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SMG 2610.7

FDA STAFF MANUAL GUIDES, VOLUME III - GENERAL ADMINISTRATION

PROCUREMENT AND SUPPLY MANAGEMENT

PROCUREMENT

PREPARING REQUISITIONS FOR ALL CONTRACT ACTIONS WITH AN ESTIMATED VALUE LESS THAN OR EQUAL TO THE SIMPLIFIED ACQUISITION THRESHOLD

Effective Date: 10/01/2010

[PDF version]

 
 
 
 
    Attachment A - Guidelines for Micro-Purchases
    Attachment B - Guidelines for Contract Actions Greater than the Micro-Purchase Threshold
 
 

1. PURPOSE

This Staff Manual Guide (SMG) prescribes the Food and Drug Administration (FDA) policy and procedures for preparing requisitions for all contract actions less than or equal to the Simplified Acquisition Threshold (SAT). This SMG applies to all new awards (including all options), as well as all modifications, with an estimated value less than or equal to the SAT, executed by the Office of Acquisitions & Grants Services (OAGS).

2. DEFINITIONS AND CONCEPTS

A. Contracting Officer (CO). The CO is the only Government Official with the delegated authority to bind the Government legally [or, otherwise enter into a contract] by signing a contractual instrument. The CO is also the only Government Official who has the authority to administer and/or terminate contracts, as well as make related Determinations and Findings.

B. Contract Specialist (CS). The CS is an authorized representative of the Contracting Officer. The CS may negotiate, draft, administer, and close-out contracts, subject to the review and approval of the Contracting Officer. They are the main point of contact for the Project Officer; and, to the maximum possible extent possible and/or practicable, will be available to the Project Officer in an advisory capacity during all phases of the contract process that are not the direct responsibility of OAGS.

C. iProcurement. iProcurement is the web-based application that is part of the Department of Health and Human Services Unified Financial Management System (UFMS) where requisitions are entered, approved, and tracked on a real time basis. Most requisitions are entered into iProcurement by Agency-designated Requestors/Requisitioners (a budget approval official or other approval official may also enter a requisition). For each line item created in iProcurement, Requestors/ Requisitioners will associate appropriate funding information (Common Account Number ‘CAN’ and Object Class) [Sometimes the Requestor/Requisitioner may not know the correct CAN, i.e. – Central Funds. If the listed CAN is incorrect, the provided CAN need be corrected by one of the approval points]. When submitted, the requisition is systemically routed through predefined approval chains, if previously generated; however, predefined approval chains may be modified. iProcurement requisitions will, upon final Center approval or external approval (i.e., Chief Information Officer), create a commitment record within UFMS. iProcurement is also used to receive goods and services.

D. Market Research. Market research is the means by which information about capabilities within the market place for a given requirement is collected and analyzed. It is conducted by the Acquisition Team on all acquisitions to achieve socioeconomic goals, as well as support full and open competition and commercial item purchases, to the greatest extent possible and/or practicable. Market research is conducted in accordance with the Federal Acquisition Regulation and HHS Policy and may include any combination of the following actions: contacting knowledgeable individuals in Government and industry regarding market capabilities; reviewing recent market research undertaken for identical or similar requirements; publishing formal requests for information; reviewing catalogs and other product literature from manufacturers, distributors, and dealers including information available on-line; conducting interchange meetings or holding pre-solicitation conferences to involve potential offerors early in the acquisition process. Market Research findings are heavily relied upon when drafting the Statement of Work, developing the Independent Government Cost Estimate, and completing other source selection documents required in the Request for Contract.

E. Micro-Purchase. A Micro-Purchase is any acquisition that is under the Micro-Purchase Threshold (see FAR 2.101). They are not set-aside for Small Business. International Merchant Purchase Authorization Cards are the preferred acquisition method for Micro-Purchases.

F. Micro-Purchase Threshold. Micro-Purchase Threshold means $3,000, subject to the following exceptions: (1) for acquisitions of construction subject to the Davis-Bacon Act, $2,000; (2) for acquisitions of services subject to the Service Contract Act, $2,500; and (3) for acquisitions of supplies or services that, as determined by the head of the agency, are to be used to support a contingency operation or to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack, as described in 13.201(g)(1), except for construction subject to the Davis-Bacon Act (41 U.S.C. 428a), (i) $15,000 in the case of any contract to be awarded and performed, or purchase to be made, inside the United States; and (ii) $25,000 in the case of any contract to be awarded and performed, or purchase to be made, outside the United States.

G. Performance Work Statement (PWS). A PWS is a Statement of Work for performance-based acquisitions that describes the requirement objectives in terms of outcomes or results. The PWS must be clearly written and utilize objective terms with measurable outcomes. When preparing PWSs, Project Officers must, to the maximum extent practicable (1) describe the work in terms of the purpose of the work to be performed rather than either “how” the work is to be accomplished or the number of hours to be provided and (2) enable assessment of work performance against measurable performance standards (often documented in the form of a Quality Assurance Surveillance Plan).

