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and minority business enterprise is at the price paid with the supplier condefined in § 1-1.1310–2.
cerned. In most cases, this will consist (c) The following factors influence merely of showing the names of the supthe number of quotations required in pliers contacted and the prices and other connection with any particular purchase: terms and conditions quoted by each.
(1) The nature of the article or service Handwritten notations on the purchase to be procured, and whether highly com action request form of the agency, or petitive and readily available in several 'whatever medium the purchaser is using makes or brands, or relatively noncom as his basis for making the purchase, are petitive.
satisfactory for this purpose. (2) Information obtained in making (2) Written solicitations. Retention in recent purchases of the same or similar the purchase files of written quotations item.
received, or references to printed price (3) The urgency of the proposed pur lists used, will usually suffice as the chase.
record supporting the price paid. (4) The dollar value of the proposed (c) Purchase data collected or compurchase.
piled during the course of arranging the (5) Past experience concerning spe purchase are for administrative and cific dealers' prices.
guidance value in making the purchase (d) Solicitation of quotations may be and issuing the appropriate purchase effected orally or in writing. Written document. The retention of such data solicitation should be used only in such in the purchase files for use in subsecircumstances as where (1) the suppliers quent reference, or as administratively are located outside the local area, (2) required by agencies for management respecial specifications are involved, (3) a view, should be limited in time and quanlarge number of items are included in a tity to the minimum necessary for such single proposed procurement, or (4) ob use. taining oral quotations is not considered (d) This § 1-3.603-2 ks not to be conefficient. Standard Form 18, Request for strued as modifying the requirements of Quotations shall be used for written applicable regulations relating to the resolicitation of quotations in accordance tention of records. with § 1-16.201.
81-3.604 Imprest funds (petty cash) (e) Where it is the practice for sup
method. liers to furnish standing price quotations on supplies or services required on § 1-3.604–) General. an intermittent and recurring basis, this This § 1-3.604 prescribes policies and information may be used in lieu of ob procedures for making small purchases taining individual quotations each time a of supplies and nonpersonal services purchase is contemplated. In such cases,
through the use of imprest funds. Rethe purchaser shall assure that the price lated policies and regulations concernInformation is current and that the ing bonding requirements and the esGovernment obtains the benefit of maxi tablishment of, and accounting for, immum discounts.
prest funds are contained in Treasury (29 FR 10155, July 24, 1964, as amended at Department Circular Nos. 1030 and 969, 37 FR 13979, July 15, 1972)
and GAO Manual 7 GAO 2700 and 5120. § 1-3.603-2 Data to support small pur. 81-3.604_2 Definition of immrest fund. chases.
The term “imprest fund” means a fixed (a) The manner of securing quota
cash or petty cash fund in the form of tions and the nature and extent of in
currency, coin, or Government check formation to be required for small pur
which has been advanced by an official chases, are for determination by the
Government disbursing office, without procuring agency, but should be limited to only that deemed necessary to con
charge to a Government appropriation clude purchase action.
or fund account, to a duly authorized (b) The following are illustrative of cashier for cash payment or other cash the extent to which quotation informa requirement purposes as specified in his tion should be recorded:
designation or authorization. The fund (1) Oral solicitations. When oral price may be of a revolving type, replenished quotations are obtained, informal records to a fixed amount as spent or used, or should be established which will reflect of a stationary nature such as a change clearly the propriety of placing the order making fund.
$ 1-3.604–3 Agency responsibilities. $100 for any one transaction, except that Each agency using imprest funds for
under emergency conditions the amount small cash purchases of supplies or non
for any one transaction may be increased personal services shall have the respon
not to exceed $250. Exceptions or addisibility of periodically reviewing and
tions needed in connection with procuredetermining whether there is continuing
ment matters described in § 1-3.604-4, as need for each fund established, and that
well as the maximum dollar limitation amounts of such funds are not in excess
for any one procurement transaction, of actual needs. Agencies should take
should be addressed to the Treasury Deprompt action to have imprest funds
partment (pursuant to Treasury Departadjusted to a level commensurate with
ment Circular No. 1030). The granting demonstrated needs whenever circum
of any such exceptions or additions will stances warrant such action. In this
be coordinated with the Administrator of connection, each agency shall:
General Services or his designee. Ap(a) Study agency practices to insure
proved exceptions now existing will auto
matically be continued without specific that full advantage is taken of all small
request from the agency to which exceppurchase processes; and (b) Develop and issue appropriate im
tions have been granted.
