[Federal Register Volume 60, Number 127 (Monday, July 3, 1995)]
[Rules and Regulations]
[Pages 34741-34766]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-16081]



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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 2, 3, 4, 5, 6, 8, 9, 13, 15, 16, 19, 20, 22, 23, 25, 
27, 28, 29, 32, 36, 41, 42, 43, 44, 45, 46, 47, 49, 52, and 53

[FAC 90-29; FAR Case 94-770; Item III]
RIN 9000-AG18


Federal Acquisition Regulation; Simplified Acquisition 
Procedures/FACNET

AGENCIES: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Interim rule with request for comment.

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SUMMARY: This interim rule is issued pursuant to the new simplified 
acquisition and Federal Acquisition Computer Network (FACNET) 
requirements of the Federal Acquisition Streamlining Act of 1994 (the 
Act). This regulatory action was subject to Office of Management and 
Budget review under Executive Order 12866 dated September 30, 1993.

DATES: Effective Date: July 3, 1995.
    Comment Date: Comments should be submitted to the FAR Secretariat 
at the address shown below on or before September 1, 1995, to be 
considered in the formulation of a final rule.

ADDRESSES: Interested parties should submit written comments to: 
General Services Administration, FAR Secretariat (VRS), 18th & F 
Streets NW., Room 4037, Attn: Ms. Beverly Fayson, Washington, DC 20405.
    Please cite FAC 90-29, FAR case 94-770 in all correspondence 
related to this case.

FOR FURTHER INFORMATION CONTACT:
Diana Maykowskyj, Team Leader, Simplified Acquisition Procedures/FACNET 
Team, on (703) 274-6307 in reference to this FAR case. For general 
information, contact the FAR Secretariat, Room 4037, GS Building, 
Washington, DC 20405 (202) 501-4755. Please cite FAC 90-29, FAR Case 
94-770, Simplified Acquisition Procedures.

SUPPLEMENTARY INFORMATION:

A. Background

    The Federal Acquisition Streamlining Act of 1994, Pub. L. 103-355 
(FASA), provides authorities that streamline the acquisition process 
and minimize burdensome Government-unique requirements. Major changes 
in the acquisition process as a result of the Act's implementation 
include the areas of commercial item acquisition, simplified 
acquisition procedures, the Truth in Negotiations Act and Federal 
Acquisition Computer Network (FACNET).
    The terms ``simplified acquisition'' and ``Federal Acquisition 
Computer Network (FACNET)'' are defined by FASA. FASA defines the 
simplified acquisition threshold as $100,000. It limits use of 
simplified acquisition procedures by procurement activities not having 
certified Interim FACNET to procurements not exceeding $50,000. Use of 
simplified acquisition procedures is also limited to procurements not 
exceeding $50,000 if any agency does not have certified Full FACNET by 
January 1, 2000.
    Review of the law and this implementing rule requires that the 
difference between the simplified acquisition threshold and the use of 
simplified acquisition procedures be recognized. The simplified 
acquisition threshold is $100,000. The authority to use simplified 
acquisition procedures at the $100,000 level depends on implementation 
and proper certification of FACNET.
    This rule, the vast majority of which was published as a proposed 
rule in the Federal Register at 60 FR 12366, March 6, 1995, 
incorporates FAR Subpart 4.5 for FACNET information and guidance. FAR 
Subpart 4.5 provides definitions, certification information, and 
exemptions in accordance with FASA. FAR case 91-104 (``Electronic 
Commerce'') and this implementation of FASA are interdependent and are 
meant to be considered jointly. Reviewers are advised that FACNET is 
not a single electronic system that will be used by 

[[Page 34742]]
all executive agencies. It is, however, a universal electronic 
capability that will permit potential contractors to, at a minimum, 
obtain information on proposed procurements, submit responses, query 
the system, and receive awards on a government-wide basis. Each agency 
will determine the system(s) that will be used by its procuring 
activities so that they can certify Interim FACNET for those activities 
and Full FACNET for the agency. The Act and this rule also provide for 
exempting individual procurements and procuring activities from the use 
of FACNET. This becomes significant when agencies certify Full FACNET 
which is based, in part, on the percentage of non-exempt transactions 
which were made through FACNET during the previous fiscal year.
    Implementation of FACNET includes a vendor registration requirement 
for any business entity wishing to do business with the Government 
electronically. Contractor information will be submitted to the Central 
Contractor Registration in accordance with the Federal implementation 
conventions.
    There are technical requirements and other procedures with respect 
to FACNET that are not appropriate for coverage in the FAR but are 
needed by executive agencies to fully implement FACNET. This 
information will be disseminated via other appropriate means.
    Further, be advised that the micro-purchase coverage that appeared 
in the Federal Register on December 15, 1994, FAR case 94-771 will be 
merged with the SAT/FACNET coverage in the final rule. This will 
incorporate all of the FASA changes under simplified acquisition 
procedures.
    This rule also implements section 4004 of FASA to reserve each 
contract for the purchase of goods or services that have an anticipated 
value greater than $2,500, but not greater than $100,000, for exclusive 
small business participation unless the contracting officer determines 
there is no reasonable expectation of obtaining offers from two or more 
small businesses that are competitive with market price, quality and 
delivery.
    In implementing section 4004, the issue of the nonmanufacturer rule 
arose. Existing regulations allow a small business to furnish ``any 
domestic end product'' under procurements set-aside for small business 
and utilizing small purchase procedures. Based upon discussion with 
SBA's Office of Size Standards, it was determined that this automatic 
waiver of the non-manufacturers rule would not apply to acquisitions 
under the simplified acquisition threshold and its perpetuation would 
be in conflict with SBA's Size Regulations, which govern this issue. 
Based upon this advice, the rule requires all dealers submitting a bid 
or quotation on a procurement reserved for small business to furnish 
the product of a small business manufacturer unless the Small Business 
Administration has issued a waiver.
    The reader should note the key features represented in FAR case 94-
770 which will change the acquisition process significantly upon 
implementation and continue to do so as contracting offices/activities 
and agencies begin to certify and implement the use of FACNET. These 
key features are: the small purchase limitation of $25,000 becomes the 
simplified acquisition threshold of $100,000 (see 13.101); use of the 
simplified acquisition procedures is tied to FACNET--simplified 
acquisition procedures may be used up to $50,000 upon FAR 
implementation without FACNET and up to $100,000 upon interim FACNET 
certification (see 13.103)(b)); for non-FACNET acquisitions over 
$25,000, a synopsis for 15 days is still required; solicitation 
response time must provide a reasonable amount of time to afford 
potential offerors a reasonable opportunity to respond; the regulation 
exempts simplified acquisition procedures from 15 statutes and from 
certain provisions and clauses; contracting officers need to add any 
necessary clauses to the back of the purchase order form; and all 
purchases between $2,500 and $100,000 are reserved for small business 
(see 19.502-2).
    In addition to what the Act provided, the SAT/FACNET Team has 
incorporated coverage that provides flexibility and latitude that 
encourages the contracting officer to use innovative approaches in 
awarding contracts, seek the ``best value'' for the Government which 
includes past performance and quality; permits use of other than fixed 
price orders/contracts, when authorized by the agency; encourages the 
use of options; and increases the property clause threshold to be 
commensurate with the implementation and certification of FACNET.
    The most significant change in this rule is the implementation of 
FACNET which is addressed primarily in Subpart 4.5. FACNET will provide 
the capability of existing computer hardware and software to perform 
certain functions in a standard manner in order to provide one face to 
industry for the entire Government. FACNET is the preferred means for 
conducting all purchases under the simplified acquisition threshold 
($100,000) and above the micro-purchase threshold ($2,500). Contracting 
offices/activities may not conduct acquisitions using simplified 
acquisition procedures between $50,000 and $100,000, until they have 
certified and implemented interim FACNET.
    However, it is also significant to highlight what requirements did 
not change with FASA, such as the compliance with Part 8, required 
sources of supply; the policy on not splitting orders; requirement for 
posting $10,000 ($5,000 DOD); the need to synopsize over $25,000; the 
requirement for small business setasides; and contracting reporting.
    This interim rule and the interim rule published elsewhere in this 
issue under FAR case 91-104, Electronic Contracting, are interdependent 
and are meant to be considered jointly.

B. Regulatory Flexibility Act

    This rule is expected to have a significant economic impact on a 
substantial number of small entities within the meaning of the 
Regulatory Flexibility Act, 5 U.S.C. 601, et seq. This interim rule is 
designated to reduce the burden on entities desiring to do business 
with the Government and will apply to all large and small business 
entities, and all educational and nonprofit organizations who are 
interested in participating in Government acquisitions. The interim 
rule establishes the simplified acquisition threshold and sets forth 
policies and guidance for the implementation of FACNET pursuant to the 
Act. The implementation of Electronic Contracting and use of the 
Federal Acquisition Computer Network (FACNET) will provide for 
electronic exchange of acquisition information between the private 
sector and the Federal Government that will increase the opportunities 
for vendors currently doing business with the Government, particularly 
small businesses. It is recognized that an initial start-up cost will 
be incurred for the purchase of personal computer, modem, software, and 
telephone lines, estimated to be $1,500. Additionally, it is 
anticipated that most small businesses will subscribe to third party 
value added network (VAN) services to facilitate their communications 
with the Government's computers. The cost of advance subscription 
ranges from approximately $30 to $100 per month, depending on the type 
of services obtained. The interim rule does not duplicate, overlap, or 
conflict with any other Federal rules. 

[[Page 34743]]

    An initial Regulatory Flexibility Analysis (IRFA) in support of the 
interim rule has been prepared and will be provided to the Chief 
Council for Advocacy for the Small Business Administration. A copy of 
the IRFA may be obtained from the FAR Secretariat. Comments from small 
entities concerning the affected FAR parts will also be considered in 
accordance with 5 U.S.C. 610. Such comments must be submitted 
separately and cite 5 U.S.C. 601, et seq., (FAR case 94-770), in 
correspondence.

C. Paperwork Reduction Act

    This interim rule does impose an additional reporting or 
recordkeeping requirement on the public which requires the approval of 
the Office of Management and Budget under 44 U.S.C. 3501, et seq. 
Contractors will be required to electronically register with the 
Central Contractor Registration operated by the Defense Information 
Megacenter. The information to be provided is information currently 
reported under several existing forms including the SF-129, 
Solicitation Mailing List Application, the SF-3881, ACH Vendor/
Miscellaneous Payment Enrollment Form, and the DD-1052, Request for 
Assignment of a Commercial and Government Entity (CAGE) Code. 
Contractors will also be required to provide information pertaining to 
their electronic data interchange (EDI) capabilities. Establishment of 
a central registration system should eliminate the need to submit 
multiple registrations with each contracting office the contractor is 
doing business with.
    A request for approval of the information collection requirement 
concerning simplified acquisition procedures was submitted to OMB and 
approved through April 30, 1998, OMB Control 9000-0137. Public comments 
concerning this request were invited through a Federal Register notice 
at 60 FR 11659, March 2, 1995.

D. Determination to Issue an Interim Rule

    A determination has been made under the authority of the Secretary 
of Defense (DOD), the Administrator of General Services (GSA), and the 
Administrator of the National Aeronautics and Space Administration 
(NASA) pursuant to section 22 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 418b) that compelling reasons exist to promulgate 
this regulation as an interim rule.
    The Simplified Acquisition Threshold Procedures/Federal Acquisition 
Computer Network (SAT/FACNET) rule (FAR Case 94-770) and the Electronic 
Contracting (EC) rule (FAR Case 91-104) benefit industry and Government 
by enhancing efficiency of contracting in an environment of declining 
personnel staffing and resulting increase in workload for contracting 
personnel. The rules are linked and require simultaneous promulgation. 
The proposed rules were published simultaneously in the Federal 
Register on March 6, 1995, with the public comment period closing on 
May 5, 1995. A public meeting was held on these rules on April 3, 1995, 
and no substantive comments were presented at the meeting.
    Section 22 of the Office of Federal Procurement Policy Act permits 
issuance of procurement policies, regulations, procedures, or forms as 
interim rules prior to consideration of public comments when urgent and 
compelling circumstances make it impracticable to do otherwise. Urgent 
and compelling reasons exist to make these rules effective prior to 
full consideration of public comment. Proceeding with these interim 
rules is required to permit the Federal Government to cope with the 
fundamental downsizing of its acquisition workforce and the large end 
of fiscal year workload with diminished resources. The Federal 
Acquisition Streamlining Act of 1994 (FASA), and its provisions on SAT/
FACNET, provide relief from various burdens that affect the Government 
acquisition process. For example, purchases under the new simplified 
acquisition approach will become far less complex than today. Using 
figures from the Department of Defense for illustrative purposes, large 
purchase solicitations run 29 pages on the average whereas non-
automated small purchases are about 12 pages in length, and automated 
small purchase solicitations, used by some DOD purchasing activities, 
are even less, 1 to 2 pages. The beneficial results of implementing 
these FASA provisions are evidenced further by the time saved in 
awarding orders under the existing small purchase procedures as opposed 
to contracts above the small purchase threshold of $25,000. The current 
average lead-time for awards below $25,000 is 26 days, while above 
$25,000 the average lead-time is 90 days for sealed bids and 210 days 
for competitive negotiations. These timeframes will be reduced further 
by implementation of the simplified acquisition authority in this rule 
by establishing reasonable timeframes for submission of offers for 
simplified acquisitions in lieu of a rigid 30-day period. Through use 
of the simplified acquisition procedures for actions not exceeding 
$50,000, the lead-time for approximately 30,000 contracts per year will 
be reduced to a fraction of the current lead-time. Use of electronic 
commerce/electronic data interchange capabilities at procurement 
activities certified to use FACNET will reduce lead-times even further 
and will increase the number of contracts affected to approximately 
45,000, since FACNET users will be able to use the newly authorized 
simplified acquisition threshold of $100,000 rather than only $50,000 
where FACNET has not been certified. Use of electronic commerce/
electronic data interchange at a DOD test site reduced lead-time to 11 
days. Reducing the lead-time will allow the contracting community to be 
more responsive in spite of the already reduced personnel resources, 
focus its efforts on more complex procurements, reduce the cost of the 
procurement process for both Government and industry, and provide 
better service to the direct users of the acquisition system, and 
ultimately to the public.
    FASA called for its implementation in the FAR by October 1, 1995, 
or earlier. Due to the time required to fully consider, analyze, and 
document the analysis of public comments received in response to these 
proposed rules, it is unlikely that the rules could be published in the 
FAR, promulgated to procurement personnel and contractors, have 
procurement personnel and contractors trained, and have the new rules 
in use by the beginning of the last quarter of the fiscal year. It is 
essential that these rules be made effective by the beginning of the 
last quarter of the fiscal year because of personnel downsizing that 
has already occurred and that is expected before the end of the fiscal 
year. Additionally, the workload in the last quarter of the fiscal year 
is the most demanding of the fiscal year. Introduction of new 
procedures and processes in the middle of that quarter would be 
counterproductive to efficiency and would require operations to be 
suspended while retraining of the workforce is accomplished. Therefore, 
the regulations in FAC 90-29 must be effective no later than July 3, 
1995, to provide the Federal acquisition workforce the labor and cost 
saving benefits provided by the statute, or they must be delayed until 
the end of the fiscal year so as not to interfere with acquisition 
operations. Immediate implementation as an interim rule will permit 
time for training of the acquisition workforce, and FAR acquisition 
procedures to be fully 

[[Page 34744]]
operational before the final quarter of FY 1995.
    Pursuant to Public Law 98-577 and FAR 1.501, public comments 
received in response to these interim rules and the prior proposed 
rules will be considered in formulating the final rules.

