8.406-1
Order placement
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.