authorized to place calls under the agreement, identified by organizational component, and the dollar limitation per call for each individual shall be furnished the supplier by the contracting officer.

(6) Delivery tickets a requirement that all shipments under the agreement shall be accompanied by delivery tickets or sales slips which shall contain the following minimum information

(1) Name of supplier;

(11) Blanket purchase agreement number;

(iii) Date of call;

(iv) Call number;

(v) Identification of individual placing call;

(vi) Itemized list of supplies or services furnished;

(vii) Quantity, unit price, and extension of each item less applicable discounts; and

(viii) Date of delivery or shipment.

(7) Invoices one of the following statements:

(1) A summary invoice shall be submitted at least monthly or upon expiration of the blanket purchase agreement, whichever occurs first, for all deliveries made during a billing period, identifying the delivery tickets covered therein, stating their total dollar value, and supported by receipted copies of the delivery tickets;

or

(ii) An itemized invoice shall be submitted at least monthly or upon expiration of the blanket purchase agreement, whichever first occurs, for all deliveries made during a billing period and for which payment has not been received. Such invoices need not be supported by copies of delivery tickets; or

(iii) When billing procedures provide for an individual invoice for each delivery, these invoices shall be accumulated provided that:

(a) A consolidated payment will be made for each specified period; and

(b) The period of any discounts will commence on the final date of billing period or on the date of receipt of invoices for all deliveries accepted during the billing period, whichever is later. The provision in subdivision (iii) of this subparagraph should not be used if the accumulation of the individual invoices by the Government materially increases the administrative costs of this purchase method.

(8) The special data required by § 3.606-3 (b) when it is desired to use the fast pay procedure.

[30 F.R. 5972, Apr. 29, 1965, as amended at 30 F.R. 14086, Nov. 9, 1965]

§ 3.605-4 Competition under blanket purchase agreement.

Calls against blanket purchase agreements shall be placed only after compliance with $3.604. When concurrent agreements for similar items are in effect, calls not in excess of $250 shall be equitably distributed. In those instances where there are an insufficient number of BPAs for any given class of supplies or services to assure adequate competition, the individual placing the order shall solicit quotations from other

sources.

§ 3.605-5 Calls against blanket purchase agreements.

Calls against blanket purchase agreements generally will be made orally, except that informal correspondence may be used when ordering against agreements outside the local trade area. Documentation of calls shall be limited to essential information.

§ 3.605-6 Receipt of material.

Acceptance of supplies or services shall be indicated by signature and date on the sales slip or delivery ticket after quantities have been verified and any exceptions noted. Material Inspection and Receiving Report (DD Form 250) may be used for this purpose. For blanket purchase agreements incorporating the fast pay procedure, acceptance shall be predicated on the supplier's certification in accordance with paragraph (c) of the clause in § 3.606-3(b) (4). Suppliers' invoices shall be processed for payment at the end of each billing period.

§ 3.605-7 Review procedures.

The contracting officer or his designated representative shall review the blanket purchase agreement files at least semiannually to assure that authorized procedures are being followed. When an activity ordering against a blanket purchase agreement does not come under the jurisdiction of the command of thei contracting officer issuing the agreement, the command utilizing the blanket purchase agreement shall conduct the necessary review.

The fast payment procedure is designed to reduce lead time to consignees and to improve supplier relations by expediting payment for small purchases. The procedure provides for payment for supplies based on the contractor's certification on the invoice that the supplies have been delivered to a post office, common carrier or point of first receipt by the Government, and that the contractor agrees to replace, repair, or correct supplies not received at destination, damaged in transit, or not conforming to purchase agreements.

§ 3.606-2 Conditions for use.

The fast payment procedure is authorized for use only when:

(a) Individual purchase orders do not exceed $2,500;

(b) Title to the supplies will vest in the Government (1) upon delivery to a post office or common carrier for mailing or shipment to destination, or (2) upon receipt by the Government when the shipment is by means other than the post office or common carrier;

(c) Supplier agrees to replace, repair, or correct supplies not received at destination, damaged in transit, or not conforming to purchase requirements; and

(d) Supplier will execute a certificate of mailing or shipment, or a certificate of delivery to the point of first receipt by the Government.

