Simplified Acquisition Procedures (Sap) Manual

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COCO Responsibilities

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As a result of Modernization, the roles and responsibilities of the COCO have dramatically shifted from a ‘supervisory’ type position at each of the 48 contracting offices, to a managerial/leadership position with numerous contracting offices under their direction.

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The COCO is tasked with leading

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procurement in their AOR.

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SAP

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Simplified Acquisition Procedures

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SAT

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Simplified Acquisition Threshold

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The SAT is

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$100,000, except for acquisitions of supplies or services that, as determined by the head of the agency, are to be used to support a contingency operation or to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack.

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Supplies for recovery from nuclear, biological, chemical, or radiological attack. For these acquisitions, the SAT is:

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(1) $250,000 for any contract to be awarded and performed, or purchase to be made, inside the United States; and

(2) $1 million for any contract to be awarded and performed, or purchased to be made outside the United States.

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The Federal Acquisition Streamlining Act of 1994

(FASA)

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made a number of changes in the way goods and services at, or below, $100,000 are acquired. The Act replaced the $25,000 threshold with a new "Simplified Acquisition Threshold"

(SAT) of $100,000 once an agency (or procuring activity within the agency) has achieved certain electronic commerce (FACNET) capabilities, are using them and certify that they have met the criteria.

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Clinger-Cohen Act of 1996,

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in an effort to further streamline the acquisition process, authorized, on a test basis, special simplified procedures for the acquisition of certain commercial items with a value greater than the simplified acquisition threshold but not greater than $5.5 million, including options. There is a ceiling of $11 million for acquisitions under FAR 12 for supplies and services that are used to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack.

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Armed Services Procurement Act of 1947

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The basic legislation that governs USCG acquisitions of supplies and services is the Armed Services Procurement Act of 1947. This law is implemented in the FAR, which is prepared, issued and maintained jointly by Secretary of Defense and Administrators of NASA and the General Services Administration (GSA).

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Coast Guard Acquisition Procedures (CGAP)

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The CGAP is intended for use by all Coast Guard personnel involved in the acquisition process. CGAP implements the Federal Acquisition Regulation (FAR), Department of Homeland Security Acquisition Regulation (HSAR), Homeland Security Acquisition Manual (HSAM), and other related Federal and agency contracting guidance, and establishes Coast Guard acquisition policy.

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Federal Acquisition Regulations (FAR)

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The FAR provides uniform policies and procedures for acquisition by executive agencies of the federal government. It is Chapter 1 of Title 48 of the Code of Federal Regulations (CFR). The FAR is divided into 53 Parts; Part 13 is specifically devoted to SAP; Part 8, Required Sources of Supplies and Services; Part 25, Foreign Acquisition; Part 35, Construction and Architect & Engineering Contracts; Part 38, Federal Supply Schedule Contracting; Part 41, Acquisition of Utility Services and Part 19, Small Business Programs.

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Homeland Security Acquisition Manual

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The Department of Homeland Security Acquisition Manual (HSAM) and The Department of Homeland Security Acquisition Regulation (HSAR) implements and supplements the Federal Acquisition Regulation (FAR). It is non-regulatory in nature and provides uniform procedures for the internal operation of acquiring supplies and services within the Department of Homeland Security.

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Federal Property Management Regulations (FPMR)

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The Federal Property Management Regulations (FPMR) (41 CFR Chapter 101), Federal Management Regulation (FMR) (41 CFR Chapter 102), and the departmental property management regulations that implement and supplement them, also contain provisions that address activities such as ordering from established sources.

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Anti-Deficiency Act

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The Anti-Deficiency Act of 1982, 31 USC 1341 (a), 1517 (a), provides that no government officer or employee may authorize or create any obligation, or make any expenditure, in excess of an apportionment or administrative subdivision of appropriated funds. The Act requires administrative discipline to those who inadvertently exceed their authority, and provides financial responsibilities and/or criminal penalties for those who do so knowingly and willingly. Accordingly, a government officer or employee who exceeds the funds available to him or her does so at his or her own risk.

