[Federal Register Volume 61, Number 145 (Friday, July 26, 1996)]
[Rules and Regulations]
[Pages 39189-39199]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18499]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION-

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION-

48 CFR Parts 1, 2, 3, 4, 5, 8, 11, 12, 13, 15, 16, 19, 22, 23, 25, 
28, 29, 32, 36, 41, 42, 43, 44, 45, 46, 47, 52, and 53-

[FAC 90-40; FAR Cases 94-770 and 94-771; Item II] -
RIN 9000-AG18/9000-AG26


Federal Acquisition Regulation; Simplified Acquisition Threshold/
Federal Acquisition Computer Network; and Micro-Purchase Procedures

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

ACTION: Interim rules adopted as final with changes.

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SUMMARY: The Federal Acquisition Regulatory Council is amending the 
Federal Acquisition Regulation (FAR) to finalize the interim rules 
concerning simplified acquisition procedures and Federal Acquisition 
Computer Network (FACNET) requirements of the Federal Acquisition 
Streamlining Act of 1994. This rule also implements section 4302 of the 
Federal Acquisition Reform Act which deleted the requirement for 
attaining interim FACNET certification before simplified acquisition 
procedures could be used between $50,000 and $100,000. This is a 
significant rule within the meaning of Executive Order 12866; however, 
it is not a major rule under 5 U.S.C. 804.

EFFECTIVE DATE: August 26, 1996.

FOR FURTHER INFORMATION CONTACT: Mr. Paul Linfield at (202) 501-1757 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 90-40, FAR cases 94-770 and 94-771.

SUPPLEMENTARY INFORMATION:

A. Background-

    The Federal Acquisition Streamlining Act of 1994, Public Law 103-
355 (FASA), provided a number of authorities that streamlined the 
acquisition process and made a number of substantial changes in the 
manner in which relatively low dollar procurements are conducted. FASA 
created a micro-purchase threshold of $2,500, a simplified acquisition 
threshold of $100,000, provided for the use of simplified acquisition 
procedures up to the $100,000 threshold, and created the Federal 
Acquisition Computer Network (FACNET). FASA limited use of simplified 
acquisition procedures by procurement activities not having certified 
interim FACNET to procurements not exceeding $50,000. The Federal 
Acquisition Reform Act of 1996 (Division D of the National Defense 
Authorization Act for Fiscal Year 1996), Public Law 104-106 (FARA), 
deleted the requirement for attaining interim FACNET certification 
before simplified acquisition procedures could be used between $50,000 
and $100,000. This final rule implements that provision of FARA, as 
well as the aforementioned provisions of FASA.
    The simplified acquisition procedures of FASA were implemented in 
the FAR at 60 FR 34741 on July 3, 1995, in FAC 90-29, FAR case 94-770. 
The micro-purchase provisions of FASA were implemented in the FAR at 59 
FR 64786 on December 15, 1994, in FAC 90-24, FAR case 94-771. Also 
published in FAC 90-29 was an interim rule on FAR case 91-104, 
Electronic Contracting, which remains interim and is not being 
finalized at this time.
    An interagency team is considering technical issues pertaining to 
Central Contractor Registration at FAR 4.503. There may be additional 
changes to that section as part of FAR case 94-772.
    Among the changes in this final rule are:

--Definitions contained in the rule have been moved to FAR 2.101.
--The requirement for interim FACNET to be accomplished before 
simplified acquisition procedures can be used for acquisitions between 
$50,000 and $100,000 has been deleted.
--The clause at 52.222-40, Service Contract Act of 1965, as amended, 
Contracts of $2,500 or Less, has been deleted based upon a regulatory 
change by the Department of Labor.
--An information phone number for FACNET is provided in 4.503.
--The coverage in Part 13 on small business programs has been moved to 
Part 19 under FAR case 94-782 of this Federal Acquisition Circular.

Note that for non-FACNET acquisitions over $25,000, a synopsis for 15 
days is still required.

B. Regulatory Flexibility Act-

    The Regulatory Flexibility Act, 5 U.S.C. 601, et seq., applies to 
this final rule, and a Final Regulatory Flexibility Analysis (FRFA) has 
been prepared and submitted to the Chief Counsel for Advocacy for the 
Small Business Administration. This rule implements the simplified 
acquisition procedures and Federal Acquisition Computer Network 
(FACNET) requirements of the Federal Acquisition Streamlining Act of 
1994 (the Act) (Public Law 103-355). The rule applies to all 
businesses, large and small organizations, educational and nonprofit, 
who are interested in participating in Government acquisitions at or 
below the simplified acquisition threshold of $100,000. The 
implementation of FACNET provides for the electronic exchange of 
acquisition information between the private sector and the Federal 
Government. It is estimated that the electronic exchange of acquisition 
information will improve business opportunities for more than 300,000 
vendors currently doing business with the Government. A copy of the 
FRFA may be obtained from the FAR Secretariat at the General Services 
Administration, 18th and F Streets NW., Washington, DC 20405.

C. Paperwork Reduction Act-

    This final rule does impose an additional reporting or 
recordkeeping requirement on the public which requires the approval of 
the Office of Management and Budget (OMB) under 44 U.S.C. 3501, et seq. 
Contractors are required to electronically register with

[[Page 39190]]

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 are 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 
wishes to do 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, under OMB Control Number 9000-0137. 
Public comments concerning this request were invited through a Federal 
Register notice at 60 FR 11659, March 2, 1995. No comments were 
received in response to this notice.

D. Public Comments-

    Public comments were solicited at 59 FR 64786, December 15, 1994, 
and 60 FR 34741, July 3, 1995. In response to the Federal Register 
notice, 30 commenters responded with hundreds of specific comments. 
These comments were considered in the formulation of the final rule. A 
matrix of comments is available from the FAR Secretariat.

List of Subjects in 48 CFR Parts 1, 2, 3, 4, 5, 8, 11, 12, 13, 15, 16, 
19, 22, 23, 25, 28, 29, 32, 36, 41, 42, 43, 44, 45, 46, 47, 52, and 53-

    Government procurement.

