## Change Request Number: Date Received: 3/22/04

**Title:** Simplified Purchase Method

# **Name:** Mena Buster

**Routing Symbol**: ASU-110

**Phone**: 7-3249

**Policy OR Guidance OR Clauses:** Guidance

**Section/Text Location Affected:** T3.2.2.5

**Summary of Change**: To update purchase card guidance

**Reason for Change**: To comply with commitment made by Agency to GAO
and OMB

**Development, Review, and/or Concurrence**: ASU-110, Regions/Centers,
ARC

**Target Audience**: Purchase Cardholders, Approving Officials, Agency
Program Coordinators and Alternates in regions/centers and headquarters,
field organizations in all lines of business

**Potential Links within FAST for the Change**: N/A

**Attachments**: Attached as a separate document

### Briefing Planned: None

**ASAG Responsibilities: None**

+------+------------------------------------------------------+-------+
|      | Issue Date (revision): April 2004 (rev. 14)          |       |
+------+------------------------------------------------------+-------+
| [    | ###### Topics in the Section                         | [Pa   |
| Sect |                                                      | ge]{. |
| ion] |                                                      | under |
| {.un |                                                      | line} |
| derl |                                                      |       |
| ine} |                                                      |       |
+------+------------------------------------------------------+-------+
| *    | **Simplified Purchasing**                            | 1     |
| *A** |                                                      |       |
+------+------------------------------------------------------+-------+
| 1    | Purchase Card ~(Revised\ 01/2004)~                   | 1     |
+------+------------------------------------------------------+-------+
| 2    | Evaluations and Monitoring ~(Added\ 01/2004)~        | 9     |
+------+------------------------------------------------------+-------+
| 3    | Reserved ~(Revised\ 01/2003)~                        | 9     |
+------+------------------------------------------------------+-------+
| 4    | Credit Card Checks ~(Revised\ 10/2003)~              | 9     |
+------+------------------------------------------------------+-------+
| 5    | Blanket Purchase Agreement (BPA)                     | 14    |
+------+------------------------------------------------------+-------+
| 6    | Purchase Orders ~(Revised\ 10/2003)~                 | 15    |
+------+------------------------------------------------------+-------+
| 7    | Considerations for Restricted Purchases              | 17    |
+------+------------------------------------------------------+-------+
| *    | **Clauses**                                          | 18    |
| *B** |                                                      |       |
+------+------------------------------------------------------+-------+
| *    | **Forms**                                            | 18    |
| *C** |                                                      |       |
+------+------------------------------------------------------+-------+
| *    | **Appendix** ~(Revised\ 01/2004)~                    | 18    |
| *D** |                                                      |       |
+------+------------------------------------------------------+-------+

**A. Simplified Purchasing**

**1. Purchase Card** ~(Revised\ 01/2004~

a\. The FAA purchase card i.e., SmartPay Card, is the internationally
accepted Mastercard credit card. The purchase card is issued through
General Services Administration (GSA) contract with a credit card bank,
e.g., Bank of America. FAA employees who receive training and a
Delegation of Purchasing Authority (DPA) are authorized to use the card,
within the specified dollar limits, to acquire products and services.
~(Revised\ 07/2003)~

b\. GSA is responsible for both administering the contract and dealing
with the day-to-day operations of the Government-wide Purchase Card
Program. The GSA Contracting Officer is the only individual authorized
to alter the terms and conditions of the contract. Copies of the
contract, GS-23F-980004, may be obtained from the following address:
General Services Administration, Federal Supply Service, Services
Acquisition Center FCXST, Washington D.C. 20406. The address of Bank of
America is: Bank of America; Government Card Services Unit (GCSU); P.O.
Box 1637; Norfolk, VA 23501-1637. The telephone number is 1-800-472-1424
or call collect to 1-757-441-4124 if outside the United States.
~(Revised\ 07/2003)~

c\. The FAA purchase card is intended to streamline procurement and
payment procedures and reduce the administrative burden associated with
traditional and emergency purchasing of products and services under the
commercial and simplified acquisition procedures. The purchase card is
used to pay for authorized government purchases and should be the
"primary purchasing method" when vendors accept credit cards for
commercial and simplified purchases, unless otherwise prohibited (See
paragraph 1.f (4) Prohibited Purchases) ~(Revised\ 07/2003)~

d\. The card issuing bank, Bank of America, has established an
authorization process whereby the vendor checks via a telecommunications
system each time the purchase card is used. This authorization ensures
that the purchase is within the limits established for each individual
account.

e\. *Delegations of Purchasing Authority*. ~(Revised\ 01/2004)~

\(1\) The Chief of the Contracting Office (COCO) in the regions,
centers, and headquarters formally issues, in writing, a delegation of
authority to a person(s) to act as the Agency Program Coordinator (APC)
for their contracting office. The responsibilities of the APC include
accountability for the following:

\(a\) ensuring that all approving officials and cardholders receive
training on validation requirements (the GSA web-based training may be
used) and comply;

\(b\) submitting approved purchase card forms to the card-issuing bank
or electronically transmitting through the Electronic Account Government
Ledger System (EAGLS);

\(c\) submitting changes for individual cardholder single purchase or
monthly purchase limits to the card issuing bank in response to a
written request from the approving official;

\(d\) submitting account cancellations to the card-issuing bank;

\(e\) working with the lines of business towards obtaining a desirable
ratio of cardholders to approving official; ~(Revised\ 01/2004)~

\(f\) establishing and maintaining a tracking system to monitor initial
and/or refresher training of purchase cardholders and approving
officials (See Appendix 4); ~(Revised\ 01/2004)~

\(g\) ensuring that the cardholder receives the proper training on the
policy and procedures for the use of the card, including cardholder
accountability for the following: ~(Revised\ 01/2004)~

\(i\) prior approval of card purchases (e.g. the cardholder obtains and
documents the approval of the approving official and checks the funds
available balance before the purchase is made; or the cardholder obtains
the necessary written justification and approvals from the affected
manager required to purchase or rent a restricted item). The cardholder
will obtain written confirmation of any verbal approval within 10 days
of receiving the verbal approval;

\(ii\) submission of receipts to the approving official;

\(iii\) designation of accounting classification code data (including
correction of default object class code);

\(iv\) segregation of duties -- key duties and responsibilities in
authorizing, processing/recording, certifying availability of funds, and
reviewing official agency transactions should be separated among
individuals (this includes the individual who requests and documents the
purchase cannot be the same individual who approves the purchase);

\(v\) completion of the required property management forms and
submission to the applicable property management organization; and

\(vi\) identification and reporting of disputed items to the applicable
accounting office.

\(h\) ensuring that approving officials receive proper training on the
policy and procedures for the use of the card, including approving
official accountability for the following: ~(Revised\ 01/2004)~

\(i\) segregation of duties requirements -- key duties and
responsibilities in authorizing, processing/recording, certifying
availability of funds, and reviewing official agency transactions should
be separated among individuals (this includes the individual who
requests and documents the purchase cannot be the same individual who
approves the purchase);

\(ii\) validation of approved card purchases (to include review for
potential split purchases);

\(iii\) validation of accounting classification code data (to include
correction of default object class code);

\(iv\) reporting fraudulent or improper use of the card to the APC;

\(i\) Ensuring that all new and existing cardholders and approving
officials sign a statement indicating that they have read, understand
and agree to follow all local and national guidance covered in the
purchase card training selected by a designated representative of the
COCO. ~(Revised\ 01/2004)~

\(2\) DPAs are formally issued, in writing, to non-warranted individuals
in the requiring organizations by the COCO or designee. The delegation
authorizes the use of the purchase card, and indicates a single purchase
limit that the cardholder must not exceed. This means that cardholders
must not split purchase card purchases in order to exceed the authorized
single purchase limit. . ~(Revised\ 01/2004)~

\(3\) Cardholders are individual FAA employees within the requiring
organizations who have received a DPA from the COCO or designee granting
the use of the purchase card, after being trained on the proper use,
financial control records, and property management restrictions of the
purchase card. APCs and/or their alternates cannot be purchase card
cardholders. . ~(Revised\ 01/2004)~

\(4\) Each purchase cardholder must safeguard the card and account
number. Only the individual whose name appears on the card is authorized
to use it. Allowing someone other than the cardholder to use the card is
considered an unauthorized purchase action that is subject to
disciplinary action as outlined in Federal Aviation Personnel Manual
(FAPM) Letter 2632 and the Human Resources Operating Instructions (HROI)
Table of Penalties. ~(Revised\ 01/2004)~

\(5\) Each cardholder is authorized to use and maintain only one
purchase card. Cardholders will not be issued nor allowed to maintain
multiple purchase cards for any purpose (including the use of more than
one purchase card to monitor specific accounting classification code
spending). The APC shall cancel all multiple purchase card accounts.

\(6\) Approving officials are individuals within the requiring
organizations who receive the same type of training as the cardholder on
the proper use, financial control, and property management restrictions
of the purchase card. The approving official approves purchases in
advance and monitors the activities of the cardholders to ensure that
purchases made by the cardholders are within applicable policies and
procedures. The approving official is normally the cardholder's
immediate supervisor or a higher-level official. If an approving
official is also a purchase cardholder, their supervisor or a
higher-level official shall act as their approving official to avoid the
possibility of an approving official approving their own purchases.

\(7\) Both approving officials and cardholders must fully understand
their purchase card responsibilities and be properly trained in
procurement policies and restrictions, finance requirements, and
internal procedures, as well as property management and control, as
follows: . ~(Revised\ 01/2004)~

\(a\) *Procurement training.* At a minimum, this should address labor
laws, required sources of supply, conflicts of interest, and
socio-economic policies of the FAA.

\(b\) *Finance training.* This should address the requirements for
safekeeping of purchase cards and account numbers; funds availability;
fund certification; retention of receipts for charges and credits for
purchases, returns and disputed items; recordkeeping for purchase card
purchases, and timely validation of monthly statements of account.