H. Project Officer (PO). The PO is a Federal employee who provides technical guidance to the Contract Specialist/Contracting Officer before award of a contract or order. POs may be delegated authority to also act as the Contracting Officer's Technical Representative after a contract award has been made, but they must meet the Departmental training and certification requirements prior to any such appointment. POs must comply with the training requirements set forth in HHSAR 301.605.

I. Simplified Acquisition Procedures (SAP). SAP are the methods used for making purchases of supplies, services, and construction below or equal to the Simplified Acquisition Threshold using the procedures prescribed in FAR Part 13. The simplified procedures are intended to: (1) reduce administrative costs, (2) improve opportunities for small business and small disadvantaged business concerns, (3) promote efficiency and economy in contracting, and (4) avoid unnecessary burdens for agencies and contractors (see FAR Part 13). The Contracting Officer is required to set-aside all purchases above the Micro-Purchase Threshold but below or equal to the Simplified Acquisition Threshold (except for foreign purchases) for small business (see Id.)

J. Simplified Acquisition Threshold (SAT). Simplified Acquisition Threshold means $150,000 (inclusive of all options), except for acquisitions of supplies or services that, as determined by the head of the agency, are to be used to support a contingency operation or to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack in accordance with FAR 2.101.

K. Sponsor. The Sponsor is the Center/Office having predominant interest in and financial commitment to the proposed contract.

L. Statement of Work (SOW). The SOW is the portion of the contract that describes the actual work to be completed by the awardee by means of: (1) specifications or other minimum requirements; (2) quantities; (3) performance dates, including a deliverables schedule and option periods; (4) time and place of performance of services; and (5) quality. It is heavily relied upon by contractors in their proposal submittals, and it is the baseline against which contractor performance is measured against after award.

M. Unified Financial Management System (UFMS). UFMS is an integrated system allowing purchasing functions to flow directly to Accounts Payable and the General Ledger modules.

3. AUTHORITY

The FDA's procurement authority is vested with the Director of OAGS, as set forth in SMG 1440.1 (see SMG 1440.1 at http://inside.fda.gov/PolicyProcedures/StaffManualGuide/VolumeIIDelegationsofAuthority/UCM006830.html ). The Director of OAGS has been granted procurement authority to enter into contractual agreements on behalf of the FDA, inclusive of all FDA Centers/Offices, and to make all related Determinations and Findings (see SMG 1440.2 at http://inside.fda.gov/PolicyProcedures/StaffManualGuide/VolumeIIDelegationsofAuthority/UCM006831.html ). The Director of OAGS may re-delegate this authority as deemed proper and appropriate in accordance with the Health and Human Services Acquisition Regulations (HHSAR) and the SMG 1440.1. All such delegations of procurement authority shall be in writing. Only employees with delegated authority shall obtain goods or services for the FDA, and only within scope of their respective delegation of authority. It is illegal for any other FDA employee to obtain goods or, through their actions, cause services to be performed for the FDA. Contracting Officers (COs) are authorized to make purchases greater than the Micro-Purchase Threshold up to the amount of their respective warrant authorities.

The Purchase Card Program designates a class of major credit cards to provide both procurement and non-procurement personnel with a simplified method of purchasing and paying for all types of supplies, services, and construction with an estimated value less than or equal to the Micro-Purchase Threshold as set forth in FAR 2.101 (see Section 4. of this SMG for further direction regarding the applicable Micro-Purchase Thresholds). All prospective purchase card holders are required to complete training prior to being issued a purchase card. All successful candidates of the purchase card program will receive a Delegation of Procurement Authority (DPA), along with a purchase card, from the Director of OAGS or designee (see the FDA Government Purchase Card Manual at http://inside.fda.gov/Administrative/AcquisitionsGrants/PurchaseCard/index.htm for more information about the Purchase Card Program).

4. POLICY AND RESPONSIBILITIES

A. GUIDELINES FOR PROPOSED MICRO-PURCHASES

A Micro-Purchase is any acquisition that is less than or equal to the Micro-Purchase Threshold (see FAR 2.101). Micro-Purchase Threshold means $3,000, subject to the following exceptions: (1) for acquisitions of construction subject to the Davis-Bacon Act, $2,000; (2) for acquisitions of services subject to the Service Contract Act, $2,500; and (3) for acquisitions of supplies or services that, as determined by the head of the agency, are to be used to support a contingency operation or to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack, as described in FAR 13.201(g)(1), except for construction subject to the Davis-Bacon Act (41 U.S.C. 428a), (i) $15,000 in the case of any contract to be awarded and performed, or purchase to be made, inside the United States; and (ii) $25,000 in the case of any contract to be awarded and performed, or purchase to be made, outside the United States.

Micro-purchases shall be made by cardholders throughout the FDA's Centers/Offices (Centers) according to the policies and procedures set forth in SMG 2610.5 – U.S. Government Purchase Card Program International Merchant Purchase Authorization Card (IMPAC) (see SMG 2610.5 at http://inside.fda.gov/PolicyProcedures/StaffManualGuide/VolumeIIIGeneralAdministration/UCM007795.html).

