National  Industries  For  The  Blind  or  other severely   handicapped Mandatory   GSA   Federal   Supply   Schedule contracts Optional  GSA  Federal  Supply  Schedule contracts The purpose of GSA Federal Supply Schedules is to  provide  support  for  the  routine  needs  of  stationary shore-based  activities.  The  mandatory  use  of  the schedule is not practical for afloat activities. The Federal Acquisition   Regulation   (FAR)   recognizes   this   by making  “urgent  requirements”  an  exception  to  the mandatory use of schedules. The inherent constraints of shipboard supply and logistics make virtually all ship’s purchases urgent within the context of the FAR. It has been determined not to be cost effective for ships to assemble and maintain the considerable libraries of FSS literature. Therefore, GSA schedules are optional for shipboard  purchasing.  Shore  activities  purchasing  for ships use the GSA schedules. There  are  four  methods  used  for  making  small purchases. The first method is the blanket purchase agreement  (BPA).  Each  BPA  should  not  exceed  $25,000 (except food, which is an unlimited amount). Use the imprest fund method for purchases that do not exceed $500. Use the purchase order method for purchases that do not exceed $25,000. The purchase invoice (SF 44) method requires a Standard Form 44 and should not exceed $2,500 (except $25,000 for aviation fuel and oil purchased by pilots). Purchases  over  $2,500  must  have  competitive quotes from vendors. At least three vendors should be solicited. Orders cannot be split to avoid competition or purchase authority threshold. It is illegal for anyone other  than  a  properly  appointed  contracting  officer  to make a purchase for the government. Personnel without contracting authority who order supplies or services or commit the government to pay a vendor may be held personally liable for the cost of the transaction, and they are  subject  to  disciplinary  action. An imprest fund allows a ship to pay cash for small purchases. The imprest fund is under the custody of an imprest  fund  cashier.  The  cashier  advances  cash  to  pay for supplies. The paid receipt becomes the payment voucher and cuts the need for a purchase order and separate   voucher.   The   commanding   officer   (CO) appoints in writing the imprest fund cashier. The supply officer, when authorized by the CO, may appoint the imprest  fund  cashier.  Refer  to  enclosure  4  of  Fleet Purchasing    Procedures, NAVSUPINST  4200.85 (series), for more information on the imprest fund. The following conditions for using the imprest fund apply: Amount of transaction does not exceed $500. Use  of  imprest  fund  is  advantageous  to  the government. Supplies or services are available for delivery within 60 days, either at the contractor’s place or at the destination point. The   purchase   does   not   require   a   detailed . technical  inspection. Naval  activities,  including  ships,  with  contracting authority can set up an imprest fund if the following conditions  exist: .  The  authorization  for  contracting  specifically gives  imprest  fund  purchase  method  authority. l The type commander (TYCOM) approves the use of the imprest fund method in writing. l The commanding officer approves the imprest fund in writing. The  blanket  purchase  agreement  (BPA)  is  an agreement with a supplier to furnish specific groups of material   or   services   under   specified   conditions. Authorized personnel conduct purchases under the BPA method either verbally or by informal memoranda. This process is also known as BPA call. A BPA eliminates the need  for  an  individual  purchase  order  for  small requirements. Ships cannot set up a BPA. Upon request, shore supply activities may set up a BPA for ships. Or, ships may be authorized to place calls against a BPA issued by an ashore activity. Each BPA call should not exceed the ship’s authority or $25,000, whichever is lower. The purchase authority of $10,000 includes ship types   LPH   and   aircraft   carriers,   according   to NAVSUPINST  4200.81. The  individual  authorized  to  make  BPA  calls  are those  appointed  in  writing  by  the  CO.  The  certificate  of appointment will show the person as a contracting officer authorized to place BPA calls up to a certain dollar  limitation.  The  ship  must  maintain  a  list  of individuals appointed to make BPA calls, and a copy of this list must be submitted to the activity who issued the BPA.  The  ship  is  responsible  for  informing  the  shore contracting activity, in writing, immediately upon any changes to this list. A  purchase  order  is  a  written  offer  from  the government to buy certain supplies or services. The 4-10