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Buy American Act (BAA)

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The Buy American Act (BAA) restricts the purchase of supplies that are not domestic end products for use within the United States (i.e. the 50 states, District of Columbia, and Outlying Areas as defined by FAR 2.101). However, it does not prohibit Federal Agencies from buying foreign end products when certain conditions apply.

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Comparing foreign quotes to domestic quotes percentage addage is:

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Large Domestic Business; add 6% to foreign quote. Small Domestic Business; add 12% to foreign quote.

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CCR

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The Central Contractor Registration

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The Central Contractor Registration (CCR)

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is the primary contractor database for the U.S. Federal Government. CCR collects, validates, stores and disseminates data in support of agency acquisition missions.

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KOs

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Contracting Officers

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OF 347

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Order for Supplies or Services

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SF-1449

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Solicitation/Contract/Order for Commercial Items

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The SF-1449 is primarily used for

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ll commercial items,

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the OF347 is for

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GSA orders or non-commercial purchases.

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Excluded Parties List System (EPLS)

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is a worldwide website provided as a public service by General Services Administration (GSA) for the purpose of efficiently and conveniently disseminating information on parties that are excluded from receiving Federal contracts, certain subcontracts, and certain Federal financial and nonfinancial assistance and benefits

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The PR must provide at a minimum, the following data

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1. Independent Government Cost Estimate
2. Statement of Work or detailed description
3. HAZMAT and Recovery Conservation Recovery Act forms(RCRA) (when applicable; such as new stock)
4. List of potential sources, if known

5. Treasury Account Symbol (TAS)

6. Valid accounting/funding information

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FBO

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FedBizOpps

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FedBizOpps(FBO)

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The electronic Government Point of Entry (GPE) for public notification is FedBizOpps. Proposed contract actions expected to exceed $25,000 must be formally advertised by synopsizing the requirement at

www.FedBizOpps.gov.

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The funding document that provides the KO with authority to begin the acquisition process is called

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Procurement Request (PR).

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Procurement Request (PR) requirements:

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1. Must be numbered properly

2. Contain valid appropriation and accounting data

3. have a valid signature, or digitally approved in FPD (2x signatures; one by authorized requisitioner and one by funds manager)

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Under no circumstance, will the ordering official/contracting officer:

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sign/approve the funding document (PR)

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Non-Warranted Cardholders max for services:

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$2500

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Non- Warranted Cardholders max for supplies:

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$3000

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Non-Warranted Cardholder max for construction:

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$2000

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Construction authority is limited to $2,000 due to application of

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labor laws that constrict construction actions above that amount.

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Statutes prohibit government personnel from

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accepting gifts or bribes; using public office for private gain; giving preferential treatment to any person; losing complete independence and impartiality in business decisions; making a government decision outside official channels; or eroding the confidence of the public in the integrity of the government.

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Proposed contract actions expected to exceed $10,000, yet not expected to exceed $25,000 must be displayed in a

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public place (i.e. lobby, security house, etc). If the customer does not have a public place available due to security reasons, then such requirements shall be posted in FedBizOpps.

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Purchasing Agent

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A purchasing agent is an acquisition professional who works under the 1105 job series and acquires supplies and services to meet the purchase, rental, or lease needs of the USCG.

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Purchase Order (PO)

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A purchase order (PO) is an offer by the government to buy supplies or services on specific terms and conditions, using simplified acquisition procedures.

