FOREWORD      

The Department of Transportation Acquisition Manual (TAM) is issued by the Senior Procurement Executive (SPE), Office of the Senior Procurement Executive (OSPE). It establishes for the Department of Transportation (DOT) uniform internal operating acquisition procedures, which implement or supplement the Federal Acquisition Regulation (FAR) and the Transportation Acquisition Regulation (TAR), other agency regulations and statutory requirements.

(a) To create a world class acquisition system that delivers best value products or services to the customer, each OA must follow DOT's Procurement Performance Management System (PPMS) including its policy principles. This system was developed in partnership with and is maintained by the Procurement Management Council (PMC).  Implementation of the PPMS is the responsibility of the Head of the Contracting Activity (HCA).

The TAM is issued pursuant to DOT Order 4200.18 series, Establishment of a Transportation Acquisition Manual.

When acquiring supplies or services, OAs are to follow this manual unless otherwise excluded by the FAR, TAR, or this manual.  The Federal Aviation Administration, having their own unique statutory authority, are exempt from this manual. 

This manual can be downloaded at www.dot.gov/ost/m60/earl/tam.htm.

(b) Numbering. (1) This manual conforms to the arrangement and numbering system prescribed by (FAR) 48 C.F.R. 1.105. The numbering illustrations at (FAR) 48 C.F.R. 1.105-2(b) are equally applicable to this manual. TAM addresses the specific paragraphs for which supplementation or implementation applies. For example, this paragraph supplements (FAR) 48 C.F.R. 1.105-2(b)(1); therefore, the FAR corresponding paragraph in TAM  is 1201.105-270, paragraphs (b) and (1).

(2) TAM coverage is identified by the prefix "12" and followed by the complete TAM cite which may be as specific as the paragraph level (e.g., 1201.105-3(a)).

(3) Coverage in the TAM that supplements the FAR will use chapter, subchapter, section and subsection numbers ending in "70" through "89" (e.g., 1201.105-270).

(4) Coverage in the TAM, other than that identified with a "70" or higher number, that implements the FAR or TAR will use the identical number sequence and caption of the FAR or TAR segment being implemented which may be down to the paragraph level (e.g., 1201.602-3(a)).

(c) References and citations. This manual may be referred to as the Transportation Acquisition Manual or the TAM. Cross references to the FAR or TAR in this manual will be cited by "FAR" or "TAR" followed by its numbered cite. A number not prefixed by the acronym FAR, TAR or TAM will automatically be the TAM. For example, 1201.603-3 automatically refers to the TAM even though the acronym "TAM" is not specified.  As an electronic document, the TAM contains many links (identified by blue print) to the word or term referenced in the text. An Electronic Acquisition Reference Library (EARL) is an internet-based resource also available to research words or terms referenced or cited within the TAM.

(a) The TAM is issued electronically through the E-TAM and available via the internet at http://www.dot.gov/ost/m60/earl/tam.htm. Hardcopies can only be obtained by downloading the TAM since individual hardcopy distribution of the TAM is not made.

Prior to obligating funds and entering into a contractual agreement for information collection activities, the contracting officer shall obtain a clearance and approval from OMB. The SF-83, Request for OMB Review, shall be used to request OMB's review and approval. Operating administration (OAs) Paperwork Clearance Officers are available to assist in preparing the information collection justification for the SF-83.

(a) Data collection under proposed contracts. SF-83s must be forwarded to the Office of the Chief Information Officer (CIO), (S-80), for processing to OMB. Early coordination with Paperwork Clearance Officers and S-81 prior to release of the solicitation should prevent delays caused by the requirement to obtain OMB approval.

(b) Data collection under TAR Supplements. An SF-83, along with the calculations used to derive the numbers shown on the SF-83, shall be forwarded to the SPE along with the proposed TAR Supplement coverage (see TAM 1201.304) for coordination with S-81.

Personnel with questions concerning the FAR, TAR, and TAM may utilize the Listing of Responsible SPE Office Personnel for FAR, TAR, and TAM to identify the appropriate individual to contact within OSPE by Part/Chapter.

(a)(1) Delegations of FAR procurement authority. The following is applicable with respect to delegations of procurement authority within DOT:

(i) Agency head delegations. There are certain (FAR) 48 C.F.R. functions which are non-delegable and reserved by the Secretary and there are some functions that can be delegated. All reserved and delegated functions (either to the Office of the Secretary (OST) or the OAs) to one or more individuals are reflected in the applicable chapters of this manual usually by the words “is non-delegable,”  “is authorized” or “is the individual authorized.”

(A) For those functions that are delegated, the chapters indicate the lowest organizational level for performance of that function. The delegated levels reflected in this manual may be changed to an equivalent or higher level by the Assistant Secretary for Administration or other responsible OST official for OST assigned functions and by the Head of the Operating Administration (HOA) for OA assigned functions. For example, the HOA may change the “debarring official” in TAM 1209.403 from the HCA to the higher HOA level.

Any changes by the HOA to the delegated levels reflected in this manual must be in writing and stored in a centralized location within the OA. A copy of the delegation must be submitted to the SPE upon request.

(B) Lower organizational levels for FAR and TAR agency head functions must be authorized by the SPE (who will coordinate with other OST officials as deemed appropriate).

(ii) Head of the Contracting Activity (HCA) functions. There are certain (FAR) 48 C.F.R. functions which are non-delegable and reserved for the HCA or equivalent organizational level; these reserved functions are reflected in the applicable chapter of this manual. For delegable functions, compliance with the level reflected in the applicable chapter of this manual or the TAR is required unless otherwise authorized by the HCA.

(A) Notwithstanding the above, the HOA or designee at an organizational level equal to or above the HCA may retain both delegable and non-delegable functions assigned to the HCA.

(B) Approved HCA functional delegations which are different from those specified in this manual shall be in writing and stored in a centralized location within the OA. A copy of the delegation shall be submitted to the SPE within 30 days of issuance.

(iii) Any other authorities of this manual besides those mentioned in TAM 1201.301(a)(1)(i) or (ii)  may be authorized to a higher level within the OA than that stipulated in this manual unless specified otherwise. Any authorities assigned or re-delegated pursuant to this paragraph shall be in writing and stored in a centralized location within the OA. A copy of the assignment/re-delegation shall be submitted to the SPE upon request.

(a) TAM changes may be the result of suggestions by DOT personnel, other Government agencies, or the public. Proposed changes to this manual, along with rationale for the change, must be submitted to the Office of the Senior Procurement Executive (M-60) by addressing the change to TAM.Changes@dot.gov or by contacting the responsible SPE staff member by electronic mail (see 1201.202-70).  Changes to the TAM shall address the following:

(1)  PROBLEM:  Succinctly state the issue(s) requiring a TAM change.

(2)  RECOMMENDATION: Identify the recommended change by using the current language and adding to it or lining through the words to be deleted and inserting proposed language in brackets.

(3)  DISCUSSION:  Explain why the change is necessary and how it will solve the problem.  Address any cost or administrative impact on Government activities, offerors, and contractors.  Provide any other helpful information and documents such as statutes, legal decisions, regulations, reports, etc.

(4)  POINT OF CONTACT:  Name and phone number of a person who can answer questions regarding the recommendation.

(b) Updates to the TAM will be summarized in a TAM NOTE published via the internet at http://www.dot.gov/ost/m60/.   When the TAM NOTE is issued, the electronic TAM is simultaneously updated to incorporate the changes.

(c) The TAM is maintained by OSPE in electronic form. Maintenance of the TAM will be made through the TAR/TAM change process.

(1) TAM Chapters. This manual will contain internal DOT acquisition procedures within chapters that supplement or implement FAR and TAR material. Chapters are normally coordinated through the TAR/TAM change process prior to issuance.

(2) TAM Notices.

(i) TAM Chapters will be amended by issuance of a TAM Notice (also referred to as a TAM NOTE);

(ii) TAM Notices are: (A) used to disseminate information that is relevant to the TAM; and (B) normally integrated into the TAM. TAM Notices may occasionally contain new material that must be issued quickly without going through the TAR/TAM change process before their release. However, simutaneously with or subsequent to their issuance, these TAM NOTES will be disseminated for comment.

(3) TAM Appendices, Attachments, and Exhibits. Appendixes to the TAM or a specific Chapter may be used to provide supplementary material not suitable for insertion in the TAM issuance itself (e.g., tables, other agency issuances).  Appendices may contain attachments with or without exhibits.  Attachment(s) supplement the appendix, and exhibit(s) supplement the attachment. Both are made part of the appendix. TAM appendices do not necessarily follow the format and numbering system of this manual. Additional information is available on EARL.

Unless otherwise stated, the following applies--

(a) Statements in TAM NOTEs to the effect that the material therein is "effective upon receipt," "upon a specified date," or that changes set forth in the document are "to be used upon receipt," mean that any new or revised procedures or forms shall be used when issuing solicitations, contracts, or modifications thereafter; and

(b) If solicitations are already in process or negotiations complete when the TAM NOTE is received, the new procedures or forms need not be used if it is determined by the Chief of the Contracting Office (COCO) that it would not be in the best interest of the Government.

TAM NOTEs will be numbered consecutively on a fiscal year basis beginning with number "01" prefixed by the last two digits of the fiscal year.

(a) General. The Procurement Management Council (PMC) is an integral part of the TAR/TAM change process. Changes to this manual or the TAR that effect more than one OA are made through coordination with the PMC and other applicable DOT offices.

(b) Process. The TAR/TAM change process involves the formulation of policies and procedures through a comment process. The OSPE uses various methods (e.g., electronic media, hard copy, and discussions) to solicit and resolve comments on proposed TAM revisions.

(1) The PMC is responsible for--

(i) Reviewing proposed TAM changes and providing comments to the SPE or SPE's staff, or recommending solutions to the SPE on acquisition issues;

(ii) Recommending policies and procedures to the SPE for consideration; and

(2) The OSPE is responsible for--

(i) Formulating and distributing proposed changes;

(ii) Soliciting comments from the PMC and other interested and affected DOT offices; and

(iii) Reviewing and resolving all comments or forwarding them to the PMC for resolution.

(a) DOT's goal is to ensure the TAR and TAM are consistent with (FAR) 48 C.F.R. unless (FAR) 48 C.F.R. prescribes otherwise. Due to the lead-time necessary to implement (FAR) 48 C.F.R. changes, conflict or inconsistency may momentarily exist. In those cases, the (FAR) 48 C.F.R. takes precedent over the TAR and TAM.

(b) OA acquisition regulations. OA acquisition regulations shall:

(1) Be incorporated into the TAR as a supplemental regulation;

(2) Be coordinated in accordance with OA internal procedures (including review by legal counsel with evidence of such a review) to ensure compliance with (FAR) 48 C.F.R. 1.301 and DOT's rule-making process before submission to the SPE;

(3) Be submitted to the SPE for review and approval by a transmittal letter signed by an official with a rank no lower than an Associate Administrator or Flag Officer, or equivalent, before proceeding to the public comment process at the initial stages of the regulatory process; include a Paperwork Reduction Act (see TAM 1201.404(a)(2)) and Regulatory Flexibility Act analysis, as appropriate; and a justification supporting the need for the regulation;

(4) Be integrated within the TAR and be available via the internet at http://www.dot.gov/ost/m60; and

(5) Pertain only to that OA.

(c) OA acquisition procedures. OA acquisition procedures shall:

(1) Contain no material which unnecessarily repeats, paraphrases, or is inconsistent with the contents of the FAR, TAR, and this manual;

(2) Be consistent with the policies and procedures of the FAR, TAR, this manual, and other Departmental guidance and follow the format, arrangement, and numbering system specified in TAM 1201.105-270 and TAM 1201.301-70 to the extent practicable; and

(3) Be reviewed, as deemed appropriate, in accordance with internal operating procedures and the following:

(i) OAs shall advise the OSPE in writing (by topic) of their intent to promulgate acquisition guidance implementing or supplementing this manual.  OAs will be advised of any procedures that are to be provided to the OSPE for review.

(ii) The HCA is responsible for ensuring that OA contracting offices limit their promulgation of acquisition procedures and, if procedures are necessary, to ensure they comply with paragraphs (1) and (2) of this section.

Requests for individual deviations from the FAR, TAR, and this manual can be granted. The HCA or designee, who must have a rank that is no lower than that of a Senior Executive Service (SES) official or of a Flag Officer level, is authorized to approve individual deviations to this manual, except when this authority has been otherwise assigned by regulation (see (FAR) 48 C.F.R. 1.405 regarding requests for deviations from Treaty requirements), statute (e.g., most Cost Accounting Standard (CAS) deviations must be granted by the CAS Board), or this manual. All deviation requests shall:

(a) Be coordinated with legal counsel with evidence of coordination;

(b) Cite the specific part of the FAR, TAR, or this manual from which a deviation is required;

(c) Set forth the nature of the deviation(s); and

(d) State the reasons for the action requested.

(a) The SPE is the individual authorized to grant class deviations unless (FAR) 48 C.F.R. 1.405(e) is applicable. Requests for class deviations to the FAR, TAR, and this manual shall be endorsed by the HCA or designee no lower than the SES/Flag Officer level, before submitting the request to the SPE for approval. Requests submitted shall include the same type of information as required for individual deviations in TAM 1201.403.

(2) Suggested changes to the FAR, TAR, and this manual shall be transmitted to the SPE after review and approval of the manager of the office requesting the change (e.g., COCO). Those FAR recommended changes determined appropriate by the SPE will be forwarded by OSPE to the Civilian Agency Acquisition Council in accordance with (FAR) 48 C.F.R. 1.404.

The HOA is authorized to establish contracting activities and delegate broad authority to manage the agency's contracting functions to heads of such contracting activities (HCA).  Establishing a new contracting activity must be coordinated with DOT’s SPE. The Secretary, Deputy Secretary, Assistant Secretary for Administration (OST), SPE, HOAs and HCAs (see EARL for current HCAs) shall be considered contracting officers within DOT by virtue of their positions; no Certificate of Appointment (see TAM 1201.603-3) is required. All other DOT contracting officers shall be selected and appointed under TAM 1201.603.

The Clinger-Cohen Act, P.L. 104-106, and the Office of Federal Procurement Policy, Policy Letter 05-01, direct the implementation of mandatory training, education, and experience requirements for entry and accession in the acquisition career field. The Department of Transportation Acquisition Workforce Career Development Policy  (revised November 2006) establishes procedures for the implementation of these requirements and other career development efforts. This document is issued under the authority of TAM 1201.103 as a supplement to TAM Chapter 1201, and is available via the internet at  http://www.dot.gov/ost/m60/workforce/awf_career_development.htm   This policy also includes, as Appendix D, the U.S. Department of Transportation Contracting Officer's Technical Representative (COTR) Training Standards.

Contracting officers may only delegate their responsibilities to an authorized representative(s) such as a Bankcard recipient or a COTR. Any delegation of responsibility must be in writing to specified individuals (by name, not position) and clearly enumerate the delegated responsibilities and any limitations attached thereto. Selection, training, certification, and appointment of COTRs are discussed in TAM 1242.70 and in OA policy.

(a) Definitions.

(1) "Ratifying official" means the official who may authorize a contract award, purchase order, or other procurement instrument providing for the ratification of an unauthorized commitment.

(2) "Unauthorized commitment", as defined in (FAR) 48 C.F.R. 1.602-3, includes, but is not limited to, any action by a person other than the contracting officer that results in: (i) continued performance by a contractor beyond the expiration date or the price established by the procurement instrument; or (ii) the commencement of performance of work in advance of issuance of a formal procurement instrument properly executed by a duly authorized contracting officer.

(b) Policy.

(2) The authority of the HCA under (FAR) 48 C.F.R. 1.602-3(b)(2) to ratify an unauthorized commitment remains with the HCA unless re-delegated to an organizational level no lower than the COCO in accordance with (FAR) 48 C.F.R. 1.602-3(b)(3).

(c) Limitations.

(7) The following procedures shall be used for ratification of an unauthorized commitment:

(i) The individual who is responsible for actions that result in an unauthorized commitment must provide the following information to the ratifying official:

(A) A description of the circumstances that resulted in an unauthorized commitment;

(B) The reasons why normal procurement procedures were not followed;

(C) A description of the bona fide Government requirement that made the commitment necessary;

(D) The benefit(s) received by the Government;

(E) The dollar value of the commitment and whether the costs were reasonable in relation to the contractor's effort, the hours expended, the services or supplies received, type of labor used, and other costs, as appropriate;

(F) The basis for selecting the contractor and identify other sources considered, if any;

(G) Status of performance;

(H) Any other pertinent facts regarding the circumstances that resulted in an unauthorized commitment;

(I) Any invoices, receiving report, or other documentary evidence related to this transaction;

(J) The signature, following the above information, of the individual responsible for the unauthorized commitment certifying that the information provided is accurate;

(K) Any recommendations regarding corrective action that will preclude the situation from recurring; signed by the responsible individual’s Division Director (or equivalent); and

(L) A complete procurement request, Form DOT F 4200.1, Procurement Request, that includes a certification stating that the purchase request funds for the ratifying action were available at the time the unauthorized commitment occurred as well as the time the unauthorized commitment is ratified.

(ii) If the individual responsible for the unauthorized commitment is not available, the office to which the responsible individual was assigned shall provide the information described in paragraph (i) above with the name (vice signature) of the individual responsible for the unauthorized commitment.

(iii) A written contract, as defined under (FAR) 48 C.F.R. 2.101, is not required to confirm the ratification of an unauthorized commitment. The contracting officer shall decide if a contract or other written means would be appropriate for a particular situation on a case-by-case basis. Factors such as furnishing Government property, promise of product delivery, dispute over invoiced prices, etc., are to be considered when determining whether or not a contract is appropriate.

(A) Before ratification of an action, a letter requesting payment or an invoice from the contractor who provided the supply or service must be received.
 
(B) The complete ratification file shall be submitted for legal review before it is submitted to the ratifying official in accordance with 1201.602-3(c)(7)(iv)(F).  Secretarial offices shall submit the file to the Office of the General Counsel (C-10); OAs shall submit the file to their respective Chief Counsels.

(C) The ratifying official shall determine whether ratification is appropriate based on a complete file containing all the ratification documentation requirements of paragraph (c)(7)(i).

