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(a) Quotations or offers may be solicited by use of written requests, telegram, telephone, or personal contact, whichever is considered the most appropriate for the particular transaction. It is the responsibility of the purchasing officer to determine in each instance the type of solicitation and quotation that is in the best interests of the Government.

(b) When written quotations are solicited for small purchases ($2,500 or less), Standard Form 18, Request for Quotations, shall be used (see Subpart 1-16.2). It is not necessary to furnish prospective suppliers a copy to be retained unless requested by a supplier or it is known that a copy is desired. When Standard Form 18 is used by a purchasing activity, it constitutes merely a request for price quotations and is not an offer to purchase. Therefore, issuance by the Government of a purchase order pursuant to price quotations received on Standard Form 18 does not constitute acceptance but, instead, is a new offer to be accepted or rejected by the one quoting; such acceptance will usually be by delivery.

(c) When it is desirable to request quotations from outside the local trade area and time does not permit the use of written solicitations, telegraphic solicitation may be used. Telegraphic solicitations shall not ordinarily be used to solicit prices from local suppliers nor shall it be used if written requests for quotations will suffice.

(d) While there are instances where quotations should be solicited from additional sources, soliciting quotations from two to four suppliers ordinarily is suffi

The

cient, although even this requirement may be reduced on full consideration of the factors set forth in § 1-3.603-1(c). Care should be taken to prevent administrative costs from being disproportionate to the amount of the purchase. number of quotations obtained and considered or the number of sources of supply utilized when making small purchases will depend to a large extent on what knowledge the purchasing officer has of the current availability and price of the desired item in commercial markets. Such information may be available from past experience with the item or may require development.

§ 5-3.603-2 Data to support small purchases.

When other than the lowest quotation is used as the basis for the purchase, the reason(s) for rejecting any lower quotation shall be entered on the quotation form concerned.

§ 5-3.604 Imprest funds (petty cash) method.

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(a) Imprest funds shall be utilized to the fullest extent for all authorized small purchases when this method results in savings. It is essential that authority to make small purchases be at the lowest practical operating level.

imprest

(b) Purchases made from funds shall follow the generally accepted policy of purchasing satisfactory merchandise at fair prices without favoritism to any vendor. The cost of the item to be purchased, the commodity, and the quantity involved will generally govern the action to be taken. If a special item costing only a few dollars is required, a minimum amount of time and expense should be devoted to consummating the transaction. However, as a general rule purchases should be made from firms offering the best prices.

(c) The Heads of Services and Staff Offices in the Central Office and the Regional Administrators, or their designees, will designate ordering employees authorized to approve purchases and such authority shall be at the lowest practical operating level.

§ 5-3.604-3 Agency responsibilities.

Instructions for the establishment and control of imprest funds are set forth in § 5-3.652.

33-622 O-65-4

§ 5-3.604-4

Use of imprest funds.

A vendor may be reimbursed for the cost of the supplies and the parcel post or other delivery charges which he has already prepaid by a payment from imprest funds. Payments to common carriers for line haul transportation are not authorized.

§ 5-3.604-6 Procurement and payment.

Purchases through use of imprest funds shall be accomplished by whichever of the following methods is determined to be most practical:

(a) Purchases by imprest fund cashiers. Imprest fund cashiers will make small purchases when so requested by an authorized ordering employee. In such cases the authorized ordering employee, or his designated agent, shall furnish the cashier with necessary information, such as unit, quantity, description, and delivery requirements. The cashier will make all necessary arrangements to consummate the purchase, including the arrangements for delivery.

(1) When the ordering employee is in close proximity and will be available, the cashier will have the ordering employee sign the receipt and indicate thereon the appropriation, allotment, and other identifying symbols when the purchase is effected.

(2) When the ordering employee is not in close proximity or may not be available, the cashier will require the ordering employee to furnish, prior to effecting the purchase, GSA Form 49, Requisition for Equipment, Supplies, or Services. Only the data essential to the transaction shall be furnished, which shall always include the appropriation, allotment, and other identifying symbols.

