13.302-2 Unpriced purchase orders
Source: FAR 13.302-2 on acquisition.gov
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.
(a) An unpriced purchase order is an order for supplies or services, the price of which is not established at the time of issuance of the order.
(b) An unpriced purchase order may be used only when-
(1) It is impractical to obtain pricing in advance of issuance of the purchase order; and
(2) The purchase is for-
(i) Repairs to equipment requiring disassembly to determine the nature and extent of repairs;
(ii) Material available from only one source and for which cost cannot readily be established; or
(iii) Supplies or services for which prices are known to be competitive, but exact prices are not known (e.g., miscellaneous repair parts, maintenance agreements).
(c) Unpriced purchase orders may be issued on paper or electronically. A realistic monetary limitation, either for each line item or for the total order, shall be placed on each unpriced purchase order. The monetary limitation shall be an obligation subject to adjustment when the firm price is established. The contracting office shall follow up on each order to ensure timely pricing. The contracting officer or the contracting officer’s designated representative shall review the invoice price and, if reasonable (see 13.106-3(a)), process the invoice for payment.