Program Policies amp Directives Sheila McGlynn amp Denise Reich Office of the Under Secretary of Defense OUSD Acquisition amp Sustainment AampS Used to be ATampL Defense Procurement and Acquisition Policy DPAP ID: 760671
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Slide1
Governmentwide Commercial Purchase Card (GPC) Program Policies & Directives
Sheila McGlynn & Denise Reich
Office of the Under Secretary of Defense (OUSD)
Acquisition & Sustainment (A&S)—
Used to be AT&L
Defense Procurement and Acquisition Policy (DPAP)—
Soon to be Defense Pricing and Contracting (DPC)
Program Development and Implementation (PDI)
August 2018
Slide2Course Description
This session provides an overview of topical issues related to Department of Defense (DoD) policies, procedures and directives.
Slide3Acronyms
CLIN Contract Line Item Number
CO Commanding Officer
DoD FPI Federal Prison Industries (also known as UNICOR)
FMR DoD Financial Management Regulations
GPC
Governmentwide
Commercial Purchase Card
Guidebook DoD Charge Card Guidebook for Establishing & Managing Purchase, Travel & Fuel Card Programs - Effective 1 October 2017
New Release Dated January 24, 2018
IOD Insights On-Demand
JAM Joint Appointments Module
MPT Micro-Purchase Threshold
PAT Program Audit Tool
PBIS Procurement Business Intelligence Service
PCOLS Purchase Card On Line System
PCOM Purchase Card Oversight Module
PIEE Procurement Integrated Enterprise Environment
SAM System for Award Management
https://www.sam.gov/portal/public/SAM/#1
SAP/SAT Simplified Acquisition Procedures / Simplified Acquisition Threshold
STRL Science and Technology Reinvention Laboratories
Ts&Cs
Terms and Conditions
WAWF Wide Area Workflow
Slide4Agenda
SmartPay® 3 Task Orders and Transition Tasks
DoD Reporting Update
Strategic Sourcing Update
SP3 and Life After PCOLS and PAT
DoD PIEE Hierarchy
JAM
GPC Oversight Module
MPT Class Deviation Updates
Slide5Army/Air Force/Defense Agencies (A/AF/DA)
and Navy
SmartPay® (SP) 3 Task Orders
Slide6Status of Smart Pay 3 Army/Air Force/Defense Agencies and Navy Task Orders
U.S. Bank competitively awarded two DoD Tailored Task Orders (TTO) under GSA master contract GS-36-F-GA001:
A/AF/DA awarded on 21 June 2018
Navy awarded on 12 July 2018
Mastercard selected as Card Association under both TTOs
Mastercard/Insights on Demand (IOD) selected as Data Mining (DM) solution under both TTOs
DM continues in Purchase Card On-Line System [A/AF/DA] and Program Audit Tool [Navy] until end of SP2 [29 November 2018]
IOD to be used for DM Department-wide throughout SP3 transactional period [beginning 30 November 2018]
Slide7Requirements under SP 3 A/AF/DA and Navy Task Orders
Both TTOs have:
13 year maximum transactional period of performance (4 year base period; three 3 year option periods)
SP2 Accounts no longer Valid: November 29 @ 11:59pm
SP3 Accounts Active: November 30 @ 12:00am
Tailored refund calculations
Tailored DoD Procurement Integrated Enterprise Environment (PIEE)/Joint Appointment Module (JAM) requirements
Tailored financial management and other system interface requirements
Tailored reporting requirements
Tailored Electronic Access System
Tailored Data Mining (DM) requirements
DPAP worked with Services to review data mining rules to determine which to include in SP3 to improve identification of infractions
Included selected business rules in A/AF/DA and Navy SP 3 task orders
Established semi-annual governance process for reviewing/updating rules as necessary
Slide8How Refunds Will Change Under SmartPay 3 Task Orders
SP 2
Complex calculations to account for separate sales and productivity refunds
SP 3:
Combined refund rates, taking into account sales volume and speed-to-pay
Separate “Standard” and “Large Ticket” transaction refund CLINs
Lower SP 3 refunds will be paid for Large Ticket transactions, based on applicable lower interchange fees. Master contract does not provide a dollar threshold for large ticket items. Currently, for Mastercard, large ticket transactions apply to non-travel card transactions that provide Level 3 (Line Item detail/SKU) data and are over $7,255 for domestic US transactions.
Speed-to-pay accounted for via refund basis points “day-banding” for all Standard and Large Ticket Transaction CLINs
Anticipated that throughout SP 3 transactional period, DPAP will require components to certify the accuracy of their Quarterly refund statements from US Bank.
Slide9How Refunds Will Change Under SmartPay3 Task Orders (cont)
Day-bands for Standard and Large Ticket Transaction CLINs:*A/AF/DA TTO: 0 – 8 Calendar Days** 9 – 19 Calendar Days 20 – 30 Calendar Days 31+ Calendar Days Navy TTO: 0 – 8 Calendar Days** 9 – 15 Calendar Days 16 – 22 Calendar Days 23 – 29 Calendar Days 30 – 43 Calendar Days 44 – 50 Calendar Days 50+ Calendar Days *Separate basis points for each day band applicable for standard versus large ticket transactions.**Calendar days from statement date, with clock starting with accessibility of invoice in EAS/delivery of the file to ERP
Note: SP3 refund process has no effect on reconciliation and certification process/timeline:
1)
CH must reconcile and certify monthly Statement of Account -- best practice: within 3 business days of billing cycle end date to maximize refunds and prevent interest penalties.
