8.406-1 Order placement
Source: FAR 8.406-1 on acquisition.gov
FAR 8.406-1 mandates specific procedures and detailed information requirements for placing orders under Federal Supply Schedule contracts to ensure compliance and efficient order processing.
Overview
FAR 8.406-1 outlines the procedures and requirements for placing orders under Federal Supply Schedule (FSS) contracts. It specifies when oral orders are permitted, acceptable order formats, and the mandatory information that must be included in each order. The regulation ensures that orders are placed directly with contractors in accordance with contract terms and that all statutory and regulatory requirements are met before order placement. This section is crucial for ensuring consistency, compliance, and clarity in the ordering process for supplies and services under schedule contracts.
Key Rules
- Oral Orders Restrictions
- Oral orders are generally allowed except for (a) supplies/services with a statement of work exceeding the simplified acquisition threshold, (b) services requiring a statement of work, and (c) brand-name orders over $25,000.
- Order Formats
- Orders may be placed using Optional Form 347, an agency-specific form, or an approved electronic format.
- Direct Placement and Compliance
- Orders must be placed directly with the contractor, following the contract’s terms and ensuring all agency requirements are met before placement.
- Required Order Information
- Orders must include detailed information such as shipping/billing addresses, contract/order numbers, delivery terms, item descriptions, quantities, prices, and any special requirements.
Responsibilities
- Contracting Officers/Ordering Activities: Ensure orders comply with format and content requirements, verify all agency and regulatory requirements are met, and use appropriate ordering methods.
- Contractors: Fulfill orders as specified, ensuring all details and requirements are addressed.
- Agencies: Oversee compliance with statutory and regulatory requirements before order placement.
Practical Implications
- This section standardizes the ordering process, reducing errors and ensuring all necessary information is provided for efficient fulfillment. Failure to include required details or follow proper procedures can delay orders or result in non-compliance findings during audits.
(a) Ordering activities may place orders orally, except for-
(1) Supplies and services not requiring a statement of work exceeding the simplified acquisition threshold;
(2) Services requiring a statement of work (SOW); and
(3) Orders containing brand-name specifications that exceed $25,000.
(b) Ordering activities may use https://www.gsa.gov/forms-library/order-supplies-and-services-0" target="_blank">Optional Form 347, an agency-prescribed form, or an established electronic communications format to order supplies or services from schedule contracts.
(c) The ordering activity shall place an order directly with the contractor in accordance with the terms and conditions of the price lists (see 8.402(b)). Prior to placement of the order, the ordering activity shall ensure that the regulatory and statutory requirements of the requiring agency have been applied.
(d) Orders shall include the following information in addition to any information required by the schedule contract:
(1) Complete shipping and billing addresses.
(2) Contract number and date.
(3) Agency order number.
(4) F.o.b. delivery point; i.e., origin or destination.
(5) Discount terms.
(6) Delivery time or period of performance.
(7) Special item number or national stock number.
(8) Line item or subline item.
(9) A statement of work for services, when required, or a brief, complete description of each item (when ordering by model number, features and options such as color, finish, and electrical characteristics, if available, must be specified).
(10) Quantity and any variation in quantity.
(11) Number of units.
(12) Unit price.
(13) Total price of order.
(14) Points of inspection and acceptance.
(15) Other pertinent data; e.g., delivery instructions or receiving hours and size-of-truck limitation.
(16) Marking requirements.
(17) Level of preservation, packaging, and packing.