CHANGE REQUEST COVER SHEET |
|
|
Change Request Number: 07-55 |
Date Received: 10/1/2007 |
|
Title: Procurement Planning and Commercial and Simplified Purchase Method |
|
| SECTIONS EDITED: |
|
| SECTIONS EDITED: |
The program official furnishes evidence of certain required clearances, approvals, and justifications with the PR package. This information varies, depending on the nature of requirement, procurement strategy, and dollar value. The program official should consult with the CO to determine applicability of each of the below clearances, documentation, and approvals to the particular requirement. Documentation or other evidence for the below forms part of the PR package (the below is not all inclusive nor will it apply to each procurement action):
a. Chief Financial Officer Approval. For a single or cumulative expenditure over $10M, the PR package must include evidence of Chief Financial Officer’s authorization. (See AMS Procurement Guidance T3.2.4 Chief Financial Officer Requirements for additional information.)
b. Deputy Administrator Approval of Support Services. Requirements for single source support services (and for support services in which less than three offers were received) with a total estimated value of $1 million or more must be justified, reviewed by appropriate management officials, and approved by the Deputy Administrator. (See AMS Procurement Guidance T3.8.2 Service Contracting for more information).
c. Accountable Personal Property. FAA’s financial standards and annual audit requirements require accurate recording of personal property acquisitions. Prior to establishing a requisition within PRISM, the appropriate projects and tasks must be established within the DELPHI Project Accounting (PA) module. Each line item on a requisition must have at least one (but can have more than one) project and task associated with it. The CO will use the line item structure contained in the requisition when setting up the Contract Line Item Number (CLIN) structure.
d. Government Furnished Property, Information, or Material. The PR package identifies Government property, information, or material. FAA property is managed, transferred, and added to agency records through the Automated Inventory Tracking System (AITS). Any special restrictions or conditions, such as property provided “as is,” security issues, or special handling should also be specified.
e. Personal Property from Commercial Sources. Before initiating a requisition to obtain personal property, program officials must determine if the property is available for reuse from an FAA or other Government source, as required by FAA Order 4800.2C (May 31, 1996) and FAA Reutilization and Disposition Process & Procedure Guide, dated October 2006, available on-line at: http://ats.awa.faa.gov/aaf/afz/500/processguides/processguides.html
f. Project Materiel. Materiel for projects is requisitioned through the Logistics and Inventory System (LIS) Project Materiel Management System (PMMS). For further information on acquiring materiel, refer to the Project/Materiel Management Desk Guide, available online at: https://intranet.faa.gov/FaaEmployees/org/staffoffices/aba/assets/material_management/
g. Section 508 of the Rehabilitation Act. Acquisition of electronic and information technology (EIT) must comply with Section 508 requirements for accessibility. The program official must document EIT non-availability, including market research performed and standards that cannot be met. For further information, see AMS Guidance T3.2.2 Source Selection or the FAA Section 508 website at: www.faa.gov/about/office_org/headquarters_offices/aio/e_gov/sec_508/
h. Personnel Security. For individuals that may need access to FAA facilities, sensitive unclassified information, or resources, the contract contains sufficient language in the security clause to meet that objective. For specific guidance and regulations, see the applicable personnel security orders (FAA Order 1600.1E “Personnel Security Program” and FAA Order 1600.72A “Contractor and Industrial Security Program”). FAA Form 1600-77, Contractor Position Risk/Sensitivity Level Designation Record, is used by the Operating Office to make initial position risk/sensitivity level designations based on the initial list of positions and the Statement of Work (SOW).
i. Sensitive Unclassified Information. Coordinate with the local FAA Servicing Security Element (SSE) for the minimum standards to mark, store, control, transmit, and destroy Sensitive Unclassified Information, For Official Use Only, Sensitive Security Information, or unclassified information that may be withheld from public release. (See FAA Order 1600.75 or AMS Procurement Guidance T3.14.1 Security for additional information.)
