns. Questions that the Contracting Officer should ask to obtain price breakdown information include: (a) What does the Contractor pay for the item? (b) What are the components or elements of the Contractor’s pricing? (c) What are the Contractor’s basic labor rates?

Parametric Analysis. Cost Estimating Relationships (CERs) are sometimes used to develop parametric estimates or rough yardstick estimates with which to support a determination that the price is fair and reasonable. A CER is a formula for estimating prices based on the relationship of past prices with one or more product physical/performance characteristic (e.g., dollars per pound or dollars per horsepower). Whenever an item’s price can be related to a value of one or more physical or performance characteristics, the relationship can be used to estimate the price of the same or similar product. When using CERs, the Contracting Officer/Buyer must ask themselves three questions: (a) Has the CER been widely accepted in the marketplace (i.e., by both buyers and sellers)? (b) Does the CER produce reasonable results? (The user has the burden of proving that the rough yardstick produces reasonable estimates.) (c) How accurate is the CER? (The buyer should validate using known product data and prices.)

For a more in-depth discussion of price analysis techniques, see , , and the .

7.3 Evaluation Techniques

Contracting Officers should make purchases in the simplified manner that is most suitable, efficient, and economical based on the circumstances of each acquisition. For acquisitions not expected to exceed --

The Simplified Acquisition Threshold (SAT) for other than commercial items, use any appropriate combination of the procedures in , , and .
$5.5 million ($11 million for acquisitions as described in (e)), for commercial items, use any appropriate combination of the procedures in , , , and .

7.3.1 Streamlined Evaluation Procedures per FAR 13.106

The following are not required and should generally not be used for procurements less than or equal to the SAT: formal evaluation plans, establishing a competitive range, conducting discussions, and scoring quotations or offers. For some commercial procurements under the SAT, the Contracting Officer may compete on price alone. Contracting Officers may conduct comparative evaluations of offers.

Evaluation of other factors, such as past performance—

Does not require the creation or existence of a formal data base; and
May be based on information such as the Contracting Officer’s knowledge of and previous experience with the supply or service being acquired, Customer surveys, or other reasonable basis.

Upon receipt of quotations or offers, the Contracting Officer may:

After preliminary consideration of all quotations or offers, identify one that is suitable to the Customer, such as the lowest priced brand-name product, and quickly screen all lower priced quotations or offers based on readily discernible value indicators, such as past performance, warranty conditions, and maintenance availability; or
Where an evaluation is based only on price and past performance, make an award based on whether the lowest priced of the quotations or offers having the highest past performance rating possible represents the best value when compared to any lower priced quotation or offer.

If the Contracting Officer determines that the award decision should be based on evaluation factors tailored to the acquisition, then the evaluation factors must represent the key areas of importance and emphasis to be considered in the award decision and support meaningful comparison and discrimination between and among competing offers. Adjectival ratings should be assigned and defined for each evaluation factor/subfactor. Solicitations are not required to state the relative importance assigned to each evaluation factor and subfactor, nor are they required to include subfactors.

Minimum Order Charges. Occasionally an item can be obtained only from a supplier that quotes a minimum price or quantity that exceeds the price or quantity stated on the Purchase Request. In these circumstances, the buyer should inform the requesting activity of the minimum price or quantity charges and obtain their approval to alter the quantity and obtain additional funds if required. The total evaluated price must include any minimum order or quantity charges.

Packing/Packaging Charges. Quotes should be solicited based on commercial packing and packaging practices unless the requesting activity has indicated on the Purchase Request that special handling is required. If the Quoter includes separate charges for special packing and packaging requirements, the buyer must include those charges in the total evaluated price.

Special Marking Charges. Some Purchase Requests include instructions for special marking requirements (e.g., Department of Navy Seal, special marking, other than commercial bar coding, etc.). If the Quoter includes separate charges for the required marking, the Contracting Officer must include those charges in the total evaluated price.

7.3.2 Source Selection Procedures under FAR 13.5

For more complex requirements, the Contracting Officer may choose to obtain commercial items under with the source selection procedures allowed by in lieu of or in addition to the streamlined evaluation procedures in . In such situations, source selection procedures facilitate selecting the offer representing the best value to the Government. The Contracting Officer should keep in mind that while using evaluation methods allows the greater discretion in award selection, additional regulatory and administrative requirements may need to be satisfied (e.g., establishing a competitive range might subsequently require preaward debriefings).

Per , best value is the expected outcome of an acquisition that, in the Government’s estimation, provides the greatest overall benefit in response to the requirement. The perceived benefit of a higher-priced offer should merit the additional cost or price; rationale for this tradeoff must be documented in the contract file. The FAR allows the Contracting Officer to evaluate factors, in addition to price, to determine best value to the Government. When the Contracting Officer makes the determination to use source selection procedures, and technical factors are considered in selecting best value, the award decision takes one of two approaches:

Lowest Price Technically Acceptable () – This approach is appropriate when best value is expected to result from selection of the technically acceptable offer with the lowest evaluated price. The evaluation factors must be set forth in the solicitation, and award is made on the basis of the lowest evaluated price meeting or exceeding the acceptability standards for non-cost factors. Tradeoffs (among cost and non-cost factors) are not permitted. Proposals or quotations are evaluated for technical acceptability but not ranked using non-cost/price factors.
Tradeoffs () – This approach is appropriate when it may be in the best interest of the Government to consider award to other than the lowest priced Offeror or other than the highest technically rated Offeror. It permits tradeoffs among cost or price and non-cost factors and allows the Government to accept other than the lowest priced proposal or quotation. The perceived benefits of the higher proposal or quotation must merit the additional cost, and the rationale for tradeoffs must be documented in the file in accordance with .

Contracting Officers may make awards using SAP based on factors other than the lowest proposed price. All evaluation factors and significant subfactors that will affect contract award and their relative importance shall be clearly stated in the solicitation; and the solicitation shall state whether all evaluation factors other than cost or price, when combined, are:

Significantly more important than,
Approximately equal to,
Or significantly less important than cost or price.

Examples of factors other than price include, but are not limited to: delivery requirements, Vendor past performance, quality of the product or service to be procured, timeliness, technical capability, and business practices. These factors must be identified in the solicitation with adequate documentation in the contract file to support the inclusion of the factors. The factors should reflect the Government’s specific requirements that are other than price related. The emphasis should be on obtaining the best overall value for the Government, price and all other factors considered. A description of each of the above factors is provided below:

Delivery. The requesting activity may provide instructions via the Purchase Request that delivery is a critical factor in choosing the prospective Contractor. If a requirement is determined to be urgent, the Contracting Officer must identify delivery in the solicitation as a qualifying evaluation factor. Some valid examples of urgency would be situations involving work stoppages or a safety/hazardous condition that would impair the mission of the command. In evaluating quotations for award, the Contracting Officer must evaluate the Contractor’s quoted delivery time along with the price to determine who will receive the eventual award. The Contractor offering the best guaranteed delivery would be awarded the order. The contract file must include documentation supporting the decision to pay an additional amount for expedited or guaranteed delivery.

Past Performance. The Past Performance Information Retrieval System () is the web-enabled, Governmentwide application used by the Federal acquisition community when conducting evaluations and making source selection decisions. Per (a)(2), when evaluating past performance as required for procurements exceeding $1,000,000 (), PPIRS shall be used as a source of past performance information.

Quality. The Contracting Officer may include quality as an evaluation factor in the solicitation. This may entail referencing the purchase description or Performance Work Statement (PWS), identifying critical quality elements that the requested supply or service must meet (e.g., shelf life of the product, maintenance-free operation, education and experience of personnel providing the service). Additionally, this may include an evaluation of past experience with the Contractor to identify the company’s compliance with contract requirements in the past and whether past products or services conformed to the standards of good workmanship.

Timeliness. When using timeliness as a factor in award, the Contracting Officer evaluates the Contractor’s history of on-time delivery. He/she should determine whether the Contractor has consistently adhered to established delivery schedules in the past.

Technical Capability. This factor examines the capability of the Contractor’s offered product (supply or service) to meet the Government’s requirement. When using technical capability as an evaluation factor, the Contracting Officer will need the Customer’s input to determine if the offered supply or service meets the Requiring Activity’s needs. This review may include an examination of product literature, product samples (if requested), technical features, warranty provisions or an evaluation of the type and kind of personnel offered to perform the service.

Business Practices. If the Contracting Officer uses business practices as an evaluation factor, consideration should be given to past experiences with the Contractor (using inputs from Customers and Contracting Officer’s Representatives (CORs) who have previously worked with and have knowledge of the Contractor’s business practices). Site surveys and preaward surveys may be the best source of information on specific business practices affecting the promised supply or service.

7.3.2.1 Source Selection Steps

When using the evaluation procedures under FAR Part 15, formal source selection will occur. The source selection process meets the following objectives:

Select the offer that represents the best value to the Government.
Ensure impartial, equitable, and comprehensive evaluation of each offer.
Document the basis for the selection decision that reflects sound business judgment.

Planning / Scheduling
1.	Contracting Officer and Project Officer review and update Acquisition Plan to ensure the schedule for the evaluation and award process are accurate and have blocked sufficient time for both technical and cost/price evaluation.
2.	Contracting Officer receives offers.
Source Selection Kickoff
3.	The Contracting Officer (with support from CL field Counsel depending on local practice) leads the source selection kickoff meeting to train and brief team members prior to evaluations on the rules and regulations supporting a legal and sound source selection process. (See .)
4.	The Source Selection Team reviews the solicitation and Source Selection Plan (SSP). (See and .)
5.	Source Selection Team members complete a Non-Disclosure Agreement (NDA) (see ) and depending on local procedures, an .
Evaluation / Analysis
6.	Source Selection Evaluation Board (SSEB) (typically three members from the Project Officer, one designated as the Chair) receives copies of offers excluding cost/price information. Technical evaluations commence, at the Contracting Office or alternate location as determined by the Contracting Officer, SSEB prepares the Technical Evaluation Report and provides it to the Contracting Officer.
7.	Simultaneously Past Performance Evaluation Team (PPET) (typically consisting of the Contracting Officer and Specialist) receives copies of offers. Past Performance evaluations commence, including Past Performance Information Retrieval System (PPIRS) assessment retrieval. PPET prepares the PPET Report and provides it to the Contracting Officer.
8.	Simultaneously Cost/Price Analysis Team (C/PAT) (typically consisting of the Contracting Officer and Specialist) receives copies of offers. Cost/price analysis commences. The Contracting Officer may request field pricing assistance.
9.	The Contracting Officer reviews the SSEB Report and the PPET Report in conjunction with the C/PAT analysis results. This integrated assessment reveals whether discussions are necessary and/or further evaluation is required.
Discussion / Business Clearance Memorandum
10.	If discussions are determined necessary, the Contracting Officer establishes a competitive range, documenting the analysis in an approved Prenegotiation Business Clearance Memorandum (BCM). Discussions are held with those Offerors within the competitive range and final revised offers are requested, evaluated, and documented in a Postnegotiation BCM.
11.	If discussions are not necessary, and an award will be made on initial offers, the Contracting Officer documents the analyses and award recommendation in a Pre/Postnegotiation BCM.
Selection / Award
12.	The Contracting Officer, acting as the Source Selection Authority (SSA), selects the most advantageous offer.
13.	The Contracting Officer provides the required notifications and announcements and makes an award (See and ).
Postaward
14.	The Contracting Officer debriefs unsuccessful Offerors with the assistance of the Customer and CL field Counsel (See and ).
15.	The Contracting Officer and Customer may hold a Postaward Conference with the successful Offeror (see ).

The source selection process is complex and detailed. Contracting Office guidelines and instructions concerning source selection information should be strictly followed. See for more information on evaluations pursuant to .

7.3.3 Evaluation Procedures for the Acquisition of Commercial Items

Literature. When technical information is necessary to evaluate quotes, the Contracting Officer should review existing product literature to determine its adequacy for immediate evaluation. If determined adequate, existing product literature may be utilized to evaluate quotations. In any case, Contracting Officers should only request the minimum technical information necessary to perform an adequate evaluation for award.

Quotes. Contracting Officers may authorize Quoters to propose more than one product that will meet the Government’s need. The Contracting Officer must evaluate each product as a separate quotation.

Past Performance. Past performance can be an important element of each evaluation and subsequent award for a commercial item. Contracting Officers should consider past performance data from a wide variety of sources both inside and outside the Government per the policies found in .

7.4 Contractor Responsibility Determination

directs agencies to purchase from Contractors who are responsible. Purchases shall be made from, and contracts shall be awarded to responsible prospective Contractors only. As the procedures for determining Contractor responsibility are the same regardless of acquisition value, Contracting Officers shall follow the procedures outlined in to determine and document Contractor responsibility.

7.5 Evaluation Documentation

Contracting Officers are relied upon to be good stewards of taxpayers’ dollars; they have a fiduciary responsibility on behalf of the Federal Government to make smart contracting decisions in the best interest of the Government. (b) explains:

“No contract shall be entered into unless the Contracting Officer ensures that all requirements of law, executive orders, regulations, and all other applicable procedures, including clearances and approvals, have been met.”

The required evaluation documentation demonstrates fulfillment of statutory and regulatory responsibilities and sets forth business decisions for approval. Further, this documentation provides an audit trail for postaward review, if necessary, and serves as key evidence to support contracting decisions in the case of disputes or higher-level reviews, such as those by the GAO or the DoD Inspector General (IG). The evaluation documentation may also serve as a guide for future negotiations and, for this reason, should be all-inclusive, stand-alone documents, containing all supporting data required to reflect the entire history of the procurement.

For SAP procurements, the Contracting Officer has two instruments to satisfy the evaluation documentation requirements: A streamlined BCM for commercial acquisitions under and a Simplified Acquisition Documentation Record for acquisitions between the micro-purchase threshold and $100,000.

The following matrix lists the SAP evaluation documentation required for different contract actions under .

	Contract Actions	Clearance Documentation Required
Non-Commercial	Micro-purchase threshold to $100K	Simplified Acquisition Documentation Record Using SAP Under
Non-Commercial	Micro-purchase threshold to $1M for Contingency Operations

Commercial	Micro-purchase threshold to $100K	Simplified Acquisition Documentation Record Using SAP Under
	Micro-purchase threshold to $1M for Contingency Operations
	Greater than $100K up to $5.5M (Greater than $1M up to $11M for Contingency Operations)	Streamlined BCM Using SAP Under

7.5.1 Below the SAT: Simplified Acquisition Documentation Record

When procuring items below the SAT under (micro-purchase threshold to $100,000), the Contracting Officer shall document the determination of fair and reasonable pricing in the , but does not have to complete a formal BCM. The Contracting Officer shall also complete the , which documents the business decisions made throughout the procurement process. Both documents should be maintained in the contract file.

7.5.2 Acquisitions Under FAR 13.5: Streamlined Business Clearance Memorandum (BCM)

requires a BCM for all actions exceeding $100,000. When procuring commercial items above $100,000 and under $5.5 million ($11 million for contingency operations) using SAP under , the Contracting Officer may use a streamlined BCM.

The BCM contains all of the requirements of both the Pre- and Postnegotiation clearance documentation and is used when the Contracting Officer makes an award on initial offer(s) or requests authority to establish a competitive range and enter into discussions.

The is used to document information presented during the negotiation process and provide rationale for the negotiated position achieved by the Contracting Officer. It also serves to document any changes between the Prenegotiation Objective and the Postnegotiation Position.

8.0 Award Phase

In the Award phase, the Contracting Officer awards a requirement to the responsive and responsible Contractor. The Award phase of the procurement process is important because it finalizes the Government’s negotiations with the Contractor, resulting in the Government making an offer to the Contractor to provide the required supply or service.

8.1 Preaward Notification

As evaluation techniques are generally only used for simplified acquisitions that are complex or high dollar value (those under the test program), preaward notifications are required only for those simplified acquisitions that have established a competitive range using evaluation procedures.

Whenever evaluation techniques are utilized, the Contracting Officer, prior to contract award, will notify unsuccessful Offerors when their offers are no longer within the competitive range or otherwise eliminated from the competition. This occurs during the Evaluation phase prior to conducting discussions. The Preaward Notices of Exclusion (see ) to these unsuccessful Offerors states the basis for the elimination and that revised offers will not be accepted. For more information see .

For specific information on the preaward notification to unsuccessful Offerors process, see .

8.2 Small Business Notification

For set-aside decisions for actions greater than the Simplified Acquisition Threshold (SAT), a separate preaward notice for small business programs must be sent to each unsuccessful Offeror that submitted an offer in response to the following:

Small business set-aside.
When a small disadvantaged business concern receives a benefit based on its disadvantaged status and is the apparently successful Offeror (see and ).
When using the HUBZone procedures.
When using Service-Disabled Veteran-Owned Small Business (SDVOSB) procedures.

