navsup instruction 4200.94 - NAVAIR - U.S. Navy

(1) Delivery Orders issued against FSS ContractsNAVSUPINST 4200.9429 June 1999(a) The FSS contract must authorize the use of thepurchase card as a method of payment for oral orders placedagainst the schedule up to $9,999,000.(b) Ordering officers and purchase cardholdersacting within their delegated contracting/purchase authority mayuse the purchase card as the method of payment for orders placedagainst FSS. A SF 1402 is required for the issuance of writtendelivery orders. If the individual is a purchase cardholder, aletter of delegation is required.(c) If an ordering officer is issuing a deliveryorder on behalf of a purchase cardholder, he/she must firstobtain contractor’s acceptance of the order and then provide thecontractor with the cardholder’s name and telephone number. Thecardholder should then be instructed to provide the contractorhis/her card account information. This can be accomplishedverbally, via FAX or E-MAIL.(d) Ordering officers/purchase cardholders shouldreview FSS contracts to determine if the schedules can meet theGovernment requirements. If the requirement is $2,500 or less,the contracting officer/purchase cardholder need only consultone schedule if that contractor can meet the Governmentrequirements. If the requirement is over $2,500, the orderingofficer/purchase cardholder must compare the products/servicesof at least three schedule holders to ensure they are obtainingthe best value for the Government. Additional guidance on usingGSA FSS contracts can be found in the NAVSUPINST 4200.85D,Chapter 2.(2) Basic Ordering Agreements (BOAs) and Orders UnderIndefiniate Delivery Type Contracts (IDTC) - The GCPC should bethe method of payment for firm fixed price orders issued againstBOAs and firm fixed price task/delivery orders issued againstIDTCs as follows:(a) The contracting officer shall include in allsolicitations and awards in which the purchase card will be usedas a method of payment FAR 52.232-26 “Payment by Third Party”.This clause provides that the contractor shall make a paymentrequest by a charge to a Government account with the third partyat the time the payment clause(s) of the contract authorizes thecontractor to submit a request for payment and for the amountdue in accordance with the terms of the contract.(b) The contracting officer should specify in theIDTC/BOA, the point at which each order becomes binding (e.g.issuance of the order, acceptance of the order in a specified4-7