FAR 13.101—General.
Plain-English Summary
FAR 13.101 explains the basic operating rules for purchases made under simplified acquisition procedures. It covers four mandatory actions for contracting officers: following the economic purchase quantity policy in FAR 7.202 when practicable, using the Certificate of Competency process before rejecting a small business concern as nonresponsible, and arranging inspection of supplies or services under FAR 46.404. It also identifies four strong preferences or best practices: combining related items into one solicitation and using all-or-none or multiple-award approaches when appropriate, incorporating provisions and clauses by reference in RFQs and awards when the FAR allows, seeking trade and prompt payment discounts, and using bulk funding to the maximum extent practicable. In practice, this section is about making small purchases more efficient while still protecting competition, small business rights, quality assurance, and fiscal controls. It tells contracting officers how to streamline buying without skipping required responsibility determinations, inspection, or funding discipline. For contractors, it signals that even simplified buys still may involve bundled requirements, referenced clauses, discount opportunities, and inspection requirements.
Key Rules
Follow economic purchase policy
Contracting officers shall comply with FAR 7.202 on economic purchase quantities when practicable. This means considering whether buying in larger quantities or on a more economical basis makes sense, rather than automatically making small, repeated purchases.
Use COC procedures first
Before rejecting a quotation from a small business concern as nonresponsible, the contracting officer must satisfy the Certificate of Competency procedures in FAR subpart 19.6. A small business cannot be finally rejected for nonresponsibility until the Small Business Administration COC process has been followed where applicable.
Provide required inspection
Contracting officers must provide for inspection of supplies or services as prescribed in FAR 46.404. Even in simplified acquisitions, the government must ensure it has an appropriate inspection approach to verify contract performance and acceptability.
Combine related items when sensible
Contracting officers should include related items in one solicitation and may award on an all-or-none or multiple-award basis if suppliers are told this up front. This is intended to improve efficiency and reduce administrative cost when items are naturally grouped.
Use clauses by reference
Contracting officers should incorporate provisions and clauses by reference in solicitations and awards under RFQs when the requirements of FAR 52.102 are met. This helps keep purchase documents concise while still making the applicable terms binding.
Seek discounts aggressively
Contracting officers should make maximum effort to obtain trade and prompt payment discounts, but prompt payment discounts must not be used in evaluating quotations. The goal is to improve price outcomes without distorting source selection.
Use bulk funding when practical
Contracting officers should use bulk funding to the maximum extent practicable. Bulk funding allows a contracting officer to obligate against a reserved lump sum for a period of time, which is especially useful when many similar purchases will be made.
Responsibilities
Contracting Officer
Apply the economic purchase quantity policy when practicable; follow SBA Certificate of Competency procedures before rejecting a small business as nonresponsible; ensure inspection arrangements are in place; structure solicitations to combine related items when appropriate; use clauses and provisions by reference when allowed; pursue trade and prompt payment discounts; and use bulk funding to the maximum extent practicable.
Small Business Concern
If found nonresponsible, may be entitled to SBA Certificate of Competency consideration before final rejection. The concern should be prepared to respond to responsibility issues through the COC process.
Fiscal and Accounting Officer
Authorize bulk funding by reserving a lump sum of funds for a specified period and allowing the contracting officer to obligate against that reserve on purchase documents.
Suppliers/Offerors
Be advised when solicitations will use all-or-none or multiple-award approaches for related items, and submit quotations with awareness that prompt payment discounts will not be evaluated as part of price comparison.
Practical Implications
This section is a reminder that simplified acquisitions are still governed by core procurement controls; speed does not eliminate responsibility determinations, inspection, or funding rules.
Contracting officers should not reject a small business as nonresponsible without checking whether the SBA COC process applies, because skipping that step can invalidate the rejection.
When buying related items, bundling can reduce administrative burden, but only if the solicitation clearly tells vendors whether award will be all-or-none or multiple award.
Prompt payment discounts can be pursued as a savings tool, but they cannot be used to make one quotation look better than another during evaluation.
Bulk funding can greatly speed repetitive buys, but it requires coordination with fiscal staff and careful tracking so obligations stay within the reserved amount and period.
Official Regulatory Text
(a) In making purchases, contracting officers shall- (1) Comply with the policy in 7.202 relating to economic purchase quantities, when practicable; (2) Satisfy the procedures described in subpart 19.6 with respect to Certificates of Competency before rejecting a quotation, oral or written, from a small business concern determined to be nonresponsible (see subpart 9.1 ); and (3) Provide for the inspection of supplies or services as prescribed in 46.404 . (b) In making purchases, contracting officers should- (1) Include related items (such as small hardware items or spare parts for vehicles) in one solicitation and make award on an "all-or-none" or "multiple award" basis provided suppliers are so advised when quotations or offers are requested; (2) Incorporate provisions and clauses by reference in solicitations and in awards under requests for quotations, provided the requirements in 52.102 are satisfied; (3) Make maximum effort to obtain trade and prompt payment discounts (see 14.408-3 ). Prompt payment discounts shall not be considered in the evaluation of quotations; and (4) Use bulk funding to the maximum extent practicable. Bulk funding is a system whereby the contracting officer receives authorization from a fiscal and accounting officer to obligate funds on purchase documents against a specified lump sum of funds reserved for the purpose for a specified period of time rather than obtaining individual obligational authority on each purchase document. Bulk funding is particularly appropriate if numerous purchases using the same type of funds are to be made during a given period.