List of Subjects in 48 CFR Parts 2, 3, 4, 5, 6, 8, 9, 13, 15, 16, 
19, 20, 22, 23, 25, 27, 28, 29, 32, 33, 36, 41, 42, 43, 44, 45, 46, 
47, 49, 52, and 53

    Government procurement.

    Dated: June 26, 1995.
Jeremy F. Olson,
Acting Deputy Project Manager for Implementation of the Federal 
Acquisition Streamlining Act of 1994.

    Therefore, 48 CFR Chapter 1 is amended as set forth below:
    1. The authority citation for 48 CFR parts 2, 3, 4, 5, 6, 8, 9, 13, 
15, 16, 19, 20, 23, 25, 27, 28, 29, 32, 33, 36, 41, 42, 43, 44, 45, 46, 
47, 49, 52, and 53 continues to read as follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. Chapter 137; and 42 
U.S.C. 2473(c).

PART 2--DEFINITIONS OF WORDS AND TERMS

    2. Section 2.201 is revised to read as follows:


2.201  Contract clause.

    The contracting officer shall insert the clause at 52.202-1, 
Definitions, in solicitations and contracts except when the contract is 
not expected to exceed the simplified acquisition threshold in part 13. 
If the contract is for personal services, construction, architect-
engineer services, or dismantling, demolition, or removal of 
improvements, the contracting officer shall use the clause with its 
Alternate I. Additional definitions may be included, provided they are 
consistent with the clause and the FAR.

PART 3--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF 
INTEREST


3.102-2  [Amended]

    2a. Section 3.102-2 is amended by revising the phrase ``in 
solicitations and contracts,'' to read ``in solicitations and contracts 
exceeding the simplified acquisition threshold,''.
    3. Section 3.103-1 is amended by revising paragraph (a) to read as 
follows:


3.103-1  Solicitation provision.

* * * * *
    (a) The acquisition is to be made under the simplified acquisition 
procedures in part 13;
* * * * *
    4. Section 3.104-10 is amended by revising paragraph (c) to read as 
follows:


3.104-10  Solicitation provision and contract clauses.

* * * * *
    (c) The contracting officer shall insert the clause at 52.203-10, 
Price or Fee Adjustment for Illegal for Improper Activity, in all 
solicitations where the resultant contract award is expected to exceed 
the simplified acquisition threshold (see part 13) and all contracts 
and modifications to contracts exceeding that threshold which do not 
already contain the clause when the modification is expected to exceed 
that threshold.
* * * * *
    5. Section 3.404 is amended by revising paragraphs (b)(1) and (c) 
to read as follows:


3.404  Solicitation provision and contract clause.

* * * * *
    (b) * * *
    (1) The contract amount is expected to be at or below the 
simplified acquisition threshold in part 13;
* * * * *
    (c) The contracting officer shall insert the clause at 52.203-5, 
Covenant Against Contingent Fees, in solicitations and contracts 
exceeding the simplified acquisition threshold in part 13.
    6. Section 3.502-3 is revised to read as follows:


3.502-3  Contract clause.

    The contracting officer shall insert the clause at 52.203-7, Anti-
Kickback Procedures, in solicitations and contracts exceeding the 
simplified acquisition threshold in part 13.
    7. Section 3.503-2 is revised to read as follows:


3.503-2  Contract clause.

    The contracting officer shall insert the clause at 52.203-6, 
Restrictions on Subcontractor Sales to the Government, in solicitations 
and contracts exceeding the simplified acquisition threshold in part 
13.

PART 4--ADMINISTRATIVE MATTERS


4.304  [Amended]

    8. Section 4.304 is amended by adding the phrase ``greater than the 
simplified acquisition threshold'' at the end of the sentence.
    9. Part 4 is amended by adding Subpart 4.5, consisting of sections 
4.500 through 4.507, to read as follows:

Subpart 4.5--Electronic Commerce in Contracting

Sec.
4.505  Scope of subpart.
4.501  Definitions.
4.502  Policy.
4.503  Contractor registration.
4.504  FACNET functions.
4.505  FACNET certification.
4.505-1  Interim certification.
4.505-2  Full certification.
4.505-3  Governmentwide certification.
4.505-4  Contract actions excluded.
4.506  Exemptions.
4.507  Contract actions using simplified acquisition procedures.


4.500  Scope of subpart.

    This subpart provides policy and procedures for the establishment 
and use of the Federal Acquisition Computer Network (FACNET) as 
required by Section 30 of the Office of Federal Procurement Policy 
(OFPP) Act (41 U.S.C. 426).


4.501  Definitions.

    ANSI X.12 means the designation assigned by the American National 
Standards Institute (ANSI) for the structure, format, and content of 
electronic business transactions conducted through Electronic Data 
Interchange (EDI). ANSI is the coordinator and clearinghouse for 
national standards in the United States.
    Electronic commerce (EC) means a paperless process including 
electronic mail, electronic bulletin boards, electronic funds transfer, 
electronic data interchange, and similar techniques for accomplishing 
business transactions. The use of terms commonly associated with paper 
transactions (e.g., ``copy'', ``document'', ``page'', ``printed'', 
``sealed envelope'' and ``stamped'') shall not be interpreted to 
restrict the use of electronic commerce.
    Electronic data interchange (EDI) means a technique for 
electronically transferring and string formatted information between 
computers utilizing established and published formats and codes, as 
authorized by the applicable Federal Information Processing Standards.
    Federal Acquisition Computer Network (FACNET) means the 
Governmentwide Electronic Commerce/Electronic Data Interchange (EC/EDI) 
systems architecture for the acquisition of supplies and services that 
provides for electronic data interchange of acquisition information 
between the Government and the private sector, employs nationally and 
internationally recognized data formats, and provides universal user 
access.
    Full FACNET means an agency has certified that it has implemented 
all of 

[[Page 34745]]
the FACNET functions outlined in 4.504, and more than 75 percent of 
eligible contracts (not otherwise exempted from FACNET) in amounts 
exceeding the micro-purchase threshold, but not exceeding the 
simplified acquisition threshold (see Part 13), were entered into by 
the agency during the preceding fiscal year using FACNET.
    Governmentwide FACNET means that the Federal Government has 
certified its FACNET capability, and more than 75 percent of eligible 
contracts (not otherwise exempted from FACNET) in amounts exceeding the 
micro-purchase threshold, but not exceeding the simplified acquisition 
threshold (see part 13), entered into by the executive agencies during 
the preceding fiscal year were made through full FACNET.
    Interim FACNET means a contracting office has been certified as 
having implemented a capability to provide widespread public notice of, 
issue solicitations, and receive responses to solicitations and 
associated requests for information through FACNET. Such capability 
must allow the private sector to access notices of solicitations, 
access and review solicitations, and respond to solicitations.
    Transaction Set means the data that is exchanged to convey meaning 
between Trading Partners engaged in EC/EDI.
    Value-Added Network (VAN) means an entity that provides 
communications services, electronic mailboxing and other communications 
services for EDI transmissions.
    Value-Added Service (VAS) means an entity that provides services 
beyond communications to its customers. These services may range from 
translation and segregation of the data to complete turn-key business 
system support for customers.


4.502  Policy.

    (a) The Federal Government shall use FACNET whenever practicable or 
cost effective.
    (b) FACNET is the preferred method of soliciting and receiving 
quotes and providing notice of Government purchase requirements 
exceeding the micro-purchase threshold and not exceeding the simplified 
acquisition threshold (see 13.103 (b)).
    (c) Contracting officers may use FACNET for any contract action 
governed by the FAR, unless specifically exempted (see 4.506 and 
13.106-1(a)(2)).
    (d) Before using FACNET, or any other method of electronic data 
interchange, The agency head shall ensure that the electronic data 
interchange system is capable of ensuring authentication and 
confidentiality commensurate with the risk and magnitude of the harm 
from loss, misuse, or unauthorized access to or modification of the 
information.


4.503  Contractor registration.

    (a) In order for a contractor to conduct electronic commerce with 
the Federal Government, the contractor must provide registration 
information to the Central Contractor Registration.
    (b) The contractor will be required to submit information in 
accordance with the Federal implementation conventions of the ASC ANSI 
X.12 transaction set for contractor registration.


4.504  FACNET functions.

    (a) FACNET will permit agencies to do the following 
electronically--
    (1) Provide widespread public notice of contracting opportunities, 
and issue solicitations;
    (2) Receive responses to solicitations and associated requests for 
information;
    (3) Provide widespread public notice of contract awards and 
issuance of orders (including price);
    (4) Receive questions regarding solicitations, if practicable;
    (5) Issue contracts and orders, if practicable;
    (6) Initiate payments to contractors, if practicable; and
    (7) Archive data relating to each procurement action.
    (b) FACNET will permit the private sector to do the following 
electronically--
    (1) Access notices of solicitation;
    (2) Access and review solicitations;
    (3) Respond to solicitations;
    (4) Receive contracts and orders, if practicable;
    (5) Access information on contract awards and issuance of orders; 
and
    (6) Receive payment by purchase card, electronic funds transfer, or 
other automated means, if practicable.


4.505  FACNET certification.


4.505-1  Interim certification.

    (a) A contracting office is considered to have implemented interim 
FACNET if--
    (1) The contracting office--
    (i) Has implemented the FACNET functions described in 4.504(a)(1) 
and (2), and (b)(1), (2), and (3); and
    (ii) Issues notices of solicitations and receives responses to 
solicitations in a system having those functions;
    (2) The contracting office can use FACNET for contracts, not 
otherwise exempted (see 4.506), that exceed the micro-purchase 
threshold but do not exceed the simplified acquisition threshold; and
    (3) the senior procurement executive of the agency, or the Under 
Secretary of Defense for Acquisition and Technology for the military 
departments and defense agencies, has certified to the Administrator of 
OFPP that the contracting office has implemented interim FACNET.
    (b) The senior procurement executive of the agency, or the Under 
Secretary of Defense for Acquisition and Technology for the military 
departments and defense agencies, shall notify the private sector via 
the Commerce Business Daily that a contracting office of the agency has 
certified interim FACNET. The notice shall establish a date after which 
it will be required that all responses to solicitations issued by the 
contracting office through FACNET, must be submitted through FACNET, 
unless otherwise authorized.


4.505-2  Full certification.

    (a) An agency is considered to have implemented full FACNET if--
    (1) The agency has implemented all of the FACNET functions 
described in 4.504;
    (2) During the entire preceding fiscal year, more than 75 percent 
of the agency's eligible contracts, not otherwise exempted (see 4.506), 
that exceeded the micro-purchase threshold but did not exceed the 
simplified acquisition threshold, were entered into vai FACNET; and.
    (3) The head of the agency, with the concurrence of the 
Administrator of OFPP, has certified to the Congress that the agency 
has implemented full FACNET. For the Department of Defense, the 
certification shall be made by the Secretary of Defense for the 
Department as a whole.
    (b) Eligible contracts do not include any class or classes of 
contracts that the Federal Acquisition Regulatory Council determines, 
after October 13, 1997, are not suitable for acquisition through 
FACNET.


4.505-3  Governmentwide certification.

    The Federal Government is considered to have implemented 
Governmentwide FACNET if--
    (a) During the preceding fiscal year, at least 75 percent of 
eligible contracts entered into by executive agencies, that exceeded 
the micro-purchase threshold but did not exceed the simplified 
acquisition threshold, were made via full FACNET; and
    (b) the Administrator of OFPP has certified implementation of 
Governmentwide FACNET to the Congress.

[[Page 34746]]



4.505-4  Contract actions excluded.

    For purposes of calculating the percentage of FACNET use referred 
to in 4.505-2 and 4.505-3, actions issued against established 
contracts, such as delivery orders, task orders, and in-scope 
modifications, shall not be included.


4.506  Exemptions.

    The following are exempted from the use of FACNET as specified and 
shall not be considered when determining compliance with the 
requirements to implement FACNET:
    (a) Interim FACNET. (1) Classes of procurements exempted by the 
head of the contracting activity after a written determination is made 
that FACNET processing of those procurements is not cost-effective or 
practicable; and specific purchases for which the contracting officer 
determines that it is not practicable or cost-effective to process via 
FACNET. Such determinations shall be centrally maintained at the 
contracting office.
    (2) Contracts that do not require notice under subpart 5.2.
    (b) Full FACNET. Contracts awarded by a contracting office (or a 
portion of a contracting office), if the office is exempted from use of 
FACNET by the head of the agency, or the Secretary of Defense for the 
military departments and defense agencies. Any such exemption shall be 
based on a written determination that FACNET processing is not cost-
effective or practicable for the contracting office, or portions 
thereof. Determinations shall be maintained in the office of the senior 
procurement executive, or the Under Secretary of Defense for 
Acquisition and Technology for the military departments and defense 
agencies.


4.507  Contract actions using simplified acquisition procedures.

    Contracting officers shall refer to section 12.106 for evaluation 
and documentation requirements when awarding contracts using simplified 
acquisition procedures.
    10. Section 4.800 is revised to read as follows:


4.800  Scope of subpart.

    This subpart prescribes requirements for establishing, maintaining, 
an disposing of contract files for all contractual actions. The 
application of this subpart to contracts awarded using the simplified 
acquisition procedures covered by part 13 is optional. (See also 
documentation requirements in 12.106-2.)
    11. Section 4.804-1 is amended by revising paragraphs (a)(1) and 
(a)(2) to read as follows:


4.804-1  Closeout by the office administering the contract.

    (a) * * *
    (1) Files for contracts using simplified acquisition procedures 
should be considered closed when the contracting officer receives 
evidence of receipt of property and final payment, unless otherwise 
specified by agency regulations.
    (2) Files for firm-fixed-price contracts, other than those using 
simplified acquisition procedures, should be closed within 6 months 
after the date on which the contracting officer receives evidence of 
physical completion.
* * * * *
    12. Section 4.804-2 is amended by revising paragraph (a) to read as 
follows:


4.804-2  Closeout of the contracting office files if another office 
administers the contract.