2) AO must promptly review and certify CH statements of account -- best practice: within 5 days of the billing cycle end date.
Slide10SP 3 Transition Tasks
for Program Officials
Slide11Prior to 29 November 2018
Card and convenience check holders:
Follow agency policy for disposing of GSA SP2 cards and unused convenience checks
Cancel all recurring charges on SP2 card
Promptly reconcile all transactions
Adhere to Charge Card Guidebook and any component record retention policies
Activate new account following card receipt
Complete all required training
Adhere to forthcoming DPAP policy memo on orderly shutdown of SP2 accounts
Submit any dispute or fraud information to US Bank
AO and A/BOs:
Complete all required training
Ensure all accounts are reconciled promptly
Slide12Prior to 29 November 2018
A/OPCs:
In accordance with forthcoming DPAP instructions, go into Access Online to:
Validate SP2 account Information
Validate user ID Information
Ensure financial managers validate accounting Information
Confirm TBR hierarchy – moving to all new managing and cardholder accounts allows for reorganization for efficiency or functionality
Designate SP2 accounts for replication [ie: retention in SP3] or termination
Record SP3 card delivery instructions if desired
Enter “home organization” and “role location” Department of Defense Activity Address Codes (DoDAAC)
ASAP work with your Group Administrator (GAM) to validate your PIEE hierarchy
If you don’t yet have one, create WAWF/PIEE account
Complete all required training
Slide13DoD Reporting Update
Slide14DoD Reporting Update
Issued “DoD GPC Disciplinary Category Definitions Guidance Memo” in July 2017 to eliminate reporting inconsistencies within the Department. Memo:Provided interim definitions and examples of categories (abuse, internal fraud, misuse, and delinquency [violations], administrative discrepancy, and external fraud)Required Quarterly and Semi-annual reporting to OMB on the 4 violation categoriesUpdates:DPAP’s Quarterly & Semi-Annual Reporting Guidance updated based on OMB’s 2017 memo M-17-26, “Reducing Burden for Federal Agencies by Rescinding and Modifying OMB Memoranda” Memo made Quarterly Statistical Reporting “optional and not required to be submitted to OMB” As memo requires DoD “to maintain statistical and narrative information for their own use and management of their charge card program,” DPAP still collects Quarterly and Semi-Annual data from components, but no longer forwards data to OMBUnder the SP3 transactional period, components will be required to report to DPAP on all 6 disciplinary categories, beginning:Quarterly – FY19 Q2 Semi-Annual – FY19 Q1-Q2 Work continues to automate DoD Reporting within Procurement Business Intelligence Service
Above actions responsive to DoD IG Audit D2017-D000CL-0045
Slide15Strategic Sourcing Update
Slide16Strategic Sourcing Update
In response to GAO-16-526, “GOVERNMENT PURCHASE CARDS: Opportunities Exist to Leverage Buying Power,” dated May 19, 2016:
DPAP issued September 2016 guidance memorandum entitled "Opportunities to Leverage Buying Power with Purchase Cards" requiring DoD Components to implement GAO's recommendations. Actions taken to implement memo:
DFARS 213.301 updated to include DPAP memo requirements; went into effect 1 October 2017
During 2017, components conducted purchase card spend analysis, identified possible savings, and made broader applicability determinations; Services briefed DPAP Acting Director on findings
Purchase card strategic sourcing language drafted by DPAP and forwarded to Defense Contract Management Agency for incorporation into Program Management Review Manual; Manual updated in April 2018
Slide17Strategic Sourcing Update (cont)
Based on actions taken, DPAP memo “Recommendation Closure Request on GAO report, GAO-16-526, ‘Government Purchase Cards: Opportunities Exist to Leverage Buying Power,’ May 19, 2016” signed June 27, 2018, recommended closure of report recommendations pertaining to DoD GPC. Actions for Components going forward:
Components shall periodically analyze purchase card transaction data and spend patterns to identify opportunities to obtain savings
Components shall periodically determine the feasibility for broader application of these efforts across the agency
Be prepared to address the following during PMRs:
Has the agency periodically analyzed purchase card transaction data and spend patterns to identify opportunities to obtain savings?
Has the agency periodically determined the feasibility for broader application of these efforts across the agency?
