buyer must solicit a reasonable number of quota- tions (generally at least three) from qualified suppliers to promote competition to the maximum extent possible and to make sure the purchase is advantageous to the government, as far as price and other factors are concerned. Reasonable competition for small purchases can normally be obtained from the local trade area. When possible, two sources not included in previous solicitation should be requested to furnish quotations. If only one response is received, no additional quotations are needed if the price can be determined fair and reasonable. BLANKET PURCHASE AGREEMENT The BPA method of small purchase is a simplified procedure of establishing charge accounts with qualified sources of supply to cover anticipated small purchases of the same general category. BPAs eliminate the necessity of issuing individual purchase orders by providing that purchases may be made by placing oral calls or issuing informal memorandums when more convenient. Maximum use of BPAs is encouraged and recommended, when appropriate. Conditions for Use of BPAs All BPA agreements are issued as bilateral, two-party signature documents. Major field purchasing activities and other Navy field con- tracting system (NFCS) activities who have been granted such authority are authorized to place BPAs when there is a repetitive need for similar supplies or services and when the use of the BPA is administratively more economical and efficient than any other small purchase method. Normally, BPA calls may not exceed ,000, However, BPA calls up to ,000 may be placed by ICPs, and calls for subsistence are unlimited as to dollar value. The use of a BPA does not authorize purchases that are not otherwise authorized bylaw or regulation. For example, the use of a BPA does not justify sole source purchasing or avoiding small business-small purchase set-asides. The rules of distributing purchases among qualified sup- pliers for purchases not in excess of ||content|| ,000 and for seeking competitive quotations for purchases in excess of ||content|| ,000 apply to each call under a BPA. If there is an insufficient number of BPAs to assure competition and equitable distribution of business, the contracting officer should solicit quotations from other sources for the immediate purchase and take action to establish additional BPAs for future purchases. Like any other purchase, each BPA call must be made on the basis of a purchase request. Authorized BPA Callers BPA calls may be made by any individual within the purchasing office of the command of the contracting officer who entered into the BPA. In addition, the contracting officer who issued the BPA may authorize other activities who have been granted contracting authority to place calls under his or her BPA. BPA calls may normally be made only by authorized personnel within purchasing offices. To be approved, all individuals to be authorized to place BPA calls must have attended a NAVSUP-approved small purchase course. In addition, all individuals authorized must be appointed as contracting officers (with authority to place calls up to a certain limitation) via a Certificate of Appointment, Standard Form 1402. Establishment of BPAs The contracting officer is responsible for the establishment of BPAs. BPAs will be made with contractors from whom numerous individual purchases will be made over a given period. To the maximum extent possible, BPAs for items of the same type should be placed at the same time with more than one supplier. All competitive sources should be given an equal opportunity. For example, if you have repetitive requirements for electrical supplies, you should establish BPAs with more than one contractor who sells this type of material. You can then distribute the calls among the BPA holders for purchases not over ||content|| ,000 and obtain competition from them for purchases over ||content|| ,000. IMPREST FUND The IF purchase method is a simple and economical way of effecting purchases not in excess of 0. The IF method employs a cash fund from which payments are made at the time purchase transactions occur and to which reim- bursements are made on a revolving basis. The IF is in the custody of the IF cashier. 4-4