Delegate or Designate Authority to an Ordering Official under a Blanket Purchase Agreement (BPA) or other Indefinite Delivery Contract (IDC)

[GOVCO]

Topic: Delegate or Designate Authority to an Ordering Official under a Blanket Purchase Agreement (BPA) or other Indefinite Delivery Contract (IDC) ? Which is proper?

Scenario: I have a BPA and an Indefinite-Delivery/Indefinite Quantity (IDIQ) contract for various supplies. I would like to designate ordering officials to place orders against both my BPA and IDIQ contract. The orders will range from below the MPT to above the MPT.

Questions:

1. Can a Contracting Officer delegate ordering authority below the micro-purchase threshold to a non-warranted program official? If so, how? If not, why?

2. Can a Contracting Officer designate ordering authority above the micro-purchase threshold to a non-warranted program official? If so, how? If not, why?

3. Is a contracting officer warrant necessary to be an Ordering Official under a BPA or other IDC whether above or below the micro-purchase threshold?

FAR citations referenced for scenario:

Subpart 2.1:

?Contracting officer? means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. ?Administrative contracting officer (ACO)? refers to a contracting officer who is administering contracts. ?Termination contracting officer (TCO)? refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR Chapter 1) to administrative contracting officer or termination contracting officer does not?

(1) Require that a duty be performed at a particular office or activity; or

(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.

?Micro-purchase? means an acquisition of supplies or services using simplified acquisition procedures, the aggregate amount of which does not exceed the micro-purchase threshold.

Subpart 1.602 Contracting officers.

1.602-1 Authority.

a) Contracting officers have authority to enter into, administer, or terminate contracts and make related determinations and findings. Contracting officers may bind the Government only to the extent of the authority delegated to them. Contracting officers shall receive from the appointing authority (see 1.603-1) clear instructions in writing regarding the limits of their authority. Information on the limits of the contracting officers? authority shall be readily available to the public and agency personnel.

(b.) No contract shall be entered into unless the contracting officer ensures that all requirements of law, executive orders, regulations, and all other applicable procedures, including clearances and approvals, have been met.

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.

13.303-3(a)(4)

(4) 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.

Summary Thoughts:

1. A CO is the person authorized to enter into a contract.

2. A CO?s authority is limited to that delegated to them.

3. COs must be appointed in writing on an SF 1402.

4. No appointment is required if the individual?s authority is limited to micro-purchases.

[Guest Vern Edwards]

Some agencies permit it. See Health and Human Services FAR Supplement at 301.603-70:

( Contracting Officers may designate individuals as ordering or approving officials to make purchases or place/approve orders under blanket purchase agreements (BPAs), indefinite-delivery, indefinite quantity (IDIQ) contracts, or other pre-established mechanisms. Ordering officials are not Contracting Officers.

See also, Department of Housing and Urban Development FAR Supplement at 2416.505:

(a) The Contracting Officer shall be the ordering official for all task orders when the price or cost, or any other terms, is arrived at through a negotiated process. The Contracting Officer may designate an ordering official when orders are to be placed on a firm fixed-price basis, the prices of the specific services to be performed or the supplies to be obtained under the order are set forth in the contract, and there is no negotiation of order terms. The Contracting Officer may not designate ordering officials:

(1) For contracts for services where prices are not tied to delivery of a completed service;

(2) For any contracts where discounts need to be negotiated; or

(3) In any other circumstances where adjustment of contract price or any other terms and conditions is necessary.

[GOVCO]

Some agencies permit it. See Health and Human Services FAR Supplement at 301.603-70:

See also, Department of Housing and Urban Development FAR Supplement at 2416.505:

Vern - Internal policy says, "Ordering Official: An individual identified in a BPA or IDC as one authorized to place orders under the BPA or contract. Ordering Officials do not have acquisition authority and can only place orders as specified in the BPA or contract." Is it safe to say this is left up to agency procedures? Does this violate the FAR in any way if I, as the CO, designate ordering officials under either a BPA or IDC to place orders; whether above or below the MPT?

[Guest Vern Edwards]

As a CO, I would not appoint an ordering officer without first obtaining higher level approval. Some agencies do it and some do not, but I don't think it is a decision that should be made at the CO level unless the agency's FAR supplement says it's okay, as in the examples I provided.

Be safe. Get approval.

