msh guidelines for preparation of purchase orders

7/28/2019 MSH Guidelines for Preparation of Purchase Orders

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Title: Work Instructions for the Preparation of Purchase Orders

Parent SOP:PGS-SOP-001-AB: Micro Purchases of Commercial Goods and Commercial Services

Document Number: PGS-SOP-001-AB- WI4-AB

Revision: AA

Effectively Date 31 July 2010

Approved: Authorized signature on file

1.0 PURPOSEThese work instructions provide guidance on how to complete Purchase Orders for commercial goodsand/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 CommercialGoods and/or Commercial Services ($3,001 up to $100,000 U.S. or Local Currency Equivalent)

2.0 RESPONSIBILITY

2.1 The Purchasers' Supervisoris responsible for reviewing the Purchase Order to ensure that it iscompleted correctly prior to its submission to the vendor, including all applicable terms and conditions ifthe purchase is from $3,001 US up to $100,000 US, or local currency equivalent.

2.2 The Purchaseris responsible completing the Purchase Order, including all applicable terms andconditions if the purchase is from $3,001 US up to $100,000 US or local currency equivalent.

2.3 The Purchaseris responsible for ensuring that the Purchase Order, and all related supportingdocumentation for the purchase, is maintained in the Procurement files to substantiate the transaction,and to stand to internal review and donor audit.

3.0 DEFINITIONS

3.1 Purchase Order (PO) A Purchase Order is a contract between a vendor an MSH outlining thespecific 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 thataffect 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-the-shelf items which are produced and placed in stock by a vendor or stocked by a distributor, beforereceiving 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 quantitiesin the commercial marketplace based on established catalog or market prices for specific tasks performedor specific outcomes to be achieved and under standard commercial terms and conditions. Examplesinclude software on MS Word training that listed in a catalog from the entity/individual providing the


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training.

3.5 Geo Code - A geographic code (or Geo Code) is a three-digit number that for administrativepurposes identifies geographic entities--countries, territories, organizations, regions, and sub-regions--and program activities associated with geographic entities. These codes are assigned to all contracts andcooperative agreements financed by USAID and determine the source, origin, and nationality ofcommodities and services that can be procured using USAID funds.

3.6 Micro Purchase A purchase of commercial goods and/or commercial services the total of whichdoes not exceed $3,000 US or local currency equivalent.

3.7 Period of Performance The period of time in which the requested commercial goods are to bedelivered and/or the requested commercial services are to be completed.

3.8 Terms and Conditions For purchases from $3,001 US up to $100,000 US, or local currencyequivalent, the purchase order must include applicable terms and conditions. Many of the terms andconditions are mandatory, but some are dependent on the type of commercial good and/or commercialservice being procured. The terms and conditions should be filled out in accordance with theprescriptions provided.

3.9 Vendor - A dealer, distributor, merchant, or other seller providing commercial goods or commercialservices that are required for the operation of the Center, Office, COMU or Project. A vendor providesgoods and services within normal business operations; provides similar goods and services to manydifferent purchasers; and operates in a competitive environment.

3.10 Purchaser - MSH staff member assigned or delegated the authority to procure commercialgoods and commercial services

4.0 INSTRUCTIONS

4.1 Enter the Date that the Purchase Order will be sent to the vendor in the Order Datefield.

4.2 Enter the Purchase Order Number in the Purchase Order Numberfield. Note: Purchase Ordersshould be numbered consecutively and the same number should not be repeated on more than onePurchase Order.

4.3 Enter the address of the MSH office that will be issuing and paying for the order in the IssuedBy/Bill Tofield. This is the address the vendor will use when sending their invoice.

4.4 Enter the Shipping Address in the Ship Tofield. This is where the commercial goods and/orcommercial services will be delivered to. Enter the shipping method desired in the Ship Via field.

4.5 In the box labeled Issued Toinsert the name and contact information for the vendor to whom theorder is being issued..

4.6 Enter Payment Terms in the Payment Termsfield. This should be Net 30 Days unless there areextenuating circumstances.

4.7 Enter any additional guidance in the Special Instructionsconcerning shipping or billing. Thisfield may be left blank.4.8 Complete the appropriate Period of Performance line depending on whether the order is forcommercial goods or commercial services. For commercial goods you will indicate the date the goodsmust be delivered by and for commercial services you will indicate both a start date and an end date for


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the work. Note: Work cannot begin until the Purchase Order has been issued and work may not continuepast the indicated end date. If this end date needs to be changed to allow for more time then thePurchase Order must be modified and reissued.

4.9 Enter the applicable information for the commercial goods and/or commercial services being

procured. This information should come from the quote received from the winning vendor (or the onlyvendor, in instances of purchases that are under $3,000 US per transaction or local currency equivalent).

4.10 In the Item #field, enter any applicable product numbers from the manufacturer or vendor. Ifthere are no specific item numbers for the commercial goods and/or commercial services being orderednumber the items consecutively as Item#1, Item#2, etc.