§ 3.606-3 Preparation and execution of orders.

(a) Orders shall be issued on Order for Supplies or Services (DD Form 1155), except that calls against blanket purchase agreements shall be issued in accordance with § 3.605-5. Orders may be either priced or unpriced.

(b) Special data to be included on purchase orders or in blanket purchase agreements using fast pay procedures

are:

(1) A requirement for the supplies to be shipped transportation or postage prepaid;

(2) A requirement that invoices be submitted direct to the finance or other office designated in the order, or in the case of unpriced purchased orders, to the contracting officer (see § 3.608-3(c)). (In the case of multiple deliveries, in

voices will not be processed for payment until the order is completed.) ;

(3) The following statement or consignee's copy:

Consignee's notification to purchasing activity of nonreceipt, damage, or nonconformance. The consignee shall notify the purchasing activity promptly after specified date of delivery in the purchase order, of supplies not received, damaged in transit, or not conforming to specifications of the purchase order. Under extenuating circumstances such notification should be made not later than 60 days after specified date of delivery.

(4) The following clause:

FAST PAYMENT PROCEDURE (NOVEMBER 1964) (a) General. This is a fast payment order. Invoices will be paid on the basis of the Contractor's certification thereon that articles listed in the order were delivered on a specified date to a post office, common carrier, or, in shipment by other means, to the point of first receipt by the Government. Only one payment will be made.

(b) Responsibility for supplies. Title to the supplies shall vest in the Government upon delivery to a post office or common carrier for shipment to the specified destination. If shipment is by means other than post office or common carrier, title to the supplies shall vest in the Government upon delivery to the point of first receipt by the Government. Notwithstanding any other provision of the purchase order, the Contractor shall assume all responsibility and risk of loss for supplies (1) not received at destination, (ii) damaged in transit, or (iii) not conforming to purchase requirements. The Contractor shall either replace, repair, or correct such supplies promptly at his expense, provided, instructions to do so are furnished by the Contracting Officer within ninety (90) days from the date these supplies were delivered by the Contractor to a post office or common carrier. For supplies delivered by means other than post office or common carrier, such ninety (90) day period shall commence from the date these supplies were delivered to the point of first receipt by the Government.

(c) Preparation of Invoice. (1) Upon delivery of supplies to a post office, common carrier, or in shipments by other means, the point of first receipt by the Government, the Contractor shall prepare an invoice in accordance with Clause 3 of the General Provisions of Purchase Order, except that invoices under a blanket purchase agreement shall be prepared in accordance with the provisions of the agreement. In shipments by either post office or common carrier, the

Contractor shall either (A) cite on his invoice the date of shipment, name and address of post office or carrier, bill of lading number or other shipment document number, or (B) attach copies of such documents to his invoices as evidence of shipment. In the case of delivery by other than post office or common carrier, a receipted copy of the Contractor's delivery document shall be attached to the invoice as evidence of delivery. Regardless of delivery method the invoice shall include the following signed certification:

I hereby certify that I did ship on

---)

(Date)

in accordance with shipping instructions issued by the ordering officer, supplies in the quantities shown hereon and that such supplies are in the quantity and of the quality designated by the cited purchase order. This statement is furnished to support payment of invoice.

(2) If the purchase price excludes the cost of transportation, the Contractor shall enter the prepaid shipping cost on the invoice as a separate item. The cost of parcel post insurance will not be paid by the Government.

(5) A requirement that outer shipping containers shall be marked "Fast Pay". § 3.606-4 Responsibility for collection of debts.

The contracting officer shall be primarily responsible for collecting debts resulting from failures of contractors to properly replace, repair, or correct supplies lost, damaged, or not conforming to purchase requirements (see §§ 163.100 and 163.101 of this chapter).

§ 3.607 Imprest fund method.

in most instances. Exceptions to this general rule may be justified for isolated activities when the location of the established fund is not readily accessible.

