All purchase plans for competitive and noncompetitive contracts valued at $1 million or more must be reviewed and approved by the appropriate approval authority and included in the contract file. Unless other arrangements have been made and approved by the appropriate authority, the purchase plan review and approval must be done (1) before the prequalification of potential suppliers, (2) prior to the solicitation issuance (unless approval has already been received because of prequalification), or (3) once the appropriate authority has approved a noncompetitive purchase recommendation (the Noncompetitive Purchase Request must be approved and included with the purchase plan – see Section 2-41.2.3, Review and Approval Process for Competitive Actions). If, during the supplying process and subsequent to the approval of the purchase plan, market conditions, Postal Service requirements, or other factors change to an extent that the plan must be substantially revised, the revised plan must also be reviewed and approved by the appropriate authority. When determining the appropriate level of review and approval authority for the purchase plan, contracting officers must use their business judgment to estimate the probable total dollar value of the action or contract type, such as an indefinite delivery contract or ordering agreement. The estimated dollar value must include any foreseeable extensions, such as options or renewals, which may increase the value of the contract beyond the initial term or quantity.
Note: When a purchase plan valued between $1 million and $10 million includes a life cycle support plan (see Section 2-11, Develop Life-Cycle Support Plan), that plan must be reviewed and approved by manager, Asset Management Planning. When a purchase plan valued at more than $10 million includes a life cycle support plan, that plan must be reviewed and approved by the manager, Asset Management.
Contract awards or modifications valued at less than $250,000 require no further reviews and approvals beyond that of the contracting officer. Contract awards or modifications valued at $250,000 or more but less than $10 million, and purchase plans valued at $1 million or more, must be reviewed and approved by a contracting officer who is a team leader or manager in the purchasing organization who has a sufficient amount of contracting authority to perform the action being reviewed. If no contracting officer at the purchasing organization has a sufficient amount of authority to perform the review and approval, the review and approval must be performed by the applicable Portfolio manager. In no case may the individual seeking the review and approval be the same individual performing the review and approval. Purchase plans, contract awards, and modifications valued at $10 million or more must be reviewed and approved by the VP, SM.
When determining the appropriate level of review and approval authority for the initial award, contracting officers must use their business judgment to estimate the probable total dollar value of the action or contract type, such as an indefinite delivery contract or ordering agreement. The estimated dollar value must include any foreseeable extensions, such as options or renewals, which may increase the value of the contract beyond the initial term or quantity. The appropriate approval authority for any actions subsequent to award will depend on the dollar value of the individual action.
The review of a competitive contractual action must focus on the following:
The reviewer must signify his or her review approval for the record. Questions and recommendations, and their disposition that result from the review should be included in the contract file by the contracting officer.
These reviews do not apply to administrative modifications (unless the modification involves a termination action) including incremental funding actions, or task orders or delivery orders issued against an existing contract.
The review of a noncompetitive contractual action must focus on the following:
The approval authority must signify his or her approval for the record. Questions and recommendations, and their disposition that result from the review must be documented in writing by the approval authority and included in the contract file by the contracting officer.
These reviews do not apply to administrative modifications (unless the modification involves a termination action) including incremental funding actions, or task orders or delivery orders issued against an existing contract.
