[Federal Register Volume 65, Number 147 (Monday, July 31, 2000)]
[Rules and Regulations]
[Pages 46625-46626]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-19111]
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DEPARTMENT OF DEFENSE
48 CFR Parts 208, 212, 213, 214, 215, 232, and 252
[DFARS Case 98-D026]
Defense Federal Acquisition Regulation Supplement; Streamlined
Payment Practices
AGENCY: Department of Defense (DoD).
ACTION: Final rule.
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SUMMARY: The Director of Defense Procurement has issued a final rule
amending the Defense Federal Acquisition Regulation Supplement (DFARS)
to require use of the Governmentwide commercial purchase card as the
method of purchase and/or method of payment for purchases valued at or
below the micro-purchase threshold, unless an exception is authorized.
Use of the purchase card streamlines purchasing and payment procedures
and, therefore, increases operational efficiency.
EFFECTIVE DATE: July 31, 2000.
FOR FURTHER INFORMATION CONTACT: Ms. Susan L. Schneider, Defense
Acquisition Regulations Council, OUSD(AT&L)DP(DAR), IMD 3D139, 3062
Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0326;
telefax (703) 602-0350. Please cite DFARS Case 98-D026.
SUPPLEMENTARY INFORMATION:
A. Background
This final rule amends the DFARS to require use of the
Governmentwide commercial purchase card as the method of purchase and/
or method of payment for DoD purchases valued at or below the micro-
purchase threshold of $2,500, unless an exception is authorized. The
rule implements a policy memorandum issued by the Principal Deputy
Under Secretary of Defense (Acquisition and Technology) on October 2,
1998, Subject: Streamlined Payment Practices for Awards/Orders Valued
at or below the Micro-Purchase Threshold; and a policy memorandum
issued by the Under Secretary of Defense (Personnel and Readiness) on
September 25, 1998, Subject: Use of Government-Wide Purchase Cards. The
October 2, 1998, memorandum is available via the Internet at http://www.acq.osd.mil/dp/micro2.pdf. The September 25, 1998, memorandum is
available via the Internet at http://purchasecard.sarda.army.mil/deleon.htm.
DoD published a proposed rule at 64 FR 38878 on July 20, 1999. Six
sources submitted comments on the proposed rule. DoD considered all
comments in the development of the final rule.
This rule was not subject to Office of Management and Budget review
under Executive Order 12866, dated September 30, 1993.
B. Regulatory Flexibility Act
DoD certifies that this final rule will not have a significant
economic impact on a substantial number of small entities within the
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.,
because the Governmentwide commercial purchase card is similar in
nature to commercial credit cards that are commonly used in the
commercial marketplace.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the final rule
does not impose any information collection requirements that require
the approval of the Office of Management and Budget under 44 U.S.C.
3501, et seq.
List of Subjects in 48 CFR Parts 208, 212, 213, 214, 215, 232, and
252
Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
Therefore, 48 CFR parts 208, 212, 213, 214, 215, 232, and 252 are
amended as follows:
1. The authority citation for 48 CFR parts 208, 212, 213, 214, 215,
232, and 252 continues to read as follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
PART 208--REQUIRED SOURCES OF SUPPLIES AND SERVICES
2. Section 208.405-2 is amended by revising paragraph (4) to read
as follows:
208.405-2 Order placement.
* * * * *
(4) If permitted under the schedule contract, use of the
Governmentwide commercial purchase card--
(i) Is mandatory for placement of orders valued at or below the
micro-purchase threshold; and
(ii) Is optional for placement of orders valued above the micro-
purchase threshold.
PART 212--ACQUISITION OF COMMERCIAL ITEMS
3. Section 212.301 is amended by adding paragraph (f)(vi) to read
as follows:
212.301 Solicitation provisions and contract clauses for the
acquisition of commercial items.
* * * * *
(f) * * *
(vi) Use the clause at 252.232-7009, Mandatory Payment by
Governmentwide Commercial Purchase Card, as prescribed in 232.1110.
4. Section 212.303 is added to read as follows:
212.303 Contract format.
Structure awards valued above the micro-purchase threshold (e.g.,
contract line items, delivery schedule, and invoice instructions) in a
manner that will minimize the generation of invoices valued at or below
the micro-purchase threshold.
PART 213--SIMPLIFIED ACQUISITION PROCEDURES
5. Section 213.101 is added to read as follows:
213.101 General.
Structure awards valued above the micro-purchase threshold (e.g.,
contract line items, delivery schedule, and invoice instructions) in a
manner that will minimize the generation of invoices valued at or below
the micro-purchase threshold.