j. Classified Information. The PR package should identify any requirements for handling of classified materials or for access of contractor personnel to classified information. (See FAA Order 1600.2E “Safeguarding Classified National Security Information” for additional information).
k. Information Systems Security. The FAA must ensure that all information systems are protected from threats to integrity, availability, and confidentiality. (See FAA Order 1370.82A for additional information.)
l. Paperwork Reduction Act. The FAA must obtain approval to collect information, through questionnaires, focus groups, telephone surveys, applications, performance reports, customer satisfaction surveys, studies and evaluations, interviews, forms, and other means of requesting information, from ten or more respondents. Requirements must be coordinated first through the FAA Information Clearance Officer (AIO-20) and then clearance obtained from Office of Management and Budget (OMB).
m. Privacy Act. When a requirement involves the design, development or operation of a system of records on individuals for an agency function, the statement of work must identify FAA rules and regulations implementing the Privacy Act. (See FAA Order 1280.1A “Protecting Privacy of Information About Individuals.”)
n. Printing or Duplicating or Purchase or Lease of Copying Equipment. For printing or duplicating services to be performed either by Government Printing Office (GPO) or outside printing businesses, coordinate with the cognizant FAA printing management office. Purchase or lease of duplicators or electronic copiers over $100,000 must be approved. For Headquarters acquisitions, coordinate with the Corporate Information Division (ABA-10); Region, Center and Service Area acquisitions, with the servicing printing management organization.
o. NAS Specifications. Specifications for acquisitions under the Capital Improvement Program (CIP) are baselined and under configuration control. A requisition for NAS program specification change must include evidence of approval by the NAS Configuration Control Board.
p. Options. If optional quantities or services are to be included, the PR package should state the basis for evaluating the offerors' proposals. The PR package should indicate whether it is expected that offers will be evaluated for award purposes only on the basis of the price for the basic requirement exclusive of options, or price inclusive of options.
q. Warranty. Warranties should be cost beneficial. For other than standard commercial warranty generally accepted as included with basic purchase price, the PR package should include an analysis of the costs of a warranty and its administration, versus the benefits of liability deferral.
r. Liquidated Damages. Before liquidated damages provisions may be included in a contract, the program official must adequately justify and document the basis for amounts to be assessed. (See AMS Procurement Guidance T3.8.7 Construction Contracting for more information.)
s. Brand Name Products. When a brand name or equal description is used, the PR package must state the brand name product and salient physical, functional, performance, and interoperability or interface characteristics of the brand name product so that vendors may offer alternative but equal products. Brand name-mandatory descriptions identify a specific make, model, or catalog number, and manufacturer of a product. This type of description differs from brand name or equal because vendors may not provide an equal item. For brand name-mandatory, a single source justification is required with the PR package. (See AMS Procurement Guidance T3.2.2.8 Describing Needs for more information.)
t. Recovered Materials. Program officials are responsible for defining product specifications, utilizing FAA’s minimum content standards or preference standards, when procuring EPA-designated items. The program official should provide a written determination certifying that the statement of work/specifications for materials/services specified complies with the FAA’s preference standards for recovered materials. (See AMS Procurement Guidance T3.6.3 Environment, Conservation and Energy for additional information.)
u. Recycled Content. Purchases of EPA-designated recycled content products must meet or exceed EPA guideline standards, unless price, performance, or availability justifies not doing so. The program official should document this determination. (See AMS Procurement Guidance T3.6.3 Environment, Conservation and Energy for additional information.)
v. Capital Versus Non-Capital Lease Determination. The FAA is required to capitalize certain improvements in both owned and leased space. In addition, the FAA (to include the Operating Office, RECO, and accounting) is required to make a determination as to whether leases (including real property leases) are capital or operating leases and insure they are recorded and filed accordingly. (See AMS Real Estate Guidance 3.1.5 Capitalization for additional information and applicable forms.)
