DCN 19991021

48 CFR Parts 201 and 213

[DFARS Case 99-D002]

Defense Federal Acquisition Regulation Supplement; Overseas Use of the Purpose Card

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

SUMMARY: The Director of Defense Procurement has issued a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to permit use of the Governmentwide commercial purchase card for purchases valued at or below $25,000 that are made outside the United States for use outside the United States and are for commercial items. Use of the purchase card permits immediate receipt of supplies and services and, therefore, increases mission readiness and accomplishment.

EFFECTIVE DATE: October 21, 1999.

FOR FURTHER INFORMATION CONTACT:

Ms. Susan Schneider, Defense Acquisition Regulations Council, PDUSD (A&T) DP (DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0326; telefax (703) 602-0350. Please cite DFARS Case 99-D002.

SUPPLEMENTARY INFORMATION:

A. Background

Section 13.301 of the Federal Acquisition Regulation (FAR) permits use of the Governmentwide commercial purchase card to make purchases valued at or below the micro-purchase threshold of $2,500 ($2,000 for construction purchases). The FAR permits use of the card for purchases

exceeding the micro-purchase threshold only as an ordering or payment method in conjunction with a contract. This final rule amends the DFARS to permit use of the card on a stand-alone basis for overseas purchases of commercial items valued at or below $25,000. This action is possible since many laws do not apply to purchases made overseas for use overseas. For example, some laws do not apply if the contractor's employees are recruited outside of the United States. Current requirements and restrictions imposed on card usage for purchases other than those falling within the scope of this rule remain unchanged.

DoD published a proposed rule on May 25, 1999 (64 FR 28134). Forty-seven 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 rule only affects commercial item purchases that are made outside the United States for use outside the United States. Small business concerns are not significantly affected by overseas transactions.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the 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 201 and 213

Government procurement. Michele P. Peterson, Executive Editor, Defense Acquisition Regulations Council.

Therefore, 48 CFR Parts 201 and 213 are amended as follows:

1. The authority citation for 48 CFR Parts 201 and 213 continues to read as follows:

Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

PART 201--FEDERAL ACQUISITION REGULATIONS SYSTEM

2. Section 201.603-3 is amended by redesignating the existing text as paragraph (a), and by adding a new paragraph (b) to read as follows:

Overseas Use of the Purchase Card

DFARS Case 99-D002

Final Rule

SUBPART 201.6-CONTRACTING AUTHORITY AND RESPONSIBILITIES

* * * * *

201.603-3 Appointment.

[(a)] Certificates of Appointment executed under the Armed Services Procurement Regulation or the Defense Acquisition Regulation have the same effect as if they had been issued under FAR.

[(b) Agency heads may delegate the purchase authority in 213.301 to DoD civilian employees and members of the U.S. Armed Forces.]

* * * * *

SUBPART 213.3-SIMPLIFIED ACQUISITION METHODS

[213.301 Governmentwide commercial purchase card.

(1) "United States," as used in this section, means the 50 States and the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, the Commonwealth of the Northern Mariana Islands, Guam, American Samoa, Wake Island, Johnston Island, Canton Island, the outer Continental Shelf lands, and any other place subject to the jurisdiction of the United States (but not including leased bases).

(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; and

(F) Does not require access to classified or Privacy Act information; and

(ii) The individual making the purchase-

(A) Is authorized and trained in accordance with agency procedures;

(B) Complies with the requirements of FAR 8.001 in making the purchase; and

(C) Seeks maximum practicable competition for the purchase in accordance with FAR 13.104(b).]