    Dated: July 16, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

    -Therefore, the interim rules for FAR case 94-770 (60 FR 34741, 
July 3, 1995) and FAR case 94-771 (59 FR 64786, December 15, 1994) are 
adopted as final with the following changes:-
    1. The authority citation for 48 CFR 1, 2, 3, 4, 5, 8, 11, 12, 13, 
15, 16, 19, 22, 23, 25, 28, 29, 32, 36, 41, 42, 43, 44, 45, 46, 47, 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).

Chapter 1 [Amended]-

    2. The following sections are amended by removing the words ``in 
Part 13'':

2.201
3.502-3
3.503-2
4.603
4.805(b)(13) introductory text
5.303(b), introductory text
8.203-1(a)(1)
15.106-1(b)(1)
16.504(c)(1)(v)
19.702, introductory text
19.708(a)
28.310(a)
29.401-3
29.401-4
32.202-1(b)(2)
32.908(c)
41.201(b)
42.903
43.205 (d)(2) and (e)
44.201-2(b)(2)
44.204(e)
45.106(e)
46.805 (a) and (b) heading and introductory text;
47.104-4 (a)(2) and (b)
47.200(b)(4)
47.305-16(b)

PART 1--FEDERAL ACQUISITION REGULATIONS SYSTEM

    3. Section 1.304 is amended by revising paragraph (a) to read as 
follows:


1.304  Agency control and compliance procedures.-

    (a) Under the authorities of 1.301(c), agencies shall control and 
limit issuance of agency acquisition regulations and, in particular, 
local agency directives that restrain the flexibilities found in the 
FAR, and shall establish formal procedures for the review of these 
documents to assure compliance with this part 1.
* * * * *-
    4. Section 1.603-3 is revised to read as follows:


1.603-3  Appointment.-

    (a) Contracting officers shall be appointed in writing on an SF 
1402, Certificate of Appointment, which shall state any limitations on 
the scope of authority to be exercised, other than limitations 
contained in applicable law or regulation. Appointing officials shall 
maintain files containing copies of all appointments that have not been 
terminated.-
    (b) Agency heads are encouraged to delegate micro-purchase 
authority to individuals who are employees of an executive agency or 
members of the Armed Forces of the United States who will be using the 
supplies or services being purchased. Individuals delegated this 
authority are not required to be appointed on an SF 1402, but shall be 
appointed in writing in accordance with agency procedures.

PART 2-DEFINITIONS OF WORDS AND TERMS-

    5. Section 2.101 is amended to add, in alphabetical order, the 
definitions of ``delivery order,'' ``Federal Acquisition Computer 
Network (FACNET) Architecture,'' ``full FACNET,'' ``Governmentwide 
FACNET,'' ``interim FACNET,'' ``micro-purchase,'' ``micro-purchase 
threshold,'' ``simplified acquisition procedures,'' ``simplified 
acquisition threshold,'' and ``task order'' to read as follows:


2.101  Definitions.

* * * * *-
    Delivery order means an order for supplies placed against an 
established contract or with Government sources.
* * * * *-
    Federal Acquisition Computer Network (FACNET) Architecture means 
the Governmentwide Electronic Commerce/Electronic Data Interchange (EC/
EDI) operational capability 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 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, were entered into by the agency 
during the preceding fiscal year using an interim FACNET certified 
electronic automated information system.-
    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, entered into by the executive agencies during the preceding 
fiscal year were made through electronic automated information systems 
with full FACNET certification.
* * * * *-
    Interim FACNET means a contracting office has been certified as 
having implemented the electronic automated information systems 
capability to provide widespread public notice of contracting 
opportunities, issue solicitations, and receive responses to 
solicitations and associated requests for

[[Page 39191]]

information. Such capability must allow the private sector to access 
notices of solicitations, access and review solicitations, and respond 
to solicitations.
* * * * *-
    Micro-purchase means an acquisition of supplies or services (except 
construction), the aggregate amount of which does not exceed $2,500, 
except that in the case of construction, the limit is $2,000. -
    Micro-purchase threshold means $2,500.
* * * * *-
    Simplified acquisition procedures means the methods prescribed in 
part 13 for making purchases of supplies or services.-
    Simplified acquisition threshold means $100,000, except that 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 
as defined in 10 U.S.C. 101(a)(13), the term means $200,000.
* * * * *-
    Task order means an order for services placed against an 
established contract or with Government sources.
* * * * *

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

    6. Section 3.104-4 is amended by revising paragraph (h)(5) to read 
as follows:


3.104-4  Definitions.

* * * * *-
    (h) * * *-
    (5) For purposes of 3.104-4(h), the term procurement official does 
not include contracting officers or other individuals whose authority 
is limited to the micro-purchase threshold if the head of the 
contracting activity determines that it is unlikely that the individual 
will make purchases in a total amount greater than $20,000 in any 12-
month period.


3.104-10  [Amended]-

    7. Section 3.104-10 is amended in paragraph (c) by removing the 
parenthetical ``(see Part 13).''
    8. Section 3.502-2 is amended to revise the heading and the 
introductory text of paragraph (i) and to add paragraph (j) to read as 
follows:


3.502-2   Subcontractor kickbacks.

* * * * *-
    (i) Requires each contracting agency to include in each prime 
contract exceeding $100,000 for other than commercial items (see part 
12), a requirement that the prime contractor shall--
* * * * *-
    (j) Notwithstanding paragraph (i) of this subsection, a prime 
contractor shall cooperate fully with any Federal government agency 
investigating a violation of Section 3 of the Anti-Kickback Act of 1986 
(41 U.S.C. 51-58).

