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                          Issue Date (revision): January 2003 (rev. 10)           

  [Section]{.underline}   [Topics in the Section]{.underline}                     [Page]{.underline}

  **A**                   **SIMPLIFIED PURCHASING**                               1

  1                       Purchase Card ~(Revised\ 01/2003)~                      1

  2                       Reserved ~(Revised\ 01/2003)~                           8

  3                       Reserved ~(Revised\ 01/2003)~                           8

  4                       Credit Card Checks ~(Added\ 07/2000)~                   8

  5                       Blanket Purchase Agreement (BPA)                        13

  6                       Purchase Orders                                         14

  7                       Considerations for Restricted Purchases                 16

  **B**                   **CLAUSES**                                             17

  **C**                   **FORMS**                                               17

  **D**                   **APPENDIX** ~(Revised\ 01/2003)~                       17
  ----------------------- ------------------------------------------------------- --------------------

**A. Simplified Purchasing**

**1. Purchase Card.** ~(Revised\ 01/2003)~

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 are authorized to use it in
acquiring products and services.

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.

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
should be the "primary purchasing method" when vendors accept credit
cards for commercial and simplified purchases, unless otherwise
prohibited. ~(Revised\ 01/2003)~

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\ 01/2003)~

\(1\) The Chief of the Contracting Office (COCO) in the regions,
centers, and headquarters has designated 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 (including the GSA web-based
training and the Bank of America video tape) 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, or approving official monthly office limits to
the card issuing bank;

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

\(e\) coordinating the card reissuance report with approving officials
and informing the card issuing bank which credit cards should be
reissued;

\(f\) working with the lines of business towards obtaining an acceptable
ratio of no more than ten cardholders per approving official;

\(g\) establishing and maintaining a tracking system to monitor initial
and/or refresher training of purchase cardholders and approving
officials (see appendix 4);

\(h\) ensuring that the cardholder receives the proper training on the
policy and procedures for the use of the card, including accountability
for the following:

\(i\) prior approval of card purchases (e.g. did the cardholder get and
document the approval of the approving official before the purchase was
made?; or did the cardholder get the necessary approvals required to
purchase or rent a restricted item that required written justification
from the affected associale or assistant administrator?). Written
confirmation of any verbal approval will be obtained by the cardholder
within 10 days of receiving 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, and reviewing official agency
transactions should be separated among individuals (this means that 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.

\(i\) ensuring that approving officials receive proper training on the
policy and procedures for the use of the card, including accountability
for the following:

\(i\) segregation of duties requirements -- key duties and
responsibilities in authorizing, processing/recording, and reviewing
official agency transactions should be separated among individuals (this
means that 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 COCO.

\(v\) receiving monthly management reports from the card issuing bank.

\(j\) 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 conducted by a designated representative of the
COCO.

\(2\) Delegations of purchasing authority (DPA) are issued to
nonwarranted individuals in the requiring organizations by the COCO or
designee. The delegation authorizes the use of the purchase card, after
these individuals have been trained on the proper use, financial control
records, and property management restrictions of the purchase card.

\(3\) 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 monitors the activities of
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.

\(4\) 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. The DPA will establish a standard single
purchase limit, above which the cardholder may not use the card. This
means that cardholders should not split purchase card purchases in order
to exceed the authorized single purchase limit.

\(5\) The purchase card must be used only by the named cardholder.
Allowing someone other than the cardholder to use the card is considered
an unauthorized purchase action which is subject to disciplinary action
as outlined in Federal Aviation Personnel Manual (FAPM) Letter 2635.

\(6\) 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:

\(a\) *Procurement training.* Aat 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; 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.

\(c\) Summarization of accounting data on monthly statements of account;
procedures to follow for account set-up (if not the responsibility of
the APC), account changes and cancellation, disputes resolution, and
procedures to follow if a purchase card is lost or stolen.

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

\(7\) All cardholders and approving officials will take refresher
purchase card training every three years from the anniversary date of
the last or initial training. The refresher training will include key
purchasing requirements such as documentation, segregation of duties,
accounting classification code assignment, purchasing of high cost
and/or sensitive items, and any recent policy changes..

f\. *Administrative Matters.* ~(Revised\ 01/2003)~

\(1\) *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 deactiviated and reactivated on an as needed
basis. According to the GSA contract, the single purchase limits may not
exceed \$100,000. Within FAA, each COCO retains the authority to
establish maximum credit card single purchase limits for cardholders.
(See paragraph 2 Agency Purchase Limitations)

\(b\) *Billing Cycle Purchase Limit*. The approving officials will
assign the cardholder a billing cycle limit. Purchase limits may be
assigned in increments of \$100 up to \$99,900. This purchase limit will
apply to the cardholder's monthly billing cycle.

