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CHAPTER 1201

FEDERAL ACQUISITION REGULATIONS SYSTEM

SUBCHAPTER 1201.1--PURPOSE, AUTHORITY, ISSUANCE

1201.101 Purpose
.


The Department of Transportation Acquisition Manual (TAM) is issued by the Senior Procurement Executive (SPE), Office of the Senior Procurement Executive (OSPE). It establishes for the Department of Transportation (DOT) uniform internal operating acquisition procedures, which implement or supplement the Federal Acquisition Regulation (FAR) and the Transportation Acquisition Regulation (TAR), other agency regulations and statutory requirements.

1201.102 Statement of guiding principles for the Federal Acquisition System.

(a) To create a world class acquisition system that delivers best value products or services to the customer, each OA must follow DOT's Procurement Performance Management System (PPMS) including its policy principles. This system was developed in partnership with and is maintained by the Procurement Management Council (PMC).  Implementation of the PPMS is the responsibility of the Head of the Contracting Activity (HCA).

1201.103 Authority.

The TAM is issued pursuant to DOT Order 4200.18 series, Establishment of a Transportation Acquisition Manual.

1201.104 Applicability.

All acquisitions within the Department are to follow this manual unless otherwise excluded by the FAR, TAR, or this manual.

1201.105 Issuance.

1201.105-170 Publication of TAM.

This manual is issued electronically on the internet at www.dot.gov/ost/m60/earl/tam.htm.

1201.105-270 Arrangement of TAM.

(b) Numbering. (1) This manual conforms to the arrangement and numbering system prescribed by (FAR) 48 C.F.R. 1.105. The numbering illustrations at (FAR) 48 C.F.R. 1.105-2(b) are equally applicable to this manual. TAM addresses the specific paragraphs for which supplementation or implementation applies. For example, this paragraph supplements (FAR) 48 C.F.R. 1.105-2(b)(1); therefore, the only paragraphs cited in TAM 1201.105-270 would be paragraphs (b) and (1).

(2) TAM coverage is identified by the prefix "12" and followed by the complete TAM cite which may be as specific as the paragraph level (e.g., TAM 1201.105-3(a)).

(3) Coverage in the TAM that supplements the FAR will use chapter, subchapter, section and subsection numbers ending in "70" through "89" (e.g., TAM 1201.105-270).

(4) Coverage in the TAM, other than that identified with a "70" or higher number, that implements the FAR or TAR will use the identical number sequence and caption of the FAR or TAR segment being implemented which may be down to the paragraph level (e.g., TAM 1201.602-3(a)).

(c) References and citations. This manual may be referred to as the Transportation Acquisition Manual or the TAM. Cross references to the FAR, TAR, or TAM in this manual will be cited by "FAR", "TAR", or "TAM" followed by its numbered cite. As an electronic document, the TAM contains many links (identified by blue print) to the word or term referenced in the text. An Electronic Acquisition Reference Library (EARL) is also available to research words or terms referenced or cited within the TAM. The EARL is internet-based, maintained by OSPE, and is available via the internet at http://www.dot.gov/ost/m60/elecacq.htm.

1201.105-3 Copies.

(a) The TAM is issued electronically through the E-TAM and available via the internet at http://www.dot.gov/ost/m60/earl/tam.htm. Hardcopies can only be obtained by downloading the TAM since individual hardcopy distribution of the TAM is not made.

1201.106 OMB Approval Under the Paperwork Reduction Act. Prior to obligating funds and entering into a contractual agreement for information collection activities, the contracting officer shall obtain a clearance and approval from OMB. The SF-83, Request for OMB Review, shall be used to request OMB's review and approval. Operating administration (OAs) Paperwork Clearance Officers are available to assist in preparing the information collection justification for the SF-83.

(a) Data collection under proposed contracts. SF-83s must be forwarded to the Office of the Chief Information Officer (CIO), (S-80), for processing to OMB. Early coordination with Paperwork Clearance Officers and S-81 prior to release of the solicitation should prevent delays caused by the requirement to obtain OMB approval.

