#### **December 10, 2003**

## 

##### **AGAR ADVISORY**

**UNITED STATES DEPARTMENT OF AGRICULTURE**\
**OFFICE OF PROCUREMENT AND PROPERTY MANAGEMENT**\
**PROCUREMENT POLICY DIVISION**\
**AGAR ADVISORY NO. 58A**

**Prohibition on Using Purchase Cards or Convenience Checks**

**To Acquire Telecommunications**

**INTRODUCTION**: This Agriculture Acquisition Regulation (AGAR)
Advisory is a revision of, and supersedes, AGAR Advisory 58 dated
October 3, 2003. This revised Advisory incorporates a new exemption for
purchases of telecommunications resources outside the U.S. for use
outside the U.S. The revised Advisory also includes a waiver for
purchases of telecommunications to meet continuing and compelling
business requirements. This Advisory has been prepared to inform USDA
agencies and offices about a change to policy governing the use of
purchase cards and convenience checks. Effective November 1, 2003, USDA
agencies may no longer use purchase cards or convenience checks to
purchase or to pay for telecommunications services, supplies, or
equipment, except as provided in this Advisory.

**SUMMARY**: USDA is taking steps to improve its management of
telecommunications resources. In order to improve control over
expenditures for telecommunications, it is necessary to limit the ways
by which telecommunication resources may be acquired. Accordingly, it is
necessary to limit the use of the purchase card and convenience checks
for purchase of, or payment for, telecommunications resources.

In moving authority to purchase small requirements from contracting
offices to individuals who use the supplies or services purchased, the
purchase card program has substantially decentralized decision-making
authority for such purchases. The decentralization has adversely
affected USDA\'s ability to effectively and efficiently monitor
telecommunications acquisition costs and implement and enforce
consistent telecommunications procurement standards.

Departmental Regulation (DR) 5013-6, [Use of the Purchase Card and
Convenience Check,]{.underline} already provides that the purchase card
and convenience check may not be used to acquire major
telecommunications services. The Senior Procurement Executive and the
Chief Information Officer have further determined that the card and
check may not be used to acquire or pay for telecommunications
resources, except for emergency purchases of telecommunications
resources and for purchases of telecommunications products and
non-transmission services not exceeding \$350.00. DR 5013-6 will be
revised to incorporate this change of policy on the use of purchase
cards and convenience checks.

AGAR Advisory 58A Page 1 of 4

**DEFINITIONS:** [Telecommunications]{.underline} includes the
transmission, emission, or reception of signals, writing, images,
sounds, or intelligence of any nature, by wire, cable, satellite, fiber
optics, laser, radio, or any other electronic, electric,
electromagnetic, or acoustically coupled means. This Advisory addresses
the acquisition of products and services that support
telecommunications.

[Telecommunications products]{.underline} include, but are not limited
to: any component of a network involved in the transmission of analog or
digital communications including network routers, bridges, hubs, and Web
servers; telecommunications software such as email, groupware or
facsimile software; and, end-user devices like telephones, wireless
devices, video equipment, and supplies.

[Telecommunication services]{.underline} include, but are not
necessarily limited to: Service Level Agreements (SLAs) for wireline and
wireless carriers; Internet Service Provider (ISP) agreements; contract
services for the planning, design, development, installation, operations
and maintenance of telecommunications networks; and program management
support for telecommunications projects.

[Telecommunications resources]{.underline} are telecommunications
products and/or services.

[Covered telecommunications resources]{.underline} are
telecommunications resources that are covered by this Advisory; i.e.,
resources that may not be acquired with a purchase card or convenience
checks.

The following types of telecommunications resources are not covered by
this Advisory:

1.  Telecommunications accessories and incidental supplies or equipment,
    when the total amount ordered is less than \$350.00;

2.  Purchase of "one time" telecommunications services when the amount
    of the order is less than \$350.00; e.g., equipment repair.
    ([Note:]{.underline} User fees for service of any duration and
    charges or fees for other recurring services are payments for
    [covered]{.underline} telecommunications resources and may
    [not]{.underline} be paid for with the purchase card or convenience
    check.);

3.  Purchases made outside the United States of -

    a.  telecommunications products for use outside the United States;
        or,

    b.  telecommunications services to be performed outside the United
        States, including purchases of recurring services from local
        sources outside the United States;

4.  Purchases necessitated by emergencies. An emergency is any unplanned
    event that can cause death or significant injury to employees or the
    public; that can shut down or disrupt operations; or that can cause
    physical or environmental damage,

AGAR Advisory 58A Page 2 of 4

> such as national or declared emergencies, fire emergencies, hazardous
> materials incidents, storms, communications failure, disaster
> recovery, and similar emergencies. Purchases also may be made on an
> emergency basis when an unforeseen need of compelling urgency for
> telecommunications resources arises; i.e., the Government would be
> seriously injured if it could not immediately obtain
> telecommunications resources. Failure to plan for a requirement does
> not
>
> constitute an emergency. Use of the purchase card or convenience check
> for emergency purchases must be justified as provided by
> [Emergencies]{.underline}, below.

5.  Purchases associated with continuing and compelling business
    requirements as determined by the Associate Chief Information
    Officer (ACIO) for Telecommunications. Use of the purchase card or
    convenience check for emergency purchases must be justified as
    provided by [Continuing and Compelling Business Use,]{.underline}
    below.