\(c\) *Billing Cycle Office Limit*. The approving officials will assign
a billing cycle office dollar limit. An office limit may be assigned in
increments of \$100 up to \$99,900. The office limit is used by the
agency primarily for budgetary control purposes.

\(d\) *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
discredit in any manner the Federal Government.

\(e\) *Transaction Method*. Purchases may be restricted by method of
purchase (over-the-counter or telephone purchases).

\(2\) *Agency Purchase Limitations*. The COCO at each region, center,
and headquarters (ASU-100) determines the maximum dollar level for DPAs
to nonwarranted individuals. Warranted contracting officers may make
purchases up to \$100,000 using the credit card (if within their warrant
limits).

\(3\) *Documentation*. All purchase card transactions made by a
cardholder must be supported by a certification of funds availability, a
sales slip or invoice, telephone log (for telephone purchases), a
receiving report, and documentation of best value. Best value regarding
purchase card use includes fair and reasonable price, functional
specifications, delivery capability and warrant. The use of an
individual procurement request (PR) form for each purchase card
transaction is optional. All purchase card documentation shall be
retained for six years and three months from the date of purchase.

\(4\) *Prohibited Purchases.*

\(a\) 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. Telephone
equipment may, however be purchased by the card.

\(b\) The COCO at each acquisition office has the authority to add other
limitations; therefore, cardholders should contact the APC for
additional information. All FAA acquisition offices have prohibited use
of the purchase card for personal purchases or as identification when
writing personal checks.

\(c\) The use of appropriated funds for the following purposes is
prohibited:

\(i\) Food items for meetings and conventions;

\(ii\) Gifts to include store gift cards/certificates, office retirement
gifts (except as authorized by HRPM PM-9.1 Employee Recognition);

\(iii\) Membership fees;

\(iv\) Personal expenses and furnishings (e.g., clothing, decorations,
food for personal use);

(v) For additional guidance concerning these prohibitions, consult legal
    counsel.

\(5\) *Regulated Purchases*. Although the credit card is not intended
for use as a travel card, or for meals or lodging expenses, it may be
used for travel purchases when specifically authorized under the
activity code where the mandatory GSA travel and subsistence card
(Mastercard by Citibank) is not accepted. All authorizations for
merchants that are classified as travel and subsistence types of
business will be denied, unless specifically authorized under the
activity code. Prior to using the credit card for travel purposes,
cardholders are advised to obtain guidance from their cognizant
accounting office.

\(6\) *Restricted Purchases*. Federal funds used to purchase or rent
flat panel computer display monitors, plasma displays or personal data
assistants (PDAs) 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.

g\. *Selecting Potential Sources.*

\(1\) 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.

\(2\) The AMS stipulates that small businesses and small businesses
owned and controlled by socially and economically disadvantaged
individuals should be given reasonable opportunities to provide products
and services purchased by the FAA; therefore, cardholders should
purchase from these sources whenever possible.

\(3\) 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. The GAO publication entitled
"Principles of Federal Appropriations Law" may be obtained by
cardholders or APCs in order to be knowledgeable of limitations on
expenditure of appropriated funds. Prior to each purchase, the
responsible fiscal authority (normally the program office accounting
certification officer) shall determine whether the expenditure is
authorized by the appropriation and provide either a written
certification that adequate funds are available, or condition the
purchase upon availability of funds.

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 proper coordination of training requirements has
taken place prior to training being purchased, e.g. completed training
checklist, needs assessment, whether the training is being purchased by
a training coordinator or not.

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. ~(Revised\ 01/2003)~

\(1\) *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 COCO of any unauthorized use of the card.

\(2\) *Finance Office*. Finance offices receive monthly finance office
reports from the card issuing bank which reflect summary totals of all
purchases and credits of each approving official and 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\ 01/2003)~

\(1\) If the cardholder finds any discrepancies when reviewing the
statement, the first step is to contact the vendor to seek resolution.
Generally, this results in a credit on the next statement. A credit card
dispute office (not to be confused with the Office of Disputes
Resolution for Acquisitions for protests, claims, and disputes) may be
located at each region, center, and headquarters for purposes of
handling credit card disputes that cannot be resolved between the
cardholder, the vendor, and the bank. As a last resort for unresolved
disputes, the contracting officer or the vendor may proceed according to
the provisions of AMS Clause 3.9.1-1, Contract Disputes.

