13.203 Purchase guidelines
Source: FAR 13.203 on acquisition.gov
FAR 13.203 streamlines micro-purchase procedures by allowing awards without competitive quotations if prices are reasonable, while emphasizing equitable supplier distribution and minimal documentation.
Overview
FAR 13.203 provides guidelines for making micro-purchases, focusing on solicitation, evaluation, award, and documentation requirements. The section emphasizes equitable distribution of purchases among qualified suppliers, allows for streamlined procedures when price is deemed reasonable, and outlines when price reasonableness verification is necessary. It also addresses minimal documentation requirements when awards are made to other than the lowest quoter after soliciting competitive quotations.
Key Rules
- Equitable Distribution
- Micro-purchases should be distributed fairly among qualified suppliers whenever possible.
- Competitive Quotations Not Always Required
- Awards can be made without soliciting competitive quotations if the price is considered reasonable by the contracting officer or authorized individual.
- Price Reasonableness Verification
- Verification is only required if there is suspicion of unreasonable pricing or if no comparable pricing information is available.
- Documentation for Non-Lowest Award
- If competitive quotes are solicited and the award is not made to the lowest quoter, documentation should identify the solicited concerns and explain the award decision.
Responsibilities
- Contracting Officers: Ensure equitable distribution, determine price reasonableness, verify pricing when necessary, and document decisions when not awarding to the lowest quoter.
- Contractors: Provide competitive quotations when solicited and maintain transparency in pricing.
- Agencies: Oversee compliance with equitable distribution and documentation requirements.
Practical Implications
- This section streamlines micro-purchase procedures, reducing administrative burden while maintaining fairness and price reasonableness. It allows for flexibility in awarding purchases and limits documentation to essential information, but requires vigilance to prevent overpricing and ensure transparency.
(a) Solicitation, evaluation of quotations, and award.
(1) To the extent practicable, micro-purchases shall be distributed equitably among qualified suppliers.
(2) Micro-purchases may be awarded without soliciting competitive quotations if the contracting officer or individual appointed in accordance with 1.603-3(b) considers the price to be reasonable.
(3) The administrative cost of verifying the reasonableness of the price for purchases may more than offset potential savings from detecting instances of overpricing. Therefore, action to verify price reasonableness need only be taken if-
(i) The contracting officer or individual appointed in accordance with 1.603-3(b) suspects or has information to indicate that the price may not be reasonable (e.g., comparison to the previous price paid or personal knowledge of the supply or service); or
(ii) Purchasing a supply or service for which no comparable pricing information is readily available (e.g.,a supply or service that is not the same as, or is not similar to, other supplies or services that have recently been purchased on a competitive basis).
(b) Documentation. If competitive quotations were solicited and award was made to other than the low quoter, documentation to support the purchase may be limited to identification of the solicited concerns and an explanation for the award decision.