National Aeronautics and
Space Administration
Washington, DC 20546
Procurement Notice
PN 16-24
December 16, 2016
Revise NFS 1813.301—Governmentwide Commercial Purchase Card
(NFS Case 2016-N041)
PURPOSE: Revise NASA FAR Supplement (NFS) Subpart 1813.301, Governmentwide commercial purchase card, to designate the NASA Shared Services Center (NSSC) as the Agency’s lead and subject matter expert for the oversight and management of the NASA purchase card program, and to consolidate and transition the non-regulatory policy and guidance pertaining to the use of the NASA purchase card from NFS Subpart 1813.3 to the newly-established NASA Purchase Card Procedures and Instructions, that will be posted to the NASA purchase card website, concurrent with the effective date of this Procurement Notice (PN). This scope of this NFS change is limited to transitioning the policy and guidance from the NFS to the NASA Purchase Card Procedures and Instructions without any revisions to the content beyond general formatting, application of a new non-NFS numbering scheme, and a technical correction to a previous revision made to NFS 1813.301-79(e) that was affected by PN 15-09, dated November 25, 2016. There will be a subsequent and separate opportunity and action to provide comment and suggested revisions to the content of the NASA Purchase Card Procedures and Instructions. Accordingly, the NASA Purchase Card Procedures and Instructions is attached hereto for representational purposes.
BACKGROUND: PN 15-09, dated November 25, 2015, amended NFS 1813.301, Governmentwide commercial purchase card, to update, consolidate and incorporate requirements pertaining to special approvals and prohibited items, and related non-regulatory requirements formerly prescribed by PIC 10-14A, Special Approvals for Purchase Card Transactions, PIC 12-05, Authorized Promotional and Personal Use Items, and NPD 2521.1, NASA Communications and Material Review. Since the issuance of PN 15-09, several key milestones and decisions have occurred.
· NASA Policy Directive (NPD) 5104.1, Government Charge Cards, was finalized, which served to formally recognize the NSSC as the Agency lead and subject matter expert for the oversight and management of the NASA purchase card program and to reflect and transition more responsibilities and accountability to the NSSC regarding the NASA purchase card program;
· Langley Research Center’s purchase card activities were partially transitioned to the NSSC in September 2016;
· Kennedy Space Center’s purchase card activities were fully transitioned to the NSSC in October 2016; and
· The formation of a team to consider the feasibility of transitioning the remaining centers’ purchase card activities to the NSSC.
· On October 14, 2016, the Acquisition Integrity Office (Office of the General Counsel) advised the HQ-OP of a conflict between FAR requirements and a revision made to NFS 1813.301-79(a) via PN 15-09. In accordance with the FAR, contractors that are debarred, suspended or proposed for debarment are excluded from receiving orders or contracts. Moreover, the FAR requires cardholders to review the Excluded Parties List at https://www.sam.gov to ensure that no order is placed with a listed vendor or contractor. PN 15-09 incorrectly relaxed the requirement by replacing the verb “shall” with “are encouraged,” which caused the NFS to conflict with the FAR. Accordingly, this revision serves to correct the requirement for cardholders to review the Excluded Parties List back to a “shall.”
Accordingly, since the majority of the Agency’s purchase cardholders and their approvers are located outside the center’s procurement offices, the HQ Office of Procurement, in close collaboration with the NSSC, has determined that the non-regulatory policy and guidance governing the use of the NASA purchase card should be transitioned from the NFS to a less formidable form and format (i.e., NASA Purchase Card Procedures and Instructions) that will be posted and maintained by the NSSC via the NASA purchase card website.
ACQUISITIONS AFFECTED BY CHANGES: The revised policy prescribed herein is applicable to micro-purchase threshold transactions and other eligible purchases.
ACTION REQUIRED: Dissemination of the revised policy.
CLAUSE CHANGES: None.
PARTS AFFECTED: Part 1813.
TYPE OF RULE AND PUBLICATION DATE: These changes do not have a significant effect beyond the internal operating procedures of NASA and do not have a significant cost or administrative impact on contractors or offerors, and therefore do not require codification in the Code of Federal Regulations (CFR) or publication for public comment.
HEADQUARTERS CONTACT: Todd Lacks, Contract and Grant Policy Division, Office of Procurement, Phone: (202) 358-0799, Email: .
