side the United States, whether firm or adjustable, shall be on an end product basis when feasible.

(b) Limitation. This type of contract, whether with an individual or organization, and whether for services professional or nonprofessional in character, shall be for services which meet criteria provided in § 6-1.258-1 of this chapter. § 6-3.453 Construction contracts.

(a) Contracts for capital improvements, alterations, and major repairs, as described in 6 Foreign Affairs Manual 730, are not subject to the provisions of this title.

(b) Construction contracts, other than those described in paragraph (a) of this section are subject to the provisions of this title. All such contracts shall be firm priced and on an end-product basis, when feasible.

Subpart 6-3.6-Small Purchases

SOURCE: The provisions of this Subpart 6-3.6 appear at 33 F.R. 570, Jan. 17, 1968, unless otherwise noted.

§ 6-3.604 Imprest funds (petty cash) method.

§ 6-3.604-3 Agency responsibilities.

Regulations regarding the establishing of and accounting for imprest funds (operating cash advances) are contained in Volume 4, Foreign Affairs Manual (FAM), Financial Management.

§ 6-3.604-6 Procurement and payment.

(a) Local employees may be authorized to make small purchases utilizing imprest funds.

(b) The services of cashiers, designated in accordance with 4 FAM 300, may be used to facilitate payments utilizing imprest funds.

(c) Standard form 1165 may be used, in accordance with procedures in 4 FAM 422, to document small purchases utilizing imprest funds if itemized receipts are not available from vendor.

§ 6-3.605 Purchase order forms. § 6-3.605-3 Agency order forms.

(a) Prescribed forms. Foreign Service forms 455 and 455a (Purchase Order, Receiving Report and Voucher, and Continuation Sheet) are prescribed for post use for all purposes described in this section. These forms provide, in one set, a purchase or delivery order, receiving report and public voucher with requisite

space for purchase data and budgetary, accounting and voucher payment data. They may be used as:

(1) A purchase order for small purchases;

(2) A delivery order under an established contract;

(3) Documentation in connection with a blanket purchase arrangement; (4) A voucher.

(b) Procedures. (1) Local procedures shall be established by posts for local and third country small purchases. Regulations regarding the receiving report and public voucher portions are in 4 FAM 420.

(2) Posts are authorized to purchase from both government contract sources (such as Federal Supply Schedules and the Department's supply schedules) and noncontract sources within the United States.

(1) Procedures for purchasing for surface shipment from Federal Supply Schedule contractors are in § 6-5.5004 of this chapter. They may be followed, as applicable, in purchasing from other government contractors. The small purchase limitation of $2,500 does not apply to purchases under Government contracts existing at the time of purchase.

(ii) Posts should normally follow the procedures in § 6-5.5004 of this chapter in purchasing for surface shipment from noncontract sources so that payment to the vendor may be accelerated through usage of the Despatch Agent's services. The small purchases limitation of $2,500 applies to the aggregate total of the order (including all estimated handling and freight charges) to be paid to the vendor. § 6-3.605-50 Unpriced purchase order.

(a) An unpriced purchase order is one for which the price is not established at the time of issuance of the order.

(b) An unpriced purchase order may be used only when all of the following conditions are present:

(1) The order is one by a post to a U.S. source.

(2) It is impractical to obtain pricing in advance of issuance of the order; and (3) The prices are known to be competitive.

(c) A realistic monetary limitation shall be placed on the unpriced purchase order. This amount is used to establish an obligation subject to adjustment when the firm price is established.

(d) The following clause shall be included in each unpriced purchase order:

The primary purpose of the Blanket Purchase Arrangement is to eliminate documentation incident to individual petty cash or purchase order purchases. Its use, in itself, does not imply any increased amount of purchases from the vendor involved as the same policies that apply to selection of suppliers in utilizing the other small purchase methods must be applied to individual purchases under the arrangement.

§ 6-3.606-2 Authority to use blanket purchase arrangements.

