Supplies and services that are not stocked or
supplied must be procured by an activity to fulfill
its assigned mission.
The material presented in this chapter is not
intended to be comprehensive. It does not con-
tain everything an AK involved in purchasing
needs to know; therefore, if your duties involve
purchasing in any capacity, you should refer to
the applicable sections of the NAVSUP manuals
along with pertinent instructions and regulations.
In addition, you should study NAVSUP P-560
Detailed instructions and guidelines concern-
ing the purchase or procurement of material or
services from commercial suppliers are contain-
ed in the Navy Supply Acquisition Regulation
Supplement (SUPARS), NAVSUP P-560. Fleet
fast pay procedures are contained in applicable
fleet accounting and disbursing center (FAADC)
The NAVSUP P-560, together with the Navy
Acquisition Regulation Supplement (NARSUP),
the Department of Defense Federal Acquisition
Regulation Supplement (DFARS), and the Federal
Acquisition Regulation (FAR), is used by all Navy
activities for basic purchasing and contracting
All personnel involved in the purchasing
function such as contracting officers,
storekeepers, and buyers must attend a NAVSUP-
authorized small purchase course. In addition,
the management of all activities performing a
purchasing function must make sure personnel are
adequately trained to maintain and improve the
quality of the purchasing function.
STANDARDS OF CONDUCT
All personnel engaged in purchasing and
related functions occupy positions of public trust.
Such personnel must, therefore, conduct
themselves with absolute fidelity to the govern-
ment. Accordingly, a person must not allow
himself or herself to be placed in a position in
which a conflict of interests may arise or in which
he or she may justifiably be suspected.
Accepting gratuities or favors or engaging in
any other action that would result in financial
profit or influence strict impartiality must
absolutely be avoided.
Information concerning proposed purchasing
actions may not be made available to particular
suppliers unless such information is made
available to all competing suppliers.
There are certain statutes that make it a crime
for an agent of the government to engage in
practices or activities that are at variance with the
high standard of personal conduct that a person
owes to the United States as such an agent. A
digest of applicable provisions of these statutes
is set forth in SECNAVINST 5370.2. Any person
engaged in purchasing should make it a particular
point to acquaint themselves with the provisions
of the applicable statutes.
METHODS OF PURCHASE
The acquisition of supplies or nonpersonal
services from commercial sources in the amount
of ,000 or less is referred to as small purchase.
Open market requirements in excess of ,000
must be procured through formal contracting
Small purchase and other simplified purchase
procedures of open market purchases can be made
only when requirements cannot be obtained from