Daily Rules, Proposed Rules, and Notices of the Federal Government
At the end of the comment period, interested parties may view public comments on the World Wide Web at
This proposed rule revises DFARS subpart 213.3 to add policy on internal controls for proper use of the Governmentwide commercial purchase card and convenience checks. The rule implements recommendations made by the DoD Charge Card Task Force, in its final report dated June 27, 2002, to strengthen management of the purchase card program.
This rule was not subject to Office of Management and Budget review under Executive Order 12866, dated September 30, 1993.
DoD does not expect this rule to have a significant economic impact on a substantial number of small entities within the meaning of the RegulatoryFlexibility Act, 5 U.S.C. 601,
The Paperwork Reduction Act does not apply because the rule does not impose any information collection requirements that require the approval of the Office of Management and Budget under 44 U.S.C. 3501,
Therefore, DoD proposes to amend 48 CFR part 213 as follows:
1. The authority citation for 48 CFR part 213 continues to read as follows:
41 U.S.C. 421 and 48 CFR chapter 1.
2. Section 213.301 is revised to read as follows:
(1) Only formally appointed and trained cardholders are authorized to use the purchase card.
(2) Do not split requirements exceeding the micro-purchase threshold or the cardholder's single purchase limit into several purchases that are less than the applicable threshold in order to use the purchase card (
(3) Do not use the purchase card to issue a task or delivery order that exceeds the cardholder's single purchase limit.
(4) When ordering against a Federal Supply Schedule—
(i) Comply with the requirements of FAR 8.404 and 208.404; and
(ii) Retain best value documentation with the cardholder's purchase card file.
(5) When ordering against a blanket purchase agreement, comply with the requirements of FAR 13.303-5.
(6) For each order exceeding $2,500, comply with the reporting requirements of subpart 204.6.
(7) Do not issue purchase cards to contractors. Under certain conditions, GSA can authorize contractors to establish cards directly with the issuing bank. Refer contractors that ask for a card to GSA. A listing of GSA points of contact can be found on the Internet at:
3. Sections 213.301-70 through 213.301-72 are added to read as follows:
(a) The DoD Purchase Card Program Management Office administers the DoD Governmentwide commercial purchase card program on behalf of the Director of Defense Procurement and Acquisition Policy. Specific procedures and guidelines for the program can be found in the following documents:
(1) DoD 7000.14-R, Financial Management Regulation, volume 10, chapter 10, section XXXX, available on the Internet at
(2) DoD Purchase Card Concept of Operations, available on the Internet at
(b) Agency heads are responsible for ensuring that management controls are in place for proper use of the card. Local commanders are responsible for ensuring that the local purchase card program maintains internal controls that support proper use of the card.
(c) The penalties for purchase card misuse or abuse by civilian or military members may include, but are not limited to, reprimand, dismissal, and/or imposition of fines or other criminal penalties.
(a) “United States,” as used in this section, means the 50 States and the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, the Commonwealth of the Northern Mariana Islands, Guam, American Samoa, Wake Island, Johnston Island, Canton Island, the outer Continental Shelf lands, and any other place subject to the jurisdiction of the United States (but not including leased bases).
(b) An individual appointed in accordance with 201.603-3(b) also may use the Governmentwide commercial purchase card to make a purchase that exceeds the micro-purchase threshold but does not exceed $25,000, if—
(1) The purchase—
(i) Is made outside the United States for use outside the United States; and
(ii) Is for a commercial item; but
(iii) Is not for work to be performed by employees recruited within the United States;
(iv) Is not for supplies or services originating from, or transported from or through, sources identified in FAR Subpart 25.7;
(v) Is not for ball or roller bearings as end items;
(vi) Does not require access to classified or Privacy Act information; and
(vii) Does not require transportation of supplies by sea; and
(2) The individual making the purchase—
(i) Is authorized and trained in accordance with agency procedures;
(ii) Complies with the requirements of FAR 8.001 in making the purchase; and
(iii) Seeks maximum practicable competition for the purchase in accordance with FAR 13.104(b).
(c) A contracting officer supporting a contingency operation as defined in 10 U.S.C. 101(a)(13) or a humanitarian or peacekeeping operation as defined in 10 U.S.C. 2302(8) also may use the Governmentwide commercial purchase card to make a purchase that exceeds the micro-purchase threshold but does not exceed the simplified acquisition threshold, if—
(1) The supplies or services being purchased are immediately available;
(2) One delivery and one payment will be made; and
(3) The requirements of paragraphs (b)(1) and (2) of this subsection are met.
(a) Convenience check purchases are subject to the same policies and responsibilities as are applicable to the Governmentwide commercial purchase card. See the DoD Financial Management Regulation, volume 10, chapter 10, section XXXX, for the procedures for convenience check purchases.
(b) Use a convenience check only when—
(1) The amount of the purchase is $2,500 or less (however,
(2) Use of the Governmentwide commercial purchase card is not feasible;
(3) Maximum efforts have been made to find and use vendors that accept the Governmentwide commercial purchase card;
(4) All alternatives to accomplish the same purpose have been evaluated; and
(5) A convenience check has been determined to be the most advantageous method of purchase.
(c) Write convenience checks only for the amount of the purchase.