Far part 2 definition of Purchase Order does not use the word “threshold” and instead uses the key word “procedures”, Simplified Acquisition Procedures”. A “Purchase Order” would be used under FAR 13.5. Therefore, a contract under 13.5 should be a “P” contract (see far part 4.1603). FAR 13.003(b)(2)(I) allows the use of an 8(a) contract within the realm of SAP. Therefore, any 8(a) contract below 7.5mil can be a “P” contract as opposed to a C contract. All that being said, FAR 19.811-1(a) states that 8(a) contract shall use standard form 26 and not 1449 or 1155. Can you use a “P” contract with the standard form 26 or should you use a “C” contract as spelled out in FAR 4.1603? Is form 26 actually mandatory even if the 8(a) contract is a commercial contract under FAR part 12? Also, is there a need to create a solicitation under 8(a) sole source or is a solicitation not necessary?
This response is based on the information provided. We suggest you discuss with your contracting team, program manager and/or legal department as appropriate.
We don't believe there is a specific requirement for "P" vs. "C" on your contract vehicle. One of the more important uses of the PIID is to collect what types of work we are doing; it does not generally affect performance of the program. Which PIID we choose and which form we use are separate issues.
The Under normal circumstances for a sole source award, the form required, "SHALL" is SF26. (FAR 19.811-1(a). You determine use of simplified acquisition procedures in your situation (dollar value greater than SAT at $700, 000) based on the commerciality of what you are buying.
"FAR 13.500(a) This subpart authorizes the use of simplified procedures for the acquisition of supplies and services in amounts greater than the simplified acquisition threshold but not exceeding $7.5 million ($15 million for acquisitions as described in 13.500(c)), including options, if the contracting officer reasonably expects, based on the nature of the supplies or services sought, and on market research, that offers will include only commercial products or commercial services."
Whether you think of it as a solicitation or not, the buyer must convey to the seller want it is we want provided. So, we do need to create a solicitation for the company to make an offer against in the case of a "C" contract or create the offer which would be the solicitation in the case of a "P" contract.