(D) A memorandum signed by the contracting officer that approves the invoice shall be sent to the finance office along with the invoice. The original certified Form DOT F 4200.1, Procurement Request, (covering the total amount of the invoice), a copy of the ratifying official's ratification, and the document confirming the ratification (see paragraph (iii) of this section), shall be attached to the memorandum.

(E) A copy of the memorandum, Form DOT F 4200.1, invoice, and original ratification documentation shall be retained in the contract office file.

(F) A letter explaining the disposition of the unauthorized commitment shall be sent to the contractor by the contracting officer if payment will not be made.

(iv)  Each contracting office shall establish a file to ensure those actions for which ratification was requested can be identified and the documentation listed in (A) through (G) of this paragraph (iv) can be located.  The contracting office shall establish appropriate administrative, technical and physical safeguards to insure the security and confidentiality of these files.  Each ratification request must be retained for 6 years and 3 months after final payment or after the ratifying official determines that the action will not be ratified.  The file pertaining to a ratification action must contain the following:

(A) The name of the individual responsible for the unauthorized commitment and the name of the office to which he or she was assigned;

(B) A brief description of the commitment, the amount of the action, and a written determination, with supporting documentation, that either the request should not be ratified or that the ratified price is fair and reasonable;

(C) The name of the firm or person to whom the commitment was made (if not in the ratification document);

(D) The date the commitment was either ratified (if not in the ratification document) or not ratified;

(E) A copy of the ratification document as applicable;

(F) Evidence of legal counsel concurrence with any ratification that is 10 percent or more of the simplified acquisitoin threshold; and

(G) Any disciplinary action taken or an explanation as to why none was considered necessary.

(d)  Nonratifiable commitments.  If an unauthorized commitment is disapproved for ratification, the contracting officer shall promptly notify the individual responsible for the unauthorized commitment, in writing, stating the reasons for disapproval and recommending the individual obtain legal advice.  The contracting officer must also advise the employee that the Government will not pay for the nonratifiable commitment.   The responsible individual may be held personally liable for the full amount of the unauthorized commitment.    If the unauthorized commitment involves the Purchase Card or payment has already been made via the SMART PAY program, the Government may bill the responsible employee or take other reimbursement action.

The HCA shall appoint COCOs for the OA. Individuals designated as COCOs are considered contracting officers and shall be appointed by their respective HCA. The HCA is authorized to select, appoint, and terminate the appointment of contracting officers. The HCA may re-delegate this authority to a level no lower than that of the COCO.

Personnel shall be selected as contracting officers using the guidance under the DOT Acquisition Career Development Policy for Contracting Professionals issued as a supplement to TAM Chapter 1201 and available via the internet on the DOT Acquisition and Grants Homepage at www.dot.gov/ost/m60/.

(a) The delegation of contracting authority is by formal contracting officer appointments under a Certificate of Appointment, SF 1402.  The extent of authority granted must be clearly stated on the certificate.

(b) The appointing authority shall maintain information on the limits of contracting officer authority.

The appointing authority (see TAM 1201.603-1) may terminate the appointment of a contracting officer at any time by giving a written notice stating the reasons for, and the effective date of, the termination.

(a) Responsibility for the decision of what to buy and when to buy rests mainly with program and certain staff offices. Responsibility for determining how to buy, the conduct of the buying process, and execution of the contract rests with the contracting officer.

(b) Program personnel, using the contracting process to accomplish their programs, must support the contracting officer by ensuring that:

(1) Requirements are clearly defined and specified;

(2) Competitive sources are solicited, evaluated, and selected;

(3) Quality standards are prescribed and met;

(4) Performance or delivery is timely;

(5) Prices, estimated costs, and fees are reasonable; and

(6) Files are documented to substantiate the judgments, decisions, and actions taken.

The performance of DOT contracting activities shall be assessed periodically to determine how they are performing their fiduciary responsibility and if they are achieving the primary goal of the acquisition system—to deliver best value products and services on a timely basis to meet the needs of the transportation systems. The OSPE utilizes DOT's Procurement Performance Management System (PPMS) to gauge the Department's performance progress.

The format and content requirements for determinations and findings (D&Fs) are specified in the associated subject text of this manual as necessary. The contracting officer is responsible for preparing D&Fs, and requirements and technical personnel are responsible for the accuracy and adequacy of the supporting factual information, which shall be furnished to the contracting officer.

EARL contains a listing of commonly used acronyms and office symbols used in this manual.

 Designated Agency Ethics Official (DAEO) for DOT is the Deputy General Counsel (C-2).

Deputy Designated Agency Ethics Officials (Deputy DAEO) for the Operating Administrations (OAs) are the Chief Counsels or designees.

Source Selection Information Disclosure Official. The individual authorized to determine whether the disclosure of information marked as "SOURCE SELECTION INFORMATION" would jeopardize the integrity or successful completion of the acquisition to which the information relates is the contracting officer.

(a) The contracting officer is the individual authorized to determine whether contractor bid or proposal information or source selection information may be disclosed.

(b) Individuals having access to documents which contain proprietary or source selection information shall:

(i) Ensure that the information is marked as required by (FAR) 48 C.F.R. 2.101 (under the definition for "Source selection information") and 3.104-4;

(ii) Use Form DOT F 4220.36, Cover Page Proprietary Information, to notify the recipient that the information or portions thereof is proprietary information related to the conduct of a Federal agency procurement;

(iii) Use Form DOT F 4220.35, Cover Page Source Selection Information, and comply also with the requirements of (FAR) 48 C.F.R. 3.104-4(c) with respect to the marking of pages, to notify the recipient that the document contains source selection information;

(iv) Ensure that the information is secured and protected both during and after working hours;

(v) Ensure interoffice security mailing of the information; and

(vi) Ensure strict control over where discussions regarding the information or related acquisition are held.

(c)(2) Resumption of participation in a procurement.   The HCA’s authority under (FAR) 48 C.F.R. 3.104-5(c)(2) is delegated to the Chief of the Contracting Office (COCO).  The COCO may authorize an agency official to resume participation in a procurement after complying with the requirements of (FAR) 48 C.F.R. 3.104-5(c)(2).

Each contracting office and individual having access to contractor bid or proposal information, source selection information, or other sensitive procurement information shall take the steps necessary to ensure that the integrity of the procurement process is not compromised by the unauthorized disclosure of this information. Responsible employees and officials must pay particular attention to visitors, contract file security, data security, and transmission of sensitive procurement information.  Those contracting officials that are telecommuting are to be especially cautious.  When telecommuting, contracting officials must be aware of the type of information they are transporting, have a need for relocating this information, and are able to safeguard any procurement sensitive information.  Such remote uses of procurement sensitive information must be accompanied with an established standard of self-discipline and initiative that ensures secure use of the information.  OAs may provide for additional safeguards as deemed necessary.

(a)(1) The COCO is the reviewing official for processing violations.

(b)(5) The Head of the Operating Administration (HOA) is the individual authorized to determine that the contractor, or someone acting for the contractor, has engaged in conduct constituting an offense punishable under subsection 27(e) of the Procurement Integrity Act, as amended, (41 U.S.C. 423), for the purpose of voiding or rescinding the contract.

(c) If the Head of the Contracting Activity (HCA) believes that a violation has occurred and the information should be disclosed to a criminal investigative agency (e.g., the Department of Justice) or that there may be a possible violation, and an investigation should be conducted, the HCA shall obtain guidance from legal counsel and the OIG prior to taking any action.  Secretarial Offices shall consult the Office of the General Counsel (C-10); OAs shall consult their Chief Counsels.

(d)(2)(ii)(B) The HOA is authorized to make determinations under (FAR) 48 C.F.R. 3.104-7(d)(2)(ii)(B).

(f) The contracting officer shall prepare a memorandum of the facts and circumstances to support the HCA’s determination under (FAR) 48 C.F.R. 3.104-7(f).  If the HCA determines that urgent and compelling circumstances exist, the HCA may authorize contract award after notifying the HOA.

The HCA is authorized to grant an exception to the policy in (FAR) 48 C.F.R. 3.601.  This authority cannot be redelegated.

(a)(2) The HOA is authorized to make determinations under (FAR) 48 C.F.R. 3.700(a)(2).

(a)(2) The HOA is authorized to make determinations under (FAR) 48 C.F.R. 3.700(a)(2).

(a) The HCA is authorized to declare void and rescind contracts and other transactions listed in P.L. 87-849 (18 U.S.C. 218).

(b)(2) The HOA is authorized to make determinations under (FAR) 48 C.F.R. 3.700(b).

(a) The HCA is authorized to declare void and rescind contracts and to recover the amounts expended and property transferred by the agency where there is a final conviction for any violation of 18 U.S.C. 201-224.  Prior to voiding or rescinding a contract or other transaction enumerated in 18 U.S.C. 218, the HCA shall provide written notification to the HOA.

(c) The HOA is authorized to make the determinations under (FAR) 48 C.F.R. 3.704(c).

(a) Reporting. The HCA is authorized to receive reports required by (FAR) 48 C.F.R. 3.705(a). Prior to notifying the Department of Justice the HCA shall notify the HOA in writing.

(b) Decision. The HCA will carry out the functions of (FAR) 48 C.F.R. 3.705(b). Prior to voiding or rescinding a contract, the HCA shall notify the HOA in writing.

(c) Decision-Making Process. Prior to taking the actions under (FAR) 48 C.F.R. 3.705 concerning voiding or rescinding a contract, the contracting officer shall ensure that the file fully supports the proposed action. The opinion of legal counsel also shall be sought to ensure that all requirements of (FAR) 48 C.F.R. 3.705 have been met.

(c)(4) The HCA is the authorized to issue the written decision under (FAR) 48 C.F.R. 3.705(c)(4).

(e) Final agency decision.  The HCA is authorized to make a final decision under (FAR) 48 C.F.R. 3.705(e).

(b) Contracting officers shall forward a copy of all contractor disclosures to the official designated in accordance with OA procedures.

Contracting officers shall report suspected violations of the requirements of 31 U.S.C. 1352 to the Assistant Inspector General for Investigations (JI-1), 400 Seventh Street, S.W., Washington, DC, 20590.

 (b) The HCA is authorized to receive reports of investigative findings under (FAR) 48 C.F.R. 3.905.

(c) The HCA is the official required to comply with (FAR) 48 C.F.R. 3.905(c).

(d) The HCA is authorized to grant extensions under (FAR) 48 C.F.R. 3.905(d).

(e) The HCA is authorized to request additional investigative work under (FAR) 48 C.F.R. 3.905(e).

(a) The HCA is authorized to make determinations and take actions under (FAR) 48 C.F.R. 3.906(a).

(b) The HCA is authorized to take actions under (FAR) 48 C.F.R. 3.906(b).

(a) In addition to the distribution requirements of (FAR) 48 C.F.R. 4.201, the contracting officer, as appropriate, shall distribute one reproduced, executed copy of all types of awarded procurement instruments to the following:

(1) The Operating Administration’s (OA) property management office or property administrator when Government property is furnished to the contractor or when acquiring personal property as that term is defined in (FAR) 48 C.F.R. 45.101;

(2) The requiring office; and

(3) The recipient of the supplies or services (including construction).

(b) The copy specified in TAM 1204.202(a)(1) is necessary to enable the recording and control of Government property, as required by DOT Order 2700.12 series, Financial Management Control of Property, and DOT 2700.8 series, Accounting Principles and Standards, by the finance office.

(c) The recipient (see paragraph (a)(3) of this section) shall provide the contracting officer or designee with a written acknowledgement of receipt and acceptance of the supplies or services (including construction).

The contracting officer may use any means to provide the contractor's taxpayer identification number (TIN) to the payment office as long as the TIN is protected from public disclosure. Disclosure within the OA shall be limited to Government personnel who have a need to know the TIN.

(a) Presolicitation phase. DOT is covered by the National Industrial Security Program (NISP) when a classified acquisition as defined under (FAR) 48 C.F.R. 4.401 is proposed. When classified information is required by the contractor during contract performance, contracting officers shall follow the procedures of:

(1) Executive Order 12829, National Industrial Security Program (NISP);

(2) National Industrial Security Program Operating Manual (NISPOM);

(3) DOT Order 1640.4 series, Classified Information Management and

(4) (FAR) 48 C.F.R. Subpart 4.4.

(b) Solicitation phase. Contracting officers shall ensure that classified acquisitions are conducted as required by the NISP. All contracting offices shall comply with the requirements of DOT Order 1640.4 series and any OA implementing procedures. Contracting officers should contact the DOT Office of Security (M-40) for assistance in the preparation of the contract security specifications.

(1) If the proposed acquisition is unclassified but the contractor will require access to privileged or sensitive information or have unrestricted access to DOT facilities, contracting officers shall contact the DOT Office of Security (M-40) for assistance.

(2) Contracting officers for the FHWA shall contact their responsible security office for guidance.

(b) The Senior Procurement Executive (SPE) is authorized to perform the duties outlined in (FAR) 48 C.F.R. 4.502(b).

(c)The SPE is authorized to ensure that the agency systems are capable of ensuring authentication and confidentiality in accordance with the requirements of (FAR) 48 C.F.R. 4.502(c).

(a) The government-wide next generation version of the Federal Procurement Data System (FPDS) shall be used by DOT to collect, query, and report data on procurement actions that exceed a dollar value of $2,500. The FPDS is used by all DOT OAs as the primary source of procurement data.  Each contracting officer is responsible for timely and accurate reporting of data to the FPDS.

(d) When a successful offeror, either in or outside the United States, does not provide their Data Universal Numbering System (DUNS) number, the contracting officer may obtain the number as described in paragraphs (1) through (3) of this section.  Requests to any office other than the Dun and Bradstreet office indicated in paragraph (2) of this section will not be honored.

Section 2901 of the Crime Control Act of 1990 (Public Law 101-647) requires each Federal department and agency to report to the General Services Administration (GSA), through the FPDS, all acquisitions of products and services from the Federal Prison Industries (UNICOR). OAs shall report all UNICOR acquisitions to FPDS.

The Small Business Competitiveness Demonstration Program (Title VII of Pub. L. 100-656) is described under (FAR) 48 C.F.R. 19.10. (FAR) 48 C.F.R. 19.1005 defines the designated industry groups selected for this program, and (TAR) 48 C.F.R. 1219.1005(b) defines the ten targeted industry groups agreed to between DOT and Small Business Administration as required by (FAR) 48 C.F.R. 19.1005(b).

Appendix A is a listing of various acquisition related reporting requirements. Unless otherwise advised by the Office of the Senior Procurement Executive (M-60), the Chief of the Contracting Office (COCO) shall ensure that each report is submitted to the required location by the due date.

The COCO is designated as the head of each office performing contracting and contract administration functions. The chief of the finance office of the OA is designated as the head of the office performing paying functions.

(a) Policy. Contracting officers responsible for contract administration must ensure that their contracts are closed out within the time standards set forth under (FAR) 48 C.F.R. 4.804-1. Compliance with these standards may be beyond the contracting officers control in situations where necessary administrative actions are required by others (e.g., responsible audit agency, contractor, etc.). However, the contracting officer shall maintain close liaison with these entities to ensure that the necessary actions are not unduly delayed and are accomplished.

(b) Closeout action for cost reimbursement contracts. The contracting officer shall ensure that closeout action (e.g., request for final audit, closing documents, etc.) commences within 90 calendar days after receipt and acceptance of all contract deliverables (i.e., the contract completion date).

(c) Tracking system. The COCO shall utilize an automated or manual contract closeout tracking information system to identify those contracts which are physically completed and ready for closeout, but have not been administratively closed out and disposed of in accordance with (FAR) 48 C.F.R. 4.8, (TAR) 48 C.F.R. 1204.8, and this subchapter.

(d) Monitoring of tracking system. The COCO is responsible for reviewing quarterly the latest status of the contract closeouts and disposal to ensure that Contracting Officers are closing contracts in a timely manner.

(b) COs may use a Contract Completion Statement, to satisfy the requirements of (FAR) 48 C.F.R. 4.804-5(b).

(a) DOT Order 1324.2 series, DOT Records Retention and Disposal Program, sets forth procedures for handling, storing and disposing of all files, including contract files, established by DOT.  Contracting officers shall seek the guidance of their OA's records management officer (RMO) or their records liaison officer (RLO) for additional information concerning the requirements of the DOT Order. GSA and the National Archives and Records Administration (NARA) are authorized by law to establish, operate, and maintain records centers for Federal agencies. The list of Records Centers (RC) is located at http://www.archives.gov/facilities/records_centers.html.

(b) Files sent to a FRC must have a disposal date annotated on the front of the file. This is the date the file can and will be destroyed by the FRC.  Contracting officers shall determine this date based on the retention period specified in (FAR) 48 C.F.R. 4.805. Since the documents listed under (FAR) 48 C.F.R. 4.805 are normally retained in one file in the contracting office, documents related to contract actions with a dollar value that exceeds $25,000 shall be retained for at least 6 years and 3 months after final payment; documents related to contract actions with a dollar value of $25,000 or less shall be retained for at least 3 years after final payment.

(c) It may be necessary to retrieve a file from the FRC prior to disposal.  Therefore, contracting officers should ensure that the RMO or RLO maintains a record of the files sent to the FRC that includes the identification number assigned to the file by FRC.

(a) The SPE is authorized under (FAR) 48 C.F.R. 4.903 to report certain information to the Internal Revenue Service (IRS).

In addition to the requirements cited under (FAR) 48 C.F.R. 4.904, 26 U.S.C. 6041 and 6041A, require Federal agencies to report to the IRS all individuals, partnerships, proprietorships, etc. that will be paid $600 or more in a calendar year.

The provision at (FAR) 48 C.F.R. 52.204-3 requires the offeror to furnish its taxpayer identification number (TIN). If the provision at (FAR) 48 C.F.R. 52.204-3 is required, the contracting officer will provide the TIN to the finance office, who will furnish the TIN to the Department of Treasury with each invoice certified for payment. 

(e)  Contracting officers are to ensure each contract document transmitted to the payment office includes the assigned DUNS number or, if applicable, the DUNS+4 number, within the award document in accordance with (FAR) 48 C.F.R. 52.204-7(b)(2).