    (a) Contract files for contracts using simplified acquisition 
procedures should be considered closed when the contracting officer 
receives evidence of receipt of property and final payment, unless 
otherwise specified by agency regulation.
* * * * *
    13. Section 4.805 is amended in the table in paragraph (b) by 
revising the entries in the ``Document'' column of paragraphs (b) (5), 
(10), (11), and the introductory text of (b)(13) to read as follows:


4.805  Storage, handling and disposal of contract files.

* * * * *
    (b) * * *

------------------------------------------------------------------------
                       Document                         Retention Period
------------------------------------------------------------------------
                                                                        
                  *        *        *        *        *                 
(5) Unsuccessful offers or quotations that pertain to                   
 contracts using simplified acquisition procedures....     *  *  *  *  *
                                                                        
                  *        *        *        *        *                 
(10) Records or documents other than those in                           
 paragraphs 4.805(b) (1)-(9) of this section                            
 pertaining to contracts using simplified acquisition                   
 procedures...........................................     *  *  *  *  *
                                                                        
                  *        *        *        *        *                 
(11) Records or documents other than those in                           
 paragraphs 4.805(b) (1)-(10) of this section                           
 pertaining to contracts not using simplified                           
 acquisition procedures...............................     *  *  *  *  *
                                                                        
                  *        *        *        *        *                 
(13) Solicited and unsolicited unsuccessful offers and                  
 quotations above the simplified acquisition threshold                  
 in part 13:..........................................     *  *  *  *  *
                                                                        
                  *        *        *        *        *                 
------------------------------------------------------------------------

PART 5--PUBLICIZING CONTRACT ACTIONS

    14. Section 5.101 is amended by revising paragraphs (a)(1), (a)(2) 
introductory text, and (a)(2)(ii) to read as follows:


5.101  Methods of disseminating information.

* * * * *
    (a) * * *
    (1) For proposed contract actions expected to exceed $25,000, by 
synopsizing in the Commerce Business Daily (CBD) (see 5.201); and
    (2) For proposed contract actions expected to exceed $10,000 
($5,000 for Defense activities), but not expected to exceed $25,000, by 
displaying in a public place at the contracting office issuing the 
solicitation, an unclassified notice of the solicitation or a copy of 
the solicitation satisfying the requirements of 5.207 (c) and (f). The 
notice shall include a statement that all responsible sources may 
submit a quotation which, if timely received, shall be considered by 
the agency. Such information shall be posted not later than the date 
the solicitation is issued, and shall remain posted for at least 10 
days or until after quotations have been opened, whichever is later.
* * * * *
    (ii) The contracting officer need not comply with the display 
requirements of this section when the exemptions at 5.202(a)(1), (5) 
through (9), or (11) apply, or when oral or FACNET solicitations are 
used. The exemption from display requirements does not relieve the 
contracting officer from the responsibility to consider all quotations 
timely received from responsible sources.
* * * * *
    15. Section 5.202 is amended by removing ``or'' at the end of 
(a)(11) and the period at the end of (a)(12) and inserting a semicolon 
in its place; and adding paragraphs (a)(13) and (a)(14) to read as 
follows:


5.202  Exceptions.

* * * * *
    (a) * * *
    (13) The contract action is for an amount expected to exceed 
$25,000 but 

[[Page 34747]]
not expected to exceed the simplified acquisition threshold and is made 
by a contracting activity that has been certified as having implemented 
a system with interim (until December 31, 1999) or full (after December 
31, 1999) FACNET and the contract action will be made through FACNET; 
or
    (14) The contract action is for an amount at or below $250,000 and 
is made through certified FACNET after Governmentwide FACNET has been 
certified. This exception does not apply when the contract action is 
not made through certified FACNET (see subpart 4.5).
* * * * *
    16. Section 5.203 is amended by redesignating paragraphs (b) 
through (f) as (c) through (g), adding a new paragraph (b) and revising 
newly designated (c), (d), and (e) to read as follows:


5.203  Publicizing and response time.

* * * * *
    (b) The contracting officer shall establish a solicitation response 
time which will afford potential offerors a reasonable opportunity to 
respond for each contract action, including actions via FACNET, in an 
amount estimated to be greater than $25,000, but not greater than the 
simplified acquisition threshold. The contracting officer should 
consider the circumstances of the individual procurement, such as the 
complexity, commerciality, availability, and urgency, when establishing 
the solicitation response time.
    (c) Agencies shall allow at least a 30 day response time for 
receipt of bids or proposals from the date of issuance of a 
solicitation if the contract action is expected to exceed the 
simplified acquisition threshold.
    (d) Agencies shall allow at least a 30 day response time from the 
date of publication of a proper notice of intent to contract for 
architect-engineer services or before issuance of an order under a 
basic ordering agreement or similar arrangement if the contract action 
is expected to exceed the simplified acquisition threshold.
    (e) Agencies shall allow at least a 45 day response time for 
receipt of bids or proposals from the date of publication of the notice 
required in 5.201 for contract actions categorized as research and 
development if the contract action is expected to exceed the simplified 
acquisition threshold.
* * * * *
    17. Section 5.205 is amended by revising paragraph (d)(1) to read 
as follows:


5.205  Special situations.

* * * * *
    (d) * * *
    (1) Except when exempted by 5.202, contracting officers shall 
synopsize each proposed contract action for which the total fee 
(including phases and options) is expected to exceed $25,000. Reference 
shall be made to the appropriate CBD Numbered Note.
* * * * *
    18. Section 5.207 is amended by redesignating paragraphs (c)(2)(xi) 
through (c)(2)(xv) as (c)(2)(xii) through (c)(2)(xvi), adding new 
paragraph (c)(2)(xi), and revising newly redesignated (c)(2)(xiv) to 
read as follows:


5.207  Preparation and transmittal of synopses.

* * * * *
    (c) * * *
    (2) * * *
    (xi) For a contract action in an amount estimated to be greater 
than $25,000 but not greater than the simplified acquisition threshold, 
enter (A) a description of the procedures to be used in awarding the 
contract (e.g., request for oral or written quotation or solicitation), 
and (B) the anticipated award date.
* * * * *
    (xiv) In the case of noncompetitive contract actions, insert a 
statement of the reason justifying other than full and open 
competition, and identify the intended source(s) (see 5.207(e)(3)).
* * * * *
    19. Section 5.301 is amended by removing ``or'' after (b)(5); 
removing the period at the end of (b)(6) and inserting ``; or'' in its 
place; and adding a new (b)(7) to read as follows:


5.301  General.

* * * * *
    (b) * * *
    (7) The contract action is for an amount greater than $25,000 but 
not greater than the simplified acquisition threshold, the contract 
action is made by a contracting office that has been certified as 
having implemented a system with interim (until December 31, 1999) or 
full (after December 31, 1999) FACNET, and the contract action has been 
made through FACNET.
* * * * *
    20. Section 5.303 is amended by revising the introductory text of 
paragraph (b) to read as follows:


5.303  Announcement of contract awards.

* * * * *
    (b) Local announcement. Agencies may also release information on 
contract awards to the local press or other media. When local 
announcements are made for contract awards in excess of the simplified 
acquisition threshold in part 13, they shall include--
* * * * *
    21. Section 5.503 is amended by revising paragraph (c)(1) to read 
as follows:


5.503  Procedures.

* * * * *
    (c) Forms. (1) When contracting directly with the media for 
advertising, contracting officers--
    (i) Shall use Standard Form 26, Award/Contract, or Standard Form 
1447, Solicitation/Contract, when the dollar amount of the acquisition 
exceeds the simplified acquisition threshold; or
    (ii) May use Optional Form 347, Order for Supplies or Services, or 
an approved agency form, when the dollar amount of the acquisition does 
not exceed the threshold for use of simplified acquisition procedures 
(see part 13).
* * * * *

PART 6--COMPETITION REQUIREMENTS

    22. Section 6.001 is amended by revising paragraph (a) to read as 
follows:


6.001  Applicability.

* * * * *
    (a) Contracts awarded using the simplified acquisition procedures 
of part 13;
* * * * *

PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES

    23. Section 8.203-1 is amended by revising paragraph (a)(1) to read 
as follows:


8.203-1  Contract clause and solicitation provision.

    (a) * * *
    (1) Contract actions not exceeding the simplified acquisition 
threshold in part 13;
* * * * *
    24. Section 8.404 is amended by revising the last sentence of 
paragraph (a) to read as follows:


8.404  Using schedules.

    (a) * * * When placing orders under a Federal Supply Schedule, 
ordering activities need not seek further competition, synopsize the 
requirement, make a separate determination of fair and reasonable 
pricing, or consider small business set-asides in accordance with 
subpart 19.5.
* * * * *

[[Page 34748]]


PART 9--CONTRACTOR QUALIFICATIONS

    25. Section 9.405-2 is amended by revising the second sentence of 
paragraph (b) introductory text to read as follows:


9.405-2  Restrictions on subcontracting.

* * * * *
    (b) * * * Contractors shall not enter into any subcontract in 
excess of $25,000 with a contractor that has been debarred, suspended, 
or proposed for debarment unless there is a compelling reason to do so. 
* * *
* * * * *
    26. Section 9.409 is revised to read as follows:


9.409  Solicitation provision and contract clause.

    (a) The contracting officer shall insert the provision at 52.209-5, 
Certification Regarding Debarment, Suspension, Proposed Debarment, and 
Other Responsibility Matters, in solicitations where the contract value 
is expected to exceed the simplified acquisition threshold.
    (b) The contracting officer shall insert the clause at 52.209-6, 
Protecting the Government's Interests when Subcontracting with 
Contractors Debarred, Suspended, or Proposed for Debarment, in 
solicitations and contracts where the contract value exceeds $25,000.
    27. Section 9.507-1 is amended by revising paragraph (c) to read as 
follows:


9.507-1  Solicitation provisions.

* * * * *
    (c) The contracting officer shall insert the provision at 52.209-8, 
Organizational Conflicts of Interest Certificate--Advisory and 
Assistance Services, in solicitations for advisory and assistance 
services if the contract is expected to exceed the simplified 
acquisition threshold.
* * * * *

PART 13--SIMPLIFIED ACQUISITION PROCEDURES

    27a. The heading of part 13 is revised to read as set forth above.
    28. Section 13.000 is revised to read as follows:
13.000  Scope of part.

    This part prescribes policies and procedures for the acquisition of 
supplies and services, including construction and research and 
development, the aggregate amount of which does not exceed the 
simplified acquisition threshold (see 13.103(b)). See 36.602-5 for 
simplified procedures to be used when acquiring architect-engineering 
services.
    29. Section 13.101 is amended by revising the definitions of 
``delivery order'' and ``purchase order''; removing the definitions of 
``small purchase'', and ``small purchase procedures''; and adding, in 
alphabetical order, definitions for ``imprest fund'', ``simplified 
acquisition procedures'', and ``simplified acquisition threshold''.


13.101  Definitions.

* * * * *
    Delivery order means an order for supplies or services placed 
against an established contract or with Government sources of supply.
* * * * *
    Imprest fund means a cash fund of a fixed amount established by an 
advance of funds, without charge to an appropriation, from an agency 
finance or disbursing officer to a duly appointed cashier, for 
disbursement as needed from time to time in making payment in cash for 
relatively small amounts.
* * * * *
    Purchase order means an offer by the Government to buy supplies or 
services, including construction and research and development, upon 
specified terms and conditions, using simplified acquisition 
procedures.
    Simplified acquisition procedures means the methods prescribed in 
this part for making purchases of supplies or services using imprest 
funds, purchase orders, blanket purchase agreements, Governmentwide 
commercial purchase cards, or any other appropriate authorized method.
    Simplified acquisition threshold means $100,000 (but see 
13.103(b)). In the case of any contract to be awarded and performed, or 
purchase to be made, outside the United States in support of a 
contingency operation, the term means $200,000.
    30. Section 13.102 is revised to read as follows:


13.102  Purpose.

    The purpose of this part is to prescribe simplified acquisition 
procedures in order to--
    (a) Reduce administrative costs;
    (b) Improve opportunities for small business and small 
disadvantaged business concerns to obtain a fair proportion of 
Government contracts;
    (c) Promote efficiency and economy in contracting; and,
    (d) Avoid unnecessary burdens for agencies and contractors.
    31. Section 13.103 is revised to read as follows:


13.103  Policy.

    (a) Simplified acquisition procedures shall be used to the maximum 
extent practicable for all purchases of supplies or services not 
exceeding the simplified acquisition threshold unless requirements can 
be met by using required sources of supply under part 8 (e.g., Federal 
Prison Industries, Committee for Purchase from People who are Blind or 
Severely Disabled, and Federal Supply Schedule contracts) or orders 
under Federal Information Processing multiple award schedule contracts.
    (b) Simplified acquisition procedures may not be used for contract 
actions exceeding $50,000, and not exceeding the simplified acquisition 
threshold, unless the contracting office making the purchase has been 
certified as having interim FACNET in accordance with 4.505-1. The 
contracting office shall not use simplified acquisition procedures for 
contract actions exceeding $50,000 after December 31, 1999, unless the 
office's cognizant agency has certified full FACNET capability in 
accordance with 4.505-2.
    (c) Simplified acquisition procedures shall not be used in the 
acquisition of supplies and services initially estimated to exceed the 
simplified acquisition threshold even though resulting awards do not 
exceed that threshold. Requirements aggregating more than the 
simplified acquisition threshold shall not be broken down into several 
purchases that are less than the threshold merely to permit use of 
simplified acquisition procedures.
    (d) Simplified acquisition procedures may be used to acquire 
personal services if the agency has specific statutory authority to 
acquire personal services (see 37.104).
    (e) FACNET is the preferred means for acquiring supplies and 
services, including construction and research and development, in 
amounts exceeding the micro-purchase threshold but not exceeding the 
simplified acquisition threshold.
    (f) Contracting officers shall establish deadlines for the 
submission of responses to solicitations which afford contractors a 
reasonable opportunity to respond.
    (g) Contracting officers are encouraged to use innovative 
approaches in awarding contracts using the simplified acquisition 
procedures under the authority of this part. For example, the 
procedures of other FAR parts may, as appropriate, be adapted for use 
in awarding contracts under this part. Other FAR parts that may be 
adapted include, but are not limited to--
    (1) Part 14, Sealed Bidding;

[[Page 34749]]

    (2) Part 15, Contracting by Negotiation;
    (3) Part 11, Acquisition and Distribution of Commercial Products; 
and
    (4) Part 36, Construction and Architect-Engineer Contracts, 
including the use of Standard Form 1442, Solicitation, Offer and Award 
(Construction, Alteration, or Repair), for construction contracts (see 
36.701(b)).
    32. Section 13.104 is revised to read as follows:


13.104  Procedures.

    (a) Contracting officers shall make awards under this part in the 
simplified manner that is most suitable, efficient, and economical in 
the circumstances of each acquisition. Contracting officers may use the 
procedures in this part in acquisitions from Government supply sources 
(see part 8), if their use is authorized by the basic contract or 
concurred in by the source.
    (b) Related items (such as small hardware items or spare parts for 
vehicles) may be included in one solicitation and the award made on an 
``all-or-none'' basis if suppliers are so advised when quotations are 
requested.
    (c) Agencies shall use bulk funding to the maximum extent 
practicable to reduce processing time, handling, and documentation. 
Bulk funding is particularly appropriate if numerous purchases using 
the same type of funds are to be made during a given period.
    (d) Agencies shall inspect items or services acquired under 
simplified acquisition procedures as prescribed in 46.404.
    (e) Agencies shall use United States-owned foreign currency, if 
appropriate, in making payments when using simplified acquisition 
procedures (see subpart 25.3).
    (f) For proposed purchases covered by this part, see 5.101 for 
public display and synopsis requirements.
    (g) When a quotation, oral or written, is to be rejected because a 
small business firm is determined to be nonresponsible (see subpart 
9.1), see subpart 19.6 with respect to certificates of competency.
    33. Section 13.105 is revised to read as follows:


13.105  Small business set-asides.

    (a) Except as provided in paragraphs (b) and (c) of this section, 
each acquisition (non-FACNET and FACNET) of supplies or services that 
has an anticipated dollar value exceeding $2,500 and not exceeding 
$100,000, is reserved exclusively for small business concerns and shall 
be set aside (see subpart 19.5).
    (b) The requirements of this section apply only to purchases in the 
United States, its territories and possessions, Puerto Rico, and the 
Trust Territory of the Pacific Islands (see 19.000). Foreign concerns 
shall not be solicited for acquisitions set aside for small business 
concerns.
    (c)(1) Each written solicitation under a set-aside shall contain 
the appropriate provisions or clauses prescribed by Part 19. If the 
solicitation is oral, however, information substantially identical to 
that which is in the provision or clause shall be given to potential 
quoters.
    (2) If the contracting officer determines there is no reasonable 
expectation of obtaining quotations from two or more responsible small 
business concerns that will be competitive in terms of market price, 
quality, and delivery, the contracting officer need not proceed with 
the small business set-aside and may purchase on an unrestricted basis. 
If the SBA procurement center representative disagrees with a 
contracting officer's decision not to proceed with the small business 
set-aside, the SBA procurement center representative may appeal the 
decision in accordance with the procedures set forth in 19.505.
    (3) If the contracting officer proceeds with the set-aside and 
receives a quotation from only one responsible small business concern 
at a reasonable price (see 13.106-2(a)), the contracting officer shall 
make an award to that concern. However, if the contracting officer does 
not receive a reasonable quotation from a responsible small business 
concern, the contracting officer may cancel the set-aside and complete 
the purchase on an unrestricted basis.
    (4) If the purchase is on an unrestricted basis under 13.105(c)(2), 
the contracting officer shall document in the file the reasons for the 
unrestricted purchase.
    (5) See part 19 for policy concerning--
    (i) Contracting with the Small Business Administration under the 
8(a) Program (subpart 19.8);
    (ii) Emerging small business set-aside (19.1006(c)); and
    (iii) The Small Business Competitiveness Demonstration Program 
(subpart 19.10).
    34. Section 13.106 text is removed and the heading is revised to 
read as follows:


13.106  Purchases exceeding the micro-purchase threshold.

    35. Section 13.106-1 is added to read as follows:


13.106-1  Soliciting competition, evaluation of quotas, and award.