Slide18SP3 and Life After PCOLS and PAT
Slide19Procurement Integrated Enterprise Environment (PIEE)
WAWF
rebranded as
PIEE
Adding
GPC
Applications
Slide20PIEE Overview
PIEE Overview
Slide21SmartPay® 2
»
SmartPay® 3 System Transition
EASPCOLS
PCOMEASIOD
Oversight
EASPAT
»
PCOLSEAS
PIEE
System Access
EAS
»
PCOLS
EAS
Account Issuance & Maintenance
EAS
»
Delegation & Appointment
TBR
PIEETBR
Hierarchy
EMMATBR
»
PCOLSEAS
PIEEPBISEASDM
Reporting
PATEAS
»
PBIS
EAS
Archive
EAS
DMDC
»
Invoice Certification
& Payment
EAS
ERPs
Accounting Systems
»
»
PCOLS
EAS
IOD
Data Mining
PAT
»
Paper
JAM
»
EAS
ERPs
Accounting
Systems
Slide22Getting Ready for The PIEE Hierarchy
All Component’s have an existing PIEE HierarchyAlready agreed to and “fixed” through Level 3Defense Agency GPC Level 3s moved to Level 2 Component Program Managers (CPMs)Component Group Administrators (GAMs) “own” and are responsible for coordinating changes at Level 4 and belowU.S. Bank required to report up the PIEE hierarchyAll A/OPCs must work with their local PIEE GAM now to: Understand their Component’s hierarchyIdentify Home Organization DoDAACs for the organizations they supportSP3 Transition offers A/OPCs the opportunity to evaluate and update their TBR Hierarchies to support reporting needsEngage your Component Financial Manager and U.S. Bank Customer Relationship ManagerFinalize changes NLT 15 September to support SP3 Card Issuance
Slide23DoD Activity Address Code (DoDAAC)
Accurate DoDAAC entry by all users during PIEE registration is ESSENTIAL for successful deployment.A DoDAAC is a DoDAAC, but one DoDAAC can be flagged to identify its different attributes (e.g., Procurement, Ship to, Funding) For GPC Program purposes there are 3 DoDAAC “types” to focus on:Home Organization DoDAAC – “I physically sit here”Role Location DoDAAC – “I perform my duties here”Authority Location DoDAAC – “I got my appointment from here”All delegations of authority must emanate from an organization that has procurement authority, but PIEE will not enforce this until a later date.
Hi! I’m Dave.
And I’m Wanda. We’re going to help you understand DoDAACs.
Slide24DoDAACs
Slide25Getting Ready for The Joint Appointments Module (JAM)
Will be used to issue GPC Delegation of Authority & Appointment Letters and Certifying Officer AppointmentsCH single purchase limit in the EAS will be capped by JAM delegated limitAll A/OPCs must: Request PIEE Access (~45% of A/OPC already have PIEE accounts)Work with their local PIEE GAM to establish GPC access protocolsIdentify Home Org DoDAACs1 for each organization to which they provide GPC accountsIdentify the Home Org DoDAAC2 for person who will sign their GPC Delegation or Appointment Letter PCOLS Active Account Data will be used to assist with migrationAccount and Training Data
Phase 1
Component PM , Oversight A/OPC (With or Without Delegating Authority), A/OPC (With or Without Delegating Authority)Phase 2Approving Official, A/BO, Cardholder, GPC Certifying Officer
1 This is
YOUR
Role Location DoDAAC
2 This is
YOUR
Authority Location DoDAAC
Slide26GPC Data Mining and Oversight
Transactions will be referred to the A/BO daily Timely completion of Questionnaire requiredDelayed responses will result in automatic account suspensionsA/OPC required to: Validate review 100% of DM cases and enter corrective action taken for all cases of improper GPC use. Work with Supervisors as appropriate.Open DM cases for all improper GPC use otherwise identified. Supports automated GPC “Violations” Reporting. Brief Commander every 6 months to obtain signature of Semi-Annual PMR ReportOversight A/OPCs required to: Review Closed Cases, and Monthly and Semi-Annual PMR ReportsBrief Commander every 6 months to obtain signature of Semi-Annual PMR ReportCPM required to:Review Closed Cases, and Monthly and Semi-Annual PMR ReportsBrief Commander every 6 months to obtain signature of Semi-Annual PMR Report
Slide27Planned GPC Oversight Process
Policy Not Yet Finalized
Slide28Procurement Management Reviews / Internal Control Reviews / IG Reviews
Purpose
:
Detect/Prevent Improper GPC Use
Document Corrective Actions
Players
:A/BOs & AOsA/OPCsSupervisorsProcess:Insights On-Demand (IOD) Flags Transactions for ReviewA/BOs Review & Close CasesA/OPC Verify All A/BO Results & Document Corrective ActionSupervisor & A/OPC collaborate to take Personnel Action As NecessaryProduct:Closed Cases / Corrective Action
Purpose:Document Oversight ActionsReview Internal ControlsEnsure DM Case ClosureEngage SupervisorsPlayers:SupervisorsA/OPCsOA/OPCsProcess:A/OPC: Verifies 100% DM Case ClosureReviews Key Internal ControlsDocuments Findings (+ / -)OA/OPCReviews A/OPC SubmissionsSupervisorsReviews Summary DataAffirm Accounts NeededProduct:Monthly PMR Report
Purpose:Ensure Leadership Insight Enable Organizational / Strategic Decision MakingPlayers:A/OPCsOA/OPCsCPMsCommanding Officers (COs) / Procurement Leads / SPEs DPAPProcess:COs at Each Level Receive Program Briefings from their A/OPCs, OA/OPCs or CPMs and Sign-OffA/OPCs, OA/OPCs or CPMs Affirm Completion CPMs Provide Brief to DPAPProduct:Semi-Annual PMR Report
Open Cases Result In Automatic Account Suspensions
Quarterly Data Mining Case Validation Reviews
Daily DM Case Reviews
Semi-Annual PMRs
Monthly PMRs
Slide29Planned Quarterly DM Case Validation Reviews
Purpose:
Independent validation that A/BO, AO and A/OPC’s are doing due diligence when conducting GPC DM Case Reviews and Documenting Corrective Action Taken (i.e., Confirm/Refute case disposition status)
Players:
GPC Subject Matter Experts (SMEs) identified by OSD & Components to serve for fixed terms
Process:
A system-generated, statistically significant random sample of closed DM Cases will be reviewed by a SMEs quarterly
Each improper/questionable case closure finding will be referred back to the Component Program Manager (CPMs) for action (e.g., refer back to A/OPC or perform independent review).