(3) When the ordering employee and the cashier are the same individual, as may be the case in many smaller funds or transactions, the cashier will sign the receipt as ordering employee and indicate thereon the appropriation, allotment, and other identifying symbols when the purchase is effected.

(b) Purchases by ordering employees. Purchases by authorized ordering employees may be made either with advances of cash or with their own funds.

(1) When the purchase is to be made by a designated ordering employee, or his agent, so known to the cashier, the cashier will advance the estimated

amount of cash needed to make the purchase. The transaction shall be documented by means of Standard Form 1165, Receipt for Cash-Subvoucher. The cashier will have the employee making the purchase sign the "Interim Receipt for Cash" stub of Standard Form 1165 as a receipt for the cash advanced. The employee will then be given the "Receipt for Cash-Subvoucher" portion of Standard Form 1165, to be used by him to secure a receipt from the vendor for the cash purchase unless the vendor furnishes a receipt in the form of an original invoice, bill, sales slip, cash register ticket, etc. When the purchase is consummated, the employee must return Standard Form 1165 and the vendor's receipt, if the latter is furnished, to the imprest fund cashier. The cashier will require that the ordering employee sign Standard Form 1165 or the vendor's receipt and indicate thereon the appropriation, allotment, and other identifying symbols. At this time the cashier will mark the "Interim Receipt for Cash" stub "Void" in ink and give it to the employee. It is essential that the employee require the cashier to take such action and the cashier at that time will require the return of any unused cash, or pay to the employee any amount of personal funds which the employee may have used over the original amount advanced to him. As a rule the purchase should be consummated and the receipt returned to the cashier the same day. A purchase for which cash is advanced must be consummated and the receipt returned not later than the fifth working day following the date of the advance, otherwise the cashier is required to take immediate action to recover the cash advanced.

(2) The imprest fund cashier may reimburse employees for amounts paid by them for authorized purchases and the employee being reimbursed shall furnish the cashier with a vendor's receipt or its equivalent as provided in (1), above, except as otherwise provided. Such vendor's receipt shall show the appropriation, allotment, and other identifying symbols and shall be "Approved as advantageous to the Government" by an ordering employee or such other approving official as may be so authorized and is so known to the imprest fund cashier. The cashier will require the employee being reimbursed to sign the vendor's receipt as a receipt for the cash reimbursement.

(c) Payment when Standard Form 44 Purchase Order-Invoice-Voucher, is used. When small purchases are made locally on Standard Form 44, arrangement should be made where feasible to have an imprest fund cashier make payments therefor from his fund, within established limitations. It is more economical for the Government to pay by cash than to schedule the standard form to the disbursing officer and to issue a Government check, as well as being generally more acceptable to the vendors.

(d) Receipts. Each purchase made shall be supported by an original bill, sales slip, cash register ticket, invoice, etc., of the dealer or by Standard Form 1165, or equivalent receipt form, itemizing the articles or services purchased and amount thereof.

(1) When individual purchases are for $3 or more, the receipt form must be signed by the dealer or his agent as evidence of payment, in addition to the requirement that the articles or services purchased be itemized. If the name of the vendor and/or the articles purchased cannot be noted on the receipt form, the missing information shall be placed on a subvoucher which shall be attached to the receipt.

(2) In the case of purchases of less than $3, a receipt showing the articles or services purchased should be secured, but the signature of the dealer will not be necessary. In those instances of purchases of less than $3, where it is impossible to secure a dealer's invoice, bill, etc., the employee making the purchase, even though he may be an imprest fund cashier, shall detail on Standard Form 1165, or equivalent form, the articles or nature of the services purchased and shall sign the subvoucher indicating receipt of the funds from the imprest fund.

