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    Can you clarify for me of any situations where I can use my government credit card to purchase a services above the threshold of $2,500.00 dollars? Does the instruction Sub part 22.1003-4 can be used to justify it? Please Advise Thank you


    Answer

    1. The FAR references quoted below in pertinent part are applicable to this response.

    FAR 2.101 -- Definitions
    “Micro-purchase threshold” means $3,000, except it means—
      (2) For acquisitions of services subject to 41 U.S.C. chapter 67, Service Contract Labor Standards, $2,500

    FAR 13.301 -- Governmentwide Commercial Purchase Card
    (c) The Governmentwide commercial purchase card may be used to --
      (1) Make micro-purchases;

    FAR 22.1003-4 -- Administrative Limitations, Variations, Tolerances, and Exemptions
    (c) Contracts for maintenance, calibration or repair of certain equipment.
      (1) Exemption. The Secretary of Labor has exempted from the Service Contract Labor Standards statute contracts and subcontracts in which the primary purpose is to furnish maintenance, calibration, or repair of the following types of equipment, if the conditions at paragraph (c)(2) of this subsection are met:

    (ii) Scientific equipment and medical apparatus or equipment if the application of micro-electronic circuitry or other technology of at least similar sophistication is an essential element (for example, Federal Supply Classification (FSC) Group 65, Class 6515, “Medical Diagnostic Equipment;” Class 6525, “X-Ray Equipment;” FSC Group 66, Class 6630, “Chemical Analysis Instruments;” and Class 6665, “Geographical and Astronomical Instruments,” are largely composed of the types of equipment exempted in this paragraph).

      (2) Conditions. The exemption at paragraph (c)(1) of this subsection applies if all the following conditions are met for a contract (or a subcontract):

    (i) The items of equipment to be serviced under the contract are used regularly for other than Government purposes and are sold or traded by the contractor in substantial quantities to the general public in the course of normal business operations.

    (ii) The services will be furnished at prices which are, or are based on, established catalog or market prices for the maintenance, calibration, or repair of such equipment. As defined at 29 CFR 4.123(e)(1)(ii)(B)—
      (A) An established catalog price is a price included in a catalog price list, schedule, or other form that is regularly maintained by the manufacturer or the contractor, is either published or otherwise available for inspection by customers, and states prices at which sales currently, or were last, made to a significant number of buyers constituting the general public.
      (B) An established market price is a current price, established in the usual course of trade between buyers and sellers free to bargain, which can be substantiated from sources independent of the manufacturer or contractor.

    (iii) The contractor will use the same compensation (wage and fringe benefits) plan for all service employees performing work under the contract as the contractor uses for these employees and equivalent employees servicing the same equipment of commercial customers.

    (iv) The apparent successful offeror certifies to the conditions in paragraph (c)(2)(i) through (iii) of this subsection.

    2. As set forth in FAR 2.101, the micro-purchase threshold for services subject to the Service Contract Labor Standards statute, for which the GCPC can be used in accordance with FAR 13.301(c)(1), is normally $2,500. However, FAR 22.1003-4(c)(1)(ii) does authorize an exemption from the Service Contract Labor Standards statute for certain medical equipment provided that the application of micro-electronic circuitry or similar sophistication is an essential element of such equipment. However, pursuant to FAR 22.1003-4(c)(1), all of the conditions specified in FAR 22.1003-4(c)(2) must be met for this exemption to apply. Note that there are no minimum dollar thresholds below which these requirements would not apply.

    3. Based on the above, if the medical equipment in question is certified in writing by the technical requiring activity as being compliant with the requirements set forth in FAR 22.1003-4(c)(1)(ii), and if, pursuant to FAR 22.1003-4(c)(2)(iv), the firm submitting the apparent successful quote for the required services certifies to the conditions in paragraphs FAR 22.1003-4(c)(2)(i), (ii) and (iii), then the exemption from the Service Contract Labor Standards statute authorized by FAR 22.1003-4(c)(1)(ii) would apply to the contemplated maintenance, calibration or repair services. In that case, then the GCPC could be used to purchase these services, up to the standard micro-purchase threshold value of $3,000, because the Service Contract Labor Standards statute would not be applicable to the acquisition.


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