    (a) Soliciting competition. (1) Contracting officers shall solicit 
a reasonable number of sources to promote competition to the maximum 
extent practicable, and to ensure that the purchase is advantageous to 
the Government, based, as appropriate, on either price alone or price 
and other factors (e.g., past performance and quality) including the 
administrative cost of the purchase. Requests for quotations or 
solicitations shall notify suppliers of the basis upon which award is 
to be made.
    (2) FACNET is the preferred method of soliciting simplified 
acquisitions. However, if FACNET is not available, or if the 
contracting officer has made a determination that it is not practicable 
or cost-effective to process a specific purchase via FACNET, or if the 
head of the contracting activity has made a determination that it is 
not practicable or cost-effective to process a class of purchases via 
FACNET (see 4.506), quotations may be solicited through other 
appropriate means. Requests for quotations should be solicited orally 
to the maximum extent practicable for contract actions not expected to 
exceed $25,000, when FACNET is not available or a determination has 
been made that it is not practicable or cost-effective to purchase via 
FACNET. Oral solicitations may not be practicable for most contract 
actions exceeding $25,000 because of the synopsis requirement in 5.101. 
A synopsis may incorporate enough information for the contracting 
officer to receive oral quotes. The contracting officer is not required 
to issue a separate written solicitation. Paper solicitations for 
contract actions not expected to exceed $25,000 should only be issued 
when obtaining electronic or oral quotations is not considered 
economical or practical. Solicitations for construction contracts over 
$2,000 shall only be issued electronically or by paper solicitation.
    (3) When not soliciting quotations electronically, maximum 
practicable competition ordinarily can be obtained without soliciting 
quotations or offers from sources outside the local trade area. 
Generally, solicitation of at least three sources may be considered to 
promote competition to the maximum extent practicable if the contract 
action does not exceed $25,000. If practicable, two sources not 
included in the previous solicitation should be requested to furnish 
quotations. The following factors influence the number of quotations 
required in connection with any particular purchase:

[[Page 34750]]

    (i) The nature of the article or service to be purchased and 
whether it is highly competitive and readily available in several makes 
or brands, or is relatively noncompetitive.
    (ii) Information obtained in making recent purchases of the same or 
similar item.
    (iii) The urgency of the proposed purchase.
    (iv) The dollar value of the proposed purchase.
    (v) Past experience concerning specific dealers' prices.
    (4) Contracting officers may solicit from one source if the 
contracting officer determines that the circumstances of the contract 
action deem only one source reasonably available (e.g., urgency).
    (5) Contracting officers shall not limit solicitations to suppliers 
of well known and widely distributed makes or brands, or solicit 
quotations on a personal preference basis. If it is necessary to 
maintain a list of sources, new supply sources disclosed through trade 
journals or other media shall be continuously reviewed and, if 
appropriate, added to the list.
    (6) In accordance with 14.408-3, contracting officers shall make 
every effort to obtain trade and prompt payment discounts. However, 
prompt payment discounts shall not be considered in the evaluation of 
quotations.
    (7)(i) Unless exempted from this requirement by the head of the 
contracting activity, or unless purchases are made through FACNET, each 
contracting office should maintain a source list (or lists, if more 
convenient) and should record on the list the status of each source 
(when the status is made known to the contracting office) in the 
following categories:
    (A) Small business.
    (B) Small disadvantaged business.
    (C) Women-owned small business.
    (ii) The status information should be used to ensure that small 
business concerns are given opportunities to respond to solicitations 
issued using simplified acquisition procedures.
    (b) Evaluation of quotes or offers. (1) Contracting officers may 
evaluate quotations or offers based on price alone or price and other 
factors (e.g., past performance, or quality). Formal evaluation plans, 
conduct of discussions, and scoring of quotes or offers are not 
required. Evaluation of other factors does not require the creation or 
existence of a formal data base, but may be based on such information 
as the contracting officer's knowledge, previous experience, or 
customer surveys.
    (2) Standing price quotations may be used in lieu of obtaining 
individual quotations each time a purchase is contemplated. In such 
cases, the buyer shall ensure that the price information is current and 
that the Government obtains the benefit of maximum discounts before 
award is made.
    (3) Contracting officers shall evaluate quotations inclusive of 
transportation charges from the shipping point of the supplier to the 
delivery destination.
    (4) Contracting officers shall comply with the policy in 7.202 
relating to economic purchase quantities, when practicable.
    (c) Award. (1) Occassionally an item can be obtained only from a 
supplier who quotes a minimum order price or quantity that either 
unreasonably exceeds stated quantity requirements or results in an 
unreasonable price for the quantities required. In these instances, the 
contracting officer should inform the requiring activity of all facts 
regarding the quotation and ask it to confirm or alter its requirement. 
The file shall be documented to support the final action taken.
    (2) Notification to unsuccessful suppliers shall be given only if 
requested. When a supplier requests information on an award which was 
based on factors other than price alone, the notification shall include 
a brief explanation of the basis for the contract award decision. (See 
15.1001(c)(3).)
    36. Section 13.106-2 is added to read as follows:


13.106-2  Data to support purchases.

    (a) The determination that a proposed price is reasonable should be 
based on competitive quotations. If only one response is received, or 
the price variance between multiple responses reflects lack of adequate 
competition, a statement shall be included in the contract file giving 
the basis of the determination of fair and reasonable price. The 
determination may be based on a comparison of the proposed price with 
prices found reasonable on previous purchases, current price lists, 
catalogs, advertisements, similar items in a related industry, value 
analysis, the contracting officer's personal knowledge of the item 
being purchased or any other reasonable basis.
    (b) When other than price related factors are considered in 
selecting the supplier (see 13.106-1(b)(1)), the contracting officer 
shall document the file to support the final contract award decision.
    (c) If only one source is solicited, an additional notation shall 
be made to explain the absence of competition, except for acquisition 
of utility services available only from one source or of educational 
services from nonprofit institutions.
    (d) Simplified documentation practices should be used. The 
following illustrate the extent to which quotation information should 
be recorded.
    (1) Oral solicitations. The contracting office should establish and 
maintain informal records of oral price quotations in order to reflect 
clearly the propriety of placing the order at the price paid with the 
supplier concerned. In most cases this will consist merely of showing 
the names of the suppliers contacted and the prices and other terms and 
conditions quoted by each.
    (2) Written solicitations (see 2.101). Written records of 
solicitations may be limited to notes or abstracts to show prices, 
delivery, references to printed price lists used, the supplier or 
suppliers contacted, and other pertinent data.
    (e) Purchasing offices shall retain data supporting purchases using 
simplified acquisition procedures to the minimum extent and duration 
necessary for management review purposes (see Subpart 4.8).
    37. Section 13.107 is revised to read as follows:


13.107  Solicitation forms.

    (a) Except when quotations are solicited via FACNET or orally, 
Standard Form 18, Request for Quotations (53.301-18), is available, but 
not required, for use by all agencies.
    (b) Optional Form 336, Continuation Sheet, may be used with 
Standard Form 18 when additional space is needed.
    (c) If Standard Form 18 is not used for written solicitations, 
contracting officers may request quotations using an agency-designed 
form, an agency-approved automated format, or electronically.
    (d) Each agency-designed request for quotations form shall conform 
with Standard Form 18, to the maximum extent practicable.
    (e) When using an unsigned electronic purchase order (see 13.506) 
for transmission of a request for quotations, the provisions and 
clauses applicable to the solicitation shall be incorporated by 
reference.
    38. Section 13.108 is revised to read as follows:


13.108  Legal effect of quotations.

    (a) A quotation is not an offer and, consequently, cannot be 
accepted by the Government to form a binding contract (see 15.402(e)). 
Therefore, issuance by the Government of an order for supplies or 
services in response to a supplier's quotation does not establish a 
contract. The order is an offer by the Government 

[[Page 34751]]
to the supplier to buy certain supplies or services upon specified 
terms and conditions. A contract is established when the supplier 
accepts the offer or begins performance.
    (b) When appropriate, the contracting officer may ask the supplier 
to indicate acceptance of an order by notification to the Government, 
preferably in writing. In other circumstances, the supplier may 
indicate acceptance by furnishing the supplies or services ordered or 
by proceeding with the work to the point where substantial performance 
has occurred.
    (c) If the Government issues an order resulting from a quotation, 
the Government may (by written notice to the supplier, at any time 
before acceptance occurs) withdraw, amend, or cancel its offer. (See 
13.504 for procedures on termination or cancellation of purchase 
orders.)
    38. Section 13.109 is revised to read as follows:


13.109  Agency use of indefinite delivery contracts.

    Cost and processing time for acquisitions at or below the 
simplified acquisition threshold may be reduced through the use of 
indefinite delivery contracts (see subpart 16.5) that permit delivery 
orders to be placed by several contracting or ordering offices in one 
or more executive agencies. Therefore, contracting offices are 
encouraged to seek opportunities to cooperate with each other to 
achieve efficiency and economy through the use of indefinite delivery 
contracts.
    40. Section 13.110 is added to read as follows:
13.110  Federal Acquisition Streamlining Act of 1994 (FASA) list of 
inapplicable laws.

    (a) The following laws are inapplicable to all contracts and 
subcontracts (if otherwise applicable to subcontracts) at or below the 
simplified acquisition threshold:
    (1) 41 U.S.C. 57 (a) and (b) (Anti-Kickback Act of 1986). (Only the 
requirement for the incorporation of the contractor procedures for the 
prevention and detection of violations, and the contractual requirement 
for contractor cooperation in investigations are inapplicable.)
    (2) 40 U.S.C. 27 (Miller Act).
    (3) 40 U.S.C. 329 (Contract Work Hours and Safety Standards Act--
Overtime Compensation).
    (4) 41 U.S.C. 701(a)(1) (Section 5152 of the Drug Free Workplace 
Act of 1988), except for individuals.
    (5) 42 U.S.C. 6962 (Solid Waste Disposal Act) (Only the requirement 
for providing the estimate of recovered material utilized in the 
performance of the contract is inapplicable).
    (6) 10 U.S.C. 2306(b) and 41 U.S.C. 254(a) (Contract Clause 
Regarding Contingent Fees).
    (7) 10 U.S.C. 2313 and 41 U.S.C. 254(c) (Authority to Examine Books 
and Records of Contractors).
    (8) 10 U.S.C. 2384(b) (Requirement to Identify Suppliers and 
Sources of Supply).
    (9) 10 U.S.C. 2393(d) (Prohibition Against Doing Business with 
Certain Offerors or Contractors).
    (10) 10 U.S.C. 2402 and 41 U.S.C. 253g (Prohibition on Limiting 
Subcontractor Direct Sales to the United States).
    (11) 10 U.S.C. 2408(a) (Prohibition on Persons Convicted of Defense 
Related Felonies).
    (12) 10 U.S.C. 2410b (Contractor Inventory Accounting System 
Standards).
    (13) 10 U.S.C. 2534 (Miscellaneous Procurement Limitations).
    (b) The Federal Acquisition Regulatory Council will include any law 
enacted after October 13, 1994, that sets forth policies, procedures, 
requirements, or restrictions for the procurement of property or 
services, on the list set forth in 13.110(a), unless the FAR Council 
makes a written determination that it is in the best interests of the 
Government that the enactment should apply to contracts or subcontracts 
not greater than the simplified acquisition threshold.
    (c) The provisions of 13.110(b) do not apply to laws that--
    (1) Provide for criminal or civil penalties; or
    (2) Specifically state that notwithstanding the language of Section 
4101, Pub. L. 103-355, the enactment will be applicable to contracts or 
subcontracts in amounts not greater than the simplified acquisition 
threshold.
    (d) Any individual may petition the Administrator of the Office of 
Federal Procurement Policy to include any applicable provision of law 
not included on the list set forth in 13.110(a) unless the FAR Council 
has already determined in writing that the law is applicable. The 
Administrator of OFPP will include the law on the list in 13.110(a) 
unless the FAR Council makes a determination that it is applicable 
within sixty days of receiving the petition.
    41. Section 13.111 is added to read as follows:


13.111  Inapplicable provisions and clauses.

    Pursuant to Pub. L. 103-355, the following provisions and clauses 
are inapplicable to contracts and subcontracts at or below the 
simplified acquisition threshold--
    (a) 28.102-3, Miller Act requirements;
    (b) 52.203-1, Officials Not to Benefit;
    (c) 52.203-4, Contingent Fee Representation and Agreement;
    (d) 52.203-5, Covenant Against Contingent Fees;
    (e) 52.203-6, Restrictions on Subcontractor Sales to the 
Government;
    (f) 52.203-7, Anti-Kickback Procedures;
    (g) 52.215-1, Examination of Records by Comptroller General;
    (h) 52.222-4, Contract Work Hours and Safety Standards Act--
Overtime Compensation;
    (i) 52.223-5, Certification Regarding a Drug-Free Workplace, except 
for individuals; and
    (j) 52.223-6, Drug-Free Workplace, except for individuals.
    42. Section 13.112 is added to read as follows:


13.112  Use of options in acquisitions using simplified acquisition 
procedures.

    Options may be included in acquisitions using simplified 
acquisition procedures provided that the requirements of subpart 17.2 
are met, and that the aggregate value of the acquisition and all 
options does not exceed the dollar threshold for use of simplified 
acquisition procedures under this part.
    43. Subpart 13.2 is revised to read as follows:

Subpart 13.2--Blanket Purchase Agreements

Sec.
13.201  General.
13.202  [Reserved]
13.203  Establishment of Blanket Purchase Agreements.
13.203-1  General.
13.203-2  Clauses.
13.204  Purchases under Blanket Purchase Agreements.
13.205  Review procedures.
13.206  Completion of Blanket Purchase Agreements.


13.201  General.

    (a) A blanket purchase agreement (BPA) is a simplified method of 
filling anticipated repetitive needs for supplies or services by 
establishing ``charge accounts'' with qualified sources of supply (see 
subpart 16.7 for additional coverage of agreements).
    (b) BPAs should be established for use by the level responsible for 
providing supplies for its own operations or for other offices, 
installations, projects, or functions. Such levels, for example, may be 
organized supply points, separate independent or detached field 
parties, or one-person posts or activities.

[[Page 34752]]

    (c) The use of BPAs does not exempt the agency from the 
responsibility for keeping obligations and expenditures within 
available funds.


13.202  [Reserved]


13.203  Establishment of Blanket Purchase Agreements.


13.203-1  General.