w. Personal Services. Personal services contracts are permissible if appropriately justified and approved by senior management. The PR package must include evidence of this approval. (See AMS Procurement Guidance T3.8.2 Service Contracting for more information.)
x. Single Source Justification. When in FAA’s best interests, a single source procurement may be appropriate. The program official should prepare a justification documenting the rational basis for using a single vendor. (See AMS Procurement Guidance T3.2.2.4 Single Source for additional information.)
y. Technical Evaluation Factors/Plan. Technical evaluation factors must be approved before issuing a solicitation. The program official must provide the factors and plan for evaluating technical proposals.
z. Earned Value Management System (EVMS). An earned value management system (EVMS) is required for projects involving development, modernization, or enhancement estimated at $10M or more. Program officials should consult with the FAA’s EVM Focal Point (AJA-42) to determine appropriate EVMS certification, review, and reporting requirements. (See AMS Earned Value Management Guide for additional information.)
a. The FAA purchase card i.e., SmartPay Card, is the internationally accepted Mastercard credit card. The purchase card is issued through General Services Administration (GSA) contract with a credit card bank, e.g., U.S. Bank. FAA employees who receive training and a Delegation of Purchasing Authority (DPA) are authorized to use the card, within the specified dollar limits, to acquire products and services.
b. GSA is responsible for both administering the contract and dealing with the day-to-day operations of the Government-wide Purchase Card Program. The GSA Contracting Officer is the only individual authorized to alter the terms and conditions of the contract. Copies of the contract, GS-23F-980002, may be obtained from the following address: General Services Administration, Federal Supply Service, Services Acquisition Center FCXST, Washington D.C. 20406. The address of U.S. Bank is: U.S. Bank Government Services; P.O. Box 6347; Fargo, ND 58125-6347. The telephone number is 1-888-994-6722 or call collect to 1-701-461-2232 if outside the United States.
c. The FAA purchase card is intended to streamline procurement and payment procedures and reduce the administrative burden associated with traditional and emergency purchasing of products and services under the commercial and simplified acquisition procedures. The purchase card is used to pay for authorized government purchases and should be the "primary purchasing method" when vendors accept credit cards for commercial and simplified purchases, unless otherwise prohibited (See paragraph 1.f (2) Prohibited Purchases).
d. The card issuing bank, U.S. Bank has established an authorization process whereby the vendor checks via a telecommunications system each time the purchase card is used. This authorization ensures that the purchase is within the limits established for each individual account.
e. Key Management Officials
The roles and responsibilities of persons in the purchase card program are identified in the following Sections e(1) through e(6).
(1) The Manager, Procurement Information and Services Team, AJA-432, is responsible for the overall management of the purchase card program.
(2) The Chief of the Contracting Office (COCO) for the Purchase Card Program is a Government employee who is responsible for the activities identified in Sections (2)(a) through 2(e).
(a) Manage the FAA Purchase Card Program.
(b) Designate in writing the Agency Program Coordinator (APC)
(c) Issue a Delegation of Purchasing Authority (DPA) Letter to non-warranted individuals. The DPA establishes the maximum single purchase and monthly spending limits.
(d) Monitor purchase card program internal operating procedures, misuse of purchase cards, and compliance with FAA policy and procedures. The COCO has the authority to re-delegate this responsibility to an individual within their organization.
(e) Receive reports from APC of fraudulent or improper use of the purchase card, and take necessary actions to notify appropriate managers, security and investigative organizations, and/or take administrative actions to suspend the purchase card.
(3) The Agency Program Coordinator (APC) and/or alternate APC are Government employees who receive a written letter from the COCO designating them as the APC or alternate. The letter describes their roles and responsibilities. The APC or alternate must not be a purchase cardholder. The responsibilities of the APC or alternate are identified in Sections (3)(a) through (3)(o).
(a) Receive application from the approving official for new purchase cardholder and submits the approved purchase card forms to the card issuing bank for processing.
(b) Receive request from the approving official for changes in individual cardholder's single and monthly spending limits and submits changes to the card issuing bank for making changes.
