CHAPTER 4 PURCHASING

CHAPTER 4 PURCHASING Supplies and services that are not stocked or supplied must be procured by an activity to fulfill its assigned mission. The material presented in this chapter is not intended to be comprehensive. It does not con- tain everything an AK involved in purchasing needs to know; therefore, if your duties involve purchasing in any capacity, you should refer to the applicable sections of the NAVSUP manuals along with pertinent instructions and regulations. In addition, you should study NAVSUP P-560 carefully. PURCHASING REGULATIONS Detailed instructions and guidelines concern- ing the purchase or procurement of material or services from commercial suppliers are contain- ed in the Navy Supply Acquisition Regulation Supplement (SUPARS), NAVSUP P-560. Fleet fast pay procedures are contained in applicable fleet accounting and disbursing center (FAADC) instructions. The NAVSUP P-560, together with the Navy Acquisition Regulation Supplement (NARSUP), the Department of Defense Federal Acquisition Regulation Supplement (DFARS), and the Federal Acquisition Regulation (FAR), is used by all Navy activities for basic purchasing and contracting guidance. TRAINING All personnel involved in the purchasing function such as contracting officers, storekeepers, and buyers must attend a NAVSUP- authorized small purchase course. In addition, the management of all activities performing a purchasing function must make sure personnel are adequately trained to maintain and improve the quality of the purchasing function. STANDARDS OF CONDUCT All personnel engaged in purchasing and related functions occupy positions of public trust. Such personnel must, therefore, conduct themselves with absolute fidelity to the govern- ment. Accordingly, a person must not allow himself or herself to be placed in a position in which a conflict of interests may arise or in which he or she may justifiably be suspected. Accepting gratuities or favors or engaging in any other action that would result in financial profit or influence strict impartiality must absolutely be avoided. Information concerning proposed purchasing actions may not be made available to particular suppliers unless such information is made available to all competing suppliers. There are certain statutes that make it a crime for an agent of the government to engage in practices or activities that are at variance with the high standard of personal conduct that a person owes to the United States as such an agent. A digest of applicable provisions of these statutes is set forth in SECNAVINST 5370.2. Any person engaged in purchasing should make it a particular point to acquaint themselves with the provisions of the applicable statutes. METHODS OF PURCHASE The acquisition of supplies or nonpersonal services from commercial sources in the amount of $25,000 or less is referred to as small purchase. Open market requirements in excess of $25,000 must be procured through formal contracting procedures. Small purchase and other simplified purchase procedures of open market purchases can be made only when requirements cannot be obtained from 4-1