Product
A/OPCs, OA/OPCs and CPMs will address resolution for improper/questionable case closure findings during Semi-Annual PMR Briefings.
Slide30Micro-Purchase Threshold
Class Deviation Update
2018-O0013 of 4/13/2018
2017-O0007 of 9/1/2017
2017-O0006 of 7/21/2017
and
21 July 2017 GPC Policy Memo
Slide31Class Deviation 2018-O0013
Issued 13 April 2018Creates $10K (or higher) “Higher Ed” MPT - Supplies or services from:Institutions of higher educationRelated or affiliated nonprofit entities Nonprofit research organizationsIndependent research institutesConstruction and Services thresholds remain in effect:Construction1 ($2,000)Services2 ($2,500) Changes the thresholds for small business set-aside from “$3,500” to "the micro-purchase threshold“ (FAR Parts 13 & 19)NOTE: Cardholders still must comply with FAR Part 8 FPI regulatory requirements between $3,500.01 and the MPT
Footnotes:For construction acquisitions subject to 40 U.S.C. chapter 31, subchapter IV, Wage Rate RequirementsFor services acquisitions subject to 41 U.S.C. chapter 67, Service Contract Labor Standards
This is for high tech purchases, not SF-182 Training
Slide32Federal Prison Industries (AKA: UNICOR)New GPC Procedures
March 13, 2016 FPI Board of Directors $3,500Blanket Waiver Remains in Effect*
* See https://www.unicor.gov/MandatorySourceExceptions.aspx
Slide33FPI Purchasing Decision Framework
Indicates CH Option
CH
2A
Market Research indicates comparable?
KO
2B
authorizes Alternate Source?
Mandatory
FPI Item?
1
Purchase from FPI
CH Receives Requirement
Valued Above $3,500
Waiver Requested & Granted by FPI?
Y
N
Purchase following Micro-Purchase Procedures.
If soliciting offers, FPI must be included.
Y
N
Y
Follow Existing
Micro-Purchase Procedures
Make Purchase Following Existing
Micro-Purchase Procedures
Y
N
N
Slide34FPI Purchasing Decision Framework - Notes
Check FPI Web Page to determine if:
DoD Purchases of Mandatory FPI Supplies in FSCs for which FPI's share of the DoD Market is greater than 5%
https://www.unicor.gov/MandatorySourceExceptions.aspx#dod
Item that FPI is the mandatory supplier
https://www.unicor.gov/sopAlphaList.aspx
A) CH market research indicates; and
B) KO issues a written determination the FPI item is not comparable to supplies available from the private sector that best meet the Government’s needs in terms of price, quality, and time of delivery . [FAR 8.602]
Slide35MPT Class Deviation
Guidance & Implications
Slide36Dod GPC Guidance
The Guidebook requires spending limits be set considering historical spending patterns to minimize DoD’s Charge Card violation riskRaise and then lower Single Purchase Limits for CHs who rarely (or seasonally) make purchases requiring the higher MPTOnly grant authority to CHs who: are likely to require ithave been trained to follow FPI purchasing and waiver request procedures [FAR 8.605]CH Single Purchase Limits can never exceed the CH’s delegated authorityNew Delegation Letters must be issued and countersigned as requiredBasic Research Program GPC micro-purchases valued above $5,000 must be made on a CH account issued solely for that purposeAnticipate Higher Ed MPT will not be used for GPC purchases because Ts & Cs will be requiredTo comply with DFARS 213.270 if HCA authorized “higher MPT”, the GPC must be specified as the method of payment and WAWF Receiving Report utilized to document acceptance
All CH’s Single Purchase LimitsShould NOT Be Automatically Increased
Dedicated Special Use Account Required
Slide37Summary of Changes from Class Deviations 2017-O0007 to 2018-O0013 Changes
Adds subparagraph (5) to FAR 2.101 MPT Definition – Aluthorizes$10K (or higher) MPT for acquisitions of supplies or services from institutions of higher education (20 U.S.C. 1001(a)) or related or affiliated nonprofit entities, or from nonprofit research organizations or independent research institutesDFARS 218.271 further delegates “Head of the Contracting Activity” authority to increase this MPT— consistent with clean audit findings, an internal institutional risk assessment, or state lawChanges the Small Business Set-Aside thresholds from fixed values to "micro-purchase threshold“ and “simplified acquisition threshold” in FAR Parts 13 & 19Eliminates the GPC small business set-asides requirements between $3,500 and $5,000 that resulted from the FY 17 NDAARaises the DoD “General" SAT from $150,000 to $250,000Adds “to support 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 pursuant to 22 U.S.C. 2292 et seqRaises the “Humanitarian and Peace Keeping” SAT to $500K outside the U.S.
