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U.S. Geological Survey Manual

403.5 - Purchase Order


OPR: Office of Acquisition and Grants

Instruction:  This chapter replaces chapter 403.5, dated 11/12/96, and cancels Instructional Memorandum OAFA (OAG) 2000-2 dated 06/08/2000.

1. Purpose. This chapter sets forth the policy and procedures for use of purchase orders and the order form. General acquisition authorities and responsibilities are described in SM 205.4, Procurement (General Redelegations), and SM 403.2, Simplified Acquisition.

2. Authority.

A. Federal Acquisition Regulation (FAR) Subpart 13.302.

B. Department of the Interior Acquisition Regulation (DIAR) Subpart 1413.5.

3. Policy.

A. Due to the administrative cost of preparing and handling the purchase order document, purchase orders for less than $2,500 should be used only when the commodity, conditions, or amount of the procurement precludes use of a simpler award method, such as charge card, convenience check, or Blanket Purchase Agreement call. Acquisitions that must be made by written orders are:

(1) Awards that involve trade-in of system controlled or capitalized property or purchase of replacement items using proceeds from the sale of Government property;

(2) All open market purchases over $2,500; *

(3) Acquisitions that require multiple, separate deliveries or performance of multiple tasks with multiple invoices/payments over 2 or more months (excluding annual service plans with fixed monthly charges);

(4) Construction of $2,000 or more subject to the Davis-Bacon Act; *

(5) Awards to current Government employees (SM 401.6);

(6) Awards to former USGS employees requiring approval under SM 404.5;

(7) Unpriced orders (FAR 13.302-2);

(8) Awards for private sector temporaries (use of temporary service firms) (SM 205.4, Appendix A, D.4);

(9) Awards to student contractors under the Student Services Authority in Public Law 106-113 (43 U.S.C 50d); *

(10) Awards for legal services (require Solicitor's Office review);

(11) Awards for hazardous waste removal; *

(12) Awards for purchase of sensitive equipment (e.g., firearms) and explosives.
* May also be ordered under BPA's containing necessary regulatory clauses and liability language.

B. Purchase orders may be executed only by warranted Contracting Officers who have been delegated procurement authority under SM 205.4.

4. Order Forms.

A. Purchase Order Forms.

(1) Optional Form 347, Order for Supplies or Services, is the standard USGS purchase, delivery and task order form.  It is used to issue open market orders below the simplified acquisition threshold for supplies and nonpersonal services, after satisfying the procedural requirements for conducting simplified purchases described in FAR Part 13 and SM 403.2. The form is also used for task and delivery orders under Federal Supply Schedules (FAR Part 8.4) and other Government contracts (FAR 16.5), and for orders  from UNICOR (Federal Prison Industries).  The form should no longer be used as an Interagency Agreement to obtain goods or services from another U.S. Government agency.

(2) Standard Form 1449, Solicitation/Contract/Order for Commercial Items, may be used for simplified acquisitions of commercial items per FAR 12.204(a)

(3) USGS Form 9-1134, Order for Supplies or Services, is obsolete and no longer authorized for use.

(4) Regardless of the form used, clauses required by regulation and any other needed order terms must be incorporated into the body of the order or as attachments to the order.

B. Purchase Order Amendments. Standard Form 30, Amendment of Solicitation/ Modification of Contract, is used when it becomes necessary to modify or to cancel a purchase order. The quantity and amount shown for the amendment line items and total should be the amount of the increase or decrease, not the revised total for the order. A recap of the adjustment (original quantity, increase or decrease, and new total) should be included in the body of the order.

5. Distribution.

Order forms and amendments will be distributed as illustrated in Figure 1. These distribution instructions also apply when the form is used for task or delivery orders, such as Federal Supply Schedule orders.

6. Billing.

A. Vendors are instructed to submit their invoices to the individual or office shown in the "Mail Invoice To" section of the OF 347 form. This normally is the end user or requisitioning office administrative staff. Immediately upon receipt of an invoice, the billing office is responsible for date stamping the invoice, for verifying that goods or services have been received, and for having the employee responsible for inspection and acceptance complete the required receiving report. (See Survey Manual 403.15 for additional instructions on completion of receiving reports.)

B. Vendors may submit invoices for partial deliveries or for severable services that have been inspected and accepted by the USGS, when they are shown as separately priced units of issue or line items on the order.


Figure 1

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