\(c\) *Property control training*. It is essential that purchases of
non-expendable property be reported to the appropriate property control
manager/custodian for inclusion in the property inventory and management
system in accordance with FAA Order 4650.21C

\(8\) All cardholders and approving officials will take refresher
purchase card training every two years from the anniversary date of the
last or initial training. Refresher training consists of reading the
Purchase Card User's Guide located on the FAA Intranet at
[http://faapcard.amc.faa.gov](http://faapcard.amc.faa.gov/). Cardholders
and approving officials must select their appropriate region, center or
headquarters icon, complete the certification after they read the guide,
and then electronically submit this data to their APC. The refresher
training will include key purchasing requirements such as documentation,
segregation of duties, purchasing of high cost and/or sensitive items,
and any recent policy changes. ~(Revised\ 01/2004)~

f\. *Administrative Matters.* . ~(Revised\ 01/2004)~

\(1\) *GSA Purchase Limitations*. The following purchase control
limitations have been established by the GSA contract for each
cardholder:

\(a\) *Single Purchase Limit*. Approving officials will determine and
review on a quarterly basis (i.e. March, June, September, December) the
cardholder's single purchase limit to ensure that the limit coincides
with actual need. Cardholder accounts that are not used within a
one-year period will be cancelled, unless extended periods are
authorized by the COCO. **According to the GSA contract, the single
purchase limits may not exceed \$100,000**. Within FAA, each COCO
retains the authority to approve maximum purchase card single purchase
limits for cardholders. (See paragraph 1.f (2) Agency Purchase
Limitations). ~(Revised\ 01/2004)~

\(b\) *Billing Cycle Purchase Limit*. The approving officials will
assign the cardholder a billing cycle limit (i.e. monthly limit).
Purchase limits may be assigned in increments of \$100 up to \$999,900.
This purchase limit will apply to the cardholder's monthly billing
cycle. ~(Revised\ 10/2003)~

\(c\) *Merchant Activity Code*. The APC will review the codes and will
restrict specific categories to reduce the risk of fraud or misuse. All
cardholders will use their purchase card in such a way so as not to
discredit in any manner the Federal Government. ~(Revised\ 10/2003)~

\(2\) *Agency Purchase Limitations*. The COCO at each region, center,
and headquarters (ASU-100) approves the maximum dollar level for DPAs to
non-warranted individuals. Warranted contracting officers may make
purchases up to \$100,000 using the purchase card (if within their
warrant limits). . ~(Revised\ 01/2004)~

\(3\) *Documentation*. All purchase card transactions made by a
cardholder must be supported by a purchase approval, a certification of
funds availability (see paragraph 1.h Availability of Appropriations), a
sales slip or invoice, telephone log (for telephone purchases), check
for availability from a mandatory source (see paragraph 1.g Selecting
Potential Sources); if mandatory source is not available, then
documentation of best value (i.e. contact 2 or more vendors); and a
receiving report. Best value regarding purchase card use includes fair
and reasonable price, functional specifications, delivery capability and
warranty. The use of an individual procurement request (PR) form for
each purchase card transaction is optional. All purchase card
documentation shall be retained by the purchase cardholder, for six
years and three months from the date of purchase. Cardholders, who
transfer to another office or terminate employment with the FAA for any
reason, will notify the approving official and provide all purchase card
documentation to them before transfer to a new office or separation from
the Agency. ~(Revised\ 10/2003)~

\(4\) *Prohibited Purchases.* The COCO at each acquisition office has
the authority to add other limitations; therefore, cardholders should
contact the APC for additional information. . ~(Revised\ 01/2004)~

\(a\) The GSA contract stipulates that the purchase card may not be used
for the following:

\(i\) *Rental or lease of land or buildings*. The purchase card may be
used to purchase short-term commercial conference and meeting room
space.

\(ii\) Cash advances, including money orders

\(iii\) Telephone services controlled by the GSA or the local Office of
Information Services or Regional Communications Office. However,
telephone equipment may be purchased using the card.
~(Revised\ 01/2004)~

\(b\) The use of the purchase card for personal purchases or as
identification when writing personal checks is prohibited.
~(Revised\ 10/2003)~

\(c\) The use of appropriated funds for the following purposes is
prohibited (For additional guidance concerning these prohibitions,
consult legal counsel): ~(Revised\ 10/2003)~

\(i\) Food items for meetings and conventions (except that a reasonable
amount may be expended for light refreshments at award ceremonies);

\(ii\) Gifts to include store gift cards/certificates, office retirement

\(iii\) Membership fees for individual employees (except the Agency may
purchase membership in a society or association in its own name);
~(Revised\ 01/2004)~

\(iv\) Personal expenses and furnishings, this includes clothing,
decorations, and food for personal use or consumption except as
authorized by Human Resources Policy Manual (HRPM) 9.2. Note that the
use of the purchase card to purchase an item of clothing that is
required in order to perform job duties or functions is permitted, e.g.
the purchase of a pair of safety shoes or a uniform. This purchase
should be coordinated with the procurement office;

\(v\) Drinking water, except when a duly constituted public health
authority pronounces the ordinary drinking water to be unsafe for human
consumption at the site;

(vi) Subscriptions to publications or magazines, not relating to
     official duties;

(vii) Rental of aircraft by persons not in aircraft related positions;

\(viii\) Fans, air conditioning and cooling equipment, space heaters and
heating equipment, except as properly installed for general use in
connection with the maintenance and operations requirements for the
site;

\(ix\) Water coolers, or vacuum cleaners and other household appliances,
except as requisitioned for general use by the authorities charged with
building maintenance and equipment;

\(d\) The purchase card cannot be used to purchase real property (land,
buildings, or other structures). See Real Property Guidance, Chapter 5,
Section II.A.20 for exceptions. ~(Added\ 01/2004)~

\(e\) Use of the purchase card, in lieu of the travel charge card, for
travel-related expenses is prohibited.

> .

\(5\) *Restricted Purchases*. Federal funds used to purchase, lease, or
rent plasma displays or personal data assistants (PDAs) including
BlackBerries, require written justification from the affected associate
or assistant administrator. The justification will address the need and
cost-effectiveness of the purchase. The acquisition of high cost, high
quantity items (e.g. computer equipment, hand-held radios, snowmobiles
or any item over the amount of \$500.00) or sensitive items should be
centrally purchased within the region, center or headquarters line of
business (LOB) to take advantage of the economies of scale and equipment
standardization and be in accordance with FAA Order 4650.21C.
~(Revised\ 10/2003)~

\(6\) *Third Party On-line* Payments. Cardholders are required to
immediately notify the approving official when they become aware that a
purchase card purchase will be processed by a third party on-line
payment company. Also cardholders must provide the approving official a
copy of all documentation that supports the on-line payment transaction
within five days of item receipt. ~(Added\ 10/2003)~

g\. *Selecting Potential Sources.* ~(Revised\ 01/2004)~

\(1\) Each cardholder must determine if the product or service is
available through the mandatory sources of supply (Federal Prison
Industries (UNICOR), National Industries for the Blind (NIB) or National
Industries for the Severely Handicapped (NISH)) before making a purchase
from the open market. However a written waiver from UNICOR is not
required to purchase items up to \$2500.00 from outside sources (See
T3.8.4, A.2 Mandatory Government Sources). ~(Revised\ 01/2004)~

\(2\) The AMS stipulates that small businesses and small businesses
owned and controlled by socially and economically disadvantaged
individuals will be given reasonable opportunities to provide products
and services purchased by the FAA; therefore, cardholders should
purchase from these sources whenever possible except as required in
section T3.8.4, A.2 Mandatory Government Sources.

\(3\) An appropriate number of vendors should be contacted to ensure
quality products and services are delivered in a timely manner at the
best value to the FAA consistent with the AMS policy 3.2.2.5.

h\. *Availability of Appropriations.* The FAA shall comply with the
Anti-Deficiency Act (31 U.S.C. 1341) and other fiscal laws. Restrictions
on the purposes for which appropriated funds may be used come from a
variety of sources, including the U.S. Constitution, appropriation acts,
and decisions of the Comptroller General. Funds certification officers
must provide a written allocation of funds availability. This can be
done on a quarterly, semi-annual or annual basis. Cardholders are
responsible for maintaining a revolving balance of available funds as
each item is purchased. ~(Revised\ 07/2003)~

i\. *Acquisition of Training Services.* The FAA purchase card is
encouraged for use to the maximum extent possible to acquire training by
appropriate training coordinators, if they are delegated cardholders. It
is important to ensure that proper coordination of training requirements
has taken place prior to training being purchased, e.g. completed
training checklist, needs assessment, and whether or not the training is
being purchased by a training coordinator or not. ~(Revised\ 07/2003)~

j\. *Tax Exemption.* At the time of the purchase, cardholders should
advise the merchant that the purchase is for official U.S. Government
purposes and therefore is not subject to state or local tax. If the
vendor wants to clarify this, the back of the card includes an 800
number that may be called for verification. Exceptions do exist for
certain state taxes in certain states, i.e., New Mexico. For this
reason, cardholders should contact legal counsel regarding applicability
of any exemptions or other issues related to state or local taxes for
specific information about excepted states.

k\. *Validation of Purchases - Cardholder.* Each cardholder is
responsible for validating all card purchases and credit transactions
itemized on the monthly statement to the accountable documents; i.e.,
the cardholder's copy of sales slips, credit slips, and telephone order
forms. These accountable documents must be verified to the cardholder
statement to make sure that itemized purchase amounts are valid
obligations and all credits for returned or disputed amounts are
reflected on the monthly statement. If the cardholder's statement
reflects charges for purchases not received, the amounts in question
should be disputed (See paragraph l. Deficiencies/Disputes/Damaged
Equipment). Cardholders should also ensure that purchases on their
statement include no sales tax. If sales tax is included, the tax should
be disputed with the vendor. ~(Revised\ 07/2003)~

\(1\) *Approving Official*. The approving official is responsible for
ensuring that all cardholders validate purchases and credits itemized on
the statement and that all purchases and credits include the proper
accounting classification data. Approving officials must verify that all
purchases were authorized and that copies of sales slips, credit slips,
and telephone order forms are attached. The approving official must also
notify the APC of any unauthorized use of the card.

