cure legal and technical (pricing, financial, production, inspection, etc.) advice within the Department of the Army.

(h) Contracting officers are responsible for knowing the scope and limitation of their authority.

[26 F.R. 2174, Mar. 15, 1961, as amended at 26 F.R. 4149, May 13, 1961]

§ 590.403

Requirements to be met before entering into contracts. Irrespective of whether procurement is to be effected by formal advertising or by negotiation, a contract may be entered into by a Contracting Officer only if

(a) All applicable requirements of law, of the Armed Services Procurement Regulation, of this procedure, and of the appropriate Procuring Activity instructions have been met.

(b) Such business clearances or approvals as are prescribed by this procedure and by applicable Procuring Activity instructions have been obtained.

(c) The contract is written on a standard or an approved form of contract.

(d) The contract does not contain any unauthorized clauses or involve any matter which is inconsistent or in conflict with the established policy of higher authority.

[19 F.R. 5682, Sept. 9, 1954]

§ 590.403-50 Legal review.

Legal advice and assistance of a staff judge advocate or other legal counsel will be obtained in the preparation of clauses other than standard clauses which are to be contained in invitations for bids and request for proposals. In each solicitation for bids and proposals which will result in a contract exceeding $25,000, each invitation for bids and requests for proposals shall be reviewed for legal sufficiency by a staff judge advocate or other legal counsel prior to issuance by the contracting officer. In addition, each solicitation for bids and proposals, which will result in a contract over $10,000 but not over $25,000 also shall be subject to legal review to the maximum extent possible, consistent with the availability of legal services. Contracting officers must insure that the contracts they place are legally, technically and administratively sufficient. Legal advice and assistance will be obtained from the command judge advocate or other legal counsel as to the legal aspects of all contracts. Heads of procuring activities will insure that such advice and assistance

are available to their procurement personnel at their headquarters when unavailable at field levels.

[26 F.R. 10555, Nov. 9, 1961]

§ 590.450 Selection and appointment of contracting officers.

(a) Appointing authority. Contracting officers, as defined in § 1.201-3 of this title, shall be those designated by the persons listed in this paragraph, or by persons who are authorized by the persons listed in subparagraphs (1) through (4) of this paragraph to designate contracting officers. When so designated, they shall have the authority set forth in § 590.402 and the general responsibilities set forth in § 590.402-50.

(1) The Secretary of the Army.

(2) The Under Secretary of the Army or Assistant Secretary of the Army (Logistics).

(3) The Deputy Chief of Staff for Logistics, Headquarters, Department of the Army.

(4) Chief, Contracts Division, Office of the Deputy Chief of Staff for Logistics, Headquarters, Department of the Army.

(5) Head of any procuring activity and his deputy, or a principal assistant in the headquarters officer responsible for procurement (§ 1.201-7 of this title).

(6) Attachés.

(7) Chiefs of foreign missions (Army). (8) Chiefs of Department of the Army sections of any joint military mission not operating under the jurisdiction of a major oversea command.

(9) Superintendent, United States Military Academy, West Point, N.Y.

(10) Such others as may be specifically designated in writing from time to time.

The officials designated in subparagraphs (5) through (9) of this paragraph will exercise this authority without power of redelegation. The number of contracting officers designated in any purchasing office shall be kept to a minimum essential to efficient operation.

(b) Selection. The following shall be considered as required qualifications of individuals to be designated as contracting officers:

(1) Successful completion of the Procurement Management Course, Army Logistics Management Center, Fort Lee, Va., or equivalent training and experience.

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(2) Evidence of business acumen and ability to exercise mature judgment.

(3) High standards of character, reputation, and business ethics.

(4) Desirable personality traits.

(5) Previous on-the-job training in a purchasing office.

(c) Evaluation. The following general guidelines shall be used in evaluating equivalent training referred to in paragraph (b) (1) of this section:

(1) Knowledge of Government contract law.

(2) Familiarity with the preparation of contracts and purchase orders.

(3) Thorough knowledge of Army procurement regulations and policies.

(4) Familiarity with commercial purchasing and contracting methods and practices.

(5) Ability to analyze, interpret, and evaluate the factors involved in the determination of reasonable price.

