**INFORMATION SHEET**

**NOAA'S PURCHASE CARD POLICY**

This Information Sheet is intended to address questions that have been
asked and to ensure that interpretations of the policy are consistent
across the agency.

1\. Requesting a Card

a)  What must be submitted?

-   Written justification to explain need (consider purchasing needs of
    organization; number of cardholders already within organization;
    availability of appropriate approving official (AO) considering
    requirement of 7 cardholders to 1 approving official) -- Signed by
    head of office requesting the purchase card

-   Copies of training certificates for required courses for both
    cardholder and AO (AO training certificates are only required if the
    request is to establish an AO account; they are not required if the
    proposed AO is already an approved AO)

-   Appropriate set-up form (cardholder and/or AO) -- available at
    <http://www.ago.noaa.gov/bankcard/Forms.html>

-   If proposing to exceed the 7:1 ratio for cardholders to AO, a
    justification for waiver of the required ratio.

-   Identification of whether the cardholder will or will not have COOP
    responsibilities

> b\) To whom do I submit the completed nomination package?

-   If the proposed AO is located in Headquarters -- submit the package
    to Tracey Cureaux

-   If the proposed AO is located the region serviced by Eastern Region
    Acquisition Division -- submit the package to Michele McCoy

-   If the proposed AO is located in the region serviced by Central
    Region Acquisition Division -- submit the package to Sharon K. Tyson

-   If the proposed AO is located in the region serviced by Mountain
    Region Acquisition Division -- submit the package to Carolyn
    Hedgpath

-   If the proposed AO is located in the region serviced by Western
    Region Acquisition Division -- submit the package to Shannon McIlroy

2\. Current Cardholders Who Previously Had Authority Exceeding \$3,000

> Action has begun to reduce the single purchase limit to \$3,000. New
> Letters of Delegation shall be sent to all affected cardholders within
> 30 days of release of this policy.

3\. Cardholder to Approving Official Ratio

> NAHB Section 1.9(d) establishes the NOAA policy of maintaining a
> cardholder to approving official ration of 7 to 1. The Heads of the
> Regional Acquisition Divisions and the Senior Bureau Procurement
> Official in Headquarters have the authority to waive that ratio. Any
> such waivers must be submitted by the head of the office requesting
> the waiver and received by the appropriate Head of Contracting Office
> (HCO) in the regions and by the Senior Bureau Procurement Official
> (SBPO) in Headquarters in writing and document the following:
>
> \- Name of Approving Official
>
> \- Name of all Cardholders assigned to that AO and/or proposed to be
> assigned to that AO
>
> \- A rationale for why the waiver should be granted
>
> The request will be considered in light of the following: proposed
> cardholder to AO ratio; volume of usage of all cards assigned to that
> AO; historical information drawn from reports showing number of times
> cardholders and/or AO has been delinquent in reconciling/approving
> monthly statements, historical information drawn from completed
> purchase card audits, and physical location of cardholders and AO.
> Determination on waiver will be provided in writing to the requestor.

3\. Purchase Card Authorities

> Two levels of purchase card authorities are allowed:
>
> Micropurchase Level (currently \$3,000) or less
>
> Cardholders can purchase, in a single transaction, up to \$3,000 and
> cannot exceed
>
> their 30-day limit (that limit varies based on individual cardholder
> set-up). They
>
> may use their purchase card as a payment mechanism against established
>
> contracts or Blanket Purchase Agreements (BPA) **only if that vehicle
> permits payment via the purchase card.** Purchases may be made on the
> open market, from Federal Supply Schedule Contracts and, **where
> allowed by the contract/BPA,** from existing Indefinite
> Delivery/Indefinite Quantity (IDIQ) contracts or BPAs.
>
> Note: At the time of submission of the request for a purchase card, if
> the requested single purchase limit was less than the micropurchase
> level, the card will be set up with a single purchase level at the
> requested amount vs. the micropurchase level. For example, if an
> organization submits a request to establish a purchase card account
> for a cardholder with a single purchase level of \$2,000, that is how
> the card will be set up and the cardholder will be limited to that
> single purchase level.
>
> Field Delegates with Delegated Procurement Authority
>
> These individuals are required to complete additional training
> (discussed below) and can use the purchase card and other acquisition
> mechanisms (e.g., purchase orders, delivery orders, task orders) as
> appropriate for the individual requirement. For purposes of this
> guidance the purchase card may be used as follows by the Field
> Delegate within their single purchase and 30-day limits:
>
> \- to acquire micropurchases
>
> \- above the micropurchase threshold, to place orders against Federal
> Supply Schedule Contracts or established IDIQ contracts and BPAs
>
> \- as a mechanism to pay for acquisitions processed under a purchase
> order,
>
> task order, delivery order or contract **that permits payment via the
> government-wide purchase card**
>
> (NOTE: See NOAA Acquisition Handbook Section 1.8 for other acquisition
> authorities available to Field Delegates.)