This is not for use with
SF-182 Training
Slide38Simplified Acquisition Threshold
CategoryInside U.S.Outside U.S.General DoD SAT$250,000Acquisitions of supplies or services that, as determined by the head of the agency, are to be used to: Support a Contingency OperationFacilitate defense against or recovery from the following types of attacks:CyberNuclearBiologicalChemicalRadiologicalSupport 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 pursuant to 22 U.S.C. 2292 et seq.Support a Response to: EmergencyMajor Disaster $750,000$1,500,000Support a Humanitarian or Peacekeeping Operation (10 U.S.C. 2302) N/A$500,000
Slide39How Does the SAT Impact the GPC Program
Contingency Contracting Officers may “use the GPC” up to:
$750K Inside the U.S.
$1.5M Outside the U.S.
DFARS 213.301 (3)
(3)
A
contracting officer
supporting a contingency operation as defined in 10 U.S.C. 101(a)(13) or a humanitarian or peacekeeping operation as defined in 10 U.S.C. 2302(8) also may use the Governmentwide commercial purchase card to make a purchase
that exceeds the micro-purchase threshold but does not exceed the simplified acquisition threshold
, if--
(i) The supplies or services being purchased are immediately available;
(ii) One delivery and one payment will be made; and
(iii) The requirements of paragraphs (2)(i) and (ii) of this section are met.
Slide40DFARS 213.301(2) – GPC Use Outside the U.S.
(2) An individual appointed in accordance with 201.603-3(b) also may use the Governmentwide commercial purchase card to make a purchase that exceeds the micro-purchase threshold but does not exceed $25,000, if— (i) The purchase— (A) Is made outside the United States for use outside the United States; and (B) Is for a commercial item; but (C) Is not for work to be performed by employees recruited within the United States; (D) Is not for supplies or services originating from, or transported from or through, sources identified in FAR Subpart 25.7; (E) Is not for ball or roller bearings as end items; (F) Does not require access to classified or Privacy Act information; and (G) Does not require transportation of supplies by sea; and (ii) The individual making the purchase— (A) Is authorized and trained in accordance with agency procedures; (B) Complies with the requirements of FAR 8.002 in making the purchase; and (C) Seeks maximum practicable competition for the purchase in accordance with FAR 13.104(b).
DFARS does not add these to the MPT Definition
Slide41What’s Happening with the MPT?
Slide42CURRENT MICRO-PURCHASE THRESHOLDS Threshold 1 Non-DoD Federal-wide Open Market Micro-Purchase $10,000 2 DoD GPC Open Market Micro-Purchase (General) $5,000 3 DoD GPC Open Market Micro-Purchase (STRLs and Basic Research Programs) $10,000 4 Federal-wide Higher Education Open Market Micro-Purchase $10,000 or Greater5 GPC Construction $2,000 6 GPC Service Contract Labor Standard Services $2,500 7 GPC Contingency (Inside US) $20,000 8 GPC Contingency (Outside US) $30,000
Micro-Purchase Thresholds
Slide43“Contingency Contracting” Micro-Purchase Thresholds
CategoryInside U.S.Outside U.S.Acquisitions of supplies or services that, as determined by the head of the agency, are to be used to: Construction subject to 40 U.S.C. chapter 31, subchapter IV, Wage Rate Requirements (Construction) (41 U.S.C. 1903)$2,000Support a Contingency OperationFacilitate defense against or recovery from the following types of attacks:CyberNuclearBiologicalChemicalRadiologicalSupport 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 pursuant to 22 U.S.C. 2292 et seq.Support a Response to : EmergencyMajor Disaster $20,000$30,000Support a Humanitarian or Peacekeeping Operation (10 U.S.C. 2302) Not Addressed
Slide44FY 2019 National Defense Authorization Act Conference Report
SEC. 821. INCREASE IN MICRO-PURCHASE THRESHOLD APPLICABLE TO DEPARTMENT OF DEFENSE.IN GENERAL.—Section 2338 of title 10, United States Code, is amended by striking: ‘‘Notwithstanding 5 subsection (a) of section 1902 of title 41, the micro-purchase threshold for the Department of Defense for purposes of such section is $5,000’’ and inserting: ‘‘The micro-purchase threshold for the Department of Defense is $10,000’’.NOTE: Removes STRL and Basic Research Programs language that served as a ceilingConvenience Check Threshold is $5,000
PENDING CONGRESSIONAL
ACTION
Slide45Anticipated FY 2019 Micro-Purchase Thresholds
POSSIBLE FUTURE MICRO-PURCHASE THRESHOLDS Threshold GSA e-Commerce Portal (not FedMall or GSA Advantage) $25,000
ANTICIPATED FY19 MICRO-PURCHASE THRESHOLDS Threshold 1Federal-wide Open Market Micro-Purchase $10,000 2 Federal-wide Higher Education Open Market Micro-Purchase $10,000 or Greater3 GPC Construction $2,000 4 GPC Service Contract Labor Standard Services $2,500 5 GPC Contingency (Inside US) $20,000 6 GPC Contingency (Outside US) $30,000
In Case You Hear Something About This…
Slide46DoD Micro-Purchase Regulations
Slide47What is a Micro-Purchase (FAR 2.101)?