/s/
William P. McNally
Assistant Administrator for Procurement
Enclosure
PART 1813
SIMPLIFIED ACQUISITION PROCEDURES
* * * * *
SUBPART 1813.3 SIMPLIFIED ACQUISITION METHODS
PART 1813
SIMPLIFIED ACQUISITION PROCEDURES
* * * * *
Subpart 1813.3—Simplified Acquisition Methods
1813.301 Governmentwide commercial purchase card.
(a) The Governmentwide commercial purchase card [is authorized for use in making and/or paying for purchases of supplies and services] is the preferred method of ordering and paying for micro-purchases. [The NASA purchase card] Purchase cards shall be used for [micro-purchase threshold transactions] micro-purchases, [and] for [other] eligible purchases, to the maximum extent practicable. (See FAR Part 2 for the current micro-purchase threshold.)
(b)(1) For purchases above the micro-purchase threshold, purchase cards may be used by cardholders, with the appropriate delegation of procurement authority, to make payments against contracts, purchase orders, or orders under blanket purchasing agreements (BPA). (See 1813.303-3(a)(4) for guidance on the use of purchase card for placing individual orders under blanket purchase agreements.) [The NASA] P[p]urchase cards may be used as a payment mechanism up to the simplified acquisition threshold on established orders or contracts.
(2) Use of the [NASA] purchase card on orders above the micro-purchase threshold does not relieve the cardholder from complying with all applicable statutory and regulatory requirements, including, but not limited to, soliciting competitive quotations, verifying price reasonableness, reserving for small businesses, including the appropriate terms and conditions, and reporting to the Federal Procurement Data System–Next Generation (FPDS-NG).
(3) This policy establishes the minimum requirements for issuing, using, and internal controls on the use of purchase card and convenience checks. Center procurement officers may supplement these requirements when necessary to meet center-specific requirements.
[(c) NASA Policy Directive (NPD) 5104.1, Government Charge Cards, establishes policy, responsibilities and appropriate safeguards and internal controls for the management, use and continuous evaluation of NASA charge cards, which include travel, purchase, fleet charge cards, and the Department of Defense (DoD) Aviation Into-plan Reimbursement (AIR) Card program and the Ships Easy Acquisition (SEA) Card program. The NPD also implements the Office of Management and Budget’s (OMB) Circular A-123, Appendix B, and consolidates other charge card requirements issued by OMB, the General Services Administration (GSA), the Department of Treasury, DoD, and other Federal agencies.
(d) The Assistant Administrator for Procurement—
(1) Serves as NASA’s lead for maintaining Agency-wide policy and regulations pertaining to the NASA purchase card program, as carried out by the NASA Shared Services Center (NSSC); and
(2) Conducts procurement management surveys within the Agency, including review of purchase card process controls to ensure that they are designed appropriately and operate effectively to safeguard against fraud, waste, abuse, and mismanagement.
(e) The Executive Director of the NSSC oversees the—
(1) Implementation, use and management of the NASA purchase card program; and
(2) Activities of the Agency Program Coordinator for the NASA purchase card program and the contracting officer for the Agency’s charge card contract with GSA.
(f) The Agency Program Coordinator, located at the NSSC, serves as the Agency’s lead and subject matter expert for the management of the NASA purchase card program.
(g) The NASA Purchase Card Procedures and Instructions contains specific policy, procedures and instructions pertaining to the use of the NASA purchase card and is located, along with other guidance, on the NASA purchase card website at: https://www.nssc.nasa.gov/purchasecard. NASA purchase cardholders shall follow the policy and procedures outlined in NPD 5104.1 and the NASA Purchase Card Procedures and Instructions.]
1813.301-70 Purchase card program participant and roles.
(a) NPD 5104.1, Government Charge Cards, establishes internal controls for the management, use, and continuous evaluation of all charge cards, including air, fleet, travel, and purchase card. The NPD identifies the responsibilities of NASA organizations and staff involved in charge card use and management. The key officials and offices responsible for purchase card management are addressed in this section.
(b) The HQ Office of Procurement establishes policy for the use of purchase cards and the internal controls for the purchase card program.
(c) Agency Program Coordinator (APC). The APC is a Government employee, located at the NASA Shared Service Center (NSSC), who serves as the Agency-wide lead, focal point, and subject matter expert for the oversight and management of the Agency’s purchase card program, in accordance with OMB Circular A-123, Appendix B, and other regulatory requirements and the primary interface with the GSA Office of Charge Card Management and the contractor bank. The APC also collects data from Center Program Coordinators (CPCs) and submits all Agency reports as required in accordance with OMB Circular A-123, Appendix B.