    (a) The following are circumstances under which contracting 
officers may establish BPAs:
    (1) If there is a wide variety of items in a broad class of goods 
(e.g., hardware) that are generally purchased but the exact items, 
quantities, and delivery requirements are not known in advance and may 
vary considerably.
    (2) If there is a need to provide 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 in which the writing of numerous purchase 
orders can be avoided through the use of this procedure.
    (b) A BPA should be established without a purchase requisition.
    (c) A BPA shall not cite accounting and appropriation data (see 
13.204(e)(4)).
    (d) BPAs should be made with firms from which numerous individual 
purchases will likely be made in a given period. For example, if past 
experience has shown that certain firms are dependable and consistently 
lower in price than other firms dealing in the same commodities, and if 
numerous purchases at or below the simplified acquisition threshold are 
usually made from such suppliers, it would be advantageous to establish 
BPAs with those firms.
    (e) To the extent practical, BPAs for items of the same type should 
be placed concurrently with more than one supplier. All competitive 
sources should be given an equal opportunity to furnish supplies or 
services under BPAs.
    (f) BPAs may also be established with Federal Supply Schedule 
contractors and Federal Information Processing Multiple Award Schedule 
contractors (see part 39), if not inconsistent with the terms of the 
applicable schedule contract.
    (g) If it is determined that BPAs would be advantageous, suppliers 
should be contacted to make the necessary arrangements for securing 
maximum discounts, documenting the individual purchase transactions, 
periodic billing, and other necessary details.
    (h) A BPA may be limited to furnishing individual items or 
commodity groups or classes, or it may be unlimited for all items or 
services that the source of supply is in a position to furnish.
    (i) BPAs may be prepared and issued on any agency-authorized 
purchase order form.
    (j) BPAs shall contain the following terms and conditions:
    (1) Description of agreement. A statement that the supplier shall 
furnish supplies or services, described in general terms, if and when 
requested by the contracting officer (or the authorized representative 
of the contracting officer) during a specified period and within a 
stipulated aggregate amount, if any.
    (2) Extent of obligation. A statement that the Government is 
obligated only to the extent of authorized purchases actually made 
under the BPA.
    (3) Pricing. A statement that the prices to the Government shall be 
as low or lower than those charged the supplier's most favored customer 
for comparable quantities under similar terms and conditions, in 
addition to any discounts for prompt payment.
    (4) Purchase limitation. A statement that specifies the dollar 
limitation for each individual purchase under the BPA (see 13.204(b)).
    (5) Notice of individuals authorized to purchase under the BPA. A 
statement that a list of individuals authorized to purchase under the 
BPA, identified either by title of position or by name of individual, 
organizational component, and the dollar limitation per purchase for 
each position title or individual shall be furnished to the supplier by 
the contracting officer.
    (6) Delivery tickets. A requirement that all shipments under the 
agreement, except subscriptions and other charges for newspapers, 
magazines, or other periodicals, shall be accompanied by delivery 
tickets or sales slips which shall contain the following minimum 
information:
    (i) Name of supplier.
    (ii) BPA number.
    (iii) Date of purchase.
    (iv) Purchase number.
    (v) Itemized list of supplies or services furnished.
    (vi) Quantity, unit price, and extension of each item, less 
applicable discounts (unit prices and extensions need not be shown when 
incompatible with the use of automated systems; provided, that the 
invoice is itemized to show this information).
    (vii) Date of delivery or shipment.
    (7) Invoices. One of the following statements (except that the 
statement in paragraph (j)(7)(iii) of this section should not be used 
if the accumulation of the individual invoices by the Government 
materially increases the administrative costs of this purchase method):
    (i) A summary invoice shall be submitted at least monthly or upon 
expiration of this BPA, 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 receipt 
copies of the delivery tickets.
    (ii) An itemized invoice shall be submitted at least monthly or 
upon expiration of this BPA, whichever occurs first, for all deliveries 
made during a billing period and for which payments has not been 
received. These invoices need not be supported by copies of delivery 
tickets.
    (iii) When billing procedures provide for an individual invoice for 
each delivery, these invoices shall be accumulated; provided, that--
    (A) A consolidated payment will be made for each specified period; 
and
    (B) The period of any discounts will commence on the final date of 
the billing period or on the date of receipt of invoices for all 
deliveries accepted during the billing period, whichever is later.
    (iv) An invoice for subscriptions or other charges for newspapers, 
magazines, or other periodicals shall show the starting and ending 
dates and shall state either that ordered subscriptions have been 
placed in effect or will be placed in effect upon receipt of payment.
    (k) BPAs in which the fast payment procedure is used shall include 
the requirements stated under 13.303(b).


13.203-2  Clauses.

    (a) The contracting officer shall insert in each BPA the clauses 
prescribed elsewhere in this part that are required for or applicable 
to the particular BPA.
    (b) Unless a clause prescription specifies otherwise, (e.g., see 
22.305(a)(1), 22.605(a)(5), or 22.1006), if the prescription includes a 
dollar threshold, the amount to be compared to that threshold is that 
of any particular order under the BPA.


13.204  Purchases under Blanket Purchase Agreements.

    (a) The use of a BPA does not authorize purchases that are not 
otherwise authorized by law or regulation. For example, the BPA, being 
a method of simplifying the making of individual purchases, shall not 
be used to avoid the simplified acquisition threshold.
    (b) Unless otherwise specified in agency regulations, individual 

[[Page 34753]]
    purchases under BPAs, except those BPAs established in accordance with 
13.203-1(f), shall not exceed (i) $50,000, or (ii) $100,000 when the 
contracting office has certified interim FACNET (see 13.103(b)).
    (c) The existence of a BPA does not justify purchasing from only 
one source or avoiding small business set-asides. The requirements of 
13.105 and 13.106 also apply to each order under a BPA.
    (d) If there is an insufficient number of BPAs to ensure maximum 
practicable competition for a particular purchase, the contracting 
officer shall--
    (1) Solicit quotations from other sources and make the purchase as 
appropriate; and
    (2) Establish additional BPAs to facilitate future purchases if--
    (i) Recurring requirements for the same or similar items or 
services seem likely,
    (ii) Qualified sources are willing to accept BPAs, and
    (iii) It is otherwise practical to do so.
    (e) Documentation of purchases under BPAs shall be limited to 
essential information and forms as follows:
    (1) Purchases under BPAs generally should be made electronically, 
or orally when it is not considered economical or practical to use 
electronic methods.
    (2) A paper purchase document may be issued if written 
communications are necessary to ensure that the vendor and the 
purchaser agree concerning the transaction.
    (3) If a paper document is not issued, the essential elements 
(e.g., date, vendor, items or services, price, delivery date) shall be 
recorded on the purchase requisition, in an informal memorandum, or on 
a form developed locally for the purpose.
    (4) Documentation of purchases under BPAs shall also cite the 
pertinent purchase requisitions and the accounting and appropriation 
data.
    (5) When delivery is made or the services are performed, the 
vendor's sales document, delivery document, or invoice may (if it 
reflects the essential elements) be used for the purpose of recording 
receipt and acceptance of the items or services. However, if the 
purchase is assigned to another activity for administration, receipt 
and acceptance of supplies or services shall be documented by signature 
and date on the agency specified form by the authorized Government 
representative after verification and notation of any exceptions.


13.205  Review procedures.

    (a) The contracting officer placing orders under a BPA, or the 
designated representative of the contracting officer, shall review a 
sufficient random sample of the BPA files at least annually to ensure 
that authorized procedures are being followed.
    (b) The contracting officer that entered into the BPA shall--
    (1) Ensure that each BPA is reviewed at least annually and, if 
necessary, updated at that time; and
    (2) Maintain awareness of changes in market conditions, sources of 
supply, and other pertinent factors that may warrant making new 
arrangements with different suppliers or modifying existing 
arrangements.
    (c) If an office other than the purchasing office that established 
a BPA is authorized to make purchases under that BPA, the agency that 
has jurisdiction over the office authorized to make the purchases shall 
ensure that the procedures in paragraph (a) of this section are being 
followed.


13.206  Completion of Blanket Purchase Agreements.

    An individual BPA is considered complete when the purchases under 
it equal its total dollar limitation, if any, or when its stated time 
period expires.
    44. Subpart 13.3 is revised to read as follows:

Subpart 13.3--Fast Payment Procedure

Sec.
13.301  General.
13.302  Conditions for use.
13.303  Preparation and execution of orders.
13.304  Responsibility for collection of debts.
13.305  Contract clause.


13.301  General.

    The fast payment procedure allows payment under limited conditions 
to a contractor prior to the Government's verification that supplies 
have been received and accepted. The procedure provides for payment for 
supplies based on the contractor's submission of an invoice that 
constitutes a representation that--
    (a) The supplies have been delivered to a post office, common 
carrier, or point of first receipt by the Government; and
    (b) The contractor agrees to replace, repair, or correct supplies 
not received at destination, damaged in transit, or not conforming to 
purchase agreements.


13.302  Conditions for use.

    If the conditions in paragraphs (a) through (f) of this section are 
present, the fast payment procedure may be used, provided that use of 
the procedure is consistent with the other conditions of the purchase. 
The conditions for use of the fast payment procedure are as follows:
    (a) Individual orders do not exceed $25,000 except that executive 
agencies may permit higher dollar limitations for specified activities 
or items on a case-by-case basis.
    (b) Deliveries of supplies are to occur at locations where there is 
both a geographical separation and a lack of adequate communications 
facilities between Government receiving and disbursing activities that 
will make it impractical to make timely payment based on evidence of 
Government acceptance. Use of the fast payment procedure would not be 
indicated, for example, for small purchases by an activity if material 
being purchased is destined for use at that activity and contract 
administration will be performed by the contracting office at that 
activity.
    (c) Title to the supplies will vest in the Government--
    (1) Upon delivery to a post office or common carrier for mailing or 
shipment to destination; or
    (2) Upon receipt by the Government if the shipment is by means 
other than Postal Service or common carrier.
    (d) The supplier agrees to replace, repair, or correct supplies not 
received at destination, damaged in transit, or not conforming to 
purchase requirements.
    (e) The purchasing instrument is a firm-fixed price contract, a 
purchase order, or a delivery order for supplies.
    (f) A system is in place to ensure--
    (1) Documenting evidence of contractor performance under fast 
payment acquisitions;
    (2) Timely feedback to the contracting officer in case of 
contractor deficiencies; and
    (3) Identification of suppliers who have a current history of 
abusing the fast payment procedure (also see subpart 9.1).


13.303  Preparation and execution of orders.

    (a) Except when orders are placed via FACNET, orders incorporating 
the fast payment procedure should be issued on Optional Form 347, Order 
for Supplies or Services, or other agency authorized purchase order 
form (see 13.204(e) for purchases under BPAs). Orders may be either 
priced or unpriced.
    (b) Contracts, purchase orders, or BPAs using the fast payment 
procedure shall include the following:
    (1) A requirement that the supplies be shipped transportation or 
postage prepaid.
    (2) A requirement that invoices be submitted directly to the 
finance or other office designated in the order, or in the case of 
unpriced purchase orders, to the contracting officer (see 13.502(c)).

[[Page 34754]]

    (3) The following statement on consignee's copy:

Consignee's Notification to Purchasing Activity of Nonreceipt, Damage, 
or Nonconformance

    The consignee shall notify the purchasing office promptly after 
the specified date of delivery of supplies not received, damaged in 
transit, or not conforming to specifications of the purchase order. 
Unless extenuating circumstances exist, the notification should be 
made not later than 60 days after the specified date of delivery.

    (4) A requirement that the contractor mark outer shipping 
containers ``FAST PAY.''


13.304  Responsibility for collection of debts.

    The contracting officer shall be primarily responsible for 
collecting debts resulting from failure of contractors to properly 
replace, repair, or correct supplies lost, damaged, or not conforming 
to purchase requirements (see 32.605(b) and 32.606).


13.305  Contract clause.

    The contracting officer shall insert the clause at 52.213-1, Fast 
Payment Procedure, in solicitations and contracts when the conditions 
in 13.302 are applicable and it is intended that the fast payment 
procedure be used in the contract (in the case of BPAs, the contracting 
officer may elect to insert the clause either in the BPA or in orders 
under the BPA).
    45. Subpart 13.4 is revised to read as follows:

Subpart 13.4--Imprest Fund

Sec.
13.401  General.
13.402  Agency responsibilities.
13.403  Conditions for use.
13.404  Procedures.


13.401  General.

    This subpart prescribes policies and procedures for using imprest 
funds to purchase supplies or services. Related policies and 
regulations concerning the establishment of and accounting for imprest 
funds, including the responsibilities of designated cashiers and 
alternates, are contained in Part IV of the Treasury Financial Manual 
for Guidance of Departments and Agencies, Title 7 of the General 
Accounting Office Policy and Procedures Manual for Guidance of Federal 
Agencies, and the agency implementing regulations. Agencies shall also 
be guided by the Manual of Procedures and Instructions for Cashiers, 
issued by the Financial Management Service, Department of the Treasury.


13.402  Agency responsibilities.

    Each agency using imprest funds shall--
    (a) Periodically review and determine whether there is continuing 
need for each fund established, and that amounts of those funds are not 
in excess of actual needs;
    (b) Take prompt action to have imprest funds adjusted to a level 
commensurate with demonstrated needs whenever circumstances warrant 
such action; and
    (c) Develop and issue appropriate implementing regulations. These 
regulations shall include (but are not limited to) procedures 
covering--
    (1) Designation of personnel authorized to make purchases using 
imprest funds; and
    (2) Documentation of purchases using imprest funds, including 
documentation of--
    (i) Receipt and acceptance of supplies and services by the 
Government;
    (ii) Receipt of cash payments by the suppliers; and
    (iii) Cash advances and reimbursements.


13.403  Conditions for use.

    Imprest funds may be used for purchases when--
    (a) The transaction does not exceed $500 or such other limits as 
have been approved by the agency head;
    (b) The use of imprest funds is considered to be advantageous to 
the Government; and
    (c) The use of imprest funds for the transaction otherwise complies 
with any additional conditions established by agencies and with the 
policies and regulations referenced in 13.401.


13.404  Procedures.

    (a) Each purchase using imprest funds shall be based upon an 
authorized purchase requisition.
    (b) Normally, orders to suppliers should be placed orally and 
without soliciting competition if prices are considered reasonable.
    (c) Purchases shall be distributed equitably among qualified 
suppliers.
    (d) Prompt payment discounts shall be solicited.
    (e) Any agency-authorized purchase order form or Standard Form 
1165, Receipt for Cash-Subvoucher, may be used if a written order is 
considered necessary (e.g., if required by the supplier for discount, 
tax exemption, or other reasons). If a purchase order is used for this 
purpose, it shall be endorsed ``Payment to be made from Imprest Fund''.
    (f) The individual authorized to make purchases using imprest funds 
shall--
    (1) Furnish to the imprest fund cashier a copy of the purchase 
requisition annotated to reflect--
    (i) That an imprest fund purchase has been made;
    (ii) The unit prices and extensions;
    (iii) The supplier's name and address; and
    (iv) The date of anticipated delivery; and
    (2) Require the supplier to include with delivery of the supplies 
an invoice, packing slip, or other sales instrument giving--
    (i) The supplier's name and address;
    (ii) List and quantity of items;
    (iii) Unit prices and extensions; and
    (iv) Cash discount, if any.
    46. Subpart 13.5 is revised to read as follows:

Subpart 13.5--Purchase Orders

Sec.
13.501  General.
13.502  Unpriced purchase orders.
13.503  Obtaining contractor acceptance and modifying purchase 
orders.
13.504  Termination or cancellation of purchase orders.
13.505  Purchase order and related forms.
13.505-1  Optional Form (OF) 347, Order for Supplies or Services, 
and Optional Form 348, Order for Supplies or Services Schedule-
Continuation.
13.505-2  [Reserved]
13.505-3  Standard Form 44, Purchase Order-Invoice-Voucher.
13.506  Unsigned electronic purchase orders.
13.507  Provisions and clauses.


13.501  General.

    (a) Except as provided under the unpriced purchase order method 
(see 13.502), purchase orders shall be issued on a fixed-price basis 
unless otherwise authorized by agency procedures.
    (b) Purchase orders shall include any trade and prompt payment 
discounts that are offered, consistent with the applicable principles 
in 14.408-3.
    (c) Purchase orders shall specify the quantity of supplies or 
services ordered.
    (d) Inspections under simplified acquisition procedures shall be as 
prescribed in part 46. Orders generally shall provide that inspection 
and acceptance will be at destination, and source inspection should be 
specified only if required by part 46. If inspection and acceptance are 
to be performed at destination, advance copies of the purchase order 
shall be furnished to consignee(s) for material receipt purposes. 
Receiving reports shall be accomplished immediately upon receipt and 
acceptance of material.
    (e) F.o.b. destination shall be specified for supplies to be 
delivered within the United States, except Alaska and Hawaii, unless 
there are valid reasons to the contrary.