Acquisition.gov FAR Site“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.Hill AFB FAR Site - Missing Important Words“Micro-purchase” means an acquisition of supplies or services, the aggregate amount of which does not exceed the micro-purchase threshold.SAP (FAR 13) does not include the following, so they are not micro-purchases:Placing Orders against Contracts (FAR 16.5)Placing Orders against GSA Schedules (FAR 8.405)Purchasing from FPI (FAR 8.6)Overseas GPC Use up to $25K (DFARS 213.301(2))Contract Payments (FMR)SF-182 Payments (FMR)Intergovernmental Payments (FMR)
GPC Micro-Purchase Appointment is not sufficient for CHs taking these actions.
Slide48What Are the Two Available Contracting Authorities?
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
.
201.603-2 Selection.
(1) In accordance with 10 U.S.C. 1724, in order to qualify to serve as a contracting officer with authority to award or administer contracts for amounts above the
simplified acquisition threshold,
a person must— [Education and DAWIA Requirements]
201.603-3 Appointment.
(b) Agency heads may delegate the purchase authority in
213.301
to DoD civilian employees and members of the U.S. Armed Forces.
This limits DoD Agency Heads from delegating authority to non-DoD Federal Employees
Slide49How Do These Relate to Available JAM Cardholder Appointments?
Authority TypeThresholdWarrant Issued?1Micro-Purchase Cardholder$5K 2Micro-Purchase Convenience Check Writer$5K 3Higher Education Micro-Purchase Cardholder$10K - but HCA determination can result in higher value (unlimited) 4Micro-Purchase Contingency Contracting Cardholder$20K Inside the US$30K Outside the US 5Warranted Contingency Contracting Cardholder$750 Inside the US; $1.5M Outside the US6Contract Ordering Official CardholderSimplified Acquisition Threshold7Overseas Simplified Acquisition Cardholder$25K8Contract Payment Official CardholderUnlimited 9SF-182 Training Payments Cardholder$25K 10Inter/Intra-Governmental Payment Official Cardholder$24,999
[
1]
GPC Delegation of Authority and Appointment Letter is equivalent to appointment on as SF-1402, Certificate of Appointment (i.e., Contracting Officer Warrant).
Slide50Questions?
http://www.acq.osd.mil/dpap/pdi/pc/index.html
Slide51Back Up
Slide52GPC Overseas Use up to $25K
Slide53GPC Use Outside the United States
These GPC purchases are simplified acquisitions, but not micro-purchases
DFARS 213.301 (2) authorizes GPC CH to use the GPC to make a purchase that exceeds the MPT but does not exceed $25,000, if—
(i) The purchase—
(A) Is made outside the United States for use outside the United States; and
(B) Is for a commercial item;
(C) Is not for work to be performed by employees recruited within the United States;
(D) Is not for supplies or services originating from, or transported from or through, sources identified in FAR Subpart 25.7 [Prohibited Sources];
(E) Is not for ball or roller bearings as end items;
(F) Does not require access to classified or Privacy Act information; and
(G) Does not require transportation of supplies by sea; and
(ii) The individual making the purchase—
(A) Is authorized and trained in accordance with agency procedures;
(B) Complies with the requirements of FAR 8.002 [Mandatory Sources] in making the purchase; and
(C) Seeks maximum practicable competition for the purchase in accordance with FAR 13.104(b).
Slide54GPC Use Outside the U.S. – Price Reasonableness / Competition Standard
FAR 13.104 Promoting Competition
(b) If using simplified acquisition procedures and not providing access to the notice of proposed contract action and solicitation information through the
Governmentwide
point of entry (GPE), maximum practicable competition ordinarily can be obtained by
soliciting quotations or offers from sources within the local trade area
.
Unless the contract action requires synopsis pursuant to 5.101 and an exception under 5.202 is not applicable,
consider solicitation of at least three sources to promote competition to the maximum extent practicable
. Whenever practicable, request quotations or offers from two sources not included in the previous solicitation.
