purchases need not be supported by a justification for noncompetitive procurement nor by a determination of price reasonableness.

(e) Synopsis of proposed procurement. See § 1-1.1003-2 of this title.

§ 15-3.603-2 Data to support small purchases.

(a) EPA Form 1900-13, Worksheet for Small Purchases, shall be used to record oral quotations, to tabulate written quotations, and to document the purchase order file.

(b) When a purchase is not based on the lowest quotation obtained, the reasons for rejecting each lower quotation shall be included in the purchase order file by notation on the worksheet or by separate memorandum. Equal low quotations shall be treated in accordance with § 1-2.407-6 of this title.

(c) Notification to unsuccessful offerors shall be given only if requested.

(d) The Certification of Independent Price Determination which is required by § 1-1.317 of this title is preprinted on page 2 of Standard Form 18. It is not applicable to small purchases up to $10,000.

(e) Buy American Certificate which is required by § 1-6.104-3 of this title shall be obtained to comply with clause 5, Foreign Supplies, on page 2 of Standard Form 147.

(f) Labor surplus area. The notice provided in § 1-1.804-2 of this title, shall be placed in all Invitations for Bids or requests for proposals when labor surplus area set-asides have been made and for consideration of labor surplus areas as a factor in deciding between equal quotations.

(g) The requirement in § 1-12.905-3 of this title to forward Standard Form 98, Notice of Intention to Make a Service Contract, to the Department of Labor applies to any contract subject to the Service Contract Act (including small purchases) exceeding $2,500. The requirement of § 1-12.905-6 of this title to forward SF 99, Notice of Award of Contract, to the Department of Labor applies to any contract over $2,500 subject to the Act. When the purchase is for services subject to the Service Contract and the order is

$2,500 or less, add the clause in § 112.904-2 of this title.

(h) The clause contained in § 16.804-4 of this title, U.S. Products and Services (Balance of Payments Program) shall be placed in all contracts resulting from the Balance of Payments Program.

§ 15-3.604 Imprest funds (petty cash) method.

(a) Imprest funds shall be utilized to the fullest extent for all authorized small purchases when this method results in savings.

(b) Imprest funds shall be established and operated in accordance with procedures issued by the Financial Management Division.

(c) Small purchases from imprest funds shall be in accordance with EPA Order 2545.1A.

(d) Small purchases from imprest funds shall be based upon an authorized Procurement Request/Requisition, EPA Form 1900-8, or other suitable document.

§ 15-3.605 Purchase order forms.

§ 15-3.605-1 Standard Form 44 Purchase Order-Invoice-Voucher.

(a) Standard Form 44, Purchase Order-Invoice-Voucher may be authorized for use when all the following conditions are satisfied:

(1) The transaction is not in excess of $250 except on a case-by-case basis when the Regional Administrator, or the head of the activity delegated authority to use Standard Form 44, approves a higher dollar level. In no event shall such dollar level exceed $2,500.

(2) Supplies or services are immediately available.

(3) One delivery and one payment will be made. Standard Form 44 shall not be used when the use of imprest funds or blanket purchase arrangements are feasible. Standard Form 44 shall not be used to procure nonexpendable property unless the Property officer authorizes its use.

(b) Since Standard Form 44 is an accountable form, a record shall be maintained of serial numbers of forms, to whom issued and dates issued. Standard Form 44's shall be kept

under adequate lock and key to prevent unauthorized use. A reservation of funds must be established prior to use of Standard Form 44's.

§ 15-3.605-2 Standard Forms 147 and 148, order for supplies or services.

(a) Standard Forms 147 and 148 shall be used for small purchases not in excess of $10,000, delivery orders against Government prime contracts, blanket purchase arrangements, and modifications to these documents.

(b) Additional terms and conditions may be added to the Standard Form 147 provided they are not in conflict with those printed on the form. The following clauses and procedures shall be used as applicable:

(1) For bulk quantity items, and those subject to shrinkage, evaporation, miscount, weight, or footage variance, the allowable variation in quantity (normally not over 10 percent) shall be specified in the order by use of the following clause:

VARIATION CLAUSE

Variation in the quantity delivered will be accepted in any amount within +

percent of the quantity for each item. When the quantity received is within the range of the variation clause such item shall be considered complete, and if additional shipments are made to apply against such item, the Government reserves the right to return such shipment to the Contractor, transportation charges collect.

(2) When Government property is exchanged, the written administrative determination required by § 10146.202(b)(4) of this title shall be included in the file. The purchase order shall specify the acquisition price of the new item less the trade-in price, and shall include the following statement:

"The being acquired under this order is/are bona fide replacement(s) and similar to the being offered

for credit. The application of exchange allowance is in accordance with the Exchange/Sale Provision of the Federal Property and Administrative Services Act of 1949, as amended."

(3) When Government property is returned to a contractor for repair, the purchase order shall include a statement that the Contractor assumes the responsibility for loss of or

damage to equipment, except for normal wear and tear.