\(2\) *Finance Office*. Finance offices receive monthly finance office
reports from the card-issuing bank that reflects summary totals of all
purchases and credits of each cardholder. The finance office report
represents the invoice from the bank and should be date stamped when
received. The finance office is responsible for certifying for payment
all authorized card purchases.

l\. *Deficiencies/Disputes/Damaged Equipment* ~(Revised\ 07/2003)~

\(1\) If the cardholder finds a discrepancy that is the result of item
shortage, receipt of a defective or damaged item, or receipt of the
wrong item, the first step is to contact the vendor to seek resolution.
The cardholder should request a replacement item or a credit from the
vendor. The credit will appear on the cardholder's account statement for
the following month. The cardholder should return the defective, damaged
or erroneous item to the vendor within 60 days of receipt.

\(2\) If the cardholder and vendor cannot reach an agreement on
resolution of the discrepancy, then the cardholder must file a dispute
form with the bank to formally dispute the purchase. The bank will
credit the purchase cardholder's account until the dispute is resolved.

m\. *Lost or Stolen Cards.* ~(Revised\ 10/2003)~

\(1\) *Reporting Lost or Stolen Cards*. The cardholder must report
immediately the loss or theft of the purchase card to the APC, the
approving official and the card-issuing bank in order to avoid liability
for unauthorized purchases on the card. The necessary information to
report to the card-issuing bank includes the cardholder's complete name,
card number, and purchases made on the date of loss or theft. In the
event of theft, the cardholder should also provide the bank the date
that the theft was reported to the police.

\(2\) *Card Re-issuance*. The card-issuing bank will issue a new card to
the cardholder within two working days from the time that the loss or
theft is reported. A cardholder who reports more than one incident of
loss or theft within a 12-month period will require authorization from
the COCO in order to have another card re-issued. ~(Revised\ 10/2003)~

n\. *Accounting Classification Code Adjustments.* Each cardholder has a
primary use or "default" accounting classification code based on the
primary use of the card, i.e., whatever the office is primarily
purchasing. For example, Flight Standards offices may have a primary use
of the card for aircraft rental. The card may be used for purchases
other than the "primary use" purpose; however, the action will require a
different accounting classification code assignment. All cardholders and
approving officials are required to review the monthly bank statements
upon receipt each month. The cardholder is required to assign the
correct object class code for each item purchased. The approving
official is required to review the statement for accuracy, the potential
for split purchases, and approve each individual transaction. ~(~

o\. *Cardholder Non-Compliance*. The purchase card privileges of any
cardholder found to be non-compliant with purchase card guidance twice
in a six-month period will be suspended for six months. The cardholder's
privileges may be restored upon completion of remedial training or
permanently revoked. The purchase card is considered government
property. The FAA will comply with the FAPM Letter 2632 Code of Conduct
& Discipline Order, HRPM 4.1 on Standards of Conduct, and HROI Table of
Penalties for any purchase cardholder, approving official, supervisor,
and manager misuse and/or fraud of government property. .
~(Revised\ 01/2004)~

p\. *National Purchase Card Oversight.* The FAA has established the
positions of National Purchase Card Coordinator (NPC) and National
Organization Reporting Coordinator (NORC). The purpose of the NPC is to
provide national program monitoring and oversight of the Agency's
purchase card program. The purpose of the NORC is to enhance operating
procedures by coordinating internal and external reports.
~(Added\ 01/2004)~

\(1\) Minimum training requirements for the National Purchase Card
Coordinator, Agency Program Coordinator and alternate Agency Program
Coordinator may include the following:

(a) GSA SMARTPAY training (on-line);

(b) Electronic Account Government Ledger System (EAGLS) training;

(c) Simplified Acquisition Procedures Course;

(d) Appropriation Law Course

**2. Evaluations and Monitoring** ~(Added\ 01/2004)~

a\. Past external evaluation of the Purchase Card Program identified
weak controls across the FAA and inadequate management oversight.
Managers are required to make sure that purchase card internal controls
are in place; and that supervisors and their staff are accountable for
any misuse of the purchase card.

b\. The NPC provides national program monitoring and oversight. A
checklist of internal controls monitored by the NPC and the corrective
action guide is contained in Appendix 6.

c\. The APC provides monitoring and oversight of their responsibilities
identified in Section 1.e(1). The checklist guide of items monitored by
the APC is contained in Appendix 5.

d\. The approving official monitors the activities of the cardholder to
ensure that purchases made by the cardholder are within the requirements
of the purchase card procedures.

**3. Reserved**

**4.** **Credit Card Checks**

a\. *Training*. Both the credit card check approving official and check
writer (prior to approving or making a purchase) require training. The
approving official should contact the regional Agency Program
Coordinator (APC) to schedule training.

b\. *Credit Card Check Usage*. A check can be issued when the service or
goods for which payment is being made is operationally critical, cost
effective and consistent with FAA procurement policies. Credit card
checks are to be issued only in \"exceptional situations\" when the use
of payment mechanisms such as an automated clearinghouse, or a
government purchase card are not accepted. Specific examples of
appropriate credit card check usage are found in Appendix 1.
~(Revised\ 07/2003)~

\(1\) Credit card checks may only be used:

\(a\) Where the political, financial, or communications infrastructure
does not support payment by EFT in a foreign country;

\(b\) Where the payment is to a recipient within an area designated by
the President or an authorized agency administrator as a disaster area;

\(c\) Where paying by EFT would jeopardize military or law enforcement
operations or national security interests;

\(d\) Where a cost-benefit analysis shows that making non-recurring
payments by EFT are not justified;

\(e\) Where an agency's need for goods and services is of such unusual
and compelling urgency that the Government would be seriously injured
unless payment is made by a method other than EFT; or

\(f\) When there is only one source for goods or services and the
Government would be seriously injured unless payment is made by a method
other than EFT.

\(2\) Credit Card checks may not be used for:

\(a\) The issuance of travel advances when the government-issued travel
charge card is revoked or cancelled due to delinquent payment or for
personal reasons;

\(b\) Cash.

\(c\) Travel-related expenses.

c\. *Authorization Level*. ~(Revised\ 07/2003)~

\(1\) Purchases using credit card checks must be approved in advance by
the second level approving official who approves purchase card
purchases. The credit card check-approving official must initial the
check register to verify that the payee does not accept the purchase
cards and that the issuance of the credit card check meets at least one
of the requirements listed above under the section 4.b Credit Card Check
Usage.

\(2\) If the approving official is not located at the same site as the
person authorized to issue the check (check writer), verbal approval,
followed by written documentation, is satisfactory. A copy of the
written documentation authorizing the purchase must be provided to the
check writer. A copy of the Credit Card Check Approval Form is included
as Appendix 2. If the second level approving official is not readily
available, another individual at that level or higher may approve the
use of the check, provided that he/she can attest that the need clearly
follows the guidelines stated above.

\(3\) If the check writer is providing the check to another employee who
will actually be giving the check to the vendor/merchant/individual, and
the latter employee is in a different line of business than the check
writer, then the approving official will be the second level approving
official of the employee paying the vendor/merchant/individual rather
than the secondlevel approving official of the check writer.

d\. *Issuing a Credit Card Check*.

\(1\) Credit card checks are carbon checks. The following information
should be entered in the appropriate space on the check and must be
written, printed in ink or typed. Except as otherwise authorized, checks
shall **[only]{.underline}** be used for officially approved purchases
and issued **[only]{.underline}** by the individual whose name appears
on the check.

\(2\) *Date*: Enter the date on which the credit card check was issued
to vendor for purchase. The date can be spelled out (e.g., August 27,
1999) or written (8/27/99). Do not predate or postdate a credit card
check.

\(3\) *Pay to the Order of*: Enter the name of the payee. (Individuals
may not issue credit card checks payable to themselves.)

\(4\) *Amount.* The dollar amount of the credit card check must be
written and spelled out in the space provided, (e.g., "\$126.39" and
spelled out as "one hundred and twenty-six and 39/100," followed by a
horizontal line out to the end of the space provided).

\(5\) *Memo*. (additional information). Enter information pertinent to
the purchase, e.g., radar parts, pavement repair, emergency plumbing.

\(6\) *Authorized Signature*. Sign in the space provided. Your signature
should be in the same format as the name printed on the credit card
check, (e.g., if first, middle, and last names are spelled out in full
rather than initials being used, your signed name must also be spelled
out in full).

e\. *Spending Limitation*. ~(Revised\ 07/2003)~

\(1\) Credit card checks access the same single purchase and monthly
spending limits established by the lines of business (LOBs). The
established monthly limit will cover purchases made by both the purchase
card and the credit card checks. Approving officials will determine the
appropriate dollar amount of single purchases limits to be established
for each cardholder, however, each credit card check issued cannot
exceed \$2,500.

\(2\) A pre-established dollar "not to exceed" limit of \$2,500 will be
printed on the checks. Under no circumstances shall a check be written
over that amount.

f\. *Knowing Your Balance*. Cleared credit card checks are deducted from
the monthly limit when they actually clear the bank, not when they are
written. Monthly limits are renewed on the 20^th^ of each month. You are
responsible for tracking your individual available balance and
reconciling cleared credit card checks. Remember any transactions made
with your purchase card will also be counted toward your monthly
balance. The following is important.

\(1\) Allow time for each credit card check to clear, which may overlap
billing cycles;

\(2\) Ensure the monthly limit is sufficient to cover written checks;
and

\(3\) At the beginning of each billing cycle, credit card checks that
appear on the statement as cleared should be deducted from your balance.

*IMPORTANT NOTE*: This account is different from your personal checking
account because unused balances do not accumulate. Exceeding your limit
will result in credit card checks being returned for insufficient funds.

g\. *Safeguarding and Accountability of Blank Credit Card Checks*.

\(1\) For security purposes, the following items are preprinted on the
face of all credit card checks:

\(a\) Name and work address of the authorized credit card check holder;

\(b\) Legend: NOT VALID FOR MORE THAN THE ESTABLISHED SINGLE PURCHASE
LIMIT;

\(2\) Credit card checks shall be safeguarded in accordance with FAA
Order 1600.6, FAA Security Risk Management Program. When not in use,
checks are to be kept in a secured area, i.e., locked safe or cabinet or
another secured environment approved by the servicing security element
to protect them from being stolen or misused.

i\. *Staying Within Your Purchase Limit.* It is imperative that single
purchase and monthly limits not be exceeded.

j\. *Insufficient Check Fees*. The financial institution does not charge
a fee for insufficient checks, however, the vendor may charge a fee.
This fee may vary depending upon the vendor.

k\. *Liability of Fraudulent Use*.