(b) Data collection under TAR Supplements. An SF-83, along with the calculations used to derive the numbers shown on the SF-83, shall be forwarded to the SPE along with the proposed TAR Supplement coverage (see TAM 1201.304) for coordination with S-81.

SUBCHAPTER 1201.2--ADMINISTRATION

1201.202-70 Departmental compliance with the FAR, TAR, and TAM.


Personnel with questions concerning the FAR, TAR, and TAM may utilize the Listing of Responsible SPE Office Personnel for FAR, TAR, and TAM to identify the appropriate individual to contact within OSPE by Part/Chapter.

SUBCHAPTER 1201.3--AGENCY ACQUISITION REGULATIONS

1201.301 Policy.


(a)(1) Delegations of FAR procurement authority. The following is applicable with respect to delegations of procurement authority within DOT:

(i) Agency head delegations. There are certain (FAR) 48 C.F.R. functions which are non-delegable and reserved by the Secretary and there are some functions that can be delegated. All reserved and delegated functions (either to the Office of the Secretary (OST) or the OAs) to one or more individuals are reflected in the applicable chapters of this manual usually by the words “is non-delegable,”  “is authorized” or “is the individual authorized.”

(A) For those functions that are delegated, the chapters indicate the lowest organizational level for performance of that function. The delegated levels reflected in this manual may be changed to an equivalent or higher level by the Assistant Secretary for Administration or other responsible OST official for OST assigned functions and by the Head of the Operating Administration (HOA) for OA assigned functions. For example, the HOA may change the “debarring official” in TAM 1209.403 from the HCA to the higher HOA level.

Any changes by the HOA to the delegated levels reflected in this manual must be in writing and stored in a centralized location within the OA. A copy of the delegation must be submitted to the SPE upon request.

(B) Lower organizational levels for FAR and TAR agency head functions must be authorized by the SPE (who will coordinate with other OST officials as deemed appropriate).

(ii) Head of the Contracting Activity (HCA) functions. There are certain (FAR) 48 C.F.R. functions which are non-delegable and reserved for the HCA or equivalent organizational level; these reserved functions are reflected in the applicable chapter of this manual. For delegable functions, compliance with the level reflected in the applicable chapter of this manual or the TAR is required unless otherwise authorized by the HCA.

(A) Notwithstanding the above, the HOA or designee at an organizational level equal to or above the HCA may retain both delegable and non-delegable functions assigned to the HCA.

(B) Approved HCA functional delegations which are different from those specified in this manual shall be in writing and stored in a centralized location within the OA. A copy of the delegation shall be submitted to the SPE within 30 days of issuance.

(iii) Any other authorities of this manual besides those mentioned in TAM 1201.301(a)(1)(i) or (ii)  may be authorized to a higher level within the OA than that stipulated in this manual unless specified otherwise. Any authorities assigned or re-delegated pursuant to this paragraph shall be in writing and stored in a centralized location within the OA. A copy of the assignment/re-delegation shall be submitted to the SPE upon request.

1201.301-70 Amendment of TAM.

(a) TAM changes may be the result of suggestions by DOT personnel, other Government agencies, or the public. Proposed changes to this manual, along with rationale for the change, must be submitted in accordance with the format requirements of Transportation Acquisition Regulation 1201.301-70 and submitted to the Department of Transportation, Office of the Senior Procurement Executive (M-60), 400 7th Street, S.W., Washington, D.C. 20590 or by contacting the responsible SPE staff member by electronic mail (see TAM 1201.202-70).

(b) Updates to the TAM will be summarized in a TAM NOTE published via the internet at http://www.dot.gov/ost/m60/.  When the TAM NOTE is issued, the electronic TAM is simultaneously updated to incorporate the changes.

(c) The TAM is maintained by OSPE in electronic form. Maintenance of the TAM will be made through the TAR/TAM change process.

(1) TAM Chapters. This manual will contain internal DOT acquisition procedures within chapters that supplement or implement FAR and TAR material. Chapters are normally coordinated through the TAR/TAM change process prior to issuance.

(2) TAM Notices.

