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(Revised October 20, 2015 through PROCLTR 2015-12)


13.003 Policy.


13.106 Soliciting competition, evaluation of quotations or offers, award and documentation.

13.106-2 Evaluation of quotations or offers.

13.106-3 Award and documentation.

13.106-90 Other solicitation issues.


13.201 Actions at or below the micro-purchase threshold.

13.270 Use of the Governmentwide commercial purchase card.


13.301 Governmentwide commercial purchase card.

13.302-2 Unpriced purchase orders.

13.303 Blanket purchase agreements (BPAs).

13.303-2 Establishment of BPAs.

13.303-3 Preparation of BPAs.

13.307-90 Forms.

13.390 Indefinite delivery purchase orders (IDPOs).


13.402 Conditions for use.

13.404 Contract clause.


13.500 General.

13.003 Policy.

(e) It is the policy of DLA that each contracting office shall use the automated solicitation, evaluation, and award processes to the fullest extent possible. Any requirements that are not satisfied as delivery orders against long-term contracting arrangements are candidates for automated procurement. Procedures for exclusions are as follows:

(i) Exclusions from automated procurement. Only those acquisitions that meet the following criteria are authorized to be excluded from automated procurement processes:

(A) Total dollar value exceeds the simplified acquisition threshold;

(B) Place of inspection code (PIC) equals 3 or 4;

(C) Essential national stock number (NSN) or material data is missing, to include:

(1) No approved sources on part number NSNs/materials;

(2) Acquisition method suffix code (AMSC) B, G, or T without basic document;

(3) No PIC; or

(4) No packaging data.

(D) Government-furnished material/property/tooling applies;

(E) First article testing applies;

(F) Items are flight safety critical;

(G) Items are life support equipment;

(H) Special data licensing agreements apply; or

(I) Document type equals one of the following:

(1) ZTAV – Order fulfillment;

(2) ZSFC – STORES/FAVORS customer direct;


(4) ZN – Order fulfillment TAV processing (request for quote (RFQ));

(5) ZP – Order fulfillment procurement offset or RFQ;

(6) AN – Standard request for quote (RFQ); or

(7) Request for GP bid or RFQ.

(ii) Process for authorizing additional exclusions.

(A) Approval level. The HCA shall approve any exclusions other than those identified in 13.003(e)(i). Approval of the exceptions shall be in writing, and a copy of the exception to policy shall be kept in all contract files to which it is applicable. This authority is not delegable.

(1) Exclusion determinations shall include the following information:

(i) Point of contact;

(ii) Exclusion criteria: National stock number (NSN)/ federal supply class (FSC)/quality control code (QCC) or purchase request (PR);

(iii) Level of automation exclusion: Solicitation, evaluation, and/or award;

(iv) Exclusion code – See Appendix A, Automated Procurement Exclusion Codes;

(v) Duration of exclusion: temporary or permanent; and

(vi) Justification for exclusion.

(2) Implementation of approved exclusions. The HCA shall forward copies of the determination and justification to the Deputy Director, DLA Acquisition, J7, to the Procurement Systems Process Owner, J71, and to the automated solicitation/evaluation/award sub-process owner at DLA Land and Maritime for entry of the following data into the automated procurement exclusion tables:

(i) Federal supply class (FSC);

(ii) NSN;

(iii) Weapon system designator code;

(iv) Project code;

(v) Foreign military sales country code;

(vi) Special procedure code;

(vii) PR number;

(viii) Acquisition method suffix code (AMSC) and FSC combination;

(ix) Quality control code;

(x) Priority and project (all priority 01 and priority 02 and 03 with 999 required delivery dates are excluded agency-wide);

(xi) Advice code (2T or 2F are excluded agency-wide);

(xii) Precious metal indicator code – other than A, U, or null; and

(xiii) Document type.

(3) Reporting. Each contracting office shall submit a quarterly report providing status information and outcomes associated with their automated exclusions list as part of the DLA Acquisition Review & Analysis (R&A) metrics review.

(h) Only contracting officers have authority to award, modify, and terminate simplified acquisitions, including purchase orders and blanket purchase agreements. This authority shall not be delegated.

(S-90)(i) Manual acquisition procedures. Follow procedures in Table 13-1:

Table 13-1

Manual Procedures – Time to Award for Simplified Acquisitions Up to $150,000

Standardized Processes:

Manual Solicitations – (Do Not Re-Solicit “T” Solicitations)

Micro Purchase – Oral/Fax/Email/DIBBS RFX – Open/Close period for RFXs 7 Days

>$3,000 to Simplified Acquisition Threshold – Open/Close period for RFXs 10 Days

Reference Master Solicitation in lieu of selecting provisions

2579 –

ONLY on acquisitions >=$3,000 AND Unrestricted (dissolving special set asides may require additional coordination)

Quantity Increases – Proactively monitor work overview for quantity adjustments. If valid quotes have been received REJECT workflow.

