2024: The FAR, Federal Acquisition Regulations - Part 13

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THE FAR – PART 13

2024 Webinar Series
THE FAR
FAR PART #13:
Simplified Acquisition Procedures
SPEAKER: Cobina Walkland
FIRM: Capital Edge Consulting
EMAIL: cwalkland@capitaledgeconsulting.com

FAR 13 – Simplified Acquisition Procedures
• FAR 13 Purpose
• Thresholds
• FAR 13 Policy
• FAR 13 List of inapplicable laws, provisions and clauses at or below the SAT
• FAR 13.1 General Procedures
• FAR 13.2 Actions At or Below the Micro-Purchase Threshold
• FAR 13.3 Simplified Acquisition Methods
• FAR 13.4 Fast Payment Procedure
• FAR 13.5 Simplified Procedures for Certain Commercial Products and Commercial Services

Purpose (13.002)
• To prescribe simplified acquisition procedures to:
• reduce administrative costs
• improve opportunities for small businesses to obtain a fair proportion of Gov contracts
• promote efficiency and economy in contracting
• avoid unnecessary burdens for agencies and contractors

Thresholds, per FAR 2.101:
• Simplified Acquisition Threshold (SAT):
• $250k…except for acquisitions that, as determined by the head of the agency, are to be used to
support a contingency operation….or to support response to an emergency or major disaster, the
term means $800k (inside the U.S.) and $1.5M (outside the U.S)
• For acquisitions, that, as determined by the head of the agency, are to be used to support a
humanitarian or peacekeeping operation (10 U.S.C. 3015), the term means $500K for any contract
to be awarded and performed, or purchase to be made, outside the United States.
• FAR 13.5 authorization = simplified procedures for commercial purchases equal to or above SAT,
but less than $7.5M ($15M in some instances per 13.500(c))

Thresholds, per FAR 2.101:
• Micro-Purchase Threshold:
• $10k ($2,000 for Construction and $2,500 for Service Contract Labor Standards)…except for
acquisitions that are used to support a contingency operation…or to support response to an
emergency or major disaster, the term means $20k (inside the U.S.) and $35k (outside the U.S.)
• For acquisitions from institutions of higher education or related or affiliated nonprofit entities, or from
nonprofit research organizations or independent research institutes $10k or a higher threshold, as
determined appropriate by the head of the agency; an internal institutional risk assessment; or State
law.

Policy (13.003)
• Use Simplified Acquisition Procedures to the maximum extent practicable for all purchases not
exceeding the simplified acquisition threshold (SAT) ($250k), unless requirements can be met
using
• Requires sources of supply under FAR Part 8 (e.g., Federal Prison Industries, FSS contracts,
Committee for Purchase from People Who are Blind or Severely Disables)
• Existing IDIQs
• Other established contracts
• Purchases above the micro-purchase threshold (MPT) ($10k), but at or below the SAT shall be set
aside for small business concerns
• Do not use simplified acquisition procedures if the purchase will exceed:
• the SAT; or…
• $7.5M ($15M for those in FAR 13.500(c)), including options for acquisitions of commercial
products or commercial services)

Policy (13.003)
• Do not split requirements aggregating more than the SAT or MPT into several purchases to permit
use of simplified acquisition procedures or avoid requirements that apply above MPT
• Specific statutory authority to acquire personal services may use simplified acquisition procedures
• Use the government commercial purchase card and electronic purchasing techniques to the
maximum extent practicable
• Maximize the use of electronic commerce
• Authorized individuals shall make purchases in the simplified manner that is most suitable, efficient,
and economical
• CO’s shall - promote competition to the maximum extent practicable, establish due dates for RFPs,
consider all quotes that are received timely and use innovative approaches in awarding contracts

