Vern, thank you. In FAR 1.301 (2) it states that "Subject to the authorities in paragraph © of this section and other statutory authority, an agency head may issue or authorize the issuance of internal agency guidance at any organizational level, (e.g. designations and delegations of authority, assignments of responsibilities, work-flow proceduress, and internal reporting requirements).
I view the supplement not so much a deviation, but a designation and delegation. The FAR allowed for a designation and delegation but the supplement restricted the $$$ threshold for such delegation. The FAR supplement is much more restrictive.