FAR 13.302—Purchase orders.

General.

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.

Unpriced purchase orders.

FAR 13.302-2 explains when and how a contracting office may use an unpriced purchase order under simplified acquisition procedures. It covers the definition of an unpriced purchase order, the limited situations in which it may be used, the requirement that pricing be impractical to obtain before award, the specific types of purchases that qualify (repairs requiring disassembly, sole-source material with costs not readily established, and competitively priced supplies or services with unknown exact prices), and the administrative controls that must accompany issuance. It also addresses the form of the order, allowing paper or electronic issuance, and requires a realistic monetary limitation on each order or line item to control the Government’s obligation until firm pricing is established. Finally, it requires follow-up to obtain timely pricing and review of the invoice price before payment, tying the rule to invoice reasonableness under FAR 13.106-3(a). In practice, this section is designed to let agencies move quickly when exact pricing cannot be known up front, while still protecting appropriated funds, preventing open-ended commitments, and ensuring the final price is reviewed and justified before payment.

Obtaining contractor acceptance and modifying purchase orders.

FAR 13.302-3 explains how a contracting officer turns a purchase order into a binding contract before performance begins, and how purchase order modifications must be handled. It covers three main subjects: when written contractor acceptance is required for the original purchase order, how a purchase order modification must be identified and numbered, and when the contractor’s written acceptance of a modification may be required. The rule matters because purchase orders under simplified acquisition procedures are often issued before the contractor signs anything, so the government needs a clear method to confirm agreement when a binding contract is desired up front. It also protects both sides by making sure modifications are traceable to the correct order and by limiting when additional written acceptance is demanded. In practice, this section helps contracting officers decide whether they need a signed acceptance, how to document changes properly, and when a contractor must formally agree to revised terms before the change is effective.

Termination or cancellation of purchase orders.

FAR 13.302-4 explains how contracting officers must end purchase orders under simplified acquisition procedures, and it draws a critical distinction between a purchase order that has been accepted in writing by the contractor and one that has not. It covers two different actions: termination of an accepted purchase order and cancellation of an unaccepted purchase order. For accepted orders, the rule directs the contracting officer to use the termination procedures that apply to commercial products and commercial services under FAR 12.403 and the termination clauses at 52.212-4(l) or (m), or to use FAR part 49 or 52.213-4 for noncommercial supplies or services. For unaccepted orders, the rule requires written notice of cancellation and a request for the contractor’s written acceptance of that cancellation. If the contractor agrees and does not claim costs from starting performance, the matter ends; if the contractor disagrees or claims costs were incurred, the action must be treated as a termination instead. In practice, this section protects both the Government and the contractor by ensuring the correct legal process is used based on whether a binding acceptance has occurred and whether performance-related costs may have been incurred.

Clauses.

FAR 13.302-5 tells contracting officers what clauses must be included in purchase orders issued under simplified acquisition procedures and how to tailor those clauses for specific situations. It covers the general rule that every purchase order and purchase order modification must include all clauses prescribed for the acquisition, plus special clause requirements for advance payments on publication subscriptions, unpriced purchase orders, and simplified acquisitions over the micro-purchase threshold for noncommercial products and noncommercial services. It also explains how the standard simplified acquisition clause at 52.213-4 may be used, modified, or supplemented, and it gives specific instructions for domestic preference clauses when trade agreements apply, when supplies are acquired for use outside the United States, and when an alternate domestic content threshold applies under FAR 25.101(d). In practice, this section is important because it prevents missing or inconsistent terms in purchase orders, which can create enforceability problems, payment issues, or conflicts between clauses. It also helps contracting officers apply the correct Buy American or trade agreement language based on the acquisition’s place of use, competition status, and applicable domestic content rules.