6. Subpart 213.2 is added to read as follows:
[[Page 46626]]
Subpart 213.2--Actions at or Below the Micro-Purchase Threshold
Sec.
213.270 Use of the Governmentwide commercial purchase card.
213.270 Use of the Governmentwide commercial purchase card.
Use the Governmentwide commercial purchase card as the method of
purchase and/or method of payment for purchases valued at or below the
micro-purchase threshold. This policy applies to all types of contract
actions authorized by the FAR unless--
(a) The Deputy Secretary of Defense has approved an exception for
an electronic commerce/electronic data interchange system or
operational requirement that results in a more cost-effective payment
process;
(b)(1) A general or flag officer or a member of the Senior
Executive Service (SES) makes a written determination that--
(i) The source or sources available for the supply or service do
not accept the purchase card; and
(ii) The contracting office is seeking a source that accepts the
purchase card.
(2) To prevent mission delays, if an activity does not have a
resident general or flag officer of SES member, delegation of this
authority to the level of the senior local commander or director is
permitted; or
(c) The purchase or payment meets one or more of the following
criteria:
(1) The place of performance is entirely outside of any State,
territory, or possession of the United States, the District of
Columbia, and the Commonwealth of Puerto Rico.
(2) The purchase is a Standard Form 44 purchase for aviation fuel
or oil.
(3) The purchase is an overseas transaction by a contracting
officer in support of 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).
(4) The purchase is a transaction in support of intelligence or
other specialized activities addressed by Part 2.7 of Executive Order
12333.
(5) The purchase is for training exercises in preparation for
overseas contingency, humanitarian, or peacekeeping operations.
(6) The payment is made with an accommodation check.
(7) The payment is for a transportation bill.
(8) The purchase is under a Federal Supply Schedule contract that
does not permit use of the Governmentwide commercial purchase card.
(9) The purchase is for medical services and--
(i) It involves a controlled substance or narcotic;
(ii) It requires the submission of a Health Care Summary Record to
document the nature of the care purchased;
(iii) The ultimate price of the medical care is subject to an
independent determination that changes the price paid based on
application of a mandatory CHAMPUS Maximum Allowable Charge
determination that reduces the Government liability below billed
charges;
(iv) The Government already has entered into a contract to pay for
the services without the use of a purchase card;
(v) The purchaser is a beneficiary seeking medical care; or
(vi) The senior local commander or director of a hospital or
laboratory determines that use of the purchase card is not appropriate
or cost-effective. The Medical Prime Vendor Program and the DoD Medical
Electronic Catalog Program are two examples where use of the purchase
card may not be cost-effective.
PART 214--SEALED BIDDING
7. Section 214.201-1 is added to read as follows:
214.201-1 Uniform contract format.
Structure awards valued above the micro-purchase threshold (e.g.,
contract line items, delivery schedule, and invoice instructions) in a
manner that will minimize the generation of invoices valued at or below
the micro-purchase threshold.
PART 215--CONTRACTING BY NEGOTIATION
8. Section 215.204-1 is added to read as follows:
215.204-1 Uniform contract format.
Structure awards valued above the micro-purchase threshold (e.g.,
contract line items, delivery schedule, and invoice instructions) in a
manner that will minimize the generation of invoices valued at or below
the micro-purchase threshold.
PART232--CONTRACT FINANCING
9. Subpart 232.11--is added to read as follows:
Subpart 232.11-Electronic Funds Transfer
Sec.
232.1108 Payment by Governmentwide commercial purchase card.
232.1110 Solicitation provision and contract clauses.
232.1108 Payment by Governmentwide commercial purchase card.
The Governmentwide commercial purchase card is the mandatory EFT
payment method for purchases valued at or below the micropurchase
threshold, except as provided in 213.270.
232.1110 Solicitation provision and contract clauses.
Use the clause at 252.232-7009, Mandatory Payment by Governmentwide
Commercial Purchase Card, in solicitations, contracts, and agreements
when--
(1) Placement of orders or calls valued at or below the
micropurchase threshold is anticipated; and
(2) Payment by Governmentwide commercial purchase card is required
for orders or calls valued at or below the micropurchase threshold
under the contract or agreement.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
10. Section 252.232-7009 is added to read as follows:
252.232-7009 Mandatory Payment by Governmentwide Commercial Purchase
Card.
As prescribed in 232.1110, use the following clause:
Mandatory Payment by Governmentwide Commercial Purchase Card
(JUL 2000)
The Contractor agrees to accept the Governmentwide commercial
purchase card as the method of payment for orders or calls valued at
or below $2,500 under this contract or agreement.
(End of clause)
[FR Doc. 00-19111 Filed 7-28-00; 8:45 am]
BILLING CODE 5000-04-M