FAR 13, Over 250k

[GABE]

Hello Everyone:

 

My questions relates to FAR 13.5. Am I permitted to issue a Purchase Order over 250k, when procuring a one time commercial requirement? With the authority of 13.5, being up to 7.5 million, for commercial items/supplies, is issuing a PO over 250k acceptable? A solicitation would be posted to FBO and Award amount would be within the CO's warrant authority. Am I missing something? I don't see a reason to establish a contract, then issue a task order against the contract.

 

Thank you!

[ji20874]

Yes, the FAR allows for a purchase order under FAR Part 13 for commercial items up to $7.5 Million.

[GABE]

Do you are to elaborate?

[Vern Edwards]

@GABETwo questions:

1. Do you want to know whether you have to include commercial item contract clauses if you issue a purchase order?
2. What's up with the business about the task order? Why did you mention that?

[ji20874]

See FAR 13.501(a).  In pertinent part, "Contracting officers may use any simplified acquisition procedure in this part..."

Then, see FAR Subpart 13.3, Simplified Acquisition Methods.  Then go to 13.302, Purchase Orders.  There you go.  Purchase orders are a simplified acquisition method, and you may use any simplified procedure under FAR Subpart 13.5.  Please don't start quibbling that "procedure" in 13.501(a) does not encompass "method" in subpart 13.3.

Is anyone telling you that you cannot issue a purchase order for commercial items up to $7.5 Million under FAR Part 13?  Has that person cited chapter and verse?  That person is likely wrong, if we are talking about general principles.  If your case is a special case, well, you haven't shared that with us.

[GABE]

2 hours ago, ji20874 said:

See FAR 13.501(a).  In pertinent part, "Contracting officers may use any simplified acquisition procedure in this part..."

Then, see FAR Subpart 13.3, Simplified Acquisition Methods.  Then go to 13.302, Purchase Orders.  There you go.  Purchase orders are a simplified acquisition method, and you may use any simplified procedure under FAR Subpart 13.5.  Please don't start quibbling that "procedure" in 13.501(a) does not encompass "method" in subpart 13.3.

Is anyone telling you that you cannot issue a purchase order for commercial items up to $7.5 Million under FAR Part 13?  Has that person cited chapter and verse?  That person is likely wrong, if we are talking about general principles.  If your case is a special case, well, you haven't shared that with us.

Absolutely perfect explanation. Actually no, he hasn’t stated it’s unallowable, however, seem unfamiliar with the authority of 13.5.  Perhaps it may be one of those things a CO gets accustomed to (FAR 12 and 15)and missed the permanent authority of 13.5 several years ago, and miss the benefits of a simplified approach. 
 

Thanks again.

[GABE]

2 hours ago, Vern Edwards said:

 

 

2 hours ago, Vern Edwards said:

@GABETwo questions:

1. Do you want to know whether you have to include commercial item contract clauses if you issue a purchase order?
2. What's up with the business about the task order? Why did you mention that?

Thanks Vern for responding. 
 

1. I would assume 52.212-1, -2, and -3 would cover the required provisions and -4 and -5 would be applicable clauses? 

2. I believe the old way of doing it is anything over 250k, a contract is established, then a delivery order is executed against the contract. Not task order —> delivery order.
 

[ji20874]

33 minutes ago, GABE said:

I believe the old way of doing it is anything over 250k, a contract is established, then a delivery order is executed against the contract. Not task order —> delivery order.

I have never heard of this way.

For delivery order and task order, I recommend relying on the definitions in FAR 2.101 rather than homemade definitions.

A lot of practitioners among us carry baggage instead of knowledge.  I am glad you are seeking knowledge.  Shake off the baggage.

[Vern Edwards]

1 hour ago, GABE said:

I believe the old way of doing it is anything over 250k, a contract is established, then a delivery order is executed against the contract. Not task order —> delivery order.

I never heard of that procedure, old or new. Why would you do that? It makes no sense.

You issue the purchase order, which is the Government's offer to buy. You ask the contractor to sign it in accordance with FAR 13.302-3(a) in order to indicate its acceptance of the offer. Then you have a contract. Then the contractor performs. 

[GABE]

48 minutes ago, ji20874 said:

I have never heard of this way.

For delivery order and task order, I recommend relying on the definitions in FAR 2.101 rather than homemade definitions.

A lot of practitioners among us carry baggage instead of knowledge.  I am glad you are seeking knowledge.  Shake off the baggage.

Yes, very much so. Thank you for taking the time to respond.

[GABE]

20 minutes ago, Vern Edwards said:

I never heard of that procedure, old or new. Why would you do that? It makes no sense.

You issue the purchase order, which is the Government's offer to buy. You ask the contractor to sign it in accordance with FAR 13.302-3(a) in order to indicate its acceptance of the offer. Then you have a contract. Then the contractor performs. 

I haven’t either. That’s what was puzzling to me. I thought i was missing something, however, could not locate anything within FAR 13 that would preclude a CO from cutting a purchase order for commercial items in excess of 250k.

Thank you for your expertise.