13.201 General
Source: FAR 13.201 on acquisition.gov
FAR 13.201 streamlines micro-purchases but enforces strict prohibitions and compliance requirements, making it essential for contracting professionals to stay updated on thresholds and restricted products or services.
Overview
FAR 13.201 outlines the general rules and requirements for government purchases at or below the micro-purchase threshold. It encourages agency heads to delegate micro-purchase authority and establishes the Governmentwide commercial purchase card as the preferred payment method. Purchases at or below the threshold can use any authorized method, provided the purchaser is trained and authorized. Most FAR provisions and clauses are not required for micro-purchases, except as specified in 13.202 and 32.1110. However, requirements from FAR Part 8 (Required Sources of Supplies and Services) and 23.1 (Sustainable Acquisition Policy) still apply. The section also details increased micro-purchase thresholds for certain emergency, contingency, or disaster-related acquisitions, and outlines specific prohibitions on purchases involving Kaspersky Lab products, covered telecommunications equipment, TikTok, certain supply chain sources, and unmanned aircraft systems. Exemptions from System for Award Management (SAM) debt checks for micro-purchases made with the purchase card are also provided.
Key Rules
- Delegation of Authority
- Agency heads are encouraged to delegate micro-purchase authority to appropriate personnel.
- Preferred Payment Method
- The Governmentwide commercial purchase card should be used for micro-purchases whenever possible.
- Authorized Methods and Training
- Purchases must be made by authorized and trained personnel using approved methods.
- Clauses and Provisions
- Micro-purchases generally do not require FAR clauses, except as specified.
- Applicability of Other FAR Parts
- Requirements from FAR Parts 8 and 23.1 still apply to micro-purchases.
- Increased Thresholds for Emergencies
- Higher micro-purchase thresholds apply for certain contingency, disaster, or emergency operations.
- Prohibitions
- Restrictions apply to purchases involving Kaspersky Lab, covered telecom equipment, TikTok, certain supply chain sources, and drones.
- SAM Exemption
- Purchase card micro-purchases are exempt from SAM debt checks under the Treasury Offset Program.
Responsibilities
- Contracting Officers: Ensure micro-purchases comply with all applicable prohibitions, thresholds, and required procedures; delegate authority appropriately; verify training and authorization of purchasers.
- Contractors: Avoid offering prohibited products or services; comply with all relevant restrictions and requirements for micro-purchases.
- Agencies: Oversee delegation, training, and compliance with prohibitions and reporting as required.
Practical Implications
This section streamlines small-dollar purchases, reducing administrative burden while maintaining key compliance safeguards. Contractors must be vigilant about prohibited products and services, even for micro-purchases. Agencies and contracting officers must ensure proper delegation, training, and adherence to evolving prohibitions and thresholds. Common pitfalls include overlooking new prohibitions or failing to use the preferred payment method.
(a) Agency heads are encouraged to delegate micro-purchase authority (see 1.603-3).
(b) The Governmentwide commercial purchase card shall be the preferred method to purchase and to pay for micro-purchases (see 2.101).
(c) Purchases at or below the micro-purchase threshold may be conducted using any of the methods described in subpart 13.3, provided the purchaser is authorized and trained, pursuant to agency procedures, to use those methods.
(d) Micro-purchases do not require provisions or clauses, except as provided at 13.202 and 32.1110. This paragraph takes precedence over any other FAR requirement to the contrary, but does not prohibit the use of any clause.
(e) The requirements in part 8 apply to purchases at or below the micro-purchase threshold.
(f) The procurement requirements in 23.1 apply to purchases at or below the micro-purchase threshold.
(g)
(1) For acquisitions of supplies or services that, as determined by the head of the agency, are to be used to support a contingency operation; to facilitate defense against or recovery from cyber, nuclear, biological, chemical, or radiological attack; 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 http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2292&num=0&edition=prelim" target="_blank">22 U.S.C. 2292 et seq; or to support response to an emergency or major disaster (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5122&num=0&edition=prelim" target="_blank">42 U.S.C. 5122), the micro-purchase threshold is—
(i) $25,000 in the case of any contract to be awarded and performed, or purchase to be made, inside the United States; and
(ii) $40,000 in the case of any contract to be awarded and performed, or purchase to be made, outside the United States.
(2) Purchases using this authority must have a clear and direct relationship to the support of a contingency operation; or the defense against or recovery from cyber, nuclear, biological, chemical, or radiological attack; international disaster assistance; or an emergency or major disaster.
(h) When using the Governmentwide commercial purchase card as a method of payment, purchases at or below the micro-purchase threshold are exempt from verification in the System for Award Management as to whether the contractor has a delinquent debt subject to collection under the Treasury Offset Program (TOP).
(i) Do not purchase any hardware, software, or services developed or provided by Kaspersky Lab that the Government will use on or after October 1, 2018. (See 4.2002).
(j)
(1) On or after August 13, 2019, do not procure or obtain, or extend or renew a contract to procure or obtain, any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system, unless an exception applies or a waiver is granted. (See subpart 4.21.)
(2) On or after August 13, 2020, agencies are prohibited from entering into a contract, or extending or renewing a contract, with an entity that uses any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system, unless an exception applies or a waiver is granted (see subpart 4.21). This prohibition applies to the use of covered telecommunications equipment or services, regardless of whether that use is in performance of work under a Federal contract.
(k) The prohibition in subpart 4.22 on use of a covered application (“TikTok”) applies to purchases at or below the micro-purchase threshold where the performance of the contract may require the presence or use of a covered application, (e.g., where social media advertising services might be part of the procurement), unless an exception is granted in accordance with Office of Management and Budget Memorandum M-23-13 (see 4.2202).
(l) Do not procure or obtain, or extend or renew a contract to procure or obtain, any covered article, or any products or services produced or provided by a source, including contractor use of covered articles or sources, if prohibited from doing so by an applicable Federal Acquisition Supply Chain Security Act (FASCSA) order issued by the Director of National Intelligence, Secretary of Defense, or Secretary of Homeland Security (see 4.2303).
(m) The prohibitions on unmanned aircraft systems (e.g., drones) in 40.202 apply to purchases at or below the micro-purchase threshold.