(c) Submit changes in cardholders approving officials, and cardholder's account cancellations to the card issuing bank for making changes.
(d) Ensure new cardholders and approving officials receive initial training on purchase card procedures and refresher training every two years.
(e) Establish and maintain a tracking system to monitor account information (to include changes in address, telephone number, single/or monthly spending limits and approving official).
(f) Perform data mining to identify questionable purchases and notifies the COCO and appropriate manager for action as needed.
(g) Work with lines of business towards obtaining an acceptable ratio of no more than 10 cardholders per approving official.
(h) Cancel the purchase cards of cardholders who transfer to another organization or leave the Agency.
(i) Cancel multiple purchase card accounts.
(j) Cancel cardholder purchase card accounts that are not used within 1 year.
(k) Review and restrict specific merchant codes to reduce the risk of fraud or misuse.
(l) Report fraudulent or improper use of the purchase card to the COCO for action as needed.
(m) Recommend to COCO the suspension for six months the purchase card privileges on noncompliant cardholders, and ensure remedial training is provided and completed by the cardholder before card privileges are restored.
(n) Take initial and then refresher training every two years. The initial minimum training requirements include the following:
- GSA SmartPay Training on-line;
- Access online training;
- Simplified Acquisition Procedures Course;
- Appropriation Law Course.
- Refresher training may include participation in DOT or GSA training conferences.
(o) Provide monitoring and oversight of approving officials to ensure segregation of duties and compliance with FAST. The checklist guide of items monitored by the APC is contained in Section D, Appendix 5.
(4) The National Purchase Card Coordinator (NPC) is a Government employee who provides National program monitoring and oversight of the purchase card program. In addition, the NPC provides liaison between purchase card activities in regions, centers, headquarters, the Department of Transportation (DOT), and external government organizations. The NPC is responsible for the activities identified in Sections (4)(a) through (4)(e).
(a) Conduct FAA-wide reviews of the purchase card program, and national program monitoring and oversight, and prepare reports for submission to the COCO. The reports contain findings and corrective actions. A checklist of interal controls monitored by the NPC and the corrective action guide is contained in Section D, Appendix 6.
(b) Serve as liaison for the Director, Acquisition Policy and Contracting, AJA-4, with the General Accounting Office (GAO), Inspector General Office (IG), DOT, and FAA headquarters, regions, and centers organizations on purchase card inquiries and issues
(c) Coordinate requests for evaluating and auditing the purchase card program.
(d) Initiate and coordinate policy and guidance changes for the purchase card program.
(e) Take initial training and then refresher training every two years. The training requirements are the same as those identified for the APC (Section A.1e(3)(m)).
(5) The Approving Official (AO) is a Government employee who is responsible for the activities identified in Sections (5) (a) through (5) (i).
(a) Take initial training and then refresher training every two years. The minimum training requirements include the following:
- GSA SmartPay Training that is on-line. A copy of the training certificate is provided to the APC;
- The bank's computer system training that is on-line and identified as Access online;
- Review of the purchase card program requirements that are in FAST, Procurement Guidance, Section T3.2.2.5, and submit a signed statement to the APC indicating that they (approving officials) have read, understands and agrees to follow guidelines for the purchase card program;
- Review of the property control requirements that are contained in FAA Order 4650.21 C.
Refresher training includes providing a certification to the APC that the AO has read, understands, and agrees to follow all local and national guidance covered in the initial purchase card training. The certification form is available at the web site: http://faapcard.amc.faa.gov.