Award Documentation –

First Time Buy <=$250 or <=$3000 With Buy History – Price Reasonableness Code is sufficient documentation that the Contracting Officer considers the price reasonable. Simplified Acquisition Award Documentation at 13.106-3(b) is not required but may be included in rare, exceptional circumstances.

First Time Buy >$250 or Actions >$3000 - <=SAT – Use Simplified Acquisition Award Documentation at 13.106-3(b). Select applicable price reasonableness determination, complete Narrative if required, and select any other applicable determinations. Complete Best Value Determination Narrative when awarding to other than lowest-priced, highest-scored offeror.

Referrals –

Will be processed in EProcurement. See EBS Procurement Job Aid – Records Management; Creating and Processing a Referral.

Awards –

Award Purchase Requests without clauses by referencing Master Solicitation for all orders that will not be administered by DCMA; except that clauses including mandatory fill-in requirements shall be selected.

(S-90)(ii) Elevation timeline for simplified acquisitions. Follow procedures in Table 13-2:

Table 13-2

Elevation Timeline for Simplified Acquisitions

PR Schedule

Action Officer

Action Item

1 Day After Solicitation

Closes (For Automated “T” solicitations, take action after Auto Evaluation Status (AES) Block converts to “M” or “S.”)

Contracting Officer

Review offers for acceptability and address any technical and/or supply issues.

If issues cannot be resolved within 7 days, alert Supervisor.

If ESA referral required, follow Non-Procurable Purchase Requisition (PR) Policy*

If no quotes received, follow Non-Procurable PR Policy*

If pricing or other issues cannot be resolved within 7 days, elevate.

7 Days After Solicitation


Contracting Officer; Contracting Officer Supervisor

Contracting Officer: Elevate to Supervisor

Supervisor: If unable to resolve, elevate to Division Chief by Day 15, and document file.

15 Days After Solicitation


Division Chief

If unable to resolve, determine/facilitate resolution by Day 20, and document file.

20 Days After Solicitation


Contracting Officer

Document file outlining actions taken, and award or follow Non-Procurable PR Policy* by Day 20.

Above steps should take no longer than 20 calendar days. The following blocks shall be completed and placed in the purchase order file once all parties complete their actions.

Contracting Officer Name

Signature and Date

Contracting Officer Comments (optional)

Contracting Officer Supervisor Name

Signature and Date

Contracting Officer Supervisor Comments (optional)

Division Chief Name

Signature and Date

Division Chief Comments (optional)

*DLA Non-Procurable Purchase Requisition (PR) Cross-Process Policy Memorandum, CP-13-001, dated December 11, 2012 (available on eWorkplace, Logistics Operations (J3), Shared Documents, J3 Policies and Procedures, Cross Process)


(Revised October 20, 2015 through PROCLTR 2015-12)

13.106 Soliciting competition, evaluation of quotations or offers, award and documentation.

13.106-2 Evaluation of quotations or offers.

(b) Evaluation procedures.

(S-90) Automated contract evaluation systems.

(i) The provision at 52.213-9008 shall be used in all automated solicitations valued at or below the simplified acquisition threshold that are to be evaluated under an automated contract evaluation system program. The terms of this provision are incorporated in the Master Solicitation for Automated Simplified Acquisitions.)

(ii) See 1.601-90(b)(3)(iv) and 1.602-2 for additional oversight, training, and documentation requirements for contracting officers whose electronic signatures are applied to fully automated awards generated by procurement systems that utilize automated solicitation, evaluation, and award processes to execute purchase orders.

(iii) HCAs shall perform an annual analysis to determine optimum percentage variance numbers for both competitive and non-competitive acquisitions by contracting office. The analysis shall outline the methodology and calculations utilized; and shall demonstrate that the percentages are optimal in terms of cost savings, number of automated awards, results of internal reviews, and workload impacts. HCAs shall submit their recommendations for establishment of new percentage variance numbers to DLA Acquisition J71 by January 31 of each year. The J71 Procurement Systems Process Owner will direct a system update to reflect the optimum variance percentage recommended by the HCA for price evaluation. If any interim changes are required, an updated recommendation with supporting analysis must be submitted to DLA Acquisition J71.

(iv) Past Performance Information Retrieval System – Statistical Reporting (PPIRS-SR).

(A) PPIRS-SR classifications. Contractor classifications may be reviewed and analyzed utilizing the solicitation inquiry report on the PPIRS-SR Website:

(B) The evaluation criteria as to how PPIRS-S determines delivery and quality classifications and the sources of the data can be found in the PPIRS Reference Material “PPIRS-SR Evaluation Criteria” on the PPIRS-SR Website:

(v) Award justification. The contract file shall be documented with the rationale supporting all award decisions (see 13.106-3(b)). The award decision shall demonstrate how paying more than low price reduces performance risk or otherwise benefits the Government. The extent of the award justification shall be commensurate with the price difference between the awardee and the lowest-price, highest-scored quoter.

