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(4) The dollar value of the proposed request form of the agency, or whatpurchase.
ever medium the purchaser is using as (5) Past experience concerning spe his basis for making the purchase, are cific dealers' prices.
satisfactory for this purpose. (d) Solicitation of quotations may be
(2) Written solicitations. Retention effected orally for purchases estimat
in the purchase files of written quotaed not to exceed $5,000. Written solici
tions received, or references to printed tations shall be used for all purchases
price lists used, will usually suffice as estimated to exceed $5,000, and should
the record supporting the price paid. be used for purchases not in excess of
(c) Purchase data collected or com$5,000 in such circumstances as where
piled during the course of arranging (1) the suppliers are located outside
the purchase are for administrative the local area, (2) special specifications are involved, (3) a large number of
and guidance value in making the puritems are included in a single proposed
chase and issuing the appropriate purprocurement, or (4) obtaining oral
chase document. The retention of quotations is not considered efficient.
such data in the purchase files for use Standard Form 18, Request for Quota
in subsequent reference, or as administions, shall be used for written solicita
tratively required by agencies for mantion of quotations in accordance with
agement review, should be limited in $ 1-16.201.
time and quantity to the minimum (e) Where it is the practice for sup necessary for such use. pliers to furnish standing price quota. (d) This § 1-3.603-2 is not to be contions on supplies or services required strued as modifying the requirements on an intermittent and recurring basis, of applicable regulations relating to this information may be used in lieu of the retention of records. obtaining individual quotations each time a purchase is contemplated. In § 1-3.604 Imprest funds (petty cash) such cases, the purchaser shall assure method. that the price information is current and that the Government obtains the
§ 1-3.604-1 General. benefit of maximum discounts.
This § 1-3.604 prescribes policies and (29 FR 10155. July 24. 1964. as amended at procedures for making small pur37 FR 13979, July 15, 1972; 39 FR 28437, chases of supplies and nonpersonal Aug. 7, 1974; 40 FR 44138, Sept. 25, 1975) services through the use of imprest
funds. Related policies and regulations § 1-3.603-2 Data to support small pur. concerning the establishment of and chases.
accounting for imprest funds are con(a) The manner of securing quota tained in Part IV of the Treasury tions and the nature and extent of in- Fiscal Requirements Manual for Guidformation to be required for small pur ance of Departments and Agencies. chases, are for determination by the procuring agency, but should be limit
[40 FR 44139, Sept. 25, 1975) ed to only that deemed necessary to
§ 1-3.604-2 Definition of imprest fund. conclude purchase action.
(b) The following are illustrative of The term "imprest fund” means a the extent to which quotation infor- fixed cash or petty cash fund in the mation should be recorded:
form of currency, coin, or Government (1) Oral solicitations. When oral check which has been advanced by an price quotations are obtained, infor official Government disbursing office, mal records should be established without charge to a Government apwhich will reflect clearly the propriety propriation or fund account, to a duly of placing the order at the price paid authorized cashier for cash payment with the supplier concerned. In most or other cash requirement purposes as cases, this will consist merely of show specified in his designation or authoriing the names of the suppliers contact- zation. The fund may be of a revolving ed and the prices and other terms and type, replenished to a fixed amount as conditions quoted by each. Handwrit- spent or used, or of a stationary ten notations on the purchase action nature such as a change making fund.
§ 1-3.604-3 Agency responsibilities.
(6) Expenses incident to travel and
emergency travel advances (in accordEach agency using imprest funds for
ance with Part IV of the Treasury small cash purchases of supplies or
Fiscal Requirements Manual for Guidnonpersonal services shall have the re
ance of Departments and Agencies, sponsibility of periodically reviewing
Section 3040). and determining whether there is continuing need for each fund estab (29 FR 10155, July 24, 1964, as amended at lished, and that amounts of such
40 FR 44139, Sept. 25, 1975) funds are not in excess of actual needs. Agencies should take prompt
§ 1-3.604-5 Limitations. action to have imprest funds adjusted (a) Small purchases made pursuant to a level commensurate with demon- to imprest fund procedures may not strated needs whenever circumstances exceed $150 for any one transaction, warrant such action. In this connec- except that under emergency condition, each agency shall:
tions the amount for any one transac(a) Study agency practices to insure tion may be increased not to exceed that full advantage is taken of all $300. Exceptions or additions needed small purchase processes; and
in connection with procurement mat(b) Develop and issue appropriate ters described in § 1-3.604-4, as well as implementing regulations.
