13.302-1 General
Source: FAR 13.302-1 on acquisition.gov
Purchase orders under simplified acquisition procedures must be fixed-price, clearly detailed, and require electronic payment unless exempted, ensuring clarity and compliance for both parties.
Overview
FAR 13.302-1 outlines the general requirements for issuing purchase orders under simplified acquisition procedures. It establishes that, except for unpriced purchase orders, purchase orders are typically fixed-price and must include specific details such as quantity, delivery or performance dates, inspection requirements, shipping terms, and any applicable discounts. The section also addresses signature requirements, distribution of purchase order copies, and mandates electronic funds transfer (EFT) for payments unless an exception applies. These rules ensure clarity, accountability, and compliance in the purchase order process for both contracting officers and contractors.
Key Rules
- Fixed-Price Basis
- Purchase orders are generally issued as fixed-price contracts, except for unpriced purchase orders.
- Essential Order Details
- Orders must specify quantity/scope, delivery/performance dates, inspection requirements, shipping terms (f.o.b. destination), and discounts.
- Inspection and Acceptance
- Inspection is generally at destination unless otherwise required; advance notice and prompt receiving reports are required.
- Signature Requirements
- Contracting officers must sign purchase orders per FAR 4.101 and 2.101, with electronic/facsimile signatures permitted.
- Distribution Limits
- Distribute purchase order copies only as necessary for administration.
- Electronic Funds Transfer (EFT)
- EFT is required for payments unless exempted, and quoters must be informed of the EFT clause.
Responsibilities
- Contracting Officers: Ensure all required details are included, use proper signatures, limit distribution, and inform quoters about EFT.
- Contractors: Comply with specified delivery, inspection, and payment terms.
- Agencies: Oversee compliance with purchase order requirements and payment procedures.
Practical Implications
- This section ensures purchase orders are clear, enforceable, and compliant with federal requirements, reducing disputes and payment delays. Contractors must pay close attention to order details and payment methods. Common pitfalls include missing required information, improper signatures, or failing to inform quoters about EFT requirements.
(a) Except as provided under the unpriced purchase order method (see 13.302-2), purchase orders generally are issued on a fixed-price basis. See 12.207 for acquisition of commercial products and commercial services.
(b) Purchase orders shall-
(1) Specify the quantity of supplies or scope of services ordered;
(2) Contain a determinable date by which delivery of the supplies or performance of the services is required;
(3) Provide for inspection as prescribed in part 46. Generally, inspection and acceptance should be at destination. Source inspection should be specified only if required by part 46. When inspection and acceptance will be performed at destination, advance copies of the purchase order or equivalent notice shall be furnished to the consignee(s) for material receipt purposes. Receiving reports shall be accomplished immediately upon receipt and acceptance of supplies;
(4) Specify f.o.b. destination for supplies to be delivered within the United States, except Alaska or Hawaii, unless there are valid reasons to the contrary; and
(5) Include any trade and prompt payment discounts that are offered, consistent with the applicable principles at 14.408-3.
(c) The contracting officer’s signature on purchase orders shall be in accordance with 4.101 and the definitions at 2.101. Facsimile and electronic signature may be used in the production of purchase orders by automated methods.
(d) Limit the distribution of copies of purchase orders and related forms to the minimum deemed essential for administration and transmission of contractual information.
(e) In accordance with http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3332&num=0&edition=prelim" target="_blank">31 U.S.C.3332, electronic funds transfer (EFT) is required for payments except as provided in 32.1110. See subpart 32.11 for instructions for use of the appropriate clause in purchase orders. When obtaining oral quotes, the contracting officer shall inform the quoter of the EFT clause that will be in any resulting purchase order.