Identifier
Created
Classification
Origin
09STATE63167
2009-06-18 14:54:00
UNCLASSIFIED
Secretary of State
Cable title:  

END OF THE YEAR PROCUREMENT GUIDANCE

Tags:  AFIN AMGT 
pdf how-to read a cable
UNCLASSIFIED STATE 00063167 
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RUEHMC RUEHMJ RUEHMR RUEHMRE RUEHMT RUEHNAG RUEHNEH RUEHNG RUEHNH
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RUEHVC RUEHVK RUEHYG
DE RUEHC #3167/01 1691516
ZNR UUUUU ZZH
R 181454Z JUN 09
FM SECSTATE WASHDC
TO ALL DIPLOMATIC AND CONSULAR POSTS COLLECTIVE
RUEHTRO/AMEMBASSY TRIPOLI 7912
UNCLAS SECTION 01 OF 02 STATE 063167 

E.O. 12958: N/A
TAGS: AFIN AMGT
SUBJECT: END OF THE YEAR PROCUREMENT GUIDANCE

REF: REF: (A)PIB 2007-8, (B)01 STATE 140917, (C)01 STATE
071365

UNCLAS SECTION 01 OF 02 STATE 063167

E.O. 12958: N/A
TAGS: AFIN AMGT
SUBJECT: END OF THE YEAR PROCUREMENT GUIDANCE

REF: REF: (A)PIB 2007-8, (B)01 STATE 140917, (C)01 STATE
071365


1. SUMMARY. This is a reminder from the Procurement
Executive as the end of the fiscal year approaches; you
should coordinate your end-of-the-year procurement
actions (contracts, purchase orders, delivery orders,
and calls under blanket purchase agreements/BPA) early
with requiring activities to follow applicable Federal
Acquisition Regulation requirements. END SUMMARY.


2. As the end of the fiscal year approaches it is
important for post management to work with procurement
personnel to establish cut off dates for procurement
actions since all FY2009 actions must be processed by
midnight September 30, 2009. An administrative notice
should then be sent to all requiring offices notifying
them of the established cut off dates for each type of
procurement action. Procurements over $100,000 will
obviously take longer to compete than those under
$3,000. Please review Exhibit 1-9, Acquisition
Thresholds, in the Overseas Contracting and Simplified
Acquisition Guidebook to assist in developing cut off
dates for your requiring offices. This guidebook can be
found on State's intranet site at
http://aopepd.a.state.gov/content.asp?
content_id=25&menu_id=50. GSO's may assist with
procurement requests submitted after the cut off dates
but priority will be given to those requests that were
timely. A lack of advance acquisition planning is not
a reason for carrying over funds or limiting
competition per FAR 6.301(c).


3. Basic rules are listed, along with specific "do's"
and "don'ts."


A. Only a warranted Contracting Officer (appointed by
the Procurement Executive) may sign a procurement
action. See Ref A for instructions on how to request a
Contracting Officer's warrant.


B. Each action must also state a required delivery date
even if it is only the date the items should be
delivered to the U.S. Dispatch Agency or pouch facility.
Without a required delivery date, the USG cannot legally
enforce delivery of the item.


C. Each procurement action must be addressed to a
specific contractor, not 'various vendors.'


D. Purchase orders may not be used to acquire personal
services. See Ref B.


E. Purchase orders may not be used to obligate funds for
contingencies to avoid expiration of current fiscal year
funds.


F. Purchase orders may not be issued to a U.S.
Government entity (whether it is an embassy, consulate,
mission, or any other Government contracting activity).

Most actions involved with transferring of funds to the
U.S. Government shall use requisitions, cables, or DS-
1921, award/modification of interagency acquisition
agreement, or purchase card.


G. Purchase orders issued by post for the CAA must
follow the requirements of Ref C.


H. The action must include the total amount of funds to
be obligated.


I. A certification of availability of funds must be
received from the Financial Management Officer (FMO)
before the signature of the Contracting Officer.


J. All purchase orders must be in the mail or faxed to
the contractor and out of the control of the contracting
officer prior to the end of fiscal year.


K. When reporting fourth quarter actions to the
State/Federal Procurement Data System (S/FPDS):

(i) Do not include procurement actions processed by
another activity for post, e.g., RPSO or A/LM/AQM.

(ii) Verify that the number assigned to the action
matches the contract numbering system delineated in
DOSAR 604.170.


STATE 00063167 002 OF 002


(iii) Ensure that all procurement actions (purchase
order, delivery order, or contract) issued on behalf of
another agency and signed by the Contracting Officer at
post are reported.

Note: The Reftels cited above have also been
incorporated into the Overseas Contracting and
Simplified Acquisition Guidebook.


L. List specific items being purchased. Each procurement
action must state specific line items or contain a
complete statement of work. See FAR 13.501(c).

(i) Do not simply type 'as per your quotation'. You need
to describe services to be provided or part numbers,
model numbers and quantities, etc.

(ii) For example, it is not acceptable for the PO to
merely state "refrigerator" with the future intention of
later specifying the type of refrigerator required. The
PO must specify the brand and model number of the
refrigerator. Without this information, the Contracting
Officer cannot properly make a determination of price
reasonability, as required by FAR 13.106-3, nor is the
USG expressing a specific need. Remember, you should
solicit using salient characteristics, rather than a
specific brand name and model, when obtaining
competition that results in a PO. At time of award, the
PO needs to cite specifically what is being purchased
and at that point, it is appropriate to identify the
item by brand and model number.


M. Bona Fide Needs. Suppose in the above example, the PO
is awarded in September and the decision regarding the
specific refrigerator that is required/purchased will
not be made until the next fiscal year when the new
officer arrives. In that example, failure to specify the
brand and model of refrigerator and a delivery due date
would violate the bona fide needs rule as well. This is
because the USG has no true need for the refrigerator
until the arrival of the new officer, nor has the USG
decided which refrigerator it is buying. Purchase orders
may not be used to obligate funds for contingencies to
avoid expiration of current fiscal year funds.


N. Correct procedure. If the agency must await the
arrival of the new officer before deciding exactly what
refrigerator is required, then the correct procedure is
to wait until the new officer arrives, find out what
appliance is required, then award a PO specifying that
item and obligating funds. In so doing, the decision
regarding which refrigerator is required must be based
upon cubic feet and other feature requirements, as well
as any maintenance and parts interchangeability
requirements. It cannot be based merely on personal
preference.


O. Don't forget that all Justifications for Other than
Full and Open Competition over $100,000 need to be
launched to FedBizOps per PIB 2009-8 and Section 844
of the National Defense Act for Fiscal Year (FY) 2008
which is applicable to Dept of State as well.


4. If you have any questions, contact by telephone, fax,
or email:

AF posts - Nick Dinkel - 703-812-2371
EAP posts - Susan Catington - 703-516-1694
EUR North posts - Lorri Lowther - 703-516-1682
EUR South posts (add Guatemala, Nicaragua, Peru) - John
Rose - 703-516-1690
NEA/SCA posts - Teresa Knox - 703-516-1692
WHA posts - Rick Jones - 703-516-1687
PTS, MX and Canada - Colleen Kosar - 703-516-1685


5. MINIMIZE CONSIDERED
CLINTON