(b) Supplies or services subject to plementing regulations.
restrictions under any provisions of law § 1-3.6044 Use of imprest funds. or regulation may not be purchased (a) The cash payment processes de
through use of imprest funds except scribed in this section should be used
with such statutory and regulatory for making small purchases whenever
restrictions. advantageous to the Government. Cash § 1-3.604–6 Procurement and payment. purchases will generally be advanta
(a) Small purchases utilizing imprest geous in the following circumstances:
funds may be made only by authorized (1) When vendors are reluctant to
employees. honor small purchase orders. (2) When vendors are not equipped
(b) When payment for small pur
chases is made from imprest funds, no to bill agencies for purchases in accordance with normal business practices. purchase order need be issued unless it
(3) When supplies or nonpersonal is advantageous to the Government, for services are needed at locations not example, when required by the vendor served by purchase offices or when the to grant Government discounts. When established sources of issue are not con so required, any authorized purchase veniently accessible to point of use. order form may be used and will be (4) When provisions for local credit
endorsed "payment to be made in cash.” arrangements and monthly billings by
(c) Receipts must be secured for each vendors are impracticable. (b) The following are typical procure
payment from imprest funds (pursuant ments for which the use of imprest funds
to the provisions of GAO Manual 7 GAO
5120). would be suitable:
(1) Emergency, fill-in, occasional, or (d) The cashier may either reimburse special purchases of supplies or services. employees for amounts paid by them for (2) Repair of equipment.
authorized purchases or furnish the (3) Perishable subsistence.
cash necessary to consummate such (4) Public utility bills where location
purchases. Purchases for which cash of the activity is so situated as to make
has been furnished in advance should be cash payment more efficient.
confirmed within five work days from (5) Postage stamps, parcel post, COD,
the date of advance. postal charges, local drayage, transportation tokens or passes (including cash § 1-3.604—7 Tax exemption certificates. fares), and taxi fares.
Government tax exemption certificates (6) Expenses incident to travel and (Standard Form 1094-Revised) will not emergency travel advances (as specified be required unless the amount of the in Treasury Department Circular No.
taxes on any one bill or purchase exceeds 4030).
one dollar. (See GAO Manual of Poll§ 1-3.604–5 Limitations.
cies and Procedures, Title 7, section (a) Small purchases made pursuant to
nt to 4820.10). imprest fund procedures may not exceed 81–3.605 Purchase order forms.
§ 1-3.605-1 Standard Form 44, Pur agency name, address, and serial numchasc Order-Invoice-Voucher.
bers; and (ii) on special weight of paper (a) Purpose of the form. Standard and with the type of construction, num. Form 44, Purchase Order-Invoice ber of sets per book, and number of Voucher (Illustrated in g 1-16.901-44), 18 parts per set, as specified by the or& pocket-size purchase order form de
dering agency. Also, the administrative signed primarily for on-the-spot over Instructions on the inside front cover of the-counter purchases of supplies and the books may be supplemented by using nonpersonal services. It is a multi-pur
agencies. However, the format of Standpose form which can be used as a pur
ard Form 44 may not be changed unless chase order, receiving report, invoice,
otherwise authorized by the General and public voucher.
Services Administration. (b) Prescribed use. Standard Form 44 § 1-3.605-2 Standard Forms 147 and is prescribed for use in connection with
148, Order for Supplies or Services. the documenation of purchases when all
(a) General. (1) Standard Form 147, of the following conditions are satisfied: (1) Except for purchases made under
Order for Supplies or Services (illus
trated in § 1-16.901-147) and Standard public exigency circumstances, the
Form 148, Continuation Sheet (illusamount of the purchase is not in excess of $2,500.
trated in § 1--16.901–148). are multi-pur
pose forms designed for use as a pur(2) The supplies or services are im
chase order, delivery order, receiving and mediately available. (3) One delivery and one payment will
inspection report, and invoice.