\(1\) The agency is responsible for all proper charges made with the
purchase card or credit card check (by a cardholder) but is not liable
for any unauthorized use. Unauthorized use means the use of an
account/card by a person other than the cardholder who does not have
actual, implied, or apparent authority for such use and from which the
cardholder receives no benefit. The cardholder and the designated
billing office is responsible for notifying the financial institution
when possible unauthorized use of the credit card checks has occurred.

\(2\) If unauthorized use has occurred, the liability of the cardholder
shall not exceed the lesser of \$50 or the amount of money, property,
labor, or services obtained before notification to the financial
institution. Notification, either by telephone or in writing, must be
given to the financial institution with pertinent information regarding
the unauthorized use. The financial institution will not determine
whether a purchase is authorized or made during official government
business.

l\. *Employee's Liability of Fraudulent Use*. Disciplinary actions for
theft, fraud, or intentional misuse of credit card checks by an employee
will be imposed based on the applicable penalty(s) outlined in FAPM
LTR 2632, Conduct and Discipline, as well as penalties and/or legal
charges brought upon by the financial institution. ~(Revised\ 10/2003)~

m\. *Reporting Lost or Stolen Purchase Card and Credit Card Checks*. To
safeguard against intentional misuse, lost or stolen purchase cards and
credit card checks must promptly be reported.

n\. *Destroying Purchase Cards and Credit Card Checks*.

\(1\) When an account has been cancelled, all related purchase cards and
unused check numbers should be recorded and then immediately destroyed.
All valid written, unused, and lost/stolen check numbers are to be
reported to the financial institution. The financial institution will
place stop payment on invalid checks.

\(2\) Once the financial institution has been notified to cancel an
account, checks attempting to post after the closure date will be
declined. The financial institution security associates and bank
representatives will investigate each check to determine if floating
checks were written by the account holder and valid for payment. If the
check is valid, the checks will post to the new account number, if not,
the checks will be returned for non-payment and further investigated by
the financial institution.

o\. *Maintaining Your Credit Card Check Register*. A credit card check
register should be maintained to record each credit card check
transaction. The credit card check number, date issued, the payee, a
description of the purchase, the emergency credit card check amount, and
the account fee can be entered. A copy of the Credit Card Check Register
is included as Appendix 3.

p\. *Maintaining Receipts and Record Retention*. The carbon copy of the
check, the merchandise receipt and invoice must be turned in for each
purchase and matched against the credit card check register. Records
should be retained in the office and then archived according to the
agency's Vital Record and Retention Manual. Records include the monthly
statement of account, your credit card check register, receipts, and all
supporting documentation.

q\. *Account Fees*. The fees associated with writing a credit card check
will be charged back to the individual check writer's LOB and will
appear on the monthly statement.

r\. *Billing Statement*. The monthly purchase card and credit card check
statement will show the merchant/vendor name, the amount of the check,
and the check number of all cleared checks.

s\. *Reconciling Your Account*. The monthly statement must be
cross-checked with your credit card check register, carbon copy of the
check, receipt, invoice, and your internal log to ensure that the
register and statement amounts are the same. Any discrepancies must be
resolved immediately with the financial institution. Keep in mind that
cleared checks that may appear on the statement may be checks written
the prior month.

t\. *Returned Merchandise*:

\(1\) If there is a need to return an item to a vendor, do not accept
cash or a store credit made out to the check holder. If a refund is
issued in the form of store credit, it must be made out to the Federal
Aviation Administration and used for a future valid purchase.

\(2\) In the event a refund check is received, it must be forwarded to
the servicing accounting office for deposit within one business day. The
original accounting classification code should be provided to credit the
funds accurately.

u\. *Reporting Expenditure Data*. In order to determine the
effectiveness of the program, data will be required to monitor credit
card check usage.

**5. Blanket Purchase Agreement (BPA)**

a\. A BPA is a simplified method of filling anticipated repetitive needs
for products or services by establishing "charge accounts" with
qualified sources of products/services. It should be considered for use
when other purchase techniques such as a contract, credit card, and
purchase orders, are not available or appropriate. Contracting Officers
may establish BPAs for items of the same type concurrently with more
than one vendor. There is no maximum limitation established for BPAs,
however, if it is anticipated at the start that the total orders against
a BPA will exceed \$100,000 it will be subject to the public
announcement policy. In addition, any individual order against a BPA
exceeding \$100,000 would also be subject to the public announcement
policy.

b\. The following terms and conditions should be considered for BPAs:

\(1\) *Description of Agreement*. A statement that the vendor shall
furnish products or services, described in general terms, if and when
requested by the Contracting Officer, or the authorized representative,
during a specified period and within a stipulated aggregate amount, if
any.

\(2\) *Extent of Obligation*. A statement that the FAA is obligated only
to the extent of authorized purchases actually made under the BPA.

\(3\) *Purchase Limitation*. A statement that specifies the dollar
limitation for each individual purchase under the BPA.

\(4\) *Notice of Individuals Authorized to Purchase under the BPA*. The
Contracting Officer will furnish to the vendor a list of individuals
authorized to purchase under the BPA, identified either by title of
position or by name of individual, organizational component, and the
dollar limitation per purchase for each position title or individual.

\(5\) *Clauses*. The BPA should include any prescribed clauses
applicable to the dollar thresholds of particular order against the BPA,
i.e., Service Contract Act.

\(6\) *Delivery Tickets*. A requirement that all shipments under the
BPA, except subscriptions and other charges for newspapers, magazines,
or other periodicals, will be accompanied by delivery tickets or sales
slips with the following information as a minimum: name of contractor,
BPA number, date of purchase, purchase number, itemizes list of products
or services furnished, quantity, unit price, and extension of each item,
and date of delivery or shipment.

\(7\) *Invoices*. Invoices are to be submitted at least monthly.

c\. In keeping with the purpose of a BPA, a purchase request is not
required to be submitted for each purchase. The Contracting Officer, or
authorized user, may make purchases based upon an oral request or a
memorandum from an authorized requisitioner from the program/originating
office. Oral requests should be confirmed in writing by the
requisitioning office as a matter of record.

d\. Each person in a program office who is authorized to make purchases
under a BPA, should receive guidance from the contracting office on the
limitations of authority and responsibilities associated with using the
BPA. Whenever a change occurs which affects an authorized user of a BPA,
the program/originating office should notify the Contracting Officer and
request the BPA be modified to reflect the proper data.

e\. The Contracting Officer should review a sufficient random sample of
the BPA files at least annually to ensure that authorized procedures are
being followed. Only Contracting Officers or those persons designated by
the Contracting Officer may place purchases against a BPA. Any purchase
made by an unauthorized person, or any purchase placed against a BPA
which exceeds the authorized limitation, may be considered an
unauthorized procurement.

f\. In accordance with Office of Management and Budget (OMB) Circular
A-120, the same person may not place the call, receive supplies or
services, and authorize payment. The same person may perform two of the
functions, but not all three.

g\. A BPA is considered complete when purchases under it equal its total
dollar limitation or when the stated time period expires.

**6. Purchase Orders**

a\. The purchase order is a simplified form for ordering supplies and
services which allows the vendor to invoice using the same form.
Purchase orders should be issued on a fixed-price basis. An unpriced
purchase may be issued for supplies or services when it is impractical
to obtain pricing in advance of issuance of the purchase order.

\(1\) Purchase orders should contain the following information:

\(a\) Trade and prompt payment discounts that are offered;

\(b\) The quantity of supplies or services ordered;

\(c\) Inspection provisions; origin or destination;

\(d\) A determinable date by which delivery of supplies or performance
of services is required; and

\(e\) Information for use by Accounting should be requested by the
preparer of the purchase order as follows:

> \(i\) Vendor's SSN or taxpayer identification number (TIN);
>
> \(ii\) Vendor's business status as one of the following
> classifications:

\(A\) Individual/sole proprietorship;

\(B\) Corporation;

\(C\) Partnership; or

(D) Other (specify)

\(f\) The Contracting Officer's signature. Facsimile signatures may be
used in the production of purchase orders by automated methods.

\(2\) An unpriced purchase order may be appropriate when:

\(a\) It is impractical to obtain pricing in advance of issuance of the
purchase order; or

\(b\) The purchase is for repairs to equipment requiring disassembly to
determine the nature and extent of repairs; the material is available
from only one source and for which cost cannot be readily established;
or the order is for supplies or services for which prices are known to
be competitive but exact prices are not known (e.g. miscellaneous repair
parts, maintenance agreements).

\(3\) Unpriced purchase orders may be issued by using written purchase
orders or electronically. A realistic monetary limitation, either for
each line item or for the total order, should be placed on each unpriced
purchase order. The monetary limitation becomes an obligation subject to
adjustment when the firm price is established. The contracting office
should follow-up each order to ensure timely pricing. The Contracting
Officer or designated representative should review the invoice price
and, if reasonable, process the invoice for payment.

\(4\) The contracting officer should require written acceptance of a
purchase order when it is desired to consummate a binding contract
before the contractor undertakes performance.

\(5\) A purchase order may be modified. Each purchase order modification
should identify the order it modifies and should contain an appropriate
modification number. The Contracting Officer determines when it is
necessary to obtain a contractor's written acceptance of a purchase
order modification. Purchase orders may be modified by using:

\(a\) Standard Form 30, Amendment of Solicitation/Modification of
Contract;

\(b\) An agency-designed form or an automated format; or

\(c\) A purchase order form.

\(6\) *A purchase order may be terminated*. If the purchase order has
been accepted in writing by the contractor, the termination should be
processed in accordance with the termination clauses. If the purchase
order has not been accepted in writing by the contractor, the
Contracting Officer should notify the contractor in writing that the
purchase order has been canceled and request the contractor's acceptance
of the cancellation. If the contractor accepts the cancellation and does
not claim that costs were incurred, no further action is required. If
the contractor does not accept the cancellation or claims that costs
were incurred, the Contracting Officer should process the termination in
accordance with the termination clauses.