(a) Except as provided in paragraph (b) of this section, this subchapter sets forth review and approval requirements for proposed solicitations, pre-negotiation objectives, documentation of negotiations, contract awards, and contract modifications when the value of the acquisition (inclusive of options) exceeds the simplified acquisition threshold. The award approval requirements under this subchapter are in addition to the approval requirements of TAM 1205.303, Announcement of contract awards.

(b) This subchapter does not apply to acquisitions made under Parts 8, 13, or 17.5 of (FAR) 48 C.F.R. Part 1.

The following definitions are applicable only to this TAM subchapter:

(a) "Independent review" means review by a procurement professional(s) other than the drafter of the document being reviewed or the contracting officer responsible for the acquisition (e.g., a review board, a member of the policy staff, another contracting officer of an equal or higher organizational equivalent).

(b) "Legal sufficiency" means that the document has been reviewed and determined to be in compliance with applicable statutes, regulations, and procedures by an attorney in the OA legal counsel's office.

(c) "Review" means to scrutinize the document to ensure that the contracting officer has complied with acquisition statutes, regulations, policies and procedures; has followed sound business practices; and has ensured that the contents of the contract file are in accordance with (FAR) 48 C.F.R. 4.803. 

(a) Contracting officers may authorize concurrent reviews of documents as appropriate.

(b) The requirements of this subchapter do not preclude other internal reviews that may be required by the OAs (e.g., coordination with quality assurance personnel, operational users, etc.).

(c) At remote contracting activities where the contracting officer is the highest ranking official, review at a level above the contracting officer is not required, unless otherwise directed by OA procedures.

(a) The contracting officer responsible for the acquisition shall review the solicitation, prenegotiation objective, the document meeting the (FAR) 48 C.F.R. 15.406-3 requirements, contract or contract modification, as applicable, prior to the other reviews required by this subchapter. The contracting officer is the level of approval for all proposed solicitations, prenegotiation objectives, documentation of price negotiations, contract awards, and contract modification awards valued at or below $500,000. The contracting officer also is the level of approval for selected contract modifications which exceed $500,000 (see paragraph (c)(3) of this section).

(b) The contracting officer shall ensure that all solicitations, contract awards, and contract modification awards are coordinated with the responsible technical/program office prior to issuance or award. Additionally, all solicitations, contract awards, and contract modification awards expected to exceed $500,000 shall be reviewed for legal sufficiency.

(c) In addition to the requirements contained in paragraphs (a) and (b) of this section, OAs shall ensure that review and approval is made of the following documents for proposed acquisitions expected to exceed $500,000:

(1) Solicitations: An independent review shall be performed of the solicitation. Based on this review, an individual at a level above the contracting officer responsible for the action shall approve the solicitation prior to its release to prospective offerors.

(2) Prenegotiation Objectives and Negotiations: Prenegotiation memoranda shall be reviewed and documentation of negotiations approved by an individual at least one level above the contracting officer responsible for the acquisition.

(3) Contract and Contract Modification Awards: An independent review shall be made of the contract or contract modification, as applicable and the contract file. The contract document submitted for review must be accompanied by the file which must contain all required documentation (e.g., prenegotiation objective, documentation of negotiations, determinations and findings, etc.) to support the proposed award. Based on this review, an individual, at a level above the contracting officer responsible for the acquisition, shall approve the proposed award. Note: The contracting officer is the level of approval for all unilateral contract modifications that do not require a proposal from or negotiations with the contractor (e.g., those for incremental funding and exercising options).

(a) The contract file shall clearly indicate that the reviews mandated by this subchapter have been accomplished. All approval decisions and the resolution of all comments shall be written,   signed, dated, and placed in the contract file.

(b) If the award approving official conditionally approves or disapproves the award, the contracting officer shall include in the contract file a written determination, which shall be signed and dated, indicating that all of the conditions (e.g., corrections, deletions, additions, changes, etc.) were satisfied prior to award.

OAs with field contracting offices shall conduct, in accordance with the procedures of the OA, periodic oversight reviews (e.g., an established procurement management review program, review of selected procurement actions by Headquarters, etc.) of solicitations, prenegotiation objectives, documentation of negotiations, contract awards, and contract modification awards. All reviews shall be documented in writing.

Contracting officers shall use the following numbers listed by their respective OAs whenever a FIPS number is required in the contracting process:   

(a)(4)(iii) The Chief of the Contracting Office (COCO) is authorized to make a written determination that access through the Governmentwide point of entry (GPE) is not in the Government's interest.

(b) The Head of the Contracting Activity (HCA) is authorized to make the written determination according to (FAR) 48 C.F.R. 5.202(b).

A class waiver to the requirements of (FAR) 48 C.F.R. 5.201 for a FedBizOpps synopsis in connection with competitive simplified acquisitions from small businesses under certain conditions is effective until April 1, 2005.  Instructions for using this waiver are available on EARL at http://www.dot.gov/ost/m60/elecacq.htm.

(a) Content. When preparing synopses, the following is applicable:

(6) CLASSIFICATION CODE. The contracting officer is responsible for determining the correct classification code for any FedBizOpps notice. The FedBizOppsstaff is not authorized to determine the classification code for any FedBizOpps notice. A misclassified contract action fails to notify the firms most likely to respond and, therefore, the Competition in Contracting Act may be violated. The contracting officer shall exercise care to avoid misclassification.  However, in the event a notice is not classified correctly, the misclassified contract action must be corrected and re-synopsized in the FedBizOpps. Detailed classification codes are available on the FedBizOpps website at: http://www.FedBizOpps.gov/.

(17) DESCRIPTION. To promote the financial assistance programs available from the OSDBU (S-40), procurement offices must add the following information to Item #17 of each synopsis of an acquisition containing a bonding requirement:

ATTENTION: Minority, Women-owned, and Disadvantaged Business Enterprises (DBEs)! The Department of Transportation (DOT) offers working capital financing and bonding assistance for transportation related contracts. DOT's Bonding Assistance Program (BAP) offers bid, performance and payment bonds on contracts up to $1,000,000. DOT's Short-Term Lending Program (STLP) offers lines of credit to finance accounts receivable. Maximum line of credit is $750,000 with interest at the prime rate, as published daily in the Wall Street Journal, plus 1.75 percent. For further information, call (800) 532-1169. Internet address: http://osdbuweb.dot.gov/.

When synopsizing all other acquisitions that do not require bonding, add the following information to Item #17:

ATTENTION: Minority, Women-owned, and Disadvantaged Business Enterprises (DBEs)! The Department of Transportation (DOT), Short-Term Lending Program (STLP) offers working capital financing in the form of lines of credit to finance accounts receivable for transportation related contracts. Maximum line of credit is $750,000 with interest at the prime rate, as published daily in the Wall Street Journal, plus 1.75 percent. For further information, call (800) 532-1169. Internet address: http://osdbuweb.dot.gov/.

If the contracting officer determines that synopsis of award is unnecessary, the rationale must be documented in writing and included in the contract file.

When applicable, the synopsis of contract award must include a statement identifying the contract as one containing Pub. L. 95-507 ((FAR) 48 C.F.R. 19.702) subcontracting plans and goals.

When a requirement is publicized through FedBizOpps, and an award announcement is required, the award announcement must also be publicized through FedBizOpps.

(a) Public announcement. Except as provided in (FAR) 48 C.F.R. 15.503), information on contracts valued at the threshold stated in (FAR) 48 C.F.R.5.303(a) must not be released to any source outside of DOT until the Assistant Secretary for Governmental Affairs (I-1) has advised the contracting officer that the contract may be released. The contracting officer may sign the contract, but no information may be released outside of DOT until the procedures contained in the subparagraphs below have been accomplished.

(1) The contract notification procedures contained in this subchapter and Form DOT F 4220.41, Contract Award Notification (see TAM 1253.205-70), must be used to transmit the required contract award information to I-1. The information contained on Form DOT F 4220.41 will be used by I-1 when preparing press releases and announcing contracts.

(2) Form DOT F 4220.41 must be prepared, signed, and submitted to I-1 by the contracting officer or other official designated by the OA.  The document must be delivered by hand to Room 10408 of the Nassif Building or by facsimile transmission to 202-366-3675.

(3) For those procurements subject to the requirements of TAM 1215.3, Source Selection, after the Source Selection Authority has selected the contractor(s) for award, the contracting officer must be notified immediately so that the Form DOT F 4220.41 can be prepared, signed, and transmitted to I-1. All personnel are reminded that contract information contained on Form DOT F 4220.41 may be competition sensitive. Information concerning the award must not be disclosed to parties outside of DOT except by I-1 and the contracting officer.

(4) Unless I-1 requests the contracting officer or other designated official not to proceed with contract award, awards may be announced on the third working day following receipt of the Form DOT F 4220.41 in I-1. The contracting officer is responsible for documenting the date the DOT F 4220.41 is received by I-1 by verifying receipt at (202) 366-9714.

The contracting officer must consult OA legal counsel and/or personnel from the Freedom of Information Act (FOIA) office, as applicable, regarding the decision to release or withhold information under (FAR) 48 C.F.R. 5.401(b). The contract file must document any decision to release or withhold information. A copy of the response from the FOIA office denying a request may be included in the file as the documentation.

(a) Individual requests. The HCA is authorized to approve the release of certain contract information to Members of Congress under (FAR) 48 C.F.R. 5.403.

(a) The contracting officer is authorized to release long-range acquisition estimates.

(b)(1) The contracting officer is responsible for ensuring that classified information is released through existing security channels in accordance with agency security regulations.  Contracting officers must comply with the security requirements set forth under TAM 1204.4 concerning the release of classified information.

(b)(2) The contracting officer is responsible for ensuring that the information is publicized as widely as practicable to all parties simultaneously by any of the means described in (FAR) 48 C.F.R. 5.

(a) Newspapers. An official one level above the contracting officer is authorized to approve the publication of paid advertisements in newspapers under (FAR) 48 C.F.R. 5.502(a).

(b) Other media. An official one level above the contracting officer is authorized to approve advertisements in media other than newspapers.

"Agency competition advocate" means an individual designated by the Senior Procurement Executive (SPE) to perform, at a minimum, the functions under Federal Acquisition Regulation (FAR) 48 C.F.R. 6.502(b) and is synonymous with "Departmental competition advocate" and "Senior Competition Advocate (SCA)."

"Competition advocate for the procuring activity" means the individual designated by the Head of the Operating Administration (HOA) to approve Justifications for Other than Full and Open Competition (JOTFOCs) as permitted by (FAR) 48 C.F.R. 6.304 and to perform the duties and responsibilities assigned under (FAR) 48 C.F.R. 6.502.  This is synonymous with “procuring activity competition advocate ”and “Operating Administration (OA) Competition Advocate”.

"Procuring activity," for the purposes of this chapter, means any headquarters or field organization designated by the HOA as having a significant acquisition function.

(b) If only one responsible offer is received from the release of a competitive solicitation, the contracting officer must attempt to ascertain the reasons for the lack of response and place a written statement in the contract file documenting all conclusions regarding the lack of competition under the solicitation prior to proceeding to award.

The Head of the Contracting Activity (HCA) is authorized to exclude a particular source from a contract action in order to establish or maintain an alternative source.  The HCA is also the individual authorized to approve a Determination and Findings (D&F) in support of a contract action awarded under the authority of (FAR) 48 C.F.R. 6.202(a).

The HCA is authorized to determine that only specified makes and models of technical equipment will satisfy the agency's need under (FAR) 48 C.F.R. 6.302-1(b)(4).

The contracting officer must ensure that the justification supporting the use of this authority is approved prior to contract award unless immediate loss of life or property, or other equally compelling circumstances, are involved. When such a compelling circumstance exists, the contracting officer should inform the approving official of the action at the earliest opportunity, preferably before award. In cases involving approval after award, the justification required by (FAR) 48 C.F.R. 6.303 must contain a summary of facts justifying approval after award, including a statement of the number of days that were available to execute the justification prior to award.

(a)(2) The authority of the head of the executive agency to authorize other than full and open competition due to public interest under (FAR) 48 C.F.R. 6.302-7 is reserved by the Secretary and may not be delegated. Operating Administrations (OAs) must coordinate and process all requests for a Secretarial determination under this authority through the SCA via the Head of the Operating Administration (HOA). The SCA must review the request and must prepare a recommendation to the Secretary regarding the merits of the request.

(c) All supporting documentation and a proposed determination and findings to be signed by the Secretary must accompany the request.

(a) Individuals acting in the place of approving officials must also meet the qualification requirements of (FAR) 48 C.F.R. 6.304.

(c) Class justifications must be approved by the same approval authority as for individual justifications (see (FAR) 48 C.F.R. 6.304(a) and TAM 1206.304(a) above).

The SPE is the individual authorized to appoint the Departmental Competition Advocate.  "Departmental competition advocate" is synonymous with "Senior Competition Advocate."  The HOA is the individual authorized to appoint competition advocates for the procuring activities.

(b)(2) Competition advocates for the procuring activities shall submit an annual OA report to the Departmental Competition Advocate on or before November 1 for the preceding fiscal year (i.e., the report for FY 05 covering October 1, 2004 through September 30, 2005, is due November 1, 2005).  The Departmental Competition Advocate shall submit an annual Departmental report to the SPE on or before December 15.

A listing of OA positions designated as competition advocates for the procuring activities (see TAM 1206.003-70 above) is maintained by the Office of the Senior Procurement Executive (OSPE).  The HOA or designee must provide any revisions to this listing to OSPE within 10 working days of designation.

This chapter establishes a disciplined Departmentwide acquisition planning procedure for procuring supplies, including systems, and services.

"Acquisition Plan" means a "written Acquisition Plan" in accordance with (FAR) 48 C.F.R. 7.105,  a "Procurement Forecast," an "Acquisition Strategy Meeting Record," or an "OMB Exhibit 300."

“Acquisition Planning package” means, as a minimum, the acquisition plan; and when bundling is planned, the DOT Form 4250.1, Small Business Program Review Form and the bundling justification documentation.  This term is synonymous with “acquisition package” as specified in (FAR) 48 C.F.R. 19.202-1(e)(1).

“Order” means an order placed under a Federal Supply Schedule contract, or a task-order contract or a delivery-order contract awarded by another agency (i.e., Government-wide acquisition contract or multi-agency contract).

(a) Acquisition planning should be initiated when an agency need is identified, preferably well in advance of the fiscal year in which contract award(s) is necessary and be accomplished in concert with the budget process.  Preliminary acquisition efforts (e.g., defining requirements; issuing market search synopses and draft specification/statements of work; preparing and releasing draft solicitations) may be performed before the plan is completed and approved. If the approved acquisition strategy in the plan is different than what was included in the initial draft solicitation, strong consideration should be given to issuing another draft solicitation to inform industry of the changes.

(b) No synopsis for a proposed contract action may be released, solicitations issued, or funds transferred within or outside the Department until the plan has been completed and approved.

(d)(1) DOT's Acquisition Plans (APs) vary by dollar threshold, complexity, or criticality of the acquisition(s).   Regardless of the AP used, when bundling is planned, the requirements in TAM 1207.107-70 shall be addressed.  For all acquisitions, a written Acquisition Plan (AP) in accordance with (FAR) 48 C.F.R. 7.105 is required, except--

(i) A DOT Procurement Forecast (see DOT F 4220.12) may be used when the acquisition(s) is over the simplified acquisition threshold and less than $2 million.  A Forecast may be used when contract bundling is planned except if it involves bundling pursuant to (FAR) 48 C.F.R. 7.107(c) where the Deputy Secretary is the final DOT authority. 

(ii) An Acquisition Strategy Meeting Record (ASMR), as described in TAM 1207.103-70, may be used when the acquisition(s) is $2 million or more and up to $20 million.

(iii) An OMB Exhibit 300, Capital Asset Plan/Business Case, supplemented by any requirement of (FAR) 48 C.F.R. 7.105 not in the Exhibit 300, shall be used OMB Circular A-11 and, when applicable for information technology, the Department Information Resources Management Manual (DIRMM) are followed. 

(2) The estimated dollar amounts shall include all options, later phases of the same project or program, and follow-on contracts.  Contract modifications, adding of new work, or changes under the "Changes" clause, may require changes to the existing AP or the development of a new AP as determined by the contracting officer in coordination with the requiring office.

(3) Acquisition planning is not required for:

(i) Emergency acquisitions (i.e., when the need for the supplies/services is of such an unusual and compelling urgency that the Government would be seriously injured if the supplies/services were not immediately acquired);

(ii) Actions subsequent to the initial submittal of a plan which have already been included as part of an approved plan (e.g., exercise of options);

(iii) Procurements conducted under the Small Business Innovative Research Program; and

(iv) General Working Agreements and supporting Project Plan Agreements between RITA/Volpe National Transportation Systems Center and DOT Operating Administrations (OAs) (see (TAR) 48 C.F.R. 1202.1).  Acquisitions (pursuant to (FAR) 48 C.F.R. 2.101) resulting from General Work Agreements and Project Plan Agreements are subject to the acquisition planning requirements of this chapter.

(q) See TAM 1207.503 for implementing procedures regarding functions that are inherently governmental.

The Acquisition Strategy Meeting Record (ASMR) is an AP developed when an acquisition strategy meeting is held and its discussion and decisions recorded. At the meeting, the applicable AP topics and structure specified in (FAR) 48 C.F.R. 7.105 (and if applicable, (FAR) 48 C.F.R. 7.106 and 7.107) are presented in briefing format, charts, handouts, etc. and formal written minutes or a memorandum prepared to summarize the decisions, actions and conclusions made. Any documentation used to assist in the decision making process shall be made a part of the AP. Topics not applicable are to be annotated as such with the reason for non-applicability unless it is self-explanatory. The approved AP is to be included in the contract file.

(a) The development of APs and updates is the responsibility of the acquisition planner (e.g., program manager). The acquisition planner is located within the requiring agency (if outside DOT) or within the requiring OA (if within DOT). The acquisition planner, among other functions, shall:

(1) Coordinate with all personnel responsible for significant aspects of the plan (e.g., contracting, fiscal, legal, technical, small business, competition advocate, and logistics);

(2) Provide input to the plan as necessary;

(3) Obtain applicable concurrences;

(4) Forward the plan through the approval process;

(5) Review and update the plan; and

(6) Form a team of individuals responsible for developing acquisition planning information pertinent to their areas of expertise.  Team members include:

(i) Requirements and logistics personnel.  Provides applicable input for the plan (e.g., quality, quantity, delivery requirements).