[napolik]

Vern - Internal policy says, "Ordering Official: An individual identified in a BPA or IDC as one authorized to place orders under the BPA or contract. Ordering Officials do not have acquisition authority and can only place orders as specified in the BPA or contract." Is it safe to say this is left up to agency procedures? Does this violate the FAR in any way if I, as the CO, designate ordering officials under either a BPA or IDC to place orders; whether above or below the MPT?

Yes. No.

I recommend that you designate the ordering officer (OO) in a letter and that you confirm the appointment in the BPA or contract. Before appointing the OO, you should obtain information on the prospective OOs qualifications to assure he or she is capable of performing the OO function competently. See here for a discussion of OOs as COs: http://www.hqmc.usmc.mil/cmpg/usmc_cmpg/Co...rantProcess.htm.

Some agencies delegate ordering authority to purchase card holders. See here: https://www.navsup.navy.mil/ccpmd/purchase_...pt#911,34,Slide 34.

I also suggest that your letter set out your expectations for the ordering officer and that you inspect the OO's performance periodically, just as you review CORs.

[Guest Vern Edwards]

Be sure to tell the OO what documentation to maintain.

[GOVCO]

Thanks Vern and Napolik!

[Navy_Contracting_4]

Be sure to tell the OO what documentation to maintain.

You should also address reporting requirements into FPDS.

[napolik]

You should also address reporting requirements into FPDS.

Here is a reasonably good sample of an ordering officer appointment letter. You will need to modify it to reflect the peculiarities of your circumstances.

http://www.hqmc.usmc.mil/cmpg/usmc_cmpg/fi...er-Template.doc.

[GOVCO]

Is there a difference between designating and appointing (or delegating) an Ordering Official to merely place orders? If the order(s) have already been determined fair and reasonable by the CO at time of award, and the Ordering Official(s) are specified in the BPA or contract, along with the terms and conditions of their ordering authority, why does/should the CO issue an appointment letter?

In thise case, the CO is not delegating (or appointing) the Ordering Official to have micro-purchase authority, which is often coupled with having a purchase card. All they are doing is stating that certain individuals/positions within a specified area are authorized to place an order(s) under the BPA or contract at the stated prices.

[napolik]

Is there a difference between designating and appointing (or delegating) an Ordering Official to merely place orders? If the order(s) have already been determined fair and reasonable by the CO at time of award, and the Ordering Official(s) are specified in the BPA or contract, along with the terms and conditions of their ordering authority, why does/should the CO issue an appointment letter?

Different agencies handle appointments of cardholders and ordering officers in different ways. Some require the issuances of warrants and letters of appointments to ordering officers (e.g. Navy and Marines); others don't. In any case, I have always issued letters of appointment to ordering officers and to CORs to set out clearly for them their responsibilities. The list of responsibilities varies depending upon whether the ordering officer/ COR is handling supplies or services. After issuing a letter to an ordering officer or COR, I have always conducted reviews annually or semi-annually to assure that they are fulfilling their responsibilities.

[GOVCO]

Different agencies handle appointments of cardholders and ordering officers in different ways. Some require the issuances of warrants and letters of appointments to ordering officers (e.g. Navy and Marines); others don't. In any case, I have always issued letters of appointment to ordering officers and to CORs to set out clearly for them their responsibilities. The list of responsibilities varies depending upon whether the ordering officer/ COR is handling supplies or services. After issuing a letter to an ordering officer or COR, I have always conducted reviews annually or semi-annually to assure that they are fulfilling their responsibilities.

Thanks again Napolik. I was more concerned over whether the CO can designate, not delegate, the responsibility to place orders to Ordering Officials by indicating as such in the BPA or IDC. Currently, these individuals/positions are specified in the BPA or IDC along with any terms or conditions they must adhere to. The CO does not issue a letter of appointment, or delegate any sort of acquisition authority. I want to make sure this is not in violation of the FAR in some way. Our agency treats Ordering Officials as non-warranted individuals that do not have acquisition authority.

However, micro-purchases are issued a certificate of appointment by levels well above our CO. Those individuals, similar to our COs, are appointed in writing, and have training requirements they must meet to be appointed with this authority. The difference at our agency between an Ordering Official and someone who is delegated micro-purchase authority is the micro-purchaser holds a warrant, and the Ordering Official does not.

Just trying to figure the best possible approach moving forward as this area in our policy is currently up for review. Requiring Ordering Officials to be appointed in writing and issued a delegation of authority would be a change in culture. This may not be a bad thing as long as it is best practice to do so. Not to mention if what we have been doing, again, was in violation of the FAR.

I appreciate everyone guidance!