\(7\) The contracting officer may print on the purchase order form the
clauses they consider to be generally suitable for their purchases. The
following forms may be used for purchase orders:

\(a\) Optional form 347, Order for Supplies or Services;

\(b\) Optional form 348, Order for Supplies or Services
Schedule-Continuation; or

\(c\) Other agency generated or contractor provided forms.

\(8\) The contracting officer should obtain the corporate status
information of the vendor.

**7. Considerations For Restricted Purchases**

a\. This guidance is concerned with providing information and reference
points to assist FAA acquisition personnel or FAA requiring
organizations in ascertaining whether a particular item of equipment or
of service would constitute a permissible purchase using Federal funds.
There is no iron clad rule or list which can be readily developed which
would serve to delineate in each and every case whether a particular
purchase is permissible for Federal funding. However, the application of
common sense and the wise exercise of discretion, fortified by an
examination of appropriations laws and related decisions of the
Comptroller General, should fill the breach.

b\. The General Accounting Office (GAO) has enunciated a *"necessary
expense"* doctrine. This doctrine is described more fully in Volume I,
Second Edition, of "Principles of Federal Appropriations Law," issued by
GAO, Office of the General Counsel, dated July 1991. This publication
states, in part, that for an expenditure to be justified under the
necessary expense theory, it must meet certain tests, including, but not
confined to, the test that: "The expenditure must bear a logical
relationship to the appropriation sought to be charged." In other words,
it must make a direct contribution to carrying out either a specific
appropriation or an authorized agency function for which more general
appropriations are available" (page 4-16 in the cited document).

c\. By projection, this doctrine makes unallowable items of expense
which can be reasonably construed as covering items or services which
are to meet personal convenience and are not for a necessary
governmental function. Determinations in this area in respect to
questioned or questionable items should be made by the Contracting
Officer in consultation with the legal counsel. Almost any listing of
prohibited items of purchase is subject to exceptions. To quote the
above cited GAO issuance, "The Comptroller General has never established
a precise formula for determining the application of the necessary
expense rule. In view of the vast differences among agencies, any
formula would almost certainly be unworkable. Rather, the determination
must be made essentially on a case-by-case basis" (Page 4-15 of the
publication.)

d\. For the guidance of FAA, the following examples are given of
prohibited items of purchase (however, this is not a complete list):
~(Revised\ 12/1999)~

\(1\) *Drinking water,* except when a duly constituted public health
authority pronounces the ordinary drinking water to be unsafe for human
consumption at the site.

\(2\) *Subscriptions to publications or magazines*, not relating to
official duties.

\(3\) *Clothing* *(or personal apparel of any description);*
requirements for special type clothing necessitated by agency need
should be coordinated with the procurement office.

\(4\) *Rental of aircraft* by persons not in aircraft related positions.

\(5\) *Fans, air conditioning and cooling equipment, space heaters and
heating equipment*, except as properly installed for general use in
connection with the maintenance and operations requirements for the
site.

\(6\) *Water coolers, or vacuum cleaners and other household
appliances*, except as requisitioned for general use by the authorities
charged with building maintenance and equipment.

**B. Clauses**

None applicable.

**C. Forms**

See FAST Procurement Toolbox for applicable forms.

D.  **Appendix** ~(Revised\ 01/2004)~

Appendix 1 - Appropriate Use of Credit Card Checks

Appendix 2 - Credit Card Check Approval Form

Appendix 3 - Credit Card Check Register

## Appendix 4 -- Purchase Card Training Database ~(Added\ 01/2003)~

Appendix 5 -- APC Checklist Guide ~(Added\ 01/2004)~

Appendix 6 -- National Checklist ~(Added\ 01/2004)~

Appendix 1 -. APPROPRIATE USE OF CREDIT CARD CHECKS ~(Added\ 07/2000)~

+---------+-----------------+----+------------------------------------+
| Sc      | Examples of     | A  | Comments [^4]                      |
| enarios | Preferred       | ll |                                    |
|         | Payment Methods | ow |                                    |
|         | [^1] [^2]       | C  |                                    |
|         |                 | he |                                    |
|         |                 | ck |                                    |
|         |                 | U  |                                    |
|         |                 | se |                                    |
|         |                 | [^ |                                    |
|         |                 | 3] |                                    |
+---------+-----------------+----+------------------------------------+
| Em      | -   Deposit to  | Y  | Treasury waiver allowed where      |
| ergency |     employee's  | es | payment is to a recipient within   |
| salary  |     account     |    | an area designated by President or |
| payment |                 |    | an authorized agency administrator |
| (d      | -   Treasury    |    | as a disaster area.                |
| isaster |     check to    |    |                                    |
| de      |     employee    |    |                                    |
| clared) |                 |    |                                    |
+---------+-----------------+----+------------------------------------+
| Advance | -   Deposit to  | No |                                    |
| salary  |     employee's  |    |                                    |
| payment |     account     |    |                                    |
| to new  |                 |    |                                    |
| e       | -   Treasury    |    |                                    |
| mployee |     check to    |    |                                    |
|         |     employee    |    |                                    |
+---------+-----------------+----+------------------------------------+
| Local   | -   Deposit to  | No |                                    |
| travel  |     employee's  |    |                                    |
|         |     account     |    |                                    |
|         |                 |    |                                    |
|         | -   Treasury    |    |                                    |
|         |     check to    |    |                                    |
|         |     employee    |    |                                    |
|         |                 |    |                                    |
|         | -   Em          |    |                                    |
|         | ployer-provided |    |                                    |
|         |     transit     |    |                                    |
|         |     cards       |    |                                    |
+---------+-----------------+----+------------------------------------+
| Re      | -   Deposit to  | No |                                    |
| imburse |     employee's  |    |                                    |
| gas     |     account     |    |                                    |
| when    |                 |    |                                    |
| p       | -   Treasury    |    |                                    |
| rivatel |     check to    |    |                                    |
| y-owned |     employee    |    |                                    |
| vehicle |                 |    |                                    |
| is used |                 |    |                                    |
| for     |                 |    |                                    |
| local   |                 |    |                                    |
| travel  |                 |    |                                    |
+---------+-----------------+----+------------------------------------+
| P       | -   Purchase    | L  | Treasury waiver allowed where      |
| urchase |     credit card | im | there is only once source for good |
| fuel &  |                 | it | or service and the Government      |
| main    | -   Deposit to  | ed | would be seriously injured unless  |
| tenance |     employee's  |    | payment is made by a method other  |
| for     |     account     |    | than electronic funds transfer     |
| go      |                 |    | (EFT).                             |
| vernmen | -   Treasury    |    |                                    |
| t-owned |     check to    |    |                                    |
| v       |     employee    |    |                                    |
| ehicles |                 |    |                                    |
+---------+-----------------+----+------------------------------------+
|         | -               |    |                                    |
|         | -               |    |                                    |
+---------+-----------------+----+------------------------------------+

+---------+-----------------+----+------------------------------------+
| Sc      | Examples of     | A  | Comments                           |
| enarios | Preferred       | ll |                                    |
|         | Payment Methods | ow |                                    |
|         |                 | C  |                                    |
|         |                 | he |                                    |
|         |                 | ck |                                    |
|         |                 | U  |                                    |
|         |                 | se |                                    |
+---------+-----------------+----+------------------------------------+
| P       | -   Purchase    | L  | Treasury waiver allowed where      |
| ayments |     credit card | im | there is only one source for good  |
| to      |                 | it | or service and the Government      |
| Stat    | -   Deposit to  | ed | would be seriously injured unless  |
| e/local |     payee's     |    | payment is made by a method other  |
| gove    |     account     |    | than EFT.                          |
| rnments |                 |    |                                    |
|         | -   Deposit to  |    |                                    |
|         |     employee's  |    |                                    |
|         |     account     |    |                                    |
|         |                 |    |                                    |
|         | -   Treasury    |    |                                    |
|         |     check to    |    |                                    |
|         |     employee    |    |                                    |
+---------+-----------------+----+------------------------------------+
| Real    | -   Deposit to  | L  | Use of credit card check allowed   |
| p       |     payee's     | im | only if such payment is required   |
| roperty |     account     | it | by Justice.                        |
| acqui   |                 | ed |                                    |
| sitions | -   Treasury    |    |                                    |
| from    |     check to    |    |                                    |
| others  |     payee       |    |                                    |
| in      |                 |    |                                    |
| volving |                 |    |                                    |
| Dep     |                 |    |                                    |
| artment |                 |    |                                    |
| of      |                 |    |                                    |
| Justice |                 |    |                                    |
+---------+-----------------+----+------------------------------------+
| Radar   | -   Purchase    | L  | If there is not a reasonable,      |
| located |     credit card | im | cost-effective alternative to the  |
| on      |                 | it | farmer mowing the grass or         |
| farm.   | -   Deposit to  | ed | removing snow, a credit card check |
| Farmer  |     payee's     |    | may be used. Although every effort |
| mows    |     account     |    | should be made to use or establish |
| lawn or |                 |    | an account with a financial        |
| removes | -   Deposit to  |    | institution to which payments can  |
| snow    |     employee's  |    | be electronically deposited.       |
| around  |     account     |    |                                    |
| radar   |                 |    |                                    |
|         | -   Treasury    |    |                                    |
|         |     check to    |    |                                    |
|         |     employee    |    |                                    |
+---------+-----------------+----+------------------------------------+
| Rent    | -   Purchase    | L  | Treasury waiver allowed when there |
| ai      |     credit card | im | is only once source and Government |
| rcraft, |                 | it | would be seriously injured unless  |
| a       | ```{=html}      | ed | payment is made by a method other  |
| ircraft | <!-- -->        |    | than EFT.                          |
| sim     | ```             |    |                                    |
| ulators | -   Deposit to  |    |                                    |
|         |     payee's     |    |                                    |
|         |     account     |    |                                    |
|         |                 |    |                                    |
|         | -   Deposit to  |    |                                    |
|         |     employee's  |    |                                    |
|         |     account     |    |                                    |
|         |                 |    |                                    |
|         | -   Treasury    |    |                                    |
|         |     check to    |    |                                    |
|         |     employee    |    |                                    |
+---------+-----------------+----+------------------------------------+