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Ratification

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Ratification is the act of approving an unauthorized commitment. Authority to ratify unauthorized commitments is given to the Head of Contracting Activity (HCA). This authority cannot be delegated below the Chief of Contracting Office (COCO) level

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Contracting officers (KOs) shall seek competition whenever practical. FAR

13.104 states that competition must be obtained for all procurements over

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the established micro-purchase thresholds (e.g., $2,500 for services, $3,000 for supplies, $2,000 for construction). Although documented Requests for Quotes (RFQs) are preferred, oral solicitations are acceptable as long as it is properly documented on the Simplified Acquisition Summary Form (DHS 700-16).

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Priorities for use of Government Supply Sources

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Available sources for supplies and services can be classified in three broad groups and arranged in the general order of priority (1) required government sources, (2) required commercial sources, and (3) open-market sources.

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Supplies By Descending Order of Priority

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1. Agency Inventories (see following pages), including DHS-wide contracts/agreements
2. Excess From Other Agencies (see succeeding sections of this chapter)
3. Federal Prison Industries, Inc. (UNICOR) **see ordering guideline in the succeeding sections of this chapter**
4. Supplies which are on the Procurement List maintained by the Committee for Purchase From People Who Are Blind or Severely Disabled i.e., NIB-NISH or Ability One (previously known as JWOD).
5. Wholesale supply sources such as General Services Administration (GSA) Global Supply and the Defense Logistics Agency (DLA)
6. Mandatory Federal Supply Schedules (FSS)
7. Optional use Federal Supply Schedules (FSS)
8. Commercial Sources (Open Market) including educational and nonprofit institutions
9. Interagency Agreements (FAR 17.5) i.e., MIPRs under The Economy Act
10. Other Government-wide Agency Contracts (GWAC)

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Services by Descending Order of Priority

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1. DHS-wide contracts and agreements
2. Services which are on the Procurement List maintained by the Committee for Purchase From People Who Are Blind or Severely Disabled i.e., NIB-NISH or Ability One

3. Mandatory Federal Supply Schedules (FSS)

4. Optional use Federal Supply Schedules (FSS)

5. Federal Prison Industries, Inc. (UNICOR)

6. Commercial Sources (Open Market)

7. Interagency Agreements (FAR 17.5)

8. Other Government-wide Agency Contracts (GWAC)

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In determining if the offer meets the government’s need, factors such as

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functionality, delivery date, quantity, shipping point, and cost must be considered. If a required source does not meet the needs, a waiver may be required.

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Committee for Purchase from People who are Blind or Severely Disabled AbilityOne

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Javits-Wagner-O’Day (JWOD) Act requires the Government to purchase supplies or services on the Procurement List, at prices established by the Committee from Ability One participating nonprofit agencies, if they are available within the period required (FAR Subpart 8.7).

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The nine basic steps to buying are:

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1. Receive a valid procurement request (PR). *See Chapter 1*

2. Review the PR for required information and approvals (HAZMAT, property review, Resource Conservation Recovery Act, specifications, SOW, funding, etc.)

3. Consider all mandatory sources of source of supply in descending order

4. Set-Aside for Small Business or document an exception

5. Solicit competition

6. Proposal Evaluation

7. Award or Issue Purchase Document

8. Ensure purchase is justified in writing on the Simplified Acquisition Summary form Example 7 located on the SAP Website at

https://cgportal.uscg.mil/lotus/myquickr/sap# or see Department of Homeland Security (DHS) 700-16 form located on Coast Guard website

– and

DHS website.

9. Administer the order:

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Suggested sources of supply

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The source(s) identified on a PR are "suggested" only. For non warranted cardholders, the Contracting Officer (KO) and ONLY the KO is responsible for source selection.

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Sole Source Justification

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If your customer tells you the suggested source is a "sole source," a sole source justification must accompany the PR. The sole source justification must demonstrate the suggested source is the only supplier in terms of urgency, exclusive licensing agreements, etc. The

complexity and detail of the sole source statement should be commensurate with the complexity of the procurement. See FAR Part 6.