(ii) Contracting Officer.   Has responsibility for the overall business strategy of the plan including type of contract to be used, procurement milestones, and set-aside considerations.

(iii) Competition Advocate.   Provides input for promoting full and open competition, the acquisition of commercial items, and other related functions. See (FAR) 48 C.F.R. Part 6 and 7.104 for the role of the competition advocate.

(iv) Small Business Specialist (SBS).   Provides input that implements the small business program. See (FAR) 48 C.F.R. 7.104.

(a) When the SBS and the Small Business Administration Procurement Center Representative (PCR) (see TAM 1219.201-70) concur in the proposed bundling, the AP approving official makes the final bundling determination when approving the AP package except when the determination is made by the Deputy Secretary under (FAR) 48 C.F.R. 7.107(c).  In this instance, the determination is made by the Deputy Secretary before the HCA approves the AP.  See TAM 1207.170(b)(3). The contracting officer shall provide a copy of the completed DOT Form 4250.1 to the OSDBU. 

(b)  When the SBS or PCR considers bundling unnecessary, unjustified or not identified as bundled, the OSDBU is the final DOT authority to determine whether bundling is justified or necessary unless the conditions of (FAR) 48 C.F.R. 7.107(c) are met, then the Deputy Secretary is the final DOT authority.

(c)  If the PCR disagrees with the OSDBU’s determination that bundling is necessary or justified, the PCR can pursue an appeal with the SBA in accordance with(FAR) 48 C.F.R. 19.505.

Addendums may be used to include supplemental information to the AP.  For example, justification documentation supporting a   contract bundling action at (FAR) 48 C.F.R. 7.107(e) may become part of the AP package by attaching the determination to the AP vice incorporating it within the AP.

Planners shall review the requirements at (FAR) 48 C.F.R. 7.106 for consideration in any major acquisition as defined in TAM 1234 and include any relevant information in the AP.

(a) The contracting officer is the individual responsible for ensuring that market research is conducted to determine whether bundling is necessary and justified.  See (FAR) 48 C.F.R. 10.001(c) for additional requirements pertaining to market research.

(c) (1) The authority of the DOT Deputy Secretary (S-2), to determine that bundling is necessary and justified under the circumstances at (FAR) 48 C.F.R. 7.107(c), is non-delegable.

(2) When the contracting officer believes bundling is necessary and justified under the circumstances at (FAR) 48 C.F.R. 7.107(c), a copy of the AP package shall be provided to the Office of the Senior Procurement Executive at the same time it is coordinated with the OSDBU. 

(e) The substantial bundling documentation requirement applies to all proposed DOT contracts and orders (see (FAR) 48 C.F.R. 7.101) that involve bundling and are $2 million or more and not set-aside or reserved entirely for small businesses.

When a planned acquisition has not been set-aside or reserved entirely for small businesses and bundling is planned, the following minimum requirements apply:

(a) Updates. APs are to be reviewed by the acquisition planner at least once every 12 months.

(1) APs are to be updated when there is a significant change to the approved plan.  For example, APs may require updates for a new requirement, a change in existing requirements, a cost growth or a change in acquisition strategy including contract type;

(2) If, during a 12-month period, no significant change has occurred, the plan shall be reviewed by the approving official for accuracy, currency, and completeness.

(b) Approval and coordination.

(1) Before submitting for approval, the responsible requirements official shall coordinate the AP, including its updates, with the contracting officer and when appropriate, the competition advocate, legal counsel, and the SBS.

(2) Unless the AP is set-aside or reserved entirely for small businesses, the SBS and the PCR shall review an AP package when it involves a contract(s) or order(s) over the simplified acquisition threshold to ensure that any contract bundling is identified, necessary and justified and for impacts on the small business program.

(3)  Any AP package containing a bundling justification pursuant to (FAR) 48 C.F.R. 7.107(c) shall be approved by the Head of the Contracting Activity (HCA).  The HCA shall obtain the Deputy Secretary’s concurrence of the bundling determination prior to approving the AP.

(4) The following are DOT’s AP approval levels:

Deviations from the planning requirements of this subchapter are permissible when approved in writing by the applicable approving official in TAM 1207.170.  Deviation documentation is to be included in the contract file. Deviation requests shall:

(a) Describe the planning procedures from which deviation is requested.

(b) Contain details sufficient to explain the basis for the request

(c) Indicate recommended alternative procedures.

(a) The contracting officer shall transmit in writing to the responsible requirements office the actual offeror responses or a summary of their salient points.

(b) All transmittals shall request a prompt response to indicate whether the acquisition should remain as is, be amended, or cancelled. Before continuing with the negotiation or award of the acquisition, the contracting officer shall decide, in conjunction with the program manager, whether continuing outweighs the potential cost saving benefits of delaying the acquisition.

The decision to lease or purchase equipment shall be documented in the contract file and address, as a minimum, the factors in (FAR) 48 C.F.R. 7.401.

(e) Contracts cannot be awarded for services/functions that are inherently governmental as defined in (FAR) 48 C.F.R. 2.101. A written determination by the requiring office shall accompany purchase requests for services (either in whole or in part) that confirm that none of the services to be performed are inherently governmental. Any disagreement pertaining to the determination shall be resolved by the COCO before release of the solicitation.

The offices listed in Appendix A are authorized to make “excess personal property" determinations.  The Head of the Operating Administration (HOA) or their designees shall notify the Office of the Senior Procurement Executive (OSPE) within 30 days of any updates to this listing.

(a) The office initiating the procurement request or a designated representative shall furnish the contracting officer a signed statement identifying the supplies or services to be purchased and explaining why similar items listed in the applicable schedule will not meet the requirement. A waiver request shall be endorsed by the Chief of the Contracting Office (COCO) before forwarding to the General Services Administration for approval.

The Committee’s Procurement List and National Industries for the Blind and NISH regional offices can be found at http://www.jwod.gov/jwod/index.html

(b) Information Services, Office of the Secretary of Transportation (OST), is authorized to establish a central printing authority for DOT.  Each Operating Administration (OA) has appointed a printing control point (see Appendix B).  The approval from Information Services, Publications and Distribution Services Section, shall be obtained prior to acquiring in any manner any of the supplies or services delineated in(FAR) 48 C.F.R. 8.802(b).  HOAs or their designees must notify OSPE within 30 days of any updates to this listing.

(a)(2) The Office of Security and Administrative Management, OST, is responsible for issuing Departmental policy regarding the leasing of motor vehicles.  The OA offices shown in Appendix C are responsible for the certification requirements in (FAR) 48 C.F.R. 8.1102(a).  HOAs or their designees shall notify the OSPE within 30 days of any updates to this listing.

(c) COCO approval as required by (FAR) 48 C.F.R. 8.1102(c) shall be in writing and included in the contract file.

LISTING OF OA OFFICES RESPONSIBLE FOR MAKING
EXCESS PERSONAL PROPERTY DETERMINATIONS

LISTING OF OA PRINTING CONTROL POINTS

LISTING OF OA OFFICES AUTHORIZED TO CERTIFY
LEASING OF SEDANS AND STATION WAGONS

Form DOT F 4220.1, Determination of Prospective Contractor Responsibility, shall be used to make the determination and document that a contractor is/is not responsible.

(a)(1) The head of the contracting activity (HCA) is authorized to establish a qualification requirement. Prior to establishing a qualification requirement, the responsible technical office shall prepare and submit a written justification to the contracting officer for coordination and signature of the operating administration (OA) competition advocate.

(b) The responsible technical office shall prepare a written waiver request when applicable. The waiver shall be submitted to the contracting officer for coordination and signature of the OA competition advocate, and approval by the HCA.

(e) The HCA is authorized to approve procurements that do not need to be delayed in order to comply with (FAR) 48 C.F.R. 9.202(a).  A written justification shall be prepared by the responsible technical office and submitted to the contracting officer for coordination and signature of the OA competition advocate, and approval by the HCA.

(a)(2) The responsible technical office shall prepare a written determination to bear the cost of tests for a small business, and include the document in the contract file.   The name of the firm for which the no-cost qualification tests will be performed, the amount of increased competition expected, and the dollar value of anticipated future requirements for the qualified product should be a part of the determination.

(c)The responsible technical office shall provide the list of qualified manufacturers and suppliers to the contracting officer.

(b)  The HCA is authorized to determine that an emergency exists that would preclude enforcement of an established qualification requirement.   A written justification for the emergency shall be prepared by the responsible technical office and submitted to the contracting officer for the OA competition advocate’s concurrence and approval by the HCA.

(e)(3) The request that a qualification requirement not be enforced shall be written and justified by the technical office responsible for the acquisition. The request shall be submitted via the contracting officer with the OA competition advocate’s signature for approval by the HCA.

The initiator of the procurement request shall prepare a written statement addressing the factors enumerated in (FAR) 48 C.F.R. 9.302 whenever first article testing and approval is required. The statement shall be forwarded with the procurement request to the contracting office.

Debarment, suspension, and other actions which render a contractor ineligible to receive contract awards is a serious matter which deserves high level attention since there is an impact not only on DOT, but the entire Federal Government. The DOT procedures to implement the debarment and suspension requirements of (FAR) 48 C.F.R. Subpart 9.4 are set forth in this subchapter.

"Debarring official"—

(b) The HCA is authorized to impose debarments.

"Suspending official" –

The HCA is authorized to impose suspensions.

“Unfair trade practices” —

(3) The HCA is authorized to determine that a contractor knowingly made a false statement regarding a material element of a certification concerning the foreign content of an item of supply.

(c)(6) The HCA shall maintain records regarding debarment and suspension actions for 3 years after a contractor has been excluded from procurement programs.

(c)(7) The HCA shall establish any internal requirements necessary to ensure compliance with (FAR) 48 C.F.R. 9.404(c)(5)).

Executive Order 13224 provides a means to disrupt the financial support network for terrorists and terrorist organizations by blocking the assets of certain foreign individuals and entities which are listed on the Department of Treasury's Office of Foreign Assets Controls (OFAC) website.   Contracting officers shall not award any contract to any listed individual or organization.  The OFAC listing is also available on the Excluded Parties List System at http://www.epls.gov and is to be reviewed when checking for those debarred, suspended, or proposed for debarment in accordance with FAR 9.404. 

(a) The HCA is authorized to make a written determination of compelling reasons to solicit offers from, award contracts to, or consent to subcontract with contractors debarred, suspended, or proposed for debarment.

(d) The HCA is authorized to determine that a bid or offer should be considered from a contractor whose name or company is included on the listing.

The HCA is authorized to make a written determination of compelling reasons for continuing contracts and placing orders described in (FAR) 48 C.F.R. 9.405-1 after a contractor is debarred, suspended, or proposed for debarment.

The HCA is authorized to allow contracting officers to consent to subcontracts with contractors debarred, suspended, or proposed for debarment.

(c) The HCA is authorized to continue business dealings between the agency and a contractor that is debarred or proposed for debarment. However, see TAM 1223.506(e) regarding waivers to debarment or suspension determinations for actions under (FAR) 48 C.F.R. Subpart 23.5, Drug-Free Workplace.

(a) Investigation and referral. The Chief of the Contracting Office (COCO) shall promptly report a proposed debarment action directly to the HCA unless otherwise authorized by OA procedures. The report shall be in writing and coordinated with OA legal counsel before the report is signed by the COCO and sent to the HCA. The report shall contain the following information:

(1) The DOT official OA code to identify the OA taking action is as follows:  DOT (general) (DOT-OST); Federal Aviation Administration (DOT-FAA); Federal Highway Administration (DOT-FHWA); Federal Motor Carrier Safety Administration (DOT-FMCSA); Federal Railroad Administration (DOT-FRA); Federal Transit Administration (DOT-FTA); Maritime Administration (DOT-MARAD); National Highway Traffic Safety Administration (DOT-NHTSA); Pipeline and Hazardous Materials Safety Administration (DOT-PHMSA); Research and Innovative Technology Administration (DOT-RITA); and Saint Lawrence Development Corporation (DOT-SLSDC).

(2) Name, address and telephone number for the point of contact for the activity making the report;

(3) Name and address of the contractor;

(4) Names and addresses of the members of the board, principal officers, partners, owners, and managers;

(5) Names and addresses of all known affiliates, subsidiaries, or parent firms, and the nature of the business relationship;

(6) For each contract affected by the conduct being reported--

(i) The contract number;

(ii) Description of supplies or services;

(iii) The amount;

(iv) The percentage of completion;

(v) The amount paid to the contractor;

(vi) Whether the contract is assigned under the Assignment of Claims Act and, if so, to whom; and

(vii) The amount due to the contractor.

(7) For any other contracts outstanding with the contractor or any of its affiliates--

(i) The contractor number(s);

(ii) The amount(s);

(iii) The amounts paid to the contractor;

(iv) Whether the contract(s) is assigned under the Assignment of Claims Act and, if so, to whom; and

(v) The amount(s) due the contractor;

(8) A complete summary of all pertinent evidence and the status of any legal proceedings involving the contractor;

(9) An estimate of any damages sustained by the Government as a result of the contractor's action (explain how the estimate was calculated);

(10) The comments and recommendations of the contracting officer and each higher level contracting review authority regarding--

(i) Whether to suspend or debar the contractor;

(ii) Whether to apply limitations to the suspension or debarment;

(iii) The period of any recommended debarment; and

(iv) Whether to continue any current contracts with the contractor (explain why a recommendation regarding current contract is not included);

(11) When appropriate, as an enclosure to the report--

(i) A copy or extracts of each pertinent contract;

(ii) Witness statements or affidavits;

(iii) Copies of investigative reports;

(iv) Certified copies of indictments, judgments, and sentencing actions; and

(v) Any other appropriate exhibits or documents.

(b) Decisionmaking process. After receipt of the COCO report, the HCA may request from interested parties (including the contractor if deemed appropriate) a meeting or additional supporting information to assist in the debarment decision.

(c) Notice of proposal to debar.  After reviewing the COCO’s report, and any additional information received in accordance with paragraph (b) above, the HCA shall prepare and coordinate with the OA legal counsel, a written notice of proposed debarment.

(d) Debarring official's decision. When the contractor's submission raises a genuine dispute over facts material to the proposed debarment, the HCA may request the DOT Board of Contract Appeals (BCA) to conduct fact finding and provide a report containing the results of the fact finding.

(e) Notice of debarring official's decision.  The HCA shall notify the COCO of the decision whether or not to impose debarment.  The HCA shall forward the original signed decision to the COCO for inclusion in the contract file, and provide copies of the decision to the following offices:

1. GSA in accordance with (FAR) 48 C.F.R. 9.404(c);
   
   
2. SPE within 2 working days after being sent to GSA; and
   
   
3. OA Legal Counsel.

(d) The HCA is authorized to continue business dealings between the agency and a contractor that is suspended.  However, see TAM 1223.506(e) regarding waivers to debarment or suspension determinations for actions under (FAR) 48 C.F.R. Subpart 23.5, Drug-Free Workplace.

(a) Investigation and referral. The COCO shall promptly report a proposed suspension action directly to the HCA unless otherwise authorized by OA procedures. The report shall be in writing and coordinated with OA legal counsel before the report is signed by the COCO and sent to the HCA. The report shall contain the information listed in TAM 1209.406-3.

(b) Decisionmaking process. After receipt of the COCO report, the HCA may request from interested parties (including the contractor if deemed appropriate) a meeting or additional supporting information to assist in the suspension decision.

(c) Notice of suspension.  After reviewing the COCO ’s report, and any additional information received in accordance with paragraph (b) above, the HCA shall prepare and coordinate with the OA legal counsel, a written notice of suspension. 

(d) Suspending official's decision. When the contractor's submission raises a genuine dispute over facts material to the proposed suspension, the HCA may request the DOTBCA to conduct fact finding and provide a report containing the results of the fact finding. The HCA shall notify the COCO of the decision whether or not to impose a suspension. The HCA shall then forward the original signed decision to the COCO for inclusion in the contract file. The HCA shall provide copies of the decision to the following offices:

1. GSA in accordance with (FAR) 48 C.F.R. 9.404(c);
   
2. SPE within 2 working days after being sent to GSA; and
   
3. OA Legal Counsel.

(a)(2) When the offeror indicates the existence of an indictment, charge, conviction, or civil judgment, the contracting officer shall obtain from the offeror, the information deemed necessary concerning the issues and seek the advice of legal counsel on the affirmative statement(s). Prior to proceeding with the contract award, the contracting officer shall notify the HCA of the facts, and submit a written responsibility determination.

The HCA is authorized to waive any general rule or procedure of FAR 9.503 and this subchapter by determining that its application in a particular situation would not be in the Government's interest. This authority may not be re-delegated.

RESERVED

(b) The use of the metric system in DOT acquisitions is encouraged. Operating Administrations (OAs) requiring offices are responsible for utilizing the metric system in specifications, statements of work, and other related procurement documents. Procurement requests shall stipulate requirements using the metric system of measurement in accordance with the OA's metric transition plan. DOT Order 1020.1 series, Department of Transportation Transition to the Metric System, provides the DOT policy and administrative procedures, including the offices responsible for specific functions pertaining to DOT's use and transition to the metric system.

(d) DOT's implementation of environmental issues (e.g., the Resource and Recovery Act of 1976, Executive Order 13101, Greening the Government through Waste Prevention, Recycling, and Federal Acquisition) are found in TAM 1223.

(a) Solicitations and contracts that include electronic and information technology (EIT) deliverables must require contractor compliance with Section 508 Access Board standards. At a minimum, the following or language substantially similar to the following should be included in the statement of work or contract schedule when procuring EIT:

(b) Contracting officers may write additional special contract requirements or provisions in any solicitation or contract with an EIT deliverable to protect DOT from receiving non-compliant products. See Samples of Solicitation/Contract Language for EIT Procurements.

