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    Under what circumstances may contract work be performed even though the fully executed contract has not been received?


    Answer

    There are two approaches to answering this question that vary based on an assumption.  The first assumption is that a contract is required.  Based upon this assumption, please reference FAR 16.603 Letter Contracts.  This type
    of contract may be used when the Government's interests demand that the contractor be given a binding commitment so that work can start immediately and negotiating a definitive contract is not possible in sufficient time to meet the requirement. However, a letter contract should be as complete and definite as feasible under the circumstances.
     
    The second assumption is that this is a contract action at or below the Micro-Purchase Threshold.  Based upon this assumption, please reference FAR Subpart 13.2.  In general the FAR states that, the Government wide commercial
    purchase card shall be the preferred method to purchase and to pay for micro-purchases (see 2.101); purchases at or below the micro-purchase threshold may be conducted using any of the methods described in subpart 13.3, provided the purchaser is authorized and trained, pursuant to agency procedures, to use those methods; and that Micro-purchases do not require provisions or clauses, except as provided at 4.1105 and 32.1110
      


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