National Industries For The Blind or other severely handicapped Mandatory GSA Federal Supply Schedule contracts Optional GSA Federal Supply Schedule contracts The purpose of GSA Federal Supply Schedules is to provide support for the routine needs of stationary shore-based activities. The mandatory use of the schedule is not practical for afloat activities. The Federal Acquisition Regulation (FAR) recognizes this by making “urgent requirements” an exception to the mandatory use of schedules. The inherent constraints of shipboard supply and logistics make virtually all ship’s purchases urgent within the context of the FAR. It has been determined not to be cost effective for ships to assemble and maintain the considerable libraries of FSS literature. Therefore, GSA schedules are optional for shipboard purchasing. Shore activities purchasing for ships use the GSA schedules. There are four methods used for making small purchases. The first method is the blanket purchase agreement (BPA). Each BPA should not exceed ,000 (except food, which is an unlimited amount). Use the imprest fund method for purchases that do not exceed 0. Use the purchase order method for purchases that do not exceed ,000. The purchase invoice (SF 44) method requires a Standard Form 44 and should not exceed ,500 (except ,000 for aviation fuel and oil purchased by pilots). Purchases over ,500 must have competitive quotes from vendors. At least three vendors should be solicited. Orders cannot be split to avoid competition or purchase authority threshold. It is illegal for anyone other than a properly appointed contracting officer to make a purchase for the government. Personnel without contracting authority who order supplies or services or commit the government to pay a vendor may be held personally liable for the cost of the transaction, and they are subject to disciplinary action. An imprest fund allows a ship to pay cash for small purchases. The imprest fund is under the custody of an imprest fund cashier. The cashier advances cash to pay for supplies. The paid receipt becomes the payment voucher and cuts the need for a purchase order and separate voucher. The commanding officer (CO) appoints in writing the imprest fund cashier. The supply officer, when authorized by the CO, may appoint the imprest fund cashier. Refer to enclosure 4 of Fleet Purchasing Procedures, NAVSUPINST 4200.85 (series), for more information on the imprest fund. The following conditions for using the imprest fund apply: Amount of transaction does not exceed 0. Use of imprest fund is advantageous to the government. Supplies or services are available for delivery within 60 days, either at the contractor’s place or at the destination point. The purchase does not require a detailed . technical inspection. Naval activities, including ships, with contracting authority can set up an imprest fund if the following conditions exist: . The authorization for contracting specifically gives imprest fund purchase method authority. l The type commander (TYCOM) approves the use of the imprest fund method in writing. l The commanding officer approves the imprest fund in writing. The blanket purchase agreement (BPA) is an agreement with a supplier to furnish specific groups of material or services under specified conditions. Authorized personnel conduct purchases under the BPA method either verbally or by informal memoranda. This process is also known as BPA call. A BPA eliminates the need for an individual purchase order for small requirements. Ships cannot set up a BPA. Upon request, shore supply activities may set up a BPA for ships. Or, ships may be authorized to place calls against a BPA issued by an ashore activity. Each BPA call should not exceed the ship’s authority or ,000, whichever is lower. The purchase authority of ,000 includes ship types LPH and aircraft carriers, according to NAVSUPINST 4200.81. The individual authorized to make BPA calls are those appointed in writing by the CO. The certificate of appointment will show the person as a contracting officer authorized to place BPA calls up to a certain dollar limitation. The ship must maintain a list of individuals appointed to make BPA calls, and a copy of this list must be submitted to the activity who issued the BPA. The ship is responsible for informing the shore contracting activity, in writing, immediately upon any changes to this list. A purchase order is a written offer from the government to buy certain supplies or services. The 4-10