(e) Use of purchase orders. No purchase order should be issued for local purchases, where contact may be in person or by telephone, unless required by the vendor or to obtain Government discounts or for tax exemption purposes. When required, any approved purchase order form may be used and shall be endorsed "Payment to be made in cash" if the vendor is to make delivery or "Ship C.O.D." if shipment is to be made by parcel post. The ordering employee shall cause any required purchase orders to be prepared in an original for the vendor, one copy for the ordering employee, and one copy for the imprest

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(a) General. In general, use of the Standard Form 44, Purchase OrderInvoice-Voucher, will not serve the best interests of either the Government or business when the accounting system of the seller requires production of an invoice as a matter of routine. In such cases, whichever of the other authorized methods of making small purchases is most appropriate shall be used. Whenever possible, within the dollar value limitations of each method, preference shall be given to the use of imprest funds and blanket purchase arrangements (see §§ 5-3.604 and 5-3.606).

(b) Authorization for use of form. All responsible employees of the services and staff offices who have need therefor shall be authorized to make small purchases through the use of Standard Form 44 in accordance with this § 53.605-1, and subject to such limitations as may be determined necessary. It is essential that such authority be delegated to the lowest practicable operating level.

(c) Issuance of books from stock. Issuances of books from stock shall be made only to the Heads of Services and Staff Offices in the Central Office and to the Regional Administrators and the Heads of Services and Staff Offices in regional offices, or to their designees. These officials shall be responsible for the custody and issuance of the books to the users, and shall maintain a simple card record for each book issued. This record shall show the name of the person to whom issued; the inclusive serial numbers of the forms in the book; the operating activity allotment symbol; the total purchase limitation for the book; date issued; and the date the book was returned. Users shall be required to return the covers of completely used books so the record can be properly closed out. This card record shall account for all sets of Standard Form 44. A periodic, at least quarterly, review of this card record shall be made to insure the return of books no longer needed by users.

(d) Lost books. (1) In order to avoid payment for any unauthorized purchases made through the use of a lost

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(2) If a lost book is later recovered, it may be placed in use after the appropriate Office of Financial Management is notified.

(e) Issuance of books to users. In each case the official authorized to issue books of Standard Form 44 shall, before issuing a book to a user:

(1) Enter the operating activity symbol in ink on the front cover of the book and instruct the user to insert this symbol in the section captioned "purpose (Project, etc.)" at the time each purchase is made with Standard Form 44.

(2) Enter the total purchase limitation amount and date issued for that book in ink on the front cover and instruct the user that he shall not exceed such total amount in purchases. The determination of the purchase limitation amount entered on the front of the book will be the responsibility of the operating activity. A summary control of the total of the limitation amounts by activity symbols on books in use may be necessary where more than a few books are issued. Any necessary adjustments in the purchase limitation amounts and the activity symbols on the books in use at the end of any quarter of the fiscal year will be made by the operating activity.

(3) In the case of partially used books that are returned and reissued, line out in ink the purchase limitation amount and enter a new amount and date extended on the next line. If the reissued book is to be used under a different activity symbol, line out in ink the initial activity symbol and enter the new activity symbol. Such changes on reissued books must also be made on the issuance card record before the book is released to the new user.

(f) Instructions for use of the form. General procedural instructions governing the use of Standard Form 44 are printed on the forms and the inside cover of the book. Users of Standard Form 44 shall also be subject to all applicable administrative instructions issued by the services and staff offices, such as restrictions on the dollar amounts for single purchases, or otherwise. Standard Form 44 shall be made out at the time the order is placed, and shall not be used to confirm the receipt of goods or services previously ordered.

(g) Payments. Promptness in making payments is essential if Standard Form 44 is to accomplish its mission of simplifying selling to the Government. The officials authorized to issue books of Standard Form 44 shall instruct users in the proper completion and handling of these forms in order that payment may be expedited. It is essential that the person receiving the supplies immediately mail or deliver the Receiving Report-Accounting copy (pink) of the Standard Form 44, to the appropriate Office of Financial Management.

(h) Availability of form. Standard Form 44 is available from each regional Administrative Operations Division in books of twenty-five carbon interleaved sets. These books shall be ordered as the current need exists.