PART 4--ADMINISTRATIVE MATTERS-

    9. Section 4.501 is amended---
    a. By removing the definitions of ``Federal Acquisition Computer 
Network (FACNET),'' ``Full FACNET,'' ``Governmentwide FACNET,'' 
``Interim FACNET,'' ``Value-Added Network (VAN),'' and ``Value-Added 
Service (VAS)''; -
    b. By revising the heading of the definition of ``ANSI X.12'' to 
read ``ANSI X12, as used in this subpart,'';-
    c. By inserting, following the end of the definition headings for 
``electronic commerce (EC),'' ``electronic data interchange (EDI),'' 
and ``transaction set'', the phrase ``, as used in this subpart,''; 
and-
    d. By adding, in alphabetical order, the definitions of 
``Implementation convention'' and ``Trading partner''. The revised text 
reads as follows:


4.501   Definitions.

* * * * *-
    Implementation convention (IC), as used in this subpart, means the 
common practices and/or interpretations of the use of ANSI X12 
standards. Conventions define how trading partners will use the 
standards for their mutual needs. The Federal IC will be used by 
organizational elements of the Federal community and by government 
organizations and by Trading Partners to exchange data with the Federal 
community.-
    Trading Partner, as used in this subpart, means a business that has 
agreed to exchange business information electronically.
* * * * *-
    10. Section 4.502 is amended by revising paragraph (a); by removing 
paragraphs (b) and (c), and redesignating paragraph (d) as (b) to read 
as follows:


4.502   Policy.-

    (a) The Federal Government shall use FACNET whenever practicable or 
cost-effective. Contracting officers may supplement FACNET transactions 
by using other media to meet the requirements of any contract action 
governed by the FAR (e.g., transmit hard copy of drawings).-
* * * * *
    11. Section 4.503 is revised to read as follows:


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 (CCR). Phone (800) 
EDI-3414 for information regarding FACNET.-
    (b) The contractor will be required to submit trading partner 
profile information, including a Data Universal Numbering System (DUNS) 
number, in accordance with the Federal implementation conventions of 
the appropriate ANSI X12 transaction set for contractor registration.-
    12. Section 4.504 is amended by revising the introductory text for 
paragraphs (a) and (b) to read as follows:


4.504   FACNET functions.-

    (a) For agencies--
* * * * *-
    (b) For the private sector--
* * * * *


4.507   [Removed]-

    13. Section 4.507 is removed.


4.800   [Amended]-

    14. Section 4.800 is amended in the parenthetical by removing the 
reference ``12.106-2'' and inserting ``13.106-2(d)'' in its place.

PART 5--PUBLICIZING CONTRACT ACTIONS-

    15. Section 5.101 is amended by revising the first sentence of 
paragraph (a)(2) and by revising paragraph (a)(2)(ii) to read as 
follows:


5.101   Methods of disseminating information.

* * * * *-
    (a) * * *
* * * * *-
    (2) For proposed contract actions expected to exceed $10,000, but 
not expected to exceed $25,000, by displaying in a public place, 
including on an electronic bulletin board, or any other appropriate 
electronic means located 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). * * 
*
* * * * *-
    (ii) The contracting officer need not comply with the display 
requirements of this section when the exemptions at 5.202 (a)(1), 
(a)(4) through (a)(9), or (a)(11) apply, or when oral or FACNET 
solicitations are used.
* * * * *-

[[Page 39192]]

    16. Section 5.202 is amended to revise paragraphs (a)(2) and 
(a)(14) to read as follows:


5.202   Exceptions.

* * * * *-
    (a) * * *-
    (2) The contract action is made under the conditions described in 
6.302-2 (or, for purchases conducted using simplified acquisition 
procedures, if unusual and compelling urgency precludes competition to 
the maximum extent practicable) and the Government would be seriously 
injured if the agency complies with the time periods specified in 
5.203;
* * * * *-
    (14) The contract action is for an amount at or below $250,000 and 
is made through FACNET after Governmentwide FACNET has been certified 
pursuant to 4.505-3; or
* * * * *


5.203   [Amended]-

    17. Section 5.203 is amended in the first sentence of paragraph (b) 
by removing ``respond for'' and inserting ``respond to''.-
    18. Section 5.205 is amended in paragraph (d)(2) by revising the 
first sentence to read as follows:


5.205   Special situations.

* * * * *-
    (d) * * *-
    (2) When the total fee is expected to exceed $10,000 but not exceed 
$25,000, the contracting officer shall comply with 5.101(a)(2). * * *
* * * * *-
    19. Section 5.207 is amended by revising paragraph (c)(2)(xiv) and 
the first sentence of (e)(3) to read as follows:


5.207   Preparation and transmittal of synopses.

* * * * *-
    (c) * * *
    (2) * * *
    (xiv) In the case of noncompetitive contract actions (including 
those that do not exceed the simplified acquisition threshold), 
identify the intended source (see 5.207(e)(3)) and insert a statement 
of the reason justifying the lack of competition.
* * * * * -
    (e) * * *
    (3) In the case of a noncompetitive contract action expected to 
exceed the simplified acquisition threshold, the synopsis shall refer 
to Numbered Note 22. * * *
    20. Section 5.503 is amended in paragraph (a) by designating the 
existing text as (a)(1) and adding paragraph (a)(2); by removing 
paragraph (c) and redesignating paragraphs (d) and (e), as (c) and (d), 
respectively. The revised text reads as follows:


5.503   Procedures. -

    (a) General. (1) * * *-
    (2) The contracting officer shall use the SF 1449 for paper 
solicitations. The SF 1449 shall be used to make awards or place orders 
unless the award/order is made via FACNET or by using the 
Governmentwide commercial purchase card for micro-purchases.
* * * * *

PART 11--DESCRIBING AGENCY NEEDS-

    21. Section 11.002 is amended to revise paragraph (a)(1)(i) to read 
as follows:


11.002   Policy.

    (a) * * *
    (1) * * *
    (i) Promote full and open competition (see part 6), or maximum 
practicable competition when using simplified acquisition procedures, 
with due regard to the nature of the supplies or services to be 
acquired; and
* * * * *-
    22. Section 11.104 is amended to add paragraph (c) to read as 
follows:


11.104  Items peculiar to one manufacturer.

* * * * *-
    (c) The basis for not providing for maximum practicable competition 
is documented in the file when the acquisition is awarded using 
simplified acquisition procedures.

PART 12--ACQUISITION OF COMMERCIAL ITEMS


12.102  [Amended]-

    23. Section 12.102 is amended in paragraphs (d)(1) and (d)(4) by 
removing the parenthetical ``(see Subpart 13.6)'' and by revising the 
parenthetical in paragraph (d)(2) to read ``(see 13.505)''.


12.206  [Amended]

    24. Section 12.206 is amended in the last sentence by revising 
``13.106-1'' to read ``13.106-2''.


12.301  [Amended]-

    25. Section 12.301 is amended in paragraph (c)(2) by revising 
``13.106-1'' to read ``13.106-2''.


12.602  [Amended]-

    26. Section 12.602 is amended in the first sentence of paragraph 
(a) and the sixth sentence of paragraph (b) by revising ``13.106-1'' to 
read ``13.106-2''.