+---------+-----------------+----+------------------------------------+
| Sc      | Examples of     | A  | Comments                           |
| enarios | Preferred       | ll |                                    |
|         | Payment Methods | ow |                                    |
|         |                 | C  |                                    |
|         |                 | he |                                    |
|         |                 | ck |                                    |
|         |                 | U  |                                    |
|         |                 | se |                                    |
+---------+-----------------+----+------------------------------------+
| Rent    | -   Purchase    | L  | Treasury waiver allowed: 1) when   |
| eq      |     credit card | im | there is only one source (perhaps  |
| uipment |                 | it | due to remote location) &          |
| at      | -   Deposit to  | ed | Government would be seriously      |
| lo      |     payee's     |    | injured unless payment is made by  |
| cations |     account     |    | a method other than EFT, 2) when   |
| where   |                 |    | there is a need that is unusual    |
| vendor  | -   Deposit to  |    | and compelling, or 3) when the     |
| doesn't |     employee's  |    | source is significantly less       |
| accept  |     account     |    | costly than others.                |
| credit  |                 |    |                                    |
| cards & | -   Treasury    |    |                                    |
| trans   |     check to    |    |                                    |
| porting |     employee    |    |                                    |
| eq      |                 |    |                                    |
| uipment |                 |    |                                    |
| from    |                 |    |                                    |
| another |                 |    |                                    |
| site is |                 |    |                                    |
| cost    |                 |    |                                    |
| prohi   |                 |    |                                    |
| bitive. |                 |    |                                    |
+---------+-----------------+----+------------------------------------+
| Payment | -   Purchase    | L  | Treasury waiver allowed: 1) when   |
| for     |     credit card | im | there is only one source (perhaps  |
| r       |                 | it | due to remote location) &          |
| equired | ```{=html}      | ed | Government would be seriously      |
| ph      | <!-- -->        |    | injured unless payment is made by  |
| ysicals | ```             |    | a method other than EFT, 2) when   |
| for     | -   Deposit to  |    | there is a need that is unusual    |
| em      |     payee's     |    | and compelling, or 3) when the     |
| ployees |     account     |    | source is significantly less       |
|         |                 |    | costly than others.                |
|         | -   Treasury    |    |                                    |
|         |     check to    |    |                                    |
|         |     payee       |    |                                    |
|         |                 |    |                                    |
|         | -   Deposit to  |    |                                    |
|         |     employee's  |    |                                    |
|         |     account     |    |                                    |
|         |                 |    |                                    |
|         | -   Treasury    |    |                                    |
|         |     check to    |    |                                    |
|         |     employee    |    |                                    |
+---------+-----------------+----+------------------------------------+
| Payment | -   Purchase    | L  | Treasury waiver allowed when there |
| to      |     credit card | im | is only one source and Government  |
| vendors |                 | it | would be seriously injured unless  |
| for     | -   Deposit to  | ed | payment is made by a method other  |
|         |     payee's     |    | than EFT, or when there is a need  |
| t       |     account     |    | for the training that is unusual   |
| raining |                 |    | and compelling.                    |
|         | -   Treasury    |    |                                    |
|         |     check to    |    |                                    |
|         |     payee       |    |                                    |
|         |                 |    |                                    |
|         | ```{=html}      |    |                                    |
|         | <!-- -->        |    |                                    |
|         | ```             |    |                                    |
|         | -   Deposit to  |    |                                    |
|         |     employee's  |    |                                    |
|         |     account     |    |                                    |
|         |                 |    |                                    |
|         | -   Treasury    |    |                                    |
|         |     check to    |    |                                    |
|         |     employee    |    |                                    |
+---------+-----------------+----+------------------------------------+
| Expert  | -   Purchase    | L  | Treasury waiver allowed when there |
| witness |     credit card | im | is only one source and Government  |
| fees    |                 | it | would be seriously injured unless  |
|         | -   Deposit to  | ed | payment is made by a method other  |
|         |     payee's     |    | than EFT, or when there is a need  |
|         |     account     |    | that is unusual and compelling.    |
|         |                 |    |                                    |
|         | -   Treasury    |    |                                    |
|         |     check to    |    |                                    |
|         |     payee       |    |                                    |
|         |                 |    |                                    |
|         | -   Deposit to  |    |                                    |
|         |     employee's  |    |                                    |
|         |     account     |    |                                    |
|         |                 |    |                                    |
|         | -   Treasury    |    |                                    |
|         |     check to    |    |                                    |
|         |     employee    |    |                                    |
+---------+-----------------+----+------------------------------------+
| Reimbu  | -   Deposit to  | ## |                                    |
| rsement |     employee's  | #  |                                    |
| for     |     account     | No |                                    |
| pa      |                 |    |                                    |
| ssports | -   Treasury    |    |                                    |
| &       |     check to    |    |                                    |
| immuni  |     employee    |    |                                    |
| zations |                 |    |                                    |
+---------+-----------------+----+------------------------------------+

+---------+-----------------+----+------------------------------------+
| Sc      | Examples of     | A  | Comments                           |
| enarios | Preferred       | ll |                                    |
|         | Payment Methods | ow |                                    |
|         |                 | C  |                                    |
|         |                 | he |                                    |
|         |                 | ck |                                    |
|         |                 | U  |                                    |
|         |                 | se |                                    |
+---------+-----------------+----+------------------------------------+
| FE      | -   Purchase    | No |                                    |
| DEX/UPS |     credit card |    |                                    |
| d       |                 |    |                                    |
| elivery | -   Deposit to  |    |                                    |
| with    |     payee's     |    |                                    |
|         |     account     |    |                                    |
| COD     |                 |    |                                    |
|         | -   Treasury    |    |                                    |
|         |     check to    |    |                                    |
|         |     payee       |    |                                    |
|         |                 |    |                                    |
|         | ```{=html}      |    |                                    |
|         | <!-- -->        |    |                                    |
|         | ```             |    |                                    |
|         | -   Deposit to  |    |                                    |
|         |     employee's  |    |                                    |
|         |     account     |    |                                    |
|         |                 |    |                                    |
|         | -   Treasury    |    |                                    |
|         |     check to    |    |                                    |
|         |     employee    |    |                                    |
+---------+-----------------+----+------------------------------------+
| O       | -   Purchase    | #  | Treasury waiver allowed: 1) when   |
| ne-time |     credit card | ## | there is only one source (perhaps  |
| need    |                 |  L | due to remote location) &          |
| for     | -   Treasury    | im | Government would be seriously      |
| elect   |     check to    | it | injured unless payment is made by  |
| rician, |     payee       | ed | a method other than EFT, 2) when   |
| p       |                 |    | there is a need that is unusual    |
| ainter, | -   Deposit to  |    | and compelling, or 3) when the     |
| p       |     employee's  |    | source is significantly less       |
| lumber, |     account     |    | costly than others.                |
| etc.    |                 |    |                                    |
| without | -   Treasury    |    |                                    |
| bank    |     check to    |    |                                    |
| account |     employee    |    |                                    |
+---------+-----------------+----+------------------------------------+
| ## Tuit | -   Deposit to  | No |                                    |
| ion ass |     employee's  |    |                                    |
| istance |     account     |    |                                    |
|         |                 |    |                                    |
|         | -   Treasury    |    |                                    |
|         |     check to    |    |                                    |
|         |     employee    |    |                                    |
+---------+-----------------+----+------------------------------------+
| Award   | -   Deposit to  | No |                                    |
| to      |     employee's  |    |                                    |
| e       |     account     |    |                                    |
| mployee |                 |    |                                    |
|         | -   Treasury    |    |                                    |
|         |     check to    |    |                                    |
|         |     employee    |    |                                    |
+---------+-----------------+----+------------------------------------+

To reimburse an employee, the employee would complete a SF-1164, "Claim
for Reimbursement for Expenditures on Official Business," and
reimbursement would be made by direct deposit to the employee's account
or by a Treasury check (see footnote 2).

When an employee does not want to be paid or reimbursed by an EFT method
based on the waivers stated in 31 CFR 208.4, including "where an
individual determines, in his or her sole discretion, that payment by
electronic funds transfer would impose a hardship due to a physical or
mental disability or a geographic, language, or literacy barrier, or
would impose a financial hardship," reimbursement will be by Treasury
check and not by credit card check, unless the political, financial, or
communications infrastructure does not support payment by Treasury
check, for example, during a declared disaster.

When paying vendors and individuals for providing goods and services,
payment by EFT is required unless one of the waiver criteria stipulated
in 31 CFR 208.4 applies. Since payment by Treasury check is a non-EFT
method, its use must be supportable by waiver as required by 31 CFR
208.4. Payment by Treasury check is preferable to using a credit card
check.

A credit card check can be issued when the service or good for which
payment is being made meets the criteria set forth in 31 CFR 208.4 (see
footnote 2), and is operationally critical, time critical, cost
effective and consistent with FAA procurement policies. Because of the
inherent inefficiencies and costs associated with processing a paper
document, and because there are better controls associated with
electronic payments, checks are to be issued only for "exceptional
situations" when other payment mechanisms, like the purchase and travel
credit cards, are not possible.

Based on 31 CFR 208.4 as implemented by the Department of the Treasury
in September 1998, non-electronic funds transfer (EFT) methods may be
used:

where the political, financial, or communications infrastructure does
not support payment by EFT in a foreign country;

where the payment is to a recipient within an area designated by the
President or an authorized agency administrator as a disaster area;

where paying by EFT would jeopardize military or law enforcement
operations or national security interests;

where a cost-benefit analysis shows that making non-recurring payments
by EFT are not justified;

where an agency's need for goods and services is of such unusual and
compelling urgency that the Government would be seriously injured unless
payment is made by a method other than EFT; or

when there is only one source for goods or services and the Government
would be seriously injured unless payment is made by a method other th

### Appendix 2 -- CREDIT CARD CHECKS APPROVAL FORM ~(Added\ 07/2000)~

This form is to be completed when verbal approval has been granted in
advance of a purchase by the second level supervisor.