(b)(3)(ii)(D)(S-91) First Destination Packaging (FDP) Program evaluation. Contracting officers shall follow procedures at 15.402(a)(S-90)(2) when the commercial packaging standard, American Society for Testing and Materials (ASTM) D3951 applies; and ensure the Government achieves appropriate savings by negotiating the price on manually-awarded acquisitions of all dollar values under the First Destination Packaging (FDP) program when the packaging standard changes from MIL-STD 2073-1 to ASTM D 3951 (see 11.201(c)(S-90)(1).) Negotiation efforts shall be commensurate with the value of the procurement.

13.106-3 Award and documentation.

(b) File documentation and retention. Contracting officers shall document the basis for award and determination of price reasonableness as follows:

Simplified Acquisition Award Documentation

Contracting officer: PR#:

Basis for Award – Price Reasonableness Determination – FAR 13.106-3(a):

(Check as applicable and explain as needed*)

[ ] Fair and Reasonable – Adequate Price Competition – Manufacturer Competition

[ ] Fair and Reasonable – Adequate Price Competition – Dealer/OEM Competition

[ ] Fair and Reasonable – No Competition (single quote or noncompetitive price range)

[ ] Fair and Reasonable – Adequate Price Competition Among Providers of Services

[ ] Commercial Item $_____per unit

[ ] Market Research

[ ] Federal Supply Schedule (FSS) Number: __________________ FSS Price: $_______

[ ] Independent Government Estimate

[ ] Comparison of the proposed price with prices found reasonable on previous purchases

Contract: _______________________ Unit Price: $________

Price Reasonableness Code (PRC) (if applicable) – DLAD 15.406-3(a)(11): ______

[ ] Comparison of similar items: NSN: ________________ Unit Price: $_________

[ ] Contracting Officer’s knowledge of the item

[ ] Any other reasonableness basis (i.e. Informal Cost Breakdown, Set by law or regulation,

or other FAR Part 15 procedures)


DFARS 217.7505 Sole Source Price Increase Certification:

Base price as adjusted in accordance with DFARS 17.7505 has increased by more than the percentage or dollar value permitted in DLAD 17.7505. [ ] Yes [ ] No. If “Yes,” the price has been evaluated and justified. Required notification prior to award has been completed.

Best Value Determination: (Required if Awarding to Other Than Lowest-Price, Highest-Scored Quoter):


Other Determinations: (Check as applicable and explain as needed*)

[ ] Procurement is a First Time Buy

[ ] Fast Pay applicable

[ ] PR complies with Fast Pay requirements IAW FAR 13.402(a)-(f)

[ ] FARS DEV at DLAD 13.402 applies FARS DEV Number: ___________

[ ] First Destination Packaging (FDP) Considerations:

[ ] No change in level of packaging from previous buy

[ ] If level of packaging changed from Military to commercial, unit price was negotiated:

[ ] Yes [ ] Savings in unit price realized: $/% ___________ [ ] No savings realized

[ ] No negotiation due to low potential savings (IAW DLAD 13.106-2(b)(3)(ii)(D)(S-91) or 15.402(a)(S-90)(2))

[ ] First Destination Tramsportation (FDT) Program Considerations:

[ ] No negotiation conducted

[ ] Unit price was negotiated [ ] Savings in unit price realized: $/% ___________ [ ] No savings realized

[ ] checked; awardee not proposed for suspension/debarment or debarred IAW FAR 9.405(d)(4)

Date SAM Checked: ___________

Contracting Officer’s signature on the award document constitutes concurrence with all determinations made above.

13.106-90 Other solicitation issues.

(a) The provision at 52.213-9001, Evaluation Factor for Source Inspection, shall be inserted in all simplified acquisition solicitations. Use the provision with its Alternate I in all solicitations for contracts under which multiple orders may be placed, such as a long-term contract (LTC).

(c) Unsolicited quotations need not be evaluated except when it is feasible and practicable to do so in order to satisfy requirements at FAR 13.104 to provide for maximum practicable competition; or to consider alternate offers to provide competition for sole source items (see 17.7501(b)(4)).


13.201 General.

(g)(1) For other than purchase card acquisitions, the authority is delegated to the contracting officer to determine that supplies or services will be used to support a contingency operation or to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack. For purchase card acquisitions, the determination authority is delegated to the HCA; or, when J7 is the HCA, to the CCO. The billing official and cardholder shall obtain written pre-approval. The basis for the determination shall be documented in the contract file. Combining the authorities on a single procurement to take advantage of the most favorable aspects of each authority is not allowed. The contracting officer shall comply with the requirements of the specific authority used.

13.270 Use of the Governmentwide commercial purchase card.

(a) DLA contracting offices shall use the Government-wide commercial purchase card as the method of purchase and/or payment for purchases valued at or below the micro-purchase threshold for commercial supplies or services to the maximum extent practicable.