The notice must state the following:

Name and address of the successful Offeror.
Proposal or quotation revisions will not be accepted.
Response is not required unless a basis exists to challenge the small business size status, disadvantaged status, HUBZone status, or SDVOSB status of the successful Offeror.

Challenges must be received by the Contracting Officer by the close of business of the fifth day following receipt of notice. (See (d)(1).)

8.3 Award Procedures

Only Contracting Officers are appointed the authority to sign contracts on behalf of the Government. Bilateral actions – those requiring both the Contractor and Government signatures – require the Contracting Officer to sign after signature by the Contractor. The Contracting Officer must also ensure that the individual signing on behalf of the Contractor is authorized to do so. If the award document includes information that is different from the latest signed proposal, as amended by the Offeror’s written correspondence, both the Offeror and the Contracting Officer must sign the contract award.

The contract is awarded upon completion of final evaluations and approval of the streamlined Business Clearance Memorandum (BCM) for:

Actions exceeding the SAT using either the or the .
Actions less than $100,000 using the and the .

When the Contracting Officer is prepared to make an award to the responsible, responsive Contractor whose quote has been determined to provide a best value solution to the Government, he/she will notify the successful Offeror by furnishing an order. Based on the procurement/contract type, the award should occur via one of the following forms:

SF 1449 Solicitation/Contract/Order for Commercial Items
DD 1155 Order for Supplies or Services

The Contracting Officer shall make purchases in the simplified manner that is most suitable, efficient, and economical based on the circumstances of each acquisition. Simplified acquisitions (other than Unpriced Purchase Orders (UPOs)) shall be issued as firm-fixed price actions unless DON authority has been granted to deviate from this policy.

Establishing a Contract/Order

It is important to understand that a quotation cannot be accepted by the Government to form a binding contract; rather, a contract is established when the supplier accepts the Government’s offer to buy certain supplies or services upon specified terms and conditions. Responses to requests for quotations are quotations, not offers; therefore, issuance by the Government of an order in response to a supplier’s quotation does not establish a contract. The order is an offer by the Government to the supplier to buy certain supplies or services upon specified terms and conditions. A contract is established when the supplier accepts the offer.
Per , the Contracting Officer may ask the supplier to indicate acceptance of an order by notification to the Government, preferably in writing, as appropriate. In other circumstances, the supplier may indicate acceptance by furnishing the supplies or services ordered or by proceeding with the work to the point where substantial performance has occurred. If the Government issues an order resulting from a quotation, the Government may (by written notice to the supplier, at any time before acceptance occurs) withdraw, amend, or cancel its offer. (See for procedures on termination or cancellation of purchase orders.)

Incorporating Quotations by Reference. If incorporating the quotation by reference for commercial items, the order of precedence is stated in (s) as follows:

The schedule of supplies/services.
The Assignments, Disputes, Payments, Invoice, Other Compliances, and Compliance with Laws Unique to Government Contracts paragraphs of this clause.
The clause at .
Addenda to this solicitation or contract, including any license agreements for computer software.
Solicitation provisions if this is a solicitation.
Other paragraphs of this clause.
The SF 1449.
Other documents, exhibits, and attachments.
The Specification.

For commercial items under , the Contracting Officer may choose to incorporate both the quotation and a special order of precedence clause via an addendum to the contract. In those situations, the special clause takes precedence over the standard order of precedence in (s).

8.4 Contract Award Synopsis

Contract actions exceeding $25,000 must be synopsized unless an exception under exists. When a synopsis is not prepared and exceptions do not apply, the Contracting Officer should document the reasons in the contract file.

8.5 Postaward Notification to Unsuccessful Offerors

details the procedure for providing written notification to unsuccessful Offerors. While not required for solicitations using SAP, the Contracting Officer shall furnish notices upon request by unsuccessful Offerors. Only the name of the awardee, the award price (including discount terms), and a brief explanation of the basis for award should be included in the notification.

For orders placed against a Federal Supply Schedule (FSS) contract, a brief explanation of the basis for award shall be provided if an unsuccessful Offeror requests information (only applicable to awards that are based on factors other than price alone). It may be in the USMC’s best interest to provide an unsuccessful FSS Vendor information about the evaluation of the Vendor’s offer (to avoid a potential protest and/or provide the Vendor relevant information that may improve its competitive capabilities for future USMC requirements). A best practice that has been successful on prior FSS acquisitions has been to communicate relevant information regarding the Government’s evaluation of an unsuccessful FSS Vendor’s offer, in writing, when providing notice to a Vendor that it was not the successful Offeror.

8.6 Postaward Debriefings

A Postaward debriefing is a meeting in which the Contracting Officer explains to an Offeror the basis for contract award. Postaward debriefings may be requested by successful and unsuccessful Offerors.

Requests for Debriefings

The Government must receive an Offeror’s written request for debriefing within three days of the Offeror’s receipt of contract award notice. To the maximum extent practicable, the Government should conduct debriefings within five days after receipt of the written request. This is important because the 10-day protest clock (see ) does not begin until the day the Offeror is debriefed.
Whenever evaluation techniques are used and a competitive range is established, an Offeror must be notified if excluded from the competitive range. Such an Offeror who failed to submit a timely request for a preaward debriefing is not entitled to a postaward debriefing; however, Offerors that requested a postaward debriefing in lieu of the preaward debriefing, or whose debriefing was delayed beyond contract award for compelling reasons, also should be debriefed within five days after receipt of the written request. provides additional information on the following procedures: preparing for, conducting, and documenting debriefings (including those under FSS contracts).

8.7 Assignment of Contract Administration Functions

8.7.1 Defense Contract Management Agency (DCMA)

The Contracting Officer may delegate contract administration functions to the Defense Contract Management Agency (DCMA). A complete list of contract administration functions can be found at and .

DCMA has a “keep it simple” policy for delegations. Filling in Block 6 of the SF 26 or Block 16 of the SF 1449 automatically gives DCMA a blanket delegation to perform the services designated in (a). There are some functions, however, listed in (b) that require further authorization. A good practice is to request that the Administrative Contracting Officer (ACO) acknowledge acceptance or denial of the delegation via e-mail or official correspondence.

MCFCS contracts are typically not assigned to DCMA for contract administration when performance occurs on a Base, Post, Camp, or Station. Situations may exist where the Contracting Officer delegates specific partial contract administration functions to DCMA, such as:

Administration of subcontracting plans.
Inspection at origin at Contractor plants for which DCMA has cognizance.

Additionally, the Contracting Officer may request assistance from DCMA in reviewing, evaluating, and approving small business master subcontracting plans or evaluating subcontracting plans for commercial items. The Contracting Officer can locate the appropriate contract administration office via the Federal Directory of Contract Administration Services Components website.

8.7.2 Contracting Officer’s Representative (COR) Assignment

Per , the Contracting Officer may designate a Contracting Officer’s Representative (COR) when the contract requires monitoring and surveillance efforts beyond what the Contracting Officer is reasonably able to provide. The COR provides technical direction/clarification and guidance with respect to the contract Specification or Statement of Work (SOW). The COR’s contract administration duties can be simple or complex and time-consuming depending on the type of contract, Contractor performance, and the nature of the work.

If the Contracting Officer determines that a need exists, a COR shall be designated for a contract when:

The Government must clarify, define, or give technical direction on a contract’s Specification or SOW (e.g., for engineering services);
Task Orders (TOs) and/or Delivery Orders (DOs) are to be issued against a cost-reimbursement (time and material, labor-hour, or cost plus fee) Indefinite Delivery Contract (IDC);
The contract requires unusual monitoring and surveillance efforts beyond what the Contracting Officer is reasonably able to provide (e.g., mess attendants, Contractor support activities, and commercial activities).

For contract actions for services awarded by a DoD Contracting Officer, a properly trained COR shall be designated in writing by the Contracting Officer before contract performance begins. In addition, when other Federal agencies award service contracts on behalf of DoD (e.g., pursuant to the Economy Act), Contracting Officers must acknowledge in the Non–Marine Corps/Non-DoD Determination and Findings (D&F) that a properly trained COR shall be designated prior to the commencement of contract performance. (See .) Per (2)(i), employees of foreign governments assigned to multi-national Joint Project Offices are authorized to serve as CORs.

Training

Prior to the designation of a COR, the Contracting Officer should take into consideration the ability, training, and experience of COR designees, and must assure that designees are appropriately qualified to act as authorized representatives of the Contracting Officer. Mandatory training is required for the COR before performing contract administration duties and a refresher course is required every three years thereafter.
For mandatory online initial COR Training (DAU Continuous Learning Center (CLC) 106 – COR with a Mission Focus) and COR Refresher training (a combination of CLC Training totaling a minimum of eight Continuous Learning Points (CLPs) as specified by the appointing Contracting Officer), visit the . See also .
At their discretion, Contracting Officers may also choose to require the COR to obtain additional COR training to supplement the aforementioned minimal mandatory COR training. Additional classroom-based Basic COR Training and COR Refresher Training may be found at the and the - . Also, multiple commercial Vendors offer classroom-based COR training.

COR Nomination and Designation

COR designees must have the requisite technical experience to provide the technical expertise necessary for performance of the COR function. The Project Office Commander or designee nominates a potential COR candidate and provides the along with a copy of the certificate of COR training to the Contracting Officer for consideration.
The Contracting Officer considers the candidate by reviewing their training and experience, and issues a resultant letter of designation (see ). Designations will define the scope and limitations of the COR’s authority as well as the extent and method of contract monitoring appropriate to the particular contract involved. CORs are responsible to the Contracting Officer for those actions delegated by the Contracting Officer as specifically addressed in the Designation Letter.
In the performance of COR duties, the COR does not have the authority to take any action, either directly or indirectly, expressed or implied, that could change the price/cost or fee, quantity, quality, scope, delivery schedule, labor mix, or other terms and conditions of the contract and/or DO/TO. Only the Contracting Officer has the authority to make such changes. Any authority delegated to a COR is not redelegable.
If any changes to the scope and limitation of the COR’s authority occur during the life of the contract, the Contracting Officer must either issue a new Designation Letter or amend the existing one. If one COR is to act for the Contracting Officer on more than one contract and the scope and limitations of authority are the same for all contracts, then one designation may be issued which references each contract under the designation.
Unless the designation contains other provisions for automatic termination, the designation must be effective, unless sooner revoked, until the COR is reassigned or the individual’s employment is terminated. Revocation of a COR designation may be effected at any time by the designation authority, or higher authority, or any successor to either. Revocation must be made in writing.
A good practice is to request that the COR acknowledge receipt and acceptance of the COR Designation Letter by requiring that the COR sign the Designation Letter and return the original to the Contracting Officer. The Nomination and Designation Letters should be retained in the contract file, along with any supporting documentation (such as training certificates).

Alternate COR

An Alternate COR (ACOR) may also be assigned to a contract. An ACOR may be designated to perform the COR functions when the COR is unavailable to perform those duties (e.g., long-term medical leave, vacation, etc.) or in instances where contract performance is occurring simultaneously in multiple physical locations or in support of high dollar, complex procurements. The ACOR can be appointed at the time of contract award as well, or may be appointed at a later date. The Nomination and Designation Letters for the Alternate COR (see and ), as well as the contract, must expressly state that the Alternate COR shall act only in the absence of the primary COR. The nomination and designation criteria, process, and training requirements are identical for Primary and Alternate CORs.
The Contracting Officer should clearly state the COR contact information in the contract, along with his or her responsibilities, authority, and limitations. Once an ACOR is designated, the contract must be modified to include the ACOR contact information, duties, responsibilities, and limitations. The duties and responsibilities of the COR are set forth in and also .

The following table highlights the requisites for COR eligibility, delegation, and responsibilities:

COR Eligibility, Delegation, and Responsibilities
Requisites for COR eligibility	Be a Government employee (unless (2)(i) applies)
	Be qualified by formal COR training and have technical experience commensurate with the responsibilities to be delegated. For online COR (DAU CLC 106 – COR with a Mission Focus) and COR Refresher Training (a combination of CLC Training totaling a minimum of 8 Continuous Learning Points (CLPs)) as specified by the appointing Contracting Officer, visit the .
“DOs” for COR Delegation	Do obtain written designation, with copies furnished to the Contractor () and DCMA, if assigned.
	Do include the following in the Designation Letter: The extent of the COR's authority to act on behalf of the Contracting Officer as well as the method of contract monitoring appropriate to the particular contractual effort. Limitations on the COR's authority. Period covered by the designation. A statement that the authority is not redelegable. A statement that the COR may be personally liable for unauthorized acts/commitments.
	Do complete acknowledgment/acceptance portion of the COR Designation Letter, and sign and return the original to the Contracting Officer.
“DO NOTs” for COR Delegation	Do Not delegate responsibility to perform functions at a Contractor's location that have been assigned to DCMA for contract administration.
	Do Not delegate authority to make any commitments or changes that affect price, quality, quantity, delivery, or other terms and conditions of the contract. Refer to G1 below.
COR Responsibilities & Duties. Refer to G2 below.	Maintain currency of training through attendance at mandatory refresher training sessions at least once every three years.
	Maintain a file for each contract assigned that includes, at a minimum, the following: A copy of the COR Designation Letter. Documentation of actions taken in accordance with their delegation of authority. Quality Assurance Surveillance Plan (QASP) and records of its implementation, use, and results.
	Provide surveillance and oversight to include the following: Services performed. Overall administration of the contract. Receipt and acceptance of contract deliverables. Verifying the accuracy of contract invoices. Monitoring contract expenditures.

Specific to COR limitations, a COR SHALL NOT:

Make any agreement with the Contractor requiring the obligation of public funds (sign contracts, DOs/TOs, POs, or modify a contract or order, or in any way obligate payment of funds by the Government);
Encourage the Contractor by words, actions, or a failure to act to undertake new work or an extension of existing work beyond the contract period; interfere with the Contractor's performance by “supervising” Contractor employees or otherwise directing their work efforts;
Authorize a Contractor to obtain property for use under a contract;
Allow Government property accountable under one contract to be used in the performance of another contract;
Issue instructions to the Contractor to start or stop work;
Order or accept goods or services not expressly required by the contract; discuss acquisition plans or provide any advance information that might give one Contractor an advantage over another Contractor in forthcoming procurements, and re-delegate COR authority or responsibilities.

For further details on COR responsibilities and duties, see .

The designation of a COR remains in effect throughout the life of the contract unless sooner revoked by the Contracting Officer, automatically revoked upon separation of the COR from Government service, or COR reassignment. The Contracting Officer should stress to the COR’s supervisor that they be notified immediately in writing if the designated COR is transferred, reassigned, will be absent for an extended period, or is otherwise unable to fulfill the responsibilities of the position. Termination of a COR follows the same procedures as designating a COR: it is accomplished by formal letter forwarded to the applicable parties, and receipt acknowledged. The COR Revocation Letter shall (see ) be distributed to the Contractor, and DCMA, if assigned, and retained in the contract file.

8.8 Contract/Modification/Order Distribution

Per and , the Contracting Officer is responsible for distributing copies of contracts, contract modifications, or orders. specifies that distribution must take place within 10 working days of execution. specifies that electronic posting to Electronic Document Access – Next Generation (EDA-NG) must take place within two working days of execution. This electronic posting constitutes the required distribution with respect to required copies for the Defense Finance and Accounting Service (DFAS), the DCMA, and the Defense Contract Audit Agency (DCAA).

The Contracting Officer must distribute copies of all contracts, modifications, and orders to the following (at a minimum):

Contracting Officer (retains original)
Contractor
Paying Office (e.g., DFAS)
Customer
Accounting/Finance Office whose funds are obligated
ACO (DCMA), as applicable
DCAA Auditors, as applicable
Security Office, as applicable
COR, as applicable

With few exceptions relative to contingency contracting, Contracting Officers use the Standard Procurement System (SPS) to award contracts, modifications, and orders. The parts of the contractual instrument that historically would have been provided to a recipient in paper format should now be made available electronically. Attachments to the award, for instance, which cannot be uploaded into SPS with the contract award, must be distributed electronically, preferably via email, to the maximum extent practicable.

The Contracting Officer obligates the Government via his or her signature on the contract document. The award information flows from SPS electronically to the buying activity’s financial system of record, the Standard Accounting, Budgeting, and Reporting System (SABRS). If SPS is not used, the Contracting Officer should ensure that the contract award is distributed to the Accounting/Finance Office for timely recording in SABRS (or appropriate financial system of record).

