Electronic Transmittal (ET) No. 07-03
Reclamation Acquisition Regulation (RAR) Update - Micro-Purchase Threshold
Expires: Until superseded.
October 20, 2006
| To: |
Regional Director, PN, MP, LC, UC, GP Attention: 84-27810 (Eckelberg), PN-3700 (Ford), MP-3800 (Ventuleth), LC-3100 (Guilbert), UC-800 (Ward), GP-3800 (Worley) |
| From: |
Karla J. Smiley /s/ Manager, Acquisition and Assistance Management Division |
| Subject: | Electronic Transmittal (ET) No. 07-03, Reclamation Acquisition Regulation (RAR) Update - Micro-Purchase Threshold |
- Purpose: To issue micro-purchase threshold revisions to the RAR and to the Bureau of Reclamation Purchase Line Handbook (PURLBOOK).
- Effective Date: The Federal Acquisition Circular (FAC) 2005-13 change was effective as of September 28, 2006.
- Expiration Date: In effect until superseded.
- Background:
FAC 2005-13 to the Federal Acquisition Regulations (FAR) set forth an increase to the micro-purchase threshold from $2,500 to $3,000. For the Department of the Interior purchase business line cardholders it is anticipated that the change to the charge card limit, increasing the single purchase limit from $2,500 to $3,000, will be completed by the Bank of America with an effective date of October 20, 2006. The changes to the RAR and PURLBOOK reflecting this threshold increase are described in Section 5 below.
The micro-purchase definition set forth in FAR 2.101 reflects this threshold change and now defines the micro-purchase threshold as:
"Micro-purchase threshold" means $3,000, except it means-
- For acquisitions of construction subject to the Davis-Bacon Act, $2,000;
- For acquisitions of services subject to the Service Contract Act, $2,500; and
- 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)--
- $15,000 in the case of any contract to be awarded and performed, or purchase to be made, inside the United States; and
- $25,000 in the case of any contract to be awarded and performed, or purchase to be made outside the United States.
- Explanation of Changes:
RAR and PURLBOOK changes are made to replace the dollar amounts with the applicable term of "micro-purchase threshold" to avoid any conflict with the FAR.
RAR Change:
WBR 1413.301(c) is changed to read:
(c) ICC as payment vehicle. The ICC may be used to make payments under single delivery written purchase orders greater than the micro-purchase threshold but not exceeding the simplified acquisition threshold. Purchase orders formed on this basis of payment shall not be reported to FFS for obligation since the obligation will be recorded at the time of payment. However, in order to avoid potential Anti-Deficiency Act violations (annual and multiple year funding) and/or substantial accounting period under obligation (no-year funding), ICC payments which are not made by the end of a fiscal year shall be accrued in accordance with instructions provided by the Finance and Accounting Services (84-27700).
PURLBOOK Change 1:
The PURLBOOK, Section I(A)(1) is changed to read:
- Personnel without a Contracting Officer's warrant, who have been delegated purchase business line authority, are authorized to use the charge card as a means of making and/or paying for micro-purchases. Micro-purchase is defined as an acquisition of supplies or services, the aggregate amount of which does not exceed the micro-purchase threshold. The micro-purchase threshold is defined as:
- Supply purchases $3,000 threshold;
- Service purchases subject to the Service Contract Act $2,500 threshold;
- Construction purchases subject to the Davis-Bacon Act $2,000 threshold.
PURLBOOK Change 2:
All other references in the PURLBOOK to the $2,500 micro-purchase threshold are changed to read:
Micro-purchase threshold as defined in Section I(A)(1).
- Personnel without a Contracting Officer's warrant, who have been delegated purchase business line authority, are authorized to use the charge card as a means of making and/or paying for micro-purchases. Micro-purchase is defined as an acquisition of supplies or services, the aggregate amount of which does not exceed the micro-purchase threshold. The micro-purchase threshold is defined as:
- Action Required: Please distribute the revisions to the RAR and PURLBOOK contained in this ET to all acquisition personnel and Integrated Charge Card purchase business line cardholders and approving officials. A supplement to this ET will follow at a later date, which includes replacement pages to the RAR and the PURLBOOK as a result of this change.
- Point of Contact: Ms. Judi Neukirchner, 303-445-3714.
| cc: | 84-27800, (Cook, Neukirchner, Schmidt, Terrell), 84-27810 (Lintz), PN-3702 (Hedeen), MP-3800 (Keith, Steele), LC-3110 (Nelson), UC-800 (Durrant), UC-829 (Happ), UC-829 (Cowan), GP-3800 (Woegens) |