(1) Those micro-purchases shall be accomplished by designated, trained Government purchase card holders with oversight by an appointed billing official, in accordance with the DoD Government Charge Card Guidebook for Establishing and Managing Purchase, Travel, and Fuel Card Programs, as supplemented by DLA Instruction (DLAI) 2106, Government Purchase Card.

(i) Billing officials and cardholders shall be designated by a Level 4 agency/organization program coordinator via the Department of Defense (DD) Form 577 and letter of appointment.

(ii) The authority for appointment of Level 4 agency/organizational program coordinators has been delegated by the Director, DLA to the HCAs. For contracting offices not designated as “contracting activities” (see 2.101), the Director, DLA Acquisition (J7), as HCA, has delegated this authority to the Directors, Commanders, or Administrators of those offices. This authority is delegable, without power of redelegation to the CCO.

(2) A purchase shall only be excepted from the requirement at 13.270(a) if, in accordance with DFARS 213.270 (b)(1), a written determination is approved for a source or sources and the file documented. A contracting officer may then award a purchase order. The authority for award, modification, and termination shall not be delegated by the contracting officer.

(3) DLA Aviation and DLA Troop Support may request support for their purchase card program through the DLA Contracting Services Office (DCSO). The DCSO CCO will then appoint the Level 4 agency/organizational program coordinator.


(Revised November 5, 2014 through PROCLTR 2015-06)

13.301 Governmentwide commercial purchase card.

(S-90) Issuance of a Government-wide Commercial Purchase Card (GPC) constitutes authority to make micro-purchases (see FAR 1.603-3(b)). This procurement authority is issued in accordance with the procedures in Directive-Type Memorandum (DTM) 13-001, Government Purchase Card, dated December 13, 2013; and is not subject to the limitation on delegation of authority for selection, appointment, or termination of contracting officer authority or the contracting officer review program at 1.603-1(S-92). The GPC may be used as a method of purchase and/or payment for purchases and orders under existing indefinite delivery/indefinite quantity contracts and for other contracts when the contract authorizes its use as an ordering/payment method.

(S-91) Use of On-Base AbilityOne Stores, the AbilityOne Website, and DOD EMALL for Government Purchase Cardholders (GPCHs).

(1) In accordance with FAR Subpart 8.7, GPCHs shall purchase AbilityOne items (supplies and/or services) when available. Non-AbilityOne items may be purchased from the on-base AbilityOne store and other AbilityOne sources only if the items are in stock. GPCHs will acquire items from on-base AbilityOne stores and the AbilityOne Website at

(2) If the conditions in 13.301(S-91)(1) cannot be met, GPCHs shall use DOD EMALL, except as provided in (i) or (ii) below:

(i) If the GPCH determines the item is not available on DOD EMALL or from other AbilityOne sources, the GPCH may procure from other authorized sources (see FAR Part 8).

(ii) The Hierarchy Level 4 Agency/Organization Program Coordinator (HL4 A/OPC) may grant the Billing Official the authority to waive the requirement to use DOD EMALL when one or more of the circumstances identified in (A) through (C) applies. The waiver shall be documented using the DOD EMALL Waiver format at 53.9013(e).

(A) Use of DOD EMALL would not meet the delivery requirements;

(B) Use of DOD EMALL would result in unreasonable or excessive cost to the requiring activity;

(C) Use of DOD EMALL would violate requirements for use of mandatory sources.

(3) GPCHs using the exception at 13.301(S-91)(2)(i) shall identify the non-availability of requirements that cumulatively exceed $3,000 per fiscal year to the DOD EMALL Program Office to have the requirement identified for inclusion on DOD EMALL, using the following email address: The GPCH shall retain evidence of non-availability (“Print Screen” from DOD EMALL) and a copy of the email to the DOD EMALL Program Office in the transaction file.

13.302-2 Unpriced purchase orders.

(S-90) The requirements of DFARS Subpart 217.74 and DLAD Subpart 17.74 shall be followed for all unpriced purchase orders issued by DLA contracting offices.

13.303 Blanket purchase agreements (BPAs).

13.303-2 Establishment of BPAs.

(c)(3)(S-90) BPAs with federal supply schedule (FSS) contractors for non-FSS items shall contain a statement that the BPA excludes all items on FSSs. BPAs with an FSS contractor for items on an FSS shall be consistent with the provisions of the applicable FSS; the terms of the BPA should be limited to a simplification of purchasing techniques, such as placement of calls orally and provisions for submitting monthly consolidated billings.

13.303-3 Preparation of BPAs.

(a)(1) The maximum aggregate amount, if any, of all calls to be issued against one BPA shall be prescribed by the HCA.

13.307-90 Forms.

(a) DLA Form 1224, Shipping Instructions, may be used to issue automated calls made under a BPA.