4\. What documentation is required for purchase card transactions?

Each purchase card transaction must have the following documentation:

For Micropurchases:

> \- A funding document or authorization approved by the appropriate
> organizational official with funds commitment authority to expend
> funds (NOTE: this can be an e-mail or can take the form of a blanket
> authorization for a specific sum for a specific period of time (e.g.,
> monthly, quarterly, yearly) against which individual purchases are
> deducted; in which case, the specific sum authorized cannot be
> exceeded and unexpended funds cannot be carried forward to a future
> period without specific authorization from the funds authorizing
> official.) If a blanket authorization is issued, the purchase
> cardholder must include with their transaction documentation, a
> spreadsheet that shows a running tally, by date of funds authorized,
> purchases made, and current balance.
>
> \- Evidence that required sources of supply were checked.
>
> \- Where required, EIT Procurement Checklist for Section 508
> compliance (available as Attachment B to CAM 1313.301)
>
> \- Documentation of specific authority when acquiring food, including
> a signed CD-464 by the NOAA CFO when purchasing food for conferences.
>
> When food, refreshments or beverages are acquired in other situations
> (e.g., under the Government Employees Training Act, the Government
> Employees Incentive Awards Act (GEIAA), for COOP purposes, or in
> emergency situations) documentation of the advance approval by the
> servicing HCO.
>
> \- Evidence that fair and reasonable pricing has been determined and
> documented (can be based on prior purchases or documentation of
> catalog or Federal Supply Schedule prices)
>
> \- Itemized receipts for the items acquired
>
> \- An executed copy of Form CD-509, Property Transaction Request for
> all accountable personal property
>
> For Purchases above \$3,000 by Field Delegates:
>
> All of the above, plus the following:
>
> Completion of Attachment A to CAM 1313.301
>
> (NOTE: Field Delegates should refer to NOAA Acquisition Handbook,
> Section 1.8 for documentation requirements for other acquisition
> methods.)

5\. Card Usage and Transactions

Purchase Card usage will be monitored for all cardholders on a rolling
18-month basis. Cards with limited or no transactions over an 18-month
period of time will be closed unless the cardholder has COOP
responsibilities (those responsibilities must be documented at the time
the purchase card is requested or as those responsibilities are assigned
to the cardholder).

Purchase Card transactions will be monitored on a continual basis to
identify instances of split requirements and/or acquisition of
prohibited or questionable items/services.

Purchase Cards shall be suspended in the following instances:

\- failure to timely reconcile (cardholder)/approve (AO) monthly
statements

\- failure of cardholder/AO to maintain required training

> \- misuse of the purchase card (e.g., acquiring prohibited
> items/services, splitting acquisitions, allowing others to use the
> purchase card)

\- failure to follow required documentation procedures

6\. Increases or Special Authorizations

Single purchase limits (SPL) will not be increased above the
micropurchase threshold unless the cardholder in a Field Delegate. For
those cardholders whose SPL is less than the micropurchase threshold,
requests to increase a cardholder's SPL will not normally be allowed.
Whenever a cardholder's single purchase limit needs to be increased for
a specific acquisition, the AO must submit an e-mail or written request
to the Agency Program Coordinator (APC) (see 1.b above for the names)
explaining the need and the justification for the increase. The APC will
evaluate the request and provide a decision to the cardholder. If the
decision is not to approve the increase request, the cardholder and AO
will be directed to prepare and submit a purchase request to their
servicing acquisition office through C-Request. Increases to the single
purchase limit cannot exceed the micropurchase threshold unless the
cardholder is a Field Delegate.

Whenever a cardholder's 30-day limit needs to be increased for a
specific acquisition or a specific period of time, the AO must submit an
e-mail or written request to the APC with a justification explaining the
needed increased authority. The APC will evaluate the request and
provide a decision to the cardholder.

7\. Training

Following are the specific training requirements for individuals
designated as a cardholder or an Approving Official:

[Cardholders with Single Purchase Limits at the Micropurchase
Threshold:]{.underline}

\- GSA Smartpay Purchase Card
([www.fss.gsa.gov/webtraining](http://www.fss.gsa.gov/webtraining))

\- Micropurchases and Section 508
([www.section508.gov](http://www.section508.gov/))

\- 1-hour Government Ethics Training Course
([http://learning.doc.gov](http://learning.doc.gov/))

[Field Delegates with Delegated Procurement Authority]{.underline}

\- Above training requirements plus

\- Additional training requirements set forth in NAHB Section 1.8

[Refresher Training]{.underline}

GSA Smartpay Purchase Card and Government Ethics on-line training are
required to be taken every 3 years.