(b) Establish internal controls to ensure prior approval by cardholder and the segregation of duties. Key duties and responsibilities in authorizing, processing/recording, certifying availability of funds, and reviewing official agency transactions should be separated among individuals. Note, the individual who makes the purchase cannot be the same individual who approves the purchase;
(c) Establish procedures to ensure that cardholder purchase card files are retained in the office when a cardholder transfers to another office or leaves the agency;
(d) Submit the application for a new purchase cardholder to the APC for establishing a new Cardholder's account;
(e) Validate accounting classification code data contained on the bank statement to ensure correct accounting string;
(f) Ensure the cardholder validates approved purchases, credit refunds, and that purchases are within authorized spending limits;
(g) Submit a written request to the APC to change the cardholder's single and/or monthly purchase limit;
(h) Report fraudulent or improper use of the purchase card to the APC;
(i) Conduct reviews of internal controls at least on a quarterly basis (i.e., March June, September, and December), and take corrective actions if needed.
(6) The Cardholder is a Government employee who makes purchases and is responsible for activities identified in Sections (6)(a) through (6)(h).
(a) Take initial training and then refresher training every two years. The minimum training requirements include the following:
- GSA Smart Pay Training that is on-line. A copy of the training certificate is provided to the APC;
- The bank's computer system training that is on-line and identified as Access online;
- Review of the purchase card program requirements that are in FAST, Procurement Guidance, Section T3.2.2.5;
- Review of the property control requirements that are contained in FAA Order 4650.21C.
Refresher training includes providing a certification to the APC that the cardholder has read, understands, and agrees to follow all local and national guidance covered in initial purchase card training. The certification form is available at the web site: http://faapcard.amc.gov.
(b) Safeguard the purchase card and account number. Only the individual whose name appears on the card is authorized to use it. Allowing someone other than the cardholder to use the card, or sharing passwords to obtain products and services is considered an unauthorized purchase that is subject to disciplinary action as outlined in the Human Resources Operating Instructions (HROI) Table of Penalties;
(c) Obtain prior approval from the approving official prior to making a purchase. The approving official is required to approve the justification of each individual transaction for need and accuracy. The cardholder will obtain written confirmation of any verbal approval within 10 days of receiving the verbal approval;
(d) Designate the accounting classification code (ensuring correct object class codes) for each item procured. Each cardholder has a primary use or "default" accounting classification code based on the primary use of the card. The cardholder is responsible for validating the correct accounting classification code for each item purchased, and the certification that funds are available;
(e) Purchase products and services from Javits-Wagner-O'Day (JWOD) organizations and suppliers. FAA does not have a waiver procedure to buy from other than JWOD products. See FAST, Procurement Guidance, Section T3.8.4, for guidance on JWOD requirements;
(f) Determine if products (e.g. furniture) are available through Federal Prison Industries (UNICOR). A written waiver from UNICOR is not required for items up to $2,5OO from outside sources; See FAST, Procurement Guidance, Section T3.8.4 for guidance on UNICOR requirements;
(g) Utilize the Strategic Sourcing for the Acquisition of Various Equipment and Supplies (SAVES) Program. See the FAA Employee Website "Your Work Tools" for guidance on the SAVES Program.
(h) Cardholders must provide copies of source documents relating to purchases of accountable personal property (Invoice, Purchase Order, etc.) to appropriate personnel for guidance (See T3.2.2.5A:1:f(1)(b)
f. Administrative Matters.
(1) Documentation.
(a) All cardholder purchase card transactions must be supported by the following:
(i) Written proof of prior approval;
(ii) Certification of funds availability (See paragraph 1.h Availability of Appropriations),
(iii) A sales slip or invoice;
(iv) A telephone log entry (for telephone purchases);
(v) Check for availability from a mandatory source (See paragraph 1.g Selecting Potential Sources). If item is not available from a mandatory source, then best value (i.e., contact 2 or more vendors) must be documented or obtain verification of price from catalogs and descriptive materials;
(vi) A receiving report;
(vii) For exceptions to prohibited purchases (e.g., light refreshments for awards ceremonies);
(viii) Additional supporting documentation is needed for special transactions such as training.
(b) Cardholder purchase card transaction source documentation must be routed as follows:
(i) Cardholder must provide a suspense copy of the purchase card order (written proof of prior approval) for accountable personal property to the Property Delegate in the gaining organization after placing the order.