the maximum dollar limitation for any
one procurement transaction, should § 1-3.604-4 Use of imprest funds.
be addressed to the Treasury Depart(a) The cash payment processes de
ment pursuant to Part IV of the scribed in this section should be used
Treasury Fiscal Requirements Manual for making small purchases whenever
for Guidance of Departments and advantageous to the Government.
Agencies. The granting of any such exCash purchases will generally be ad
ad: ceptions or additions will be coordinatvantageous in the following circum
ed with the Administrator of General stances:
Services or his designee. Approved ex(1) When vendors are reluctant to
ceptions now existing will automaticalhonor small purchase orders.
ly be continued without specific re(2) When vendors are not equipped
quest from the agency to which excepto bill agencies for purchases in ac
tions have been granted. cordance with normal business prac
(b) Supplies or services subject to retices.
strictions under any provisions of law (3) When supplies or nonpersonal
or regulation may not be purchased services are needed at locations not
through use of imprest funds except served by purchase offices or when the
with such statutory and regulatory reestablished sources of issue are not
strictions. conveniently accessible to point of use. (29 FR 10155, July 24, 1964, as amended at
(4) When provisions for local credit 40 FR 44139, Sept. 25, 1975) arrangements and monthly billings by vendors are impracticable.
§ 1-3.604-6 Procurement and payment. (b) The following are typical pro (a) Small purchases utilizing imprest curements for which the use of im- funds may be made only by authorized prest funds would be suitable:
employees. (1) Emergency, fill-in, occasional, or (b) When payment for small purspecial purchases of supplies or serv chases is made from imprest funds, no ices.
purchase order need be issued unless it (2) Repair of equipment.
is advantageous to the Government, (3) Perishable subsistence.
for example, when required by the (4) Public utility bills where location vendor to grant Government disof the activity is so situated as to make counts. When so required, any authorcash payment more efficient.
ized purchase order form may be used (5) Postage stamps, parcel post, and will be endorsed “payment to be COD, postal charges, local drayage, made in cash." transportation tokens or passes (in (c) Receipts must be secured for cluding cash fares), and taxi fares. each payment from imprest funds
(pursuant to the provisions of GAO Manual 7 GAO 5120).
(d) The cashier may either reimburse employees for amounts paid by them for authorized purchases or furnish the cash necessary to consummate such purchases. Purchases for which cash has been furnished in advance should be confirmed within five work days from the date of advance.
$ 1-3.604-7 Tax exemption certificates.
Government tax exemption certificates (Standard Form 1094-Revised) will not be required unless the amount of the taxes on any one bill or purchase exceeds one dollar. (See GAO Manual of Policies and Procedures, Title 7, section 4820.10).
$ 1-3.605 Purchase order forms. $ 1-3.605-1 Standard Form 44, Purchase
Order-Invoice-Voucher. (a) Purpose of the form. Standard Form 44, Purchase Order-InvoiceVoucher (illustrated in § 1-16.901-44), is a pocket-size purchase order form designed primarily for on-the-spot over-the-counter purchases of supplies and nonpersonal services. It is a multipurpose form which can be used as a purchase order, receiving report, invoice, and public voucher.
(b) Prescribed use. Standard Form 44 is prescribed for use in connection with the documentation of purchases when all of the following conditions are satisfied:
(1) Except for purchases made under public exigency circumstances, the amount of the purchase is not in excess of $2,500.
(2) The supplies or services are immediately available.
(3) One delivery and one payment will be made.
(4) Its use is determined to be more economical and efficient than use of other small purchase methods.
(c) Terms and conditions. There are no written terms and conditions in cluded on Standard Form 44. Since there is, for all practical purposes, simultaneous placing of purchase orders on Standard Form 44 and delivery of the items ordered, written terms and conditions are not considered necessary.