PART 13--SIMPLIFIED ACQUISITION PROCEDURES-

    27. 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, research and 
development, and commercial items, the aggregate amount of which does 
not exceed the simplified acquisition threshold (see 2.101). See part 
12, Acquisition of Commercial Items, for policies applicable to the 
acquisition of commercial items exceeding the micro-purchase threshold. 
See 36.602-5 for simplified procedures to be used when acquiring 
architect-engineer services.-
    28. Section 13.101 is amended by removing the definitions of 
``delivery order,'' ``micro-purchase,'' ``micro-purchase threshold,'' 
``simplified acquisition procedures,'' and ``simplified acquisition 
threshold''; by inserting, following the end of the definition heading 
``bulk funding'', ``, as used in this part,''; by revising the 
definition of ``Governmentwide commercial purchase card''; by inserting 
following the end of the definition headings ``imprest fund,'' and 
``purchase order'', ``, as used in this part,''; and by adding, in 
alphabetical order, the definition for ``third party draft'' to read as 
follows:


13.101  Definitions.

* * * * *-
    Governmentwide commercial purchase card, as used in this part, 
means a purchase card, similar in nature to a commercial credit card, 
issued to authorized agency personnel to use to acquire and to pay for 
supplies and services.
* * * * *
    Third party draft, as used in this part, means an agency bank 
draft, similar to a check, which is used to acquire and to pay for 
supplies and services. (See Treasury Financial Manual Section 
3040.70.)-
    29. Section 13.102 is amended by revising paragraph (b) and by 
removing the comma at the end of paragraph (c) to read as follows:


13.102  Purpose.

* * * * *
    (b) Improve opportunities for small business, small disadvantaged 
business, and women-owned small business concerns to obtain a fair 
proportion of Government contracts;
* * * * *

[[Page 39193]]

    30. 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 (including purchases 
below the micro-purchase 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), GSA 
Nonmandatory Schedule Contracts for FIP Resources, existing indefinite 
delivery/indefinite quantity contracts, or other established 
contracts.-
    (b) 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 or the micro-purchase threshold shall 
not be broken down into several purchases that are less than the 
applicable threshold merely to permit use of simplified acquisition 
procedures, or to avoid any requirements that apply to purchases 
exceeding the micro-purchase threshold.-
    (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) The Governmentwide commercial purchase card is the preferred 
means to purchase and pay for micro-purchases. This is not intended to 
limit use of the purchase card to micro-purchases, if otherwise 
authorized under agency procedures, nor is it intended to preclude use 
of electronic purchasing techniques.-
    (f) Agencies are encouraged to use the Governmentwide commercial 
purchase card and electronic purchasing techniques to the maximum 
extent practicable. The Governmentwide commercial purchase card may be 
used to purchase and pay for purchases under part 8 procedures when 
authorized, under existing indefinite delivery/indefinite quantity 
contracts, or from other established contracts in accordance with 
agency procedures.
    (g) FACNET shall be used to acquire supplies and services 
(including construction, research and development, and architect-
engineer) for contract actions exceeding the micro-purchase threshold, 
but not exceeding the simplified acquisition threshold when practicable 
and cost-effective (see 4.506). Drawings and lengthy specifications can 
be provided off-line in hard copy or through other appropriate means.
    (h) Contracting officers shall establish deadlines for the 
submission of responses to solicitations which afford suppliers a 
reasonable opportunity to respond in accordance with 5.203, Publicizing 
and response time.
    (i) Contracting officers shall consider all quotes/offers that are 
timely received.
    (j) Contracting officers are encouraged to use innovative 
approaches in awarding contracts using the simplified acquisition 
procedures under the authority of this part. For commercial items, 
contracting officers may use either the streamlined solicitation 
procedure in subpart 12.6 or the existing procedures in parts 13, 14, 
15, 35, or 36 as applicable, if they are more streamlined and 
beneficial, thereby allowing maximum flexibility. For other than 
commercial items, the procedures in other FAR parts may be appropriate. 
Other FAR parts that may be used include, but are not limited to parts 
14, 15, 35, or 36.
    (k) Micro-purchases may be awarded using any of the purchasing 
methods covered in this part, provided the purchaser is authorized and 
trained, pursuant to agency regulations, to use those methods.
    31. Section 13.104 is amended by revising paragraphs (b), (e), and 
(f) to read as follows:


13.104  Procedures.

* * * * *
    (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'' or ``multiple award'' basis if suppliers are so advised 
when quotations are requested.
* * * * *
    (e) Agencies shall use United States-owned excess or near-excess 
foreign currency, if appropriate, in making payments under simplified 
acquisition procedures (see subpart 25.3).
    (f) For proposed purchases covered by this part, see 5.101 and 
5.203 to determine if public display and synopsis requirements apply.
* * * * *
    32. Section 13.105 is revised to read as follows:


13.105  Small business set-asides.

    (a) 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 in accordance with subpart 19.5.
    (b) Each written solicitation under a set-aside shall contain the 
appropriate provisions prescribed by part 19. If the solicitation is 
oral, however, information substantially identical to that which is in 
the provision shall be given to potential quoters.
    33. Sections 13.106, 13.106-1 and 13.106-2 are revised to read as 
follows:


13.106  Soliciting competition, evaluation of quotes, and award.


13.106-1  Purchases at or below the micro-purchase threshold.

    (a) Soliciting competition, evaluation of quotes, and award. (1) To 
the extent practicable, micro-purchases shall be distributed equitably 
among qualified suppliers.
    (2) Micro-purchases (as defined in 2.101) may be awarded without 
soliciting competitive quotations if the contracting officer or 
individual appointed in accordance with 1.603-3(b) considers the price 
reasonable.
    (3) The administrative cost of verifying the reasonableness of the 
price for purchases at or below the micro-purchase threshold may more 
than offset potential savings from detecting instances of overpricing. 
Therefore, action to verify price reasonableness need only be taken 
if--
    (i) The contracting officer or individual appointed in accordance 
with 1.603-3(b) suspects or has information to indicate that the price 
may not be reasonable (e.g., comparison to the previous price paid or 
personal knowledge of the supply or service); or
    (ii) Purchasing a supply or service for which no comparable pricing 
information is readily available (e.g., a supply or service that is not 
the same as, or is not similar to, other supplies or services that have 
recently been purchased on a competitive basis).
    (4) Prompt payment discounts should be solicited.
    (5) Clauses are not required for micro-purchases using any method 
in part 12 or 13. However, this does not prohibit the use of any clause 
prescribed elsewhere in this chapter when

[[Page 39194]]

determined necessary by the contracting officer.
    (b) Documentation. Minimize the documentation to support micro-
purchases.


