Overview
FAR 13.301 establishes the authority and parameters for using the Governmentwide commercial purchase card as both a procurement and payment method for supplies, services, and construction. It directs agencies to implement internal controls while encouraging the card's use for a broad range of transactions beyond simple micro-purchases.
Key Rules
- Authorized Personnel: Use is limited to contracting officers and individuals specifically designated and authorized under FAR 1.603-3.
- Permissible Uses: The card may be used to make micro-purchases, place task or delivery orders (if authorized by the underlying contract/agreement), and make payments on contracts when agreed to by the contractor.
- Agency Requirements: Agencies must establish procedures consistent with the Treasury Financial Manual (TFM 4-4500) and GSA credit card contract terms.
- Scope of Use: Regulations explicitly state that agencies should not limit card use to micro-purchases; use is encouraged for higher dollar amounts and orders against Part 8 contracts or other instruments.
- Contractual Integration: When using the card for payment under a written contract, the specific clause prescribed in FAR 32.1110(d) must be included.
Practical Implications
- The purchase card functions as a streamlined "dual-purpose" tool that reduces administrative costs by serving as both the acquisition vehicle for small buys and the payment mechanism for large-scale contracts.
- Contractors can expect increased efficiency and faster payment cycles when accepting the card, but they must ensure their internal systems can handle card-based task orders and that the appropriate payment clauses are present in their contracts.