[[Page 34755]]

    (f) Each purchase order shall contain a determinable date by which 
delivery of supplies or performance of services is required.
    (g) The contracting officer's signature on purchase orders shall be 
in accordance with 4.101. Facsimile signature may be used in the 
procedure of purchase orders by automated methods.
    (h) Distribution of copies of purchase orders and related forms 
shall be limited to those copies required for essential administration 
and transmission of contractual information.


13.502  Unpriced purchase orders.

    (a) An unpriced purchase order is an order for supplies or 
services, the price of which is not established at the time of issuance 
of the order.
    (b) An unpriced purchase order may be used only when--
    (1) It is anticipated that the transaction will not exceed--
    (i) $50,000; or
    (ii) $100,000 when the contracting office of an agency has 
certified interim or full FACNET (see 13.103(b)).
    (2) It is impractical to obtain pricing in advance of issuance of 
the purchase order; and
    (3) The purchase if for--
    (i) Repairs to equipment requiring disassembly to determine the 
nature and extent of repairs;
    (ii) Material available from only one source and for which cost 
cannot be readily established; or
    (iii) Supplies or services for which prices are known to be 
competitive but exact prices are not known (e.g., miscellaneous repair 
parts, maintenance agreements).
    (c) Unpriced purchase orders may be issued by using written 
purchase orders or electronically (see 13.506). A realistic monetary 
limitation, either for each line item or for the total order, shall be 
placed on each unpriced purchase order. The monetary limitation shall 
be an obligation subject to adjustment when the firm price is 
established. The contracting office shall follow-up each order to 
ensure timely pricing. The contracting officer or the contracting 
officer's designated representative shall review the invoice price and, 
if reasonable (see 13.106-2(a)), process the invoice for payment.


13.503  Obtaining contractor acceptance and modifying purchase orders.

    (a) When it is desired to consummate a binding contract between the 
parties before the contractor undertakes performance, the contracting 
officer shall require written acceptance of the purchase order by the 
contractor.
    (b) A purchase order may be modified by use of--
    (1) Standard Form 30, Amendment of Solicitation/Modification of 
Contract;
    (2) An agency-designed form or an agency-approved automated format; 
or
    (3) A purchase order form, if not prohibited by agency regulations.
    (c) Each purchase order modification shall identify the order it 
modifies and shall contain an appropriate modification number.
    (d) Contracting officers need not obtain a contractor's written 
acceptance of a purchase order modification, unless the written 
acceptance is--
    (1) Determined by the contracting officer to be necessary to ensure 
the contractor's compliance with the purchase order as revised; or
    (2) Required by agency regulations.


13.504  Termination or cancellation of purchase orders.

    (a) If a purchase order that has been accepted in writing by the 
contractor is to be terminated, the contracting officer shall process 
the termination action as prescribed by part 49.
    (b) If a purchase order that has not been accepted in writing by 
the contractor is to be canceled, the contracting officer shall notify 
the contractor in writing that the purchase order has been canceled, 
request the contractor's written acceptance of the cancellation, and 
proceed as follows:
    (1) If the contractor accepts the cancellation and does not claim 
that costs were incurred as a result of beginning performance under the 
purchase order, no further action is required (i.e., the purchase order 
shall be considered canceled).
    (2) If the contractor does not accept the cancellation or claims 
that costs were incurred as a result of beginning performance under the 
purchase order, the contracting officer shall process the termination 
action as prescribed by part 49.


13.505  Purchase order and related forms.


13.505-1  Optional Form (OF) 347, order for supplies or services, and 
Optional Form 348, order for supplies or services schedule-
continuation.

    (a) Optional Form 347 (illustrated in 53.302-347) and Optional Form 
348 (illustrated in 53.302-348) are multipurpose forms designed for the 
following:
    (1) Negotiated purchases of supplies or services.
    (2) Delivery orders.
    (3) Inspection and receiving reports.
    (4) Invoices.
    (b) Agencies may use order forms other than Optional Form 347 and 
348 and may print on those forms the clauses they consider to be 
generally suitable for their purchases using simplified acquisition 
procedures. The clauses may include agency clauses, if they do not 
conflict with clauses prescribed by the FAR and are designated as 
agency clauses.


13.505-2  [Reserved]
13.505-3  Standard Form 44, purchase order-invoice-voucher.

    (a) Standard Form 44, Purchase Order-Invoice-Voucher (illustrated 
in 53.301-44) is a pocket-size purchase order form designed primarily 
for on-the-spot, over-the-counter purchases of supplies and nonpersonal 
services while away from the purchasing office or at isolated 
activities. It is a multipurpose form that can be used as a purchase 
order, receiving report, invoice, and public voucher.
    (b) Standard Form 44 may be used if all of the following conditions 
are satisfied:
    (1) The amount of the purchase is at or below the micro-purchase 
threshold, except for purchases made under unusual and compelling 
urgency or in support of a contingency operation. Agencies may 
establish higher dollar limitations for specific activities or items.
    (2) The supplies or services are immediately available.
    (3) One delivery and one payment will be made.
    (4) Its use is determined to be more economical and efficient than 
use of other simplified acquisition methods.
    (c) General procedural instructions governing the use of Standard 
Form 44 are printed on the form and on the inside front cover of each 
book of forms.
    (d) Since there is, for all practical purposes, simultaneous 
placing of purchase orders on Standard Form 44 and delivery of the 
items ordered, clauses are not required for purchases using this form.
    (e) Agencies shall provide adequate safeguards regarding the 
control of forms and accounting for purchases.


13.506  Unsigned electronic purchase orders.

    (a) An unsigned electronic purchase order (EPO) may be issued when 
the following conditions are present--
    (1) Its use is more advantageous to the Government than any other 
simplified acquisition method;
    (2) It is acceptable to the supplier;
    (3) It is approved by the contracting officer;
    (4) It does not require written acceptance by the supplier; and

[[Page 34756]]

    (5) The purchasing office retains all contract administration 
functions.
    (b) When an unsigned EPO is used--
    (1) Appropriate clauses shall be incorporated by reference;
    (2) Administrative information that is not needed by the supplier 
shall be placed only on copies intended for internal distribution;
    (3) The same distribution shall be made of the unsigned EPO as is 
made of signed purchase orders; and
    (4) No purchase order form is required.
    (c) An unsigned EPO may be unpriced if it meets the conditions in 
13.502.


13.507  Provisions and clauses.

    (a) Each purchase order (and each purchase order modification (see 
13.503)) shall incorporate all clauses required for or applicable to 
the particular acquisition.
    (b) The contracting officer shall insert the clause at 52.213-2, 
Invoices, in purchase orders that authorize advance payments (see 31 
U.S.C. 3324(d)(2)) for subscriptions or other charges for newspapers, 
magazines, periodicals, or other publications (i.e., any publication 
printed, microfilmed, photocopied, or magnetically or otherwise 
recorded for auditory or visual usage).
    (c) The contracting officer shall insert the clause at 52.213-3, 
Notice to Supplier, in unpriced purchase orders.

PART 15--CONTRACTING BY NEGOTIATION

    47. Section 15.106-1 is amended by revising paragraph (b)(1) to 
read as follows:


15.106-1  Examination of Record clause.

* * * * *
    (b) * * *
    (1) The contract amount is at or below the simplified acquisition 
threshold;
* * * * *
    48. Section 15.106-2 is amended by revising the first sentence in 
paragraph (b) to read as follows:


15.106-2  Audit-Negotiation clause.

* * * * *
    (b) The contracting officer shall insert the clause at 52.215-2, 
Audit-Negotiation, in solicitations and contracts when contracting by 
negotiation, unless the acquisition is made under simplified 
acquisition procedures. * * *
    49. Section 15.401 is amended by revising paragraph (a) to read as 
follows:


15.401  Applicability.

* * * * *
    (a) Acquisitions made under simplified acquisition procedures (see 
part 13); and
* * * * *
    50. Section 15.602 is amended by revising paragraph (b) to read as 
follows:


15.602  Applicability.

* * * * *
    (b) This subpart does not apply to acquisitions using simplified 
acquisition procedures (see part 13).
    51. Section 15.804-2 is amended by revising the first sentence of 
paragraph (a)(3) introductory text; and (a)(4) and (a)(5) to read as 
follows:


15.804-2  Requiring certified cost or pricing data.

    (a) * * *
* * * * *
    (3) The contracting officer may obtain certified cost or pricing 
data for pricing actions below the pertinent threshold in paragraph 
(a)(1) of this section provided the action exceeds the simplified 
acquisition threshold. * * *
* * * * *
    (4) The contracting officer shall not require certified cost or 
pricing data when awarding a contract below the simplified acquisition 
threshold in part 13.
    (5) When certified cost or pricing data are not required, the 
contracting officer may request partial or limited data to determine a 
reasonable price.
* * * * *
    52. Section 15.812-2 is amended by revising paragraph (a)(1) to 
read as follows:


15.812-2  Contract clause.

    (a) * * *
    (1) Acquisitions at or below the simplified acquisition threshold;
* * * * *
    53. Section 15.1001 is amended by revising the first sentence of 
paragraph (b)(1), and (c)(1) introductory text and (c)(3) to read as 
follows:


15.1001  Notifications to unsuccessful offerors.

* * * * *
    (b) * * * (1) When the proposal evaluation period for a 
solicitation not using simplified acquisition procedures in part 13 is 
expected to exceed 30 days, or when a limited number of offerors have 
been selected as being within the competitive range (see 15.609), the 
contracting officer, upon determining that a proposal is unacceptable, 
shall promptly notify the offeror. * * *
* * * * *
    (c) Postaward notices. (1) After award of contracts resulting from 
solicitations not using simplified acquisition procedures, the 
contracting officer shall notify unsuccessful offerors in writing or 
electronically, unless preaward notice was given under paragraph (b) of 
this section. The notice shall include--
* * * * *
    (3) Upon request, the contracting officer shall furnish the 
information described in 15.1001(c)(1) (i) through (v) to unsuccessful 
offerors in solicitations using simplified acquisition procedures in 
part 13.

PART 16--TYPES OF CONTRACTS

    54. Section 16.000 is amended by revising the first sentence to 
read as follows:


16.000  Scope of part.

    This part describes types of contracts that may be used in 
acquisitions other than those made under simplified acquisition 
procedures in part 13, unless otherwise authorized by agency 
procedures. * * *
    55. Section 16.103 is amended by revising paragraph (d)(1) to read 
as follows:


16.103  Negotiating contract type.

* * * * *
    (d) * * * (1) acquisitions made under simplified acquisition 
procedures in part 13, unless otherwise required under agency 
procedures,
* * * * *
    56. Section 16.105 is revised to read as follows:


16.105  Solicitation provision.

    The contracting officer shall complete and insert the provision at 
52.216-1, Type of Contract, in a solicitation unless it is for--
    (a) A fixed-price acquisition made under simplified acquisition 
procedures (see part 13); or
    (b) Information or planning purposes.

PART 19--SMALL BUSINESS PROGRAMS


19.102  [Amended]

    57. Section 19.102 is amended by removing paragraph (f)(3) and 
redesignating paragraphs (f)(4) through (f)(7) as (f)(3) through 
(f)(6).
    58. Section 19.303 is amended by revising paragraph (a) to read as 
follows:


19.303  Determining product or service classifications.

    (a) The contracting officer shall determine the appropriate 
standard industrial classification code and related small business size 
standard and include them in solicitations above the micro-purchase 
threshold in 13.101.
* * * * * 

[[Page 34757]]



19.104  [Amended]

    59. Section 19.304 is amended in paragraph (a) after the word 
``solicitations'' by adding the parenthetical ``(other than micro-
purchases)'', and in paragraphs (b), (c), and (d) by removing the 
parenthetical ``(other than those for small purchases)'' and inserting 
``(other than micro-purchases)'' in its place.


19.501  [Amended]

    60. Section 19.501 is amended by removing from paragraph (d) the 
phrase ``small purchase limitation in 13.000'' and inserting in its 
place ``micro-purchase threshold in 13.101''; by removing paragraphs 
(f) and (g) and redesignating paragraphs (h), (i), and (j) as (f), (g) 
and (h); and by removing the last two sentences from paragraph (c).
    61. Section 19.502-1 is amended by adding a sentence at the end of 
paragraph (c) to read as follows:


19.502-1  Requirements for setting aside acquisitions.

* * * * *
    (c) * * * This requirement does not apply to purchases of $2,500 or 
less, purchases from required sources of supply under part 8 (e.g., 
Federal Prison Industries, Committee for Purchase From People Who Are 
Blind or Severely Disabled, and Federal Supply Schedule contracts), or 
orders under Federal Information Processing (FIP) Multiple Award 
Schedule contracts.
    62. Section 19.502-2 is revised to read as follows:


19.502-2  Total set-asides.

    (a) Each acquisition of supplies or services that has an 
anticipated dollar value exceeding $2,500, but not over $100,000, is 
automatically reserved exclusively for small business concerns, unless 
the contracting officer is unable to obtain offers from two or more 
small business concerns that are competitive with market prices and 
with regard to the quality and delivery of the goods or services being 
purchased. This requirement does not preclude the award of a contract 
with a value not greater than $100,000 under 19.8, Contracting with the 
Small Business Administration, or under 19.1006(c), Emerging small 
business set-aside.
    (b) The contracting officer shall set aside any acquisition over 
$100,000 for small business participation when there is a reasonable 
expectation that (1) offers will be obtained from at least two 
responsible small business concerns offering the products of different 
small business concerns (but see paragraph (c) of this subsection); and 
(2) awards will be made at fair market prices. Total small business 
set-asides shall not be made unless such a reasonable expectation 
exists (but see 19.502-3 as to partial set-asides). Although past 
acquisition history of the item or similar items is always important, 
it is not the only factor to be considered in determining whether a 
reasonable expectation exists. In making R&D small business set-asides, 
there must also be a reasonable expectation of obtaining from small 
businesses the best scientific and technological sources consistent 
with the demands of the proposed acquisition for the best mix of cost, 
performances, and schedules.
    (c) For set-asides other than for construction or services, any 
concern proposing to furnish the product which it did not itself 
manufacture must furnish the product of a small business manufacturer 
unless the Small Business Administration has granted a waiver (see 
19.102(f)). In industries where the SBA finds that there are no small 
business manufacturers, it may waive the nonmanufacturers rule for 
regular dealers (see 19.102(f)(4)). This would permit small business 
regular dealers to provide any firm's product. In these cases, the 
contracting officer's determination in paragraph (b)(1) of this 
subsection or the decision not to set-aside a procurement reserved for 
small business under paragraph (a) of this subsection will be based on 
the expectation of receiving offers from at least two responsible small 
business regular dealers offering the products of different concerns.
    (d) The requirements of this subsection do not apply to 
acquisitions over $25,000 during the period when set-asides cannot be 
considered for the four designated industry groups (see 19.1006(b)).


19.502-3  [Amended]

    63. Section 19.502-3 is amended in paragraph (a)(4) by removing the 
phrase ``small purchase procedures'' and inserting ``simplified 
acquisition procedures'' in its place.
    64. Section 19.502-4 is amended by revising paragraph (a) to read 
as follows:


19.502-4  Methods of conducting set-asides.