13.106-2  Purchases exceeding the micro-purchase threshold.

    (a) Soliciting competition.  (1) Contracting officers shall promote 
competition to the maximum extent practicable 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. 
Solicitations shall notify suppliers of the basis upon which award is 
to be made.
    (2) If FACNET is not available, or an exemption set forth in 4.506 
applies, quotations may be solicited through other appropriate means. 
The contracting officer shall comply with the requirements of 5.101 
when not soliciting via FACNET.-
    (3) Requests for quotations should be solicited orally to the 
maximum extent practicable when FACNET is not available or a written 
determination has been made that it is not practicable or cost-
effective to purchase via FACNET. However, oral solicitations may not 
be practicable for contract actions exceeding $25,000 because of the 
synopsis requirement in 5.101. Sufficient information to permit 
suppliers to develop quotations may be incorporated into a combined 
synopsis/solicitation. In such cases, the contracting officer is not 
required to issue a separate 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. Written solicitations shall be issued for 
construction contracts over $2,000.-
    (4) If using simplified acquisition procedures and not using 
FACNET, 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 require synopsis pursuant to 5.101 and 
5.202. 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:-
    (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.-
    (5) 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.-
    (6) Contracting officers shall not limit solicitations to suppliers 
of well-known and widely distributed makes or brands (see 11.104), or 
solicit quotations on a personal preference basis.-
    (7) 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.-
    (8)(i) Each contracting office should maintain a source list (or 
lists, if more convenient). New supply sources for the list may be 
obtained from a variety of sources, including the Central Contractor 
Registration (CCR) data base (see 4.503). The list should identify 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 may be used as the basis 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 quotes or offers based on 
price alone or price and other factors (see 13.106-2(a)(1)). 
Contracting officers are encouraged to use best value. Formal 
evaluation plans, conduct of discussions, and scoring of quotes or 
offers are not required. Evaluation of other factors, such as past 
performance, 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 of and previous experience with the item or service 
being purchased, customer surveys, or other reasonable basis. When 
evaluating quotes or offers on price and other factors, the evaluation 
must be performed based on the criteria established in the 
solicitation. -
    (2) Standing price quotations may be used in lieu of obtaining 
individual quotations each time a purchase is contemplated. In such 
cases, contracting officers shall ensure that the pricing 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) Occasionally 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) Except for awards conducted through FACNET, notification to 
unsuccessful suppliers shall be given only if requested.-
    (3) If a supplier requests information on an award which was based 
on factors other than price, a brief explanation of the basis for the 
contract award decision shall be provided (see 15.1002(c)(2)).-
    (d) Data to support purchases. (1) The determination that a 
proposed price is reasonable should be based on competitive quotations/
offers. If only one response is received, 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 market research, 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, comparison to 
an independent government estimate, or any other reasonable basis.-
    (2) When other than price-related factors are considered in 
selecting the supplier (see 13.106-2(b)(1)), the contracting officer 
shall document the file to support the final award decision.-
    (3) If only one source is solicited, an additional notation shall 
be made to explain the absence of competition,

[[Page 39195]]

except for acquisition of utility services available from only one 
source.-
    (4) Documentation should be kept to a minimum. The following 
illustrate the extent to which quotation/offer information should be 
recorded:-
    (i) 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.-
    (ii) Written solicitations (see 2.101). Written records of 
solicitations/offers 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.
    (5) Purchasing offices shall retain data supporting purchases 
(paper or electronic) to the minimum extent and duration necessary for 
management review purposes (see subpart 4.8) when using simplified 
acquisition procedures.-
    34. Section 13.107 is revised to read as follows:


13.107  Solicitation forms.-

    (a) The SF 1449, Solicitation/Contract/Order for Commercial Items, 
shall be used by the contracting officer when issuing a paper 
solicitation for commercial items, except when using a combined 
synopsis/solicitation (see subpart 12.6). This form may be used for 
other than commercial items.-
    (b) Except when quotations are solicited via FACNET, other 
electronic means, or orally, the SF 1449; SF 18, Request for 
Quotations; or other agency authorized form/automated format may be 
used for other than commercial items. -
    (c) OF 336, Continuation Sheet, may be used when additional space 
is needed.-
    35. Section 13.108 is amended by revising the first sentence of 
paragraph (b) to read as follows:


13.108  Legal effect of quotations.

* * * * *-
    (b) When appropriate, the contracting officer may ask the supplier 
to indicate acceptance of an order by notification to the Government, 
preferably in writing, as defined at 2.101. * * *
* * * * *


13.109  [Amended]-

    36. Section 13.109 is amended in the first sentence by inserting 
``task or'' before ``delivery orders'', and in the beginning of the 
second sentence by removing ``Therefore,''.-
    37. Section 13.110 is amended by revising paragraphs (a)(2) and 
(a)(3); by removing paragraphs (a)(8), (a)(9), (a)(11), (a)(12), and 
(a)(13), and redesignating (a)(10) as (a)(8) to read as follows:


13.110  Federal Acquisition Streamlining Act of 1994 (FASA) list of 
inapplicable laws.-

    (a) * * *-
    (2) 40 U.S.C. 270a (Miller Act). (Although the Miller Act no longer 
applies to contracts at or below the simplified acquisition threshold, 
alternative forms of payment protection for suppliers of labor and 
material are still required if the contract exceeds $25,000.)-
    (3) 40 U.S.C. 327 to 333 (Contract Work Hours and Safety Standards 
Act).
* * * * *-
    38. Section 13.111 is amended by revising the introductory text and 
paragraph (a); removing paragraph (b) and redesignating the existing 
paragraphs (c) through (i) as paragraphs (b) through (h); revising the 
newly designated paragraph (e); in the newly designated paragraph (g) 
by removing ``and''; in the newly designated paragraph (h) by removing 
the ``period'' and inserting ``; and''; and by adding a new paragraph 
(i) to read as follows:


13.111  Inapplicable provisions and clauses.-

    While certain statutes still apply, pursuant to Public Law 103-355, 
the following provisions and clauses are inapplicable to contracts and 
subcontracts at or below the simplified acquisition threshold---
    (a) Clauses implementing Miller Act requirements in 28.102-3;
* * * * *-
    (e) 52.215-2, Audit and Records--Negotiation;
* * * * *-
    (i) 52.223-8, Estimate of Percentage of Recovered Material for 
Designated Items to be Used in the Performance of the Contract.-
    39. Section 13.202 is revised to read as follows:


13.202  Establishment of blanket purchase agreements (BPAs).-

    (a) The following are circumstances under which contracting 
officers may establish BPAs:-
    (1) There is a wide variety of items in a broad class of supplies 
or services that are generally purchased, but the exact items, 
quantities, and delivery requirements are not known in advance and may 
vary considerably.-
    (2) 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) Use of this procedure would avoid the writing of numerous 
purchase orders.-
    (b) After determining a BPA would be advantageous, contracting 
officers shall---
    (1) Establish the parameters to limit purchases to individual items 
or commodity groups or classes, or permit the supplier to furnish 
unlimited supplies or services; and-
    (2) Consider suppliers whose past performance has shown them to be 
dependable, who offer good quality at consistently lower prices, and 
who have provided numerous purchases at or below the simplified 
acquisition threshold.-
    (c) BPAs may be established with---
    (1) More than one supplier for supplies or services of the same 
type to provide maximum practicable competition;-
    (2) A single firm from which numerous individual purchases at or 
below the simplified acquisition threshold will likely be made in a 
given period; or
    (3) 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.-
    (d) BPAs should be prepared without a purchase requisition and only 
after contacting suppliers to make the necessary arrangements for---
    (1) Securing maximum discounts;-
    (2) Documenting individual purchase transactions;
    (3) Periodic billings; and-
    (4) Incorporating other necessary details.-
    (e) BPAs shall be prepared on the forms specified in 13.505(a) and 
shall not cite accounting and appropriation data (see 13.204(e)(4)).-
    (1) The following terms and conditions are mandatory:-
    (i) 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.
    (ii) Extent of obligation. A statement that the Government is 
obligated only to the extent of authorized purchases actually made 
under the BPA.
    (iii) 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

[[Page 39196]]

terms and conditions, in addition to any discounts for prompt payment.
    (iv) Purchase limitation. A statement that specifies the dollar 
limitation for each individual purchase under the BPA (see 13.204(b)).-
    (v) 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.
    (vi) 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:-
    (A) Name of supplier.
    (B) BPA number.
    (C) Date of purchase.-
    (D) Purchase number.
    (E) Itemized list of supplies or services furnished.-
    (F) 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).-
    (G) Date of delivery or shipment.-
    (vii) Invoices. One of the following statements shall be included 
(except that the statement in paragraph (e)(1)(vii)(C) 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):-
    (A) 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.-
    (B) 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 payment has not been received. 
These invoices need not be supported by copies of delivery tickets.-
    (C) When billing procedures provide for an individual invoice for 
each delivery, these invoices shall be accumulated; provided, that--
    (1) A consolidated payment will be made for each specified period; 
and -
    (2) 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.-
    (D) 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.-
    (2) If the fast payment procedure is used, the requirements stated 
in 13.303 shall be included.


13.203 and 13.203-1  [Removed]


13.203-2  [Redesignated as 13.203]

    40. Sections 13.203 and 13.203-1 are removed, and section 13.203-2 
is redesignated as 13.203 and amended in paragraph (b) by revising the 
citation ``22.305(a)(1)'' to read ``22.305(a)''.-
    41. Section 13.204 is amended by revising paragraph (b) and the 
second sentence of paragraph (c); and in paragraphs (e) introductory 
text, (e)(1), and (e)(4) by removing the words ``under BPAs''. The 
revised text reads as follows:


13.204  Purchases under Blanket Purchase Agreements.

* * * * *-
    (b)-Unless otherwise specified in agency regulations, individual 
purchases under BPAs, except those BPAs established in accordance with 
13.202(c)(3), shall not exceed $100,000.-
    (c) * * * The requirements of 13.105, 13.106-2, and subpart 19.5 
also apply to each order.
* * * * *-
    42. Section 13.302 is amended by revising paragraph (a); and in 
paragraph (b) by removing the second sentence to read as follows:


13.302  Conditions for use.

* * * * *-
    (a) Individual purchasing instruments 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.
* * * * *


13.303  [Amended]-

    43. Section 13.303 is amended by removing paragraphs (a) and 
(b)(4); by removing the designation of paragraph (b), and redesignating 
paragraphs (b)(1), (b)(2), and (b)(3) as paragraphs (a), (b), and (c).
    44. Subpart 13.4, consisting of sections 13.401, 13.402, 13.403, 
and 13.404, is revised to read as follows:
Subpart 13.4--Imprest Fund


13.401  General.

    This subpart prescribes policies and procedures for using imprest 
funds and third party drafts to acquire and pay for supplies or 
services. Related policies and regulations concerning the establishment 
of and accounting for imprest funds and third party drafts, 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 and third party drafts shall--
    (a) Periodically review and determine whether there is a continuing 
need for each fund or third party draft account established, and that 
amounts of those funds or accounts are not in excess of actual needs;-
    (b) Take prompt action to have imprest funds or third party draft 
accounts 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 or third party drafts; and-
    (2) Documentation of purchases using imprest funds or third party 
drafts, including documentation of--
    (i) Receipt and acceptance of supplies and services by the 
Government;-
    (ii) Receipt of cash or third party draft payments by the 
suppliers; and-
    (iii) Cash advances and reimbursements.