8.9 Electronic Access and Reporting of Contract Actions

8.9.1 Electronic Document Access – Next Generation (EDA-NG)

EDA-NG is a secure, web-based system that provides storage and retrieval of acquisition-related documents such as contracts, contract modifications, personal property and freight Government Bills of Lading (GBLs), vouchers, CDRs (1716s), summaries of Voucher Line Data (110 reports), and Material Acceptance Payable Reports (MAAPRS).

Once a contract action is awarded in SPS, a copy or image of the action is viewable in EDA-NG via an interface between SPS and EDA-NG. This capability replaces the manual process of distributing paper copies by providing a single, read-only electronic file cabinet accessible to Contracting Officers/Specialists who have registered on the . Users register by functional area or discipline.

Within the MCFCS, a primary and alternate Electronic Business Point of Contact (EB-POC) are identified at each MCFCS office; these EB-POCs are responsible for performing EDA-NG system administration functions. Should the primary or alternate EB-POC not be available at the site or if personnel change, the action is elevated to HQMC, I&L (Contracts) for action. In addition to registering within the EDA, USMC employees, as well as support Contractors, must complete a System Authorization Access Request (SAAR) using (or equivalent) and sign and submit to their EB-POCs upon request. Detailed EDA training materials may be accessed at the . See also the .

EDA-NG interfaces with Wide Area Workflow (WAWF), providing automated upload of key contract data elements to pre-populate invoices.

8.9.2 Federal Procurement Data System – Next Generation (FPDS-NG)

Reporting contract actions is a requirement for all DOD Contracting Offices. As of FY 07, procurement reports are submitted to the Federal Procurement Data System – Next Generation (FPDS-NG), which generates a Contract Action Report (CAR) that replaces the DD 350/DD 1057 reports created by the legacy system, Procurement Management Reporting System (PMRS).

FPDS-NG is a centralized web-based system that is primarily used for machine-to-machine communication of contractual data but can be used manually for such situations where regular internet access is not available (essentially contingency operations). When making an award, the Contract Specialist prepares the awarding contract in SPS and completes the CAR in FPDS-NG. The CAR resides in FPDS and all that is saved in SPS is a link the the report.

Besides the benefit of eliminating redundant systems, FPDS-NG is important to the DoD because it provides a basic audit trail for contract reporting, spend analysis, strategic sourcing, Congressional reporting, financial accountability, and detailed self-service data analysis. FPDS-NG also provides important socio-economic information about how the Government is performing with regard to allocating contracting opportunities to small and disadvantaged businesses. This system acts in a real-time environment, which enables agencies, lawmakers, and the general public visibility into unclassified procurement activity within the Federal Government.

FPDS-NG collects and stores data related to all contract actions, interfaces with the CCR to obtain primary source of vendor validation, interfaces with SPS to allow for near real time updates, and allows for Government and public users to run an array of standard, semi-configurable online reports as well as more advanced ad hoc queries.

As explained in , reporting of this contract information provides the following:

A basis for recurring and special reports to the President, the Congress, the Government Accountability Office, Federal executive agencies, and the general public.
A means of measuring and assessing the impact of Federal contracting on the Nation’s economy and the extent to which Small Business, Veteran-Owned Small Business, SDVOSB, HUBZone Small Business, Small Disadvantaged Business, and Women-Owned Small Business Concerns are sharing in Federal contracts.
Information for other policy and management control purposes, and for public access.

As required by (b), contract actions that obligate or deobligate amounts exceeding the micro-purchase threshold and modifications to those actions regardless of dollar value (i.e. including actions resulting in $0.00) must be reported in FPDS, except as provided in (c).

defines “Contracting Action” as any action related to the purchasing, renting, or leasing of supplies, services, or construction, including, but not limited to, the following:

Definitive contracts, including notices of award.
Letter contracts.
Purchase orders.
Purchases made using the Governmentwide Commercial Purchase Card (GCPC).
Actions for purchase of land or rental or lease of real property.
Orders under existing contracts or agreements, e.g.—

Orders against basic ordering agreements, including service orders issued on DD Form 1164, Service Order for Personal Property, by installation transportation offices;
Calls against Blanket Purchase Agreements (BPAs);
Job orders;
Task Orders (TOs);
Delivery Order (DOs);
Communication services authorizations; and
Notices of termination or cancellation.

Contract modifications, e.g.—

Change orders;
Supplemental agreements;
Funding actions; and
Option exercises.

Contract actions do not include grants, cooperative agreements, or training authorizations. identifies additional actions that also must be reported by Contracting Officers.

Zero Dollar Values and IDIQ Basic Awards in FPDS-NG: Contract actions resulting in $0.00 are also required to be reported in FPDS-NG. The first delivery/task orders on IDIQs are to be placed concurrently with the basic contract award and reported accordingly. No minimum amounts can be obligated on the basic award of an IDIQ contract.

Visit the website. FPDS-NG Training is found on the . For helpful tips and an overview of the DoD transition to FPDS-NG, see .

8.10 Methods of Awarding Simplified Acquisitions

Any of the methods provided in , , and are acceptable for use in the award of a simplified acquisition. Contracting Officers should use the method most suitable, efficient, and economical for individual procurements. Following is a detailed discussion of the methods of procurement first listed in : GCPC, Purchase Orders (POs), Unpriced Purchase Orders (UPOs), BPAs and BPA Calls, DOs/TO issued against Indefinite Delivery Contracts (IDCs), DOs/TOs issued against Multiple Award Contracts (MACs), SF 44, and Imprest Funds.

8.10.1 Governmentwide Commercial Purchase Card (GCPC)

The GCPC shall be used to purchase or pay for all supplies and services at or below the micro-purchase threshold ($3,000 for supplies, $2,500 for services), unless a written determination by a Senior Executive Service (SES), Flag or General Officer is provided in the contract file. For those MCFCS activities that do not have a resident General or Flag Officer or SES, delegation of this authority to the level of the senior local commander or director is permitted. Use of the GCPC is mandatory for SAP purchases that do not exceed the micro-purchase threshold because it reduces costly administrative functions associated with POs, BPAs, and other simplified acquisitions methods. Some of the benefits of GCPC use are reduced paperwork, prompt receipt of items, reduced number of invoices, and improved management information. Refer to the for more information.

8.10.2 Purchase Orders (POs)

A PO is awarded as a result of a quotation; it is an offer by the Government to buy certain supplies and services per the specific terms and conditions contained in the order. A PO becomes a binding contract upon acceptance by the Vendor, either by substantial performance or evidence of intent to perform, or by written acceptance of the order (see ).

When the Contracting Officer determines that a binding contract between the parties before the Contractor undertakes performance is required, the Contracting Officer shall require written acceptance of the PO. When written acceptance is requested and obtained, the PO becomes a bilateral document (signed and approved by both parties). With the exception of UPOs, all POs will be issued as Firm Fixed Price (FFP) orders. POs may be issued up to the SAT (up to $250,000 to support a contingency operation, or up to $5.5 million when utilizing ). A PO may never be issued in excess of a Contracting Officer’s specific delegation of authority.

There are two types of POs:

Unilateral POs: The most common type issued. The Contracting Officer signs a PO and sends it to the Vendor for acceptance. The Government’s offer is accepted when the Vendor delivers, performs, or exhibits an intention to perform.
Bilateral POs: Signed by both the Contracting Officer and the Vendor. The Government’s offer is accepted when the Vendor signs the PO, creating a legally binding contract requiring the Vendor to perform per the terms and conditions of the contract. The advantage of a bilateral PO is that it provides legal rights to the Government in the event the Vendor fails to perform.

Bilateral POs are mandatory in the following situations:

The PO contains a Government Furnished Property (GFP) clause.
The PO is for mortuary services.
The PO is for classified acquisitions when the purchase is made within the U.S., its possessions, and Puerto Rico, and where a DD 254 Contract Security Classification Specification is incorporated into the PO.
When issuing an Indefinite Delivery PO (IDPO).
The PO includes an Option provision.
The Contracting Officer makes the decision to use a PO based on the Government’s best interest.

Issuing Purchase Orders. POs may be issued on the SF 1449, Solicitation/Contract/Order for Commercial Items, (required for commercial awards over SAT) or the DD 1155, Order for Supplies or Services. Also see as well as and , Forms, for more information.

Issuing Purchase Orders with Options. When Options exist, the PO shall specify limits on the purchase of additional supplies or services or the overall duration of the term of the order including any extension. Orders shall state the period of Option exercise, which should provide adequate lead-time to the Contractor, ensuring continuous production. Unless otherwise approved, the total of the basic and Option periods shall not exceed five years for supplies and services. If mentioned in the solicitation, POs may express Options for increased quantities of supplies or services and/or may express extensions of the term of the contract. Note: The Option exercise period may extend beyond contract completion for service contracts. This is necessary for situations when exercise of the Option would result in the obligation of funds that are no longer available in the fiscal year in which the contract would otherwise be completed.

Issuing Bilateral POs.

The Contracting Officer may or may not choose to award using the same SF 1449 that was issued as a written solicitation. If the Contracting Officer uses the same SF 1449 that was previously signed by both parties as a solicitation, he/she must make all applicable changes to terms and conditions, designate the action as an “award,” and send the form back to the Contractor for signature. , Pricing of Contract Modifications, should be used in all bilateral POs. When oral solicitations were issued for commercial items per or or when a Combined Synopsis/Solicitation was used, award may be made on SF 1449.
When issuing a bilateral PO using the DD 1155, the Contracting Officer should fill in all blocks as applicable and send it to the Contractor for signature.

Terms and Conditions. Where market research has determined that the requirement is not a commercial item, the Contracting Officer should include those terms and conditions found in . Where market research has determined that the requirement is a commercial item, the Contracting Officer should include those terms and conditions found in . Unless otherwise directed, clauses appropriate to the PO should be incorporated by reference. Clauses that are required for all other than commercial POs may be found in . The following clauses may be used in POs, as applicable:

– Delivery of Excess Quantities. This clause may be incorporated by reference and should be used in all POs for supplies. (POs for commercial items may be modified to include this clause.) This clause provides that if the Contractor delivers a quantity of supplies in excess of that specified in the order (unless within allowable variation, if any) the Government will keep such excess supplies up to $250 in value without repaying the Contractor. The clause states that quantities in excess of $250 will, at the option of the Government, be returned to the Contractor at the expense of the Contractor or retained and paid for by the Government at the contract price.
– Material Requirements. This clause applies when the solicitation/order for supplies requires the use of new material and for any services that may involve the incidental furnishing of parts.
– Invoices. This clause is required to be included in POs that authorize advance payments for subscriptions or other charges for newspapers, magazines, periodicals or other publications (i.e., any publication printed, microfilmed, photocopied or magnetically or otherwise recorded for auditory or visual usage).
provides additional clauses specific to POs that may be used. One such type of clause is Government Furnished Property (GFP) clauses. GFP is anything owned by the Government and furnished to a Contractor for repair, consumption, modification, or study. When GFP is furnished to the Contractor, the buyer must determine if a Government Property Clause is required, and if so, what Government Property Clause to use. When a Government Property Clause is used, the eventual order must be issued as a bilateral PO.
When the cost of GFP to be repaired does not exceed the SAT, POs for property repair need not include a Government Property Clause. Government Property Clauses may be used whenever the Contracting Officer considers them appropriate. Refer to for applicable Government Property Clauses.

, Assignment of Claims must be included in POs for other than commercial items where it is anticipated that a Contractor will assign payments to a bank, trust company, or other financial institution. A contract must be in existence at the time an assignment is executed. If the Contracting Officer receives a notice of an Assignment of Claim under a Unilateral PO (where the PO is $1,000 or more and delivery has not been made), the Contracting Officer should return the notice of assignment to the financing institution with a letter stating that assignment cannot be made if the payments remaining are for less than $1,000. If remaining payments are for $1,000 or more, the Contracting Officer should modify the Unilateral PO and include the Assignment of Claims clause, advising the Contractor that if it executes and returns the amendment to the original order (the SF 30), a valid assignment may be executed. A copy of the signed modification will be sent to the paying office. (Note: For suspected violations of the Assignment of Claims Act, the Contracting Officer shall report to the CL field Counsel office supporting the Contracting Office.)

Contracting Officers do not have the authority to develop local clauses without appropriate approval; only clauses in the FAR, DFARS, NMCARS, and those issued or approved by ADC, I&L (Contracts) may be utilized. If additional instructions are required, guidance may be included in the Performance Work Statement (PWS) or schedule of supplies and services.

Oral Orders followed by Confirming Orders. An oral order followed by a confirming order is a written PO issued to confirm an oral order that was placed by or on behalf of the Contracting Officer. Generally, these are issued by individuals who do not have contracting authority to award a requirement and require Contracting Officer approval prior to providing the Contractor with a PO number. Oral orders followed by confirming orders may only be used when all of the following conditions are met:

This type of order is acceptable to the supplier.
The Contracting Officer approves use of the oral order prior to placement.
The order does not require written acceptance by the supplier.
The order is for standard, readily-available commercial services.
The purchasing activity retains all administrative functions.

All oral orders must provide the following information:

PO number.
Item being procured, quantity, and price.
Date and place of delivery.
Free on Board (FOB) terms.
Discount terms.
Shipping address.
Names of Customer and authorizing Contracting Officer.
A statement that the oral order is subject to all terms and conditions of the subsequent written order.

Confirming orders placed subsequent to oral orders should be prepared as any other PO and be marked “CONFIRMING VERBAL ORDER ON XX/XX/XX – DO NOT DUPLICATE.” The confirming order must be distributed within 10 days of oral order placement or prior to delivery, whichever is earlier.

8.10.3 Unpriced Purchase Orders (UPOs)

An Unpriced Purchase Order (UPO) is one for supplies or services for which a firm price cannot be established at the time the order is placed. Use of UPOs is discretionary on the part of the Contracting Officer; he/she should exercise care and judgment in selection of Contractors to receive UPOs. Prior to utilization of a UPO, the Contracting Officer should determine the impracticability of soliciting firm prices and reliability of any information supporting the price reasonableness determination of the monetary Not-to-Exceed (NTE) limitation established for the UPO.

A UPO may only be used when the Contracting Officer has determined that one of the following conditions apply:

The UPO will not exceed the SAT.
It is impractical to obtain pricing in advance.
An unpriced item is available from only one source and the cost cannot be readily established.
Prices are known to be competitive but exact prices are unknown (e.g., miscellaneous repair parts, maintenance agreements).
Requirement is for repairs requiring disassembly to determine the nature and extent of repairs.

UPOs are most commonly used for repairs. In some cases, it may be necessary to issue a PO for a Vendor to tear down and inspect equipment before a quote can be given for repair (commonly referred to as “teardown and quote”).

It is imperative that a realistic monetary limitation or NTE dollar amount be established at order issuance by the Contracting Officer through correspondence with the Customer and Contractor. The NTE may be placed on the total UPO or for each unpriced line item where the order holds both priced and unpriced line items. The NTE shall not be exceeded by the Contractor and shall be subject to adjustment (downward unless Contracting Officer determines otherwise) when the firm price is established. In order to determine a realistic monetary limitation, the Contracting Officer should ascertain as much information as possible from the Customer and Contractor on possible costs that will be included in the final price. The contract file should be documented with the basis for the established NTE price.

Clause requirements. , Notice to Supplier (APR 1984), must be included in all UPOs. This clause notifies the Contractor that a firm order exists only if the price does not exceed the maximum line item or total price in the Schedule. It advises the Contractor that if performance cannot be accomplished per the order, to withhold performance and notify the Contracting Officer immediately. Therefore, the Contractor cannot exceed the established NTE price in a UPO without first notifying and obtaining approval from the issuing Contracting Officer.

Modification. If the Contractor advises that performance per the specifications of the order is impossible (e.g., it will cost more money to complete repairs), the Contracting Officer has the option of canceling the order or modifying it to increase the price. If the UPO is canceled, the Government may be responsible for costs incurred prior to the date of order cancellation. If the UPO is modified, the Contracting Officer must determine that any additional cost above the initially estimated NTE amount is fair and reasonable; and he/she must document the determination in the contract file, based on information provided by both the Contractor and the Requiring Activity. When modifying the order, the Contracting Officer should attempt to negotiate a firm fixed price and incorporate the fixed-price in the modification. UPOs need not be modified to establish a fixed price that is less than the original NTE price of the order.

Alternative to UPOs. An alternative method to using UPOs is issuing one firm fixed PO for tear down, which should include that the Contractor provide a firm fixed quotation for final repair. The Contracting Officer can then issue a firm fixed priced PO for the repair based on the Contractor’s quotation.

