1.14.2  Supply Purchasing Program

Manual Transmittal

June 04, 2012

Purpose

(1) This transmits the revised IRM 1.14.2, Supply Purchasing Program, which addresses operations of the Office Supply Program, within the Real Estate and Facilities Management Division, Agency-Wide Shared Services.

Material Changes

(1) This IRM has been updated to introduce the General Services Administration's (GSA's) new Federal Strategic Sourcing Initiative for Office Supplies (FSSI OS2) and provide instructions to the designated business unit purchase cardholders on the IRS procedures to order supplies under the new GSA contracts.

(2) Business Units are directed to contact their local Real Estate and Facilities Management (REFM) staff if they have accumulated excess supplies.

(3) Instructions from REFM Policy Memo 10-05, on ordering cabinets for flexiplace employees have been incorporated into this IRM. See 1.14.2 .7(3).

(4) Instructions for abandonment of flexiplace cabinets at the termination of the flexiplace assignment have been incorporated into this IRM. See 1.14.2.7.(7).

Effect on Other Documents

None

Audience

AWSS, Real Estate and Facilities Management Territory Offices, designated business unit purchase cardholders and their managers

Effective Date

(07-01-2012)

J. Stuart Burns, Director, Real Estate and Facilities Management

1.14.2.1  (07-01-2012)
Purpose of the Supply Purchasing Program

  1. The Supply Purchasing Program is the approved process in the IRS for ordering office supplies from private vendors. It includes ordering, receiving, and accounting for supply items that are consumed, may lose their identity, or become components of other personal property.

1.14.2.2  (07-01-2012)
Federal Strategic Sourcing Initiative for Office Supplies

  1. The Office of Management and Budget (OMB) has mandated that all federal agencies reduce their procurement expenditures. To support federal agencies in this initiative, GSA has established a government-wide strategic sourcing strategy for the purchase of office supply products and commodities under the Federal Strategic Sourcing Initiative for Office Supplies (FSSI OS2). This initiative is projected to assist the Administration in achieving the goal of reducing federal procurement spending by $40 billion a year.

  2. The overall goal of the FSSI OS2 is to offer agencies a fast and effective way to order office supplies and commodities at greater discounted prices, with prompt and cost-effective delivery, and quality customer service.

  3. Beginning in December 2011, IRS adopted the FSSI OS2 as the primary method to order office supplies. The supply process includes ordering, receiving, and accounting for consumable supply items.

1.14.2.3  (07-01-2012)
Authorities

  1. Regulatory requirements for implementing the supply purchasing program include:

    • Federal Management Regulation (FMR) 102-306.305

    • Federal Acquisition Regulations (FAR) Part 8 "Required Sources of Supplies and Services"

    • Javits-Wagner-O’Day Act (JWOD), (41 U.S.C. §46-48c)

    • Resource Conservation and Recovery Act (42 U.S.C. §6901)

  2. IRS agency requirements include the following:

    • IRS Procurement Policy No. 8.4, Limited Source Justification and Approval for Federal Supply Schedule Orders, http://awss.web.irs.gov/Procurement/policy/pandp/pp8-4.pdf

    • Internal Revenue Service Acquisition Procedures, (IRSAP) 1003.9000, Policy (Separation of Duties and Management Controls), http://awss.web.irs.gov/Procurement/policy/docs/irsap.doc

    • Internal Revenue Service Acquisition Procedures, (IRSAP)1003.9001, Exceptions, http://awss.web.irs.gov/Procurement/policy/docs/irsap.doc

    • IRS Procurement Policy No. 19.1, Small Business Program Review Requirements, http://awss.web.irs.gov/Procurement/policy/pandp/pp19-1.pdf

    • IRS Procurement Policy No. 23.1, Buying Green, http://awss.web.irs.gov/Procurement/policy/pandp/pp23-1.pdf

    • IRS Procurement Policy No. 70-11, Restricted Purchase List, http://awss.web.irs.gov/Procurement/policy/pandp/pp70-11.pdf

    • IRS Purchase Card Guide, Document 9185, http://erc.web.irs.gov/docs/2002/awss/cs/erclinks/pc_guide.pdf (available on the IRS Supply Program website, but no longer in print)

    • IRS FSSI Supply Program Desk Guide,http://op.ds.irsnet.gov/sites/AWSS/R/Shared%20Documents/Logistics%20Management/Supplies/supplydeskguide.pdf

1.14.2.4  (07-01-2012)
Directives

  1. The FSSI OS2 supply purchasing program allows IRS customers to:

    1. Order general office products electronically, by fax, E-mail or by telephone;

    2. Receive management information reports;

    3. Receive products from AbilityOne, as prescribed by the JWOD;

    4. Order and receive environmentally sustainable products; and

    5. Anticipate 24-hour delivery time.

  2. Under FSSI, GSA has established Blanket Purchase Agreements (BPAs) with several vendors in three pools as multiple-awards under the GSA Federal Supply Schedule 75. Nevertheless, IRS will only use the two vendors in the FSSI OS2 Pool 2, Staples and Office Depot. These are the only vendors that can meet the IRS requirements for next day, secure desktop delivery and the one-day “fill/kill” requirement.