(b) Amount of imprest funds. The amount of each fund shall be established on the basis of the estimated monthly payments therefrom and the need for replenishment without undue administrative burden, but shall not exceed $5,000. A review shall be made at least quarterly to insure that the fund is not in excess of actual needs, and necessary adjustments shall be made.

(c) Imprest fund cashiers. (1) Imprest fund cashiers must be appointed by the head of an installation or activity to make authorized cash payments for materials and nonpersonal services, maintain custody of funds, and file periodic vouchers to account for and replenish the imprest fund. Disbursing officers and others responsible for originating, approving, processing and receiving requirements are not eligible for appointment as imprest fund cashiers. Exceptions to this rule may be granted by the major headquarters exercising control over the installation or activity. In no event shall an imprest fund cashier have access to or control of more than one imprest fund. Imprest fund cashiers shall be covered by appropriate position schedule bonds.

(2) Each appointment and termination of appointment shall be approved by the head of the installation or activity. After approval, administrative orders signed by the appropriate authority shall be issued. Appointment orders shall contain the following:

(1) Name of individual and duty station;

(ii) Identification of disbursing station for which the cashier will act, including the accounting number assigned thereto;

(iii) Specific duties to be performed; (iv) Effective date; and

(v) Amount and location of fund. An alternate cashier may be appointed (see subparagraph 3 of this paragraph) on the same order as the principal. Two copies of the orders shall be furnished to cashiers, and one copy each to the disbursing office and the installation or activity purchasing office.

(3) An alternate imprest fund cashier may be appointed to provide service during the absence of the principal cashier. Appointment and surety bond requirements for principal cashiers shall apply

to alternate cashiers. In planned absences of the principal cashier, cash may be advanced by the principal to the alternate in any amount up to the limit of the fund. The principal shall obtain a signed cash receipt from the alternate. Upon resumption of his duties, the principal cashier shall return the cash receipt to the alternate after obtaining paid receipts, subvouchers (see § 3.607-4(f) (2)) and residual cash. In the unforeseen absence of the principal cashier, funds may be advanced to the alternate in the normal manner by the disbursing officer. These funds shall be in addition to the amount currently advanced to the principal cashier under the established fund, but shall not exceed the amount of the fund. Upon return of the principal cashier, the alternate shall return paid receipts, subvouchers, and residual cash, to the disbursing officer.

(a) Imprest funds may be used in accomplishing small purchases when all of the following conditions are present:

(1) The transaction is not in excess of $100 ($250 under emergency conditions); (2) The supplies or services are available for delivery within 30 days, whether at the supplier's place of business or at destination; and

(3) The purchase does not require detailed technical specifications or technical inspection.

(b) Imprest funds may also be used for payment of:

(1) Parcel post charges (including c.o.d. postal charge), and

(2) Local delivery charges, for supplies ordered for payment from imprest funds, when the vendor is requested to arrange for delivery, and

(3) C.O.D. charges for supplies ordered for payment from imprest funds except as limited by paragraph (c) (2) of this section.

(c) Imprest funds shall not be used for:

(1) Payments of salaries and wages;

(2) Payment of transportation charges (ie., line-haul or intercity charges for transportation services paid directly to a common carrier providing such services, as distinguished from transportation charges included as an integral part of the vendor's price);

(3) Advances, other than those authorized in § 3.607–4(d); or

(4) Cashing of checks or other negotiable instruments.

§ 3.607-4 Procedures.

(a) Procurement. Purchases from the imprest fund shall be based upon an authorized purchase request and shall be made only by the personnel authorized by the contracting officer. Orders may be placed orally without soliciting competition when prices are considered to be reasonable, but shall be distributed equitably among qualified suppliers. Prompt payment discounts shall be solicited, and a sales document shall be obtained to support the cash payment. An authorized purchase order form endorsed "Payment to be made from Imprest Fund" may be used when required by supplier for granting Government discounts, or tax exemptions. (Since purchases through the use of imprest funds are of relatively small value, Government tax exemption certificates generally will not be required.) When the proposed purchase price will exceed any stated monetary restrictions on the purchase request, additional authorization shall be obtained prior to making the purchase. Copies of the purchase request document shall be marked to show:

(1) That an imprest fund purchase has been made,

(2) The unit prices and extensions, (3) The supplier's name and address, and

(4) Anticipated date of delivery or pickup.