(c) When all or some portion of an EIT requirement is commercially unavailable, contracting officers should employ best value criteria in solicitations for EIT as an incentive to ensure maximum compliance among all proposed deliverables with Access Board standards. See a sample technical evaluation spreadsheet entitled, " Electronic Information Technology Accessibility Standards Technical Evaluation and Solicitation Section M Technical Evaluation Guidance - Section 508 Technical Evaluation of EIT.

(a) The contracting officer is authorized to require offerors to demonstrate that the items offered have either achieved commercial market acceptance or been satisfactorily supplied to an agency under current or recent contracts for the same or similar requirements, and otherwise meet the item description, specifications, or other criteria prescribed in the public notice and solicitation.

(d) The Head of the Contracting Activity (HCA) is authorized to reduce or waive the amount of liquidated damages assessed under a contract after approval to do so is granted by the Department of Treasury, Commissioner, Financial Management Service, or designee.

(c) To use the authority of the Defense Priorities and Allocations System (DPAS) (15 C.F.R. 700), OAs must submit their requests to the Department of Commerce (DOC) to acquire materials, products, and services in support of relevant programs.

(e)  The HCA is responsible for ensuring that their contracting offices comply with the DPAS. Contracting officers shall comply with the following procedures when using the DPAS to support delegate agency certified programs.

(1) Assignment of priority ratings by a delegate agency. When authorized (see (TAR) 48 C.F.R. 1211.602), contracting officers may assign priority ratings only to those contracts and orders placed with contractors to acquire products, materials, and services in support of that agency's national defense related certified programs. Generally, only a "DO" priority rating may be used on these contracts or orders. The "DX" priority rating may be used only on those contracts and orders placed in support of certified programs approved by the President as being of the highest national defense urgency.

(2) Assignment of priority ratings by other DOT OAs.  If a non-delegate DOT OA issues a contract or order for another Federal delegate agency, the OA, if requested by the delegate agency, may assign the appropriate "DO" or "DX" rating to the contractual document. The contracting officer of the non-delegate agency shall include a statement in the contractual document to indicate that the contract or order (or a specific item(s) under the contract or order) is being issued or procured for the delegate agency.

(3) Authorized Programs. Those DOD approved program categories certified for DPAS support are found in Schedule 1 to 15 C.F.R. 700.

(f) Contracting officers shall follow the procedures contained in paragraph (e) of this section when using rated orders.

(g) Special priorities assistance.

(1)   When the Department of the Navy (DON) funds a program of the Maritime Administration (MARAD), contracting officers for MARAD should obtain special priorities assistance (SPA) from the DON in accordance with MARAD's written procedures.

(2) If contracting officers cannot resolve requests for SPA, the requests shall be forwarded to the appropriate office at Headquarters for assistance and further action. If the Headquarters office cannot provide assistance, Headquarters may submit the original and two copies of Form BIS-999, Request for Special Priorities Assistance, via the appropriate channels, to the DOC. The form shall be thoroughly documented with all actions taken in attempting to resolve the request at the field and Headquarters levels.

(h) Violations of the DPAS. Violations of the DPAS by a contractor or subcontractor, at any tier, shall be reported to the DOC in accordance with OA procedures.

(f)(1)  The Head of the Contracting Activity (HCA) is authorized to determine if certain supplies or services to be acquired are to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack.  If this determination is made, the contracting officer may acquire the item(s) as a commercial item and shall justify this determination in the contract files.  The contracting officer shall notify the Office of the Senior Procurement Executive (OSPE) within five working days of the decision to use this authority.  The SPE may make a Department-wide determination that an item(s) is to be acquired to facilitate defense against or recovery from terrorism or nuclear, biological, chemical, or radiological attack; thereby, permitting the item to be acquired Department-wide as a commercial item.

(b)(4).  See TAM 1225.1001(a)(2)(iii) for the approving authority for waiving the examination of records clause.

(c) An individual waiver shall be approved by the Chief of the Contracting Office and a class waiver by the HCA. The waiver shall be reviewed by legal counsel.  An information copy of the class waiver shall be provided to the OSPE for a possible change to this manual.

The Head of the Contracting Activity (HCA) is authorized to determine if supplies or services are to be used to support a contingency operation or to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack, thereby increasing the simplified acquisition threshold from $100,000 to $250,000 (inside the United States) or $500,000 (outside the United States) (FAR) 48 C.F.R. Part 2.

(a) Except for acquisitions of $2,500 or less, Form DOT F 4230.1, Simplified Acquisition Summary and DOT F 4230.1a, may be used to document purchases covered by (FAR) 48 C.F.R. Part 13 and placed in the file.

(b) DOT contracting officers should follow the guidance at TAM 1219.800 when an award will be made in accordance with the Partnership Agreement between the Department of Transportation and the Small Business Administration.

(c) Purchase card holders shall be authorized and trained in accordance with Appendix B to this chapter, DOT Purchase/Credit Card Program. Individuals delegated authority for acquiring training services shall be authorized and trained in accordance with Appendix C to this chapter, DOT Procedures for Acquiring Training Services.

(g)(1) The Head of the Contracting Activity (HCA) is the individual authorized to determine if supplies or services are to be used to support a contingency operation or to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack.

(b) DOT policies and procedures for the use of the DOT Purchase/Credit Card Program are contained in Appendix B.

(b) The SF 30 shall be used to modify a purchase order.

The SF-30 shall be used to modify a BPA.

The SF-30 shall be used to modify a BPA.

When the authorized callers under the BPA are not within the Operating Administration (OA) which issued the BPA, the contracting officer or the designated representative of the contracting officer within the OA using the BPA is responsible for the review.

When the authorized callers under the BPA are not within the Operating Administration (OA) which issued the BPA, the contracting officer or the designated representative of the contracting officer within the OA using the BPA is responsible for the review.

(a) Effective October 1, 2001, and pursuant to the Treasury Department, Financial Management Services Policy Directive, the use of imprest funds is prohibited throughout the Federal Government absent a waiver by the appropriate agency official (see TAM 1213.305-2(c)) in extremely limited circumstances (see the Department of the Treasury website: http://fms.treas.gov/imprest/regulations.html ). OAs must eliminate the use of imprest funds unless they comply with the requirements of TAM 1213.305-2.

(b) The use of third party drafts (this does not include convenience checks covered in Appendix B) is generally prohibited in DOT, except where the Director, Office of Financial Management (B-30) has granted approval (see the memorandum from the Chief Financial Officer (C.F.O. Basso, March 30, 2000), which established DOT's policy to phase out third party drafts.

(c) The Office of Financial Management (B-30), is responsible for establishing DOT policy on the use of various payment mechanisms in contracting.  See DOT 2700.13C Cash Credit Debit Management.

(a) The Director, Office of Financial Management (B-30) may grant a waiver of the prohibition against the use of imprest funds only if the Treasury Department has already waived the Electronic Fund Payment (EFP) requirement pursuant to 31 C.F.R. 208, Management of Federal Agency Disbursements, and:

(1) Payments involve national security interest, military operations, or national disasters;

(2) Payments are made in furtherance of a law enforcement action;

(3) The amount owed is less than $25;

(4) The political, financial, or communications infrastructure of a foreign country does not support payment by a non-cash mechanism; or

(5) Payments are made in emergencies, or in mission critical circumstances, that are of such an unusual and compelling urgency that the government would otherwise be seriously injured unless payment is made by cash.

(b) The Director, Office of Financial Management (B-30) may grant a waiver of the prohibition against the use of third party drafts only if the Treasury Department has already waived the EFP requirement pursuant to 31 C.F.R. 208.

(a) The Director, Office of Financial Management (B-30) is the individual authorized to approve imprest fund transactions when a limit other than $500 is used.

(e) The individual making an approved purchase from the imprest fund shall be responsible for compliance with the documentation requirements of (FAR) 48 C.F.R. 13.305-4(a) and DOT Order 2700.13C series. The individual having acquisition authority to approve purchases from the imprest fund shall be responsible for checking the authorized purchase requisition for compliance with the internal control requirements mandated by DOT Order 2700.13C series.

The use of the SF 44 form is prohibited in DOT unless permission to use the form has been granted by the Director, Office of Financial Management (B-30).

DOT policies and procedures for acquiring training services using simplified acquisition procedures under a delegation of procurement authority are contained in Appendix C.

RESERVED

DEPARTMENT OF TRANSPORTATION PURCHASE/CREDIT CARD PROGRAM

I. GENERAL.

These policies and procedures implement the DOT Purchase/Credit Card Program. DOT encourages the use of the card for purchase and payment in accordance with FAR Part 13.301.

II. APPLICABILITY.

These policies and procedures apply to all DOT operating administrations (OA) and all DOT employees delegated procurement authority under this program.  OAs may authorize designated field offices to develop their own internal procedures to implement the DOT Purchase/Credit Card Program.

III. DEFINITIONS.

The definitions set forth below supplement those set forth in the General Services Administration (GSA) Smart Pay contracts.

A. "Agency Program Coordinator (APC)" (also referred to as the DOT Contracting Officer's Technical Representative (COTR)) means an individual designated by the ordering agency to perform contract administration within the limits of delegated authority. The individual shall have overall responsibility for the Purchase/Credit Card Program within DOT.  The APC for DOT is located in the Office of the Senior Procurement Executive (OSPE), Acquisition Services Division (M-63).

B. "Approving Official" means a Government employee(s) within the OA who has a number of cardholders under his/her purview and determines that cardholders' purchases are made within applicable regulations, policies, and procedures.

C. Reserved.

D. "Card Issuing Bank" means the bank which issues cards to cardholders and submits monthly statements to cardholders, approving officials, and finance offices detailing amounts of purchases and credits made by cardholders.

E. "Cardholder" means the individual Government employee within the OA who is a warranted contracting officer or to whom a written delegation of procurement authority (DPA) has been issued by the cognizant Chief of the Contracting Office (COCO) or designee granting the use of the purchase/credit card.

F. "Cardholder Statement" means a monthly statement submitted by the card issuing bank to each cardholder itemizing all purchase and credit transactions made within the established billing period.

G. “Contracting Officer’s Technical Representative (COTR)”.  See “Organization Program Coordinator.”

H. "Delegation of Procurement Authority (DPA)" means the authorization given by the COCO, or a designee appointed by the COCO with appropriate procurement authority, granting specific procurement authority to the individual Government employee for use of the purchase/credit card. OAs may choose to use the issuance of the purchase card as the DPA. In this case, the information required to establish a cardholder account is sufficient "documentation." Use of this method does not change any of the existing FAR, TAR, or TAM requirements, including the training, recordkeeping, and monitoring requirements.

I. "Disputes Contact" means a Government employee(s) within the OA who is responsible for resolving disputed purchases, credits for sales tax refunds, and credits for billing errors with the card issuing bank.

J. "DOT Contracting Officer's Technical Representative" (also referred to as Agency Program Coordinator) means the Government employee designated to perform contract administration functions within the limits of delegated authority and who serves as the liaison between the card issuing bank and the OA. The DOT COTR is located in M-63.

K. "Finance Office Contact" means a Government employee(s) within the OA who has the responsibility for responding to payment inquiries from the COTRs, card issuing bank, approving officials and cardholders.

L. “Merchant Category Codes (MCCs)” means the codes established by the bankcard associations or banks to identify different types of businesses.  Merchants select the codes best describing their business.  Approving officials may limit the types of businesses where the card will be accepted by limiting the MCCs available to the cardholder.

M. "Monthly Cardholder Purchase Limit" means the spending limit imposed on a cardholder's cumulative purchases in a given month.

N. "Monthly Office Limit" means the monthly spending limit imposed on each approving official's account.

O. "Nonexpendable Personal Property" means property which has a normal life expectancy of more than one year, has continuing use as a self-contained unit, is not consumed in use, does not lose its identity when put to use, or does not ordinarily become a non-severable component of other property.

P. “Organization Program Coordinator” (also referred to as the Contracting Officer’s Technical Representative) means the Government employee within the OA who will perform administration of the technical requirements of the Purchase/Credit Card Program for the OA.   

Q. "Single Purchase Limit" means the spending limit imposed on a cardholder for individual purchase/credit card transactions.

IV. PROGRAM STRUCTURE.

The design of the DOT Purchase/Credit Card Program is based on a hierarchical system developed to accommodate varying organizational structures within agencies.

V. OA RESPONSIBILITIES.

A. Internal Procedures. Each OA shall develop written internal Purchase/Credit Card Program procedures within the scope of the applicable GSA contract. The minimum elements to be addressed are set forth therein; and

1. Ensure that all prospective approving officials understand and comply with the validation requirements;

2. Submit approved purchase/credit card information to the card issuing bank;

3. Submit changes to cardholder single purchase or monthly purchase limits, or approving official monthly office limits to the card issuing bank;

4. Submit account cancellations to the card issuing bank; and

5. Coordinate the card reissuance report with approving officials and inform the card issuing bank which purchase/credit cards should be reissued. (Note: Renewal cards will not be reissued without prior approval.)

6. Ensure Electronic and Information Technology (see FAR 2.101) purchases are approved by the OA Chief Information Officer or designee by using the Form DOT F 4263.1 and ensure the accessibility requirements in TAM 1239 are met.

B. OA Organization Program Coordinator. Each OA shall:

1. Appoint an Organization Program Coordinator (also referred to as COTR), generally located within the Headquarters office, which will have overall responsibility for administering the Purchase/Credit Card Program within the OA.

2. Provide the Organization Program Coordinator (i.e., COTR) name, work address, routing symbol, room and telephone numbers to the Agency Program Coordinator (i.e., M-63). The OA Organization Program Coordinator will be the OA's central point of contact for Smart Pay Program related issues.

C. Training. Each OA shall develop training which will ensure that potential approving officials and cardholders fully understand their responsibilities regarding procurement regulations, finance requirements and internal procedures under the Purchase/Credit Card Program. The OA shall ensure that all prospective cardholders understand and comply with the monthly statement validation requirements, as set forth in the applicable GSA Smart Pay contract. Purchase/credit cards shall not be issued to potential cardholders until they have received purchase/credit card training. OAs may contact the Agency Program Coordinator in M-63 for assistance and information regarding existing training videos and manuals.  GSA offers an on-line training course at http://www.fss.gsa.gov/services/gsa-smartpay.  Cardholders and approving officials are required to take refresher training on an annual basis.

1. Procurement Training. Procurement training shall, at a minimum, address the requirements of Federal Acquisition Regulation (FAR) Part 3 (Improper Business Practices and Personal Conflicts of Interest), Part 8 (Required Sources of Supplies and Services), Part 13 (Simplified Acquisition Procedures), Part 22 (Application of Labor Laws to Government Acquisitions), Part 25 (Foreign Acquisition), the corresponding Transportation Acquisition Regulation (TAR); Transportation Acquisition Manual (TAM); the applicable GSA contract; and internal OA procedures.

2. Finance Training. Finance training shall, at a minimum, address the requirements for safekeeping of purchase/credit cards and account numbers, retention of receipts for charges and credits for purchases, returns and disputed items, record keeping for purchase/credit card purchases, timely validation of monthly statements of account, summarization of accounting data on monthly statements of account, procedures to follow for account set-up, account changes and cancellation, disputes resolution, and procedures to follow if a purchase/credit card is lost or stolen.

3. Property Control Training. OAs are encouraged to include property management and control training to address the requirements for notifying the appropriate officials (i.e., property manager, property officer, property accountable officer) of delivery of non-expendable personal property in order to assure proper handling and inventory control of items ordered using the purchase/credit card.

4. EIT Accessibility Training. EIT accessibility training shall, at a minimum, address the requirements for compliance with the documentation prescribed in TAM, Chapter 1239 when an EIT deliverable may result from a procurement.

D. Delivery Order Issuance. To begin participation in the Smart Pay Program, each OA or designated field office must submit a delivery order (D.O.) to the card issuing bank requesting participation in the program. A copy of the developed internal procedures must be forwarded as an attachment to the D.O. The D.O. may be prepared on an OF 347, Order for Supplies or Services, or may be submitted in letter format. At a minimum, the D.O. should provide names and telephone numbers for the OA Organization Program Coordinator, the Finance Office Contact, and the Disputes Office Contact. OAs may assign a different individual for each of these contact points, may elect to assign one individual for each of the contact points, or may assign more than one individual to each of the contact points. See the GSA Smart Pay website for more information.

E. Account Set-Up. The card issuing bank will provide the cardholder and approving official with account information in accordance with the applicable GSA contract.

1. Qualifications. OAs are responsible for determining the professional responsibility of prospective cardholders and approving officials.  OA procedures are to describe how this responsibility will be carried out and by whom.

2. Account Set-Up Forms. Set-up forms completed by prospective approving officials and cardholders should be sent to the OA Organization Program Coordinator or designee, for review. The OA Organization Program Coordinator or designee, will review each approving official and cardholder application for accuracy and completeness. The prospective cardholder set-up form should be approved by the cognizant approving official, who shall forward the form to the card issuing bank for processing and issuance of the purchase/credit card.

3. Purchase Limitations. The purchase limitations which are established under the Smart Pay Program should generally be based upon budgetary constraints, actual need, and the ability of the procuring office to monitor compliance.  Approving officials, in conjunction with their OA Organization Program Coordinator, should periodically review purchase card limits to ensure limits are commensurate with needs.

a. Single Purchase Limit. The cognizant approving official will determine the single purchase limit when initiating each cardholder's account set-up form. The approving official shall consider the requirements in VII, C, Use of the Purchase/Credit Card when determining the purchase limits.

(1) A single purchase/credit card transaction may consist of the purchase of a number of individual items, the sum of which (including any shipping costs) may not exceed the single transaction purchase limit. A requirement which would exceed an individual cardholder's single transaction purchase limitation shall not be divided or "split" into two or more transactions to stay under the single transaction purchase limitation. When a requirement exceeds a cardholder’s single transaction purchase limit, the cardholder shall contact the appropriate servicing procurement office.  The single transaction purchase limit for non-warranted personnel generally may not exceed $2,500. Organization Program Coordinators must consider the requirements in Section VII, C, 1 before authorizing a single purchase limit over $2,500.