13.390 Indefinite delivery purchase orders (IDPOs).

(a) An IDPO is a simplified acquisition procedure that applies indefinite delivery contract concepts to a procurement action not exceeding the simplified acquisition threshold; or, for acquisitions subject to FAR Subpart 13.5, not exceeding $6.5 million ($12 million for acquisitions as described in 13.500(e)). Use of an IDPO is appropriate when repetitive low dollar value purchases are made for the same item; the price of the item is expected to be stable; and expected yearly or other long–term demands are not sufficient to establish an indefinite delivery contract. An IDPO establishes a firm commitment that the contractor will perform under subsequent orders issued at the purchase order price for a definite period for an indefinite quantity of supplies. The decision to establish an IDPO shall be made by the contracting officer in coordination with the customer. Only one IDPO shall be established per item; except that multiple IDPOs for the same item may be awarded if the awardee's performance under each IDPO is limited to a separate and distinct region or physical location as specified in each IDPO.

(b) Only a warranted contracting officer shall award an IDPO and, as necessary, execute modifications or terminations. The contracting officer may designate a Contracting Officer’s Ordering Representative (COR) for one specific IDPO with authority to only issue orders.

(c) Order numbering. IDPO orders shall be numbered in accordance with the uniform procurement instrument identification numbering (PIIN) system (see DFARS 204.7003). The initial purchase order and subsequent orders shall be include a “D” in the ninth position and, when the system permits, insert a “5” in the tenth position of the PIIN. The initial purchase order shall be numbered with supplemental PIIN number 0001. Subsequent orders shall be serially numbered with supplemental PIIN numbers 0002 through 9999.

(d) Clauses for IDPOs.

(1) Insert the clause at 52.213-9010, Indefinite Delivery Purchase Order (IDPO) Evaluation, in solicitations for IDPOs.

(2) Insert the clause at 52.213-9011, Indefinite Delivery Purchase Order (IDPO) Agreement – Unilateral, in solicitations and awards when the contracting officer intends to determine the method of purchase that is in the best interest of the Government for a subsequent requirements, either by ordering against the IDPO or issuing a new request for quotes. When using 52.213-9011, include the clauses at FAR 52.216-19, FAR 52.216-22, and DFARS 252.216-7006.

(3) Insert the clause at 52.213-9012, Indefinite Delivery Purchase Order (IDPO) – Bilateral, in solicitations and awards when the contracting officer intends to establish a binding contract without obligation to place future orders against the IDPO. When using 52.213-9012, include the clauses at FAR 52.216-19, 52.216-22, 52.232-23, 52.243-1, and 52.249-8 and DFARS 252.216-7006 and 52.243-7001.


(Revised October 20, 2015 through PROCLTR 2015-12)

13.402 Conditions for use.

(a) The following deviations apply:

(S-90) FARS DEV 2013-09, Class Deviation from FAR 13.4, Fast Payment Procedures, on Individual Orders Up to $100,000 Issued Against Prime Vendor and Other Long-Term Contracts Requiring Customer Direct Delivery, expires September 30, 2014.

(S-91) FARS DEV 06-05, One-Time Deviation from FAR 13.4, Fast Payment Procedures, for Contracts and Orders Resulting from Solicitation SPM4A2-06-R-0002, Compressed Gases and Cylinders Under BRAC Commodity Management Privatization Recommendation #175, expires October 19, 2016.

(S-92) FARS DEV 06-06, One-Time Deviation from FAR 13.4, Fast Payment Procedures, for Contracts and Orders Resulting from Solicitation SPM4A2-06-R-0001, Chemicals and Packaged Petroleum, Oils, and Lubricants Under BRAC Commodity Management Privatization Recommendation #175, expires October 19, 2016.

(S-93) FARS DEV 06-07, One-Time Deviation from FAR 13.4, Fast Payment Procedures, for Contracts and Orders Resulting from Solicitation SPO7002-06–R-7022, Land Tires under BRAC Commodity Management Privatization Recommendation #175, expires October 19, 2016.

(S-94) FARS DEV 06-08, One-Time Deviation from FAR 13.4, Fast Payment Procedures, for Contracts and Orders Resulting from Solicitation SPO7002-06-R-7023, Aircraft Tires under BRAC Commodity Management Privatization Recommendation #175, expires October 19, 2016.

(f)(1) Contracting officers shall comply with the following mandatory post-payment reconciliation procedures to ensure documentation of evidence of contractor performance:

(A) Populations of fast payment transactions that require reconciliation.

(1) A statistically valid sample of transactions valued up to $100,000 ($200,000 for OCONUS subsistence); or

(2) Every non-subsistence transaction valued over $100,000 ($200,000 for subsistence).

(B) Sampling methodology. The DLA Office of Operations Research and Resource Analysis (DORRA) compiles a quarterly sample of fast payment transactions using DCAA “E-Z Quant” and loads the data on the Joint Lessons Learned Information System (JLLIS) at for access by the contracting offices.

(C) Reconciliation process.

