FAR 32.003 states, "Unless agency regulations otherwise permit, contract financing shall not be provided for purchases made under the authority of part 13."  Well, if an agency simply promulgates regulations permitting advance payment for FAR 13 Micro-Purchase, then the agency can pay in advance for a Micro-Purchase, right?  Does anyone read FAR 32.003 differently?  Does anyone know of an agency that has promulgated such regulations?

It seems so simple, so I am surprised that I cannot find an example of an agency that has promulgated such regulations.  That makes me think it cannot be done.  But then what do these words in FAR 32.003?  It says the agency can write into its regulations to "permit" otherwise.

Typically, a Micro-Purchase is for a commercial product/service.  FAR 32.201 provides that you can do advance payment if it is "appropriate or customary in the commercial marketplace."  And FAR 32.202-1 states that contract financing is allowed if it is in the best interest of the United States.  And FAR 12.210 states that "Customary market practice for some commercial products and commercial services may include buyer contract financing," and the CO "may offer Government financing in accordance with" FAR Part 32.  Note, FAR 32.202-2 still applies (the advance payment shall not exceed 15 percent of the contract price). 

14 hours ago, govt2310 said:

Well, if an agency simply promulgates regulations permitting advance payment for FAR 13 Micro-Purchase, then the agency can pay in advance for a Micro-Purchase, right?

Yes right.   It could be "regulation" or in otherwords a FAR supplement yet authoriity could also otherwise be policy by my read of the FAR at subpart 1.3.  Examples of policy and FAR supplement follows.

Examples-

 https://department.va.gov/financial-policy-documents/financial-document/chapter-01b-government-purchase-card-for-micro-purchases-duplicate/

and read 010505  Purchases Under the Micro-Purchase Threshold, at Q.   

AFARS Chapter `14-4. https://www.acquisition.gov/afars/chapter-14-prohibited-and-restricted-purchases 

 

Thanks, C Culham!  Well, I looked at your two links.  The VA policy mentions, as examples, prosthetics, subscriptions, and training.  Advance Payment for subscriptions and training is authorized by their own statutes, and they are not limited to Micro-Purchases.  I don't know if there is a statute that authorizes advance payment for prosthetics.  The Army AFARS also talks about subscriptions and training.  What I'm interested in is an example of where an agency promulgated regulations/policy saying it is ok to do advance payment for a Micro-Purchase regardless of what product/service is being purchased.  For example, something that allows a Cardholder to pay in advance for a Hotel Agreement (conference space). 

 

11 minutes ago, govt2310 said:

What I'm interested in is an example of where an agency promulgated regulations/policy saying it is ok to do advance payment for a Micro-Purchase regardless of what product/service is being purchased. 

See EPA FAR Supp., 48 CFR 1532.002. Applies to commercial items.

Thanks, Vern!  Link to EPAAR 1532.003

EPAAR 1532.003 Simplified acquisition procedures financing.

(a) Scope. This subpart provides for authorization of advance and interim payments on commercial item orders not exceeding the simplified acquisition threshold. Advance payments are payments that are made prior to performance. Interim payments are payments that are made during the order period according to a payment schedule.

(b) Procedures for micropurchases. Contracting officers may authorize advance and interim payments on orders for commercial items only at or below the micropurchase threshold.

(c) Procedures for purchases exceeding micropurchase threshold. Contracting officers must secure approval at one level above the contracting officer, on a case-by-case basis, for advance and interim payments on orders for commercial items exceeding the micropurchase threshold and not exceeding the simplified acquisition threshold. The contracting officer shall submit a recommendation for approval of financing terms, along with the supporting rationale for the action, to one level above the contracting officer. Remote simplified acquisition contracting officers (SACO) without one level above contracting officers at their locations shall forward recommendations through their OAM Advisors to secure one level above approval.

(d) Supporting rationale. Regardless of dollar value, the contracting officer shall document the file with supporting rationale demonstrating that the purchase meets the conditions of FAR 32.202-1(b)(1), (3) and (4).

(e) Administration. Regardless of dollar value, the contracting officer is responsible for ensuring that supplies or services have been delivered. The contracting officer shall document the file with evidence of receipt of supplies or services throughout the order period as appropriate to the acquisition.

(f) Clause. The contracting officer shall insert the clause at 1552.232-74, Payments - Simplified Acquisition Procedures Financing, in solicitations and orders that will provide simplified acquisition procedures financing.