**REFERENCES:**

7 CFR 2.25, Delegations of Authority, Chief Information Officer

DR 3300-001, Telecommunications & Internet Services and Use, March 23,
1999

NFC Bulletin TELE 02-2, Telephone and Utilities Maintenance System
(TUMS), October 1, 2002

NFC Procedures, Telephone Vendors System (TELE), Title II, Chapter 3,
Section 3, November 2001

**SPECIFIC ISSUES**:

[Prohibition on Using Purchase Cards or Convenience Checks To Acquire
Covered Telecommunications]{.underline}. Neither the purchase card nor
the convenience check may be used to purchase or to pay for covered
telecommunications resources.

[Revocation of Delegated Authority]{.underline}. Cardholder authority to
purchase covered telecommunications resources using purchase cards or
convenience checks is hereby revoked as of the effective date of this
Advisory.

[Acquisition of Covered Telecommunications Resources]{.underline}.
Covered telecommunications resources shall be requested through agency
Telecommunication Mission Area Control Officers (TMACO) or Dedicated
Agency Representatives (DAR) and acquired in accordance with DR
3300-001, procurement regulations, and agency procedures. The FTS2001
GSA contract offers favorable pricing for telecommunications services.
More information about FTS 2001 is provided in Attachment A. Questions
about acquiring telecommunications should be directed to the agency
TMACO or to the DAR.

[Payment for Covered Telecommunications Resources]{.underline}. Agencies
will use the Telephone Vendors System (TELE), the Purchase Order System
(PRCH), or Federal Telephone System Payments (FTSP), as appropriate, to
establish payment for all charges for covered

AGAR Advisory 58A Page 3 of 4

telecommunications resources. TELE and FTSP are used to pay for
recurring telecommunications services, such as user charges, toll
charges, or monthly charges for Internet access or cell phone service.
PRCH is used for purchases through a contract vehicle; e.g., purchases
of telecommunications equipment. Use the online Telephone and Utilities
Maintenance System (TUMS) to set up accounts for telecommunications

services in TELE or contact your Designated Agency Representative (DAR)
to set up accounts for toll charges or services paid through FTSP.

Invoices received at the National Finance Center (NFC) are processed in
TELE within 3 days and scheduled for payment provided: a) the account is
set-up correctly and b) the invoice passes the system edits designed to
detect duplicate and/or erroneous charges. Payment occurs 10 days before
the invoice due date.

[Emergencies]{.underline}. Telecommunications resources purchased to
respond to emergencies are not covered telecommunications resources.
Agencies may use the purchase card or convenience checks to acquire
telecommunications resources for emergencies. However, agencies that use
the card or checks for emergency telecommunications purchases must
justify each purchase by demonstrating that an emergency existed and
that the purchase was necessitated by the emergency. Within 15 business
days after the purchase, agencies that used the purchase card or
convenience checks to obtain telecommunications resources on an
emergency basis shall notify the ACIO for Telecommunications.

[Continuing and Compelling Business Use]{.underline}. Purchases of
telecommunications resources that meet continuing and compelling
business requirements as determined by the ACIO for Telecommunications,
are not covered telecommunications resources. Agencies that believe they
have a continuing [and]{.underline} compelling business reason for using
the purchase card or convenience checks to purchase telecommunications
resources should submit a written request to the ACIO for a blanket
waiver. Once submitted, the ACIO shall have 15 days to review and
approve the request.

If you have questions or comments regarding this advisory, please
contact Joseph Daragan by phone ((202) 720-5729), fax ((202) 720-8972),
or e-mail
([[joe.daragan@usda.gov).]{.underline}](mailto:(Joseph_Daragan@usda.gov).)

This AGAR Advisory will appear on the USDA World Wide Web site at the
following URL: <http://www.usda.gov/procurement/policy/advisories.html>.

EFFECTIVE DATE: This revised advisory is effective from December 18,
2003 until the revision to DR 5013-6 is issued.

**\[END\]**

AGAR Advisory 58A Page 4 of 4

### FTS 2001

Additional information:

Due to favorable pricing, another option for telecommunication purchases
is GSA's FTS2001 contract. USDA agencies go through their agency
specific Telecommunication Mission Area Control Officer (TMACO) or
Dedicated Agency Representative (DAR) to order FTS2001 services. FTS2001
charges currently fall under 2332 (FTS monthly charges).

The FTS2001 program, offered to the Federal Government and other
authorized users, provides worldwide telecommunications solutions,
including voice, data, wireless, and video. Flexibility is built into
the program to give customers access to new technologies as they become
commercially available.

**Contractors:**

Sprint Communications

MCI

**Geographic Coverage:** Worldwide

**Benefits**

Telecommunications solutions focused on customer missions

Broad range of technology products and services

Smarter, better connected Government

Substantial cost savings

Full service contracts in-place and ready to use

Customized and Comprehensive International services

Wide range of support services, including state-of-the-art ordering,
billing, and trouble handling

No up-front payments required

**Services**\
Voice\
Frame Relay\
Data\
ATM\
Toll Free Service (800)\
Internet Access\
Caller Billed Services (900)\
Managed Network Services\
Dedicated Transmission Service

Attachment A Page 1

Prepaid Phone Cards\
Video Teleconferencing

Paging\
Network Security Services\
Management and Operations Services\
Internet Protocol Internetworking Service

Attachment A Page 2