(d) Center Program Coordinator (CPC). Each Center shall have a CPC who is a Government employee that is appointed, in writing, by the Center procurement officer. The CPC is responsible for overall management of the Center’s purchase card program. The CPC is the liaison between the NASA Center and the APC. The CPC is responsible for—
(1) Managing and overseeing their center’s purchase card program;
(2) Providing operational support to cardholders and approving officials;
(3) Conducting and documenting reviews of cardholder and approving official activity as required by NASA's Purchase Card Internal Review Guide for CPCs;
(4) Managing cardholder and approving official accounts and authorization controls;
(5) Ensuring that cardholders and approving officials are fully trained and refresher requirements are met;
(6) Issuing, suspending or canceling cards;
(7) Maintaining a central record of all purchase card delegations/accounts and their status: active, suspended, or terminated. For terminated delegations, the central record shall specify the reason for termination, e.g., for cause, employee left NASA, transfer to another center, etc;
(8) Conducting semi-annual reviews of cardholder accounts to determine the necessity of the number of accounts/cardholders, account limits, and the level of control of individual approving officials; and
(9) Submitting Center data to the APC as required for Agency reporting to OMB.
(e) The approving official. The approving official shall be a Government employee. Approving officials are responsible for—
(1) Ensuring that cardholders safeguard their cards and account numbers;
(2) Conducting independent reviews of cardholder records and transactions to ensure purchases are appropriate, authorized, for Government use only, and within the cardholder’s delegated authority;
(3) Reviewing their cardholders’ monthly transactions and approving them for payment;
(4) Ensuring cardholder records are well-documented and properly maintained;
(5) Taking disciplinary action against cardholders in accordance with the NASA Desk Guide for Table of Disciplinary Offenses, when appropriate;
(6) Ensuring all cardholder charges are either reconciled and approved in P-Card Web Solutions or disputed within 90 days; of the transaction;
(7) Reporting suspected misuse, fraudulent or potentially fraudulent activity, to the CPC and center Acquisition Integrity Program official;
(8) Notifying the CPC when the approving official, personally, or a cardholder, will be on extended leave, has transferred to another organization, is leaving NASA, or will no longer be an approving official or cardholder.
(f) Every purchase cardholder shall have an approving official. The approving official is the primary source of quality assurance and oversight of the purchase card. The approving official is typically the cardholder’s immediate supervisor or within the cardholder’s management chain. The approving official shall be designated at an appropriate level within the organization to ensure proper management and oversight of the cardholder’s transactions. In no instance may a cardholder be the approving official on his or her own card transactions. Approving officials shall not have more than six cardholders reporting to them, unless a waiver has been approved by the Center procurement officer (see 1813.301-72(d)). Approving officials must have direct knowledge of their cardholder’s transactions and the ability to verify receipt of the purchases made by his or her cardholders.
(g) The approving official’s management shall be responsible for ensuring approving officials are available to review and approve cardholder transactions within their organizations. Alternate approving officials shall be appointed to approve purchases when the primary approving official is unavailable, such as when on leave or travel. The CPC may approve cardholders’ transactions on behalf of an approving official, in order to meet reconciliation deadlines, so that prompt payment may be made. In these cases, the CPC shall document the reason for approving on behalf of the approving official. The CPC shall document the transactions approved and provide a copy of this documentation to the approving official. CPC approval of transactions shall only be used as a last resort, on a temporary basis.
(h) Cardholders. Cardholders must be Government employees. Cardholders are responsible for using their cards ethically and in accordance with Federal and NASA policy and regulation for purchases in support of NASA mission requirements or institutional operations. Cardholders shall—
(1) Safeguard the card and card number;
(2) Create an order log within P-Card Web Solution prior to ordering;
(3) Comply with all dollar limits on purchases, both single purchase limit and monthly purchase limit;
(4) Use the card only to make informed buys of approved supplies and services;
(5) Maintain all necessary documentation to support their purchase decision;
(6) Reconcile or dispute transactions promptly;
(7) Promptly notify the CPC when they will be leaving their organization, leaving NASA on extended leave, or no longer using the card;
(8) Promptly report lost or stolen cards to the contractor bank and CPC; and
(9) Report suspected misuse or fraudulent activity to the CPC and center Acquisition Integrity Program (AIP) official.
1813.301-71 Training requirements.
(a) To obtain an approving official or cardholder account, employees, including warranted contracting officers, shall complete the on-line NASA Purchase Card Training Course and the NEACC1035 Bankcard Purchases and Desktop Receiving Course, available in SATERN. To maintain their accounts, cardholders and approving officials shall complete the NASA Purchase Card Training Course every three years after completing the initial course. Centers may require additional training.