(d) Instructions for use. General procedural instructions governing the use of Standard Form 44 are printed on the form and on the inside front cover of each book of forms.
(e) Agency implementation. Agency implementation shall be consistent with this § 1-3.605-1, and shall provide adequate safeguards regarding the control of forms and accounting for purchases.
(f) Description and availability of form. (1) Standard Form 44 is available from General Services Administration supply depots in four-part carbon interleaved sets made up into books, consisting of twenty-five sets per book. Each set of forms consists of the following copies: Seller's Invoice, Seller's Copy of Order, Receiving Report-Accounting Copy, and Memorandum Copy. Standard Form 44 may be ordered in the same manner as other standard forms, or the form may be ordered specially printed in accordance with paragraph (f)(2) of this § 13.605-1.
(2) Standard Form 44 may be ordered specially printed (i) to include agency name, address, and serial numbers; and (ii) on special weight of paper and with the type of construction, number of sets per book, and number of parts per set, as specified by the ordering agency. Also, the administrative instructions on the inside front cover of the books may be supplemented by using agencies. However, the format of Standard Form 44 may not be changed unless otherwise authorized by the General Services Administration.
8 1-3.605-2 Standard Forms 147 and 148,
Order for Supplies or Services. (a) General. (1) Standard Form 147, Order for Supplies or Services (illustrated in § 1-16.901-147) and Standard Form 148, Continuation Sheet (illustrated in § 1-16.901-148), are multipurpose forms designed for use as a purchase order, delivery order, receiving and inspection report, and invoice.
(2) Standard Forms 147 and 148 are available for use by all Federal agencies and shall be used when in the judgment of the agency concerned the use of such forms is considered economical and efficient.
(3) Standard Form 147 is designed of Standard Forms 147 and 148 may primarily for use as:
not be changed unless authorized by (i) A purchase order for small pur- the General Services Administration. chases not in excess of $10,000.
(29 FR 10155, July 24, 1964, as amended at (ii) A delivery order for ordering or
39 FR 28437, Aug. 7, 1974; 40 FR 44139, scheduling deliveries against estab
Sept. 25, 1975) lished contracts or from Government sources of supply.
§ 1-3.605-3 Agency order forms. (b) Terms and conditions. (1) Terms and conditions generally suitable for
Where Standard Forms 147 and 148
are not used, order forms designed by most small purchases are printed on
executive agencies shall conform insothe reverse of Standard Form 147. (2) Additional terms and conditions,
far as practicable with the form illus
trated in § 1-16.901-147. which are consistent with those printed on the form, may be added by agen
§ 1-3.606 Blanket purchase arrangements. cies provided they are designated as agency terms and conditions, and not
§ 1-3.606-1 General. as standard terms and conditions of Standard Form 147.
This section establishes policy relat(3) The following terms and condi
ing to the purchase of day-to-day retions shall be added or incorporated
quirements through arrangements by reference whenever Standard Form
with vendors or dealers to furnish, on 147 is used for small purchases in
a “charge account” basis, such supexcess of $2,500:
plies or nonpersonal services as the (i) Employment of the Handicapped.
Government may order from such Section 1-12.1304-1.
sources during a stated period of time. (ii) Contract Work Hours and Safety
Generally, these arrangements should Standards Act-Overtime Compensa
be made only with local sources so tion. Section 1-12.303.
that individual purchases thereunder (4) The following terms and condi
can be effected with a minimum of tions shall be added or incorporated
time and paper work. In addition to by reference whenever required by
making blanket purchase arrangethese regulations:
ments for small purchases, similar (i) Service Contract Act of 1965. Sec
blanket purchase accounts may be estion 1-12.904-1 (Service contracts in
tablished with Federal Supply Schedexcess of $2,500.)