(2) Except for credit card purchases of training services which are limited to the micro-purchase threshold of $2,500 (FAR 2.101), cardholders may be authorized single transaction purchase limits up to the simplified acquisition threshold limit as defined in (FAR) 48 CFR Part 2.

b. Monthly Cardholder Purchase Limit. The cognizant approving official will determine the monthly purchase limit for each cardholder under his or her purview.

c. Monthly Office Limit. The monthly office limit is the total monthly limit established for each approving official's account by the funds administrator/accounting certification official. This figure is generally computed by combining the monthly purchase limits of all cardholders under the approving official's purview. It should be noted that whenever a cardholder's monthly purchase limit is increased, the corresponding approving official's monthly office limit must also be increased accordingly. Failure to do so may result in purchase/credit card transaction delays.

4. Finance office reports. The finance office will receive monthly finance office reports from the card issuing bank which will have summary totals of all of the purchases and credits of approving officials under their cognizance. The finance office report generally represents the invoice from the bank.

VI. INDIVIDUAL RESPONSIBILITIES.

Separation of Duties - Responsibilities of the HCA, OA Organization Program Coordinator, approving officials, cardholders, and finance personnel shall not overlap.    A separation of duties shall exist among the key participants of the program to ensure the program’s integrity.  There must be no conflict of interest.  For example, cardholders should never be approving officials for their supervisors.  A single individual should not buy, receive, and certify funds availability for purchases.  Assignment of duties such as authorizing, approving and recording transactions, receiving assets, approving cardholders statements, making payments, certifying funds, reviewing or auditing should be assigned to separate individuals to the greatest extent possible.

The following are some examples of Smart Pay Program official responsibilities:

A. HCA. The HCA is responsible for the overall operation of the Purchase/Credit Card Program within their organization and may delegate the responsibilities delineated below to the OA COTR or other designated official(s) as they determine appropriate. These responsibilities include:

1. Taking appropriate action to inform organizations within the OA that the DOT Purchase/Credit Card Program is available for use;

2. Distributing account set-up forms to prospective cardholders and approving officials;

3. Coordinating training for cardholders and approving officials;

4. Approving applications for cardholders and approving officials;

5. Approving changes in authorized merchant codes, single and monthly cardholder purchase limits, single and monthly office spending limits;

6. Cancelling purchase/credit card privileges of cardholders;

7. Receiving monthly management reports from the card issuing bank; and

8. Appointing the OA Organization Program Coordinator.

B. OA Organization Program Coordinator. The OA Organization Program Coordinator or designee will generally perform all technical aspects of contract administration and will be the primary liaison between the finance office, disputes contact, and the card issuing bank. The OA Organization Program Coordinator or designee will have responsibility for:

1. Ensuring each designated cardholder receives training;

2. Making the tax exempt number available to cardholders and approving officials; and

3. Ensuring proper destruction of any information management reports related to the program.

C. Finance Office Contact. The finance office contact is generally responsible for payment of all authorized and certified purchases to the card issuing bank. Finance offices will receive reports from the card issuing bank which will have summary totals of all of the purchases and credits of approving officials under their cognizance. The finance office report generally represents the invoice from the bank. The finance office will have responsibility for:

1. Certifying for payment all authorized card transactions;

2. Reviewing the approving official statements along with the accompanying cardholder's statements to verify that the transactions were authorized and that goods or services were received and accepted or returned;

3. Reconciling the cardholder's statements to summary totals on the approving official's statement, including annotating and resolving any discrepancies with the approving official prior to releasing payment; and

4. Making payment to the card issuing bank in accordance with the Prompt Payment Act. Accordingly, if finance offices receive late approving official statements, interest penalties may be incurred.

D. Approving Official. The approving official will generally be responsible for nominating potential cardholders within his or her purview, in accordance with OA procedures, and for administering the Purchase/Credit Card Program for those cardholders. Approving officials shall have no more than 10 cardholders under their purview, unless unavoidable circumstances make it impossible to achieve this ratio.  The unavoidable circumstances shall be documented, and approved at a level above the approving official.  The following are some examples of approving official responsibilities:

1. Preparing and submitting cardholder and approving official account set-up information, and other required information to the OA Organization Program Coordinator or designee;

2. Determining the appropriate dollar amount of single transaction purchase limits for each cardholder under his/her purview;

3. Ensuring that all cardholders validate account purchases and credits itemized on cardholder statements within seven calendar days after receipt or in the absence (planned or otherwise) of the cardholders, reconciling the cardholder's monthly statements within seven days after receipt;

4. Verifying that all purchases by cardholders were authorized purchases;

5. Ensuring the proper accounting classification data and any disputed items are clearly documented;

6. Promptly processing for payment all cardholder's monthly statements of account;

7. Initiating appropriate action if a cardholder uses a purchase/credit card in an unauthorized manner, including cancellation of the cardholder's account and disciplinary action if appropriate;

8. Confirming written notification to the card issuing bank and OA within five working days following the loss or theft of a purchase/credit card; and

9. Selecting the appropriate MCCs for cardholders under his/her purview.  Approving officials should restrict MCCs associated with bars, liquor stores, massage parlors, etc.

E. Cardholder. The cardholder is responsible for executing purchase/credit card transactions within the limits of his/her DPA; complying with the FAR, TAR, TAM, the applicable GSA contract, and internal OA guidance; and verifying that:

1. Purchases and credits itemized on his or her monthly cardholder statement of account are only for goods or services received or returned;

2. Sales tax has not been charged;

3. Merchants have not charged the account prior to the date of shipment; and

4. Merchants have not passed on their purchase card interchange fees to the Government.

All Purchase/Credit Card Program officials shall exercise care to safeguard cardholder account information when disposing of management or financial reports received from the card issuing bank.  Supporting documentation for purchase card transactions shall be maintained for a period of 3 years for purposes of audits and/or procurement management reviews.

VII. GENERAL SMART PAY PROGRAM INFORMATION.

A. Receipt of the Purchase/Credit Card. The card issuing bank will send the card directly to the cardholder at the work address specified on the set-up form. Upon receipt of the purchase/credit card, the cardholder must immediately sign the acknowledgement form and return it to the card issuing bank. Failure to do so will result in generation of the Card Receipt Acknowledgement Outstanding Report to the cognizant approving official.

B. Purchase/Credit Card Appearance. The Smart Pay card is easily discernible in its appearance from personal commercial credit cards.

C. Use of the Purchase/Credit Card.

1. In accordance with (FAR) 48 CFR Part 13.301, purchase cards can be used to: 1) make micro-purchases; 2) place a task or delivery order (if authorized in the basic contract, basic ordering agreement, or blanket purchase agreement); or 3) make payments, when the contractor agrees to accept payment by the card.

(a) Purchase cards cannot substitute for the acquisition process. The purchase card may be used as a payment mechanism, but not a contracting mechanism. Cardholders with delegations in excess of $2,500 are required to follow all the appropriate competition and documentation requirements as defined in (FAR) 48 CFR Part 13 including notice, competition, and documentation. If a purchase over $2,500 is anticipated and the product or service is not being acquired under an existing contract, the cardholder must include all applicable FAR and TAR clauses in solicitation/award documents. The purchase may be confirmed and the clauses included in an e-mail. However, do not include the purchase card number in the message. Clauses are not required if the purchase is made under an existing contract such as a GSA schedule or BPA in which clauses have been included.

(b) Delegations shall include the above information and any limitation on the types of procurements a cardholder can make over $2,500.

2. Use of the purchase/credit card shall be restricted to Government personnel who have received proper training in the use of the card. Furthermore, except as authorized by the applicable GSA contract, the only person authorized to use the card is the person whose name appears on the purchase/credit card. Permitting someone else to use an individual cardholder's purchase/credit card, even within the same program office or activity, may result in disciplinary action and/or cancellation of cardholder privileges. Additionally, the purchase/credit card shall not be issued to or used by contractor personnel under any circumstances.

3. Cardholders should always notify the vendor/contractor not to charge the card for the purchases until shipment is made and that purchases are for official U.S. Government purposes and, therefore, are tax exempt.

4. Cardholders shall review all potential acquisitions, including imprest fund transactions, to determine whether the procurement can be accomplished through the use of the Smart Pay Program. If the vendor/contractor accepts the purchase/credit card, the purchase shall be made in accordance with these procedures.

D. Unauthorized Use of the Purchase/Credit Card.

1. Prohibited Use of the Purchase/Credit Card. In addition to the limitations on the use of the Smart Pay Program purchase/credit card set forth in the applicable GSA contract, the purchase/credit card shall not be used for the following:

a. Personal purchases or as identification when cashing a personal check; and

b. Open market purchase of items available from mandatory sources.

2. Regulated Purchases. Each OA must determine if they will permit use of the purchase/credit card for circumstances which have been designated as regulated purchases in the applicable GSA contract. If buying regulated purchases is authorized in OA procedures, the required level of approval within the OA must be specified, and OA procedures must specifically address the situations when the purchase of regulated items are permitted.

3. GAO Special Interest Items. GAO decisions surrounding the concept of the "availability of appropriations" are often stated in terms of whether appropriated funds are or are not "legally available" for a given expenditure. Restrictions on the purposes for which appropriated funds may be used come from a variety of sources, including the Constitution, DOT Appropriations Acts, and decisions of the Comptroller General and his predecessor, the Comptroller of the Treasury. OAs are encouraged to review the GAO publication entitled Principles of Federal Appropriations Law (Volume 1, Volume 2, and Volume 3) and provide coverage of the above areas when developing its Purchase/Credit Card Program procedures.  When developing purchase card procedures, OAs should consider that "accounting officers of the Government" have often applied restrictions on the following types of expenditures:

a. Payment of attorney's fees;

b. Purchase of entertainment and recreation;

c. Payment of personal membership fees; and

d. Payment of personal expense items such as gifts for employees, entry fees for contests, medals or trophies, and coffee/donuts for conferences or meetings.

4. On-line Money Transfer Services.  Purchases made utilizing on-line money transfer services (e.g., PayPal, c2it by Citibank, EBay) are prohibited, unless approved at a level above the approving official.  These purchases lack transparency (i.e., the purchases are often categorized under general MCCs), and are not covered under the bank’s disputes/charge back procedures.

5. Publicizing Misuse/Fraud Cases. DOT will post/publicize purchase card misuse/fraud cases on the Acquisition and Grants Homepage.  Cases will be posted/publicized without names.  Each OA shall designate, in writing, an individual who will be responsible for notifying the OSPE of all such cases; explaining the offense and the disciplinary action taken.  The HCA shall ensure that a copy of the designation is submitted to the OSPE.  Guidelines for disciplinary action for purchase card misuse and fraud are contained in the Assistant Secretary of Administration’s memorandum of March 24, 2003, “Government Purchase Card Policy Violations.”

E. Fund Control.

1. Each OA shall include in its internal controls the method it will use to control funds within the purchase/credit card program. The internal controls must effectively ensure that funds are not expended in excess of the appropriation.

2. The use of an individual Purchase Request (PR) for each purchase/credit card transaction is optional; however, all purchase transactions made by a cardholder shall be supported by a certification of funds availability and an accountable document (e.g., a sales slip for over-the-counter purchases, invoices, packing slips, and a telephone log for telephone purchases).

3. Funds may be controlled in the finance office or by the approving official. The following approaches are provided as suggestions and are not intended to be the only means of funds control to be used in the purchase/credit card program:

a. The monthly limit for each approving official may be used by the finance office to commit at the beginning of each monthly card billing cycle. When approving officials forward their monthly statements, the amount of the recorded commitment will be reversed and expenditures will be recorded for the net amount of purchases made for the month.

b. The approving official may exercise fund control by establishing annual, quarterly or monthly commitment accounts for each cardholder under his/her purview, from which the cardholder could draw down when making purchases with the card.

4. Because PRs or other funding documents are not generally distributed to finance offices for obligation purposes under the Smart Pay Program, OAs need to pay special attention to end of fiscal year purchases to ensure funds are obligated timely to preclude the loss of funds.

F. Validation of Purchases. Individual cardholders, approving officials and finance offices are responsible for verifying, validating and certifying for payment all authorized card purchases in accordance with paragraph VI. above and OA implementing procedures.

G. Billing Disputes. Cardholders are responsible for disputing any erroneous charges appearing on the monthly cardholder statement of account. Items returned to vendors and charges by a merchant before the date of shipment are examples of disputable items.

1. Cardholders must transmit to the card issuing bank a completed Dispute Form for disputed items within seven calendar days after receipt of the monthly statement. This form will be provided by the card issuing bank. A copy of the form must also be provided with the cardholder's statement to the cognizant approving official.

2. An example of an item which cannot be disputed with the card issuing bank is sales tax. Since purchases made with a U.S. Government purchase/credit card are tax free, the cardholder must contact the vendor and request a credit for the amount of sales tax charged, if the disputed charge involves sales tax erroneously charged to the purchase. Cardholders may provide the merchant with the card issuing bank's toll free number on the back of the purchase/credit card, if the merchant questions the sales tax exemption. Currently, all states have submitted letters acknowledging that the Government purchase/credit card qualifies for sales tax exemption.

H. Costs of the Program. The card issuing bank, in accordance with the applicable GSA contract, receives payment for providing services from these sources:

1. Late payments. If an OA makes a late payment to the card issuing bank, interest will be paid for the number of days late, computed at the Renegotiation Board Interest Rate.

2. MasterCard Interchange Fees. The card issuing bank receives payment from MasterCard for interchange fees, which are paid by vendors which accept Government purchase/credit cards for purchases. The interchange fees compensate the card merchant bank, card issuing bank, and MasterCard, which comprise the purchase/credit card network.

I. Lost or Stolen Purchase/Credit Cards. The minimum notification requirements are set forth in the applicable GSA contract. Failure to notify the card issuing bank immediately of the loss or theft could result in the OA being liable for subsequent purchases charged to the card.

J. Refunds. The refund table for the current Smart Pay contract is located on the GSA Smart Pay website.

K. Purchase/Credit Card Cancellations and De-activations. The OA Organization Program Coordinator or designee, will have the responsibility for canceling purchase/credit cards due to retirement, resignation, death, or termination of employment in accordance with established OA purchase card/credit card procedures. The procedures should provide for prompt notification of cancellation so that the proper forms may be submitted to the card issuing bank. Other grounds for purchase/credit card cancellation include overdue charge balances, or using a Government purchase/credit card for personal use.  The OA Organization Program Coordinator, in conjunction with approving officials, should periodically review purchase card activity, and consider de-activating cards that are not being used on a regular basis (i.e., 6 months of no activity).  Cards may be activated on an as-needed basis.

L. Personal Use. Disciplinary action will be taken against individuals using the Government purchase/credit card for personal use. Disciplinary action can range from a letter in the cardholder's official personnel file to a termination action, based upon the facts involved regarding the documented personal purchases and the OA Purchase/Credit Card Program procedures.  The Assistant Secretary of Administration’s memorandum of March 24, 2003, “Government Purchase Card Policy Violations,” addresses the Department’s disciplinary policy for purchase card misuse and fraud.

M. Liabilities.

1. Purchase(s) by an unauthorized person. OAs will not be liable for any use of purchase/credit cards by a person who does not have actual or implied authority to utilize the purchase/credit card, provided that reasonable efforts are made to promptly notify the card issuing bank by telephone and in writing when purchase/credit cards are lost or stolen.

2. Unauthorized purchases by cardholders. OAs will be liable for unauthorized purchases made by cardholders, provided that:

a. The purchase was made through an approved merchant (i.e., merchant category code has not been blocked by A/OPC); and

b. The amount of the purchase did not exceed the cardholder's single purchase or monthly spending limits.

N. Convenience Checks. A convenience check is another instrument used for buying goods and services and should be treated just like the purchase card (i.e. documentation, etc.). Check writers are required to follow the same regulations, policies, and procedures as cardholders.  Convenience checks are for official use only and should only be used when the merchants do not accept the purchase card.  Convenience checks shall never be paid payable to DOT employees, and shall not be used to reimburse DOT employees for personal and/or business related expenses.  DOT must pay 1.9% of the total amount of the check for each check issued.

VIII. WRITTEN PROCEDURES, AUDIT AND REVIEW OF PURCHASE/CREDIT CARD TRANSACTIONS.

A. Written procedures developed by the OAs implementing the Purchase/Credit Card Program within their organizations must incorporate tight management controls to preclude abuse and outline courses of action in case abuses occur.

B. Each participating COCO must maintain oversight of the Purchase/Credit Card Program through regularly scheduled and/or randomly scheduled procurement management reviews of purchase/credit card transaction logs and documentation. These reviews shall include an examination of the Merchant Category Codes and/or the North American Industry Classification System (NAICS) code associated with card transactions.  These reviews may be performed in conjunction with regularly scheduled reviews (see TAM 1201.671) or as a separate review function. Some areas to specifically cover include:

1. Adequate funding;

2. Splitting of orders;

3. Including appropriate clauses for items purchased on the open market;

4. Small business set aside compliance;

5. Purchase of improper items;

6. Use of purchase/credit cards by other than authorized users;

7. Informal ratification of unauthorized commitments; 

8. Separation of duties among purchase card program participants;

9. Purchase card dollar limits to ensure limits are commensurate with needs;

10. Approving official/cardholder ratio (no more than 10 cardholders per approving official); and

11. Validation of purchases by cardholders, approving officials, and finance office contacts.

DEPARTMENT OF TRANSPORTATION PROCEDURES FOR ACQUIRING TRAINING SERVICES

I. GENERAL.

Department of Transportation (DOT) policies and procedures for acquiring training services by other than warranted contracting personnel are set forth herein.

II. DEFINITIONS.

A. "Chief of the Contracting Office (COCO)" means the individual responsible for managing the contracting office(s) within an Operating Administration (OA). The COCO (or designee) is the official granting a delegation of procurement authority (DPA) under these procedures.

B. "Commercially-available/off-the-shelf," means existing training that is regularly offered to the general public and/or Government personnel in the course of normal business operations. The term includes training offered by a college, university, professional association, group, or organization. The term does not include training specifically developed, designed, or produced to meet a particular DOT requirement.

C. "Delegation of Procurement Authority (DPA)" means the authorizing document, approved and signed by the responsible COCO or designee granting specific procurement authority to an individual Government employee. If required by the organizational structure of the OA, the COCO or designee shall obtain the approval of the Head of the Contracting Activity prior to granting DPAs under these procedures.