In evaluating an individual's training on the basis of the above general guidelines, consideration shall be given to the type of procurements to be made by the individual, i.e., formal advertising or negotiation, and the magnitude and complexity of procurements. For example, satisfactory completion of the Army Basic Procurement Course, conducted by the Quartermaster School, Fort Lee, Virginia, or equivalent training, should normally provide an individual sufficient training to qualify him for appointment as a contracting officer at a post, camp, or station, or for similar type duties.

(d) Surveillance. In view of the high degree of individual responsibility and authority vested in a contracting officer, care will be exercised to insure that only well qualified individuals are appointed and retained in such positions. Performance of their duties as contracting officers will therefore be kept under close surveillance.

(e) Appointment. (1) Each Contracting Officer shall be designated by name in writing, signed by the appointing authority, which shall include a statement of the specific authorities delegated to such appointee. Such designation shall be rescinded in the same manner upon termination of the individual's assignment as contracting officer.

(2) Civilian personnel in grades below GS-12 or military personnel below the grade of major shall not be designated

contracting officers with authority to execute a contractual document involved in the purchase of supplies, services, research and development or military construction in amounts exceeding $100,000. Exceptions to this requirement shall be made only in the most unusual cases by an official authorized to make appointments. (Paragraph (a) of this section.)

(3) Where a purchasing office does not have a contracting officer of the requisite grade or rank necessary to execute contractual documents involving amounts exceeding $100,000 such documents should be forwarded to the next higher level of the procurement chain of command for execution by a contracting officer who is qualified and has been designated to execute such documents. The provisions of this paragraph, however, do not prohibit the assignment of administration of such contracts to properly qualified individuals, regardless of their grade or rank.

[25 F.R. 10130, Oct. 25, 1960, 26 F.R. 2174, Mar. 15, 1961]

§ 590.451

Selection and appointment of contracting officers' representatives. (a) Designation. A contracting officer may designate any Government personnel (military or civilian), who is appropriately qualified, to act as his authorized representative. Such designation shall be in writing and shall define the scope and limitations of the authorized representative's authority.

(b) Authority. A designation authorized by this section may be made by instructions referring to particular contractual instruments, and may, to the extent not specifically prohibited by the terms of the contractual instrument involved, empower the authorized representative to take any or all action thereunder which could be lawfully taken by the contracting officer. In no event, however, shall an authorized representative, by virtue only of his designation as such, be empowered to execute or agree to any contract or modification thereof, except, however, the contracting officer may empower his authorized representatives to issue change orders under the "Changes" clause, provided such change orders do not involve a change in unit price, total contract price, quantity, quality, or delivery schedule. [26 F.R. 2174, Mar. 15, 1961]

§ 590.452

Selection and appointment of ordering officers.

(a) Selection. Individuals selected as ordering officers shall possess the following qualifications: (1) Evidence of business acumen, (2) ability to exercise mature judgment, (3) high standards of character, reputation, and business ethics, (4) desirable personality traits, and (5) a sound working knowledge of Department of the Army small purchase policies and procedures.

(b) Appointment. (1) Ordering officers will be appointed only by (i) persons authorized to appoint contracting officers (§ 590.450) or by contracting officers when authorized by the appointing authority, (ii) by commanders of class I and class II installations having a procurement mission as part of their function, or (iii) by the United States Property and Fiscal Officers of the Army National Guard.

(2) An alternate ordering officer may be appointed for each ordering officer. The alternate ordering officer will have authority to act in the absence of the ordering officer or under other necessary circumstances. Purchase actions shall be effected by ordering officers or by alternate ordering officers under their individual authority and signature. Purchase and ordering documents shall not be signed as "alternate" or "substitute" ordering officer.

(3) Letters of appointment substantially in the form set forth in paragraph (f) of this section will state clearly the limitations and authority of individuals appointed as ordering officers. Department of the Army pilots who make purchases as ordering officers in accordance with paragraph 3d, AR 715-232, do not need letters of appointment as authority to make such purchases but may cite applicable special orders or other authority for flights which make reference to AR 715-232.

(4) The number of ordering officers on Class I and Class II installations will be kept to a minimum and will not exceed (i) one per technical service or supply account, (ii) one per commissary and (iii) one per each major tenant activity on the installation. Ordering officers may also be appointed for isolated, offpost locations and for other military activities or Government agencies satellited on a Department of the Army purchasing office.

