Contracting Cone

Part 13 — Purchase Order

FAR 13.201 / FAR 13.203

A simplified purchase order may be used to acquire noncommercial products or services valued above the micro-purchase threshold but at or below the simplified acquisition threshold. Under RFO FAR Part 13, these procedures may be used only when no commercial product or commercial service can satisfy the agency’s needs and the supplies or services are not available from a required source.

For solicitation and award, FAR 13.201 directs contracting officers to follow the simplified request-for-quotation procedures at FAR 12.201-1. FAR 13.203 addresses award of the purchase order, including the requirement to determine the price fair and reasonable, document the procedures used, and record the number of quotations received.

Purchase orders are intended to streamline lower-dollar noncommercial acquisitions while still promoting competition to the maximum extent practicable. Whenever possible, price reasonableness should be based on competitive quotations.

 

Common Applications

  • Noncommercial products and services
  • One-time noncommercial supply or service needs
  • Minor repair parts or specialized supplies not available commercially
  • Routine noncommercial support services
  • Construction when handled with FAR Part 36 requirements, as applicable
  • Research and development when used with FAR Part 35, as appropriate

Restrictions

  • Must be for noncommercial products or services.
  • Must be above the micro-purchase threshold but at or below the simplified acquisition threshold.
  • FAR Part 13 may be used only when commercial products or commercial services cannot satisfy the agency’s needs.
  • The supplies or services must not be available from a required source.
    Requirements may not be divided merely to use simplified acquisition procedures.
  • Competition must be promoted to the maximum extent practicable.
  • Acquisitions above the micro-purchase threshold but at or below the SAT must generally be set aside for small business concerns.
  • The contracting officer must determine the price fair and reasonable and document the procedures used and number of quotations received.
  • Do not use FAR Part 12 clauses for noncommercial acquisitions; use applicable clauses prescribed elsewhere in the FAR and, when appropriate, FAR 52.213-4.

 

Pros

Cons

Streamlines lower-dollar noncommercial acquisitions. Limited to noncommercial products and services at or below the SAT.
Reduces administrative burden compared with more formal acquisition procedures. Cannot be used when a commercial product or commercial service can meet the need.
Allows efficient use of RFQs and purchase orders. Still requires competition to the maximum extent practicable and fair/reasonable price documentation.
Can support small business participation through the required set-aside rule. Not suitable for complex, high-dollar, or highly negotiated requirements.
Provides a simpler award path while preserving basic file documentation. Clauses and terms must be selected carefully because FAR Part 12 commercial clauses do not apply.

References

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