13.403  Conditions for use. -

    Imprest funds or third party drafts may be used for purchases 
when---
    (a) The imprest fund transaction does not exceed $500 or such other 
limits as have been approved by the agency head;-
    (b) The third party draft transaction does not exceed $2,500, 
unless authorized at a higher level in accordance with Treasury 
restrictions;-
    (c) The use of imprest funds or third party drafts is considered to 
be advantageous to the Government; and-

[[Page 39197]]

    (d) The use of imprest funds or third party drafts 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 or third party drafts shall 
be based upon an authorized purchase requisition, contracting officer 
verification statement, or other agency approved method of ensuring 
adequate funds are available for the purchase.-
    (b) Normally, purchases 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'' 
(or ``payment to be made from third-party draft,'' as appropriate).-
    (f) The individual authorized to make purchases using imprest funds 
or third party drafts shall---
    (1) Furnish to the imprest fund or third party draft cashier a copy 
of the document required under 13.404(a) annotated to reflect---
    (i) That an imprest fund or third party draft purchase has been 
made;-
    (ii) The unit prices and extensions;-
    (iii) The supplier's name and address; and-
    (iv) The date of anticipated delivery.-
    (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.-
    45. Section 13.501 is amended by revising paragraphs (a), (c), (d), 
and (g) to read as follows:


13.501  General.

    (a) Except as provided under the unpriced purchase order method 
(see 13.502), purchase orders generally are issued on a fixed-price 
basis. See part 12 for acquisition of commercial items.
* * * * *-
    (c) Purchase orders shall specify the quantity of supplies or scope 
of services ordered.
    (d) Inspections under simplified acquisition procedures shall be as 
prescribed in part 46. Orders generally will 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, 
or equivalent notice, shall be furnished to consignee(s) for material 
receipt purposes. Receiving reports shall be accomplished immediately 
upon receipt and acceptance of material.
* * * * *-
    (g) The contracting officer's signature (see 2.101) on purchase 
orders shall be in accordance with 4.101. Facsimile and electronic 
signature may be used in the production of purchase orders by automated 
methods.
* * * * *


13.502  [Amended]-

    46. Section 13.502 is amended by removing paragraph (b)(1) and 
redesignating paragraphs (b)(2) and (b)(3) as (b)(1) and (b)(2), 
respectively; in paragraph (c) by removing the parenthetical at the end 
of the first sentence; and at the end of the last sentence of paragraph 
(c) by removing the parenthetical ``(see 13.106-2(a))'' and inserting 
''(see 13.106-2(d)).''-
    47. Section 13.503 is amended by revising paragraph (a) to read as 
follows:


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 (see 2.101) acceptance of the purchase 
order by the contractor.
* * * * *-
    48. Section 13.505 is revised to read as follows:


13.505   Purchase order and related forms. -

    (a) The following are multipurpose forms used for negotiated 
purchases of supplies or services, delivery or task orders, inspection 
and receiving reports, and invoices:-
    (1) SF 1449 shall be used for commercial items.-
    (2) For other than commercial items, SF 1449, OF 347, or an agency 
form/automated format may be used. Agencies may print on the latter 
forms the clauses considered to be generally suitable for purchases.-
    (3) OF 348 or an agency form/automated format may be used when 
additional space is needed.-
    (b) SF 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.-
    (1) SF 44 may be used if all of the following conditions are 
satisfied:-
    (i) 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 contingency operations. Agencies may establish 
higher dollar limitations for specific activities or items.-
    (ii) The supplies or services are immediately available.-
    (iii) One delivery and one payment will be made.-
    (iv) Its use is determined to be more economical and efficient than 
use of other simplified acquisition methods.-
    (2) General procedural instructions governing the use of SF 44 are 
printed on the form and on the inside front cover of each book of 
forms.-
    (3) Since there is, for all practical purposes, simultaneous 
placing of purchase orders on SF 44 and delivery of the items ordered, 
clauses are not required for purchases using this form.-
    (4) Agencies shall provide adequate safeguards regarding the 
control of forms and accounting for purchases.


13.505-1 through 13.505-3, and 13.506   [Removed]-

    49. Sections 13.505-1, 13.505-2, 13.505-3, and 13.506 are removed.


13.507   [Redesignated as 13.506]-

    50. Section 13.507 is redesignated as 13.506.

Subpart 13.6--[Removed]-

    51. Subpart 13.6, Micro-Purchase, consisting of 13.601, 13.602, and 
13.603, is removed.

PART 15--CONTRACTING BY NEGOTIATION


15.401   [Amended]-

    52. Section 15.401 is amended in paragraph (a) by deleting the 
parenthetical ``(see Part 13)''.


15.602   [Amended]-

    53. Section 15.602 is amended in paragraph (b) by removing the 
parenthetical ``(see Part 13)''.

PART 16--TYPES OF CONTRACTS-

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

[[Page 39198]]

16.000   Scope of part.-

    This part describes types of contracts that may be used in 
acquisitions. * * *
    55. Section 16.103 is amended by revising paragraph (d)(1) to read 
as follows:


16.103   Negotiating contract type.

* * * * *
    (d) * * * (1) fixed-price acquisitions made under simplified 
acquisition procedures, * * *


16.105   [Amended]-

    56. Section 16.105 is amended in paragraph (a) by removing the 
parenthetical ``(see Part 13)''.


16.703   [Amended]-

    57. Section 16.703 is amended at the end of paragraph (c)(1)(vi) by 
removing ``(b)'' from the reference ``13.303(b)''.

PART 19--SMALL BUSINESS PROGRAMS


19.303   [Amended]-

    58. Section 19.303 is amended in paragraph (a) by removing ``in 
13.101''.


19.501   [Amended]-

    59. Section 19.501 is amended in paragraph (d) by removing ``in 
13.101''.

PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT AGENCIES


22.1003-4   [Amended]-

    60. Section 22.1003-4 is amended in paragraph (b)(4)(iii)(B) by 
removing ``22.1005 and'' in the first parenthetical.


22.1005   [Removed]-

    61. Section 22.1005 is removed and reserved.


22.1022   [Amended]-

    62. Section 22.1022 is amended in the first sentence by removing 
the words ``52.222-40, Service Contract Act of 1965, as amended--
Contracts of $2,500 or Less, or the clause at''.