  3. Orders will be placed under the FSSI OS2 BPAs using the GSA Smartpay Government Purchase Card. Supply ordering personnel must comply with relevant IRS Procurement Policies, including the four referenced in 1.14.2.3 (1).

  4. The GSA Contracting Officer (CO) is the only person authorized to make or approve any changes to the requirements of these BPAs.

1.14.2.5  (07-01-2012)
Responsibilities

  1. The Director, Real Estate and Facilities Management (REFM) and the REFM Territory Managers will provide support to the IRS Business Units for supply activities.

  2. Business Unit Financial Plan Managers will allocate and account for supply funds and assure proper and timely payment to the vendors.

  3. Supervisors will:

    1. Designate purchase cardholders to order supplies from the vendors,

    2. Determine that requested items are essential for efficient operation,

    3. Approve all orders;

    4. Conduct spot checks of orders received; and

    5. Ensure that supply expenditures do not exceed allocated funds.

  4. Designated business unit purchase cardholders will:

    1. Guard against wasteful practices,

    2. Help ensure that supplies are limited to official use only, and

    3. Place orders that are in compliance with purchase card guidelines and guard against wasteful practices.

  5. All employees are required to conserve and use government supplies economically.

1.14.2.6  (07-01-2012)
Customer Ordering

  1. The purchase cardholder shall place orders for expendable supplies listed either in the customized supply catalog developed by the FSSI OS2 BPA vendors or displayed on the vendor’s webpage as Core items or FSSI items.

  2. Core/FSSI items are contract specific items that IRS and GSA have identified as regularly purchased, therefore the prices were negotiated based on the volume/frequency of purchase.

  3. The FSSI OS2 BPA vendors are the mandatory sources for IRS to purchase Core/FSSI items referenced in their catalogs, before purchasing like items from other commercial sources.

  4. There are several categories of contract items with the selected vendors, including items manufactured by AbilityOne. The AbilityOne Program is the largest source of employment in the United States for individuals who are blind or have other significant disabilities. Under the Javitz-Wagner-O’Day (JWOD) Act, when ordering an office supply and there is another item manufactured or sold by AbilityOne or SKILCRAFT deemed essentially the same, the vendor is required to replace the non-AbilityOne item with the Ability One or SKILCRAFT item, (FAR Subpart 8.7). AbilityOne items are identified in the catalogs and webpages as “SKILCRAFT”, "JWOD" , or "AbilityOne " products. The categories of these items include:

    1. Paper products;

    2. File folders;

    3. Pens and pencils;

    4. Other writing instruments; and

    5. Binders

1.14.2.6.1  (07-01-2012)
Methods of Ordering Stock

  1. The FSSI OS2 supply contracts with Staples and Office Depot are the mandatory first sources for purchasing expendable office supplies. In the event that an item is out of stock with either of the contract vendors, the IRS customer may then purchase it through another source as prescribed by the FAR, Part 8.

  2. For purchase cardholders outside of the 48 contiguous United States, the FSSI BPAs are not mandatory sources. However, they may be used if the products are available for delivery.

1.14.2.6.2  (07-01-2012)
Ordering Options

  1. The only options for purchase cardholders to place electronic orders against the FSSI BPAs are:

    1. IRS e-Catalog;

    2. Office Depot website for IRS; or

    3. Staples e-way

  2. Purchase cardholders may order directly from these vendors via phone, fax, or through in-store purchases and receive the same discounts. Vendor contact information and more detailed ordering procedures are available in the IRS FSSI Supply Program Desk Guide,http://op.ds.irsnet.gov/sites/AWSS/R/Shared%20Documents/Logistics%20Management/Supplies/supplydeskguide.pdf .

    1. When ordering supplies, acknowledgement of receipt of the order and availability of stock are provided to the customer by phone, E-mail or fax.

    2. In the event that the vendor is out-of-stock, a “fill or kill” provision applies. Any items that cannot be delivered within 24 hours of placing the order are cancelled or “killed.”

    3. If the out-of-stock item is an AbilityOne product, the vendor may substitute a like, commercial item at the same or lower price.