  ------------------------- -------------------- ---------------------- ------------------
  Date verbal approval                                                  
  authorized                                                            

  Name of credit card check                                             
  writer:                                                               

  Name of individual who                                                
  provided check to                                                     
  vendor/merchant/payee:                                                

  Vendor/merchant/payee's                                               
  name:                                                                 

  Did vendor/merchant                                                   
  accept the purchase                                                   
  credit card?                                                          

  Reason for authorizing                                                
  the use of the credit                                                 
  card check:                                                           

                                                                        

                            Second level                                
                            Approving Official's                        
                            Name/Signature                              
  ------------------------- -------------------- ---------------------- ------------------

**Appendix 3 - CREDIT CARD CHECK REGISTER** ~(Added\ 07/2000)~

<table style="width:100%;">
<colgroup>
<col style="width: 6%" />
<col style="width: 11%" />
<col style="width: 12%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 8%" />
<col style="width: 7%" />
<col style="width: 0%" />
<col style="width: 6%" />
<col style="width: 1%" />
<col style="width: 5%" />
<col style="width: 13%" />
<col style="width: 3%" />
<col style="width: 7%" />
<col style="width: 0%" />
</colgroup>
<tbody>
<tr class="odd">
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="7"><strong>Name: __________________________</strong></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td colspan="4"><strong>Account Number:
___________________</strong></td>
<td></td>
<td></td>
<td colspan="7"><strong>Date: __________________________</strong></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td rowspan="3"><strong>Check No.</strong></td>
<td rowspan="3"><strong>ISSUED TO</strong></td>
<td></td>
<td rowspan="3"><p><strong>CHECKAMOUNT</strong></p>
<p><strong>$</strong></p></td>
<td rowspan="3"><p><strong>DATE</strong></p>
<p><strong>WRITTEN</strong></p></td>
<td rowspan="3"><p><strong>CHECK FEE</strong></p>
<p><strong>AMOUNT (1.9%)</strong></p></td>
<td colspan="4" rowspan="2"><p><strong>DOES VENDOR/PAYEE/</strong></p>
<p><strong>MERCHANT ACCEPT PURCHASE CARD?
_______________</strong></p></td>
<td colspan="2" rowspan="3"><strong>REASON CHECK WAS
ISSUED</strong></td>
<td colspan="2" rowspan="3"><p><strong>AUTHORIZING</strong></p>
<p><strong>OFFICIAL'S</strong></p>
<p><strong>SIGNATURE</strong></p></td>
<td></td>
</tr>
<tr class="odd">
<td rowspan="2"><p><strong>APPROPRIATION</strong></p>
<p><strong>CODE</strong></p></td>
<td></td>
</tr>
<tr class="even">
<td colspan="2"><strong>YES</strong></td>
<td colspan="2"><strong>NO</strong></td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td colspan="15"><p>Note: As a suggestion, if you have situations when
the reason is the same for single or multiple vendors, you may want to
develop</p>
<p>a list of reason codes at the bottom of the form and put the reason
code number in the justification block</p></td>
</tr>
</tbody>
</table>

[^1]: **Appendix 4 -- PURCHASE CARD TRAINING DATABASE**
    ~(Added\ 01/2003)~

    **Assigned Organization**

    **Employee**

    **Name**

    **Location**

    **Initial Training Date**

    **Refresher Training DateLast 6 Digits of Purchase Card No.**

    **Single/Monthly Spending Limit**

    **Supervisor's Name**

    AAF-300

    Joe DoeANE Regional Office

    05/22/9502/16/99

    02/16/02

    200000\$10,000(S)

    \$25,000(M)

    John Smith

    ANI-1

    Jane DoeAAL

    FTW SSC

    02/01/99

    03/12/02

    111111\$5,000(S)

    \$10,000(M)

    Jane Smith

    AFM-800

    Tom Jones

    Headquarters

    02/02/9411/22/97

    09/15/00

    222222\$25,000(S)

    \$50,000(M)

    Tom Smith

    ACT-51

    Mary Brown

    ACT Logistics

    07/07/01

    123456\$10,000(S)

    \$25,000(M)

    Sallie Jones

    AMQ-300

    Lucy Bird

    AMQ Ops &

    Maint.

    10/10/9310/08/96

    10/12/99

    10/15/02

    234567

    \$10,000(S)

    \$25,000(M)

    Her Gordon

    AEA-55

    Freddie Mac

    AEA Contract

    05/15/02

    345678\$10,000(S)

    \$25,000(M)

    Oscar Myer

    ASO-22

    Willie Wonka

    ASO Acct.Ops

    04/19/00

    456789\$10,000(S)

    \$25,000(M)

    Millie Norman

    AGL-54

    Rocky MoonAGL Sup Servs

    06/20/9605/20/99

    07/26/02

    567890\$10,000(S)

    \$25,000(M)

    Madge Hair

    ACE-300

    Jean Bandaid

    ACE Med Serv

    01/24/97

    03/19/00

    678901\$10,000(S)

    \$25,000(M)

    Howard Troy

    ASW-620

    George GreenASW Safety Std

    09/18/98

    10/10/01

    789012\$10,000(S)

    \$25,000(M)

    Troy Ackman

    AWP-420

    Sky CoralAWP

    Resource Mgt

    02/09/9502/18/98

    03/03/01

    890123\$10,000(S)

    \$25,000(M)

    Siera Surfer

    ANM-53

    Renee News

    ANM Acq.

    08/28/02

    901234\$10,000(S)

    \$25,000(M)

    Dan Ruther

[^2]:
    ##### 

    ##### Appendix 5 -- APC CHECKLIST GUIDE ~(Added\ 01/2004)~

    Number

    Government Purchase Card and Check Evaluation Report Check List

    ComplyNon ComplyNot Applicable1**PRIOR APPROVAL**Purchase card --
    The cardholder obtains and documents the approval of the approving
    official and checks the funds available balance before purchase is
    made. The cardholder will obtain written confirmation of any verbal
    approval within 10 days of receiving the verbal approval.\
    AMS Procurement Guidance \[T3.2.2.5.A.1.e.(1).(h).(i)\]Credit card
    check -- Purchases using credit card checks must be approved in
    advance by the second line approving official who approves purchase
    card purchases. \[AMS Procurement Guidance T3.2.2.5.A.4.c.(1)\].If
    the approving official is not located at the same site as the person
    authorized to issue the check (check writer), verbal approval
    followed by written documentation is satisfactory. The check writer
    must complete the credit card check approval form when verbal
    approval has been granted in advance of a purchase by the second
    level supervisor \[AMS Procurement Guidance T3.2.2.5.A.4.c.(2) and
    Appendix 2\]2**AUTHORIZED USE**Purchase card -- The purchase
    cardholder must safeguard the purchase card and card number. Only
    the individual whose name appears on the purchase card is authorized
    to use it. \[AMS Procurement Guidance T3.2.2.5A.1.e.(4)\]Credit card
    check -- Checks shall only be used by the individual whose name
    appears on the check. \[AMS Procurement Guidance T3.2.2.5.A.4.d.(1))

    Check writers shall safeguard checks and keep in a secured area
    (i.e. locked safe cabinet or another secured environment) AMS
    Procurement Guidance T3.2.2.5.A.4.g.(2)\]3**DOCUMENTATION**Purchase
    Card -- All purchase card transactions made by a cardholder must be
    supported by a purchase approval, a certification of funds
    availability, documents such as a sales slip or invoice, telephone
    log (for phone purchases), check for availability from mandatory
    source, best value documentation (if mandatory source not
    available), and a receiving report. Cardholders must retain purchase
    card documentation for six years and three months from date of
    purchase. Cardholders must notify and provide all card documentation
    to approving official before cardholder transfers to another office
    or leaves FAA\[AMS Procurement Guidance T3.2.2.5.A.1.f.(3)\]

    Number

    Government Purchase Card and Check Evaluation Report Check List

    ComplyNon ComplyNot Applicable3**DOCUMENTATION**Credit card check --
    The credit card check writer must obtain the initials of the
    approving official on the check register to verify that the payee
    does not accept the purchase card. \[AMS Procurement Guidance
    T3.2.2.5A.4.c.(1)\] Check writer should maintain a record of each
    check transaction in the check register \[AMS Procurement Guidance
    T3.2.2.5A.4.o\]Check writer must turn in carbon copy of check,
    merchandise receipt and invoice and match against credit card check
    register. Credit card check records should be retained in credit
    card check writer's office \[AMS Procurement Guidance
    T3.2.2.5.A.4.p\]4**PROHIBITED PURCHASES**Purchase Card -- The GSA
    contract stipulates that the purchase card may not be used for the
    following: \[AMS Procurement Guidance T3.2.2.5.A.1.F.(4).(a)\]a.
    Rental or lease of land or buildings (except short-term commercial
    conference and meeting room space may be purchasedb. Cash advances,
    including money ordersc. Telephone services controlled by the GSA or
    the local Office of Information Services or Regional Communications
    Office (except telephone equipment may be purchased)The use of the
    purchase card for personal purchases or as identification when
    writing personal checks is prohibited. \[AMS Procurement Guidance
    T3.2.2.5.A.1.f.(4).(b)\]The use of appropriated funds for the
    following purposes is prohibited: \[AMS Procurement Guidance
    T3.2.2.5.A.1.f.(4).(c)\]a. Food items for meetings and conventions
    (except that a reasonable amount may be expended for light
    refreshments at award ceremonies)b. Gifts to include store gift
    cards/certificates, office retirementsc. Membership feesd. Personal
    expenses and furnishings, including clothing, decorations and food
    for personal use or consumption (except as authorized by HRPM 9.2.
    The purchase card may be used to purchase clothing that is required
    to perform job dutiese. Drinking water (except when a public health
    authority pronounces the ordinary drinking water is unsafe for human
    consumption at the sitef. Subscriptions to publications or
    magazines, not relating to official dutiesg. Rental of aircraft by
    persons not in aircraft related positions