UPOs typically do not fit the requirements for commercial item procedures. UPOs will generally be issued on the DD 1155 and must contain , Notice to Supplier.
Monitoring of UPOs. All activities issuing UPOs should develop a process to monitor these orders. This process should include procedures to ensure timely pricing of orders and that prices paid are fair and reasonable. Procedures that will assist activities in this area include:

Follow-up/Record of Status. The Contracting Officer should follow up on each UPO to ensure timely pricing. To accomplish this, a suitable local record of UPOs should be maintained to identify any outstanding UPOs not processed for payment. The record should show the order number and date, name of the Contractor, the estimated NTE amount, and date follow-up was performed, as appropriate. A log or other type of filing method that would include issued copies of UPOs are acceptable methods of maintaining these records.
Review of Billing Prices. The Contracting Officer should review billing prices semiannually to provide assurance that billed prices represent the fair value of the items purchased.

8.10.4 Blanket Purchase Agreements (BPAs) and BPA Calls

Blanket Purchase Agreements (BPAs) are individual charge accounts to cover recurring requirements in the same general category. The terms and conditions of any transactions are established by the BPA and calls are placed against the BPA by individuals authorized by the Contracting Officer. BPAs are typically used when a unit has a repetitive need for supplies or services that cannot be predicted in advance. BPAs eliminate the need to issue individual POs when recurring requirements of the same general category are known. Payment is not made for every purchase; rather invoicing occurs regularly (at least monthly).

Note of caution: It is difficult to place BPA orders in SPS; when possible, it may benefit the Contracting Officer to use a different simplified acquisition method.

The BPA is administratively efficient because a) oral (not written) calls are placed, and b) invoices are paid regularly rather than for each transaction.

Single vs. Multiple BPAs

Single BPA. Generally a single BPA should be established when the Contracting Officer can define tasks to be ordered under the BPA and establish a firm fixed price or ceiling price for individual tasks or services to be ordered. When this occurs, authorized users may place the order directly under the established BPA when the need for services arises.
Multiple BPAs. When the Contracting Officer determines multiple BPAs are necessary to meet requirements, he/she should determine which Contractors meet any technical qualifications before establishing the BPAs.

Establishing BPAs. >A warranted Contracting Officer establishes the BPA. Prior to doing so, the Contracting Officer should discuss terms of the agreement with the Contractor, including invoicing procedures, required terms and conditions, and special requirements. To the maximum extent practicable, BPAs for items of the same type should be established at the same time (with more than one supplier), in order to meet competitive requirements. In the instance of a single-source BPA, the Contracting Officer must document reasons why the BPA was issued to only one source. Single-source BPAs are still subject to other SAP requirements (e.g., small business consideration and fair and reasonable price determination). Further, single-source BPAs must be regularly reviewed to verify the reason for only one source and document efforts to obtain competition. BPAs for commercial items may be prepared and issued on the SF 1449, Solicitation/Contract/Order for Commercial Items or on the DD 1155, Order for Supplies or Services.

Numbering BPAs. As prescribed in , BPAs are assigned a 13 position number with an A in the ninth position (e.g., N00023-99-A-0001). The number assigned will remain in effect for the life of the agreement except that the seventh and eighth positions may be administratively modified to coincide with the current Fiscal Year when considered necessary by the Contracting Officer.

Terms and Conditions

Each BPA should include the following terms and conditions, per :

Description of the agreement.
Obligation of the Government.
Pricing – statement that the prices will be low or lower than those charged to the Contractor’s most favored Customer.
Purchasing limitation – calls will not exceed the SAT (or $5.5 million using procedures under ).
Authorized callers.
Delivery tickets.
Place of delivery or shipment.
Method of invoicing and billing period (at least once monthly).
Use of fast pay procedures.
Use of unpriced calls.
Provisions and Clauses.

The BPA is not generally issued with any accounting data. There is no obligation on the Government to order against the BPA and likewise no obligation on the Vendor to accept any calls. Until the work is agreed upon by the Vendor against the BPA, a contract does not exist. Contracting Officers should establish BPAs that require the GCPC as a method of payment for BPA calls to the maximum extent practicable.
The BPA should include the requirement that all shipments be accompanied by a delivery ticket, containing the following:

Name of supplier.
BPA number.
Date of call.
Call number.
Itemized list of supplies or services.
Quantity, price, extended price.
Date of delivery/shipment.

Authorized Callers. Authorized individuals within the contracting office that established the BPA can place BPA calls. In addition, the Contracting Officer who issued the BPA may authorize other activities that have been granted appropriate authority to place calls under his/her BPA. All activities authorized to place calls under the BPA(s) of another command must submit to the issuing contracting office a list of individuals who have been appointed to make calls (including the dollar limitation per person/call). This may include a list of GCPC Cardholders authorized to place calls or use their cards as a method of payment for otherwise properly issued calls. A list of authorized callers should be maintained by both the issuing Contracting Officer and the activity placing the calls.

Placing BPA Calls.

When placing a BPA call, the Contracting Officer should identify him/herself to the supplier and provide the following information:

BPA number and call number.
Items ordered.
Unit price, total price, established by the BPA, if applicable.
Point of contact.
Time and place of delivery.

BPA call records shall be maintained to include the following:

BPA number.
Call number.
Date of call.
Items or services ordered.
Date of required delivery.
Accounting and appropriations data.
Quantity.
Unit, extended and total price.
Signature of person making the call (waived if approved automated system is used).

See .

BPA Invoices / Payments

The Vendor must submit an invoice directly to the Comptroller on an at-least-monthly basis. The Contracting Officer must obtain agreement from the Vendor on the method of invoicing to be used and the Vendor’s invoicing (billing) period before establishing a BPA. The three methods of invoicing are:

Summary: Lists individual ticket numbers, each call number placed under the BPA, amounts, and total amount due. If used, must contain delivery tickets covered and their dollar value, and delivery tickets or sales slips supported with signature indicating the materials have been received.
Itemized: Items are listed by applicable delivery ticket and number.
Individual: An invoice is submitted for each delivery

The Contracting Officer (or designated representative) must submit a copy of each sales slip or delivery ticket with the monthly call sheet to the Comptroller for obligation and receipt purposes when hard copies are used. When using electronic generated forms, electronic call sheets without delivery or sales slips can be submitted.

BPA Reviews

The Contracting Officer who entered into the BPA is required to review each BPA annually and update as necessary. For BPAs, this review is considered accomplished when the BPA is renewed. At that time, the Contracting Officer should consider changes in market conditions, which may have an effect on the BPA (e.g., pricing and new suppliers of the class of items). If necessary, the Contracting Officer should establish additional BPAs for similar commodities and ensure reissued BPAs are adequately updated (see also ).
The review should ensure that:

Calls are rotated among qualified suppliers.
Authorized callers have not exceeded their call authority.
BPA call logs are properly maintained.
Invoices are properly supported and submitted on time for payment.
Requirements are not “split” in order to permit purchasing within caller's authority.

The Contracting Officer shall maintain evidence of these reviews.

8.10.5 Indefinite Delivery Contracts (IDC) and Delivery/Task Orders

Indefinite Delivery Contracts (IDCs) allow the acquisition of supplies and/or services when the exact times and/or exact quantities of future deliveries are not known at the time of contract award. IDCs are also known as Delivery Order, Task Order, or “D-type” contracts. Examples of IDC contracts include Indefinite-Delivery/Indefinite-Quantity (IDIQ), Indefinite-Delivery/Definite-Quantity, and Requirements contracts. IDC contracts may be single or Multiple Award Contracts (MACs). Delivery/Task Orders may be Fixed Price (FP), Cost Reimbursement (CR), Time-and-Materials (T&M), labor-hour, or some combination of these arrangements as stated in the contract. (See .)

The work statement included in a Contract details the programs and projects under which supplies or services may be provided/performed, but the specifics of the supplies or services frequently require further amplification by means of issuance of DOs and TOs. defines a DO as an “order for supplies placed against an established contract or with Government sources.” A TO is essentially the same as a DO, but for services as opposed to supplies.

DO/TOs under IDCs may be issued on the SF 1449, Solicitation/Contract/Order for Commercial Items or on the DD 1155, Order for Supplies or Services. As all the basic terms and conditions are included in the basic contract, it is usually only necessary to include the following as required by :

Date of Order.
Contract and Order Number.
Contract Line Item Number (CLIN) and description, quantity, unit price (supplies) or estimated cost/fee (services).
Delivery schedule/Period of performance (must be within the contract period).
Place of delivery or performance.
Packaging and Shipping Instructions, if applicable.
Accounting and appropriation data.
Method of payment and payment office (if not included in the contract).
Orders for services should be expressed in terms of performance based requirements (see ).

In addition to the information required by the FAR, if the order is for services, the Customer should provide a detailed description of the services being procured to ensure that Customer and Contractor expectations for the specific tasking are aligned. Descriptions should be thorough enough to allow the Comptroller to validate requirements against budgeted appropriations. The Customer is responsible for initiating a DO by processing a request in PR Builder. As indicated by , a TO for severable services may have a period of performance that crosses fiscal years if the period of performance does not exceed one year. The method of payment for orders under IDCs should be established in the basic contract. When authorized in the contract, the GCPC may be used to pay for orders. The GCPC may be used as a method of payment for simplified acquisitions and electronic orders not exceeding $100,000 ($5.5 million for commercial items using the procedures of ) placed against competed IDIQ contracts or for orders not exceeding $9,999,900 issued against other IDCs.

An order log should be maintained for each IDC in which orders are being placed. At a minimum, the log should include the Delivery Order number, requisition/purchase request number, the dollar amount of the order and, a running total of funds obligated under the IDC.

The Contracting Officer shall document in the contract file the rationale for placement and price of each order, including the basis for award and the rationale for any tradeoffs among cost or price and non-cost considerations in making the award decision.

8.10.6 Standard Form 44 (SF 44)

SF 44 Purchase Order Invoice Voucher is a multi-use document that includes the PO, receiving report, Vendor invoice, and public voucher. It is a pocket-size form intended for on-the-spot, over-the-counter purchases when away from the purchasing office. The SF 44 will only be used when all other purchase methods are unavailable (often in a contingency situation). Electronic capabilities are now readily available to the Marine Corps.

The SF 44 may not exceed $2,500, except for the purchase of fuel/oil for aircraft, overseas transactions in support of contingency or a humanitarian/peacekeeping operations, or transactions in support of intelligence and other specialized activities. For those purchases, the limit is the SAT and a Contracting Officer must appoint the individuals using the SF 44 in writing.

8.10.7 Imprest Funds

Imprest funds are petty cash funds advanced to a designated custodian for cash disbursements (i.e., cash purchases). An imprest fund allows over-the-counter cash purchases for actions that do not exceed $500 ($2,500 in support of a contingency operation) when other simplified acquisition methods cannot be used.

The MCFCS is authorized to use imprest funds only in contingency situations; all other uses of the imprest fund have been superseded by the GCPC. NAVSUPINST 4200.85D contains policy and procedures to be used regarding establishment and maintenance of an imprest fund. Authorization to establish the fund should be in writing, signed by the Head of the Activity (HA) or Chief of the Contracting Office (CCO), and set forth the maximum amount of the fund. During contingency operations, the fund ceiling may be raised from $10,000 to $100,000.

8.11 Contract Award Forms

This section is designed as a guide to filling out common award related documents; only items of special interest are explained. Users are strongly encouraged to check any stated references for the most recent guidance, forms, and instruction.

Document Numbering: Procurement documents are issued using the Uniform Procurement Instrument Identification Number (PIIN) system and shall be numbered in accordance with . More information on the Uniform PIIN System is available in .

8.11.1 SF 1449 Solicitation / Contract / Order for Commercial Items

Per , The Contracting Officer shall use the SF 1449 if –

The acquisition is expected to exceed the SAT;
A paper solicitation or contract is being issued; and
Procedures at (Combined Synopsis/Solicitation) are not being used. Use of the SF 1449 is non-mandatory but encouraged for commercial acquisitions not exceeding the SAT.

The solicitation: When completing this form for a solicitation, the order number (Block 4) is not used. The Contracting Officer should complete all applicable blocks for a solicitation and forward the form to all perspective bidders. Check Block 27a, and include the following clauses:

Instructions to Offerors – Commercial Items, as tailored.
Evaluation – Commercial Items. This clause must be included if the purchase is to be accomplished using best value practices. The Contracting Officer must inform all prospective bidders of the factors used in evaluating their quotes.
Offeror Representations and Certifications – Commercial Items. This clause must be included in full text, with the appropriate clauses checked for inclusion. All Contracting Officers should refer to the FAR clause matrix and ensure that all applicable clauses are included for the procurement.

When the SF 1449 is returned from the Vendor, Blocks 12 and 30 should be completed. If these blocks are not completed, contact the Vendor for the required information.

If oral solicitations are sought, the information in and must be passed to the Vendor, and the information in clause must be gathered during the solicitation (an Offeror shall complete only paragraph (j) of this provision if the Offeror has completed the annual representations and certifications electronically at ).

The Order: Upon receipt and evaluation of all quotes, the Contracting Officer issues the SF 1449 to the Vendor that offers the best value to the Government. When issuing the form as an order, the Contracting Officer must ensure the following:

Page number –The correct number of pages must be stated in this block in order to be included in the order. If the order is typed as “page 1 of 1” then the order legally is only 1 page. Orders for commercial items will never be one page.
Clauses – Check Block 27b, and include the clauses and to the Vendor, even if these are provided in the RFQ package. Remember, a quote is non-binding; therefore, the Contracting Officer must include all clauses in the order for them to be in effect.
Block 10 – Enter unrestricted (open to any Vendor) or set-aside. If the order is between $3,000 and $100,000, then it is a small business set-aside. See for more information on set-asides and North American Industry Classification System (NAICS) codes.

8.11.2 DD 1155 Order for Supplies or Services

Per , the DD 1155 is used for purchases made using SAP, and may also be used for commercial item requirements that do not exceed the SAT (although the SF 1449 is recommended).

The DD Form 1155 serves as a—

PO or BPA.
DO or TO.
Receiving and inspection report.
Property voucher.
Document for acceptance by the supplier.
Public voucher, when used as—

A DO;
The basis for payment of an invoice against BPAs or Basic Ordering Agreements (BOAs) when an FFP has been established; or
A PO for acquisitions using SAP.

Instructions for completing the DD 1155 can be found at – Completion of DD Form 1155, Order for Supplies or Services.

9.0 Postaward Phase

The administration of purchases under simplified acquisitions begins immediately upon award. The Contracting Officer determines the simplified acquisition method to use, monitors payments, communicates with the Vendor, ensures (to the maximum extent possible) timely delivery and satisfactory Contractor performance, oversees inspection and acceptance, and awards modifications as requirements change. At the time of contract close-out, the Contracting Officer performs all necessary activities, ensuring that the contract file is documented and retained for the appropriate period of time, as specified in .

9.1 Postaward Protests

An unsuccessful Offeror may file a postaward protest with one or more of the following entities: the Agency (USMC Contracting Officer), the Government Accountability Office (GAO), or the U.S. Court of Federal Claims (COFC). provides information on each type of protest and protest resolution.

9.2 Postaward Conferences

A Postaward Conference includes Government and Contractor personnel and is held as soon as possible (typically within 30 days) after contract award to foster clear and mutual understanding of all contract requirements and to identify and resolve potential problems. The Postaward Conference may be held at either the Contractor or Government facility. The Contracting Officer arranges and conducts Postaward Conferences to review contractual requirements and responsibilities with all interested parties. Postaward Conferences are not used to alter final agreements negotiated prior to award.

Formal Postaward Conferences are not always necessary for procurements using Simplified Acquisition Procedures (SAP) or in situations in which, for example, an incumbent or sole-source situation exists such that the players are known or unchanged, or if the Contractor performed satisfactorily on a recent, similar contract. In accordance with , the Contracting Officer will determine if a Postaward Conference is needed and the extent of formal proceedings.

The objectives of a Postaward Conference do not have to be met in a face-to-face environment. Regardless of the forum, Postaward Conferences must be documented and the documentation maintained in the contract file. A record of participants/attendees should also be included. (See and .) Areas typically addressed during Postaward Conferences include the following:

Contract type.
Delivery Order procedures.
Contracting Officer’s authority.
Unauthorized commitments.
Contracting Officer’s Representative (COR) responsibilities and limitations.
Contractor Performance Assessment Reporting System (CPARS) Reports.
Invoicing and certification procedures.
Transportation procedures.

The following individuals may attend the Postaward Conference:

Contracting Officer and Contract Specialist
Contractor personnel
Contracting Officer’s Representative (COR)
Project Officer – including the Program Manager, Business Financial Manager (BFM), engineering staff, logistics staff, and critical Contractor support
Defense Contract Management Agency (DCMA)/Defense Contract Audit Agency (DCAA)
CL field Counsel

Prior to the conference, the Contracting Officer should convene a meeting of the Government representatives to identify all issues and topics to be discussed as well as establish a unified Government position. During the conference, the Contracting Officer will introduce the teams, establish ground rules for future communications, and ensure all agenda items are addressed.

