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Work Instructions for the Preparation of Purchase Orders PGS-SOP-001-AB: Micro Purchases of Commercial Goods and Commercial Services PGS-SOP-001-AB- WI4-AB AA 31 July 2010 Authorized signature on file
1.0 PURPOSE These work instructions provide guidance on how to complete Purchase Orders for commercial goods and/or commercial services and should be used in conjunction with the following SOPs: • PGS-SOP-001-AB: Micro Purchases of Commercial Goods and Commercial Services • PGS-SOP-002- AA: Simplified Acquisition Procedure (SAP) for the Procurement of Commercial Goods and/or Commercial Services ($3,001 up to $100,000 U.S. or Local Currency Equivalent)
2.1 The Purchasers' Supervisor is responsible for reviewing the Purchase Order to ensure that it is completed correctly prior to its submission to the vendor, including all applicable terms and conditions if the purchase is from $3,001 US up to $100,000 US, or local currency equivalent. 2.2 The Purchaser is responsible completing the Purchase Order, including all applicable terms and conditions if the purchase is from $3,001 US up to $100,000 US or local currency equivalent. 2.3 The Purchaser is responsible for ensuring that the Purchase Order, and all related supporting documentation for the purchase, is maintained in the Procurement files to substantiate the transaction, and to stand to internal review and donor audit.
3.1 Purchase Order (PO) – A Purchase Order is a contract between a vendor an MSH outlining the specific commercial goods and/or services being procured. For purchases from $3,001 US up to $100,000 US, or local currency equivalent, the Purchase Order must include applicable clauses that affect the procurement. 3.2 PEPFAR – Presidents Emergency Plan for Aids Relief
3.3 Commercial Goods - Any item, other than real property, that is of a type customarily used by the general public and has been sold, leased, or licensed to the general public. This also includes “off-theshelf items” which are produced and placed in stock by a vendor or stocked by a distributor, before receiving orders for its sale. Some examples of commercial goods include office supplies, computers, vehicles etc. 3.4 Commercial Services - Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions. Examples include software on MS Word training that listed in a catalog from the entity/individual providing the
merchant. 3.4 Enter the Shipping Address in the “Ship To” field. This is the address the vendor will use when sending their invoice. This field may be left blank. organizations. and nationality of commodities and services that can be procured using USAID funds.A geographic code (or Geo Code) is a three-digit number that for administrative purposes identifies geographic entities--countries.8 Terms and Conditions – For purchases from $3. 3.5 Geo Code .10 Purchaser . 4. Enter the shipping method desired in the “Ship Via” field.training. 3.0 4. 4. and sub-regions-and program activities associated with geographic entities.7 Enter any additional guidance in the “Special Instructions” concerning shipping or billing.000 US.6 Enter Payment Terms in the “Payment Terms” field.001 US up to $100. territories. The terms and conditions should be filled out in accordance with the prescriptions provided. 4. These codes are assigned to all contracts and cooperative agreements financed by USAID and determine the source. Many of the terms and conditions are mandatory.7 Period of Performance – The period of time in which the requested commercial goods are to be delivered and/or the requested commercial services are to be completed. 3. Note: Purchase Orders should be numbered consecutively and the same number should not be repeated on more than one Purchase Order. distributor. provides similar goods and services to many different purchasers. and operates in a competitive environment. 3.000 US or local currency equivalent. For commercial goods you will indicate the date the goods must be delivered by and for commercial services you will indicate both a start date and an end date for . origin.MSH staff member assigned or delegated the authority to procure commercial goods and commercial services 4.A dealer.5 In the box labeled “Issued To” insert the name and contact information for the vendor to whom the order is being issued. Office. the purchase order must include applicable terms and conditions. COMU or Project. A vendor provides goods and services within normal business operations.3 Enter the address of the MSH office that will be issuing and paying for the order in the ”Issued By/Bill To” field. or local currency equivalent. This is where the commercial goods and/or commercial services will be delivered to. This should be Net 30 Days unless there are extenuating circumstances. 4. regions.6 Micro Purchase – A purchase of commercial goods and/or commercial services the total of which does not exceed $3.1 INSTRUCTIONS Enter the Date that the Purchase Order will be sent to the vendor in the “Order Date” field. 4. 3. but some are dependent on the type of commercial good and/or commercial service being procured.9 Vendor . 4.8 Complete the appropriate Period of Performance line depending on whether the order is for commercial goods or commercial services. 4.. or other seller providing commercial goods or commercial services that are required for the operation of the Center.2 Enter the Purchase Order Number in the “Purchase Order Number” field.