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

    63. Section 23.405 is amended to revise paragraph (b)(1), and to 
amend paragraphs (b)(2) and (b)(3) by adding ``exceeding the simplified 
acquisition threshold'' following the word ``solicitations''. The 
revised text reads as follows:


23.405   Solicitation provisions and contract clause.

* * * * *
    (b)(1) The contracting officer shall insert the provision at 
52.223-8, Estimate of Percentage of Recovered Material for Designated 
Items to be Used in the Performance of the Contract, in solicitations 
exceeding the simplified acquisition threshold that contain a 
requirement for an EPA designated item.
* * * * *

PART 25--FOREIGN ACQUISITION-

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


Sec. 25.302   Policy.

* * * * *
    (b) * * * -
    (1) The estimated cost of the product or service is at or below the 
simplified acquisition threshold.
* * * * *

PART 29-TAXES


Sec. 29.402-1   [Amended]-

    65. Section 29.402-1 is amended in paragraphs (a) and (b) by 
removing the phrase ``dollar amount in 13.000'' and inserting in their 
place ``simplified acquisition threshold''.

PART 32--CONTRACT FINANCING


Sec. 32.901   [Amended]-

    66. Section 32.901 is amended by removing from the first 
parenthetical ``as defined in Subpart 13.1''.

PART 36--CONSTRUCTION AND ARCHITECT-ENGINEERING CONTRACTS


Sec. 36.701   [Amended]-

    67. Section 36.701 is amended in paragraph (c) by removing the 
phrase ``small purchases documents (see Part 13, Small Purchases and 
Other Simplified Purchase Procedures)'' and inserting in its place 
``simplified acquisitions (see part 13)''.

PART 47--TRANSPORTATION


Sec. 47.205   [Amended]-

    68. Section 47.205 is amended in paragraph (b) by removing the 
words ``at 13.101''.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


Sec. 52.203-6   [Amended]

    69. Section 52.203-6 is amended by revising the clause date to read 
``[JUL 1995]''.


Sec. 52.213-2   [Amended]-

    70. Section 52.213-2 is amended in the introductory text by 
revising the citation ``13.507(b)'' to read ``13.506(b)''.


Sec. 52.213-3   [Amended]-

    71. Section 52.213-3 is amended in the introductory text by 
revising the citation ``13.507(c)'' to read ``13.506(c)''.


Sec. 52.215-2   [Amended]-

    72. Section 52.215-2 is amended in the clause heading by removing 
``(OCT 1995)'' and inserting (AUG 1996); and in the introductory text 
of paragraph (g) by removing the words ``in FAR Part 13.''


Sec. 52.222-40   [Removed]-

    73. Section 52.222-40 is removed and reserved.


Sec. 52.227-2   [Amended]-

    74. Section 52.227-2 is amended by revising the date of the clause 
to read ``(AUG 1996)''; and in paragraph (c) by removing the phrase 
``dollar amount set forth in 13.000 of the Federal Acquisition 
Regulation (FAR).'' and inserting in its place ``simplified acquisition 
threshold at FAR 2.101.''


Sec. 52.244-2   [Amended]-

    75. Section 52.244-2 is amended in Alternate I of the clause by 
removing (JUL 1995)'' and inserting ``(AUG 1996)''; and in paragraph 
(a)(2) of Alternate I by removing the words ``in Part 13 of the Federal 
Acquisition Regulation.''


Sec. 52.247-64   [Amended]-

    76. Section 52.247-64 is amended in the clause heading by removing 
``(JUL 1995)'' and inserting ``(AUG 1996)''; in paragraph (d) by 
removing the words ``as described in FAR Part 13''; and in paragraph 
(e)(1) by removing the words ``as defined in FAR Part 13.''

PART 53--FORMS-

    77. Section 53.205--1 is revised to read as follows:


Sec. 53.205-1   Paid advertisements. -

    SF 1449, prescribed in 53.212, shall be used to place orders for 
paid advertisements as specified in 5.503.-
    78. Section 53.213 is revised to read as follows:


Sec. 53.213   Simplified acquisition procedures (SF's 18, 30, 44, 1165, 
1449, OF's 336, 347, 348).-

    The following forms are prescribed as stated in this section 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, or SF 1449, (10/95 
Ed.) Solicitation/Contract/Order for Commercial Items. SF 18 prescribed 
in 53.215-1(a) or SF 1449 prescribed in 53.212 (or approved agency 
forms/

[[Page 39199]]

automated formats) shall be used in obtaining price, cost, delivery, 
and related information from suppliers as specified in 13.107. -
    (b) SF 30 (REV. 10/83), Amendment of Solicitation/Modification of 
Contract. SF 30, prescribed in 53.243, may be used for modifying 
purchase orders, as specified in 13.503(b). -
    (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(b). -
    (d) SF 1165 (6/83 Ed.), Receipt for Cash-Subvoucher. SF 1165 (GAO) 
may be used for imprest fund purchases, as specified in 13.404(e). -
    (e) OF 336 (4/86 Ed.), Continuation Sheet. OF 336, prescribed in 
53.214(h), may be used as a continuation sheet in solicitations, as 
specified in 13.107(c).-
    (f) SF 1449, (10/95 Ed.) Solicitation/Contract/Order for Commercial 
Items prescribed in 53.212, OF 347 (REV. 6/95), Order for Supplies or 
Services, and OF 348 (10/83 Ed.), Order for Supplies or Services-
Schedule Continuation. SF 1449, OF's 347 and 348 (or approved agency 
forms/automated formats) may be used as follows: -
    (1) To accomplish acquisitions under simplified acquisition 
procedures, as specified in 13.505. -
    (2) To establish blanket purchase agreements (BPA's), as specified 
in 13.202, and to make purchases under BPA's, as specified in 
13.204(e). -
    (3) To issue orders under basic ordering agreements, as specified 
in 16.703(d)(2)(i). -
    (4) As otherwise specified in this chapter (e.g., see 5.503(a)(2), 
8.405-2, 36.701(c), and 51.102(e)(3)(ii)).


Sec. 53.216-1, 53.236-1, and 53.251   [Amended]-

    79. The following sections are amended by removing the reference 
``53.213(e)'' and inserting ``53.213(f)'':-
    a. 53.216-1; -
    b. 53.236-1(f); and -
    c. 53.251.

[FR Doc. 96-18499 Filed 7-25-96; 8:45 am]
BILLING CODE 6820-EP-P