(ii) Cardholder also must provide the Property Custodian (Manager) of the gaining organization written notification by providing a copy of the purchase card order or by other acceptable means;
(iii) After receiving the property, the Cardholder address must provide the source documents (invoices, sales slips, packing slips and/or receiving reports) for the purchase to the Property Delegate for entry into official agency inventory system and to clear the suspense copy of the purchase card order;
(iv) If the source documents have not been received within five (5) business days after the Shipping Date, the Property Delegate must contact the Cardholder to determine the status of the shipment and request copies of the source documents.
(v) More detail relating to Property Custodian/Delegates roles are located on the FAA Intranet at: http://ats.awa.faa.gov/aaf/afz/500/processguides/processguides.html under the title FAA Personal Property Process and Procedure Guide 5-22-06
(2) Prohibited Purchases.
(a) The GSA contract stipulates that the purchase card may not be used for the following:
(i) Rental or lease of land or buildings. Exception: the purchase card may be used to purchase short-term commercial conference and meeting-room space;
(ii) Cash advances, including money orders;
(iii) Telephone services controlled by the GSA or the local Office of Information Services or Regional Communications Office. However, telephone equipment may be purchased using the card.
(b) The use of the purchase card for personal purchases or as identification when writing personal checks is prohibited.
(c) The use of appropriated funds for the following purposes is prohibited (For additional guidance concerning these prohibitions, consult legal counsel):
(i) Food items for meetings and conventions (except that the purchase card can be used to purchase light refreshments, e.g. coffee, tea, donuts, etc. for award ceremonies);
(ii) Gifts to include store gift cards/certificates, office retirements;
(iii) Membership fees for individual employees (except the Agency may purchase membership in a society or association in its own name);
(iv) Personal expenses and furnishings, this includes clothing, decorations, and food for personal use or consumption except as authorized by Human Resources Policy Manual (HRPM) 9.2. Note that the use of the purchase card to purchase an item of clothing that is required in order to perform job duties or functions is permitted, e.g. the purchase of a pair of safety shoes or a uniform. This purchase should be coordinated with the procurement office;
(v) Drinking water, except when a duly constituted public health authority pronounces the ordinary drinking water to be unsafe for human consumption at the site;
(vi) Subscriptions to publications or magazines, not relating to official duties;
(vii) Rental of aircraft by persons not in aircraft related positions;
(viii) Fans, air conditioning and cooling equipment, space heaters and heating equipment, except as properly installed for general use in connection with the maintenance and operations requirements for the site;
(ix) Water coolers, or vacuum cleaners and other household appliances, except as requisitioned for general use by the authorities charged with building maintenance and equipment.
(d) The purchase card cannot be used to purchase real property (land, buildings, or other structures). See Real Property Guidance, Chapter 5, Section II.A.20 for exceptions.
(e) Use of the purchase card, in lieu of the travel charge card, for travel-related expenses is prohibited
(f) Use of the purchase card to obtain commercial, government owned or leased vehicles, and/or to purchase fuel is prohibited. The purchase card can be used for the purchase of fuel for utility machines such as lawn mowers, engine generators, fork lifts, and snowmobiles.
(g) Cardholder service purchase (i.e. landscaping, snow removal, security services), for the same function, some contractor, and some location are limited to $2,500.00 per procurement. Reference is made to Service Contact Act.
(h) Cardholder construction purchases for the same function, same contactor, same Location and limited to $2,000.00 per procurement. Reference Davis-Bacon Act and FAST Section T3.6.2.
(3) Restricted Purchases.
Federal funds used to purchase, lease, or rent plasma displays or personal data assistants (PDAs) including BlackBerries, require written justification from the affected vice president, associate or assistant administrator. The justification will address the need and cost-effectiveness of the purchase.The acquisition of high cost, high quantity items (e.g., computer equipment, hand-held radios, snowmobiles or any item over the amount of $500.00) or sensitive items should be centrally purchased within the region, center or headquarters line of business (LOB) to take advantage of the economies of scale and equipment standardization and be in accordance with FAA Order 4650.21C.(4) Purchase card use for non-monetary awards.