(1) Reconciliations shall be performed by each contracting office on a quarterly basis beginning with the start of the fiscal year.

(2) Once the sample data are available on JLLIS, contracting officers shall perform receipt validation on each of the transactions in the sample. Reconciliation consists of comparing receipt documentation (receipt acknowledgement or receiving report) with contracting (purchase order or requisition) and accounting and payment data (invoice).

(3) The preferred method of receipt verification is the Material Receipt Acknowledgement (MRA). Transactions with discrepant MRAs must be further researched to determine whether the customer received the items. When an MRA is not available, contracting officers may validate receipt based on a Receiving Report in Wide Area Work Flow (WAWF), proof of delivery (POD) from the contractor or transporter, acknowledgement of receipt by the requisitioner, or other documentation verifying that the customer has received the material. For the portion of the sample population that required validation by means other than the MRA, contract files must include copies of documentation obtained to verify customer receipt.

(D) Reporting of reconciliation results. Each contracting office shall submit quarterly reports to J71 within 60 days after DORRA posts the fast payment transaction data for the subsequent verification period but not earlier than May 15 for Quarter 1 data, August 15 for Quarter 2 data, November 15 for Quarter 3 data, and February 15 for Quarter 4 data. Reconciliation reports shall identify the method of receipt validation.

(1) If the reconciliation exposes discrepancies between customer receipts and supplier invoices or system-generated receipts in more than 5 percent of the sample, an additional sample, of the same size as the original group subjected to reconciliation and excluding the transactions previously sampled, shall undergo the verification process. If more than 5 percent of this second sample is also discrepant, J7 may require verification of additional or all transactions.

(2) Consideration should be given to increasing the sample size or performing a 100% review for suppliers/customers with a problematic record.

(E) Analysis of reports and oversight. J71 shall review the quarterly reconciliation reports for negative trends and assess the need for potential corrective actions. Proper application of fast payment procedures and contract file documentation shall be a part of all regular procurement management reviews.

(S-92) Fast payment procedures shall not be used for—.

(1) Transactions greater than $100,000, with the exception of transactions for tires, OCONUS subsistence, and OCONUS medical;

(2) DLA Direct shipments, except for OCONUS stock buys supporting forward stock locations (FSL) initiatives when destination inspection and acceptance applies.

(3) Customer Direct shipments when Government source inspection is required or when subsistence requirements are shipped through a consolidation point prior to shipment overseas; except for shipments that go through a consolidation point (see 25.7302-90) when requirements for use of fast payment procedures are otherwise satisfied .

13.404 Contract clause.

(S-90) DEVIATION 17-03 waives the requirements in FAR 52.213(c)(2) for the FDT Program.


13.500 General.

(S-90) The authority to use FAR 13.5 is in effect until January 1, 2015. The following requirements apply:

(1) Market research. Market research shall be performed for acquisitions with an estimated value in excess of the SAT. Market research can be conducted by reviewing previous procurements, conducting Internet searches, and/or contacting potential sources of supply. Use the Commercial Item Pre-Solicitation Memorandum for Record (MFR) at 13.500(S-91), Part I – Market Research, to document all market research efforts in order to comply with this requirement. When the acquisition exceeds $1,000,000 in value, the file shall include written documentation that the commercial item definition has been met and the procedures at DFARS PGI 212.102(a) were followed (see DFARS 212.102). Use the Commercial Item Pre-Solicitation MFR at 13.500(S-91), Part II – Commerciality Determination, to document compliance with these requirements. Acquisitions that exceed $1,000,000 shall be approved at one level above the contracting officer when the commerciality determination is based on FAR 2.101(1)(ii), (3), (4) or (6) (see DFARS 212.102(a)(i)(C)). Procurements for depot level reparables do not require completion of this form, as market research/commercial item determinations are executed by the Military Services.

(2) Small Business Coordination. Complete DD Form 2579 or comparable small business documentation and forward to the Small Business Office/Small Business Specialist for concurrence. A Blanket DD Form 2579 for sole source acquisitions (items with Acquisition Method Code (AMC) of 3 and only one approved manufacturing source in item description) can be used for proposed procurements valued $650,000 or less, which may be solicited without individual review of the DD Form 2579.

(3) Acquisition Planning. Use the Commercial Item Pre-Solicitation MFR at 13.500(S-91), Part III – Contract Type (FAR 7.103(d)), Part IV – Consolidation/Bundling, and Part V – Past Performance Evaluation.

(4) Justification for Other Than Full And Open Competition. A Justification and Approval (J&A) is required only for sole source acquisitions. The contracting officer may approve the J&A for acquisitions valued less than $650,000. Competition Advocate approval is required for acquisitions valued $650,000 - $12,500,000, and the J&A must include a completed Commercial Item Pre-Solicitation MFR (see 13.500(S-91).) Legal review is required on all J&As for acquisitions valued over the simplified acquisition threshold.

(5) Synopsis. Synopsis is required.