Blanket purchase arrangements may be established for periods not to exceed 6 months and individual purchases under them may not exceed $2,500. Maximum cumulative limitations may not exceed $2,500 unless authorized by the Chief, Supply and Transportation Services Division. Arrangements established under existing contracts, however, need only conform to the terms of the contract.

§ 6-3.606-3 Establishment of account.

(a) Separate accounts should be established for each user agency and Departmental office.

(b) Fund availability for each account shall be established as provided for in 4 FAM 050. No purchases may be made against the account which exceed the fund availability.

(c) All accounts should be examined periodically to determine whether repetitive purchases of the same item or class of items under them should be consolidated for procurement.

(1) Authority to the supplier to furnish items or services upon order within a stipulated general class for a stipulated period.

(2) The names of persons authorized to place orders, the method of placing such orders, the maximum limitation of individual orders (which, in any case, may not exceed $2,500), and the maximum cumulative purchase limitation under the arrangement.

(3) Method of establishing a record of sale and receipt under each order, preferably through use of the supplier's standard delivery ticket.

(4) Understanding that the obligation to purchase is limited to the extent of individual orders.

(5) Method and place of delivery if relevant.

(6) Time and/or trade discount terms that might apply to any standard pricing that might exist.

(7) Frequency of invoicing, preferably monthly, itemized and accompanied by the original of individual delivery tickets.

(b) Regardless of the type of documentation used, any reference to funding included therein should be specified as constituting an availability or reservation only of funds and not an obligation to purchase.

Subpart 6-3.8-Price Negotiation Policies and Techniques

§ 6-3.814 Contract clauses.

Requests for waivers from the inclusion of the clauses in contracts with foreign governments or agencies thereof shall be submitted with complete justification to the Chief, Supply and Transportation Services Division, in accordance with FPR 1-3.814-1(c), 1-3.814-2 (d), and 1-3.814-3(c). [31 F.R. 6624, May 4, 1966]

This Subpart 6-5.50 prescribes certain mandatory and optional sources of supply for overseas posts.

§ 6-5.5001 Motorized transportation equipment.

Motorized transportation equipment such as, but not limited to, automobiles, trucks, jeeps, and boats shall not be procured without the prior approval of the Department. Requests for approval along with justification shall be submitted to OPR/ST.

[31 F.R. 6624, May 4, 1966]

§ 6-5.5002 Mandatory source items.

Regional supply center catalogs and Departmental directives specify certain mandatory sources for such items as calendars, office machines, Foreign Service specialty items, high value items technical and complex equipment, medical supplies and items stocked by GSA regional stores depots.

§ 6-5.5003 Procurement for other posts.

Central and constituent supply posts are authorized to procure supplies and services requested by other posts. The requesting post may obtain availability and price information from the procuring post. The procurement request must be obligated and cite the appropriate obligation, appropriation and allotment data. The procuring post shall notify the requesting post of the dollar cost so that any remainder of the obligation may be liquidated.

§ 6-5.5004 Federal Supply Schedule

contractors are obligated, with certain exceptions, to deliver for a definite period stated in the Schedule all supplies and services ordered under the contracts. Most contracts have stated minimum and maximum order limitations and provide for delivery only within the 48 contiguous States and the District of Columbia. § 6-5.5004-2 Applicability.

Purchasing activities of the Department are required to procure supplies and services covered by Mandatory Federal Supply Schedules except that use of these schedules is not mandatory for overseas posts nor is it required for anv procurements inside the United States for use outside the United States. (See § 6-1.302-1.)

§ 6-5.5004-3 Availability.

The Federal Supply Schedule Checklist and Guide and needed Federal Supply Schedules and contractors' catalogs and price lists may be obtained by submitting GSA Form 457, Request for Federal Supply Schedules and Contractors' catalogs to General Services Administration, Federal Supply Service, National Buying Division, Washington, D.C. § 6-5.5004-4 Procedure for central supply posts.

(a) Procurement period. Purchases may be made at any time during the period of the contract. Purchase orders must, however, reach the contractor before the expiration date of the contract.