List of inapplicable laws at or below the SAT (13.005)
• 10 U.S.C. 983, Institutions of Higher Education that Prevent ROTC Access or Military Recruiting on
Campus: Denial of Grants and Contracts from DoD, Dept of Education, and Certain Other
Departments and Agencies
• 10 U.S.C. 3321(b) and 41 U.S.C. 3901(b) (contract clause regarding contingent fees)
• 10 U.S.C. 3841 and 41 U.S.C. 4706 (authority to examine books and records of contractors)
• 10 U.S.C. 4655 and 41 U.S.C. 4704 (prohibition on limiting subcontractors direct sales to the United
States)
• 22 U.S.C. 2593e(c)(3)(b) Measures Against Persons Involved in Activities that Violate Arms Control
Treaties or Agreements with the United States. (The requirement to provide a certification)
• 31 U.S.C. 1354(a) Limitation on Use of Appropriated Funds for Contracts with Entities Not Meeting
Veterans' Employment Reporting Requirements
• 41 U.S.C. 8102(a)(1) (Drug-Free Workplace), except for individuals.

List of inapplicable provisions and clauses at or below the SAT (13.006)
• 52.203-5, Covenant Against Contingent Fees
• 52.203-6, Restrictions on Subcontractor Sales to the Government
• 52.203-7, Anti-Kickback Procedures
• 52.215-2, Audits and Records-Negotiation, except as used with its Alternate I, when using funds
appropriated or otherwise made available by the American Recovery and Reinvestment Act of 2009
(Pub. L. 111-5)
• 52.222-4, Contract Work Hours and Safety Standards-Overtime Compensation
• 52.223-6, Drug-Free Workplace, except for individuals
• 52.223-9, Estimate of Percentage of Recovered Material Content for EPA-Designated Items

FAR 13.1 General Procedures
• Small business concerns are provided the maximum practicable opportunities
• Use standing price quotes if pricing is current and the Gov obtains max discounts prior to award
• Promote competition to the maximum extend practicable
• Publicize contracting opportunities
• Solicit competition
• Evaluate quotations and offerors in accordance with solicitation
• Determine and document price is fair and reasonable
• Document award

FAR 13.2 Actions At or Below the MPT
• More relaxed requirements
• Preferred method of payment = Governmentwide commercial purchase card
• Micro-purchases do not require provisions or clauses (except as provided at 13.202 and 32.1110);
however, this does not prohibit the use of any clause
• May be awarded without soliciting competitive quotations
• Administrative cost of verifying the reasonableness may more than offset potential savings
• Need to verify price reasonableness only if: suspects price may not be reasonable or purchasing
supply/service with no comparable pricing information readily available
• If award was made to other than the low quoter, documentation to support the purchase may be
limited to identification of the solicited concerns with an explanation for the award decision

FAR 13.3 Simplified Acquisition Methods
• Governmentwide commercial purchase card (13.301)
• Purchase orders (13.302)
• Blanket Purchase Agreements (BPAs) (13.303)
• Imprest funds and third party drafts (13.305)
• SF 44, Purchase order-invoice-voucher (13.306)
• Forms (13.307)

Governmentwide commercial purchase card (13.301)
• Authorized for purchases of supplies, services or construction
• Allows for direct purchase or payment by Government
• Contracting Officers (and others with delegated authority per FAR 1.603-3) may use these cards
• May be used to:
• Make micro purchases (but not limited to)
• Place a task or delivery order (when authorized)
• Make payments (when contractor agrees to this method)

Purchase orders (13.302)
• Generally issued on a fixed-price basis
• Obtain contractor acceptance via binding contract (written acceptance of PO and
terms/performance of work)
• Can be unpriced, when the price is not established at time of issuance of the order and the
purchase is for repairs to equipment requiring disassembly to determine the nature and extent of
repairs, material available from only one source and for which cost cannot readily be established or
supplies or services for which prices are known to be competitive but exact prices are not known.
• Shall incorporate all clauses prescribed
• Termination, if needed, shall occur in accordance with applicable regulations
• FAR 12.403 and 52.212-4 for commercial
• FAR 49 or 52.213-4 for other than commercial

Purchase orders (13.302)
• Shall include:
• Quantity of supplies or scope of services;
• Delivery date or PoP;
• Inspection requirements (generally destination)
• F.O.B destination for supplies to be delivered within the U.S, except Alaska or Hawaii, unless
there are valid reasons otherwise; and
• Trade and prompt payment discounts that are offered