D. "Established catalog or market price" means a catalog, price list, schedule or other verifiable and established record that: (1) is published or otherwise available for customer inspection, (2) states the current or last sales price to the public or private sector (3) is established in the course of ordinary and usual trade between buyers and sellers, and (4) can be substantiated by data from sources independent of the vendor.

E. "Fixed amount" means the cost of the training is of a firm amount (e.g., price per student, event, session, class program, course, seminar, or other instructional service).

F. "Head of the Contracting Activity (HCA)" means the individual responsible for managing the contracting offices within an OA who is a member of the Senior Executive Service or a flag officer.

G. "Simplified acquisition procedure" means the acquisition of training services by the methods prescribed in Federal Acquisition Regulation (FAR) 48 C.F.R. Part 13, and as implemented by the Transportation Acquisition Regulation (TAR) and the Transportation Acquisition Manual (TAM).

H. "Training" as defined in the Government Employees Training Act (GETA), 5 U.S.C. 4101(4), means the process of providing for and making available to an employee, and placing or enrolling the employee in, a planned, prepared, and coordinated program, course (including correspondence), curriculum, subject, system, or routine of instruction of education, in scientific, professional, technical, or mechanical trade, clerical, fiscal, administrative, or other fields, which will improve individual and organizational performance and assist in achieving the agency's mission and performance goals. For the purposes of these procedures, the term includes meetings, seminars, conferences, symposia and associated course training materials (e.g., study plans, workbooks, handbooks, and manuals) furnished with the training. It is not appropriate to use the SF-182 to purchase miscellaneous training supplies without also purchasing training.

III. POLICY.

No employee of DOT, other than a contracting officer or a recipient of a Delegation of Procurement Authority (DPA), operating within the limits of his or her authority, may enter into formal contracts, authorize contract modifications or otherwise contractually bind, commit or obligate the Government for training.

DPA recipients are only authorized to procure training under the conditions prescribed in paragraph IV. below. Otherwise, training must be procured by warranted DOT contracting officers.

Training shall be acquired within the limitations and procedures of the GETA, FAR, TAR, TAM, and the Departmental Personnel Manual (DPM). If the acquisition is accomplished through the use of the purchase/credit card, Appendix B, and OA purchase/credit card procedures shall be followed.

IV. APPLICABILITY.

The policies and procedures set forth herein apply to the Office of the Inspector General (OIG) and the OAs when:

A. A DPA has been issued to a specific individual authorizing the acquisition of supplies or services in support of DOT’s mission.

B. The training cost for an individual student or training requirement does not exceed the lesser of:

- a limitation set forth in an individual's DPA; or

- the simplified acquisition threshold established by (FAR) 48 C.F.R. Part 2;

C. The annual, reasonably foreseeable, aggregate training requirements cost does not exceed the simplified acquisition threshold. It would be inappropriate to segregate a known requirement for several courses on a specific subject into an individual requirement by date of offering or other means in order to circumvent the simplified acquisition threshold and, therefore, avoid sending the requirement to a contracting office for processing).

D. The training cost is based upon pre-established fixed catalog or market prices;

E. The training is available from a Government source of supply (e.g., General Services Administration, Office of Personnel Management, etc.) OR is commercially available/off-the-shelf or modified commercially available off-the-shelf as set forth in paragraph VI.G. below; and

F. The contracting methods discussed in paragraphs V.C. or VI.C. below are used to acquire training services.

V. ACQUISITIONS WITHIN THE MICRO-PURCHASE THRESHOLD ($2,500 or less):

The DOT Purchase/Credit Card Program is the preferred method of acquiring all training services in an amount of $2,500 or less. Every effort shall be made to provide purchase/credit cards to individuals (normally human resources management personnel) who are responsible for acquiring training services of $2,500 or less in support of their activity.

A. Simplified acquisition training.

Each prospective DPA recipient is required to attend simplified acquisition training equivalent to the purchase/credit card training conducted by the OA (see Appendix B, Chapter V.C.).

B. Delegation of Procurement Authority (DPA).

1. Appendix B details the process for identifying prospective cardholders and processing card account set-up forms, and the required procurement, finance and property control training. Upon completion of the simplified acquisition training, an individual who has been granted a purchase/credit card DPA and issued a card is authorized to acquire training services within the limits of the DPA, the policies and procedures for the use of the purchase/credit card set forth in Appendix B, and the OA purchase/credit card procedures.

2. Copies of pertinent acquisition regulations referenced in these procedures (including the DOT/OA purchase/credit card procedures), if not received as part of the simplified acquisition training, shall be requested from the responsible COCO by the Purchase/Credit Card Program approving official when preparing and submitting cardholder account set-up forms.

3. DPA recipients shall be appointed in writing. A memorandum shall be used to grant a purchase/credit card DPA. At the discretion of the OA and the responsible COCO, a purchase/credit card DPA and a DPA for acquiring training services in an amount of $2,500 (micro-purchase threshold) or less can be combined.

C. Methods of Acquiring Training Services.

1. DOT Purchase/Credit Card Program.

D. Funds Certification.

A Purchase Request (PR) DOT F 4200.1 is not required to acquire training services using a government purchase/credit card. In lieu of a PR, required approvals or funds certification may be secured by any method prescribed by an OA for recording the action.  The action may be recorded by means of a memorandum, routing slip or other written documentation, by annual, quarterly or monthly commitment accounts established by accounting certification officers/funds administrators; by using electronic mail to document approvals and certifications, etc.

E. Competition.

Purchases within the micro-purchase threshold ($2,500 or less) may be made without securing competition, if the price is determined fair and reasonable. Requirements in excess of $2,500 shall not be divided or "split" into two or more separate purchases in order to avoid competition.

VI. ACQUISITIONS GREATER THAN THE MICRO-PURCHASE THRESHOLD (greater than $2,500):

A. Simplified acquisition training.

Each prospective DPA recipient will be required to attend formal simplified acquisition training that, at a minimum, addresses the requirements of FAR Part 3, (Improper Business Practices and Personal Conflicts of Interest), FAR Part 8 (Required Sources of Supplies and Services), and FAR Part 13 (Simplified Acquisition Procedures). Contracting offices shall assist in identifying qualified simplified acquisition training courses for prospective DPA recipients.

B. Delegation of Procurement Authority.

1. The Office of the Inspector General (OIG) and each OA shall identify those Government employees (normally human resources management personnel) required to perform training support functions within their activity to be designated as DPA recipients responsible for acquiring training services within the limitations set forth in this Appendix C.  When selecting prospective DPA recipients, consideration shall be given to an individual's experience in obtaining training services, business acumen, judgment, character and demonstrated financial responsibility (i.e., no seriously delinquent debts such as travel advances or charge card balances).

2. Upon successful completion of the required simplified acquisition training, the director/manager of the human resource office (or designee) will submit the name of the prospective DPA recipient (and a copy of the individual's course completion certificate or equivalent documentation) to the responsible COCO, requesting the issuance of a DPA. At the discretion of the COCO, a written DPA will be granted designating the individual as an authorized official for the acquisition of training services within the limitations and procedures of GETA, FAR, TAR, TAM, DPM and the procedures set forth in this Appendix C.

3. Copies of pertinent acquisition regulations referenced in these procedures, if not received as a part of the simplified acquisition training, shall be requested from the DPA granting official when requesting a DPA. A memorandum (see Sample Request for Delegation of Procurement Authority (Training Services)) shall be used to request a DPA to acquire training services under these procedures.

4. The COCO or designee shall appoint DPA recipients in writing (see Sample Delegation of Procurement Authority). The DPA memorandum shall state the scope of the DPA recipient's authority as limited by these procedures and shall be automatically terminated upon the individual's reassignment or termination of employment. The DPA may also be terminated in writing in the case of unsatisfactory performance or for other reasons as determined necessary by the responsible COCO. DPAs granted under these procedures may not be redelegated.

C. Methods of acquiring training services.

1. DOT Purchase/Credit Card Program.

The purchase/credit card shall not be used to acquire training services in an amount greater than the micro-purchase threshold set forth in FAR 2.101. Purchases shall not be divided or "split" into two or more acquisitions to avoid the purchase/credit card threshold.

2. Use of SF-182.

For the purposes of these procedures, an SF-182 shall be considered an alternative agency purchase order form (FAR) 48 C.F.R. Part 13.307). Applicable commercial item provisions and clauses as set forth in (FAR) 48 C.F.R. Part 12.301 shall be attached to the form before issuing it to a vendor or contractor. When an SF-182 is used to acquire training from a Government source of supply, the FAR provisions and clauses are not required.

DPA recipients shall incorporate TAR 1252.237-71, and 1252.237-72 as required by TAR 1213.7101.   TAR 1252.237-71 requires that offerors certify the data submitted with its offer; therefore, the provision must be incorporated in full text to a request for quotations or solicitation for training services when the content and/or presentations of the training are controlled by DOT (see TAR 1213.7100).

The SF-182 may also be used for requesting, approving and certifying payment for attendance at meetings, conferences, seminars and symposia, the primary purpose of which is to train the individual to meet a job-related need.

D. Funds Certification.

DPA recipients shall obtain the signature of the accounting certification official/funds administrator in the "Agency Use Only" section of the SF-182 as evidence of the availability of funds for obligation under the order. If one of the signatories in Section D, Approvals, is also responsible for funds certification, a second signature need not be obtained. A notation to the effect that "the individual approving in Block #___ is also certifying the availability of funds for this purchase" is acceptable.

E. Competition.

Purchases in excess of micro-purchase threshold ($2,500) must be acquired through reasonably competitive procedures (generally, soliciting at least three sources) in accordance with (FAR) 48 C.F.R. Part 13.106-1. If practicable, two sources not included in the previous competition for similar training services should be requested to furnish quotations. DPA recipients should make every effort to locate new sources and rotate solicitations among sources to the maximum extent practicable. In accordance with FAR 13.103, standing price quotations, such as catalog prices, may be substituted for obtaining individual quotations for each purchase.

The DPA recipient may make a determination that only one source is reasonably available as set forth in (FAR) 48 C.F.R. Part 13.106-3(a)(2); however, the official order file shall be documented to explain the absence of competition. (See sample Sole Source Justification.)

Competition need not be obtained when acquiring training from a Government source of supply.

F. Posting and Synopsizing Notices of Solicitations.

For proposed actions exceeding $10,000, DPA recipients shall use the information system (electronic bulletin board or other means of displaying notifications) established in their respective contracting offices for the purpose of posting notices of solicitations or copies of solicitations in accordance with FAR 5.101.  Actions exceeding $25,000 shall be synopsized as required by FAR 5.201 unless the action is exempt in accordance with FAR 5.202.

G. Modifications.

In the event a change, revision or modification that alters the fixed price of commercially-available/off-the-shelf training is required to meet specific DOT requirements, either before or after executing an order for training services, the official order file shall be documented with supplemental information summarizing the changes (e.g., alterations, deletions, expansion, tailoring) required. The official order file shall also include a summary of the price negotiation, including the basis for determining that the price to be paid for modified commercially-available/off-the-shelf training is fair and reasonable in relation to the established catalog or market price. DPA recipients may enlist the assistance of warranted contracting personnel in negotiating price adjustments when faced with changes to fixed-price, commercially available/off-the-shelf training.

Modifications shall be issued using an SF-182 as the obligating document. Additional pages may be attached as deemed necessary to adequately describe the change, revision or modification to the commercially-available/off-the-shelf training.

VII. ACQUISITION PROCEDURES:

Except as otherwise stated, the following requirements are applicable to the acquisition of all training services under these procedures:

A. Advanced Acquisition Planning.

Human resources management personnel are responsible for forecasting, to the best of their ability, the yearly training requirements for their activities. Higher echelon human resources management personnel are responsible for monitoring and identifying predicted annual requirements of subordinate organizations that may be combined for contracting purposes. Yearly requirements in excess of the simplified acquisition threshold per individual student or training requirement must be identified and transmitted to procurement offices sufficiently in advance of the fiscal year in which formal contract award(s) is necessary. Personnel are encouraged to seek guidance concerning procurement leadtimes from their responsible contracting office in order to allow sufficient time for processing contract award(s).

Emergency or unanticipated training situations may have an impact on training services acquisition.  However, predictable annual requirements may not be divided or "split" into two or more acquisitions to avoid the competition threshold ($2,500) and to avoid sending requirements to contracting offices. Neither shall predictable annual training requirements be "split" among equivalent training sources (i.e., essentially the same training given under different titles, or by different vendors) to avoid sending the requirements to contracting offices.

B. Small business set asides.

1. Except for training services acquired from a required Government source of supply, all acquisitions estimated to exceed the micro-purchase threshold ($2,500) but not exceeding $100,000 shall be exclusively reserved for small business concerns ((FAR) 48 C.F.R. 13.003(b)(1)). If the purchase is made to other than a small business, the reason for the unrestricted purchase (see paragraph VII.D.) shall be documented in the official file.

2. DPA recipients are encouraged to request assistance from responsible Small Business Administration (SBA) center representatives and DOT Offices of Small and Disadvantaged Business Utilization (OSDBU) liaison personnel in identifying small business concerns capable of meeting their training requirements. The DOT Headquarters SBA Procurement Center Representative (PCR) can be reached at (202) 366-5325. A national directory of SBA PCRs is available in Electronic Acquisition Reference Library (EARL).  A telephone listing of DOT OSDBU liaison personnel for each of the OAs may be obtained by calling their National Information Clearinghouse at (800) 532-1169.

C. Official Order File.

DPA recipients shall establish an official order file in support of the training acquired under these procedures. The file may be organized on an individual basis for each transaction or as a master filing system in which all of the records would be combined in one file, easily accessible for acquisition planning purposes as well as for reviews and audits.

D. Official Order File Documentation. The official order file shall include the following documentation as applicable to the purchase:

1. Funds certification. See paragraph V.D. above.

2. Approval from the Director, Office of Financial Management (B-30) and justification for the use of imprest funds (see paragraph V.C.3. above).

3. Price reasonableness. In accordance with (FAR) 48 C.F.R. 13.106-3(a), the DPA recipient is responsible for documenting the official order file with the basis for determining the price reasonableness of the training to be purchased (e.g., competitive quotations, comparison with competitive published price lists, published market prices, fixed catalog prices).

4. Small business set asides. If a determination is made that there is no reasonable expectation of obtaining quotations from small businesses, as set forth in (FAR) 48 C.F.R. 19.502-2(a), the DPA recipient shall document the order file with the reason(s) for the unrestricted purchase.

5. Sole source justification. For requirements in excess of $2,500, solicitations may be limited to only one source, if it is determined that it is the only source reasonably available ((FAR) 48 C.F.R. 13.106-3(b)(3)(i)), and if the price is determined fair and reasonable. If only one source is solicited, the official order file must be documented to explain the absence of competition.

6. Modifications. The official order file documentation shall include a summary of the price negotiation and determination of price reasonableness as set forth in paragraph VI.G. above.

DPA recipients shall use Form DOT F 4230.1, Simplified Acquisition Summary for the purpose of documenting their official order file. The DPA recipient shall sign the Simplified Acquisition Summary form as the approving official. Form DOT F 4230.1 need not be completed when the training is acquired from a Government source of supply.

E. Administration and Close out of Official Order Files.

DPA recipients are responsible for ensuring that:

1. training services are received and/or conducted in accordance with the terms of the order;

2. all necessary information is maintained and reported in accordance with guidance from the responsible human resource office for all training obtained under these procedures;

3. invoices are reviewed and approved for payment in a timely fashion in order to preclude the payment of interest under the provisions of the Prompt Payment Act (31 U.S.C. 3901 et.seq.); and

4. official order files are not destroyed before three years after final payment.

F. Records.

In addition to the official order file, DPA recipients shall maintain a control log for the purpose of tracking all orders issued under these procedures when the acquisition is accomplished using an SF-182 or the Government purchase/credit card. As a minimum, the control log shall provide the name and address of the vendor, training date(s), title, and total price of the training acquired under these procedures. Any additional information required by human resources development organizations for tracking and reporting purposes must also be maintained.

Each training office is required to maintain a yearly training log. By October 15 of each year, a copy of the log information for the previous twelve month period shall be provided to the COCO to assist in Departmental advanced acquisition planning and maintaining oversight on the appropriate use of the delegated authority.

VIII. AUDIT AND REVIEW.

The DPA granting official is responsible for reviewing a random sample of the official order files and control logs to ensure that authorized procedures are being followed. The reviews shall be conducted no less frequently than every three years from the implementation of these procedures.  The responsible contracting office shall maintain written documentation of the results of these reviews and the records shall be made available to reviewing activities (i.e., GAO, OIG, M-60) on an as-required basis.

IX. IMPLEMENTATION.

These procedures may be used immediately, but shall be fully implemented no later than October 25, 1994.

The requirements for an independent Government estimate found at TAM 1215.404-70 also apply to this subchapter.

The Chief of the Contracting Office (COCO) is authorized to waive inclusion of (FAR) 48 C.F.R. 52.214-27 and 52.214-28 in a contract with a foreign government or agency of that government.

(c) Justification. The justification required by (FAR) 48 C.F.R. 14.202-4(c) shall be prepared and signed by the technical official responsible for the procurement request and concurred in writing by the contracting officer.

(b) Justification. The justification required by (FAR) 48 C.F.R. 14.202-5(b) shall be prepared and signed by the technical official responsible for the procurement request and concurred in writing by the contracting officer.

(a) Contracting officers may authorize facsimile bids (see (FAR) 48 C.F.R. 14.201-6(w)) after considering the factors outlined in (FAR) 48 C.F.R. 14.202-7, provided that procedures and controls are established by the COCO for receiving and safeguarding incoming bids.

(a) The DOT contracting offices are authorized to use annual representations and certifications submission procedures for sealed bidding provided that the requirements of paragraph (b) of this section are met.

(b) The COCO shall establish procedures and assign responsibility for centrally requesting, receiving, storing, verifying and updating offerors' annual representations and certifications.

(a) Contracting offices shall properly identify and deposit unopened bids in the bid box. Bid envelopes received by mail shall be time-stamped and checked for identification prior to deposit in the bid box. Bid samples should receive the same degree of security as bids, and accounted for by the maintenance of local records. Bid samples shall not be given away, loaned, diverted, or used for any purpose other than that intended.