(i) TAM Chapters will be amended by issuance of a TAM Notice (also referred to as a TAM NOTE);

(ii) TAM Notices are: (A) used to disseminate information that is relevant to the TAM; and (B) normally integrated into the TAM. TAM Notices may occasionally contain new material that must be issued quickly without going through the TAR/TAM change process before their release. However, subsequent to their issuance, these TAM NOTES will be disseminated for comment.

(3) TAM Appendices, Attachments, and Exhibits. At the end of TAM Chapters, Notices, and Bulletins, appendices may be used to provide supplementary material not suitable for insertion in the TAM issuance itself (e.g., tables, other agency issuances).  Appendices may contain attachments with or without exhibits.  Attachment(s) supplement the appendix, and exhibit(s) supplement the attachment. Both are made part of the appendix. TAM appendices do not necessarily follow the format and numbering system of this manual. Additional information is available on EARL.

1201.301-71 Effective date.

Unless otherwise stated, the following applies--

(a) Statements in TAM NOTEs to the effect that the material therein is "effective upon receipt," "upon a specified date," or that changes set forth in the document are "to be used upon receipt," mean that any new or revised procedures or forms shall be used when issuing solicitations, contracts, or modifications thereafter; and

(b) If solicitations are already in process or negotiations complete when the TAM NOTE is received, the new procedures or forms need not be used if it is determined by the Chief of the Contracting Office (COCO) that it would not be in the best interest of the Government.

1201.301-72 TAM NOTE numbering.

TAM NOTEs will be numbered consecutively on a fiscal year basis beginning with number "01" prefixed by the last two digits of the fiscal year.

1201.301-73 TAR/TAM change process.

(a) General. The Procurement Management Council (PMC) is an integral part of the TAR/TAM change process. Changes to this manual or the TAR that effect more than one OA are made through coordination with the PMC and other applicable DOT offices.

(b) Process. The TAR/TAM change process involves the formulation of policies and procedures through a comment process. The OSPE uses various methods (e.g., electronic media, hard copy, and discussions) to solicit and resolve comments on proposed TAM revisions.

(1) The PMC is responsible for--

(i) Reviewing proposed TAM changes and providing comments to the SPE or SPE's staff, or recommending solutions to the SPE on acquisition issues;

(ii) Recommending policies and procedures to the SPE for consideration; and

(2) The OSPE is responsible for--

(i) Formulating and distributing proposed changes;

(ii) Soliciting comments from the PMC and other interested and affected DOT offices; and

(iii) Reviewing and resolving all comments or forwarding them to the PMC for resolution.

1201.304 Agency control and compliance procedures.

(a) DOT's goal is to ensure the TAR and TAM are consistent with (FAR) 48 C.F.R. unless (FAR) 48 C.F.R. prescribes otherwise. Due to the lead-time necessary to implement (FAR) 48 C.F.R. changes, conflict or inconsistency may momentarily exist. In those cases, the (FAR) 48 C.F.R. takes precedent over the TAR and TAM.

(b) OA acquisition regulations. OA acquisition regulations shall:

(1) Be incorporated into the TAR as a supplemental regulation;

(2) Be coordinated in accordance with OA internal procedures (including review by legal counsel with evidence of such a review) to ensure compliance with (FAR) 48 C.F.R. 1.301 and DOT's rule-making process before submission to the SPE;

(3) Be submitted to the SPE for review and approval by a transmittal letter signed by an official with a rank no lower than an Associate Administrator or Flag Officer, or equivalent, before proceeding to the public comment process at the initial stages of the regulatory process; include a Paperwork Reduction Act (see TAM 1201.404(a)(2)) and Regulatory Flexibility Act analysis, as appropriate; and a justification supporting the need for the regulation;

(4) Be integrated within the TAR and be available via the internet at http://www.dot.gov/ost/m60; and

(5) Pertain only to that OA.