(1)

(c) Limitations of authority. Ordering officers shall be limited to making purchases of $250 or less and to the use of the following small purchase procedures (§ 590.601): (i) Imprest Fund, Standard Form 1165 (Receipt of CashSubvoucher) if $100 or less, (ii) Standard Form 44 (Purchase Order-Invoice-Voucher), (iii) Charge Accounts established by contracting officers, (iv) DD Form 1155 (Order for Supplies or Services), and (v) DD Form 1164 (Service Order for Household Goods) by ordering officers as set forth in (c) of this subdivision, except that purchases in excess of $250 may be made by ordering officers in the following circumstances:

(a) Commissary ordering officers may make purchases in unlimited dollar amounts against Purchase Notice Agreements published in the SB 10-500 series by signing and using DD Form 1155. Also they may place oral calls or informal requests against charge accounts established by contracting officers, in amounts of not more than $2,500 for each call or request for brand name resale items, and without dollar limitation for perishable subsistence items.

(b) Accountable property officers appointed as ordering officers may, with the approval of the installation contracting officer, sign and place delivery orders (DD Form 1155) in unlimited dollar amounts against General Services Administration (GSA) stores depots and Federal Supply Schedules, and against indefinite delivery type contracts published in DA Cir 718-series.

(c) Transportation officers or Transportation and Traffic Management officers may be appointed as ordering officers at installations or activities having (1) assigned area responsibilities under paragraph 1b and appendix I, AR 55-42, or (2) local agreements within the scope of the authority established by paragraph 2c, AR 55-42 to issue service orders (DD Form 1164) estimated to cost $2,500 or less, subject to the policy criteria and procedure set forth in AR 5542 and AR 743-455.

(d) Department of the Army pilots may make purchases in accordance with AR 715-232.

(e) Ordering officers of a military department or other Government agency satellited on a Department of the Army purchasing office may, with the approval of the contracting officer, procure such

items as are required to accomplish an assigned mission and may sign and place delivery orders against GSA stores depots and Federal Supply Schedules, and against indefinite delivery type contracts.

(2) Except as provided in subparagraph (1)(v) (a) and (b) of this paragraph, on-post technical service personnel or acocuntable property officers, who are appointed ordering officers, are limited to making purchase of supplies and services for emergency repairs, repair of deadlined equipment and nonstocked "fringe items" (AR 711-16) authorized for purchase by AR 715-30.

(3) An individual may be appointed as both the ordering officer and the imprest fund cashier only at an isolated or off-post location.

(d) Supplemental Procurement Information. Appointing authorities will insure that ordering officers are properly instructed in the preparation and submission of information concerning individual purchase transactions which each ordering officer has completed during the calendar month.

The ordering officer shall submit such information to the purchasing office for consolidation in DD Form 1057 (Monthly Procurement Summary by Purchasing Office). This information will be submitted in such a manner that it may be included readily on DD Form 1057.

(e) Surveillance. Installation tenant and on-post ordering officers shall be under the control and technical supervision of the installation purchasing office and will be inspected or reviewed by the contracting officer or his designee at least twice a year. Isolated or off-post ordering officers shall be under the control and technical supervision of the parent installation purchasing office and will be inspected or reviewed at least annually by personnel designated by the parent installation commander. Copies of the inspection findings will be retained for one year in the file of the ordering office and the supervising purchasing office. Such inspections should include whether ordering officers are:

(1) Purchasing only items authorized to be purchased locally;

(2) Determining reasonableness of prices received;

(3) Rotating purchases amounting to $250 or less among sources of supply;

(4) Maintaining the standards of conduct as prescribed in AR 600-205, in their dealings with vendors;

(5) Purchasing items on the open market which are required to be purchased from prescribed sources;

(6) Splitting purchase transactions to avoid dollar limitations;

(7) Delegating their responsibility to others; and

(8) Complying with all applicable procurement policies and procedures.

(f) Sample Form of Suggested Letter for Appointing Ordering Officers. SUBJECT: Appointment of Ordering DATE Officers

To: (Address to Individual, indicating rank or grade, and section or location) 1. Appointment. In accordance with the authority contained in Army Procurement Procedures 1-452 you are appointed an Ordering Officer for the purchase of (indicate category of supplies) effective (insert effective date). You are responsible to and under the technical supervision of the (insert name of installation) purchasing office for your actions as an ordering officer.

Your

2. Limitations and Requirements. appointment is subject to the following limitations and requirements, and you will assure that funds have been made available

in the estimated amount of the purchase to be made or order to be placed:

a. You may purchase supplies or nonpersonal services of the category stated above by use of Standard Form 44 (Purchase Order-Invoice-Voucher) only when all of the following conditions are satisfied:

(1) The aggregate amount of any one purchase transaction is not in excess of $. Pur(insert dollar limitation). chases will not be split to avoid this dollar limitation.