4.11 Enter the quantity of Items being purchased in the Quantityfield. For commercial services beingpaid by for based on the number of hours, or days, of work enter that number in the Quantityfield.

4.12 Enter in the Unit of Measurefield a description of what the quantity refers to. For example, theunit of measure could be each, pack, page, hour, etc.

4.13 In the Descriptionfield, enter the Specifications and/or Statement of Work for the procurement..

4.14 Enter the Unit Price.

4.15 Calculate the Total by multiplying the Unit Price by the Quantity.

Calculation: Unit PriceX Quantity = Total

4.16 After all the commercial goods and/or commercial services are entered, calculate the Order Totalby adding up all of the Totals.

4.17 In the MSH Use Only section nter the project name, the charge code that will be used for thispurchase, the allocation % (if more than one code will be charged) and resulting amount.

4.18 Enter the Geo Code for the project that this purchase will be charged to. Check the box labeledLocal Procurement Clause Applies if applicable. Note: Geo code restrictions do not apply to MicroPurchases.

4.19 Enter any Miscellaneous Notesfor Procurement use only.

4.20 Purchases above $3,000 US or local currency equivalent are required to include clauses. All ofthe clauses that you may need to include in the purchase order are included in the template. While someof the clauses are required on all Pos (see section I. Purchase Order Terms and Conditions forCommercial Goods and/or Commercial Services Mandatory Terms and Conditions for all Purchases), notall of the clauses included may be applicable to the type of purchase you are issuing the PO for. TheInstructions for Filling out Terms and Conditions on the table below will help you in selecting whichclauses are applicable.

While remaining consistent with the intent and spirit of the FAR, MSH has reworded the FAR clauseslisted below for application in purchases made in the field up from $3,001 US up to $100,000 US, or LocalCurrency Equivalent. The FAR Clause Reference is not in the MSH Terms and Conditions but is listedbelow as a source in order to provide background from which MSH language was derived.


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Instructions for Filling out Terms and ConditionsAll of the terms and conditions in section I.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.

The terms and conditions in section II. 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. These terms should be reviewed before each purchase and the applicable terms should bechecked off.

MSH Clause

ReferenceClause Title

Instructions for when a clause needs to

be included

FAR Clause

Reference

IPurchase Order Terms and Conditions for Commercial Goods and/or Commercial Services

Mandatory Terms and Conditions for all Purchases

A Inspections and Acceptance

Required in all Purchase Orders

52.212-4

B ChangesC DisputesD Excusable DelaysE Invoice

F Patent IndemnityG PaymentH Risk of Loss

I TaxesJ Termination for ConvenienceK Termination for Cause

L Title

M WarrantyN Limitation of Liability

O Other Compliances

P

Compliance with Laws Unique to

Government ContractsQ Order of Precedence

R Combating Trafficking in Persons 52.222-50

SChild Labor--Cooperation with

Authorities and Remedies52.222-19

TRestriction on Certain Foreign

Purchases52.225-13

UContract Not Affected by Oral

Agreement52.247-27

V Buyer Direction

W Severability

X Waiver

Y Notices

Z Governing Law

Required in all Purchase Orders. If a

vendor is unwilling to accept this clause,

notify Headquarters and the CCO willdetermine whether or not the clause may

be removed.

AA Arbitration of Disputes

Required in all Purchase OrdersBB

Inconsistency Between EnglishVersion and Translation of Contract


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II.Purchase Order Terms and Conditions for Commercial Goods and/or

Commercial Services Contract Specific Terms and Conditions52.212-5

A Privacy or Security Safeguards

Required in Purchase Orders for

information technology which

require security of information

technology, and/or are for the

design, development, or operationof a system of records using

commercial information

technology services or supportservices.

52.239-1

BPreference for Privately Owned U.S - Flag

Commercial Vessels

Required in contracts that mayinvolve ocean transportation of

supplies.52.247-64

C ConfidentialityRequired in Purchase Orders that

may involve the vendor accessingconfidential information.

D Key Personnel

Can be inserted in PurchaseOrders when MSH wants specific

staff from the vendor working onthe Purchase Order.

E Work for HireRequired in Purchase Order when

data and materials are produced.

F Assignment of RightsRequired in Purchase Orders for

Graphic Design.

4.21 Review the Purchase Order for completeness and submit to the appropriate supervisor andhave them sign the first page of the Purchase Order in the MSH Authorized Signaturefield.

5.0 TOOLS & TEMPLATES

5.1 PGS-SOP-001-AB TS3: Purchase Order Form For Commercial Goods and/or CommercialServices Up to $3,000 U.S or Local Currency Equivalent5.2 PGS-SOP-002-AA-TS9:MSH Purchase Order Form for Purchases from $3,001 US up to$100,000 US or Local Currency Equivalent

msh guidelines for preparation of purchase orders

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