FAR 13.302-1—General.
Plain-English Summary
FAR 13.302-1 explains the baseline rules for using purchase orders under simplified acquisition procedures. It covers when purchase orders are normally fixed-price, how they must describe the quantity or scope, delivery or performance date, inspection and acceptance, destination terms, trade and prompt payment discounts, signature requirements, distribution of copies, and electronic funds transfer (EFT) payment requirements. It also points readers to related rules for commercial products and services, unpriced purchase orders, inspection under Part 46, signature standards in FAR 4.101 and 2.101, discount principles in FAR 14.408-3, and EFT clauses in Part 32. In practice, this section is about making purchase orders clear, administrable, and payment-ready so both the government and the contractor understand exactly what is being bought, when it is due, how it will be inspected, where risk of loss is intended to rest, and how payment will be made. For contracting officers, it is a checklist for drafting compliant purchase orders; for contractors, it is a guide to understanding the minimum terms they should expect to see in a valid purchase order.
Key Rules
Fixed-price is the default
Purchase orders are generally issued on a fixed-price basis unless the unpriced purchase order method applies. For commercial products and services, the contracting officer must also consider FAR 12.207.
Order must be specific
The purchase order must clearly state the quantity of supplies or the scope of services, and it must include a determinable delivery or performance date. This prevents vague orders and supports enforceable performance expectations.
Inspection and acceptance required
The order must provide for inspection under Part 46. As a general rule, inspection and acceptance should occur at destination, and source inspection should be used only when Part 46 requires it.
Destination notice and receiving reports
When inspection and acceptance will occur at destination, advance copies of the purchase order or equivalent notice must be sent to the consignee(s) for material receipt purposes. Receiving reports must be completed immediately upon receipt and acceptance of supplies.
Use FOB destination for U.S. deliveries
For supplies delivered within the United States, except Alaska and Hawaii, the purchase order should specify FOB destination unless there is a valid reason to use another term. This affects delivery responsibility and risk allocation.
Include applicable discounts
Any trade discounts or prompt payment discounts offered must be included, consistent with FAR 14.408-3. The purchase order should reflect the discount terms so payment can be processed correctly.
Signature and automation rules
The contracting officer’s signature on purchase orders must comply with FAR 4.101 and the definitions in FAR 2.101. Facsimile and electronic signatures are permitted when purchase orders are produced by automated methods.
Limit distribution
Copies of purchase orders and related forms should be distributed only to the minimum number needed for administration and transmission of contractual information. This reduces unnecessary paperwork and helps control sensitive procurement data.
EFT is generally mandatory
Electronic funds transfer is required for payments under 31 U.S.C. 3332 unless an exception in FAR 32.1110 applies. The contracting officer must use the appropriate EFT clause from Part 32, and when obtaining oral quotes, must tell the quoter which EFT clause will apply.
Responsibilities
Contracting Officer
Draft purchase orders that are fixed-price by default, unless an unpriced purchase order method is used; clearly state quantity or scope, delivery/performance date, inspection and acceptance terms, FOB terms, and any applicable discounts; sign the purchase order in accordance with FAR 4.101 and 2.101; use facsimile or electronic signatures when appropriate; limit distribution of copies to the minimum necessary; include the correct EFT clause; and inform oral quoters of the EFT clause that will apply to any resulting purchase order.
Consignee / Receiving Activity
Use advance copies of the purchase order or equivalent notice for material receipt purposes when destination inspection and acceptance will occur; complete receiving reports immediately upon receipt and acceptance of supplies.
Contractor / Quoter
Review the purchase order terms for quantity, scope, delivery date, inspection, FOB destination, discount, and payment provisions; comply with the stated delivery or performance requirements; and, when providing oral quotes, understand that the government will identify the EFT clause that will govern payment if an order is placed.
Agency / Payment Office
Process payments using EFT unless an exception applies under FAR 32.1110; ensure the correct EFT clause is included in the purchase order and that payment procedures align with the clause and applicable Treasury requirements.
Practical Implications
A purchase order that is vague about quantity, scope, or due date can create disputes and make administration difficult, so contracting officers should write these terms precisely.
Inspection and acceptance at destination is the default expectation, so both the ordering office and the receiving activity need to be ready to document receipt promptly.
FOB terms matter because they affect who bears transportation risk and delivery responsibility; using the wrong term can create avoidable claims or confusion.
EFT requirements are not optional in most cases, so omitting the correct clause or failing to tell an oral quoter which clause will apply can delay payment or create compliance issues.
Because purchase orders are often generated quickly and through automated systems, signature authority, distribution control, and discount language are common places where errors occur if templates are not kept current.
Official Regulatory Text
(a) Except as provided under the unpriced purchase order method (see 13.302-2 ), purchase orders generally are issued on a fixed-price basis. See 12.207 for acquisition of commercial products and commercial services. (b) Purchase orders shall- (1) Specify the quantity of supplies or scope of services ordered; (2) Contain a determinable date by which delivery of the supplies or performance of the services is required; (3) Provide for inspection as prescribed in part 46 . Generally, inspection and acceptance should be at destination. Source inspection should be specified only if required by part 46 . When inspection and acceptance will be performed at destination, advance copies of the purchase order or equivalent notice shall be furnished to the consignee(s) for material receipt purposes. Receiving reports shall be accomplished immediately upon receipt and acceptance of supplies; (4) Specify f.o.b. destination for supplies to be delivered within the United States, except Alaska or Hawaii, unless there are valid reasons to the contrary; and (5) Include any trade and prompt payment discounts that are offered, consistent with the applicable principles at 14.408-3 . (c) The contracting officer’s signature on purchase orders shall be in accordance with 4.101 and the definitions at 2.101 . Facsimile and electronic signature may be used in the production of purchase orders by automated methods. (d) Limit the distribution of copies of purchase orders and related forms to the minimum deemed essential for administration and transmission of contractual information. (e) In accordance with 31 U.S.C.3332 , electronic funds transfer (EFT) is required for payments except as provided in 32.1110 . See subpart 32.11 for instructions for use of the appropriate clause in purchase orders. When obtaining oral quotes, the contracting officer shall inform the quoter of the EFT clause that will be in any resulting purchase order.