If a Postaward Conference is anticipated and may result in associated travel costs incurred by the Contractor, the Contracting Officer must identify this requirement in the solicitation so that Offerors may include this cost in their offer.

The prime Contractor may invite its key subcontractors to attend the Postaward Conference. The prime Contractor may conduct a separate postaward conference with its subcontractors to which Government representatives may or may not be invited.

9.3 Monitoring Contractor Performance

From the commencement of Contractor performance, the Contracting Officer and Customer are responsible for ensuring, to the greatest extent possible, that contract performance is on time and within budget. Awareness of both technical and financial status and progress is crucial.

Performance data gathered by the Contracting Officer, or his/her designated representative, must be formally recorded annually. This formal record benefits the Contractor by providing insight into perceived performance; the Government by allowing a medium for accountability and presenting expectations; and future contracts, with the same Contractor or similar in scope, by identifying lessons learned.

There is no prescription for standard monitoring of Contractor performance. Contracts for the same supply or service may differ in dollar value and personnel (Contractor or Government); contracts with the same Contractor may differ in complexity and scope. A vigilant Contracting Officer monitors technical performance, maintains awareness of financial status, and identifies and mitigates risk throughout the life of the contract.

9.3.1 Contracting Officer’s Representative (COR) Responsibilities

Rarely will a Contracting Officer have the expertise in all facets of every procurement he or she administers to ensure a successful contract. To assist them in technical monitoring and administration of a contract, Contracting Officers may designate qualified personnel as their authorized representatives. These individuals, known as Contracting Officer's Representatives (CORs), must be technically qualified and properly trained before assuming responsibilities such as monitoring receipt of contract deliverables, verifying the accuracy of contract invoices, and monitoring contract expenditures. An Alternate COR (ACOR) may also be assigned to a contract if the Contracting Officer determines that it is required in order to provide proper surveillance and oversight. See for details on experience and training requirements, nomination, and designation of a COR and ACOR.

A COR is said to be the “eyes and ears” of the Contracting Officer. A COR is frequently on-site with the Contractor, performing the monitoring, surveillance, and oversight of the contract, and is otherwise the individual designated to perform inspections, verify the accuracy of contract invoices, receive and accept goods, and monitor contract expenditures. As such, the COR’s role is integral to the success of the contract and its overall administration. A COR acts as the technical liaison between the Marine Corps and the Contractor regarding the Statement(s) of Work (SOW) and/or Specification(s) under a contract, and is essential in communicating potential problems to the Contracting Officer for mitigation and immediate diffusion before a situation becomes problematic or even critical.

Given their extensive responsibilities in the technical monitoring or administration of contracts, emphasizes the importance of proper training and performance reviews for CORs.

9.3.1.1 COR Duties

A COR’s responsibilities are commensurate with the complexity, value, technical direction, and monitoring required for a given contract and are specified in the . The COR shall perform the duties and comply with the responsibilities and limitations specified in the COR Designation Letter including the documentation of actions taken under such delegation of authority. In general, a COR shall:

Act as technical liaison between the Contracting Officer and the Contractor with respect to monitoring the Contractor’s performance against the contract Specification, SOW, and Quality Assurance Surveillance Plans (QASP) and communicating any potential problems to the Contracting Officer.

The COR utilizes the QASP in conducting surveillance and oversight of Contractor performance for service contracts. The QASP generally contains the specific Contractor outcomes/objectives, performance standards, any incentives, and methods of surveillance. The COR measures the degree by which the Contractor is satisfying these objectives and measurable standards (e.g., terms of quality, timeliness, quantity, etc.). When Contractor performance fails to meet contract requirements, the COR shall immediately communicate such deficiencies to the Contracting Officer, may consider recommending to the Contracting Officer resultant reductions of fee or price in accordance with the QASP, and shall document in the COR file all communications and actions taken (see and ).
Monitor the Contractor’s progress, costs, and quality of performance, and keep the Contracting Officer informed. A simple can prove to be a useful tool for the COR to help the Contracting Officer track funding after contract award and throughout the life of the contract/orders, whether firm fixed, cost plus award fee, or cost plus fixed fee.
Promptly report any substantive deficiencies in contract performance or other instances of noncompliance with contract terms and conditions to the Contracting Officer.
Provide reports of, and documentation to support, significant actions taken as directed.
Review and certify the Contractor’s invoices (in Wide Area Work Flow) to ensure that work cited has been performed and that labor hours, materials and travel charged are consistent and reasonable for the effort completed during the period covered by the invoice.
If the contract specifies a labor mix/level of effort, monitor the actual labor mix/level of effort expended and is responsible for periodically reporting significant differences between the contracted and actual incurred labor mix/level of effort expended to the Contracting Officer. This allows a more realistic labor mix/level of effort estimation, more realistic pricing for subsequent contracts, and also helps to reduce the risk of Contractor-proposed uncompensated overtime on future contracts.
Where work under a contract is assigned by Task Order (TO) or Delivery Order (DO), track performance, labor hours and mix ordered, and labor hours and mix expended by individual orders.
Be alert to inconsistencies between work actually performed by the Contractor and performance claimed on invoices, as well as Contractor inefficiencies, and promptly notify the Contracting Officer when such circumstances occur.
Review, inspect, and accept services or deliverables when completed, unless otherwise specified in the contract, and certify when all deliverables have been accepted.
Maintain a COR file for each contract/order assigned which contains documentation relative to the actions taken by the COR. Electronic files are acceptable as an alternative to hard copy files, although it is highly recommended that electronic files be regularly backed up. The importance of maintaining complete and orderly files cannot be overemphasized, and it is critical to ensure transfer of responsibility if the COR is changed during the term of the contract. As a matter of practice, the COR shall prepare Memoranda for Record (MFRs) of meetings, trips, and telephone conversations relating to the contract. Each MFR, other similar records, and correspondence relating to the contract shall cite the applicable contract/order/modification number. See also the .
Ensure that the Government is getting what it pays for.
As the assessing official, the COR shall prepare a quality narrative and rating on the Contractor’s performance. CORs play a significant role in the Contractor Performance Assessment Reporting System (CPARS) process for collection of past performance information used in source selection evaluations. CPARS assesses a Contractor’s performance and provides a record, both positive and negative, on a given contract for a specified period of time. Each assessment is based on objective facts and is supported by program and contract management data. See for details on CPARS reporting requirements.

9.3.1.2 COR Limitations

The COR is held to limitations as specified in the COR Designation Letter. In general the COR should ensure the following actions do not occur:

Promising or authorizing the Contractor to perform additional work (COR shall not issue orders or change the intent or substance of a contract or order).*
Issuing stop-work orders.
Authorizing additional Government Furnished Property (GFP) outside of the existing terms of the contract/order.
Disclosing source selection or proprietary information.
Providing any budgetary information.
Allowing or authorizing personal services. The COR shall maintain an arms-length relationship with Contractor employees.**
Interfering with Contractor’s personnel practices or organized labor.
Directly or indirectly changing the following:

Pricing, Cost, or Fee
Quantities
Quality
Scope of the Task/DO/Contract/Modification
Delivery Schedule
Labor Mix
Any other terms/conditions of the Order/Contract/Modification

Nurturing a conflict of interest or appearance of a conflict of interest. The COR shall adhere to the statutes and regulations governing standards of conduct. If a conflict or the perception of a conflict of interest develops, the COR shall notify the appointing Contracting Officer and CL field Counsel immediately.

What is a constructive change? Why should it be avoided?

A constructive change is an action (or inaction) on the part of the Government, which results in Contractor performance different from, or in excess of, the original contract requirements. In other words, a constructive change is a change that is outside the scope of the contract or requested informally by someone other than the Contracting Officer without the official contract modification to make it part of the contract. Occasionally, CORs inadvertently make changes to the contract by making verbal changes in specifications, accelerating delivery dates or requiring more stringent quality assurance, for example. Such changes often result in invoices over and above the original contract amount. Only Contracting Officers, acting within their delegated contracting authority, are empowered to make such changes by means of negotiations and formal contract modifications. Nevertheless, Contractors often act on changes requested by the COR because it appears to the Contractor that the COR has authority to change contracts. The result is an unauthorized commitment that requires ratification. See also for Ratification of Unauthorized Commitments.

What are personal services? Why should they be avoided? How can they be prevented?

In a personal services contract, Contractor personnel appear, in effect, to be Government employees. Personal services contracts usually involve continuous direct supervision and control of Contractor employees by Government employees. Obtaining personal services by contract, rather than by direct hire, circumvents civil service laws unless Congress has specifically authorized acquisition of the services by contract. In order to prevent a personal services contract from occurring, the contract Statement of Work must be well-defined and precise. The COR must maintain surveillance, not supervision, and he/she must notify the Contracting Officer at the first indication of a problem with Contractor performance.

9.3.1.3 COR Records

Since the COR is an authorized representative of the Contracting Officer, the COR’s records are a part of the official (postaward) contract files and shall be forwarded to the Contracting Officer for retirement with the official contract file upon completion of the contract. Documents that pertain to the contract shall be clearly identified when forwarded to the Contracting Officer. Documents that may contain Contractor proprietary data or other source selection sensitive information should not be released outside the Government without prior approval from the Contracting Officer.

9.3.1.4 Contracting Officer Oversight

Supplementing the normal monitoring of the COR by the Contracting Officer, the Contracting Officer must maintain an activity file on each COR in the official contract file as required by (a)(5). The purpose of this file is to record and maintain the results of reviews conducted annually by the Contracting Officer of the COR’s contract-related activities. The Contracting Officer must annually evaluate and document the performance of the COR and provide a copy of this evaluation to the COR’s organizational head. If the contract performance period is less than one year, this evaluation must be conducted prior to contract closeout. The Contracting Officer may request that the COR complete a (or equivalent) in support of his or her annual evaluation of COR performance.

In addition, the Contracting Officer may perform reviews of the COR contract files on an “as needed” basis. Issues/events that the Contracting Officer may consider when deciding whether a review is needed are:

Designation of a new COR/ACOR on the contract.
Contractor receipt of an overall CPARS rating of RED (unsatisfactory) or YELLOW (marginal), or when a Termination for Default is being contemplated.
A pattern of problems with COR performance in any area of responsibility, such as the following.:

Unauthorized commitment.
Untimely/poor quality modification, Statements of Work (SOWs), or Independent Government Cost Estimates (IGCEs).
Inadequate/non-existent invoice reviews.
Untimely/poor quality CPARS recommendations.
Complaints regarding monitoring of Contractor performance or requesting Contractor performance outside the scope of the contract (constructive changes).

9.3.2 Contractor Performance Assessments

mandates that past performance data be collected, and requires the data to be used in source selection evaluations of prime Contractors. Formal past performance collection is facilitated through CPARS, which is DON’s mandatory system for collecting Contractor performance data per . DON is utilizing the CPARS Automated Information System (AIS) to collect Past Performance Information (PPI) and pass it to the Federal Past Performance Information Retrieval System () where PPI will be available to be retrieved by all Services.

PPI is required to be collected for certain Business Sectors and thresholds. PPI must be collected on contracts (including Indefinite Delivery Contracts (IDC) and Information Technology Federal Supply Schedule Blanket Purchase Agreements (IT FSS BPAs)) meeting the Business Sector and threshold levels as shown in the following table:

Business Sectors and Thresholds*

Business Sector	Dollar Threshold**
Systems & Operations Support	> $5,000,000
Ship Repair & Overhaul	> $500,000
Services & Information Technology	> $1,000,000
Unique:
Health Care, Fuels	> $100,000
Construction	> $550,000	IAW ***
A&E	> $30,000	IAW ***

*Contracts awarded under & shall not be evaluated. See Table 1 and Attachment 1 of for Business Sectors definitions and details.
**Dollar threshold applies to “as-modified” face value of contract
***CPARS not applicable.

See .

9.3.3 Contractor Performance Assessment Reporting System (CPARS)

is a web-enabled application that collects and manages the library of automated Contractor assessment data – unclassified, formal reports, completed annually by the Project Officer. A CPARS Report assesses a Contractor’s performance and provides a record, both positive and negative, on a given contract during a specific period of time. Each assessment is based on objective facts and supported by program and contract management data, such as the following:

Cost performance reports.
Customer comments.
Quality reviews.
Technical interchange meetings.
Financial solvency assessments.
Construction/production management reviews.
Contractor operations reviews.
Functional performance evaluations.
Earned contract incentives.

The purpose of CPARS is to ensure that Contractor performance data are appropriately assessed and that feedback regarding performance is conveyed to companies with whom the MCFCS has contracted. In a sense, the CPARS Report is a “report card” on how well a Contractor is performing or has performed on an individual contract. Once a contract is awarded, the Assessing Official (usually the COR) obtains a CPARS user ID from the Contracting Officer.

Every 12 months throughout the life of the contract (including Option exercises, warranty periods, and delivery of deferred data, if any), the Assessing Official will prepare a CPARS evaluation on contracts that meet the business sector thresholds in accordance with the applicable completion instructions as listed in the . The Assessing Official is encouraged to seek input from the multi-functional acquisition team when assessing the Contractor’s performance. At a minimum, Contracting Officer input should be obtained.

Contracting Officers should ensure that support Contractors do not prepare inputs to CPARS (even as project team members) and do not have access to CPARS. See (d)(7).

After the report has been processed and reviewed, the Assessing Official will notify the Contractor and provide guidance for the review process. The Contractor may review and comment on the assessment within thirty (30) calendar days of the evaluation per . If the Contractor would like a meeting to discuss the CPARS Report, a written request must be forwarded to the Assessing Official within seven (7) calendar days from notification of the evaluation. Discussions will not affect the 30-calendar day period. Should the CPARS Report not be reviewed within the allotted 30 days, the Assessing Official may annotate Block 20 as follows: “The report was delivered/received by the Contractor on [date]. The Contractor neither signed nor offered comment in response to this assessment.” The Assessing Official would then continue processing the CPARS evaluation.

If there is a significant discrepancy between the Assessing Official’s assessment and the Contractor’s comments, the Reviewing Official (at least one level above the Assessing Official or as designated by the Contracting Officer) will provide, if possible, a consideration and reconciliation thereof. The CPARS Report shall be completed and signed by the reviewing official not later than 120 days after the end of the evaluation period.

For existing contracts, e.g., Indefinite Delivery Contracts (IDCs), a CPARS Report will be completed on an interim (every 12 months after contract award) and final basis. A CPARS Report is not to be completed for each DO, unless the Contracting Officer feels it is in the best interest of the Government, and the Contractor concurs, or the Contractor requests a CPARS evaluation at the DO level and the Contracting Officer concurs.

For contracts to be awarded, the Contracting Officer can elect to do a CPARS evaluation under one of the following circumstances:

At the contract level only, not on individual DOs;
At the DO level only when the individual DO meets or exceeds the threshold, or
At the DO level and again at the contract level to “roll” the information to give a big picture perspective.

The Contracting Officer should conduct a Postaward Conference for all contract awards requiring a CPARS evaluation to discuss the CPARS process and the evaluation factors to be used during contract performance. Completion of Blocks 1-14 of the CPARS Report must be input in the CPARS AIS within 30 days after award has been made.

A Final CPARS Report is issued at contract termination, transfer of program management responsibility, delivery of the final major end item, or completion of the period of performance.

All CPARS information is treated as source selection information in accordance with . This information sometimes includes information that is proprietary, such as trade secrets and confidential commercial or financial data that would not be released under the Freedom of Information Act. For more information, see and .

9.4 Delivery Orders/Task Orders

The work statement included in a Contract details the programs and projects under which supplies or services may be provided/performed, but the specifics of the supplies or services frequently require further amplification by means of issuance of Delivery and Task Orders. defines a Delivery Order (DO) as an “order for supplies placed against an established contract or with Government sources.” A Task Order (TO) is essentially the same as a DO, but for services as opposed to supplies.

DOs/TOs may be Fixed Price (FP), Cost Reimbursement (CR), Time-and-Materials (T&M), labor-hour, or some combination of these arrangements, as stated in the contract. (See .)

In accordance with , DOs/TOs issued under IDIQ contracts must contain the following:

Date of Order.
Contract and Order Number.
Contract Line Item Number (CLIN) and description, quantity, unit price (supplies) or estimated cost/fee (services).
Delivery schedule/Period of performance (must be within the contract period).
Place of delivery or performance.
Packaging and Shipping Instructions, if applicable.
Accounting and appropriation data.
Method of payment and payment office (if not included in the contract).
Orders for services should be expressed in terms of performance based requirements. (See .)

