navsup instruction 4200.94 - NAVAIR - U.S. Navy

NAVSUPINST 4200.9429 June 1999CHAPTER 2Letters of Agreement1. Scope. This chapter provides contracting officers, agencyprogram coordinators and purchase cardholders an innovativeapproach to using the purchase card above the micro-purchasethreshold.2. Definitionsa. Commercial Items (Supplies). Any item, other than realproperty, that is of a type customarily used for nongovernmentalpurposes and that:(1) Has been sold, leased or licensed to the generalpublic; or(2) Has been offered for sale, lease or license to thegeneral public.(A full definition can be found at FAR 2.101)b. Letters of Agreement (LOAs). A streamlined procedurefor procuring commercial supplies between $2,500 and $25,000,based on using oral solicitations, placing oral orders andpaying for the oral orders using the purchase card. LOAs shallnot be established for the procurement of services.3. Policya. Delegation of Contracting Authority. Activities wishingto utilize this method must have an appropriate grant ofauthority from their cognizant HCA.b. Appointment of Cardholders. Individual cardholdersutilizing this method must be appointed in writing as acontracting officer on a SF 1402.c. Training. Cardholders authorized to use this methodmust complete, as a minimum, the NAVSUP Simplified AcquisitionCourse or cognizant HCA equivalent course.d. Establishing LOAs. Contracting officers should establishLOAs on a SF 1449 or DD Form 1155. APCs are limited toestablishing LOAs using a letter format. A sample of the letterformat and the provisions are provided at the end of thischapter.e. LOA. Activities using this method must establish LOAswith small business vendors providing commercial supplies who2-1