(a) If the purchase card is used for non-cash awards (gifts remain a prohibited item), the requirement in the HRPM, Recognizing Employees, PM-9.2, must be followed. Each office is responsible for maintaining records on all recognition and awards purchased and given. These records must contain the following:
(i) The justification for granting the award;
(ii) The item(s) purchased;
(iii) The cost of the item(s); and
(iv) The award recipient.
(b) It must be emphasized that plaques, trophies, etc. given to employees for high quality work or special projects must not exceed $75.00. Merchandise that is given to FAA employees is considered non-taxable by the IRS, if its cost does not exceed $75.00.
(5) Third Party On-line Payments. Cardholders are required to immediately notify the approving official when they become aware that a purchase card purchase will be processed by a third party on-line payment company. Also cardholders must provide the approving official a copy of all documentation that supports the on-line payment transaction within five days of item receipt.
(6) Section 508 Requirements. Cardholders are required to purchase products and services that comply with federal requirements for Section 508 of the Rehabilitation Act. FAA standards for Section 508 Purchase Card Operating Procedures are available at the following website:htt://faapard.amc.faa.gov.
(7) Environmental Requirements. The Resource Conservation and Recovery Act, Section 6002, requires the purchase of recycled content (recovered materials) products designated by the Environmental Protection Agency (EPA). The EPA maintains a list of designated recycled-content products and recommends the percentages of recycled content that the products must contain. Agencies can refer to www.epa.2ov/cP2for a complete list of designated products, EPA’s recommendations, and additional information. (b) Electronic Products Environmental Assessment Tool (EPEAT) is a tool that provides a list of energy consuming products that meets standards.
g. Selecting Potential Sources.
(1) Each cardholder must determine if the product or service is available through the mandatory sources of supply (Federal Prison Industries (UNICOR), National Industries for the Blind (NIB), National Industries for the Severely Handicapped (NISH) and other JWOD organizations before making a purchase from the open market. However a written waiver from UNICOR is not required for each procurement to purchase items up to $2500.00 from outside sources. FAA does not have a waiver procedure to buy products from other then JWOD organizations and suppliers. (See FAST, Procurement Guidance, Section T3.8.4. for JWOD requirements).
(2) The AMS stipulates that small businesses and small businesses owned and controlled by socially and economically disadvantaged individuals will be given reasonable opportunities to provide products and services purchased by the FAA; therefore, cardholders should purchase from these sources whenever possible except as required in section T3.8.4, A.2 Mandatory Government Sources.
(3) An appropriate number of vendors should be contacted to ensure quality products and services are delivered in a timely manner at the best value to the FAA consistent with the AMS policy 3.2.2.5.
(4) When purchasing general office supplies, office equipment (printers, copiers, and multi-functional devices), IT hardware (enterprise servers and peripherals), courier services (overnight mail), or printing, each card holder must determine if the product is available through a Strategic Sourcing for the Acquisition of Equipment and Supplies (SAVES) contract or other FAA-wide initiatives, such as the Dell Blanket Purchase Agreement (BPA) and FAA Oracle Enterprise Licensing, before making a purchase. (See AMS Procurement Guidance T3.8.6 Strategic Sourcing).
h. Availability of Appropriations. The FAA shall comply with the Anti-Deficiency Act (31 U.S.C. 1341) and other fiscal laws. Restrictions on the purposes for which appropriated funds may be used come from a variety of sources, including the U.S. Constitution, appropriation acts, and decisions of the Comptroller General. Funds certification officers must provide a written allocation of funds availability. This can be done on a quarterly, semi-annual or annual basis. Cardholders are responsible for maintaining a revolving balance of available funds as each item is purchased.