Slide55Overseas Regulatory Relief for DFARS 213.301(2) GPC purchases
Subpart 4.11—System for Award Management CH reaching back to US vendor must verify SAM registrationSubpart 5.2—Synopses of Proposed Contract Actions Synopsis required if soliciting from other than local vendors for purchases > $15KSubpart 8.605—Acquisition from Federal Prison Industries, Inc. Do not need to purchase or request waiver from FPI when the supplies are acquired and used outside the United StatesSubpart 9.1—Responsible Prospective Contractors Applies unless it conflicts with local law or customs Part 19—Small Business Programs Small Business Set-Aside requirements not applicableThis part, except for Subpart 19.6*, applies only in the United States or its outlying areas. Subpart 19.6 applies worldwide. If reaching back to U.S. above the MPT, it must be set aside for small business.
*
Certificates of Competency and Determinations of Responsibility
Slide56Federal Prison Industries (AKA: UNICOR)Detailed Slides
March 13, 2016 FPI Board of Directors $3,500Blanket Waiver Remains in Effect*
* See https://www.unicor.gov/MandatorySourceExceptions.aspx
Slide57FPI Purchasing Decision Framework
Indicates CH Option
CH
2A
Market Research indicates comparable?
KO
2B
authorizes Alternate Source?
Mandatory
FPI Item?
1
Purchase from FPI
CH Receives Requirement
Valued Above $3,500
Waiver Requested & Granted by FPI?
Y
N
Purchase following Micro-Purchase Procedures.
If soliciting offers, FPI must be included.
Y
N
Y
Follow Existing
Micro-Purchase Procedures
Make Purchase Following Existing
Micro-Purchase Procedures
Y
N
N
Slide58FPI Purchasing Decision Framework - Notes
Check FPI Web Page to determine if:
DoD Purchases of Mandatory FPI Supplies in FSCs for which FPI's share of the DoD Market is greater than 5%
https://www.unicor.gov/MandatorySourceExceptions.aspx#dod
Item that FPI is the mandatory supplier
https://www.unicor.gov/sopAlphaList.aspx
A) CH market research indicates; and
B) KO issues a written determination the FPI item is not comparable to supplies available from the private sector that best meet the Government’s needs in terms of price, quality, and time of delivery . [FAR 8.602]
Slide59Purchasing From Federal Prison Industries
Follow FAR 8.002 - Mandatory Government Sources Priority List(1) Supplies.(i) Inventories of the requiring agency.(ii) Excess from other agencies (see subpart 8.1). (iii) Federal Prison Industries, Inc. (see subpart 8.6)(iv) Supplies which are on the Procurement List maintained by the Committee for Purchase From People Who Are Blind or Severely Disabled (AKA AbilityOne) (see subpart 8.7). (v) Wholesale supply sources, such as stock programs of the General Services Administration (GSA) (see 41 CFR 101-26.3), the Defense Logistics Agency (see 41 CFR 101-26.6), the Department of Veterans Affairs (see 41 CFR 101-26.704), and military inventory control points.(2) Services. Services that are on the Procurement List maintained by the Committee for Purchase From People Who Are Blind or Severely Disabled (see subpart 8.7).
NOTE: FPI is higher priority for Supplies;
AbilityOne
is higher priority for Services. [FAR 8.603 & 8.002]
Slide60Purchasing From Federal Prison Industries
Purchase from FPI is
not
mandatory & a waiver is
not
required if:
Acquiring supplies totaling $3,500 or less [FAR 8.605(e)]
FPI is not a mandatory supplier for the supply being purchased
https://www.unicor.gov/sopAlphaList.aspx
For DoD Purchases of Mandatory FPI Supplies in FSCs for which FPI's share of the DoD Market is greater than 5%
https://www.unicor.gov/MandatorySourceExceptions.aspx#dod
Contracting Officer determines the mandatory supply is not comparable to supplies available from the private sector that best meet the Government’s needs in terms of price, quality, and time of delivery. [FAR 8.602]
CH appointed in accordance with FAR 1.603-3 are not Contracting Officers
The CH requests and FPI grants a purchase waiver [FAR 8.604]
Slide61FPI Product and Service Categories
Source: https://www.unicor.gov/Shopping/viewCat_m.asp?iStore=UNI
Slide62Mandatory from FPI?
Source: https://www.unicor.gov/SopAlphaList.aspx
Slide63DoD 5% Market Share Exception List (Current on 7/29/17)
Source: https://www.unicor.gov/MandatorySourceExceptions.aspx#dod
Slide64FPI GPC Price Reasonableness / Competition Standard
Micro-Purchase Purchasing Guidelines
(i.e., Applicable Competitive Procedures)
M
icro-purchases shall be distributed equitably among qualified suppliers
Micro-purchases may be awarded without soliciting competitive quote if cost to solicit offers exceeds expected savings, and the KO or CH considers the price to be reasonable [FAR 13.203]
CH has recently purchased the item on a competitive basis [reviewed 3 quotes]
CH does not suspect or have information indicating the price may not be reasonable
Slide65Regulations & Guidance
That Often Come Up
Slide66FAR 2.101
“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. “Micro-purchase threshold” means $3,500, except it means— (1) For acquisitions of construction subject to 40 U.S.C. chapter 31, subchapter IV, Wage Rate Requirements (Construction), $2,000; (2) For acquisitions of services subject to 41 U.S.C. chapter 67, Service Contract Labor Standards, $2,500; and (3) For acquisitions of supplies or services that, as determined by the head of the agency, are to be used to support a contingency operation or to facilitate defense against or recovery from nuclear, biological, chemical or radiological attack as described in 13.201(g)(1), except for construction subject to 40 U.S.C. chapter 31, subchapter IV, Wage Rate Requirements (Construction) (41 U.S.C. 1903)— (i) $20,000 in the case of any contract to be awarded and performed, or purchase to be made, inside the United States; and(ii) $30,000 in the case of any contract to be awarded and performed, or purchase to be made, outside the United States.