It is essential that cardholders and AOs provide copies of training
certificates to their servicing APC so that currency of training can be
validated

8\. Delegation of Authority

Upon approval of a request for a purchase card, a Letter of Delegation
will be provided to the Cardholder with a cc to their AO (applies to
micropurchase or less). Field Delegates will receive a specific Level I
Contracting Officer warrant that addresses their purchase card
authorities.

All current cardholders (except for Field Delegates) will have their
single purchase limit reduced to \$3,000.

9\. Audits

All cardholders will be audited at least once every 6 years. The
schedule of audits to be completed for FY 2008 are currently under
development and will be provided to the cardholders and AOs to be
audited, as well as, the appropriate Line/Staff Office Chief Financial
Officer. The procedures set forth in NAHB Section 1.9 shall be used for
conducting these audits.

10\. Why can't there be above-micropurchase threshold authority given
without requiring the cardholder to become a Field Delegate?

The limitations on the use of the Governmentwide purchase card are
stated in the Federal Acquisition Regulation (FAR). Following is the
pertinent language from the FAR:

13.301 Governmentwide commercial purchase card.

> \(a\) The Governmentwide commercial purchase card is authorized for
> use in making and/or paying for purchases of supplies, services, or
> construction. The Governmentwide commercial purchase card may be used
> by contracting officers and other individuals designated in accordance
> with 1.603-3. The card may be used only for purchases that are
> otherwise authorized by law or regulation.
>
> \(b\) Agencies using the Governmentwide commercial purchase card shall
> establish procedures for use and control of the card that comply with
> the Treasury Financial Manual for Guidance of Departments and Agencies
> (TFM 4-4500) and that are consistent with the terms and conditions of
> the current GSA credit card contract. Agency procedures should not
> limit the use of the Governmentwide commercial purchase card to
> micro-purchases. Agency procedures should encourage use of the card in
> greater dollar amounts by contracting officers to place orders and to
> pay for purchases against contracts established under Part 8
> procedures, when authorized; and to place orders and/or make payment
> under other contractual instruments when agreed to by the contractor.
> See 32.1110(d) for instructions for use of the appropriate clause when
> payment under a written contract will be made through use of the card.
>
> \(c\) the Governmentwide commercial purchase card may be used to---
>
> \(1\) Make micro-purchases;
>
> \(2\) Place a task or delivery order (if authorized in the basic
> contract, basic ordering agreement, or blanket purchasing agreement);
> or
>
> \(3\) Make payments, when the contractor agrees to accept payment by
> the card.

FAR 1.603-3 states:

> \(a\) Contracting Officers shall be appointed in writing on an SF
> 1402, Certificate of Appointment, which shall state any limitations on
> the scope of authority to be exercised, other than limitations
> contained in applicable law or regulation. Appointing officials shall
> maintain files containing copies of all appointments that have not
> been terminated.
>
> \(b\) Agency heads are encouraged to delegate micro-purchase authority
> to individuals who are employees of an executive agency or members of
> the Armed Forces of the United States who will be using the supplies
> or services being purchased. Individuals delegated this authority are
> not required to be appointed on an SF 1402, but shall be appointed in
> writing in accordance with agency procedures.

CAM 1301.6 establishes the Contracting Officer Warrant program for the
Department of Commerce. Section 4.6 of CAM 1301.6 specifically states
that "Bureaus may further restrict the warrant levels at their
discretion." While DOC has established a purchase card warrant over the
micropurchase threshold to a maximum of \$25,000, NOAA has chosen to
limit increased purchase card authority to those individuals designated
as Field Delegates and who have been issued a Level I Contracting
Officer warrant. Based on consistent findings across NOAA, that the
purchase card is not being used appropriately above the micropurchase
threshold by those who have not been designated as Field Delegates, a
decision has been made that is consistent with other Federal agency
policies and with GAO best practices to limit increased purchase card
authorities to those individuals who have a Level I Contracting Officer
warrant.

Affected program offices are encouraged to identify appropriate
individuals within their organization who are already Field Delegates
who can utilize their purchase cards above the micropurchase threshold
(as limited by the FAR) and to identify whether the need exists for
additional Field Delegates in Headquarters and in the regions. As well,
program offices are encouraged to work with the Acquisition and Grants
Office to establish Blanket Purchase Agreements and Indefinite Delivery
type contracts for commonly used goods and services which both purchase
cardholders with micropurchase authority and Field Delegates with
expanded authorities can order against.