(b) Prescribed forms. Foreign Service Form 455 (Purchase Order, Receiving Report and Voucher) and Foreign Service Form 455a (Purchase Order, Receiving Report and Voucher, Continuation Sheet) shall be used to make purchases under Federal Supply Schedules. These forms are illustrated in Subpart 6-16.9.

(c) Preparation of forms. The purchase order shall be prepared as prescribed thereon, subject to the following additional instructions:

(1) Disregard the reverse side of the purchase order.

(2) For Contract No. insert the contract number applicable to the contract item and the contractor from whom the purchase will be made. This number will be found in the appropriate Federal Supply Schedule, in the list of contractors, in the first or left column, opposite the name of the contractor from whom the purchase will be made. The number will always have the prefix GS-OOS.

The small "o" or "s" appearing directly in front of the number should be disregarded.

(3) The date of the contract is the date shown on the cover of the appropriate Federal Supply Schedule as the beginning of the period of the Schedule.

(4) In the space provided for the place where the supplies are to be furnished, insert the name of the post to which the supplies are to be shipped. This will often be a constituent supply post rather than the procuring central supply post. If the space provided is not adequate, include this information with the words "Ship to;" with the description of the supplies ordered.

(5) Depending on the terms of the contract, insert the following instructions concerning export packing with the description of the supplies ordered:

(1) Where no extra charge is made, insert the words, "To be export packed."

(ii) Where additional charge is made, and the method of computation is shown, insert the words, "To be export packed," fill in the packing cost in the amount column, and fill in the quantity and unit price columns if the computation method permits.

(iii) Where additional charge is made, and the method of computation is shown, insert the words, "To be export packed," and the following instruction-"Export packing charges may be added to invoice, such charges to be itemized to show cost of materials and cost of labor. It is required that the invoice include a statement to the effect that allowance for domestic packing, if any, has been made in the charge for export packing."

(iv) Where the contractor will not export pack, insert the words, "Notify: U.S. Despatch Agent, 45 Broadway, New York, New York 10006, when goods are ready for delivery, domestic packed". The U.S. Despatch Agent will arrange for export packing.

(6) On all copies of the purchase order except the 2 copies sent to the contractor, insert the following information with the description of the supplies ordered:

(1) Insert the words "Estimated Ocean Freight $------," and fill in the blank space with the appropriate total based on the applicable freight factors currently in effect.

(ii) Where additional charge is made for export packing, but the method of computation is not shown in the contract, insert the words, "Estimated Ex

23

" and fill

port Packing Charges in the blank space with the estimated cost of export packing.

(iii) Insert the words, "Estimated Inland Freight $------," and fill in the blank space with the amount estimated for inland freight, on the basis of the weight or volume of the supplies and the distance between the shipping point shown on the contract and the assumed port of export.

(7) The total amount of funds to be obligated will be the figure found by adding the total cost of the supplies ordered, the estimated or actual export packing charges, the estimated ocean freight costs, and the estimated inland freight costs, if any.

(d) Distribution. The purchase order shall be prepared with sufficient copies to permit the following execution and distribution:

(1) Post fiscal office, original (manually signed by ordering and fiscal offcers) and 1 copy.

(2) Contractor, 2 copies (both manually signed by ordering officer).

(3) U.S. Despatch Agent, 2 copies (1 copy manually signed by ordering and fiscal officers).

(e) Attachments. The clauses set forth below shall be prepared, each as a separate document, and attached to the 2 copies of the purchase order sent to the Contractor. The documents containing the clauses shall be identified by the purchase order number and the rank and address of the ordering post. (1) Instruction to vendors. INSTRUCTIONS TO VENDORS

Foreign Service Post__ Purchase Order No.

1. Submission of bills: To assure prompt payment, vendors should render their bills to the ordering posts in the following

manner:

(a) Submit an original and two copies of the invoice.

(b) The invoice shall be prepared to conform with the purchase order, showing number and date of order, date of delivery, description of each item, quantity, unit cost and total amount.

(c) The invoice should also bear an invoice number or identification to enable positive and immediate association with the related payment check which will be accompanied by one copy of the invoice.