(b) Sales document. A sales document is a term applied to a supplier's invoice, sales ticket, packing slip, or any other sales instrument containing the following minimum information:

(1) Supplier's name and address;
(2) List of items;

(3) Quantity;

(4) Unit price and extension; and
(5) Cash discount, if any.

(c) Receipt of material. (1) All material purchased through the imprest fund shall be delivered to a designated receiving activity. The receiver shall examine the material to ascertain that the quantities and items described on the purchase request document and the supplier's sales document are present and in satisfactory condition. If the material is acceptable, the receiver shall stamp the supplier's sales document "Received and Accepted", date and sign the document, and pass it to the imprest fund cashier for payment. In the absence of a supplier's sales document, a

receipted Standard Form 1165 (Receipt for Cash-Subvoucher) or DD Form 1155 (Order for Supplies or Services) may be used to record the receipt of purchases made from the imprest fund and shall be processed in the same manner.

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

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

(d) Advance of funds. Individuals receiving a cash advance from the imprest fund cashier shall be required to sign the "Interim Receipt for Cash" portion of Standard Form 1165, or an equivalent receipt form. After the purchase has been made, the individual will return any unused cash to the imprest fund cashier with the necessary certifications of receipt, acceptance, and cash payment, at which time the imprest fund cashier shall "void" the interim receipt for cash. Cash so advanced should be accounted for daily, but under unusual circumstances cash may be advanced for longer periods. The requirement that the position of imprest fund cashier be covered under a position schedule bond does not extend to individuals to whom funds are advanced for making cash purchases.

(e) Certification of cash payment. The original receipt document (or a copy tendered as the original) presented to the imprest fund cashier for payment shall be stamped with a certification containing the following information:

(1) Statement that cash payment was received in full,

(2) Amount paid,

(3) Date of payment, and

(4) Signature and title of supplier or his agent receiving the cash payment. Alterations or corrections to documents tendered for payment shall be initialed by the person making the change.

Changes in the amount paid shall be in tialed by the individual receiving pay ment.

(f) Responsibilities of imprest fun cashier. (1) Pending receipt of materia the imprest fund cashier shall keep a fi of purchase request documents coverin imprest fund purchases. Prior to pay ment, or acceptance of the documer tendered for settlement of an advanc the cashier shall verify the necessar certification of receipt and the supplier billed price or the price paid. If th supplier's receipt for cash payment not obtained for purchases of $15 or less the imprest fund cashier shall sign th cash receipt document. Receipt for U.S parcel post c.o.d. charges should be ob tained on Standard Form 1165. Whe receipt cannot be obtained for c.o.d. pur chases, imprest fund cashiers located i foreign countries are authorized to certi fy on the receipt document, "Delivere by (name of post office or carrier) no re ceipt given." The c.o.d. label shall b removed from the parcel and affixed t the receipt document in support of th reimbursement voucher. Imprest fund cashiers at any location may accept signed c.o.d. receipt to support the sub voucher if the carrier refuses to sign Government form.

(2) After completion of settlemen transaction, each subvoucher shall b numbered consecutively and this num ber placed on the original of the pai receipt documents. These subvoucher will support the cashier's claim for re imbursement of the imprest fund. Thị imprest fund cashier will not reques duplicate receipt documents, nor retali such documents if provided.

(3) When total charges stated on th sales document are paid, without deduc tion of discounts offered and earned, without correction of minor billing errors, action will be taken to obtain refund from the supplier. Collection action may be waived for refunds of on dollar or less.

(g) Payments—(1) C.O.D. Upor presentation of an authorized documen with the necessary certification of re ceipt for supplies or services, the impres fund cashier or other authorized individi ual shall pay the supplier or his agen and obtain the certification of cash pay ment as set forth in § 3.607-4(e).

(2) Group receipt. When consider able quantities of c.o.d. shipments ar received or picked up from a comma carrier or post office, the certification