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Micro-purchases refers to open market purchases less

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than or equal to $3,000 utilizing government-wide Commercial Purchase Card (P-Card), Purchase Orders/ Delivery Orders/Task Orders (SF-1449, OF-347), Blanket Purchase Agreement (BPA), Purchase Order Invoice Voucher (SF-44), convenience checks (C-Checks) and Imprest Funds, to obtain supplies and services.

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Purchase card holders may not exceed the limits of

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their written authority and micro-purchasing does not waive mandatory sources of supply procedures

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Open Market Purchases

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Procedures:

1. Identify the requirement.
2. Initiate procurement request; obtain funding and certifications (i.e., HAZMAT, RCRA, Property – when applicable).
3. Solicit quotes, terms and availability.
4. Determine best value to the government.
5. Determine purchase method and place order.
6. Obtain a receipt for supplies/services.

NOTE:

Vendors shall not be excluded because they do not accept the P-Card.

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Charge Slips, Sales Receipts/Invoices: Must be legible and complete and include

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the date, vendor name and address, the amount and a detailed description of the purchase. Part numbers or terms such as "miscellaneous supplies," "office supplies," "general merchandise," or "hardware items" are not sufficient.

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freight amount is over $100

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copy of the carrier’s freight bill must be included in PCard Record

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P-Card: Restricted Uses

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1. Long term rental or lease of land or buildings. Long term leasing of parking spaces exceeding $2,500 per year.
2. Telephone services under GSA authority. (This does not include cell phones or pagers).
3. Cash advances/transactions.
4. Meals, beverages, lodging (not applicable to reservist and recruit applicants), vehicle rentals/leases have 60 day limits (not applicable during port calls and dry dock), airline/bus/train/ boat tickets or other travel expenses incurred while traveling under official government orders. The cardholder should use their own Government Travel Card (GTC) issued to them for these expenses.

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P-card restricted uses, continued

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5. Ammunition and weapons.

6. Fuel (fuel services over $2,500 are subject to the Service Contract Act), oil, repairs, tires, or other attachments/equipment, vehicle retrofit, and vehicle maintenance for department owned or commercially leased vehicles should be purchased using the Government Fleet Card.

(Exception – Coast Guard cardholders with an approved MCC lift from DHS/Agency Program Coordinator (APC).

7. Legal Services.

8. Private sector temporary employees.

9. Real Estate Services (unless DHS has authorized a MCC lift).

10. Prepaid phone cards.

11. Personal convenience items (e.g., parking ticket, microwave, fans, heater)

12. Lodging (unless DHS has authorized a MCC lift).

13. Postage Stamps (unless DHS has authorized a MCC lift) are authorized under certain circumstances, with prior approval in writing (email or memo) from the USCG Postal Manager, USCG HQ CG-611).

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Special Approval Purchases

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1. IT related resources

2. Printing Services

3. Mail Package Services

4. Advertisements for recruitment

5. Business Cards

6. Branding (promotional advertising)

7. Conference or meeting room rentals

8. Individual memberships (sect 5.6 of FRMM)

9. Training reqs that are more complex than th epurchase of one training instance for one employee

10. Meals and light refreshments. for examples of morning/afternoon/or evening snacks.

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Rebates

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Rebates can be accepted. Should the vendor state the rebate would be a check versus a credit to your P-Card, instruct the vendor to make the check payable to the USCG. Upon receipt, mail the check and information regarding the rebate to the appropriate Treasury Lockbox (see

FINCENSOP).

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P-Card Disputes

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If supplies purchased with the P-Card are unacceptable, follow the steps below:

Disputes

1. Return the item for replacement or credit; cash refunds are not authorized. If you return an item and receive a credit voucher, attach the voucher to the Purchase Card Statement (PCS). If the merchant refuses to replace the defective item or give credit, the purchase of this item/service will be considered to be "in dispute."
2. If a cardholder is charged for an item incorrectly, fails to receive items or services ordered, receives only a partial delivery, or is billed for supplies or services not ordered, the item/service will be considered "in dispute."
3. The government has the right to determine the appropriateness of the charge. If the dispute results in a credit, the credit will appear on the cardholder’s statement. All disputes must be documented and copies of all disputes must be maintained in the P-Card file.
4. Disputes must be filed with the bank within 60 days of the date of the PCS. Cardholders should refer to the bank’s procedures for processing disputes.