(i) A period of less than 15 days may be established for issuance of the solicitation after synopsis in the FedBizOpps (see FAR 5.203(a)). In an effort to reduce administrative lead-time (ALT), a period of 5 days is recommended, as applicable to procurement situation.

(ii) A period of less than 30 days may be established for the solicitation response time. In an effort to reduce ALT, a solicitation response time of 10 days is recommended. The response time shall afford offerors a reasonable amount of time to respond (see FAR 5.203(b)). If the item is competitive, the solicitation response time is less than 30 days, and only one quote is received, the contracting officer shall re-solicit for a period of 30 days or request a waiver from the HCA to proceed with award.

(iii) EProcurement Users. Follow guidance at 13.500(S-92), RFQ Procedures in EProcurement. This is the SRM version of the Combined Synopsis/Solicitation, which should be posted for maximum of 10 days.

(iv) Streamlined Procedures for Evaluation and Solicitation for Commercial Items may be used (see FAR 12.603(b)).

(6) Issuance of Solicitation. A Request for Quotation will generally be used to solicit quotations for commercial items up to $6,500,000. In EProcurement, follow guidance at 13.500(S-92), RFQ Procedures in EProcurement.

(7) Evaluation and Award. Use procedures in FAR Part 13 to the maximum extent practicable when evaluating quotations. Use of FAR Part 15 is at the discretion of the contracting officer.

(i) Price and Award Justification. An explanation of the basis for the award decision should be tailored to the size and complexity of the acquisition. It must include a brief description of the procedures used in awarding the contract and the number of offers received. It must adequately explain and support price reasonableness. This can be documented using the Commercial Item Pre-Solicitation MFR at 13.500(S-91). Procedures at DLAD 13.106-3(b) may be used to document pricing.

(ii) Determination of Responsibility (See FAR 9.1). Documentation of award decision and Determination of Reasonability can be accomplished on the Commercial Item Pre-Solicitation MFR at 13.500(S-91).

(iii) Subcontracting Plans (see FAR 19.704). Required for large businesses for acquisitions valued greater than $650,000.

(iv) Award Preparation. Use SF Form 1449 for awards. Prepare bilateral purchase order for all SEPA acquisitions that were solicited orally.

(8) Mandatory FPDS Coding.

(i) EProcurement Users – Enter the following in the FPDS Data tray of the Header tab:

(A) Block “10H” Commercial Item Acquisition, choose “A” – Commercial Item.

(B) Block “10J” Commercial Item Test Program, choose “Y” – Commercial Item Test Program – Acquisition uses FAR 13.5 for Certain Commercial Items.

(ii) Non-EProcurement Users – Code the fields “Commercial Item Acquisition Procedures” and “Commercial Item Test Program” in the contract-writing system; or in FPDS when completing the Contract Action Report (CAR) (see “Competition Information”).

(S-91) Commercial item pre-solicitation documentation memorandum for record (MFR).



Commercial Test Procedures Under 13.5 are Applicable.

Market research was conducted prior to solicitation.

Solicitation #_______________, NSN(s)________________, Item ___________________

Part I – Market Research

Check applicable block(s) for technique(s) used to conduct market research and determine commerciality:

( ) Commercial-Off-the-Shelf Field is coded ____ (attach supporting documentation, including review of Material Master in SAP);

( ) Reviewed results of recent market research undertaken to meet similar or identical requirements;

( ) Queried Government-wide database of contracts and other procurement instruments intended for use by multiple agencies available at and other Government and commercial databases that provide information relevant to agency acquisitions;

( ) Reviewed catalogs and other generally available product literature published by manufacturers, distributors, and dealers or available on-line; or

( ) Contacted knowledgeable individuals in Government and industry regarding market capabilities to meet requirements.

Part II – Commerciality Determination

Please check to indicate completion:

( ) In accordance with FAR 10.002(b) and FAR 2.101, Definitions, a review has been conducted of the item description(s) to determine if commercial items or non-developmental items are available to meet the Government’s needs or could be modified to meet the Government’s needs. The items are deemed commercial based on the above market research.

Part III – Contract Type

Please check to indicate the type of contract

( ) FFP ( ) FFP with EPA

Part IV – Consolidation/Bundling

Please check to indicate if Consolidation or Bundling is applicable:

( ) Consolidation (Please see attached report/determination)

( ) Bundling (Please see attached report/determination)

Part V – Past Performance Evaluation

( ) Past Performance applicable

( ) Past Performance is not appropriate due to:


Based on the market research conducted, item(s) to be solicited against subject solicitation are determined to be commercial.


_______________________ ______

Contracting Officer Date

(S-92) Commercial evaluation/award documentation.



Part I

Determination of Responsibility: The awardee [insert CAGE Code] is hereby determined responsible.

