13.302-2
Unpriced purchase orders
Unpriced purchase orders are permitted only in specific situations where advance pricing is impractical, and must include a realistic monetary limit and timely follow-up for pricing and payment.
Overview
- FAR 13.302-2 outlines the requirements and limitations for issuing unpriced purchase orders, which are orders where the price is not determined at the time of issuance. This section provides guidance on when such orders are appropriate, the conditions under which they may be used, and the necessary controls to ensure proper pricing and payment.
Key Rules
- When Unpriced Purchase Orders May Be Used
- Only allowed when it is impractical to obtain pricing in advance and for specific types of purchases (e.g., repairs requiring disassembly, sole-source materials, or competitive but indeterminate pricing situations).
- Monetary Limitations
- Each unpriced purchase order must include a realistic monetary limitation for each line item or the total order, which serves as an obligation subject to later adjustment.
- Issuance and Follow-Up
- Orders can be issued on paper or electronically. The contracting office must follow up to ensure timely pricing and review invoice prices for reasonableness before payment.
Responsibilities
- Contracting Officers: Must ensure unpriced purchase orders are used only under specified conditions, set monetary limits, follow up for timely pricing, and review invoice prices for reasonableness.
- Contractors: Must provide pricing information as soon as practicable and submit invoices for review.
- Agencies: Must maintain oversight to ensure compliance with monetary limitations and timely pricing.
Practical Implications
- This section exists to allow flexibility in urgent or uncertain pricing situations while maintaining fiscal control and oversight. It impacts daily contracting by requiring careful justification, documentation, and follow-up for unpriced orders. Common pitfalls include failing to set monetary limits, inadequate follow-up, or processing unreasonable invoice prices.