(2) The supplies or services are immediately available from the local trade area. Orders will not be placed for future delivery or performance.

(3) One delivery and one payment will be made.

(4) The use of the Standard Form 44 procedure is determined to be more economical and efficient than other small purchase methods.

b. You may purchase supplies or nonpersonal services of the category stated above by use of Standard Form 1165 (Receipt for Cash-Subvoucher) from Imprest Funds only when all of the following conditions are satisfied:

(1) The aggregate amount of the purchase transaction is not in excess of $100. Purchases wil not be split to avoid this dollar limitation.

(2) The supplies or services are immediately available from the local trade area, with cash payment to be made immediately upon pickup or delivery. Orders will not be placed for subsequent delivery or performance.

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

(4) The use of the imprest fund procedure is administratively more economical and efficient than other small purchase methods.

c. Whenever a purchase transaction is in an aggregate amount of $250 or less, you will insure that the price is fair and reasonable and will rotate purchases among sources of supply.

d. Whenever a purchase transaction is in excess of $250 you will obtain competition from at least three sources of supply, where available, and will place the order with that source offering the lowest price, and which otherwise meets the purchase requirements as to delivery, quantity, quality, etc.

e. You will purchase only those supplies and services of the category stated above which are authorized to be purchased on the open market. Any doubtful cases will be referred to the contracting officer for determination prior to purchase. The contracting officer will inform you from time to time of supplies and services which are mandatory purchases from prescribed sources.

f. You will comply with the standards of conduct prescribed in AR 600-205, a copy of which will be furnished you by the contracting officer for your retention.

g. At the end of each month and no later than the working day of the following month, you will furnish the purchasing office named above information concerning individual purchase transactions which you have made during the month. The format of DD Form 1057 (Monthly Procurement Summary by Purchasing Office) will be used in the submission of such information.

NOTE: Paragraph 2 of the letter of appointment should state clearly the forms, i.e., Standard Form 44 (Purchase OrderInvoice Voucher); Standard Form 1165 (Receipt for Cash-Subvoucher); DD Form 1155 (Order for Supplies or Services); DD Form 1164 (Service Order for Household Goods) and the procedures which the individual is authorized to use in effecting purchases and placing orders.

[26 F.R. 2174, Mar. 15, 1961, as amended at 26 F.R. 9209, Sept. 30, 1961]

§ 590.454 Delegation of authority.

Authority conferred upon any of the Heads of Procuring Activities under any section of Subchapter A, Chapter I of this title and in this procedure may be exercised by the Heads of the Procuring Activities, or by redelegation, through such officer or officers or civilian official or officials of the Army Establishment as may be designated by them or by any person authorized by them to make such designation, with such powers of delegation or successive redelegation as they

may deem appropriate; subject, however, to any provisions in the particular section of Subchapter A, Chapter I of this title or this procedure

(a) Forbidding the assignment or delegation of the authority mentioned in such section, or

(b) Imposing limitations upon the assignment, delegation, or exercise of such authority.

The exercise prior to the date of this procedure of such authority by any such officer or officers or civilian official or officials of the Army Establishment is hereby ratified and confirmed, providing such authority could have been granted in the first instance.

[19 F.R. 5682, Sept. 9, 1954]

(a) Promptness. The prompt resolution of procurement problems is a necessary and important element in the orderly and efficient accomplishment of the procurement mission. It is essential to resolve at purchasing office level those problems which contracting officers have authority to resolve finally. Promptness in handling such problems has a salutary effect on relations between the Department of the Army and industry, and may prevent undue financial hardship to contractors in many instances.

(b) Eliminating delays. In order to eliminate unnecessary delays in resolving problems which arise during the administration of contracts, and to insure that contractors receive payments to which they are entitled as promptly as possible, procurement and auditing personnel will:

(1) Conduct all investigations, negotiations, voucher auditing and processing, and other procurement and contract administration matters in an expeditious manner;

(2) Exert every effort to resolve as promptly as possible all problems capable of local resolution which arise between procurement personnel and personnel of other agencies within and without the Department of the Army; and

(3) Forward without delay completely documented reports relating to procurement and contract administration problems which cannot be resolved promptly at local level or which for any