Micro-Purchases are not set-aside for Small Business and do not have to be competed. Micro-Purchases may be awarded without soliciting competitive quotations if the price is considered reasonable. Required or priority sources must be considered before issuing an order to an open market vendor. In addition, it is illegal to divide an order to remain within the micro-purchase threshold. Special consideration is given to Micro-Purchases for certain sensitive equipment, as listed in FDA Staff Manual Guide 2620.2 – Accounting, Inventory Controls, Utilization, and Disposal of Personal Property Assigned to Custodial Areas. All such purchases must be screened by the designated Accountable Property Officer (APO) prior to purchase/award.

B. GUIDELINES FOR PROPOSED CONTRACT ACTIONS WITH AN ESTIMATED VALUE GREATER THAN THE MICRO-PURCHASE THRESHOLD, BUT LESS THAN OR EQUAL TO THE SIMPLIFIED ACQUISITION THRESHOLD.

Simplified acquisitions exceeding the Micro-Purchase Threshold are automatically set-aside for small businesses and must be competed. Required or priority sources must be considered before issuing an order to an open market vendor. Further, it is illegal to split requirements to remain within the SAT.

An approved Requisition Package (RP) is required for those acquisitions greater than the Micro-Purchase Threshold, but less than or equal to the SAT. The FDA/OAGS Simplified Requisition Package (RP) Guide, provided herein as Attachment 1, includes current generally applicable requirement documents for simplified acquisitions. The Guide is to be used as a guide for program officials and should not be included with the RP.

In addition, Project Officers (POs) or Program Technical Point of Contracts (PTPOCs) (hereafter interchangeably referred to as POs) should use the content requirements of the MON for contract services greater than the SAT (see SMG 2610.1) as a reference in determining what other information and documentation is necessary to support the intended acquisition.

The PO should coordinate with the Contracting Officer (CO)/Contract Specialist (CS) as early as possible in the development of the RP. The PO has the ultimate responsibility, with assistance from the CO/CS, to complete and submit an accurate and approved RP to OAGS in a timely manner, sufficient to accommodate the respective Service Level Agreements (SLAs) posted on FDA’s intranet. The coordinating CO will make all final decisions regarding the most appropriate contract type, procurement strategy, as well as SLA for each specific requirement.

5. EFFECTIVE DATE

The effective date of this guide is October 1, 2010.

6. Document History - SMG 2610.7, Preparing Requisitions for All Contract Actions with an Estimated Value Less than or Equal to the Simplified Acquisition Threshold

Initial 06/01/2009 N/a OC/OO/OM/OSS/OAGS Glenda Barfell, Director - OAGS
Change 06/04/2009 Document History OC/OO/OM/OSS/OAGS Glenda Barfell, Director - OAGS
Revised 10/01/2010 N/a OC/OA/OAGS Glenda Barfell, Director - OAGS

 


 

Attachment A - FDA/OAGS Requisition Package (RP) Guide

This document is intended to provide general guidance as to which documents are required as part of the Requisition Package (RP) for most purchases under the Simplified Acquisition Threshold. The designated OAGS Contracting Officer shall make all final determinations regarding all necessary documentation required for each RP on an individual basis.

Section A: Information Required for Every New Acquisition

1. End User Name, Telephone Number, and E-mail Address

2. Clear Work Statement/Requirements Document
(Including Deliverables, Delivery Date/Period of Performance, and List of Salient Characteristics for Equipment Purchases)

3. An Independent Government Cost Estimate (IGCE)
(Required if the estimated cost exceeds $25,000- Reference SMG 2610.4)

4. Shipping Information
(Including Name, Address, Room Number and Any Unique Shipping Instructions)

5. List of FDA Officials to Receive Award Documentation
(Including Names, Telephone Numbers, and E-mail Addresses)

Section B: Additional Considerations

1. If the action will be placed against an existing award, the award number is required
(Applies to proposed modifications, execution of options, adding additional funding, and the issuance of new Task Orders or Delivery Orders)

2. List any recommended sources and/or market research performed, including contact information, web sites, and item numbers
(Applies to all new award actions)

3. If Options will be included, provide all requisite details
(Applies to proposed option periods [i.e., years or months] and options to purchase additional items or services)

4. List any recommended evaluation criteria
(Applies to competitive awards based upon other than lowest price technically acceptable)

5. Written Justifications are required when limiting competition to single or limited sources, or to a particular brand name product.
(Noncompetitive contracts may be used only in rare and exceptional circumstances because of statutory requirements for “full and open competition “– Reference SMG 2610.11)

6. Special Clearances and/or Approvals may be required for some purchases, such as:

  • Electronic Information Technology / Section 508 of the Rehabilitation Act
  • Advisory & Assistance Services for Evaluation of Proposals
  • Animal Welfare
  • Foreign Research Contracts
  • Human Subjects
  • Public Affairs Services
  • Other Clearances/Approvals not listed above