    Number

    Government Purchase Card and Check Evaluation Report Check List

    ComplyNon ComplyNot Applicable4**PROHIBITED PURCHASES**h. Fans, air
    conditioning and cooling equipment, space heaters and heating
    equipment, except as properly installed for general use in
    connection with the maintenance and operations requirements for the
    sitei. Water coolers, or vacuum cleaners and other household
    appliances (except as requisitioned for general use by the
    authorities charged with building maintenance and equipment)The
    purchase card cannot be used to purchase real property (land,
    buildings, or other structures -- See Real Property Guidance,
    Chapter 5, Section II.A.20 for exceptions) \[AMS Procurement
    Guidance T3.2.2.5.A.1.f.(4).(d)\]Credit card checks -- credit card
    checks may not be used for the following: \[AMS Procurement Guidance
    T3.2.2.5.A.4.b.(2)\]a. The issuance of travel advances when the
    government-issued travel charge card is revoked or cancelled due to
    delinquent payment or for personal reasonsb. Cash5**RESTRICTED
    PURCHASES**Purchase card -- Federal funds used to purchase, lease or
    rent plasma displays or personal data assistants (PDAs) including
    Blackberries, require written justification from the affected
    associate or assistant administrator. \[AMS Procurement Guidance
    T3.2.2.5.A.1.f.(5)\]

    The acquisition of high cost, high quantity items (e.g. computer
    equipment, hand-held radios, snowmobiles or any item over the amount
    of \$500) or sensitive items should be centrally purchased within
    the region, center or headquarters LOB to take advantage of the
    economies of scale and equipment standardization \[AMS Procurement
    Guidance T3.2.2.5.A.1.f.(5)\]Credit card checks -- Credit card
    checks may only be issued in "exceptional situations" when the use
    of payment mechanisms such as automated clearinghouse, a government
    purchase card, or a government issued travel credit card are not
    feasible \[AMS Procurement Guidance T3.2.2.5.A.4.b\]Credit card
    checks may only be used: \[AMS Procurement Guidance
    T3.2.2.5.A.4.b.(1)\]a. Where the political, financial, or
    communications infrastructure does not support payment by EFT in a
    foreign countryb. Where the payment is to a recipient within an area
    designated by the President or an authorized agency administrator as
    a disaster areac. Where paying by EFT would jeopardize military or
    law enforcement operations or national security interestsd. Where a
    cost-benefit analysis shows that making non-recurring payments by
    EFT are not justified

    Number

    Government Purchase Card and Check Evaluation Report Check List

    ComplyNon ComplyNot Applicable5**RESTRICTED PURCHASES**e. Where an
    agency's need for goods and services is of such an unusual and
    compelling urgency that the Government would be seriously injured
    unless payment is made by a method other than EFTf. When there is
    only one source for goods or services and the Government would be
    seriously injured unless payment is made by a method other than
    EFT6**THIRD PARTY PAYMENTS**Purchase card -- Cardholders are
    required to immediately notify the approving official when they
    become aware that a purchase card purchase will be processed by a
    third party on-line payment company. Cardholders must provide the
    approving official a copy of all documentation that supports the
    on-line payment transaction within five days of item receipt. \[AMS
    Procurement Guidance T3.2.2.5.A.1.f.(6)\]7**USE OF MANDATORY
    SOURCES**Purchase card -- Cardholder must determine if a product or
    service is available from the mandatory sources of supply (UNICOR,
    NIB, NISH) before making a purchase from the open market \[AMS
    Procurement Guidance T3.2.2.5.A.1.g.(1)\]8**ADDITIONAL SOURCES OF
    SUPPLY**Purchase card -- Cardholders should purchase products and
    services from small businesses and small businesses owned and
    controlled by socially and economically disadvantaged whenever
    possible after mandatory source \[AMS Procurement Guidance
    T3.2.2.5.A.1.g.(2)\]9**USE OF COMMERCIAL SOURCES**Purchase card --
    If a product or service is not available from a mandatory source,
    then cardholder must document best value for commercial purchase
    (i.e. contact 2 or more commercial vendors). Best value includes
    fair and reasonable price, functional specs, delivery capability and
    warranty \[AMS Procurement Guidance T3.2.2.5.A.1.f.(3) and
    T3.2.2.5.A.1.g.(3)\]Purchase card -- A written waiver from UNICOR is
    not required to purchase items up to \$2600 from outside sources
    \[AMS Procurement Guidance T3.2.2.5.A.1.g.(1)\]10**FISCAL
    RESPONSIBILITY**Purchase card -- Cardholders must not split purchase
    card purchases in order to exceed the authorized single purchase
    limit. \[AMS Procurement Guidance T3.2.2.5.A.1.e.(2)\]Credit card
    check -- Credit card checks cannot be written for more than \$2500
    each

    Number

    Government Purchase Card and Check Evaluation Report Check List

    ComplyNon ComplyNot Applicable10**FISCAL RESPONSIBILITY**Purchase
    card fund availability -- Cardholders are responsible for
    maintaining a revolving balance of available funds as each item is
    purchased. \[AMS Procurement Guidance T3.2.2.5.A.1.h\]Credit card
    check fund availability -- Check writers are responsible for
    tracking their individual available balance and reconciling cleared
    credit card checks. \[AMS Procurement Guidance
    T3.2.2.5.A.4.f\]Purchase card validation -- Cardholders are
    responsible for validating all purchase card purchases and credit
    transaction items on the monthly statement to the accountable
    documents (sales slip, credit slip, and phone order form) and submit
    receipts to approving official, and correct object class code when
    necessary \[AMS Procurement Guidance T3.2.2.5.A.1.e.(h)(ii) and
    T3.2.2.5.A.1.e.(h)(iii) and T3.2.2.5.A.1.k\]Credit card check
    validation -- The monthly statement must be cross-checked with the
    check writer's check register, carbon copy of the check, receipt,
    and invoice to ensure that the register and statement amounts are
    the samePurchase card deficiencies/disputes/damaged equipment --
    Cardholder should seek resolution with vendor when item shortages,
    receipt of defective items or receipt of wrong items occur.
    Cardholder must return defective, damaged or erroneous item to
    vendor within 60 days of receipt. \[AMS Procurement Guidance
    T3.2.2.5.A.1.l.(1)\]Purchase cardholder must file a dispute form
    with the bank if they cannot reach a resolution with the vendor for
    any discrepancies. \[AMS Procurement Guidance
    T3.2.2.5.A.1.l.(2)\]Credit card check deficiencies/disputes/damaged
    equipment -- Discrepancies must be resolved immediately with the
    financial institution. \[AMS Procurement Guidance
    T3.2.2.5.A.4.s\]Credit card check writers cannot accept cash or
    store credits made out to check writer for returned items. \[AMS
    Procurement Guidance T3.2.2.5.A.4.t.(1)\]Check refunds received by
    the check writer must be forwarded to the servicing accounting
    office for deposit within one business day. \[AMS Procurement
    Guidance T3.2.2.5.A.4.t.(2)\]11**THEFT OR LOSS**Purchase card -- The
    cardholder must immediately report the loss or theft of the purchase
    card to the APC, approving official, and the bank to avoid liability
    for unauthorized purchases on the card. \[ AMS Procurement Guidance
    T3.2.2.5.A.1.m\]Credit card check -- Check writer must report lost
    or stolen checks to the financial institution. \[AMS Procurement
    Guidance T3.2.2.5A.4.m\]

    ##### Appendix 6 -- NATIONAL CHECKLIST ~(Added\ 01/2004)~

    **[T3.2.2.5 -- National Program Coordinator (NPC)]{.underline}**

    ####### COCO -- Chief of Contracting Office

    Monitor the internal operating procedures, misuse of purchase cards,
    and disciplinary actions(s)

    Monitor compliance with FAST

    Delegate Purchasing Authority (DPA) in writing to purchase
    cardholders

    Approve maximum dollar limit for a single purchase

    Approve cumulative maximum dollar monthly limit

    ######## APC -- Agency Program Coordinator

    Ensure all new and existing cardholders and AO receive required
    training

    Submit approved purchase card application to card issuing bank

    Submit changes for cardholder single/monthly purchase limits to the
    card-issuing bank

    Submit account cancellations to the card-issuing bank

    Communicate with lines of business (LOBs) to seek a desirable ratio
    of cardholders to AO

    Establish and maintain a tracking system to monitor initial and/or
    refresher training of cardholders and AO

    Prepare OMB quarterly report

    Notify COCO of misuse of purchase card and disciplinary action(s)

    Obtain password from BOA to permit AO to approve transactions via
    NACCS

    ######## AO -- Approving Official

    Review and approve requests

    Certify funds are available

    Verify receipts and invoices

    Notify APC of any misuse of purchase card and disciplinary action(s)

    Monitor purchase cardholder records for compliance with FAST,
    Section T3.2.2.5.1.f (3)

    If applicable, approve purchase card transactions via NACCS

    ######## Cardholder

    Safeguard the card and its number and not permit use by others

    Maintain only one (1) card

    Maintain records and documentation in accordance with FAST, Section
    T3.2.2.5. 1.f (3)

    Comply with requirements for selecting from mandatory sources,
    obtain best value and avoid prohibited and split purchases, FAST
    Sections T3.2.2.5. 1.g & 1.f (4)

    Notify AO prior to transferring and/or separating from the agency

    Order and verify supplies/equipment

    Provide purchase card application with justification and AO approval
    to Agency Program Coordinator (APC)

    Provide evidence of training certification to APC

    Request single purchase spending limit and monthly cumulative limit
    consistent with need

    Obtain prior approval from AO for the procurement

    ######## Requestor

    Prepare justification of procurement

    Acknowledge receipt of purchases

    ######### CORRECTIVE ACTION GUIDE

    **PROCESS INVOLVED**

    Internal Controls Audit Start Date \_\_\_\_\_\_\_\_\_\_\_\_\_

    Make Purchase w/Purchase Card Control Number
    \_\_\_\_\_\_\_\_\_\_\_\_\_\_

    Obtain Purchase Card

    [FINDING]{.underline}

    [Auditor/Date]{.underline} **[CORRECTIVE ACTION PLAN]{.underline}**

    Process Official/Date

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