(c) OA acquisition procedures. OA acquisition procedures shall:

(1) Contain no material which unnecessarily repeats, paraphrases, or is inconsistent with the contents of the FAR, TAR, and this manual;

(2) Be consistent with the policies and procedures of the FAR, TAR, this manual, and other Departmental guidance and follow the format, arrangement, and numbering system specified in TAM 1201.105-270 and TAM 1201.301-70 to the extent practicable; and

(3) Be reviewed, as deemed appropriate, in accordance with internal operating procedures and the following:

(i) OAs shall advise the OSPE in writing (by topic) of their intent to promulgate acquisition guidance implementing or supplementing this manual.  OAs will be advised of any procedures that are to be provided to the OSPE for review.

(ii) The HCA is responsible for ensuring that OA contracting offices limit their promulgation of acquisition procedures and, if procedures are necessary, to ensure they comply with paragraphs (1) and (2) of this section.

SUBCHAPTER 1201.4-70--DEVIATIONS FROM THE FAR, TAR, AND TAM

1201.403 Individual deviations.


Requests for individual deviations from the FAR, TAR, and this manual can be granted. The HCA or designee, who must have a rank that is no lower than that of a Senior Executive Service (SES) official or of a Flag Officer level, is authorized to approve individual deviations to this manual, except when this authority has been otherwise assigned by regulation (see (FAR) 48 C.F.R. 1.405 regarding requests for deviations from Treaty requirements), statute (e.g., most Cost Accounting Standard (CAS) deviations must be granted by the CAS Board), or this manual. All deviation requests shall:

(a) Be coordinated with legal counsel with evidence of coordination;

(b) Cite the specific part of the FAR, TAR, or this manual from which a deviation is required;

(c) Set forth the nature of the deviation(s); and

(d) State the reasons for the action requested.

1201.404 Class deviations.

(a) The SPE is the individual authorized to grant class deviations unless (FAR) 48 C.F.R. 1.405(e) is applicable. Requests for class deviations to the FAR, TAR, and this manual shall be endorsed by the HCA or designee no lower than the SES/Flag Officer level, before submitting the request to the SPE for approval. Requests submitted shall include the same type of information as required for individual deviations in TAM 1201.403.

(2) Suggested changes to the FAR, TAR, and this manual shall be transmitted to the SPE after review and approval of the manager of the office requesting the change (e.g., COCO). Those FAR recommended changes determined appropriate by the SPE will be forwarded by OSPE to the Civilian Agency Acquisition Council in accordance with (FAR) 48 C.F.R. 1.404.

SUBCHAPTER 1201.6--CAREER DEVELOPMENT, CONTRACTING AUTHORITY AND RESPONSIBILITIES

1201.601 General.


The HOA is authorized to establish contracting activities and delegate broad authority to manage the agency's contracting functions to heads of such contracting activities (HCA).  Establishing a new contracting activity must be coordinated with DOT’s SPE. The Secretary, Deputy Secretary, Assistant Secretary for Administration (OST), SPE, HOAs and HCAs (see EARL for current HCAs) shall be considered contracting officers within DOT by virtue of their positions; no Certificate of Appointment (see TAM 1201.603-3) is required. All other DOT contracting officers shall be selected and appointed under TAM 1201.603.

The Clinger-Cohen Act, P.L. 104-106, and the Office of Federal Procurement Policy, Policy Letter 97-01, direct the implementation of mandatory training, education, and experience requirements for entry and accession in the acquisition career field. The Department of Transportation Acquisition Career Development Policy For Contracting Professionals establishes procedures for the implementation of these requirements and other career development efforts. This document is issued under the authority of TAM 1201.103 as a supplement to TAM Chapter 1201, and is available via the internet at www.dot.gov/ost/m60/workforce/guide.htm.   This policy also includes, as Appendix I, the U.S. Department of Transportation Contracting Officer Technical Representative (COTR) Training Standards.


1201.602 Contracting officers.

1201.602-2 Responsibilities.


Contracting officers may only delegate their responsibilities to an authorized representative(s) such as a Bankcard recipient or a COTR. Any delegation of responsibility must be in writing to specified individuals (by name, not position) and clearly enumerate the delegated responsibilities and any limitations attached thereto. Selection, training, certification, and appointment of COTRs are discussed in TAM 1242.70 and in OA policy.