    (a) Total set-asides may be conducted by using simplified 
acquisition procedures (see part 13), sealed bids (see part 14), or 
competitive proposals (see part 15). Partial small business set-asides 
may be conducted using sealed bids (see part 14), or competitive 
proposals (see part 15).
* * * * *
    65. Section 19.503 is amended by revising paragraph (c)(2) to read 
as follows:


19.503  Setting aside a class of acquisitions.

* * * * *
    (c) * * *
    (2) Provide that the set-aside does not apply to any acquisition 
automatically reserved for small business concerns under 19.502-2(a).
* * * * *
    66. Section 19.506 is amended by revising the last sentence of 
paragraph (b) to read as follows:


19.506  Withdrawing or modifying set-asides.

* * * * *
    (b) * * * However, the procedures are not applicable to automatic 
dissolutions of set-asides (19.507) or dissolutions of set-asides of 
acquisitions automatically reserved exclusively for small business 
concerns (19.502-2(a)).
* * * * *


19.508  [Amended]

    67. Section 19.508 is amended by removing and reserving paragraph 
(a); by removing ``19.502-2(b)'' at the end of paragraphs (b), (c) and 
(d) and inserting ``19.502-2(c)'' in their place; by removing the word 
``not'' in the last sentence of paragraphs (b), (c) and (d) and 
inserting ``no'' in their place; and by removing the phrase ``small 
purchase procedures'' in paragraph (e) and inserting ``simplified 
acquisition procedures'' in its place.


19.702  [Amended]

    68. Section 19.702 is amended by removing the phrase ``small 
purchase limitation in 13.000'' from the introductory text and 
inserting ``the simplified acquisition threshold in 13.101'' in its 
place.
19.708  [Amended]

    69. Section 19.708 is amended in paragraph (a) introductory text by 
removing the phrase ``small purchase limitation in 13.000'' and 
inserting ``the simplified acquisition threshold in 13.101'' in its 
place.


19.902  [Amended]

    70. Section 19.902 is amended by removing the phrase ``small 
purchase limitation'' in the introductory text and inserting 
``simplified acquisition threshold'' in its place.


19.1006  [Amended]

    71. Section 19.1006 is amended in paragraph (c)(3) by removing the 
phrase ``small purchase'' and inserting ``simplified acquisition'' in 
its place.

[[Page 34758]]


PART 20--LABOR SURPLUS AREA CONCERNS


20.103  [Amended]

    72. Section 20.103 is amended by removing the phrase ``appropriate 
small purchase limitation in part 13'' in paragraph (b) and inserting 
``simplified acquisition threshold in 13.101'' in its place.


20.104  [Amended]

    73. Section 20.104 is amended by removing the phrase ``appropriate 
small purchase limitation in part 13'' in the introductory text and 
inserting ``simplified acquisition threshold in 13.101'' in its place.


20.202  [Amended]

    74. Section 20.202 is amended by removing the phrase ``appropriate 
small purchase limitation in part 13'' and inserting ``simplified 
acquisition threshold in 13.101'' in its place.


20.301  [Amended]

    75. Section 20.301 is amended in paragraph (a) by removing the 
phrase ``appropriate small purchase limitation in part 13'' and 
inserting ``simplified acquisition threshold in 13.101'' in its place.


20.302  [Amended]

    76. Section 20.302 is amended in paragraph (a) introductory text by 
removing the phrase ``appropriate small purchase limitation in part 
13'' and inserting ``simplified acquisition threshold in 13.101'' in 
its place.

PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS


22.202  [Amended]

    77. Section 22.202 is amended in the introductory text by adding 
the phrase ``above the micro-purchase threshold,'' after ``contracts''.
    78. Section 22.305 is amended by revising the first sentence of the 
introductory text and paragraph (a), removing paragraph (b) and 
redesignating paragraphs (c) through (h) as (b) through (g) to read as 
follows:


22.305  Contract clause.

    The contracting officer shall insert the clause at 52.222-4, 
Contract Work Hours and Safety Standards Act-Overtime Compensation, in 
solicitations and contracts (including, for this purpose, basic 
ordering agreements) when the contract may require or involve the 
employment of laborers or mechanics. * * *
    (a) Contracts at or below the simplified acquisition threshold.
* * * * *


22.1006  Contract clauses.

    79. Section 22.1006 is amended by revising the heading to read as 
set forth above and by removing from the first two sentences of 
paragraphs (c)(1) and (c)(2) the phrase ``small purchase limitation'' 
and inserting ``simplified acquisition threshold'' in their places.

PART 23--ENVIRONMENT CONSERVATION, OCCUPATIONAL SAFETY, AND DRUG-
FREE WORKPLACE

    80. Section 23.101 is amended by revising the first sentence to 
read as follows:


23.101  Applicability.

    This subpart does not apply to contracts at or below the simplified 
acquisition threshold or to the use of facilities outside the United 
States. * * *
    81. Section 23.501 is amended by revising paragraph (a) to read as 
follows:


23.501  Applicability.

* * * * *
    (a) Contracts at or below the simplified acquisition threshold; 
however, the requirements of this subpart shall apply to contracts of 
any value if the contract is awarded to an individual;
* * * * *
    82. Section 23.504 is amended by revising the introductory text of 
paragraph (a) to read as follows:


23.504  Policy.

    (a) No offeror other than an individual shall be considered a 
responsible source (see 9.104-1) for a contract that exceeds the 
simplified acquisition threshold, unless it has certified, pursuant to 
52.223-5, Certification Regarding a Drug-Free Workplace, that it will 
provide a drug-free workplace by--
* * * * *
    83. Section 23.505 is amended by revising paragraph (a)(2) to read 
as follows:


23.505  Solicitation provision and contract clause.

    (a) * * *
    (2) Expected to exceed the simplified acquisition threshold if the 
contract is expected to be awarded to other than an individual; or
* * * * *

PART 25--FOREIGN ACQUISITION

    84. Section 25.302 is amended by revising paragraph (b)(1) to read 
as follows:


25.302  Policy.

* * * * *
    (b) * * *
    (1) The estimated cost of the product or service is at or below the 
simplified acquisition threshold in part 13.
* * * * *
    85. Section 25.703 is amended by revising the third sentence to 
read as follows:


25.703  Exceptions.

    * * * The approval level for this exception is the contracting 
officer for acquisitions at or below the simplified acquisition 
threshold unless otherwise provided by agency procedures. In the case 
of contracts in excess of the simplified acquisition threshold, the 
approval level is the agency head. * * *

PART 27--PATENTS, DATA, AND COPYRIGHTS

    86. Section 27.201-2 is amended by revising paragraph (a) to read 
as follows:


27.201-2  Clauses on authorization and consent.

    (a) The contracting officer shall insert the clause at 52.227-1, 
Authorization and Consent, in solicitations and contracts (including 
those for construction; architect-engineer services; dismantling, 
demolition, or removal of improvements; and noncommon carrier 
communication services), except when using simplified acquisition 
procedures or both complete performance and delivery are outside the 
United States, its possessions, and Puerto Rico. Although the clause is 
not required when simplified acquisition procedures are used, it may be 
used with them.
* * * * *
    87. Section 27.202-2 is revised to read as follows:


27.202-2  Clause on notice and assistance.

    The contracting officer shall insert the clause at 52.227-2, Notice 
and Assistance Regarding Patent and Copyright Infringement, in supply, 
service, or research and development solicitations and contracts 
(including construction and architect-engineer contracts) which 
anticipate a contract value above the simplified acquisition threshold, 
except when complete performance and delivery are outside the United 
States, its possessions, and Puerto Rico, unless the contracts indicate 
that the supplies or other 

[[Page 34759]]
deliverables are ultimately to be shipped into one of those areas.
    88. Section 27.203-1 is amended by revising paragraph (b)(4) to 
read as follows:


27.203-1  General.

* * * * *
    (b) * * *
    (4) When the contract is awarded using simplified acquisition 
procedures.
* * * * *

PART 28--BONDS AND INSURANCE

    89. Section 28.103-2 is amended by revising the first sentence of 
paragraph (a) to read as follows:


28.103-2  Performance bonds.

    (a) Performance bonds may be required for contracts exceeding the 
simplified acquisition threshold when necessary to protect the 
Government's interest. * * *
* * * * *
    90. Section 28.310 is amended by revising paragraph (a) 
introductory text to read as follows:


28.310  Contract clause for work on a Government installation.

    (a) The contracting officer shall insert the clause at 52.228-5, 
Insurance-Work on a Government Installation, in solicitations and 
contracts when a fixed-price contract is contemplated, the contract 
amount is expected to exceed the simplified acquisition threshold in 
part 13, and the contract will require work on a Government 
installation, unless--
* * * * *

PART 29--TAXES

    91. Section 29.401-3 is revised to read as follows:


29.401-3  Competitive contracts.

    The contracting officer shall insert the clause at 52.229-3, 
Federal, State, and Local Taxes, in solicitations and contracts if the 
contract is to be performed wholly or partly within the United States, 
its possessions, or Puerto Rico, when a fixed-price contract is 
contemplated and the contract is expected to exceed the simplified 
acquisition threshold in part 13, unless the clause at 52.229-4, 
Federal, State, and Local Taxes (Noncompetitive Contract), is included 
in the contract.


29.401-4  [Amended]

    92. Section 29.401-4 is amended by removing the words ``small 
purchase limitation in 13.000'' after the words ``exceeds the'' and 
inserting ``simplified acquisition threshold in part 13'' in its place.

PART 32--CONTRACT FINANCING

    93. Section 32.617 is amended by revising paragraph (a)(1) to read 
as follows:


32.617  Contract clause.

    (a) * * *
    (1) Contracts at or below the simplified acquisition threshold.
* * * * *
    94. Section 32.901 is revised to read as follows:


32.901  Applicability.

    This subpart applies to all Government contracts (including 
contracts at or below the simplified acquisition threshold as defined 
in subpart 13.1), except contracts with payment terms and late payment 
penalties established by other governmental authority (e.g., tariffs).
    95. Section 32.908 is amended by revising paragraph (c) to read as 
follows:


32.908  Contract clauses.

* * * * *
    (c) The contracting officer shall insert the clause at 52.232-25, 
Prompt Payment, in all other solicitations and contracts (including 
contracts at or below the simplified acquisition threshold in part 13), 
except as indicated in 32.901.
* * * * *
33.106  [Amended]

    96. Section 33.106(a) is amended by removing ``other than small 
purchases'' and inserting ``contracts expected to exceed the simplified 
acquisition threshold'' in its place.

PART 36--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS


36.602-5  Short selection process for contracts not to exceed the 
simplified acquisition threshold.

    97. The heading of 36.602-5 is revised to read as set forth above.


36.502, 36.503, 36.506, 36.508, 36.509, 36.510, 36.512, 36.513, 36.515, 
36.521, 36.602-5, and 36.702  [Amended]

    98. Part 36 is amended removing the phrase ``exceed the small 
purchase limitation'' and inserting ``exceed the simplified acquisition 
threshold'' in its place in the following locations: 36.502, 36.503, 
36.506, 36.508, 36.509, 36.510, 36.512, 36.513(a), 36.515, 36.521, 
36.602-5 introductory text, 36.702(b)(2).


36.511 and 36.701  [Amended]

    99. Part 36 is amended by removing the phrase ``exceed the small 
purchase limitations'' and inserting ``exceed the simplified 
acquisition threshold'' in the following locations: 36.511 and 
36.701(b).


36.502, 36.503, 36.506, 36.508, 36.509, 36.510, 36.512, 36.513, 36.521, 
and 36.701  [Amended]

    100. Part 36 is amended by removing the phrase ``within the small 
purchase limitation'' and inserting ``at or below the simplified 
acquisition threshold'' at the following locations: 36.502, 36.503, 
36.506, 36.508, 36.509, 36.510, 36.512, 36.513(a), 36.521, 36.701(c).


36.511, 36.701, and 36.702  [Amended]

    101. Part 36 is amended by removing the phrase ``within the small 
purchase limitations'' and inserting ``at or below the simplified 
acquisition threshold'' at the following locations: 36.511, 36.701(b), 
and 36.702(b)(2).

PART 41--ACQUISITION OF UTILITY SERVICES

    102. In 41.201(b), the first sentence is revised to read as 
follows:


41.201  Policy.

* * * * *
    (b) Except for acquisitions at or below the simplified acquisition 
threshold in part 13, agencies shall acquire utility services by a 
bilateral written contract, which must include the clauses required by 
41.501, regardless of whether rates or terms and conditions of service 
are fixed or adjusted by a regulatory body. * * *
* * * * *


41.401  [Amended]

    103. Section 41.401 is amended in the first sentence by removing 
``small purchase'' and inserting ``simplified acquisition'' in its 
place, and in the second sentence by removing ``beneath the small 
purchase dollar'' and inserting ``at or below the simplified 
acquisition'' in its place.

PART 42--CONTRACT ADMINISTRATION


42.903  [Amended]

    104. In section 42.903, the phrase ``small purchase limitation in 
13.000'' is removed and ``simplified acquisition threshold in part 13'' 
is inserted in its place.


42.1104  [Amended]

    105. In 42.1104(b) the phrase ``Contracts of values less than the 
small purchase'' is removed and ``Contracts at or below the simplified 
acquisition threshold'' is inserted in its place.

[[Page 34760]]


PART 43--CONTRACT MODIFICATIONS


43.205  [Amended]

    106. In section 43.205(d)(2) and (e), the phrase ``applicable small 
purchase limitation'' is removed and ``simplified acquisition 
threshold'' is inserted in its place.

PART 44--SUBCONTRACTING POLICIES AND PROCEDURES


44.201-2 and 44.204  [Amended]

    107. In sections 44.201-2(b) and 44.204(e), the phrase ``small 
purchase limitation'' is removed and ``simplified acquisition 
threshold'' is inserted in its place.

PART 45--GOVERNMENT PROPERTY

    108. Section 45.106 is amended by revising paragraph (e) to read as 
follows:


45.106  Government property clauses.

* * * * *
    (e) When the cost of the item to be repaired does not exceed the 
simplified acquisition threshold in part 13, purchase orders for 
property repair need not include a Government property clause.
* * * * *

PART 46--QUALITY ASSURANCE


46.202-1  [Amended]

    109. In section 46.202-1(a), the phrase ``under small purchases'' 
is removed and ``at or below the simplified acquisition threshold'' is 
inserted in its place.


46.301  [Amended]

    110. In section 46.301 in the introductory text the phrase ``within 
the small purchase limitation'' is removed and ``at or below the 
simplified acquisition threshold'' is inserted in its place.


46.302  [Amended]

    111. In the first sentence of section 46.302, the phrase ``small 
purchase limitation'' is removed and ``simplified acquisition 
threshold'' is inserted in its place; and in the second sentence, the 
phrase ``within the small purchase limitation'' is removed and ``at or 
below the simplified acquisition threshold'' is inserted in its place.


46.304  [Amended]

    112. In section 46.304, in the first sentence the phrase ``small 
purchase limitation'' is removed and ``simplified acquisition 
threshold'' is inserted in its place, and in the second sentence, the 
phrase ``within the small purchase limitation'' is removed and ``at or 
below the simplified acquisition threshold'' is inserted in its place.
46.307  [Amended]

    113. In section 46.307(a)(3), the phrase ``small purchase 
limitation'' is removed and ``simplified acquisition threshold'' is 
inserted in its place; and in paragraph (b) the phrase ``within the 
small purchase limitation'' is removed and ``at or below the simplified 
acquisition threshold'' is inserted in its place.


46.312  [Amended]

    114. In the first sentence of section 46.312, the phrase ``small 
purchase limitation'' is removed and ``simplified acquisition 
threshold'' is inserted in its place; and in the second sentence the 
phrase ``within small purchase limitation'' is removed and ``at or 
below the simplified acquisition threshold'' is inserted in its place.