  3. When a non-contract item is required, the purchase may be made from another GSA contract source. All relevant procurement regulations must be followed, including:

    1. The order may not exceed $3,000; and

    2. The item may not be included on the "Restricted Purchase List."

  4. Payment for all orders will be made with a purchase card.

  5. Each office should establish adequate safeguards and controls to ensure that acquisitions and issuance of expendable supplies are made for official use only. Offices may establish additional procedures necessary for effective stock control.

  6. All purchase card transactions shall be tracked, as outlined in the IRS Purchase Card Guide, Document 9185, http://erc.web.irs.gov/docs/2002/awss/cs/erclinks/pc_guide.pdf and by other methods that may be specified by the Business Unit and/or Funding Official.

  7. Purchase cardholders are responsible for maintaining the following documentation:

    1. A log of purchases;

    2. Shipping and receiving documents; and

    3. Order form and fax-back records (if applicable).

  8. In the event that a shipping or receiving document is lost, the purchase cardholder should make an attempt to identify the date and amount of the purchase and request a copy from the vendor.

  9. Upon receipt and verification of an order, the purchase cardholder should verify that the order is correct and document the receipt of the goods as prescribed in the IRS Purchase Card Guide, Document 9185,http://erc.web.irs.gov/docs/2002/awss/cs/erclinks/pc_guide.pdf, and in any local procedures.

  10. For most IRS locations, the contractor delivery personnel will be required to undergo background clearance investigations. Contractor personnel will be required to complete the following documents, which will be forwarded to the Contractor Security Management Program in the Physical Security and Emergency Preparedness (PSEP) Division:

    1. SF-85P, Questionnaire for Public Trust Positions;

    2. Fair Credit Reporting Act (FCRA) Credit Release, Disclosure and Authorization Form; and

    3. Form FD-258, Applicant Fingerprint Card.

1.14.2.7  (07-01-2012)
Flexiplace Cabinets

  1. File cabinets for flexiplace employees to use at home shall be ordered through one of the FSSI office supply contracts.

  2. The National Agreementhttp://core.publish.no.irs.gov/docs/pdf/32781j09.pdf, between IRS and NTEU (Article 50, Section 7A, Flexiplace Furniture and Equipment), prescribes that employees participating in the Occupational Flexiplace Program will be provided lockable file cabinets.

  3. Instructions for ordering flexiplace cabinets are on the REFM website. http://op.ds.irsnet.gov/sites/AWSS/R/Shared%20Documents/Logistics%20Management/Supplies/HowOrderFlexiplaceCabinet.pdf

  4. Once approved to participate in the Flexiplace Program, the employee may select the cabinet appropriate for their business need and obtain their manager’s concurrence. The cabinet will be purchased from one of the office supply contractors and delivered to the employee’s residence. REFM will fund the purchase of the cabinet and provide the business unit purchase cardholder with the RTS number and accounting string.

  5. The vendor will provide inside delivery to most locations. This will include cabinet placement and removal of packing materials. Delivery will be made during normal business hours within five to seven days after the order is placed. The purchase cardholder must coordinate delivery.

  6. When separating from the program, participants may choose whether or not to return the cabinet. If the employee decides to return the file cabinet, it must be returned to his or her assigned post of duty (POD). If the employee decides not to return the file cabinet, then the cabinet may be released or “abandoned” in accordance with the Federal Management Regulation (FMR) 102-306.305. This Regulation provides an option of releasing furniture when it no longer has commercial value or when the estimated cost of continued care and handling exceeds the estimated proceeds from the sale.

  7. As with other property disposition methods, action concerning federal excess and surplus personal property to be abandoned must be fully documented to establish a clear audit trail. Therefore, in this case, the participant must complete the Excess Personal Property – Flexiplace Program Filing Cabinets agreement . See the agreement form at http://op.ds.irsnet.gov/sites/AWSS/R/Shared%20Documents/Logistics%20Management/Supplies/FLEXIPLACE%20Excess%20Form%20-2011.doc used to document the employee's acceptance of responsibility for the cabinet which has been abandoned in place. A copy of the signed memo will be maintained by the employee’s manager and a copy must accompany the Form 1933, Report of Survey, prepared by the local REFM Property and Asset Management Staff.

1.14.2.8  (07-01-2012)
Excess Office Supplies

  1. Under the Federal Property Management Regulations, 41 CFR 102-36, office supplies are included in the definition of personal property. As with all other personal property, such as furniture or equipment, in the event that excess usable supplies are accumulated, the local REFM Territory Staff should be contacted to arrange for transfer to another federal agency, or for donation through GSA.


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