Interim Internal Purchasing Guidelines > 1 Authority, Responsibility and Policy > 1.4 Purchasing Authority

1.4 Purchasing Authority

1.4.1 Vice President, Supply Management

1.4.1.a General. The VP, SM, has unlimited contracting authority. This authority includes the authority to award and administer contracts and to carry out all related responsibilities.

1.4.1.b Contracting Authority

1. General. The VP, SM, has delegated contracting authority, including redelegation authority, throughout Postal Service purchasing organizations. An individual contracting officer's contracting and related authorities are enumerated in his or her letter of delegation (see 1.4.2).

2. Special Purchases. The VP, SM, has delegated contracting authority for certain special requirements to other Postal Service officials. Some of these delegations are set out in Exhibit 4.5.2, Supplemental Policy and Procedural Authority.

3. Local Buying Authority. In the Administrative Support Manual (ASM) the VP, SM, has delegated local buying authority to various positions throughout the Postal Service. Exhibit 1.4.1b, Local Buying Authorities, shows these delegations by position. Local buying authority is defined in 1.5.2.i.

4. Required Approvals. If a proposed contract award or modification will exceed $10 million, the VP, SM must give prior written approval to the individual purchase plan and the proposed contract award or modification (however, see 2.1.6.c.4 regarding noncompetitive purchases). The VP's written approval of the proposed contract award or modification serves as the delegation of authority required by 1.4.2.d if the proposed award or modification exceeds the contracting officer's delegated authority. See 6.9.1.b for information regarding prior VP approval of certain contract termination actions.

Exhibit 1.4.1.b
Local Buying Authorities

1.4.2 Contracting Officers

1.4.2.a General Responsibilities. Contracting officers have the authority to enter into, administer, and terminate contracts and to make related decisions. They are responsible for ensuring the performance of all actions necessary for efficient and effective purchasing, ensuring compliance with the terms of contracts, and with protecting the interests of the Postal Service in all of its contractual relationships. Operating under these guidelines (and, when necessary, seeking and gaining approval for deviations to them), contracting officers have wide latitude to exercise sound business judgment based on the competitive and business needs of the Postal Service. In meeting these responsibilities, contracting officers are expected to consult and confer with their internal business partners and purchase teams (see 1.5.2.n for a definition of purchase teams). Lastly, contracting officers are also responsible for managing supplier relationships by overseeing the integrity and effectiveness of the purchasing process, ensuring that all suppliers are treated in a business-like and objective manner, and maintaining effective communications with suppliers during contract performance.

1.4.2.b Funding Availability. Contracting officers must ensure that sufficient funding is available before taking a contractual action (such as a purchase, modification or termination) requiring additional funds.

1.4.2.c Delegations of Authority. Contracting authority is delegated to named individuals, rather than to positions, based on the individual's education, experience and training. Only individuals with this delegated authority may contractually bind the Postal Service. See Management Instruction AS-710-1999-2, Unauthorized Contractual Commitments. Information on the limits of contracting officers' authority must be readily available to the public and to Postal Service personnel. Unless specifically limited in their letters of delegation, Postal Service contracting officers may award contracts regardless of commodity group (supplies, services and equipment, design and construction and related services, and mail transportation and related services).

1.4.2.d Actions Exceeding a Contracting Officer's Delegated Authority. A contracting officer may take a contractual action (a purchase, modification, or termination) exceeding his or her authority after receiving a written delegation of authority from a contracting officer delegated and authorized to redelegate the required authority. The delegation must be placed in the contract file. When determining the appropriate redelegation authority, contracting officers must consider the anticipated total dollar value of the action.

1.4.3 Contracting Officers' Representatives

A contracting officer may delegate certain responsibilities to individuals to act on behalf of the contracting officer. These individuals are referred to as contracting officers' representatives (see also 4.4.3, 6.1.1.b, and Management Instruction PM-610-2001-1, Contracting Officer's Representative Program).

1.4.4 Appointment and Selection

1.4.4.a Appointment Authority

1. Contracting officers are appointed by the VP, SM, and by individuals delegated that authority by the VP. Appointees to the position of contracting officer levels I through IV must be career employees in good standing, and must meet the qualifications for the particular level (see 1.4.4.b.3).

2. Contracting officers must be appointed by letter and on Form 7378, Certificate of Appointment. The letter must state any limitations on the contracting officer's authority. Appointing officials must keep a record of all letters of delegation and certificates of appointment, and documentation concerning the contracting officer's education, experience and training related to the individual's CO level.

1.4.4.b Selection

1. General. Appointing officials must ensure that contracting officers are fully qualified by education, experience and training to solicit, negotiate, award, and administer contracts on behalf of the Postal Service.

2. Contracting Officer Levels. Generally, contracting authorities are grouped by contracting officer level. There are four general levels of contracting officer:

(a) Level I contracting officers. Generally, these contracting officers are delegated up to $100,000 of contracting authority, and up to the maximum limit for orders placed against indefinite delivery contracts and ordering agreements.

(b) Level II contracting officers. Generally, these contracting officers are delegated up to $1 million of contracting authority, and up to the maximum limit for orders placed against indefinite delivery contracts and ordering agreements.

(c) Level III contracting officers. Generally, these contracting officers are delegated up to $10 million of contracting authority, and up to the maximum limit for orders placed against indefinite delivery contracts and ordering agreements.