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NOTE: Clicking on "Disputed" in the Transaction Verification screen in PCA

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indicates that you have disputed the transaction with either the vendor or the bank. It DOES NOT dispute the transaction with the bank.

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C-Checks are pre-printed, pre-numbered, multi-copy checks that are issued by

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the government’s P-Card issuing bank.

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Convenience-Checks (C-Checks) are

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They are used when merchants will not accept a P-Card or purchase order. They may be used worldwide. They are next to the least preferred method of procurement, just above the Standard Form (SF) 44 Purchase Order Invoice voucher. The reason for this is twofold:

1. By the nature of their use, C-Checks carry a high risk for abuse, and;
2. JP Morgan Chase charges a substantial fee on the value of each check cashed.

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The electronic Government Point of Entry (GPE) for public notification is

FEDBIZOPPS. Proposed contract actions expected to exceed

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$25,000 must be formally advertised by synopsizing the requirement in FEDBIZOPPS.

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Husbanding Agent (HA) contracts are multi-year contracts issued by the

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Navy Supply Systems Command (NAVSUP) for port services in foreign ports. These contracts provide for standard services and prices for military ships visiting various ports-of-call

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Capitalization applies to the acquisition, construction, or improvement of building structure, shore and waterways projects with a total unit cost (perasset cost) of

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$200,000 or greater.

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Every contract for the development or delivery of capitalized assets valued at $50,000 or more shall be supported by a signed acceptance report, such as

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DD Form 250, Material Inspection and Receiving Report, DHS Form 70021, Material Inspection and Receiving Report, Standard Form (SF) 1449, Solicitation/Contract/Order for Commercial Items, or Optional Form (OF) 347, Order for Supplies and Services, in order to document the date of acceptance and valuation of Coast Guard capitalized asset

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The GSA Lease Fleet Card

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this card is used only for currently leased GSA vehicles. All fuel, maintenance and authorized repairs by GSA are allowable expenses for current leased GSA vehicles.

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The CG Fleet Fuel Card

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this card is used only for CG owned and CG leased vehicles requiring fuel and regular maintenance.

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The P-Card is authorized only when you cannot use

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the GSA Lease Fleet Card or the CG Fleet Fuel Card and you are purchasing “vehicle modifications” to CG Fleet Lease vehicles and CG owned/lease vehicles. COCO (or designee) authority is not required.

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All expenditures related to vehicle purchase, commercial lease, maintenance, repair or vehicle modification not charged to a GSA Lease Fleet Card MUST be reported annually

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to Assistant Commandant for Engineering and Logistics (CG-4).

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The Contractor Verification System (CVS) that manages the information necessary for contractor personnel to receive a

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Common Access Card (CAC) was designed in 2003 to replace DD Form 1172-2 “Application for Department of Defense Common Access Card DEERS Enrollment.”

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Agencies shall assure the use of products containing recovered materials and bio-based products to the

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maximum extent practicable

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Additional authorization is provided to allow a customer to present a

Recognition retiring member assigned to their command with an item of nominal value

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(currently $335 or less) to recognize their contribution to the service and the country. Items must be non-monetary and convey pride and honor to the recipient. Items to be considered may include, but are not limited to: Plaques (wall, desk, or shadow box), pen sets, desk medallions and certificates.

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Discretion should be used when selecting an item for retirement recognition

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Gifts (i.e., golf clubs, deck chairs, clothing items) are NOT AUTHORIZED and shall not be purchased with appropriated funds.

