FAR 13.001—Definitions.
Plain-English Summary
FAR 13.001 provides the core definitions used in FAR Part 13, which governs simplified acquisition procedures. This section defines four key terms: authorized individual, Governmentwide commercial purchase card, imprest fund, and third party draft. These definitions matter because they identify who may make purchases, what payment tools may be used, and how small-dollar acquisitions can be paid for under streamlined procedures. In practice, the definitions set the boundaries for agency purchasing authority, payment methods, and cash-handling arrangements, helping contracting personnel and other authorized buyers use simplified acquisition tools correctly and consistently. The section also points readers to Treasury guidance for third party drafts, showing that payment practices under Part 13 must align with broader financial management rules.
Key Rules
Authorized buyers only
An authorized individual is someone granted authority under agency procedures to acquire supplies and services under FAR Part 13. Agencies must control who receives this authority, and purchases made by unauthorized personnel are not covered by this definition.
Purchase card definition
A Governmentwide commercial purchase card is a card, similar to a commercial credit card, issued to authorized agency personnel for both acquiring and paying for supplies and services. The definition confirms that the card is a procurement and payment tool, not just a payment mechanism.
Imprest fund basics
An imprest fund is a fixed cash fund established by an advance from an agency finance or disbursing officer to a duly appointed cashier, without charge to an appropriation. It is used to make cash payments for relatively small amounts as needed.
Third party draft use
A third party draft is an agency bank draft, similar to a check, used to acquire and pay for supplies and services. The definition ties this payment method to Treasury financial management guidance, which must be followed when it is used.
Agency procedures control authority
The definition of authorized individual expressly depends on agency procedures. That means each agency must establish and follow its own internal rules for delegating purchasing authority under Part 13.
Responsibilities
Agency
Establish procedures for granting purchasing authority, designate who may use purchase cards or other payment methods, and ensure payment tools such as imprest funds and third party drafts are used consistently with applicable financial rules.
Authorized individual
Acquire supplies and services only within the authority granted by agency procedures and use approved payment methods only for authorized purchases.
Contracting Officer / Purchasing Official
Ensure simplified acquisition actions are performed by properly authorized personnel and that the selected payment method is appropriate for the acquisition and compliant with agency and Treasury requirements.
Agency Finance or Disbursing Officer
Advance funds for an imprest fund only as permitted, without charging an appropriation, and maintain proper financial controls over the fund.
Duly appointed cashier
Hold and disburse imprest fund cash for small payments as needed, following the limits and controls established by the agency.
Treasury / Financial Management Authorities
Provide governing guidance for third party drafts and related payment practices, including the Treasury Financial Management Manual reference cited in the definition.
Practical Implications
These definitions determine who can legally make small purchases and what payment tools can be used, so agencies should verify delegations of authority before any acquisition occurs.
The purchase card definition is broad enough to cover both buying and paying, so users must treat card transactions as procurement actions subject to internal controls, not just routine expenses.
Imprest funds are tightly controlled cash mechanisms and are generally limited to relatively small amounts; weak cash handling or poor cashier controls can create audit and fraud risks.
Third party drafts are not free-standing payment tools; users must also comply with Treasury financial management guidance, so agencies should not rely on FAR Part 13 alone.
A common pitfall is assuming that any employee can buy under simplified acquisition procedures. In reality, only personnel authorized under agency procedures may do so, and agencies should document that authority clearly.
Official Regulatory Text
As used in this part- Authorized individual means a person who has been granted authority, in accordance with agency procedures, to acquire supplies and services in accordance with this part. Governmentwide commercial purchase card means a purchase card, similar in nature to a commercial credit card, issued to authorized agency personnel to use to acquire and to pay for supplies and services. Imprest fund means a cash fund of a fixed amount established by an advance of funds, without charge to an appropriation, from an agency finance or disbursing officer to a duly appointed cashier, for disbursement as needed from time to time in making payment in cash for relatively small amounts. Third party draft means an agency bank draft, similar to a check, that is used to acquire and to pay for supplies and services. (See Treasury Financial Management Manual, Section 3040.70.)