In addition to the information required by the FAR, if the order is for services the Customer should provide a detailed description of the services being procured to ensure that Customer and Contractor expectations for the specific tasking are aligned. Descriptions should be thorough enough to allow the Comptroller to validate requirements against budgeted appropriations. The Customer is responsible for initiating a DO by processing a request in PR Builder. As indicated by , a TO for severable services may have a period of performance that crosses fiscal years if the period of performance does not exceed one year.

The Contracting Officer shall document in the contract file the rationale for placement and price of each order, including the basis for award and the rationale for any tradeoffs among cost or price and non-cost considerations in making the award decision. For more info on DO/TOs, see .

9.4.1 Order Codes

prescribes policy regarding Uniform Procurement Instrument Identification (PII) numbers, and prescribes the use of supplementary numbers in conjunction with PII numbers. Supplementary numbers may be used to identify amendments to solicitations; modifications to contracts and agreements; and calls or orders under contracts, basic ordering agreements, or blanket purchase agreements, issued by the contracting office or by a DoD activity other than the contracting office, including DoD orders against Federal supply schedules.

If the contracting office placing the order or call is the only activity placing orders under the contract or agreement, use of serial numbers 0001 through 9999 is authorized.

When orders are placed against another activity’s contract or agreement, the supplemental numbers are called order codes and are used use to identify the activity that owns the contract/agreement. As the executive agent for maintenance of code assignments, the Defense Logistics Agency Acquisition Policy Branch distributes blocks of two-character order codes to department/agency monitors for further assignment.

Order code assignments are available on the following website: (Formerly in Appendix G).

Marine Corps Contracting Offices are responsible for submitting requests for assignment of or changes in order codes to HQMC ADC, I&L. HQMC will, in turn, provide accordingly to the order code monitor, DASN(A&LM), for approval and subsequent publishing.

For more information, see .

9.5 Modifications

Contract modifications are executed whenever the basic terms and conditions, scope of work, funding, or other contract components are revised in writing by the Contracting Officer on an SF 30, Amendment of Solicitation/Modification of Contract. Either the Government or a Contractor may propose to modify a contract. If a Contractor initiates a modification, it must submit a signed request to the Contracting Officer explaining the modification and its anticipated effect on the contract. Only Contracting Officers acting within their delegated authority are empowered to execute a contract modification or change a contractual commitment on behalf of the Government. (For those contracts assigned to DCMA, Administrative Contracting Officers (ACOs) may have the authority to issue certain modifications against the contract.)

Other Government personnel shall not act in such a manner as to cause the Contractor to believe that they have authority to bind the Government or direct or encourage the Contractor to perform work that should be the subject of a contract modification. Customers and Contracting Officer’s Representatives need to be careful to avoid “constructive changes.” A constructive change is a change that is outside the scope of the contract or requested informally without the official contract modification to make it part of the contract. Modifications must be approved prior to execution.

There are two types of contract modifications: unilateral and bilateral. Unilateral modifications are signed only by a Contracting Officer, and bilateral modifications (supplemental agreements) are signed by both a Contracting Officer and a Contractor. A bilateral modification can add new work or revise existing terms, and it may have cost implications.

Bilateral. A bilateral modification (supplemental agreement) is a contract modification that is signed first by the Contractor and then by the Contracting Officer. Bilateral modifications are used to do the following:

Make negotiated equitable adjustments resulting from the issuance of a change order.
Definitize Letter Contracts.
Reflect other agreements of the parties modifying the terms of contracts (e.g., incorporation of revised DD Form 254, no-cost Engineering Change Proposals (ECPs), revised delivery schedules or periods of performance into the contract in return for consideration; providing additional funding under Undefinitized Contract Actions (UCAs) pursuant to the “Limitation of Government Liability” clause or for cost overruns pursuant to the “Limitation of Cost”/”Limitations of Funds clause; or determination of the final “price” of incentive contracts.)

, Pricing of Contract Modifications, shall be included in all bilateral modifications.

Unilateral. A unilateral modification is a contract modification that is signed only by the Contracting Officer. Unilateral modifications are used, for example, to do the following:

Make administrative changes (written changes that do not affect the substantive rights of the parties; e.g., a change in the contract administration office, COR, paying office, or appropriation data).
Issue change orders.
Make changes authorized by clauses other than a changes clause (e.g., incremental funding pursuant to the “Limitation of Funds” clause, exercising priced Options pursuant to Option exercise clauses in the contract; or other actions pursuant to the Government Property or Stop-Work Order clause).
Issue termination notices.

If the modification includes incremental funding, it is necessary for the Contracting Officer and COR to work closely with the Comptroller. The funding should be appropriately broken out between the specifically identified Contract Line Item Numbers (CLINs) and even further between cost and fee, depending on the type of contract.

It is important to negotiate priced modifications prior to commencement of performance rather than relying on issuing a unilateral change order under the Changes clause. The Changes clause allows a Contracting Officer to direct the Contractor to perform within-scope changes to the contract (unilateral modification), but requires a bilateral priced modification to be negotiated later (often in the form of a Request for Equitable Adjustment (REA)). The Contracting Officer is generally in a better negotiating position when the in-scope change is negotiated and the contract modified prior to the work starting. There will be situations in which there are unknowns or contingencies (urgent and compelling situation and no time to negotiate upfront) involved and thus the Contracting Officer will have to issue a unilateral modification under the Changes clause and negotiate later.

Contract modifications include the following:

A change order invokes a contract's Changes Clause for changes in general scope and must be approved by a Contracting Officer. A Contractor submits a written proposal in response to a change order. A unilateral modification is used to issue the change order. After negotiation, Contracting Officers determine whether an equitable adjustment is required, and execute a bilateral modification.
For commercial contracts, in lieu of using a changes clause, “Mutual Agreement” of the parties is cited as the authority to make changes to price and quantity and authorize cancellations or partial cancellations. These modifications are issued as bilateral agreements.
A modification adding new work outside the scope of the contract requires a justification for other than full and open competition and results in a bilateral modification. See also , Other Than Full and Open Competition.
An extension modification extends the period of performance for completion of contract requirements. This extension can be a cost or no-cost extension. A Contractor submits a written request or proposal identifying the impact of the extension on a contract and its funding. Contract extensions are bilateral modifications.
A cost overrun modification is necessary when the cost of performing a cost-reimbursement contract exceeds or is expected to exceed the total estimated cost in the contract. A Contractor needs additional funding to complete requirements; no new work is performed. A cost overrun modification is bilateral.
A modification changing other terms of the contract, such as travel, subcontracts, equipment, key personnel, delivery, or schedule, can be initiated by either a Contractor or the Contracting Officer. A Contractor submits documentation requested by the Contracting Officer. These modifications are bilateral.
A modification making changes authorized by clauses other than the changes clause, such as Property Clause, Options Clause, incremental funding, or Customer, is initiated by the Contracting Officer and may be executed as a unilateral modification.
A modification making administrative changes that do not affect the rights of the parties, such as a change in the appropriation data or the paying office, is initiated by the Government and may be executed as a unilateral modification.

9.5.1 SF 30 Amendment of Solicitation / Modification of Contract

Under SAP, the Contracting Officer will complete SF 30 Amendment of Solicitation / Modification of Contract when modifying an order/contract or when canceling a unilateral order. The SF 30 is a self-explanatory form with each block labeled for the information that needs to be provided. Each block should be filled out as applicable to the type of change order/modification being issued.

Block 13 identifies modification authority. When completing Block 13, an authority must be listed that allows for the type of change/modification being used.

Examples of authority for non-commercial contracts include the following:

and for change orders.
10 USC 2304(g) for new procurements (adding new items to original order).
for termination or partial termination of fixed price contracts amount $100,000 or less.
for termination or partial termination for service orders, regardless of contract value.
(a) (bilateral/supplemental agreement) or (b) (unilateral).

Examples of authority for commercial contracts include the following:

(a) (bilateral/supplemental agreement) or (b) (unilateral).
Cite “Mutual Agreement” of the parties for changes (non-administrative).
for other changes.

When completing Block 13, the Contracting Officer will complete one of four fields to identify the proper authority:

13A. This block is used when issuing a change order. An example of a change order would be changing place of delivery or changing a Specification.
13B. Use this block when making an administrative change to the order. An example of an administrative change would be changing Vendor address or changing accounting data.
13C. Use this block when issuing a supplemental agreement/mutual agreement.
13D. Use this block for all other changes not included above. These changes are normally bilateral. Examples of other changes are termination or partial termination, cancellations, increases in quantity to conform to unit packs.

9.5.2 Consideration

Modifications to a contract affect the interests, rights, and obligations of two independent parties: the USMC and the Contractor. The responsibility of the Contracting Officer is to preserve the integrity of the relationship between these two parties. The Contracting Officer reviews the action to determine whether it is consistent with the existing contract and to ensure that the equities of the existing relationship are preserved and will be continued when a modification is issued and negotiated.

Generally, there must be "consideration" whenever a contract is modified. Consideration is the benefit each party confers upon the other for the modification; it is required to seal a new bargain. Consideration is something of value that is given in exchange for something else and thus can take many forms, including monetary. Other forms can involve changes in specifications or work statements, delivery, payment, or other contract terms and conditions.

It’s important that the Contracting Officer not let a blind pursuit of a monetary consideration lead him/her away from a good business deal. Consider the cost, schedule, and performance impacts of jettisoning a current arrangement for another.

If a Contractor is entitled to a time extension pursuant to a contract clause, no new consideration is required. (An "equitable adjustment" is not consideration.) However, if the parties negotiate a time extension at the request of either, and if the requesting party is not entitled to the extension pursuant to a contract clause, then the parties are modifying the contract by making a new deal and therefore must exchange new consideration.

Public Law 85-804 allows for modification of a contract without consideration under limited circumstances as a form of extraordinary contractual relief. (a) allows for contract amendment without consideration when certain conditions are met, and (c) expressly authorizes certain modifications to be made without consideration.

A Contracting Officer cannot agree to modify a contract without consideration if consideration is required. He or she cannot "give" the Contractor a time extension. Such an action would be beyond his or her authority under FAR and would not be binding on the Government. However, it is up to the Contracting Officer to determine what would be adequate consideration. Consideration need not compensate the Government for what it gives to the Contractor. It need only be enough to seal the deal in the eyes of a board or court. Ordinarily, courts and boards consider anything of value to be adequate consideration, if the parties think it's enough; chances are so will the boards and courts.

The case law in Administration of Government Contracts, 3d ed., by Cibinic and Nash states that the requirement for the Government to receive consideration has sometimes been stated as a legal rule that no Government official may give away or remit a vested right of the Government, . Thus, contract modifications will typically be overturned if the Government obtains no benefit whatsoever, H.Z. & Co., ASBCA 29572, 85-2 BCA ¶ 17,979; A.O. Smith Corp., ASBCA 16788, 72-2 BCA ¶ 9688. For a recent decision that discusses the requirement for consideration for a modification in a Government contract case, see .

9.6 Exercising Options

Contract prices as well as terms and conditions are negotiated and agreed upon at the time of (bilateral) award, and the Option Clause in the contract gives the MCFCS the unilateral right to purchase additional products/services or extend the term of the contract at pre-agreed prices and/or terms. Options are appropriate when a known quantity of items or services is required and it is anticipated that the item or service will be required in the future. Typically, solicitations are issued for the known requirement (base quantity) with Options for the future requirements (Option quantities). Options may be used in acquisitions using SAP provided that the acquisition and all Options aggregately do not exceed the SAT ($100,000 for non-commercial items, $5.5 million for commercial items under ).

The contract must specify limits for and the allowable period of Option exercise. The basic contract and all Options may normally not exceed five years for supplies and services. In rare circumstances when exceeding five years is justified, the Contracting Officer must obtain approval prior to issuing the solicitation for the use of contract terms in excess of five years. Options are commonly found in IDCs, normally stated as one-year contracts with four Option years. Options may be appropriate where the market is relatively stable, price inflation is fairly predictable, the nature of the contract is not likely to change significantly between award and the time the Option is exercised, or where it may be difficult to test the market at a future date. For details as to when Options are appropriate, see and Options. For detailed discussion on evaluating Options prior to contract award, see the .

Priced Options are unilaterally exercised by the MCFCS prior to the start date of the optional period of performance. The Contracting Officer should consider the following, among other factors, before deciding to exercise an Option: availability of funds, the ability of the requirement covered by the Option in fulfilling an existing Government need, contract price and contract performance (timeliness and quality), and need to synopsize, The Contracting Officer must also consider the Government’s need for continuity of operations and the potential cost of disrupting operations.

When intending to exercise an Option, the Contracting Officer should notify the Contractor of the Government’s intent within the specified time period in the contract, allowing sufficient time for the Contractor to make decisions regarding resources. This time period is typically 60 days prior to the Option performance start date or the lead time otherwise stated in the contract. The Contracting Officer makes this notice in good faith; however, the MCFCS is not bound to exercise the Option, should circumstances warrant, even after the notification of intent has been given.

Before an Option can be exercised, the Contracting Officer shall make a written determination that exercise of the Option is the most advantageous method of fulfilling its existing needs, price and other factors considered per (c)(3). (See .) The written determination must assert that the cumulative value of the acquisition with all Options does not exceed the SAT.

When the Contracting Officer exercises an Option via SF 30 or other written document, he/she shall cite the Option clause as the authority to do so.

Additional Requirement for Services. For service contracts exceeding the micro-purchase threshold, the McNamara-O'Hara Service Contract Act (SCA) requires that the Contracting Officer incorporate the most current SCA Wage Determinations (WD) into an existing contract via modification to exercise an Option or extend the contract. For those service contracts which include a Collective Bargaining Agreement (CBA), the Contracting Officer shall provide notice to both the incumbent Contractor and its employees’ bargaining agent 30 days in advance of exercise of any Option. For more information, see as well as the . Also visit , which provides a single location and electronic means for Contracting Officers to use in obtaining appropriate SCA WDs for each official contract action, including exercising Options.

See for additional information and the Contracting Officer’s Option Exercise Toolkit.

SBA Size Recertification

To ensure that small business size status is accurately represented and reported over the life of long-term Federal contracts, effective 30 June 2007, small business size status is no longer automatically retained from the time of initial offer. This SBA size recertification rule (Federal Register Nov 15 2006) will be applicable to solicitations as well as to all current and future long-term contracts.
Recertification must occur prior to the following events:

Option exercise
Merger or acquisition
End of the first five years of a contract

Government-Wide Acquisition Contracts (GWACs), General Services Administration (GSA) Multiple Award Schedule (MAS) contracts, and multi-agency contracts (MACs) are not exempted from this rule.
See the for more information.

9.7 Stop-Work Order

Situations may occur during contract performance that cause the Government to order a suspension of work or a work stoppage. In accordance with , a stop-work order may be used in any negotiated Fixed-Price or Cost-Reimbursement supply, Research and Development, or service contact if work stoppage may be required for reasons such as advancement in the state-of-the-art, production or engineering breakthrough, or realignment of programs. Another example of when a stop-work order would be issued would be in response to a protest filed by an unsuccessful Offeror.

For SAP, stop-work orders are optional for CostReimbursable or FixedPriced supply and service procurements when the Contracting Officer determines that it is in the Government’s best interest to include the applicable Stop-Work Order Clause ( and its Alternate I for Cost Reimbursable buys) in the award. The Stop-Work Order Clause is not applicable to commercial supplies and services, including those procured above the SAT pursuant to .

Generally, a stop-work order will be issued only if it is advisable to suspend work pending a decision by the Government and a supplemental agreement providing for the suspension is not feasible. Stop-work orders shall not be used in place of a termination notice after a decision to terminate has been made. Issuance and cancellation of a stop-work order must be approved at a level above the Contracting Officer.

discusses what to include in a stop-work order and what to do as soon as feasible after its issuance. Contracting Officers may request assistance from the Customer in preparing the following information for inclusion in a stop-work order:

Description of the work to be suspended.
Instructions concerning the Contractor’s issuance of further orders for materials or services.
Guidance to the Contractor on action to be taken on any subcontracts.
Suggestions to the Contractor for minimizing costs.

When required, a stop-work order should be issued immediately. Orders may take the form of either a letter or modification. Contracting Officers may issue stop-work orders for a period of 90 days or less. Order extensions beyond 90 days must be agreed to by the Contractor. (See and .)

After issuing the stop-work order, the Contracting Officer should discuss the order with the Contractor and modify the order, if necessary, in light of the discussion. The Contracting Officer must then decide whether to terminate the contract, cancel the stop-work order, or extend the period of the stop-work order. If a stop-work order is canceled or the period of the order or any extension thereof expires, the Contractor shall resume work. The Contracting Officer shall make an equitable adjustment in the delivery schedule or contract price, or both, and the contract shall be modified, in writing, accordingly.