(d) Show parcel post charges, if any, as a separate item on the invoice, indicating the gross weight and shipping point. (Prepaid freight or express charges must be supported by the original freight or express receipts.)

(e) Show terms or cash discounts on the invoice, even if the terms are net.

(f) Include in invoice: Proper post designation (Embassy, etc.) and address shown on the post's purchase order in space "This Document Prepared at ***."

(g) Payment for materials and supplies cannot be made in advance.

2. If, by terms of the contract, inland transportation is not the responsibility of vendor and he is unwilling to add such charges to the invoice, he should request of the U.S. Despatch Agent a bill of lading to cover the shipment.

(2) Shipping instructions.

SHIPPING INSTRUCTIONS

Foreign Service Post....

Purchase Order No.

EXPORT PACKING SPECIFICATIONS

Packing box shall be of solid construction in accordance with best commercial practices and sumciently strong in direct ratio to the weight of the contents to withstand excessively rough handling while in transit overseas. It shall be constructed of lumber that is well seasoned, reasonably sound, free from bad cross-grain and from knots or knotholes that interfere with mailing or that occupy more than of the width of the piece of lumber. Box shall be constructed with three-way corners and diagonal bracing. All nails shall be cementcoated, of correct size and properly spaced to avoid splitting or warping, and shall be driven into the grain of the wood. Dimensions of lumber shall be in accordance with the following table, dependent upon the weight of the contents:

Box shall be lined with waterproof paper and shall be bound with 4" steel straps Armly stapled in position to prevent slipping off the box. Articles must be secured and braced inside the shipping container to prevent shifting.

Packing cases weighing 1000 pounds and more must be equipped with skids. Each skid shall consist of two end sections of 2 x 6-inch lumber placed flat and a center section of 2 x 4-inch lumber placed flat and then arranged in line to provide 10-inch forklift spaces between center and end sections.

When goods are ready for shipments, prepare four (4) copies of a packing list and notify the U.S. Despatch Agent, 45 Broadway, New York 8, N.Y., by sending him three (3) copies of the packing list indicating case

number, itemized list of contents, net and gross weights in pounds and kilograms and outside dimension—including all clears-of each shipping container.

the

The fourth copy shall be placed in the packing case number one, and this container shall be marked so that it is easily identified by the consignee. Upon receipt of packing list the Despatch Agent will furnish export marks and instructions regarding shipment to port specified depending upon steamer services available at the time.

The export marks shall be stenciled on one side of each box reserved for that purpose and the appropriate case number stenciled in the lower left-hand corner, the purchase order number, net and gross weights in pounds and kilos shall be stenciled. (One kilogram equals 2.2046 pounds avoirdupois.) If the size of the box is too small to accommodate all stenciling on one side, the purchase order number and the weights may be stenciled on the side opposite that used for the export marks and case number.

The purchase order number must appear on all containers and papers relating to this order.

(3) Excise tax exemption statement for vendors.

EXCISE TAX EXEMPTION STATEMENT FOR
VENDORS

Foreign Service Post
Purchase Order No.

This is to certify that the item(s) covered by this purchase order is/are for export solely for the use of the American Foreign Service post shown above. It is, therefore, requested that the extra signed copy of the purchase order furnished herewith be accepted as evidence of intent to export. Final proof of exportation may be obtained from the U.S. Despatch Agent, 45 Broadway, New York 6, N.Y., such proof to be accepted in lieu of payment of excise tax.

(1) Billing. Invoices should be submitted as follows:

(1) Vendors should submit invoices directly to the ordering post in accordance with the "Instructions to Vendors."

(2) The U.S. Despatch Agent will prepare and submit to the Department, Office of Finance, all vouchers covering expenses incurred by him related to shipments to the ordering post. A liquidating document showing any packing and inland freight charges, and ocean freight charges, will be sent by the Department, Office of Finance, to the post. (g) Payment. Upon receipt of the vendor's invoice and a copy of the purchase order from the U.S. Despatch Agent showing receipt of the supplies by the Government, the post shall prepare a Treasury check in the amount of the invoice payable to the vendor and mail it