(2) Standard Forms 147 and 148 are be made. (4) Its use is determined to be more
available for use by all Federal agencies economical and efficient than use of
and shall be used when in the judgother small purchase methods.
ment of the agency concerned the use (c) Terms and conditions. There are
of such forms is considered economical no written terins and conditions included
(3) Standard Form on Standard Form 44. Since there is, for
147 is designed
primarily for use as: all practical purposes, simultaneous placing of purchase orders on Standard Form
(i) A purchase order for small pur44 and delivery of the items ordered,
chases not in excess of $2,500. written terms and conditions are not
(ii) A delivery order for ordering or considered necessary.
scheduling deliveries against established (d) Instructions for use. General pro
contracts or from Government sources cedural instructions governing the use of
of supply. Standard Form 44 are printed on the
(b) Terms and conditions. (1) Terms form and on the inside front cover of
and conditions generally suitable for each book of forms.
most small purchases are printed on the (e) Agency implementation. Agency
reverse of Standard Form 147. implementation shall be consistent with
(2) Additional terms and conditions, this § 1-3.605–1, and shall provide ade
which are consistent with those printed quate safeguards regarding the control
on the form, may be added by agencies of forms and accounting for purchases.
provided they are designated as agency (f) Description and availability of
terms and conditions, and not as stand
ard terms and conditions of Standard form. (1) Standard Form 44 is available from General Services Administration
Form 147. supply depots in four-part carbon inter
(c) Description and availability of
forms. (1) Standard Forms 147 and leaved sets made up into books, consist
148 are available from General Services ing of twenty-five sets per book. Each set of forms consists of the following
Administration supply depots in carbon copies: Seller's Invoice, Seller's Copy of
interleaved sets of six parts and may be Order, Receiving Report-Accounting
ordered in the same manner as other
standard forms, or the forms may be Copy, and Memorandum Copy. Standard Form 44 may be ordered in the same
ordered specially printed in accordmanner as other standard forms, or the
ance with paragraph (c) (2) of this form may be ordered specially printed in
$ 1-3.605-2. accordance with paragraph (f) (2) of
(2) Standard Forms 147 and 148 may this § 1-3.605–1.
be ordered specially printed (i) to in(2) Standard Form 44 may be or- clude agency name, address, and serial dered specially printed (i) to include numbers; and (ii) on special weight of
paper and with the type of construction, and number of copies per set, as specified by the ordering agency. The forms may be made up as snap-out manifold forms, cut sheets, or reproducible masters. However, the format of Standard Forms 147 and 148 may not be changed unless authorized by the General Seryices Administration. § 1-3.605–3 Agency order forms.
Where Standard Forms 147 and 148 are not used, order forms designed by executive agencies shall conform insofar as practicable with the form illustrated in § 1-16.901–147. 81-3.606 Blanket purchase arrange
ments. $ 1-3.606-1 General.
This section establishes policy relating to the purchase of day-to-day requirements through arrangements with vendors or dealers to furnish, on a "charge account” basis, such supplies or nonpersonal services as the Government may order from such sources during a stated period of time. Generally, these arrangements should be made only with local sources so that individual purchases thereunder can be effected with a minimum of time and paper work. In addition to making blanket purchase arrangements for small purchases, similar blanket purchase accounts may be established with Federal Supply Schedule contractors, if not inconsistent or at variance with the terms of the applicable Federal Supply Schedule Contract. § 1-3.606–2 Authority to use blanket
purchase arrangements. (a) Blanket purchase arrangements are authorized when: (1) A wide variety of items in a broad
s of goods. like hardware, are gener ally purchased from local suppliers but the exact items, quantities, and delivery requirements are not known in advance and may vary considerably.
(2) There is a need to provide local commercial sources of supply for one or more offices or projects in a given area that do not have or need authority to purchase otherwise.
(3) In any other case where the writing of numerous purchase orders can be avoided through the use of this procedure
(b) Blanket purchase arrangements should be made with local firms from whom numerous individual purchases
will likely be made in a given period. For example, where past experience has shown that certain commercial firms selling supplies in a local area are dependable and consistently lower in price than other supply firms in the area dealing in the same commodities, and numerous small purchases are usually made from such suppliers, it would be advan! tageous to establish blanket purchase ar..! rangements with these firms.
(c) There is no prohibition against making these arrangements with several suppliers for the same class or classes of items. Where experience indicates that prices vary between suppliers, it is preferable to have several blanket purchase arrangements so that delivery orders can be placed with the firm offering the best price. $ 1-3.606-3 Establishment of account.