1201.602-3 Ratification of unauthorized commitments.

(a) Definitions.

(1) "Ratifying official" means the official who may authorize a contract award, purchase order, or other procurement instrument providing for the ratification of an unauthorized commitment.

(2) "Unauthorized commitment", as defined in (FAR) 48 C.F.R. 1.602-3, includes, but is not limited to, any action by a person other than the contracting officer that results in: (i) continued performance by a contractor beyond the expiration date or the price established by the procurement instrument; or (ii) the commencement of performance of work in advance of issuance of a formal procurement instrument properly executed by a duly authorized contracting officer.

(b) Policy.

(2) The authority of the HCA under (FAR) 48 C.F.R. 1.602-3(b)(2) to ratify an unauthorized commitment remains with the HCA unless re-delegated to an organizational level no lower than the COCO in accordance with (FAR) 48 C.F.R. 1.602-3(b)(3).

(c) Limitations.

(7) The following procedures shall be used for ratification of an unauthorized commitment:

(i) The individual who is responsible for actions that result in an unauthorized commitment must provide the following information to the ratifying official:

(A) A description of the circumstances that resulted in an unauthorized commitment;

(B) The reasons why normal procurement procedures were not followed;

(C) A description of the bona fide Government requirement that made the commitment necessary;

(D) The benefit(s) received by the Government;

(E) The dollar value of the commitment and whether the costs were reasonable in relation to the contractor's effort, the hours expended, the services or supplies received, type of labor used, and other costs, as appropriate;

(F) The basis for selecting the contractor and identify other sources considered, if any;

(G) Status of performance;

(H) Any other pertinent facts regarding the circumstances that resulted in an unauthorized commitment;

 

(I) Any invoices, receiving report, or other documentary evidence related to this transaction;

(J) The signature, following the above information, of the individual responsible for the unauthorized commitment certifying that the information provided is accurate;

(J) Any recommendations regarding corrective action that will preclude the situation from recurring; signed by the responsible individual’s Division Director (or equivalent); and

(K) A complete procurement request, Form DOT F 4200.1, Procurement Request, that includes a certification stating that the purchase request funds for the ratifying action were available at the time the unauthorized commitment occurred as well as the time the unauthorized commitment is ratified.

(ii) If the individual responsible for the unauthorized commitment is not available, the office to which the responsible individual was assigned shall provide the information described in paragraph (i) above with the name (vice signature) of the individual responsible for the unauthorized commitment.

(iii) A written contract, as defined under (FAR) 48 C.F.R. 2.101, is not required to confirm the ratification of an unauthorized commitment. The contracting officer shall decide if a contract or other written means would be appropriate for a particular situation on a case-by-case basis. Factors such as furnishing Government property, promise of product delivery, dispute over invoiced prices, etc., are to be considered when determining whether or not a contract is appropriate.

(A) Before ratification of an action, a letter requesting payment or an invoice from the contractor who provided the supply or service must be received.
 
(B) The complete ratification file shall be submitted for legal review before it is submitted to the ratifying official.  Secretarial offices shall submit the file to the Office of the General Counsel (C-10); OAs shall submit the file to their respective Chief Counsels.

(C) The ratifying official shall determine whether ratification is appropriate based on a complete file containing all the ratification documentation requirements of paragraph (c)(7)(i).

(D) A memorandum signed by the contracting officer that approves the invoice shall be sent to the finance office along with the invoice. The original certified Form DOT F 4200.1, Procurement Request, (covering the total amount of the invoice), a copy of the ratifying official's ratification, and the document confirming the ratification (see paragraph (iii) of this section), shall be attached to the memorandum.

(E) A copy of the memorandum, Form DOT F 4200.1, invoice, and original ratification documentation shall be retained in the contract office file.

(F) A letter explaining the disposition of the unauthorized commitment shall be sent to the contractor by the contracting officer if payment will not be made.