(4) F.O.B. destination prices shall be obtained whenever possible. If vendors will not quote F.O.B. destination, the delivery terms and procedures prescribed in Subpart 115-19.3 shall be applied.

(5) The order shall specify that the vendor's invoice shall be forwarded directly to the appropriate Accounting Operations Office for payment. Receiving reports shall be processed in accordance with § 115-27.5009 of this title. The Accounting Operations Office shall be furnished the receiving report as expeditiously as possible to facilitate payment of invoices.

(c) Following are guidelines for completion of Standard Form 147:

(1) Issuing office. Enter name and address of the purchasing activity.

(2) Date of Order. Enter date of order. The date of verbal award shall be entered if order is being issued on a confirming basis.

(3) Contract Number. Enter the number of the GSA or other prime contract when issuing a delivery order. If more than one contract number is applicable, or if the contract is not applicable to all items, insert "see Schedule" and list the information in the schedule.

(4) Order No. Enter the order number in accordance with instructions issued for each fiscal year.

(5) Accounting and Appropriation Data. Enter the appropriate accounting codes (appropriation, account number, commitment transaction number and object class) in accordance with instructions issued by the Financial Management Division.

(6) Requisitioning Office. Enter appropriate identification.

(7) Requisition No./purchase authority. Enter the Procurement Request Requisition Number.

(8) Contractor. Enter the full business name and address of the Contractor. If the order is placed through a dealer and the invoice will be submitted by a manufacturer, enter the name of the manufacturer, and insert "care of (c/o)" before the dealer's name and address.

(9) Ship to. Enter the name and complete address of the receiving activity.

Indicate the method of shipment after "Via" if order is F.O.B. Origin.

(10) Type of order. Indicate by checking the appropriate box whether order is a purchase or delivery order. If a purchase order, identify the quotation; e.g., written quotation number and date, or telephone quotation with name of quoter and date.

(11) F.O.B. point. Enter delivery terms in accordance with Subpart 119.3 of this title.

(12) Government B/L No. Enter the GBL number if the contractor is being furnished a GBL with the order.

(13) Delivery to F.O.B. point on or before. If a single date of delivery is applicable to the entire order, it shall be entered in this block. Multiple delivery dates shall be listed in the schedule and this block annotated (see Schedule).

(14) Discount terms. Enter the discount for prompt payment in terms of percentages and corresponding days allowed.

(15) Schedule. Enter an item number for each item of supply or service, description of each item including the National Stock Number (NSN), catalog and part numbers; quantity ordered, unit, unit price and amount for each item, and additional terms and conditions applicable to the order.

(16) Size classification. Check Small Business if vendor is a small business concern as defined in Subpart 1-1.7 of this title.

(17) Mail invoices to. Enter the name and address of the activity making payment.

and distributed as are essential for local administrative purposes.

(e) Modification or cancellation of purchase orders. SF-147 and SF-148 shall be used for modifying or cancelling purchase orders. Distribution shall be made in accordance with paragraph (d) of this section. The concurrence of the vendor shall be obtained prior to modification or cancellation of a purchase order.

(f) Duplicate purchase orders. If the vendor reports nonreceipt or loss of an original purchase order and requests another copy, a duplicate copy conspicuously marked as such may be furnished. To avoid the possibility of a duplicate shipment, a letter of transmittal or the purchase order shall contain the following type of notice:

"This is a duplicate copy of the lost original purchase order, furnished in accordance with your request of The Government will not be responsible for duplicate shipment."

(g) The following terms and conditions prescribed by the FPR shall be added to or incorporated by reference in Standard Form 147 when purchases exceed $2,500.

Examination of Records by Comptroller General (§ 1-7.103-3 of this title).

Termination for Convenience of the Government (§ 1-8.705-1 of this title).

Utilization of Minority Business Enterprises (§ 1-1.1310-2(a) of this title when purchase exceeds $5,000).

Listing of Employment Openings (§ 112.1102-2 of this title).

Employment of the Handicapped (§ 112.1304-1 of this title).

Utilization of Labor Surplus Area Concerns (§ 1-1.805-3(a) of this title when purchase exceeds $5,000).

Contract Work Hours and Safety Standards Act-Overtime Compensation (§ 1-22.303 of this title).

Utilization of Small Business Concerns (§ 1-1.710-3(a) of this title when purchase exceeds $5,000).

Service Contract Act of 1965 (Rev. Dec. 1972) (§ 1-12.904-1 of this title).

(See statutory exemptions in § 1-12.902-3 of this title).

§ 15-3.606 Blanket purchase arrangements.

(a) A blanket purchase arrangement or agreement (BPA) is a simplified method of filling anticipated repetitive

needs for small quantities of supplies or services from qualified sources of supply. A blanket purchase agreement shall not be used to avoid the legal requirements for formal advertising. Single purchases of like or reasonably related items, or individual calls may not be made if the total value is in excess of $5,000. The total value of all deliveries or services performed under the blanket purchase agreement, or the maximum limitation included in the agreement may exceed the $10,000 limitation for individual open market purchase orders.

