Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH
DATE: December 20, 2002
SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Purchase Card Internal Controls
SOURCE: Federal Register, December 20, 2002, Vol. 67, No. 245, page 77955
AGENCIES: Department of Defense (DOD)
ACTION: Proposed Rule
SYNOPSIS: DOD is proposing to amend DFARS 213.301, Governmentwide Commercial Purchase Card, to add policy on internal controls for the proper use of the governmentwide commercial purchase card.
DATES: Comments must be submitted by February 18, 2003.
ADDRESSES: Respondents may submit comments directly on the web site at http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm. As an alternative, respondents may e-mail comments to email@example.com. Also, respondents who cannot submit comments through the web site or by e-mail may submit comments to Defense Acquisition Regulations Council, Attn: Amy Williams, OUSD(AT&L)DP(DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062; or by fax to 703-602-0350. Cite "DFARS Case 2002-D025" when making comments on this proposed rule.
FOR FURTHER INFORMATION CONTACT: Angelena Moy, 703-602-1302.
SUPPLEMENTAL INFORMATION: Several recent General Accounting Office reports and congressional committee meetings have identified several instances where DOD employees have misused their purchase cards and there was insufficient oversight. Part of the problem is that the current DFARS 213.301 concentrates on the conditions placed on use of the commercial purchase card outside the United States, but provides no guidance on how what can and cannot be purchased with the card, or how to administer the purchase card program.
A DOD Charge Card Task Force was appointed to recommend ways to improve the program, and the Task Force issued its report on June 27, 2002. To implement the recommendations made by the Task Force, DOD proposes to revise DFARS 213.301 as follows:
- DFARS 213.301 would be completely revised to state that the following restrictions apply to the use of purchase cards:
- Only formally appointed and trained cardholders are authorized to use the purchase card.
- Requirements exceeding the micro-purchase threshold or the cardholder's single purchase limit must not be split into several purchases to use the purchase card.
- The purchase card may not be used to issue a task or delivery order that exceeds the cardholder's single purchase limit.
- Cardholders, when ordering against a Federal Supply Schedule, must comply with Federal Acquisition Regulation (FAR) 8.404, Using Schedules, and DFARS 208.404, and must retain best value documentation with the purchase card file.
- Cardholders, when ordering against a blanket purchase agreement, must comply with FAR 13.303-5, Purchases Under BPAs.
- Each order exceeding $2,500 must comply with the reporting requirements of DFARS Subpart 204.6, Contract Reporting.
- Purchase cards are not to be issued to contractors.
- DFARS 213.301-70, DOD Governmentwide Commercial Purchase Card Program Responsibilities, would be added. It states that the DOD Purchase Card Program Management Office administers the commercial purchase card program, and that "the penalties for purchase card misuse or abuse by civilian or military members may include, but are not limited to, reprimand, dismissal, and/or imposition of fines or other criminal penalties."
- Current DFARS 213.301 would be redesignated as DFARS 213.301-71 and retitled "Overseas Use of the Governmentwide Commercial Purchase Card."
- DFARS 213.301-72, Convenience Checks, would be added. It would state that convenience checks are subject to the same policies as purchase cards. Also, it states that convenience checks are to be used only for purchases of $2,500 or less; when use of the purchase card is not feasible; maximum efforts have been made to find and use vendors that accept the purchase card; all alternatives have been evaluated; and a convenience check has been determined to be the most advantageous method of purchase.
FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.
Copyright 2002 by Panoptic Enterprises. All Rights Reserved.
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