Part II

Price is determined fair and reasonable based on:

___ Adequate competition

If only one response was received, price is determined fair and reasonable based on (insert narrative below):

___ Market Research

___ Comparison of proposed price with prices found reasonable on previous purchases

___ Current price lists, catalogs, or advertisements. (Inclusion of price in price list, catalog, or

advertisement does not, in and of itself, establish fairness and reasonableness of the price.)

___ Comparison with similar items in a related industry

___ Contracting officer’s personal knowledge of item being purchased

___ Comparison to independent Government estimate OR

___ Any other reasonable basis.

Additional Remarks:

Part III

Award Justification: [Insert narrative]


_______________________ ______

Contracting Officer Date

(S-93) RFQ Procedures in EProcurement. The contracting officer should address the same situations that apply to a non-commercial procurement (e.g., part number, critical item, configuration control, stock item, SBSA, PPIRS-SR, etc.). Use the SF 1449 to solicit commercial acquisitions. The only difference in soliciting is that the contracting officer must include commercial clauses.

(1) In Document Builder under the Header Tab, change Doc Selection to ZRFPCOM (for solicitation) and type in information.

(2) On Dialog Tab, select “Solicitation Type” under Document data group. Change Solicitation Type to Request for Quote (Part 12, Commercial or Request for Proposal (Part 12, Commercial). This option can be selected from the drop down menu.

(3) Click “Next” to move to “Select Solicitation Form,” and select SF 1449 from drop down menu.

(4) Click “Next” to move to “Selection Criteria,” and select Part 12 (Commercial) any Dollar Value. This selection can be made from the drop down menu.

(5) Click “Next” to move to “Overprints,” and select any applicable overprints. Please note there are no overprints for commercial.

(6) Click “Next” to move to “Provisions and Clauses,” and select appropriate clauses.

(7) Click “Next” to move to “Government Fill-ins.”

(S-94) FAR 13.5 procedures.

FAR 13.5 Procedures

For Acquisitions Exceeding the SAT But Less Than $6,500,000

(Document file in accordance with FAR 13.501(c).)

Standardized Processes


Market Research and Commercial Item Determination Memorandum Required

(FAR 10.001(a)(2)(ii), FAR 10.002, DFARS 212.102) – Conduct market research via review of

prior buys, Internet, and/or phone calls to potential sources. Complete MFR




(DLAD 13.500(S-91))

DD2579 – Required (DFARS 219.201) – Complete and send to Small Business Office.


Acquisition Plan- Not required per DFARS 207.103 but input into Milestone Tracker.


o Complete MFR


(DLAD 13.500(S-91))


1. Document selection of contract type (FAR 7.103(d))

2. Past Performance should be evaluated unless Contracting Officer documents the reasons why past performance is not an appropriate evaluation factor.

3. Bundling/consolidation need to be addressed if prior procurements were single NSN and requirement now combines multiple NSNs.

Justification for Other Than Full and Open Competition – Required for non-competitive

acquisitions (FAR 13.501, FAR 6.302, DFARS 206.302). Complete and have signed at appropriate level (<$650K, Contracting Officer; >$650K, Competition Advocate).


Higher Level/Legal Reviews – Documents below SAT remain at KO Level for review/approval


Synopsis/Solicitation: Required. (FAR 5.201, 12.204(b), 12.205(c)

10 (max)

This may be accomplished through 2 methods-

o (1) Synopsize in FedBizOpps. Recommend 5 days, but may shorten. Call suppliers for offers, allowing maximum of 5 days to respond to oral RFQ; OR

o (2) Issue combined synopsis/solicitation for maximum of 10 days. In EProcurement, use “RFQ Procedures in EProcurement” (DLAD 13.500(S-93)).

O NOTE 1: If acquisition is covered by World Trade Organization Government Procurement Agreement or Free Trade Agreement, longer synopsis times are required.

O NOTE 2: If only one offer received when competitive procedures are used, comply with DFARS 215.371-2.

O NOTE 3: Subcontracting Plans required for large businesses for acquisitions >$650,000.


Evaluating and Awarding: Use FAR Part 13 procedures to maximum extent (FAR 12.203, 12.209, 13.106-2, 13.106-3). Use of FAR Part 15 is at discretion of Contracting Officer.


o Ensure offers meet terms and conditions of RFQ (FAR 13.106-2).

O Evaluate past performance (unless waived).

O Evaluate pricing IAW FAR Part 13

o Negotiate if necessary. If Reverse Auction conducted, 2 days may be extended to 5 days.

O Document pricing on same basis as procurements valued between $25,000 and $150,000 (DLAD 13.106-3(b)).

O Document award decision/Determination of Responsibility (FAR 9.1, FAR 9.105-2, DFARS 209.1, DFARS PGI 209.1) on Commercial Item Pre-Solicitation MFR (DLAD 13.500(S-91).

O Complete award document; use SF1449, and insert commercial clauses:

o If solicited orally, develop bilateral purchase order;

o If solicited via RFQ, develop unilateral purchase order.









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