Blanket Purchase Agreements (BPAs) (13.303)
• Simplified method of filling repetitive needs for supplies or services by establishing “charge
accounts”
• Avoids issuing numerous purchase orders
• May be established with more than one supplier for supplies or services of the same type to provide
maximum practicable competition, a single firm from which numerous individual purchases at or
below the SAT will likely be made in each period; or FSS contractors
• Individual purchases cannot exceed the SAT (exceptions = FSS contractors, commercial
procurements)
• BPA should not be used to avoid competition or small business requirements
• Contracting Officer shall review BPA at least annually

Blanket Purchase Agreements (BPAs) (13.303)
• Mandatory T&Cs must include:
• Description of agreement
• Extent of obligation
• Purchase limitation
• Individuals authorized to purchase under BPA
• Delivery tickets
• invoices

Imprest funds and third party drafts (13.305)
• Less common and need to be periodically reviewed to determine if there is a continuing need
• Imprest fund: 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.
• Sometimes referred to as a “petty cash” account
• Does not exceed $500 (or other limits as approved by agency)
• Third party draft: an agency bank draft, similar to a check, that is used to acquire and to pay for
supplies and services.
• See Treasury Financial Management Manual, Section 3040.70.
• Does not exceed $2,500 (unless authorized at a higher level by Treasury restrictions)

SF 44, Purchase Order-Invoice-Voucher (13.306)
• Multipurpose pocket-size PO form design for on-the-spot, over-the-counter purchases of supplies
and nonpersonal services (can also be used as a receiving report, invoice, and public voucher)
• Only used if:
• At or below the MPT (exception = unusual and compelling urgency or in support of contingency
operations and agencies may establish higher dollar limitations); AND
• The supplies or services are immediately available; AND
• One delivery and one payment will be made; AND
• It is more economical and efficient than use of other simplified acquisition procedures.
• Clauses are not required for purchases using this form
• Various versions of form depending on product/service type
• SF 1449, SF 18, OF 336, OF 348, SF 30, SF 44, SF 1165)

FAR 13.4 Fast Payment Procedure
• Allows payment under limited conditions prior to the Government’s verification that supplies have
been received and accepted
• Individual purchasing instruments do not exceed $35k (executive agencies may permit higher)
• Occurs when there is a lack of adequate communications (physically) between Government
receiving /disbursing activities to make timely payment based on evidence of Government
acceptance.
• Title to the supplies passes to the Government upon delivery to a common carrier for shipment to
destination or upon receipt by the Government if the shipment is not via Post Office/common carrier.
• Supplier agrees to repair supplies not received, damaged, or not conforming to purchase
requirements
• A FFP award or a delivery order for supplies
• Controls in place to ensure: Evidence of contractor performance under fast payment purchases,
timely feedback to the CO re: deficiencies and identification of suppliers who abuse the fast
payment procedure

FAR 13.5 Simplified Procedures for Certain Commercial Products and Commercial Services
• Authorizes use of simplified procedures for purchases greater than the SAT but not exceeding
$7.5M ($15M for acquisitions as described in 13.500(c), including options)
• FAR 15.500(c) acquisitions:
• A contingency operation; to facilitate the defense against or recovery from cyber, nuclear,
biological, chemical, or radiological attack
• A request from the Secretary of State or the Administrator of the United States Agency for
International Development to facilitate provision of international disaster assistance
• To support response to an emergency or major disaster

FAR 13.5 Simplified Procedures for Certain Commercial Products and Commercial Services
• Maximizes efficiency and economy and minimizes burden and administrative costs
• Purchases should still be conducted per FAR Part 12
• Need to reasonably expect, based on market research, that offers will include ONLY commercial
products and services
• Provides flexibility for Contracting officers (specified dollar thresholds)
• May use any simplified acquisition procedure in FAR Part 13, subject to any specific dollar limitation
applicable to the procedure
• File documentation must include:
• Written description of procedures utilized
• Number of offers received
• Explanation of the basis for award decision
• Approved sole source justification documentation as described in FAR 13.501(a)

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2024: The FAR, Federal Acquisition Regulations - Part 13

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2024: The FAR, Federal Acquisition Regulations - Part 13