(c) The COCO is authorized to make a written determination to cancel an invitation for bids, and reject all bids before award when any of the conditions at (FAR) 48 C.F.R. 14.404-1(c)(1) through (10) are met.

(e) The COCO is authorized to make a written determination to complete an acquisition through negotiations when the conditions at (FAR) 48 C.F.R. 14.404-1(e)(1) are met. 

(e) The COCO is authorized to determine whether or not a bid may be corrected or withdrawn according to the provisions of (FAR) 48 C.F.R. 14.407-3(a) through (d).  This authority may not be re-delegated.  

(i) The contracting officer shall coordinate resolution of doubtful cases with the Office of General Counsel before they may be forwarded to the Comptroller General.  Operating Administration (OA) Chief Counsel Offices shall review doubtful cases before coordinating with the Office of General Counsel. 

The contracting officer shall forward doubtful cases under (FAR) 48 C.F.R. 14.407-3(i) directly to the Comptroller General.

(b) The determination authorized under (FAR) 48 C.F.R. 14.407-4(b) shall be made, in writing, by the contracting officer.  The determination shall be included in the contract file.

(d) The determination made under (FAR) 48 C.F.R. 14.407-4(b) shall be coordinated according to OA procedures.  Legal counsel must be included in the coordination process, and evidence of legal review shall be included in the contract file.

(a) The determination required by (FAR) 48 C.F.R. 14.408-2 shall be in writing and included in the contract file.

Disposition actions for classified information furnished or created in connection with a solicitation shall be in accordance with the Defense Industrial Security Program. (See TAM 1204.403.)

If a procurement action has been in process for over one year from the date an adequate procurement request was received, the contracting officer shall revalidate the request to ensure a valid requirement still exists before the bid opening date. The revalidation shall be documented in the contract file.

(e) The Chief of the Contracting Office (COCO) is authorized to exempt contracts from the uniform contract format.

(b)(4) See TAM 1225.1001(a)(2)(iii) for the approving authority to waive the examination of records clause.

(a) The Head of the Operating Administration (HOA) is responsible for source selection. The contracting officer is designated the Source Selection Authority (SSA), unless the HOA or designee appoints another individual, for all proposed acquisitions or group of acquisitions (except those acquisitions under paragraph (b)).

(b) The SSA for acquisitions subject to the requirements of TAM Chapter 1234 shall be designated in the source selection strategy/plan or earlier (e.g., in the acquisition plan) if possible.  The SSA shall be determined based upon the complexity of the acquisition, the risks involved, the dollar value of the acquisition and the need for continuing direct oversight.

(c)(6) The use of recovered materials, environmentally preferable purchasing criteria developed by the Environmental Protection Agency (see http://www.ofee.gov), and the environmental objectives set forth in (FAR) 48 C.F.R. 23.703(b), must be considered when developing source selection factors. (See TAM 1223.4).

(a)(4) Cost information. Cost information may be provided to members of the technical evaluation team as the SSA deems necessary.

"Order" means any action under a contract which requires or directs the contractor to provide supplies or services including, but not limited to: task orders, job orders, and orders issued under indefinite-delivery contracts, technical directions, letters of technical direction, technical task directives, directives and other similar actions. It does not include technical directions and directives which provide only technical instructions for clarification purposes. These technical instructions shall not change or modify any terms or conditions of the contract, including price, delivery, rights of the parties, or the effort to be performed.

Whenever agreement on prices is necessary for prime contracts, contract modifications, and any order issued under a contract, the requirements of (FAR) 48 C.F.R. 15.4 and this subchapter apply unless specifically excluded.

(c)(1)(i)(B) Contracting officers shall submit to the COCO for a decision, a written statement of the facts which lead to the contracting officer's determination that the price of the otherwise successful offeror is unreasonable. The COCO's written decision shall be placed in the contract file.

When an offeror refuses to provide needed data or information, the contracting officer shall refer the matter to the COCO for resolution.

(b) Policy.

(1) Pursuant to (FAR) 48 C.F.R. 15.404-4, DOT has established a structured approach for determining the profit or fee objective.

(i) The contracting officer shall use the DOT structured approach (Form DOT F 4220.32, Weighted Guidelines Profit/Fee Objective), to determine the profit or fee objective before conducting negotiations for those acquisitions that require cost analysis. Form DOT F 4220.32 shall be made a part of the pre-negotiation memorandum.

(ii) The contracting officer may use an alternate structured approach in lieu of the weighted guidelines for the acquisitions listed below. The rationale for profit or fee determined by the alternate structured approach shall be substantiated in a manner similar to that used in the weighted guidelines method.

(A) Architect-engineering contracts;

(B) Management contracts for operation and/or maintenance of Government facilities;

(C) Construction contracts;

(D) Contracts primarily requiring delivery of material supplied by subcontractors;

(E) Termination settlements;

(F) Cost-plus-award-fee contracts; and

(G) Contracts having unusual pricing situations.

(d) Profit-analysis factors. (1) Appendix A, DOT Structured Approach for Profit or Fee Objective, cites elements which should be considered when completing Form DOT F 4220.32.

(2) Additional factors. Factors to be considered for nonprofit organizations also are contained in Appendix A.

(a) The requiring office shall provide an Independent Government Estimate (IGE) for proposed negotiated acquisitions, unless exempted by TAM 1215.404-70(c).

(b) The IGE should reflect how the estimate was derived by delineating such costs as the major labor categories, materials, travel, consultant, computer usage, etc. Any previous cost experience the Government has had in acquiring the same or similar items also should be provided with the IGE.

(c) Unless the contracting officer requires otherwise, an IGE is not required for the following:

(1) proposed awards using simplified acquisition procedures under (FAR) 48 C.F.R. Part 13; 

(2) administrative modifications such as incremental funding;

(3) modifications to exercise fixed priced options;

(4) modifications to resolve cost overruns under cost reimbursement contracts;

(5) proposed acquisitions for items that meet the commercial item definition in (FAR) 48 C.F.R. Part 2; and

(6) when prices for the supplies or services are set by law or regulation.

(a) The Government's prenegotiation objective shall be in writing and have substance, rationale, and detail sufficient to explain to a third party how the overall reasonableness of the proposed prices were determined and how the objective represents a fair and reasonable amount.

(b) Contracting offices shall establish procedures for the review and approval of the prenegotiation objective which shall be documented in a Prenegotiation Memorandum (PM). The PM shall be signed by the contracting officer, approved at a level commensurate with the value and complexity of the proposed acquisition, and be in consonance with the requirements of TAM 1204.70.

(a) See TAM 1204.70 for the review and approval of the document described at (FAR) 48 C.F.R. 15.406-3.

(b) Program should-cost review.

(4)  The responsible contracting personnel shall organize and manage should-cost reviews. The team leader is responsible for completing the should-cost report.

DOT STRUCTURED APPROACH FOR PROFIT OR FEE OBJECTIVE

INTRODUCTORY REMARKS.

When using the Form DOT F 4220.32, Weighted Guidelines Profit/Fee Objective, the contracting officer shall categorize the acquisition as a manufacturing, research and development (R&D) or a services effort. To determine to which category a particular acquisition belongs, the contracting officer shall rely on the nature of the work to be performed. When acquisitions involving R&D and services require a significant amount of facilities for efficient contract performance (as determined by the contracting officer), the manufacturing weighted guidelines method may be appropriate. Similarly, certain contracts for the manufacture of small quantities of high technology supplies and equipment may not require a significant amount of facilities. In these cases, an R&D classification may be appropriate.

In determining profit or fee, DOT recognizes the tax posture of the business entity. A fair and reasonable management fee to a non-profit organization with a tax-exempt status is considerably lower than a profit/fee to a commercial enterprise with a taxable status.

Non-Profit Organizations.

The following applies to non-profit organizations:

1. As used in this subchapter, non-profit organizations are defined as those business entities organized and operated exclusively for charitable, scientific, or educational purposes; of which no part of the net earnings accrue to the benefit of any private shareholder or individual; of which no substantial part of the activities include carrying on propaganda, or otherwise, on behalf of any candidate for public office; and which are exempt from Federal income taxation under Section 501 of the Internal Revenue Code.

2. When the Weighted Guidelines Method for arriving at a profit/fee position is used for non-profit organizations, the contracting officer shall make the following adjustments:

a. The weight ranges for "Cost risk" (Item 14 on the DOT F 4220.32) shall be replaced with -1 to 0.

b. The Total Profit/Fee Objective (Item 20 on the DOT F 4220.32) shall be reduced by up to 1% for manufacturing type efforts and up to 3% for R&D or Services type efforts.

Commercial Organizations.  (See (FAR) 48 C.F.R. 31.103)

I. CONTRACTOR EFFORT.

This factor takes into account what resources are necessary and what the contractor must do to meet the contract performance requirements. To evaluate and assign weight to this factor on the DOT F 4220.32, the cost content of the proposed contract must be analyzed in the following areas:

A. Matériel acquisition (e.g., subcontracted items, purchased parts, and other matériel).

1. Consider the managerial and technical efforts necessary for the prime contractor to administer subcontracts and select subcontractors, including efforts to break out subcontracts from sole sources through the introduction of competition.

2. Consider whether the contractor's purchasing program makes a substantial contribution to the performance of a contract through the use of subcontracting programs involving many sources; new complex components, systems, or subsystems; and close surveillance by the prime contractor.

B. Direct labor (e.g., engineering, service, manufacturing, and other labor).

1. Analysis of the various items of cost shall include evaluation of the comparative quality and level of the engineering talents, manufacturing and service skills, and experience to be employed. In evaluating labor for the purpose of assigning profit weights, consideration shall be given to the amount of notable scientific talent, unusual or scarce engineering talent needed, in contrast to journeyman engineering effort or supporting personnel. Higher weights are normally assigned to engineering, professional, or highly technical skill levels and lower weights to semiprofessional or other skill levels.

2. The variety of engineering, manufacturing and other types of labor skills required and the contractor's manpower resources for meeting these requirements shall be considered.

C. Overhead and general management (general and administrative (G&A)).

When analyzing overhead and G&A, consider the makeup of these expenses and how much they contribute to contract performance. If the contractor proposes a single indirect cost rate, the contracting officer shall breakout the composite rate or contact the auditor to determine what is in the overhead and G&A expense pools. This information will assist in determining the appropriate weights for overhead and G&A on the DOT F 4220.32.

D. Other costs.

Include all other direct costs associated with contractor performance under this item. This includes airfare, lodging, computer support, etc. The assignment of a weight on the DOT F 4220.32 for this factor shall be based on the nature of these costs and how much they contribute to contract performance.

II. CONTRACTOR RISK.

The degree of cost risk assumed by the contractor should influence the amount of profit/fee anticipated. Consider the following when determining a weight for cost risk:

A. Contract type.

The degree of cost risk is related to the selection of contract type. For example, if a portion of the risk has been shifted to the Government through cost-reimbursement, or other risk reducing measures, the weight assigned to this factor should be less than acquisitions where the contractor assumes most or all of the risk. This is particularly evident when using time-and-material and labor-hour contracts priced on a time and material basis. These contract types shall be considered to be cost-plus-fixed-fee contracts for the purpose of establishing a profit weight in the evaluation of the contractor's assumption of cost risk.

B. Subcontracting program.

The contractor's subcontracting program may have a significant impact on the contractor's acceptance of risk under a particular contract type. Analysis is necessary to determine if real cost risk has been transferred to a subcontractor. If this is the case, the contract cost risk weight assigned may be below the range that would normally be assigned.

C. Definitization.

For procurement actions that involve definitization of a letter contract, unpriced change orders, etc., where partial performance has occurred, evaluate the effect on total contract cost risk. If it is determined that the total amount of cost risk has been effectively reduced as a result of the partial performance, a lower weight may be appropriate. In addition, evaluate the type of work performed (e.g., complexity) and the type of work remaining to ensure an equitable weight assignment.

III. CAPITAL INVESTMENTS.

Form DOT F 4220.34, Contract Facilities Capital and Cost of Money, is used to determine the capital employed and cost of money amounts to be entered on the DOT F 4220.32.

A. Utilization.

To evaluate how facilities contribute to the profit objective requires knowledge of the level of facilities utilization needed for contract performance, the source and financing of the required facilities, and the overall cost effectiveness of the facilities offered. Contractors furnishing their own facilities that significantly contribute (as determined by the contracting officer) to lower total contract costs generally receive additional profit/fee. Conversely, contractors that rely on the Government to provide or finance needed facilities normally receive a correspondingly lower profit/fee. The following factors should also be considered:

1. The productivity improvements resulting from the facilities capital investment including the economic value of the facilities capital (e.g., physical age, undepreciated value, idleness, and expected contribution to future Government needs).

2. The degree to which the capital investment has direct, identifiable, and exceptional benefits to the Government, such as: new investments in state-of-the-art technology which reduce acquisition cost or yield other tangible benefits such as improved product quality or accelerated deliveries, or investment in new equipment for R&D applications.

B. New Investment.

To assist in evaluating new investment, the contracting officer should request the contractor to submit reasonable evidence that the new facilities investment will result in benefits to the Government.

IV. SPECIAL FACTORS.

A. Productivity.

The purpose of this factor is to recognize a prospective contractor's investment in modern cost-reducing facilities and other improvements in efficiency. This factor is applied when the acquisition is a follow-on manufacturing effort, actual cost data are available to establish a baseline, and changes in item configuration are not large enough to invalidate price comparability. The dollar amount inserted under the measurement base of the DOT F 4220.32 is based on the estimated cost reduction that can be attributed to productivity gains.

B. Independent development.

The purpose of this factor is to recognize independent research and development on the part of the prospective contractor pertaining to the end item being procured. To determine the appropriate weight to assign this factor on the DOT F 4220.32, it is important to evaluate whether the development cost was recovered directly or indirectly from Government sources. This factor is applied when the item is important to the advancement of the DOT mission and the prospective contractor demonstrates initiative in determining the need and application of the developed item.

C. Other.

1. Socioeconomic programs. This factor covers a number of special circumstances or particular acquisitions. It relates to the prospective contractor's participation in Federal socioeconomic programs. In addition to providing a reward for unusual initiative in supporting Government socioeconomic programs, failure or unwillingness on the part of the prospective contractor to support these programs should be viewed as evidence of poor performance for the purpose of establishing this profit/fee objective factor.

2.Performance. The purpose of this factor is to evaluate the prospective contractor's past and present performance in such areas as: product quality, meeting specifications and contract schedules (including the administrative aspects of performance), efficiency in cost control (including the need for and reasonableness of costs incurred) especially under cost reimbursement contracts, accuracy and reliability of previous cost estimates, timely processing of changes, standards of good workmanship, history for reasonable and cooperative behavior and commitment to customer satisfaction, and the prospective contractor's business-like concern for the interest of the customer.

(d)(2) The contracting officer has the authority to develop a clause to meet the requirements of the instant contract.

(d) The authority of the Head of the Contracting Activity (HCA) to approve the use of a fixed-price contract with retroactive price determination under (FAR) 48 C.F.R. 16.206-3(d) shall be retained at the HCA or higher level.

(b)(2) The procurement request initiator shall prepare a written statement outlining the basis and methodology for determining the estimated quantity under an indefinite-quantity contract and a requirements contract.

(d)(1) The Chief of the Contracting Office (COCO) is responsible for making the determination under (FAR) 48 C.F.R. 16.503(d)(1).

(d)(2) The COCO is responsible for making the determination under (FAR) 48 C.F.R. 16.503(d)(2).

(c)(2)(i)(A) The COCO is responsible for making the determination under (FAR) 48 C.F.R. 16.504(c)(2)(i)(A).

(c)(2)(i)(B) The COCO is responsible for making the determination under (FAR) 48 C.F.R. 16.504(c)(2)(i)(B).

(b)(5) The DOT Task and Delivery Order Ombudsman is the Director, Business Strategies Division (M-62) located in the Office of the Senior Procurement Executive (M-60).

(c)(2)(ii) The COCO is responsible for making the determination under (FAR) 48 C.F.R. 16.504(c)(2)(i).

(c)(3) The COCO is responsible for making the determination under (FAR) 48 C.F.R. 16.505(c)(3).

(c) Limitations. When making the required determination and findings, the contracting officer shall use a format substantially the same as the format found in Appendix A to this chapter.

When making the required determination and findings, the contracting officer shall use a format substantially the same as the format found in Appendix A to this chapter.

(c) The COCO is the approval authority under (FAR) 48 C.F.R. 16.603-2(c). See TAM 1243.70 for other requirements applicable to letter contracts as undefinitized contract actions.

The COCO is authorized to approve the use of a letter contract under (FAR) 48 C.F.R. 16.603-3.

(a) Requests for authority to issue a letter contract shall include as a minimum:

(1) the name and address of the proposed contractor;

(2) the location where the contract is to be performed;

(3) the contract number, including modification number, if applicable;

(4) a brief description of the work or services to be performed;

(5) the amount of the letter contract;

(6) the performance period or delivery schedule;

(7) the estimated total amount of the definitive contract;

(8) the type of definitive contract to be executed (firm-fixed-price, cost-plus-award-fee, etc.);

(9) a statement that the definitive contract will contain all required clauses or that deviations to the required clauses have been obtained;

(10) a statement as to the necessity and advantage to the Government of a letter contract and why no other contract type is suitable; and

(11) a statement as to the competition received pursuant to (FAR) 48 C.F.R. 16.603-3(b).

(b) Profit or fee under letter contracts shall not be paid until after definitization of the letter contract (see (TAR) 48 C.F.R. 1252.216-74).

(c) Letter contracts shall contain the appropriate sections of the uniform contract format as discussed (FAR) 48 C.F.R. 15.204-1 as practicable.

DETERMINATION AND FINDINGS

Authority to use a (specify Time and Materials,
or Labor Hour) contract

FINDINGS
 

1. The (specify OA and contracting office within the OA) of the Department of Transportation proposes to contract for (describe the supplies and/or services being procured and identify program/project, if applicable).

2. The estimated amount of the contract is $_________________.

3. (Explain why no other type of contract is suitable for procuring the supplies or services of the kind or quantity required without using the proposed type of contract.)

DETERMINATION

 On the basis of the above findings, I hereby determine that no other type of contract other than a (specify a Time and Materials or Labor Hour contract) is suitable for this procurement.