(b) Calls against blanket purchase agreements shall be placed only after compliance with § 15-3.603. When concurrent agreements are in effect for similar items, calls shall be equitably distributed. Where there is an insufficient number of blanket purchase agreements for any class of supplies or services to assure adequate competition, quotations shall be solicited from other sources.

(c) Blanket purchase agreements shall be prepared and issued on SF147 and SF-148. Each BPA shall be appropriately numbered and shall contain the following provisions as a mini

mum:

(1) Authorization to the supplier to furnish the supplies or services described in general terms, when requested by authorized personnel listed therein during a specified period.

(2) A statement that the Government is obligated only to the extent of calls placed against the BPA by authorized personnel.

(3) A statement that individual calls will not exceed $5,000 or a lesser dollar limitation determined to be appropriate for the agreement.

(4) A statement that prices to the Government shall be as low, or lower than those charged the supplier's most favored customer, and that the supplier's established discounts will apply to calls placed against the BPA.

(5) A requirement that all shipments be accompanied by delivery tickets containing the name of the supplier, BPA number, date of call, call number, itemized list of supplies or services furnished including unit price and extension on each item, applicable discount and date of delivery.

(6) A statement covering submission of invoices, e.g., 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 delivery tickets bearing the signature of the Government employee receiving the item or services.

(7) A statement that the issuance of individual requests against the blanket purchase agreement will be made under authority of 41 U.S.C. 252(c)(3). (This requirement does not apply to blanket purchase agreements issued under GSA contracts.)

(d) Calls against blanket purchase agreements generally will be made orally, except that informal correspondence may be used when more convenient.

(e) Purchasing activities shall establish procedures to ensure availability of funds and control of obligations on blanket purchase agreements. Calls shall be numbered in sequence in separate series for each blanket purchase agreement.

(f) Since payments are usually made on the basis of vendor's invoices, accompanied by signed delivery tickets, receiving reports ordinarily need not be prepared.

Subpart 15-3.8-Price Negotiation Policies and Techniques

§ 15-3.808-50 Profit or fee guidelines.

(a)(1) General. It is the policy of the Agency to utilize profit to attract contractors who possess talents and skills necessary to the accomplishment of the objectives of the EPA, and to stimulate efficient contract performance. In negotiating profit/fee, it is necessary that all relative factors be considered, and that fair and reasonable amounts be negotiated which give the contractor a profit objective commensurate with the nature of the work to be done, the contractor's input to the total performance, and the risks assumed by the contractor. The profit evaluation criteria which follow were developed for use by the EPA in order

(i) to provide a standard method of evaluation, (ii) to insure consideration of all relative factors, (iii) to provide a basis for documentation and explanation of the profit negotiation objective, (iv) to allow contractors to earn profits commensurate with the assumption of risk, (v) to reward contractors who provide their own facilities, financing and personnel, and (vi) to reward contractors who undertake more difficult work requiring higher risks. Except as noted below, use of these guidelines is mandatory for establishing prenegotiation profit/fee objectives for all negotiated contracts where cost analysis is required (see FPR 1-3.807-2).

(2) Exceptions. (i) Under the following circumstances, other methods for establishing profit objectives can be used. Generally, it is expected that such methods will:

(a) Provide the contracting officer with a technique that will insure consideration of the relative value of the appropriate profit factors described under "Profit Factors", and

(b) Serve as a basis for documentation of the objective. The circumstances are:

(1) Architect-engineering contracts; (2) Personal or professional service contracts;

(3) Management contracts, e.g., for maintenance or operation of Government facilities;

(4) Termination settlements;

(5) Engineering services, labor-hour, time and material contracts which provide for payment on a man-hour, man-day or man-month basis, and where the contribution by the contractor constitutes the furnishing of personnel rather than the output of an integrated research, engineering, or manufacturing operation; and

(6) Cost-reimbursement construction contracts; and

(7) Cost-plus-award-fee contracts.

(ii) Under unusual circumstances, the Head of the Procuring Activity may specifically waive the requirement for the use of the guidelines. Such exceptions shall be justified in writing and authorized only in situations where the guidelines method is determined to be unsuitable.

(3) Limitations. In the event that any of the methods used would result in establishing a fee objective in violation of limitations established by statute (see FPR 1-3.405-5(c)(2), the maximum fee objective shall be the percentage allowed pursuant to such limitations. No administrative ceilings on profits or fees shall be established.

(b)(1) Profit factors. The factors set forth below and the weighted ranges listed after each factor shall be used in all instances where the profit is to be specifically negotiated.

(2) The contracting officer shall first measure the "Contractor's Input to Total Performance" by the assignment of a profit percentage within the designated weight ranges to each element of contract cost recognized by the contracting officer. Such costs are multiplied by the specific percentages to arrive at specific dollar profits. The amount calculated for facilities capital cost of money shall not be included as part of the cost base for the computation of profit or fee. A complete discussion of how facilities capital cost of money is determined and how it is applied and administered is set forth in FPR Temporary Regulation 61.