ule contractors, if not inconsistent or (ii) Service Contract Act of 1965. Sec
at variance with the terms of the aption 1-12.904-2 (Service contracts not
plicable Federal Supply Schedule Con
tract. exceeding $2,500.) (c) Description and availability of
8 1-3.606-2 Authority to use blanket pur. forms. (1) Standard Forms 147 and 148 are available from General Services
chase arrangements. Administration supply depots in
(a) Blanket purchase arrangements carbon interleaved sets of six parts are authorized when: and may be ordered in the same (1) A wide variety of items in a broad manner as other standard forms, or class of goods, like hardware, are genthe forms may be ordered specially erally purchased from local suppliers printed in accordance with paragraph but the exact items, quantities, and de(c)(2) of this § 1-3.605-2.
livery requirements are not known in (2) Standard Forms 147 and 148 may advance and may vary considerably. be ordered specially printed (i) to in- (2) There is a need to provide local clude agency name, address, and serial commercial sources of supply for one numbers; and (ii) on special weight of or more offices or projects in a given paper and with the type of construc- area that do not have or need authori. tion, and number of copies per set, as ty to purchase otherwise. specified by the ordering agency. The (3) In any other case where the writforms may be made up as snap-outing of numerous purchase orders can manifold forms, cut sheets, or repro- be avoided through the use of this ducible masters. However, the format procedure.
(b) Blanket purchase arrangements emption purposes; when administrashould be made with local firms from tively deemed necessary in the best inwhom numerous individual purchases terests of the Government by an will likely be made in a given period. agency; or when it is necessary to fix For example, where past experience the extent of items covered, quantity, has shown that certain commercial prices, expenditure authorized, activifirms selling supplies in a local area ties participating, or otherwise identiare dependable and consistently lower fy or isolate areas of the arrangement. in price than other supply firms in the The issuance of a purchase order for area dealing in the same commodities, Government purchasing or accounting and numerous small purchases are reasons alone is not necessary. usually made from such suppliers, it (1) Purchase orders establishing would be advantageous to establish blanket purchase arrangements, when blanket purchase arrangements with required, may be general and broad in these firms.
language with only sufficient detail to (c) There is no prohibition against indicate the general nature of supplies making these arrangements with sev or services to be covered, and may or eral suppliers for the same class or may not, as the need dictates, be speclasses of items. Where experience in cific as to quantity, quality, specificadicates that prices vary between sup tions, or time limitation. The blanket pliers, it is preferable to have several purchase orders may be issued on any blanket purchase arrangements so authorized purchase order form. Indithat delivery orders can be placed with vidual blanket purchase orders termithe firm offering the best price.
nate when the purchases thereunder
total the dollar amount limitation or $ 1-3.606-3 Establishment of account. when the stated time period expires.
If it is determined that blanket pur (2) In any contemplated amendment chase arrangements with certain sup of a blanket purchase order, due conpliers would be advantageous, such sideration should be given to possible suppliers should be contacted, prefer changes in market conditions, sources ably in person or through correspond- of supply, etc., which may warrant ence, in order to make the necessary placing a new order with the same or a arrangements with respect to securing different source in preference to maximum discounts, documenting the amendment. individual purchase transactions, periodic billing, and other necessary de
§ 1-3.606-5 Agency implementation. tails.
The following general instructions
are set forth for agency use in the is$ 1-3.606-4 Documentation.
suance of administrative regulations (a) Any documentation that assures implementing this policy: the following with respect to individu (a) The vendor-agency relationship al purchase transactions is permissi- is that of an open account limited only
by the maximum amount and time (1) That the vendor and purchaser period limitations fixed by that are in agreement as to what is being agency. purchased.
(b) The vendor-agency arrangement (2) That at the time of delivery a may be limited to furnishing individurecord of sale and receipt is created. al items, or commodity groups or
(3) That at the time of billing for classes, or it may be unlimited for all payment the foregoing requirements items or services that the source of have provided evidence of the items, supply is in a position to furnish. quantity, price, date sold and other (c) The requirements of one or more relevant data.
activities, offices, or projects in a geo(b) The issuance of a formal pur graphical area may be secured by this chase order to document blanket pur- means. chase arrangements may be necessary (d) Authority and responsibility for only in certain instances. Such in effecting blanket purchase arrangestances may be: When required by the ments should be delegated by agencies vendor for administrative or tax ex to the lowest agency level to which the