13.001 Definitions
Source: FAR 13.001 on acquisition.gov
FAR 13.001 defines essential terms for simplified acquisitions, ensuring only authorized individuals use approved payment methods for small-dollar government purchases.
Overview
FAR 13.001 provides definitions for key terms used throughout Part 13, which covers Simplified Acquisition Procedures. Understanding these definitions is essential for contracting professionals to ensure proper application of the rules and procedures in this part. The section clarifies who is authorized to make purchases, the types of payment methods permitted, and the specific terminology related to small-dollar acquisitions. These definitions form the foundation for compliance and proper execution of simplified acquisitions within federal agencies.
Key Rules
- Authorized Individual
- Only persons granted authority under agency procedures may acquire supplies and services under Part 13.
- Governmentwide Commercial Purchase Card
- This card functions like a commercial credit card and is used by authorized personnel for purchasing and payment.
- Imprest Fund
- A fixed cash fund used for small cash payments, managed by a designated cashier.
- Third Party Draft
- An agency-issued bank draft, similar to a check, used for acquiring and paying for supplies and services.
Responsibilities
- Contracting Officers: Ensure only authorized individuals make purchases and use approved payment methods.
- Contractors: Understand and accept the payment methods defined in this section.
- Agencies: Establish procedures for granting authority and managing payment instruments.
Practical Implications
- This section ensures clarity and consistency in terminology for simplified acquisitions.
- Proper understanding prevents unauthorized purchases and misuse of payment methods.
- Misinterpretation of these terms can lead to compliance violations or improper payments.
As used in this part-
Authorized individual means a person who has been granted authority, in accordance with agency procedures, to acquire supplies and services in accordance with this part.
Governmentwide commercial purchase card means a purchase card, similar in nature to a commercial credit card, issued to authorized agency personnel to use to acquire and to pay for supplies and services.
Imprest fund means a cash fund of a fixed amount established by an advance of funds, without charge to an appropriation, from an agency finance or disbursing officer to a duly appointed cashier, for disbursement as needed from time to time in making payment in cash for relatively small amounts.
Third party draft means an agency bank draft, similar to a check, that is used to acquire and to pay for supplies and services. (See Treasury Financial Management Manual, Section 3040.70.)