\(2\) The cardholder should return items found to be defective or faulty
to the vendor and the vendor should initiate a credit that will appear
on the account statement the following month. If a purchase or
transaction appearing on a cardholder's statement is questioned, i.e.,
has not been received, or is an unauthorized charge, the cardholder or
approving official must contact the Bank of America Government Card
Service Unit by phone at 1-800-472-1424, or call collect at
1-757-441-4124 if outside the United States. The cardholder will receive
provisional credit. Bank of America will credit the transaction until
the dispute is resolved.

\(3\) Simultaneously with the return of the item to the vendor, or the
identification of an erroneous charge, the cardholder should notify the
credit card dispute office. The credit card dispute office should also
be advised of any returned purchases or disputed items that have not
been credited to their cardholder statement within one month from the
date the purchase was returned or the disputed item was originally
reported.

m\. *Lost or Stolen Cards.* ~(Revised\ 01/2003)~

\(1\) *Reporting Lost or Stolen Cards*. If a cardholder loses or has the
card stolen, the Agency Program Coordinator, the cardholder's approving
official, and the bank contact person must be notified immediately, 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, purchases made on the date lost or stolen,
and in the event of theft, the date 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 cognizant acquisition office in order to have another card reissued.

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 FAA will comply with the FAPM Letter 2635 and
the Code of Conduct & Discipline Order for any purchase cardholder
misuse and/or fraud of the Government purchase card.

**2. Reserved.** ~(Revised\ 01/2003)~

**3. Reserved.** ~(Revised\ 01/2003)~

**4.** **CREDIT CARD CHECKS** ~(Added\ 07/2000)~

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, a government
purchase card, or a government issued travel credit card are not
feasible. Credit card checks carry a different prohibition than that of
the purchase cards. Credit card checks may only be used:

\(1\) Where the political, financial, or communications infrastructure
does not support payment by EFT in a foreign country;

\(2\) Where the payment is to a recipient within an area designated by
the President or an authorized agency administrator as a disaster area;

\(3\) Where paying by EFT would jeopardize military or law enforcement
operations or national security interests;

\(4\) Where a cost-benefit analysis shows that making non-recurring
payments by EFT are not justified;

\(5\) 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

\(6\) 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.

Credit Card checks may not be used for;

\(1\) For the issuance of travel advances when the government-issued
travel charge card is revoked or cancelled due to delinquent payment or
for personal reasons;

\(2\) The credit card checks are not valid for cash.

(Specific examples of credit card use are found in Appendix 1.)

c\. *Authorization Level*.

\(1\) 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 under the section "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*.

\(1\) 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 than 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 2635, Conduct and Discipline, as well as penalties and/or legal
charges brought upon by the financial institution.

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\ 01/2003)~

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 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 |                 |    |                                    |
+---------+-----------------+----+------------------------------------+
| No      | -   Travel      | L  | If employee is new or travels less |
| n-local |     credit card | im | than once every 18 months, a check |
| travel  |                 | it | may be used if there is 1) not     |
| (in     | -   Deposit to  | ed | sufficient time to request an      |
| cluding |     employee's  |    | electronic deposit to the          |
| travel  |     account     |    | traveler's account, & 2) travel    |
| ad      |                 |    | cannot be delayed without serious  |
| vances) | -   Treasury    |    | injury to the Government.          |
|         |     check to    |    |                                    |
|         |     employee    |    |                                    |
+---------+-----------------+----+------------------------------------+

+---------+-----------------+----+------------------------------------+
| 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    |     accou       |    | 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  | No |                                    |
| rsement |     employee's  |    |                                    |
| for     |     account     |    |                                    |
| 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    | L  | Treasury waiver allowed: 1) when   |
| ne-time |     credit card | im | there is only one source (perhaps  |
| need    |                 | it | due to remote location) &          |
| for     | -   Treasury    | ed | Government would be seriously      |
| elect   |     check to    |    | injured unless payment is made by  |
| rician, |     payee       |    | 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    |    |                                    |
+---------+-----------------+----+------------------------------------+
| Tuition | -   Deposit to  | No |                                    |
| 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><em><strong>Note: As a suggestion, if you have
situations when the reason is the same for single or multiple vendors,
you may want to develop</strong></em></p>
<p><em><strong>a list of reason codes at the bottom of the form and put
the reason code number in the justification block</strong></em></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]: 6

[^3]: .

[^4]: .