If a stop-work order is not canceled and the work covered by the order is terminated for the convenience of the Government, the Contracting Officer shall allow reasonable costs resulting from the stop-work order in arriving at the termination settlement. If a stop-work order is not canceled and the work covered by the order is terminated for default, the Contracting Officer shall allow, by equitable adjustment or otherwise, reasonable costs resulting from the stop-work order.

See attached samples: , , and .

9.8 Change Orders for Non-Commercial Procurements

A change order is a unilateral, written order signed by the Contracting Officer. Most equitable adjustments are accomplished under the authority of the Changes Clause existing in the contract, which directs the Contractor to make changes within the general scope of the purchase order (PO). In accordance with the clause, the Contractor is entitled to a price adjustment if: a) the Contracting Officer changes any aspect of the general scope of the contract, and b) the change affects the cost of performing the work.

A Changes Clause serves four basic purposes:

To provide flexibility for the Government to order unilateral changes, to use technological advances, and to incorporate changes in Government requirements.
To provide a means for the Contractor to propose changes that will improve efficiency and quality. These proposals are usually referred to as ECPs or Value ECPs.
To provide the Contracting Officer authority to add or subtract work within the general scope of the contract or to accelerate or decelerate the contract schedule without going through the process of a new procurement or using new funds.
To provide a legal means by which the Contractor can process claims through the administrative dispute process.

The Changes Clause does not incorporate every change to the contract. Changes are limited to those that are within the general scope of the contract and the types of changes described by the clause. A change falls under the general scope of the contract if total work performed is essentially the same work or end product as called for in the original contract.

Change orders, as a result of the Changes Clause, are not applicable to commercial procurements. For commercial item procurements, changes in the terms and conditions of the contract may be made only with written agreement of both parties.

Change Orders as Modifications to POs. Although seldom used to modify POs, a change order can be issued under the following conditions:

A change order can only be made to a bilateral PO in which the applicable Changes Clause has been incorporated into the original PO or has been incorporated via bilateral modification.
The proposed change must be within the scope of the original order and allowable under the changes clause as follows:

For supplies, drawings, designs or Specifications where supplies to be furnished are to be specially manufactured for the Government per those drawings, designs, or Specifications; method of shipment or packing; or place of delivery;
For services, description of services to be performed; time of performance or place of performance of the services; or
For services where supplies are to be furnished items in the two bullets above.

9.9 Transportation Procedures

Transportation and traffic management factors are important in awarding and administering simplified acquisitions to ensure that purchases are made on the most advantageous basis to the USMC, supplies arrive in good order and condition, and supplies are delivered on time to the required location. requires Contracting Officers to evaluate quotations or offers inclusive of transportation charges from the supplier’s shipping point to the final delivery destination. Consequently, Contracting Officers must consider the effect of transportation terms on contract award and the cost of delivering supplies to the final destination.

Several acceptable transportation procedures exist. The term Free on Board (FOB) is used in conjunction with a physical point to determine:

Responsibility and basis of freight charges.
The point at which inspection/acceptance occurs.
The point at which responsibility for and title to supplies passes to the Government.

Per , whenever the Contractor is to be reimbursed for transportation costs, the Contracting Officer should include an estimate of such costs in the contract under the appropriation data, as follows: "For obligation purposes only, the transportation costs chargeable to the funds indicated above are estimated to be $X." These estimated transportation costs should not be included in the total posted in the "Amount" blank on the face of the purchase document; however, the words "PLUS TRANS" should be inserted within the "Amount" blank to alert interested personnel to this additional obligation.

FOB Destination. Requires the Contractor to be responsible for all shipped materials up to reaching the destination. In FOB Destination, the cost of an order includes the cost of transportation. Quotes for this type of transportation should be requested from all Vendors. Cost of transportation is included in the total cost of the order. , FOB Destination, should be included in written solicitations and orders or should be communicated orally when ordered in this manner. When delivery to a specific room or inside delivery is desired, the Contracting Officer will use , FOB Destination, Within Consignee’s Premises.

Supplies obtained using SAP are normally inspected and accepted at destination by Government personnel. This inspection will generally consist of a visual examination of the type, kind, quantity, condition or damage, operability packaging, and marking. For supplies obtained under GSA FSS, inspection and acceptance of supplies will be at destination except when the Schedule provides for source inspection.

FOB Origin Freight Prepaid. A variation of FOB Destination, which requires Contractors to arrange shipping, with the Customer not being charged for shipping until materials reach their destination. If FOB Destination is not possible, FOB Origin Freight Prepaid is preferable to FOB Origin whenever supplies are unclassified, shipments are within certain weight restrictions (150 pounds if shipped by commercial air or 1,000 pounds by other commercial carriers), and the shipping cost does not exceed $100. FOB Origin results in the Contractor only being responsible for material until it is delivered to a shipper/carrier. Government ownership typically occurs at the shipper; therefore, the Contractor is entitled to payment upon evidence that the shipment was received at the destination. The Contractor’s quote must include the cost of material and shipping cost separately. , FOB Origin Freight Prepaid, should be incorporated in the order or documented in the file (in the case of oral orders). If the prepaid transportation charges exceed the threshold, shipping charges above the prescribed limits shall be taken from the procurement line of accounting supporting the contract action.

FOB Origin Contractor’s Facility. When delivery is free to the USMC when delivered via USMC/Navy vehicle or commercial carrier to the designated destination. FOB Origin, Contractor’s Facility, should be incorporated in the order when supply pick-up at the Contractor’s facility is determined to be in the Government’s best interest. As the Contractor is only responsible for the supplies until the order is picked up, the USMC should perform inspection and acceptance at the Contractor’s facility before taking possession of materials. A separate line item should not be included for shipping; an estimate of shipping costs should be included in Block 20 of SF 1449.

If it is advantageous to the Government, the Contracting Officer may authorize the Contractor to ship supplies that have been acquired FOB Origin, to domestic destinations, including DOD air and water terminals by common carriers on commercial bills of lading. Such shipments shall not exceed 150 pounds by commercial air or 1,000 pounds by other commercial carriers and shall not have a security classification. Otherwise FOB Origin freight shipments will move on a Government-issued freight bill of lading. FOB Destination shipping terms should be used whenever possible in order to obtain overall cost and administrative benefits to the Government.

9.9.1 Freight Invoices

Purchase Orders (POs) only with an estimated shipping cost of $100 or more shall include the following on the face of the PO, "Invoices for POs only with shipping charges in excess of $100 must be accompanied by a certified freight bill" (for further guidance, see ).

When a Transportation Account Code (TAC) is available for the appropriation financing the purchase, the transportation costs prepaid by the Contractor are not charged directly to the appropriation. The order shall include the appropriate four digit TAC to pay the freight charges. From the , select DAASC services from the home page and then select TACINQ.

9.9.2 Freight Transportation

Ordering freight transportation services is not generally a MCFCS responsibility and instead is a function of the activity material transportation officer who may issue a Government Bill of Lading (GBL) to effect movement of supplies. Navy and Marine Corps Transportation Offices are implementing the PowerTrack system and will no longer require a separate authorization (Commercial Forms and Procedures Account) to issue Commercial Bills of Lading (CBL). This is because all shipping documentation will be performed using CBLs vice GBLs. Navy Operational Logistics Support Center (NOLSC) coordinates all actions required to implement PowerTrack at Navy/Marine Corps freight shipping activities, including the approval and establishment of all Navy/Marine Corps PowerTrack accounts.

9.9.2.1 Logistics Shipments

Logistics shipments are defined as shipments of material that are not identified as administrative shipments as discussed below. When approved by NOLSC and per the Defense Transportation Regulation (DTR), Part II, Cargo Movement, the use of CBLs vice GBLs is authorized. Under normal circumstances, the activity transportation officer will process these requirements.

If there is no transportation officer assigned to a facility, the activity that performs transportation officer services will process these requirements. To use CBLs for Navy freight shipments, a commercial Forms and Procedures Account is required and must be obtained.

9.9.2.2 Administrative Shipments

Administrative shipments consist of items such as general correspondence, personnel records, payroll records, laboratory samples (except whole blood and urine samples which are paid by Service Wide Transportation (SWT), electronic storage media (e.g., computer tapes, floppy discs, compact discs, videos), blueprints, legal/financial/recruiting/ contracting or similar documents and technical manuals not requisitioned directly from stock.

Shipment of administrative material shall be funded by the local activity requesting shipment and will be shipped by the United States Postal Service (USPS) whenever possible. When use of USPS is not possible due to size/weight restrictions and a commercial carrier must be used, the Contracting Officer should use the Governmentwide Commercial Purchase Card (GCPC) and cite command Operations and Maintenance, Marine Corps (O&M, MC) funds.

9.10 Inspection and Acceptance

Each PO/DO form has a space reserved for inspection and acceptance of the items/services order. Inspection and acceptance needs to be understood by everyone involved in the procurement process.

There are two types of inspections and acceptances:

Destination: In most simplified acquisitions, Government inspections and acceptance are performed at the destination by the receiving activity because of the increased administrative costs associated with source inspection. If supplies are first inspected at points other than destination, they should be again inspected (and accepted) at the destination.
Source/site inspection: Source/site inspection can be conducted when critical items are being ordered, Contractor inspection is required, or administration is required beyond the capability of the issuing office. In these instances, a partial delegation of contract administration is made to DCMA to perform inspection and/or acceptance.

Inspection at the source/site is costly and should be used judiciously. If requiring a Contractor to perform inspection, the Contracting Officer must ensure compliance with , Quality Assurance.

Acceptance constitutes acknowledgment that the deliverables conform to the terms and conditions set forth in the applicable PO/DO.

Resolving the Non-Conformance Deliveries: If a supplier delivers supplies or performs services that are not in conformance with the purchase order, use the decision table below to determine the correct course of action.

IF	THEN
The supplier will replace the items, which are defective, or re-perform the service as requested, within a reasonable period of time.	Reject the non-conforming supplies and let the supplier make changes at its expense.
The Contracting Officer elects to accept non-conforming supplies or services.	If necessary, adjust the price prior to acceptance.
The supplier cannot correct or replace the supplies, or re-perform the service, within a reasonable period of time, and the item or service is readily available from another source.	Reject the defective supplies or services and adjust the price and quantities accordingly.

9.10.1 Wide Area Work Flow (WAWF)

Wide Area Workflow (WAWF) is a secure web-based system for electronic invoicing, receipt and acceptance. WAWF creates a virtual folder to combine the three documents required to pay a Vendor- the Contract, the Invoice, and the Receiving Report. WAWF enables vendors to submit invoices electronically and pre-populates supplemental award information from EDA-NG. WAWF notifies Government personnel responsible for accepting the goods and or services of pending actions requiring approval and following acceptance by acceptors, WAWF sends the invoice/receiving report to DFAS for processing and payment.

WAWF both mitigates interest penalty payments due to lost or misplaced documents and highlights vendor-offered discounts, both of which result in savings to the Marine Corps. WAWF streamlines the payment process from weeks to days or minutes and provides a full spectrum view of document status. In addition, WAWF minimizes re-keying of information which improves data accuracy and eliminates unmatched disbursements.

WAWF satisfies the regulatory requirements contained in Electronic Submission of Payment Requests and is fully implemented within the Marine Corps. The clause at , pursuant to the prescription at , shall be used in Marine Corps solicitations and contracts.

For more information visit: and .

9.11 Fast Payment Procedures

When Fast Payment is selected as the payment method for the procurement of supplies, there are several administrative procedures that must be adhered to following contract award. These procedures are outlined in .

9.12 Claims and Requests for Equitable Adjustment

As regulatory requirements for claims and requests for equitable adjustment are the same regardless of acquisition value, the procedures provided under are applicable to simplified acquisitions.

9.13 Withdrawal and Cancellation of Purchase/ Delivery Orders

Withdrawal. A unilateral PO that has not been accepted in writing or where performance has not yet been initiated by the Contractor may be withdrawn at any time before (a) the Contractor furnishes the supplies/services, or (b) the Contractor proceeds with work to the point where substantial performance has occurred. The Contracting Officer may withdraw the order through use of a unilateral modification.

Cancellation

A PO may be cancelled if acceptance has not yet occurred or by mutual agreement between the Government and the supplier. A partial cancellation occurs if, after placing an order, the Contracting Officer decides that some of the items from that order should be deleted. Only a Contracting Officer has the authority to cancel a PO.
If, after acceptance, the Contracting Officer initiates cancellation, the Contractor shall be asked to agree to cancellation without cost or liability to either party. If the Contractor agrees, the cancellation is effected on an SF 30, signed by both parties. If the Contractor does not accept the cancellation or claims that costs have already been incurred, the Contracting Officer shall process the termination action as prescribed by . Before beginning such action, the case will be referred to CL field Counsel; action shall be withheld pending advice.

9.14 Terminations

As regulatory requirements for terminations are the same regardless of acquisition value, the procedures provided under are applicable to simplified acquisitions.

9.15 Contract File Maintenance, Close-Out, and Retention

Contract files are established and maintained to serve as a background for informed decisions at each step of the acquisition process, provide information for reviews and investigations, and furnish essential facts in the event of litigation or Congressional inquiries. The contract file must contain a complete and accurate record of the chronology of the purchase action. Once the contract is physically complete, deliveries and/or services have been completed by the Contractor and accepted by the Government (see ), the Procuring Contracting Officer or designated DCMA ACO must then close the contracts with assistance from the Customer/designated COR.

Maintenance

Proper documentation of the various business decisions involved in the procurement process is crucial. Regardless of the simplified acquisition method used, a file documenting all actions taken should be maintained for each purchase action. The contract file should contain anything that helps provide a complete history of the transaction. provides a comprehensive list of items generally maintained in a contract file. The following are few of the most important documents to be included in the contract file for acquisitions at or below the SAT:
1. A copy of the Purchase Request with evidence of available funds (including purchase description, all approvals, and the sole source justification, if applicable).
2. Documentation that the acquisition was synopsized, if applicable.
3. Complete record of the solicitation including Contractors contacted, responses received, evaluations, etc.
4. A copy of the award document (SF 1449, DD 1155, SF 44, etc.), documentation supporting basis for award and price reasonableness determination, and any other documentation.
5. A copy of SF 98 (e98) when an SCA wage determination (WD) has been requested.
6. A copy of all SCA/Davis-Bacon WDs received and incorporated into the order.
7. Documentation supporting administrative actions, including copies of all modifications.
8. Copy of invoices and evidence of receipt, inspection, and acceptance, if applicable.
In addition to the above listed items, for acquisition of commercial items under , several other items should be included in the contract file including, but not limited to, the following:

Brief description of the procedures used in awarding the procurement.
Statement that the test procedure was used.
Number of offers received.
Any sole source justifications obtained for the procurement.
Written determination of commerciality.
Results of market research.
Review by the Small Business Specialist.

File Documentation for GSA FSS Orders. For orders at or below the micro-purchase threshold, documentation, at a minimum, should consist of the Contractor’s name and address, contract number, the item purchased, the amount paid and Contractor delivery and payment terms. Orders over the micro-purchase threshold, as a minimum, should contain the same information for each Contractor reviewed. Additional supporting file documentation should be provided if the Contracting Officer selects a Schedule Contractor on a basis of other than price. The Contracting Officer should document the file with the basis by which he/she determined the proposed DO offers the best value to the Government, price and other factors considered.

Close-Out

The Contracting Officer shall close out simplified acquisitions upon evidence of receipt, acceptance, and final payment. The Contracting Officer may use one of two methods to close out contract files:

Consider the file closed when he/she receives evidence of receipt of property and final payment.
Consider the file closed 180 days after the scheduled delivery date unless there is indication that final delivery and final payment have not occurred by that date.

Contract completion documentation should be limited to a statement in the file that it is closed out per one of the two methods listed above. Contracting Offers remain responsible for ensuring that Contractors are paid in a timely manner and the Customer receives the goods and/or services purchased.
A straw-man checklist of actions to accomplish when closing a contract, as they are applicable, follows:

Review contract data and confirm all deliveries accepted
Identify and deobligate excess funds*
Complete any price revisions
Ensure the prime Contractor settles all subcontracts
Ensure indirect costs are settled
Ensure there are no outstanding Value ECPs
Ensure final patent report is cleared
Ensure final royalty report is cleared
Dispose of GFP
Dispose of classified documents
Termination docket is completed
Ensure Contractor’s final closing statement is completed
Ensure Contractor’s final invoice has been submitted
Ensure Contract audit is completed

The ACO/Contracting Officer is responsible for all other contractual actions including deobligating unliquidated obligations.
For contracts that are administratively complete, the DoD has special authority until September 30, 2007, to financially settle contracts that were entered into before October 1, 1996, and that have an unreconciled balance less than $100,000, positive or negative. For more information, see the .