i. Acquisition of Training Services. The FAA purchase card is encouraged for use to the maximum extent possible to acquire training by appropriate training coordinators, if they are delegated cardholders. It is important to ensure that proper coordination of training requirements has taken place prior to training being purchased, e.g. completed training checklist, needs assessment, and whether or not the training is being purchased by a training coordinator or not.
j. Tax Exemption. At the time of the purchase, cardholders should advise the merchant that the purchase is for official U.S. Government purposes and therefore is not subject to state or local tax. If the vendor wants to clarify this, the back of the card includes an 888 number that may be called for verification. Exceptions do exist for certain state taxes in certain states, i.e., New Mexico. For this reason, cardholders should contact legal counsel regarding applicability of any exemptions or other issues related to state or local taxes for specific information about excepted states.
(1) A review should be made of the bank statement for inclusion of sales tax. If sales tax was included, first check for the state exception. If sales tax is charged in error, request a credit from the vendor.
(2) All new purchase cards should be checked to ensure that the Operating Administration’s name and the tax ID are embossed o the card.
k. Finance Office. Finance offices receive monthly finance office reports from the card-issuing bank that reflects summary totals of all purchases and credits of each cardholder. The finance office report represents the invoice from the bank and should be date stamped when received. The finance office is responsible for certifying for payment all authorized card purchases.
l. Deficiencies/Disputes/Damaged Equipment
(1) If the cardholder finds a discrepancy that is the result of item shortage, receipt of a defective or damaged item, or receipt of the wrong item, the first step is to contact the vendor to seek resolution. The cardholder should request a replacement item or a credit from the vendor. If the cardholder and vendor he credit will appear on the cardholder’s account statement for the following month. The cardholder should return the defective, damaged or erroneous item to the vendor within 60 days of receipt.
(2) If the cardholder and vendor cannot reach an agreement on resolution of the discrepancy, then the cardholder must file a dispute form with the bank to formally dispute the purchase. The bank will credit the purchase cardholder’s account until the dispute is resolved.
m. Lost or Stolen Purchase Cards and/or Compromised Accounts.
(1) Reporting Lost or Purchase Stolen Cards and/or Compromised Accounts. The cardholder must report immediately the loss or theft of their purchase card to the APC, the approving official and the card-issuing bank in order to avoid liability for unauthorized purchases on the card. The cardholder must also report immediately to those indicated above a compromised account (i.e. identity theft) or suspicion of a compromised account. The necessary information to report to the card-issuing bank includes the cardholder’s complete name, card number, and purchases made on the date of loss or theft. In the event of theft, the cardholder should also provide the bank the date that the theft was reported to the police.
(2) Card Re-issuance. The card-issuing bank will issue a new card to the cardholder within two working days from the time that the loss or theft is reported. A cardholder who reports more than one incident of loss or theft within a 12-month period will require authorization from the COCO in order to have another card re-issued.
n. Accounting Classification Code Adjustments. Each cardholder has a primary use or "default" accounting classification code based on the primary use of the card, i.e., whatever the office is primarily purchasing. For example, Flight Standards offices may have a primary use of the card for aircraft rental. The card may be used for purchases other than the "primary use" purpose; however, the action will require a different accounting classification code assignment. All cardholders and approving officials are required to review the monthly bank statements upon receipt each month. The cardholder is required to assign the correct object class code for each item purchased. The approving official is required to review the statement for accuracy, the potential for split purchases, and approve each individual transaction.
o. Cardholder Non-Compliance. The purchase card privileges of any cardholder found to be non-compliant with purchase card guidance twice in a six-month period will be suspended for six months. The cardholder’s privileges may be restored upon completion of remedial training or permanently revoked. The purchase card is considered government property. The FAA will comply with the FAPM Letter 2635 Code of Conduct & Discipline Order, HRPM 4.1 on Standards of Conduct, and HROI Table of Penalties for any purchase cardholder, approving official, supervisor, and manager misuse and/or fraud of government property.