If it is determined that blanket purchase arrangements with certain suppliers would be advantageous, such suppliers should be contacted, preferably in person or through correspondence, in order to make the necessary arrangements with respect to securing maximum discounts, documenting the individual purchase transactions, periodic billing, and other necessary details. 8 1-3.6064 Documentation.
(a) Any documentation that assures the following with respect to individual purchase transactions is permissible:
(1) That the vendor and purchaser are in agreement as to what is being purchased.
(2) That at the time of delivery a record of sale and receipt is created.
(3) That at the time of billing for payment the foregoing requirements have provided evidence of the items, quantity, price, date sold and other relevant data.
(b) The issuance of a formal purchase order to document blanket purchase arrangements may be necessary only in certain instances. Such instances may be: when required by the vendor for administrative or tax exemption purposes; when administratively deemed necessary in the best interests of the Government by an agency; or when it is necessary to fix the extent of items covered, quantity, prices, expenditure authorized, activities participating, or otherwise identify or isolate areas of the arrangement. The issuance of a purchase order for Government purchasing
or accounting reasons alone is not dividual deliveries and transactions unnecessary.
der blanket purchase arrangements. (1) Purchase orders establishing (f) The use of a blanket purchase blanket purchase arrangements, when arrangement does not authorize purrequired, may be general and broad in chases not otherwise authorized by law language with only sufficient detail to or regulation. For example, the blanindicate the general nature of supplies ket purchase arrangement, being & or services to be covered, and may or method of simplifying the making of inmay not, as the need dictates, be specific dividual small purchases, may not be us to quantity, quality, specifications, or used to avoid the $2,500 limitation, time limitation. The blanket purchase (g) The blanket purchase arrangeorders may be issued on any authorized ment method is primarily designed to purchase order form. Individual blanket reduce the amount of documentation in purchase orders terminate when the pur connection with small purchases. The chases thereunder total the dollar same policies as to selection of suppliers amount limitation or when the stated on the basis of price, time discounts, time period expires..
quality of merchandise, and responsi(2) In any contemplated amendment bility of suppliers pertain to blanket purof a blanket purchase order, due consid- chase arrangements and purchases eration should be given to possible thereunder as to purchases made by changes in market conditions, sources of other approved methods. Individual supply, etc., which may warrant placing purchases under blanket purchase ara new order with the same or a different rangements should be made only after source in preference to amendment. making price comparisons with other
sources available to the extent practi§ 1-3.606-5 Agency implementation.
cable, consistent with the size and nature The following general instructions are of the purchase involved. set forth for agency use in the issuance (h) Constant consideration should be of administrative regulations implement given to possible changes in market coning this policy:
ditions, sources of supply, and other (a) The vendor-agency relationship pertinent factors which may warrant is that of an open account limited only making new arrangements with different by the maximum amount and time pe dealers or vendors, or modifying existing riod limitations fixed by that agency.
arrangements. (b) The vendor-agency arrangement
8 1-3.607 may be limited to furnishing individual
Interagency use of local term Items, or commodity groups or classes, or
contracts. it may be unlimited for all items or serv (a) General. This § 1-3.607 provides ices that the source of supply is in a posi for the cooperative use by the field office tion to furnish.
of one executive agency of the local term (c) The requirements of one or more contracts of another agency, or of anactivities, offices, or projects in a geo- other office of the same agency, under graphical area may be secured by this the circumstances outlined, and estabmeans.
lishes criteria for local term contracting (d) Authority and responsibility for by an agency for the combined needs of effecting blanket purchase arrangements several agency offices in the area. These should be delegated by agencies to the contracts provide a means of meeting the lowest agency level to which the respon- local requirements for supplies and serysibility is placed or assigned for providing ices not available from normal agency supplies for its own operations or to internal supply channels or other preother offices, installations, projects, or scribed sources of supply. All Federal functions. Such levels may be organized agencies are urged to participate in this supply points, separate independent or program. detached field parties, or one-man posts (b) General conditions warranting use. or activities.
The use of term contracts usually will be (e) The use of blanket purchase ar- found expedient and economical under rangements does not exempt the agency any or all of the following conditions: from responsibility for keeping obliga (1) When the day-to-day requiretions and expenditures within available ments for the supply or service are confunds, but this should be accomplished tinuing or recurring. by the use of simplified methods and by (2) When the probable total requireavoiding formal fiscal recordation of in- ments only are known and it is expedient