Where is the FAR reference or instruction that states that is doesn't have to be pre-priced and found fair and reasonable by the Contracting Officer other than a BPA centralized agreement? I am not able to find this reference. Thank you.
Note to other readers, a phone call to the question submitter revealed there is only one BPA with T&M authority approved in accordance with FAR/DFARS/AFFARS and agency procedures.
Here’s how to deconstruct this:
FAR 13.301(c) states “The Governmentwide commercial purchase card may 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 (but see 32.1108(b)(2)).
For DoD organizations, The authority for a non-warranted individual (card holder, ordering officer, field ordering officer, etc.) appointed IAW 201.603-3(b) to use the GCPC above the micro-purchase threshold (but not above $25,000) is found at 213.301(2). If all of those conditions exists, they can use their card. This typically means they are only using the card as a payment method and not as the actual procurement instrument. Note: I don’t think your scenario meets all of these instances.
Additionally, for DoD, DFARS 213.270, identifies the GCPC as the procurement or payment vehicle of choice below the micro-purchase threshold “for all types of contract actions” unless a number of things or scenarios exists.
In your situation: just because the labor rates are firm fixed price and have been determined to be “fair and reasonable” by a warranted contracting officer the fact that the contractor proposes the skill mix and number of hours before the call order is placed is problematic. The call order as a whole needs to be determined to be fair and reasonable. As a result, the requirements at 213.301(2)(ii) must be complied with for call orders over the micro-purchase threshold. Therefore 213.301(2)(ii)(A) would require the individual to be warranted or appointed in accordance with DoDI 5000.66. Also, 213.301(2)(ii)(C) would require the individual to seek completion; and this would defeat the purpose (and authority) of having a sole-source BPA.
As such, only a warranted individual has the authority to determine the BPA call to be fair and reasonable and “issue” the call order. The GCPC holder could then use their card to make payment if 13.301 is complied with.
I know, a little confusing…
In addition, see Department of Defense Government Charge Card Guidebook for Establishing and Managing Purchase, Travel, and Fuel Card Programs, dated 21 December 2011 (with corrections from 01 Nov 2012) Appendix C: Government Purchase Card Guide to Overseas (OCONUS) Shipments.
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