(iv)  Each contracting office shall establish a file to ensure those actions for which ratification was requested can be identified and the documentation listed in (A) through (G) of this paragraph (iv) can be located.  The contracting office shall establish appropriate administrative, technical and physical safeguards to insure the security and confidentiality of these files.  Each ratification request must be retained for 6 years and 3 months after final payment or after the ratifying official determines that the action will not be ratified.  The file pertaining to a ratification action must contain the following:

 

(A) The name of the individual responsible for the unauthorized commitment and the name of the office to which he or she was assigned;

(B) A brief description of the commitment, the amount of the action, and a written determination, with supporting documentation, that either the request should not be ratified or that the ratified price is fair and reasonable;

(C) The name of the firm or person to whom the commitment was made (if not in the ratification document);

(D) The date the commitment was either ratified (if not in the ratification document) or not ratified;

(E) A copy of the ratification document as applicable;

(F) Evidence of legal counsel concurrence with any ratification that is 10 percent or more of the small purchase limitation; and

(G) Any disciplinary action taken or an explanation as to why none was considered necessary.

 

(d)  Nonratifiable commitments.  If an unauthorized commitment is disapproved for ratification, the contracting officer shall promptly notify the individual responsible for the unauthorized commitment, in writing, stating the reasons for disapproval and recommending the individual obtain legal advice.  The contracting officer must also advise the employee that the Government will not pay for the nonratifiable commitment.  The responsible individual may be held personally liable for the full amount of the unauthorized commitment.    If the unauthorized commitment involves the Purchase Card or payment has already been made via the SMART PAY program, the Government may bill the responsible employee or take other reimbursement action.

1201.603 Selection, appointment, and termination of appointment.

1201.603-1 General.

The HCA shall appoint COCOs for the OA.  Individuals designated as COCOs are considered contracting officers and shall be appointed by their respective HCA.  The HCA is authorized to select, appoint, and terminate the appointment of contracting officers.  The HCA may re-delegate this authority to a level no lower than that of the COCO.

1201.603-2 Selection.

Personnel shall be selected as contracting officers using the guidance under the DOT Acquisition Career Development Policy for Contracting Professionals issued as a supplement to TAM Chapter 1201 and available via the internet on the DOT Acquisition and Grants Homepage at www.dot.gov/ost/m60/.

1201.603-3 Appointment.

(a) The delegation of contracting authority is by formal contracting officer appointments under a Certificate of Appointment, SF 1402.

(b) The appointing authority shall maintain information on the limits of contracting officer authority.

1201.603-4 Termination.

The appointing authority (see TAM 1201.603-1) may terminate the appointment of a contracting officer at any time by giving a written notice stating the reasons for, and the effective date of, the termination.

1201.670 Responsibility of other Government personnel.

(a) Responsibility for the decision of what to buy and when to buy rests mainly with program and certain staff offices. Responsibility for determining how to buy, the conduct of the buying process, and execution of the contract rests with the contracting officer.

(b) Program personnel, using the contracting process to accomplish their programs, must support the contracting officer by ensuring that:

(1) Requirements are clearly defined and specified;

(2) Competitive sources are solicited, evaluated, and selected;

(3) Quality standards are prescribed and met;

(4) Performance or delivery is timely;

(5) Prices, estimated costs, and fees are reasonable; and

(6) Files are documented to substantiate the judgments, decisions, and actions taken.

1201.671 DOT's procurement performance assessment role.

The performance of DOT contracting activities shall be assessed periodically to determine how they are performing their fiduciary responsibility and if they are achieving the primary goal of the acquisition system—to deliver best value products and services on a timely basis to meet the needs of the transportation systems. The OSPE utilizes DOT's Procurement Performance Management System (PPMS) to gauge the Department's performance progress.

SUBCHAPTER 1201.7--DETERMINATIONS AND FINDINGS

1201.704 Content.


The format and content requirements for determinations and findings (D&Fs) are specified in the associated subject text of this manual as considered necessary. The contracting officer is responsible for preparing D&Fs, and requirements and technical personnel are responsible for the accuracy and adequacy of the supporting factual information, which shall be furnished to the contracting officer.