(d) Level IV contracting officers. Level IV contracting officers are delegated unlimited contracting authority.

3. Qualifications. Appointment to a particular contracting officer level requires progressively more exacting qualifications. However, all individuals nominated to be contracting officers, with the exception of those individuals nominated and holding a certification described in (a) below must have baccalaureate degrees. The individual nominated must have earned at least 24 semester hours in subjects related to purchasing, such as accounting, business finance, commercial (business) law, economics, quantitative analysis, marketing, contracting or purchasing, organization, or management. The required 24 semester hours may have been earned during the individual's pursuit of a baccalaureate degree, or at any other time. In addition, the following qualifications apply to contracting officers appointed by the VP, SM:

(a) Contracting Officer Level I:

(1) Experience: One year of experience performing substantive purchasing tasks.

(2) Education: The following professional certifications may serve as a substitute for the baccalaureate degree for level I contracting officers:

(i) Certified Professional Contract Manager from the National Contract Management Association.

(ii) Certified Purchasing Manager from the Institute of Supply Management.

(iii) Certified Public Purchasing Officer from the National Institute of Governmental Purchasing.

(3) Training: Satisfactory completion of 32 hours of formal training in each of the following subjects:

(i) Fundamentals of Supply Management.

(ii) Contracting Methods and Principles.

If the contracting officer will be delegated purchasing authority for design and construction purchases, the following Postal Service training course is also required:

(iii) Introduction to Facilities R&A Contracting (this course is available at the Postal Service's Center for Leadership Development).

Note: The formal training may be obtained through an accredited college or university, a federally sponsored program, a nationally recognized training organization, or a supply management-related professional association or organization.

(b) Contracting Officer Level II:

(1) Experience: Three years of current, progressively complex and responsible experience in performing competitive and noncompetitive purchasing (not including simplified purchasing). Generally, this experience must have been gained in intermediate level contracting positions.

(2) Training: In addition to the training requirement of 1.4.4.b.3.(a).(3), satisfactory completion of 32 hours of formal training in each of the following subjects:

(i) Negotiation Strategies.

(ii) Total Cost of Ownership/Cost and Price Analysis.

(iii) Contract Management/Administration.

(iv) Project Management.

(v) Contract Law.

If the contracting officer will be delegated purchasing authority for design and construction purchases, the following Postal Service training course is also required:

(vi) Contract Administration, Pricing, and Claims (this course is available at the Postal Service's Center for Leadership Development).

Note: The formal training may be obtained through an accredited college or university, a federally sponsored program, a nationally recognized training organization, or a supply management-related professional association or organization.

(c) Contracting Officer Level III:

(1) Experience: Five years of current, progressively complex and responsible experience in soliciting, negotiating, awarding, and administering competitive and noncompetitive purchasing actions. Ordinarily, this experience must have been in higher-level purchasing positions.

(2) Training: In addition to the training requirement of 1.4.4.b.3.(a).(3) and 1.4.4.b.3.(b).(2), satisfactory completion of 32 hours of formal training in Purchasing/Supply Management Advanced Strategic Issues.

Note: The formal training may be obtained through an accredited college or university, a federally sponsored program, a nationally recognized training organization, or a supply management-related professional association or organization.

(d) Contracting Officer Level IV. The holders of the following positions are Level IV contracting officers:

(1) Manager, Facilities Portfolio.

(2) Manager, Mail Equipment Portfolio.

(3) Manager, SM Operations.

(4) Manager, Services Portfolio.

(5) Manager, Supplies Portfolio.

(6) Manger, Supply Chain Management Strategies.

(7) Manager, Supply Management Infrastructure.

(8) Manager, Transportation Portfolio.

1.4.5 Waivers and Interim Appointments

1.4.5.a Waivers. Waivers to the qualification requirements may be requested for individuals who, due to their extraordinary experience or extraordinary circumstances, should be granted contracting officer authority. Requests must be submitted through organizational levels to the VP, SM.

1.4.5.b Interim Appointments. Ordinarily, individuals will not be appointed as contracting officers if they do not meet the relevant qualification criteria. However, when necessary, appointing officials may grant an interim appointment to an individual who has not yet completed necessary training or education. No interim appointment may exceed one year, and no interim appointment may be granted to an individual more than once if the individual fails to complete the required training or education.

1.4.6 Continuing Professionalism

All contracting officer appointments, regardless of level, must be reviewed annually by the appointing official in order to ascertain that the contracting officer has maintained professional proficiency and otherwise remains qualified. Therefore, contracting officers must:

1. Attend 21 hours of formal purchasing training covering such areas as new requirements, techniques, or policies and procedures brought about by changes in statutes, regulations, business research, or evaluations of postal purchasing practices.

2. Maintain their professionalism through (a) attendance at seminars, conferences, meetings, or other professional activities and (b) performing coursework in contracting and purchasing commensurate with their CO level and responsibilities. The appointing official will determine whether a particular CO's efforts in these areas meet the professional development requirements.

3. Sustain and expand their knowledge of the purchasing field through reading professional literature.

1.4.7 Termination

Termination of a contracting officer appointment may be made by an appointing authority or by the VP, SM. Terminations may be made for reasons such as reassignment, termination of employment, or unsatisfactory performance. The termination must indicate the effective date of termination. Termination of employment automatically terminates a contracting officer's appointment. Terminations may not be made retroactively.