Retention

10.0 Special Attention Items

Many questions arise concerning how to appropriately use funds (both appropriated and non-appropriated funds) to accomplish the various missions of the Marine Corps. Procurement officials and those in supervisory and command positions must be aware that the consequence of using Marine Corps funds inappropriately could lead to a member or employee being held personally responsible for commitments and purchases made by them. For this reason, any question of whether a contemplated action is appropriate must be resolved prior to entering any agreement that commits (or appears to commit) the Marine Corps to payment. Procurement officials and others shall seek the advice of Comptroller, CL field Counsel, and/or HQMC, I&L (Contracts) to ensure actions are legitimate and legal prior to any action taken.

Procurement officials should ensure that written guidance is received for questionable procurements and include that guidance in the procurement files.

The Comptroller General of the United States has reviewed many such inquiries and has issued published rulings on them. A compilation of decisions of the Comptroller General is contained in the Government Accountability Office (GAO) publication "Principles of Federal Appropriations Law," available on the .

Government employees should never sign Vendor agreements. Only USMC forms and methods of payment should be used.

10.1 Actions Subject to the Availability of Funds

What is the correct course of action when the Customer must have an order in place for continuing services (never new requirements or actions) on 1 October? Typically, Congress has not yet appropriated the funds necessary to commit the Government to the expenditure and The Anti-Deficiency Act prohibits a Contracting Officer from obligating funds in advance of the appropriation. Nevertheless, has included provisions that will enable the Contracting Officer to issue orders in advance of the appropriation for requirements of continuing supplies and/or services. The Contracting Officer may initiate a contract action properly chargeable to funds of the new fiscal year before these funds are available, provided that the contract includes the clause at , Availability of Funds (see (a)).

This authority may be used only for operation and maintenance and continuing services (e.g., rentals, utilities, and supply items not financed by stock funds) that are necessary for normal operations and for which Congress previously had consistently appropriated funds, unless specific statutory authority exists permitting applicability to other requirements. Additionally, the PO/DO must contain Availability of Funds and Availability of Funds for the Next Fiscal Year if the contract is a one-year indefinite quantity funded by annual appropriations.

Once funds have been appropriated, a modification to the order must be issued, citing the authority of the Availability of Funds clause. The amount of funds made available should be indicated in the modification. For example, if a Continuing Resolution is in effect (funding for continued operations for a short period of time such as one month), the modification should indicate that funds are available for that period of time only, such as “This modification is issued to provide funds for the period of October 1 through October 31, 20XX in the amount of $5,000.”

This type of modification should be issued until the entire appropriation has been received. At that time, the Contracting Officer should issue a modification to the order that provides funds for the remainder of the fiscal year. This enables a Contractor to perform work, invoice, and receive payment.

The Government shall not accept supplies or services under a Purchase Order/Modification conditioned upon the availability of funds until the Contracting Officer has given the Contractor notice. This notice must be confirmed in writing, by issuance of a modification, that funds are available.

10.2 Audio-Visual Suites

DoD has established single Agency item managers for a wide variety of products and supplies used across multiple Agencies. sets forth the procurement rules and regulations for coordinated acquisitions. Equipment for capabilities such as Video Teleconferencing (VTC) and similar equipment identified by the Federal Supply Class Code (FSC) of 5820 are covered under that section of the DFARS. For any VTC or similar equipment procurement that exceeds the Simplified Acquisition Threshold (SAT), the item manager, Television-Audio Support Activity (T-ASA) of the Defense Media Center (DMC), must be contacted to handle the procurement or to grant a waiver to permit local purchase. Systems of this type usually require Procurement, Marine Corps (PMC) funds to acquire the equipment. Proper funding must be verified with the Comptroller.

For contact information, visit the website.

10.3 Combat Camera (COMCAM)

Combat Camera (COMCAM) is the acquisition and utilization of still and motion imagery in support of combat, information, humanitarian, special operation forces, intelligence, reconnaissance, engineering, legal, public affairs and other operations involving the military services.

Pursuant to , "Joint Combat Camera (COMCAM) Program," still and motion imagery used for Marine Corps training is acquired by the COMCAM forces. When contracting for video services, contact Training and Education Command (TECOM), Combat Camera Management Division (CCM468), (703) 784-2878

10.4 Awards and Recognition

The Marine Corps provides recognition in a variety of circumstances, both internal and external to the Marine Corps. The use of appropriated funds is authorized for the formal or informal presentations of items such as medals, plaques, certificates, and pins to military and civilian personnel as long as the purchase and presentation are accomplished in compliance with and other published directives. Awards may also be granted for a variety of specific reasons as authorized by other approved instructions.

10.5 Business Cards

Under DoD/DON policy, only General Officers, Flag Officers, or Senior Executive Service (SES) members are authorized to print business cards for those positions that require business cards in the performance of their official duties. Government employees may print business cards provided DON senior officials have approved the printing and existing software/agency purchased card stock is being used. Local production of cards will use Marine Corps standard computer hardware and software, using standard unit procurement procedures and policies.

10.6 Cellular Telephones

The only allowable contractual vehicles for procurement of DON Continental United States (CONUS) wireless equipment and services are: (a) Fleet and Industrial Supply Center, San Diego (FISCD) and (b) Navy Marine Corps Intranet (NMCI).

Requirements less than $2,500 per year must be bought and paid for with the Governmentwide Commercial Purchase Card (GCPC). For requirements between $2,500 and $100,000 per year, oral orders may be placed with the GCPC as the method of payment. All other requirements (those exceeding $100,000 per year) must be placed on an SF 1449 or DD 1155.

Each of these orders may only be placed by persons with the requisite ordering authority. The Head of the Contracting Agency (HCA) must provide a separate delegation of authority for activities to place oral orders between $2,500 and $100,000. Orders exceeding $100,000 require delegation of authority to place written orders. All orders exceeding an activity’s delegated letter of authority (or for those without a delegation of ordering authority) must submit a NAVCOMPT Form 2276, Request for Contractual Procurement, to their designated contracting office.

Government-issued cellular telephones or calling cards may be issued to personnel in need of telecommunications services. In other cases, use of a personal cellular telephone for DON business may be authorized but must be approved prior to use.

10.7 Conferences

Per 5 U.S.C. 5707, when planning a conference, the Contracting Officer must:

Minimize all conference costs as well as attendee travel time and costs.
Maximize the use of Government-owned or Government-provided conference facilities to the greatest extent possible.
Identify opportunities to reduce costs in selecting a particular conference facility and location (e.g., seek off-season rates).
Ensure that the conference planner does not retain for personal use promotional benefits received from a travel service provider as a result of booking the conference.
Develop and establish internal policies to ensure these standards are met.

, requires the documentation of cost analysis of conference location options and an explanation of other decision factors. When planning a conference, consider all costs to be incurred by the Government, whether direct or indirect, such as the following:

Authorized travel and per diem expenses
Audiovisual and other equipment usage
Computer and telephone access fees
Refreshments
Printing
Printing
Ground transportation

, prohibits Marine Corps activities from charging a conference fee to offset the cost of holding a conference, or to reimburse or supplement the appropriation from which the conference is funded unless specifically authorized by statute. Note that the DON has implemented the guidance of a provision in the FY 07 National Defense Authorization Act that provides limited authority to collect fees from individuals and commercial participants attending DoD-sponsored events and credit those fees to agency appropriations or accounts that incurred the event costs when approved; however, the Marine Corps opted not to implement this authority. Therefore, Marine Corps activities that sponsor a conference must fund all costs from mission funds.

GAO provides guidance on using appropriated funding for conferences: . All training must comply with the Government Employees Training Act definition of training in 5 U.S.C. 4101(4).

DON, ASN (Financial Management and Comptroller) Memorandum for Distribution. The DON has provided guidance on the use of appropriated funds to purchase food for events and clarified rules for conference fees. The memorandum states that as a general rule, food is a personal expense for which appropriated funds are not available without legal authority. The following is a list of exceptions in the context of conferences, meetings, and events:

Award Ceremonies: Food may be purchased only if all of the following criteria are met:

Award recipients are either Federal employees or military members,
Award recipients are publicly recognized, and
The authorized DON official has determined that food materially advances the recognition of the recipient.

Cultural Awareness Ceremonies: Food may be purchased only if all of the following criteria are met:

The food is part of a formal program intended to advance Equal Employment Opportunity (EEO) objectives and to make the audience aware of the cultural or ethnic history being celebrated,
The food is a sample of the food of the culture and is being offered as part of the larger program to serve an educational function, and
The portions and selection of dishes do not constitute a meal, for which appropriated funds are not available under this exception.

Training: Appropriated funds may be used to cover food costs that constitute a non-severable portion of the registration or attendance fee for a training program. Food costs are non-severable if they are billed as part of the overall costs of the training sessions and the costs cannot be reduced by foregoing the food or by breaking out the food costs as a separate optional item. If food costs are a severable part of the registration fee, appropriated funds are available for such costs only where necessary for the employee to obtain the full benefit of the training. For example, where essential training is conducted during a luncheon session, food may be provided at Government expense. Simply labeling a session as a "training event" is not sufficient; instead, the event must be a substantive program designed to improve trainee and agency performance.

Conferences Sponsored by Non-Federal Entities

The DON may pay or provide reimbursement for food purchased as a non-severable, non-negotiable portion of a registration or attendance fee.
If the cost of the food or meals is severable, appropriated funds are available only to the extent that all of the following criteria are met:

The expenditure is necessary to obtain the full benefit of the meeting or conference,
Meals and refreshments are incidental to the meeting or conference, and
The employee cannot take the meals elsewhere without missing formal discussions, lectures, or speeches that are essential parts of the conference.

Conferences Sponsored by Another Government Agency. The DON may pay for food for an employee if the criteria for "conferences sponsored by non-Federal entities – severable fee" above are met, and the meeting or conference involves matters of topical interest to multiple agencies and/or nongovernmental participants.

Formal DON/DoD Conferences. Food may be purchased only if all of the following criteria are met:

The conference is a formal conference with registration, a published and substantive agenda, and scheduled speakers,
The conference involves matters of topical interest to actual participants from multiple agencies and/or nongovernmental participants,
Meals and refreshments are incidental to the overall purpose of the formal conference,
Attendance at the meal or when refreshments are provided is important to the host agency to ensure the attendees' full participation in essential discussions and speeches concerning the purpose of the conference, and
The meal and refreshments are part of a formal conference that includes not just the meal and refreshments and discussions or speeches that may take place when the meal and refreshments are served, but also substantial sessions apart from those sessions at which food is served.

DON/DoD-supported Conferences Where Food Creates No Additional Cost. Food may be provided at meetings sponsored by DoD to discuss day-to-day operations of the Government, or other Government-sponsored conferences in situations where all of the following criteria are met:

The meeting is held at an outside facility,
The cost of the food is a non-severable, non-negotiable portion of the cost of the conference space, and
The cost of the space is demonstrably priced competitively with facilities at which food is not provided.

Fiscal Policy Associated With Conference Fees

Although appropriated funds may be used to purchase food, as described in this subsection, a host agency may not charge an official registration or other fee, including for food, to defray the costs of the conference. This is a consequence of the miscellaneous receipts statute, 31 USC Section 3302(b), which requires that funds collected for the Government be deposited into the general Treasury (miscellaneous receipts) absent statutory authority to do otherwise.
Conference organizers may, however, collect personal funds unofficially from participants to purchase snacks and refreshments. Such collections must be truly voluntary, and the funds collected may not be commingled with or augmented by appropriated funds. These unofficial costs are not reimbursable to the attendee/conferee.
To the extent that meals are provided at Government expense to travelers receiving per diem, the traveler must document receipt of the meal on his or her travel voucher.

Light Refreshments at Conferences. Per , appropriated funds are not authorized to pay for light refreshments at conferences.

10.8 Plaques, Ashtrays, Greeting Cards, and Other Mementos as Give-Away Items

Appropriated funds shall not be used to purchase give-away items. All such items are viewed by GAO as personal gifts, for which appropriated fund use is not appropriate. The only exception is when there is a direct connection between a particular give-away item and the purpose for which the appropriation was made. Further, it must be determined that the item was essential to the carrying out of such purpose.

If a requiring activity has funds, they may be used to purchase mementos (not exceeding $200 in cost) used in connection with ceremonies, dedications, or official functions. These mementos may not be personal items, but rather Command mementos, such as plaques.

10.9 Printing and Duplication

If the Document Automation and Production Service (DAPS) is unable to provide the required printing or duplication services, Contracting Officers may only purchase these services when specifically approved in writing by the cognizant DAPS office. The term “printing” includes and applies to the processes for composition, plate making, presswork, binding, and microfilm; the equipment used in such processes; and the items produced by such processes and equipment. All questions with regards to printing and duplication should be referred to DAPS, which may be accessed at: . More information on DAPS can be found in .

Two exceptions exist:

Commercial Off the Shelf (COTS) publications that are regularly carried as stock items or used for commercial use.
Commercial manuals (i.e., manuals accompanying commercially available products).

10.10 Tax Exemption

Generally, the U.S. Government is exempt from payment of taxes on purchases. This exemption applies to purchases of both property and material acquired with appropriated funds for Government use. The exemption does not apply to items purchased by Contractors or the Federal Excise Tax imposed on specific items (e.g., tires). Contractors are required to include all Federal, state and local taxes in their bid/quote in accordance with ; it is improper for a Government official to provide the USMC's tax exemption certificate or number to a Contractor who is purchasing items necessary to perform a contract (e.g., construction).

10.11 Training

Training that is regularly scheduled, open to the general public, and priced the same for everyone should be authorized and obtained by the training officer on an Authorization, Agreement, and Certification of Training (). This action does not involve a contracting function and FAR and DFARS rules do not apply. The GCPC shall be used in conjunction with the SF 182 as a method of payment for training up to $25,000. See the for more information on the SF 182.

When using the GCPC as a method of payment against the SF 182, the training/financial officer shall ensure that the form reflects the fact that payment will be made by the GCPC. For command specific training, the command has the flexibility to establish local procedures regarding the amount of cardholder information to be included on the SF 182. Cardholder information is, however, covered under the Privacy Act and must be protected accordingly. Contracting Officers shall follow local procedures for ensuring that funds are obligated appropriately and that all obligations are recorded in the financial system prior to issuance of the SF 182.

In the case of training that is developed for and attended by only Marine Corp personnel (military and/or civilian), the authorized Contracting Officer may contract for the course on behalf of and as requested by the training officer. The GCPC can be used for open market training up to $2,500. See for more information.

10.12 Unauthorized Purchases

Items such as bottled water and food items are considered personal expenses. Government employee salaries are presumed adequate to enable individuals to purchase these items on their own.

Drinking Water. Bottled or potable water cannot be purchased using appropriated funds unless a medical/health official determines and documents in writing that the local available water is unfit due to medical or sanitary reasons. Appropriated funds may be used to provide safe drinking water to employees only on the grounds of necessity, defined by the following situations:

No potable water is available.
Water is contaminated.
There is an urgent need for water that could not otherwise be met.

10.13 Ratification of Unauthorized Commitments

As regulatory requirements for the ratification of unauthorized commitments are the same regardless of acquisition value, the procedures outlined in are applicable to and shall be used for simplified acquisitions.

10.14 Procurement Performance Management Assessment Program (PPMAP)

Per , Heads of Contracting Activities (HCAs) are responsible for oversight and review of their subordinate contracting organizations. The Procurement Performance Management Assessment Program (PPMAP) performs this oversight and review function of the MCFCS on behalf of the HCA.

The PPMAP also encourages and assists the MCFCS in making continuous improvements to their acquisition processes, providing a mechanism for sharing "best practices" throughout the Marine Corps. The MCFCS PPMAP is a flexible, performance-based, process-oriented program that includes self-assessment of the control of and continuous improvement in critical procurement processes and performance-based metrics. Generally, MCFCS PPMAP on-site visits will be scheduled and conducted every three years as established by HQMC, I&L (Contracts) PPMAP Program Managers. At the conclusion of each on-site visit, an outbriefing will be conducted with senior personnel and a resultant report will be provided to the MCFCS field office.

HQMC, I&L (Contracts) provides to the Deputy Assistant Secretary of the Navy, Acquisition (DASN(A&LM)) a summary of relevant findings (best practices, deficiencies, recommendations, etc.) from the results of the previous fiscal year’s PPMAP activities no later than 30 December each year. DASN(A&LM) is notified immediately, however, any time an organization’s contracting authority or GCPC authority is revoked, suspended, or reduced.

For regulatory information regarding PPMAP, refer to and .