46.316  [Amended]

    115. In section 46.316, the phrase ``small purchase limitation'' is 
removed and ``simplified acquisition threshold'' is inserted each time 
it appears.


46.404  Government contract quality assurance for acquisitions at or 
below the simplified acquisition threshold.

    116. Section 46.404 is amended by revising the heading to read as 
set forth above; by removing the words ``small purchases'' in 
paragraphs (a) and (b)(1) and inserting ``contracts at or below the 
simplified acquisition threshold'' in their place.
    117. Section 46.805 is amended in the heading of paragraph (a) and 
introductory text of paragraph (a) by removing ``small purchase 
limitation in 13.000'' and inserting ``simplified acquisition threshold 
in part 13''; and by revising paragraph (b) to read as follows:


46.805  Contract clauses.

* * * * *
    (b) Acquisitions at or below the simplified acquisition threshold 
in part 13. The clauses prescribed by paragraph (a) of this section are 
not required for contracts at or below the simplified acquisition 
threshold in part 13. However, in response to a contractor's specific 
request, the contracting officer may insert the clauses prescribed in 
paragraph (a)(1) or (a)(4) of this section in a contract at or below 
the simplified acquisition threshold in part 13 and may obtain any 
price reduction that is appropriate.

PART 47--TRANSPORTATION

    118. Section 47.104-4(a)(2) is amended by removing the phrase 
``small purchases under'' and inserting ``contracts at or below the 
simplified acquisition threshold in'' in its place; and revising 
paragraph (b) to read as follows:


47.104-4  Contract clauses.

* * * * *
    (b) The contracting officer may insert the clause at 52.247-1, 
Commercial Bill of Lading Notations, in solicitations and contracts 
made at or below the simplified acquisition threshold in part 13 when 
it is contemplated that the delivery terms will be f.o.b. origin.


47.200  [Amended]

    119. In 47.200(b)(4), remove the phrase ``Small purchases under'' 
and insert ``Contracts at or below the simplified acquisition threshold 
in'' in its place.


47.205  [Amended]

    120. In section 47.205(b), remove the phrase ``small purchase 
limitation under the small purchase procedures in part 13'' and insert 
``simplified acquisition threshold at 13.101'' in its place.


47.305-16  [Amended]

    121. In the first sentence of 47.305-16(b)(1), remove the phrase 
``awarded under the small purchase procedures of'' and insert ``at or 
below the simplified acquisition threshold in'' in its place.
    122. Section 47.405 is amended by revising the last sentence to 
read as follows:


47.405  Contract clause.

    * * * This clause does not apply to contracts awarded using the 
simplified acquisition procedures in part 13.
    123. Section 47.504(d) is revised to read as follows:


47.504  Exceptions.

* * * * *
    (d) Contracts awarded using the simplified acquisition procedures 
in part 13.

PART 49--TERMINATION OF CONTRACTS


49.504  [Amended]

    124. In section 49.504 at paragraphs (a) (1), (b) and (c)(1), in 
the first sentence remove the phrase ``small purchase limitation'' and 
insert ``simplified acquisition threshold'' in its place; and in the 
second sentence, remove the phrase ``not expected to exceed the small 
purchase limitation'' and insert ``at or below the simplified 
acquisition threshold;'' in its place.

[[Page 34761]]


PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


52.203-6  [Amended]

    125. In the clause at 52.203-6, the date of the clause is revised 
to read (JUL 1995), and at the end of paragraph (c), add the phrase 
``which exceed $100,000.''


52.203-7  [Amended]

    126. In the clause at 52.203-7, the date of the clause is revised 
to read (JUL 1995) and at the end of paragraph (c)(5) add the phrase 
``which exceed $100,000.''


52.209-6  [Amended]

    127. In the clause at 52.209-6, the date of the clause is revised 
to read (JUL 1995) and in the second sentence of paragraph (a) and in 
paragraph (b) remove the phrase ``the small purchase limitation at FAR 
13.000'' and insert ``$25,000''.
    128. Sections 52.213-2 and 52.213-3 are amended by revising the 
introductory paragraphs and removing the derivation lines following 
``(End of clause)'' to read as follows:


52.213-2  Invoices.

    As prescribed in 13.507(b), insert the following clause:
* * * * *


52.213-3  Notice to supplier.

    As prescribed in 13.507(c), insert the following clause:
* * * * *


52.215-1  [Amended]

    129. Section 52.215-1 is amended by revising the clause date to 
read ``(JUL 1995)''; in paragraph (a) by removing ``small purchase 
limitation'' and inserting ``simplified acquisition threshold'' in its 
place; in the first sentence of paragraph (c) by adding the phrase ``, 
exceeding $100,000,'' after the first appearance of ``subcontracts''; 
and removing the derivation lines after ``(End of clause)''.


52.215-2  [Amended]

    130. In the clause in 52.215-2, the date is revised to read ``(JUL 
1995)'', and in paragraph (f), ``are over the small purchase 
limitation'' is removed and ``exceed the simplified acquisition 
threshold'' is inserted in its place.
    131. Section 52.216-1 is amended by revising the introductory 
paragraph and removing the derivation line following ``(End of 
clause)'' to read as follows:


52.216-1  Type of contract.

    As prescribed in 16.105, complete and insert the following 
provision:
* * * * *


52.219-4  [Reserved]

    132. Section 52.219-4 is removed and reserved.


52.219-5  [Amended]

    133. Section 52.219-5 is amended by revising the date of the clause 
to read ``(JUL 1995)''; and in paragraph (c)(1)(ii) of the clause by 
removing the phrase ``small purchase limitation'' and inserting 
``simplified acquisition threshold'' in its place.


52.219-7  [Amended]

    134. Section 52.219-7 is amended by revising the date of the clause 
to read ``(JUL 1995)''; and in paragraph (c)(2) of the clause by 
removing the phrase ``small purchase limitation'' and inserting 
``simplified acquisition threshold'' in its place.
    135. Section 52.220-1 is amended by revising the introductory text 
to read as follows:


52.220-1  Preference for Labor Surplus Area Concerns.

    As prescribed in 20.103(b), insert the following provision:
* * * * *
    136. Section 52.220-2 is amended by revising the introductory text; 
revising the date of the clause to read ``(JUL 1995)''; in paragraph 
(c)(2) of the clause by removing the parenthetical ``(if it exceeds the 
appropriate small purchase limitation in part 13 of the Federal 
Acquisition Regulation)''; and removing the derivation line following 
``(End of clause)''. The revised text reads as follows:


52.220-2  Notice of Total Labor Surplus Area Set-Aside.

    As prescribed in 20.202, insert the following clause:
* * * * *


52.220-3  [Amended]

    137. Section 52.220-3 is amended by revising the date of the clause 
to read ``(JUL 1995)''; removing paragraph (a) and redesignating 
paragraphs (b), (c), and (d) as (a), (b), and (c), respectively; in 
newly designated paragraph (b) by removing the phrase ``paragraph (b) 
above'' and inserting ``paragraph (a) of this clause'' in its place; 
and removing the derivation lines following ``(End of clause)''.


52.222-4  [Amended]

    138. In the clause at 52.222-4, the date is revised to read ``(JUL 
1995)'' and, in the first sentence of paragraph (e), following 
``subcontracts'' the first time it appears, add the phrase ``, 
exceeding $100,000,''.
    139. Section 52.223-5 is amended in the clause by revising the date 
and paragraph (b) introductory text to read as follows:


52.223-5  Certification Regarding A Drug-Free Workplace.

* * * * *

Certification Regarding a Drug-Free Workplace (Jul 1995)

* * * * *
    (b) By submission of its offer, the offeror (other than an 
individual) responding to a solicitation that is expected to exceed 
the simplified acquisition threshold, certifies and agrees, that 
with respect to all employees of the offeror to be employed under a 
contract resulting from this solicitation, it will--no later than 30 
calendar days after contract award (unless a longer period is agreed 
to in writing), for contracts of 30 calendar days or more 
performance duration; or as soon as possible for contracts of less 
than 30 calendar days performance duration, but in any case, by a 
date prior to when performance is expected to be completed--
* * * * *


52.227-1  [Amended]

    140. In the clause at section 52.227-1, revise the clause date to 
read ``(JUL 1995)'' and in paragraph (b), remove ``$25,000'' after the 
word ``exceed'' and insert ``the simplified acquisition threshold'' in 
its place; remove the phrase ``under or over $25,000'' and insert 
``including those at or below the simplified acquisition threshold'' in 
its place; and remove the derivation line after ``(End of clause)''.


52.227-3  [Amended]

    141. In section 52.227-3, Alternate III, revise the clause date to 
read ``(JUL 1995)'' and remove ``$25,000'' and insert ``the simplified 
acquisition threshold''.
    142. The introductory paragraphs in sections 52.236-2, 52.236-3, 
52.236-6, 52.236-8, 52.236-9, 52.236-10, 52.236-11, 52.236-12, 52.236-
15, 52.236-21, and 52.243-5 are revised and the derivation lines are 
removed following ``(End of clause)'' to read as follows:


52.236-2  Differing Site Conditions.

    As prescribed in 36.502, insert the following clause:
* * * * *


52.236-3  Site Investigation and Conditions Affecting the Work.

    As prescribed in 36.503, insert the following clause:
* * * * *


52.236-6  Superintendence by the Contractor.

    As prescribed in 36.506, insert the following clause:
* * * * *

[[Page 34762]]



52.236-8  Other Contracts.

    As prescribed in 36.508, insert the following clause:
* * * * *


52.236-9  Protection of Existing Vegetation, Structures, Equipment, 
Utilities, and Improvements.
    As prescribed in 36.509, insert the following clause:
* * * * *


52.236-10  Operations and Storage Areas.

    As prescribed in 36.510, insert the following clause:
* * * * *


52.236-11  Use and Possession Prior to Completion.

    As prescribed in 36.511, insert the following clause:
* * * * *


52.236-12  Cleaning Up.

    As prescribed in 36.512, insert the following clause:
* * * * *


52.236-15  Schedules for Construction Contracts.

    As prescribed in 36.515, insert the following clause:
* * * * *


52.236-21  Specifications and Drawings for Construction.

    As prescribed in 36.521, insert the following clause:
* * * * *


52.243-5  Changes and Changed Conditions.

    As prescribed in 43.205(e), insert the following clause:
* * * * *


52.244-2  [Amended]

    143. In section 52.244-2, Alternate I, revise the parenthetical 
date to read ``(JUL 1995)'' and, in paragraph (a)(2), remove the phrase 
``small purchase limitation'' and insert ``simplified acquisition 
threshold'' in its place.
    144. Section 52.244-5 is amended by revising the introductory text; 
removing paragraphs (a) and (b); and removing the derivation lines 
following ``(End of clause)'' to read as follows:


52.244-5  Competition in Subcontracting.

    As prescribed in 44.204(e), insert the following clause:
* * * * *
    145. The introductory paragraphs of sections 52.246-1, 52.246-7, 
52.246-12, 52.246-16, 52.246-23, 52.246-24, and 52.246-25 are revised 
and the derivation lines following ``(End of clause)'' are removed to 
read as follows:


52.246-1  Contractor Inspection Requirements.

    As prescribed in 46.301, insert the following clause:
* * * * *


52.246-7  Inspection of Research and Development--Fixed Price.

    As prescribed in 46.307(a), insert the following clause:
* * * * *


52.246-12  Inspection of Construction.

    As prescribed in 46.312, insert the following clause:
* * * * *


52.246-16  Responsibilities for Supplies.

    As prescribed in 46.316, insert the following clause:
* * * * *


52.246-23  Limitation of Liability.

    As prescribed in 46.805, insert the following clause:
* * * * *


52.246-24  Limitation of Liability--High-Value Items.

    As prescribed in 46.805, insert the following clause:
* * * * *


52.246-25  Limitation of Liability--Services.

    As prescribed in 46.805, insert the following clause:
* * * * *
    146. Section 52.247-1 is amended by adding introductory text, and 
removing paragraphs (a) and (b) and the derivation lines following 
``(End of clause)'' to read as follows:


52.247-1  Commercial Bill of Lading Notations.

    As prescribed in 47.104-4, insert the following clause:
* * * * *
    147. Section 52.247-64 is amended by revising the introductory 
text; in the clause heading, the date is revised to read ``(JUL 
1995)''; in paragraph (d), remove the words ``small purchases as 
described in 48 CFR 13'' and insert ``contracts at or below the 
simplified acquisition threshold as described in FAR part 13'' in their 
place; in paragraph (e)(1), remove the words ``Small purchases as 
defined in 48 CFR 13'' and insert ``Contracts at or below the 
simplified acquisition threshold as defined in FAR part 13'' in their 
place; and remove the derivation line after ``(End of clause)''. The 
revised text reads as follows:


52.247-64  Preference for Privately Owned U.S.-Flag Commercial Vessels.

    As prescribed in 47.507(a), insert the following clause:
* * * * *
    148. In sections 52.249-8, 52.249-9, and 52.249-10 the introductory 
paragraphs are revised and the derivation lines following ``(End of 
clause)'' are removed to read as follows:


52.249-8  Default (Fixed-Price Supply and Service).

    As prescribed in 49.504(a)(1), insert the following clause:
* * * * *


52.249-9  Default (Fixed-Price Research and Development).

    As prescribed in 49.504(b), insert the following clause:
* * * * *


52.249-10  Default (Fixed-Price Construction).

    As prescribed in 49.504(c)(1), insert the following clause:
* * * * *

PART 53--FORMS

    149. Section 53.213 is amended by revising the heading, the 
introductory paragraph, and paragraphs (a), (c), (e) heading, and 
(e)(1) to read as follows:


53.213  Simplified acquisition procedures (SF's 18, 30, 44, 1165, OF's 
347, 348).

    The following forms are prescribed as stated below for use in 
simplified acquisition procedures, orders under existing contracts or 
agreements, and orders from required sources of supplies and services:
    (a) SF 18 (Rev. 6/95), Request for Quotations. SF 18 prescribed in 
53.215-1(a), shall be used in obtaining price, cost, delivery, and 
related information from suppliers as specified in 13.107(a).
* * * * *
    (c) SF 44 (Rev. 10/83), Purchase Order Invoice Voucher. SF 44 is 
prescribed for use in simplified acquisition procedures, as specified 
in 13.505-3.
* * * * *
    (e) OF 347 (6/95), Order for Supplies or Services, and OF 348 (10/
83), Order for Supplies or Services--Schedule Continuation. * * *
    (1) To accomplish acquisitions under simplified acquisition 
procedures, as specified in 13.505-1.
* * * * *
    150. Section 53.215-1 is amended by revising the introductory 
paragraph; and in paragraph (a) by revising ``(REV 5/93)'' to read 
``(REV 6/95)''. The revised text reads as follows:

[[Page 34763]]



53.215-1  Solicitation and receipt of proposals and quotations.

    The following forms are prescribed, as stated below, for use in 
contracting by negotiation (except for construction, architect-engineer 
services, or acquisitions made using simplified acquisition 
procedures):
* * * * *


53.236-1  [Amended]

    151. Section 53.236-1 is amended in paragraph (e) by removing two 
references to ``small purchase limitation'' and inserting ``simplified 
acquisition threshold'' in both places; by adding ``6/95)'' immediately 
following the first reference to ``OF 347'' in paragraph (f); and 
removing ``contracts of $10,000 or less'' and inserting ``contracts 
under the simplified acquisition threshold'' in its place.
    152. Section 53.301-18 is revised to read as follows:


53.301-18  SF 18 (REV 6/95), Request for Quotations.

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    153. Section 53.302-347 is revised to read as follows:


53.302-347  OF 347 (REV 6/95), Order for Supplies or Services.

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[[Page 34766]]
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[FR Doc. 95-16081 Filed 6-30-95; 8:45 am]
BILLING CODE 6820-EP-C