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All expenses related to a reception are considered personal expenses and are not payable with appropriated funds

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This includes, but is not limited to, facility and equipment rentals, food expenses, return postage for RSVP cards, and travel expenses for personnel whose sole purpose is to coordinate or be involved in the reception.

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Coast Guard traditional ceremonies are limited to:

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1. Change of Command;

2. Change of Homeport;

3. Vessel Christening;

4. Vessel Commissioning/Decommissioning;

5. Change of Watch (only for the Vice Commandant of the Coast Guard, Secretary of DHS and the Master Chief Petty Officer of the Coast Guard and CG Reserve Force);

6. Recognition of the Coast Guard “Ancient Mariner” and “Ancient Albatross” awards;

7. Groundbreaking;

8. Laying a cornerstone for a public building;

9. Graduation.

10 James Ancient Keeper Award

11. Ribbon cutting ceremonies

Note: Only those ceremonies listed above are authorized support

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Bottled or potable water cannot be purchased using appropriated funds unless

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a local health official or USCG SILC Safety and Environmental Health Officer determines that the water is unfit due to non-compliance with recommended Maximum Contaminant Levels (MCL) from the Environmental Protection Agency (EPA)

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bottled water may be purchased with appropriated funds only on the grounds of necessity which include:

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1. No potable water is available within 200 feet of the place where people normally work.

2. Water is contaminated.

3. There is an urgent need for water that could not otherwise be met.

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The use of appropriated funds to pay for subscription services for cable or satellite TV service is permissible only under the following circumstances

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1. The service must be viewable in general areas, such as rec decks, lounges, wardrooms, and not individual offices.

2. The subscription must be limited to basic and three (3) premium stations/services. Premium stations/services are defined as those stations or services that are not included in the most basic service agreement offered. They normally include such services as dedicated movie channels, channels of special interest (children’s programming, history or technology related programming, sports programming) and sports packages services that give access to all games within a season, or packages that provide expanded sports coverage beyond the basic level service. Specific examples of premium service include:

a. Movie services such as Cinemax, HBO, and Showtime. Insome cases these services may include more than one channel. For example, Showtime, Showtime 2, Showtime

Unlimited, the Movie Channel, Flix, and the Sundance Channel.

b. A “specialty pack” of channels not part of a basic service. Examples include Sports Packs consisting of several sports channels and/or regional sports channels.

c. A sports subscription that is not part of a basic service. Examples include NFL Sunday Ticket, MLB Extra Innings, and ESPN GamePlan.

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The following stations/services are not authorized to be purchased with OE funds:

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1. Movie and special event viewing paid per event/daily basis.

2. Payment for adult entertainment stations where the content is sexually related.

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The use of appropriated funds to procure coffee makers, microwave ovens, and refrigerators for centralized kitchen areas is authorized if

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the primary benefit of such equipment is for the Government, and not simply for the personal convenience of the employees.

1. The equipment can be reasonably related to the efficient performance of agency activities. This may be demonstrated by showing that:

a. The equipment allows personnel to prepare and consume meals in close proximity to their work area, thus reducing the time away from their desks, and

b. The equipment contributes to the health and well-being of the employees by providing a means for employees to prepare their food.

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The Federal Property Management Regulations (FPMR) (41 CFR 101-26.103-2) permits the purchase of pictures, objects of art, plants, flowers (both artificial and real) and other similar items as decorative items when furnishing federal buildings

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Such items may be purchased for general use areas and may not be purchased solely for the personal convenience or to satisfy the personal desire of an employee.

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Appropriated funds may be used to purchase flowers under the following circumstances

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Traditional Ceremonies: Floral centerpieces may be purchased for traditional ceremonies. The purchase of a wreath for National Veteran Commemorations is also authorized.

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Small Disadvantage Business

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A small business concern that is at least 51% unconditionally owned by one or more individuals who are both socially and economically disadvantaged individuals and has its management and daily business controlled by one or more such individuals