No Change
to Construction, Service Contract and Contingency Thresholds
Slide67FAR 13.203 - Micro-purchase Purchase Guidelines
(a)
Solicitation, evaluation of quotations, and award.
(1) To the extent practicable, micro-purchases shall be distributed equitably among qualified suppliers.
(2) Micro-purchases may be awarded without soliciting competitive quotations if the contracting officer or individual appointed in accordance with
1.603-3
(b) considers the price to be reasonable.
(3) The
administrative cost of verifying the reasonableness
of the price for purchases may more than offset potential savings from detecting instances of overpricing. Therefore, action to verify price reasonableness need only be taken if --
(
i
) The contracting officer or individual appointed in accordance with
1.603-3
(b) suspects or has information to indicate that the price may not be reasonable (
e.g
., comparison to the previous price paid or personal knowledge of the supply or service); or
(ii) Purchasing a supply or service for which no comparable pricing information is readily available (
e.g
., a supply or service that is not the same as, or is not similar to, other supplies or services that have recently been purchased on a competitive basis).
(b)
Documentation.
If competitive quotations were solicited and award was made to other than the low
quoter
, documentation to support the purchase may be limited to identification of the solicited concerns and an explanation for the award decision.
Slide68FPDS Contract Reporting DFARS PGI 204.6
(5) Reporting task and delivery orders where the Governmentwide commercial purchase card is both the method of purchase and payment. (i) Do not report open-market purchases (i.e., not under a Federal Supply schedule, agreement, or contract) made with the Governmentwide commercial purchase card valued less than the micropurchase threshold to FPDS. (ii) Purchases made using the Governmentwide purchase card as the method of both purchase and payment under federal schedules, agreements, or contracts are required to be reported to FPDS regardless of value. Contracting offices shall ensure all such purchases made by their authorized cardholders are reported to FPDS no less frequently than monthly. Any individual purchase valued greater than $25,000 must be reported individually to FPDS. For individual purchases valued less than $25,000, there are three acceptable methods for reporting to FPDS. They are, in preferred order of use: (A) Report each order individually to FPDS; (B) Report a consolidated express report to FPDS using the delivery order or BPA call format that references the individual contract or BPA, respectively; or (C) Report a consolidated express report to FPDS using the purchase order format that uses the generic DUNS 136721250 for ‘GPC Consolidated Reporting’ or 136721292 for ‘GPC Foreign Contractor Consolidated Reporting’, as appropriate, as the identifier. Note that when a generic DUNS number is used to report these actions, only ‘Other than Small Business’ is allowed as the ‘Contracting Officer’s Determination of Business Size’ selection.
When the GPC is used solely as a method of payment method against a contract,
report the action as any other individual contract action report.
Mark ‘Purchase Card as Payment Method’ as ‘Yes’.
Slide69SF 182 Training Request PaymentsGuidebook A.1.3
Mandatory:
The GPC shall be the
method of payment
for all commercial training requests using the SF 182, valued at or below $25,000,
in lieu of an employee reimbursement by miscellaneous payment in accordance with the procedures to directly pay the provider in
DoD FMR Volume 10, Chapter 12, Section 120327
, and
DoDI
1400.25, Volume 410
.
Title 5 U.S.C., Section 4109
authorizes the head of an agency, under the regulations prescribed in
5 U.S.C. 4118(a)(8)
, to reimburse employees for necessary training expenses (e.g., tuition and matriculation fees; library and laboratory services; purchase or rental of books, materials, and supplies; and other services or facilities directly related to employee training).
Therefore, training, education, and professional development SF-182 actions are not FAR-based transactions.
See
DoDI
1400.25, Volume 410
for additional information regarding the appropriate use of the SF 182.
The total price of training authorized by the use of a single SF 182 may not exceed $25,000 in accordance with
DoD FMR Volume 10, Chapter 12, Paragraph 120327
. SF-182 authorized training may be provided by Government or non-Government sources. When training is provided by a non-Government source, in order to be eligible for GPC payment via the SF-182 process it must consist of a regularly scheduled, commercial-off-the-shelf (COTS) course, training conference, or instructional service that is available to the general public and priced the same for everyone in the same category; e.g., price per student, course, program, service, or training space.
Mandatory
:
If the Government has a need for tailored training or tailored training materials, the requirement shall be placed on Government contract by a warranted contracting officer.