. MSH has reworded the FAR clauses listed below for application in purchases made in the field up from $3.the work. Calculate the Total by multiplying the Unit Price by the Quantity.15 In the “Description” field. 4. hour. For commercial services being paid by for based on the number of hours. For example. Enter the “Unit Price”. the charge code that will be used for this purchase. the unit of measure could be each.10 In the “Item #” field. Purchase Order Terms and Conditions for Commercial Goods and/or Commercial Services – Mandatory Terms and Conditions for all Purchases). While some of the clauses are required on all Pos (see section I.. 4. Note: Work cannot begin until the Purchase Order has been issued and work may not continue past the indicated end date. If there are no specific item numbers for the commercial goods and/or commercial services being ordered number the items consecutively as Item#1. Check the box labeled “Local Procurement Clause Applies” if applicable.18 Enter the Geo Code for the project that this purchase will be charged to. of work enter that number in the “Quantity” field.17 In the “MSH Use Only” section nter the project name. enter any applicable product numbers from the manufacturer or vendor. Item#2. pack.12 Enter in the “Unit of Measure” field a description of what the quantity refers to. 4. 4.11 Enter the quantity of Items being purchased in the “Quantity” field. 4.000 US per transaction or local currency equivalent). The FAR Clause Reference is not in the MSH Terms and Conditions but is listed below as a source in order to provide background from which MSH language was derived. While remaining consistent with the intent and spirit of the FAR.9 Enter the applicable information for the commercial goods and/or commercial services being procured. Calculation: Unit Price X Quantity = Total 4.001 US up to $100. or days.20 Purchases above $3. The Instructions for Filling out Terms and Conditions on the table below will help you in selecting which clauses are applicable. 4. or Local Currency Equivalent. not all of the clauses included may be applicable to the type of purchase you are issuing the PO for. All of the clauses that you may need to include in the purchase order are included in the template.19 Enter any “Miscellaneous Notes” for Procurement use only. This information should come from the quote received from the winning vendor (or the only vendor.000 US or local currency equivalent are required to include clauses. etc. 4. etc.14 4.16 After all the commercial goods and/or commercial services are entered. If this end date needs to be changed to allow for more time then the Purchase Order must be modified and reissued. 4. calculate the “Order Total” by adding up all of the “Totals”.000 US. in instances of purchases that are under $3. page. 4.13 4. enter the Specifications and/or Statement of Work for the procurement. Note: Geo code restrictions do not apply to Micro Purchases. the allocation % (if more than one code will be charged) and resulting amount.
MSH Clause Reference I A B C D E F G H I J K L M N O P Q R S T U V W X Y Instructions for when a clause needs to FAR Clause be included Reference Purchase Order Terms and Conditions for Commercial Goods and/or Commercial Services – Mandatory Terms and Conditions for all Purchases Inspections and Acceptance Changes Disputes Excusable Delays Invoice Patent Indemnity Payment Risk of Loss Taxes 52. Governing Law notify Headquarters and the CCO will determine whether or not the clause may be removed.222-50 Child Labor--Cooperation with 52.247-27 Agreement Buyer Direction Severability Waiver Notices Required in all Purchase Orders.212-4 Termination for Convenience Termination for Cause Title Warranty Required in all Purchase Orders Limitation of Liability Other Compliances Compliance with Laws Unique to Government Contracts Order of Precedence Combating Trafficking in Persons 52. Purchase Order Terms and Conditions for Commercial Goods and/or Commercial Services – Mandatory Terms and Conditions for all Purchases should be included in every Purchase Order.225-13 Purchases Contract Not Affected by Oral 52.222-19 Authorities and Remedies Restriction on Certain Foreign 52. The terms and conditions in section II. These terms should be reviewed before each purchase and the applicable terms should be checked off.Instructions for Filling out Terms and ConditionsAll of the terms and conditions in section I. Arbitration of Disputes Required in all Purchase Orders Inconsistency Between English Version and Translation of Contract Clause Title Z AA BB . Purchase Order Terms and Conditions for Commercial Goods and/or Commercial Services – Contract Specific Terms and Conditions may or may not be applicable to each Purchase Order. If a vendor is unwilling to accept this clause.
001 US up to $100.0 TOOLS & TEMPLATES 5. development. Required in contracts that may Preference for Privately Owned U. A B C D Purchase Order Terms and Conditions for Commercial Goods and/or Commercial Services – Contract Specific Terms and Conditions Required in Purchase Orders for information technology which require security of information technology. Work for Hire Assignment of Rights Required in Purchase Order when data and materials are produced.S or Local Currency Equivalent 5.21 Review the Purchase Order for completeness and submit to the appropriate supervisor and have them sign the first page of the Purchase Order in the “MSH Authorized Signature” field.Flag involve ocean transportation of Commercial Vessels supplies.1 PGS-SOP-001-AB –TS3: Purchase Order Form For Commercial Goods and/or Commercial Services Up to $3. 5. Required in Purchase Orders that Confidentiality may involve the vendor accessing confidential information. Required in Purchase Orders for Graphic Design.000 U.II. 52.212-5 52.247-64 E F 4. and/or are for the design. or operation Privacy or Security Safeguards of a system of records using commercial information technology services or support services.2 PGS-SOP-002-AA-TS9 :MSH Purchase Order Form for Purchases from $3. Can be inserted in Purchase Orders when MSH wants specific Key Personnel staff from the vendor working on the Purchase Order.S .239-1 52.000 US or Local Currency Equivalent .