(i) Serial numbering and overprinting. All sets of Standard Form 44 used by GSA will have serial numbers overprinted thereon and the words "General Services Administration" and "Office of Finance and Administration" overprinted in the spaces provided for the consignee and the office to be billed. The front cover of each book also will be overprinted with the inclusive serial numbers of the sets of forms therein and lines for the insertion of the operating activity symbol and the amount and date of total purchase limitation for that book. No other overprinting is authorized. § 5-3.606

ments.

Blanket purchase arrange

§ 5-3.606-1 General.

(a) Blanket purchase arrangements are a means of establishing "charge accounts" wiht qualified sources of supply to cover anticipated small requirements of readily available supplies or services of the same general category. Substantial savings can be realized by reducing

or eliminating instances where numerous individual purchase orders are issued to the same local suppliers for similar small requirements during relatively short periods of time. Related arrangements for periodic billing also reduce the cost of processing payments.

(b) Establishment of blanket purchase arrangements may be proposed by the purchasing activity, by administrative officials, or by the requisitioning activity. Since the objective is simplicity and economy, the purchasing activity should take full advantage of any information available from and consider recommendations made by the requisitioning office when placing such orders.

(c) Users shall be subject to all applicable administrative instructions issued by services and staff offices, such as restrictions on the dollar amounts for single purchases which, in any case, may not exceed $2,500.

(d) Ordinarily a separate blanket purchase arrangement should be established for each requiring activity.

(e) Blanket purchase arrangements may also be made with other Government agencies.

§ 5-3.606-3 Establishment of account.

(a) When establishing blanket purchase arrangements, the advantages both to the supplier and to the Government should be explained to the supplier. The supplier should be advised that the arrangement does not obligate the Government to buy.

(b) To the extent practicable, blanket purchase arrangements for like items shall be equitably distributed over a period of time among different suppliers. § 5-3.606-4 Documentation.

(a) Blanket purchase arrangements normally shall be documented. GSA Form 300, Purchase Order, may be used for this purpose. Each blanket purchase arrangement shall contain appropriate provisions relating to the following:

(1) Authorization to the supplier to furnish the supplies or services described in general terms in the arrangement when called for by authorized person(s) listed therein. Blanket purchase arrangements may be limited as to total dollar value, specified items, commodity groups, or classes; or the scope of the blanket purchase arrangement may be unlimited for all items that the supplier is in a position to furnish.

(2) Individual calls against such arrangements shall not exceed $2,500.

(3) The Government will be obligated only to the extent of the call orders actually made against the blanket purchase arrangement by authorized per

sons.

(4) Suppliers shall be required to submit an invoice, no more frequently than monthly. The original of each delivery ticket shall accompany the invoice.

(5) When feasible, the blanket purchase arrangement should specify the place(s) to which deliveries are to be made. (Usually the arrangement will provide for delivery to the requiring activity.)

(6) The arrangement should state, insofar as practicable, the discount terms which will apply to orders placed against the blanket purchase arrangement.

(b) Only the persons whose names are listed in the blanket purchase arrangement shall be permitted to request deliveries. Delivery (call) orders normally shall be made orally, either by telephone or in person. Procurement under blanket purchase arrangements may not be effected if the requirements are available from regular supply channels. Therefore, prior to placing calls against the blanket purchase arrangement, each requirement shall be screened for availability from mandatory sources of supply. Necessary controls shall be maintained by the person placing call orders under the blanket purchase arrangement to insure that any limitation stated therein is not exceeded. After the necessary screening of the requirements has been accomplished, the authorized person will place the call. The person placing the call will identify himself to the vendor and, after determining that the required supplies or services can be furnished, will establish agreement with the vendor as to the unit price and total amount, and the time of delivery. The blanket purchase arrangement identification, and requisition number if any, should be specified each time a delivery is requested.

(c) Each blanket purchase arrangement shall be numbered or otherwise identified in an appropriate manner, and shall include the statement, "Negotiation authority-section 302 (c) (3), Federal Property and Administrative Services Act of 1949."

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