§ 592.606 Blanket purchase order method. The blanket purchase order method will be used where practicable.

§ 592.607 Use of DD or departmental procurement forms. (a) Small purchases effected by negotiation will be consummated by the use of one of the following methods:

(1) Imprest fund (SR 35-350-10) (Imprest Funds For Small Purchases), use of Standard Form 1165 (Receipt for Cash Subvoucher).

(2) U. S. Government Purchase Order-Invoice-Voucher (Standard Form

44).

(3) Order and Voucher for Purchase of Supplies or Services (DD Form 738). (4) Other appropriate authorized forms.

(b) It is incumbent upon the Contracting Officer to choose that method which best fits the requirements of any purchase. Individual purchases of $25 or less will be made using the imprest fund, or the check procedures with the Standard Form 44 or DD Form 738. It is the duty of the purchasing officer to make use of the form which will involve the least paper work and the least expense to the United States. Usually imprest funds or Form 44 will be used within a radius of approximately 50 miles from the purchasing office, but the use of these forms is not limited to such use.

§ 592.650 Order and voucher for purchase of supplies or services (DD Form 738). (a) The Order and Voucher for Purchase of Supplies or Services Other Than Personal (DD Form 738) is used for

(1) Small purchases in an amount not exceeding $1,000 (see sec. 2 (c) (3) Armed Services Procurement Act of 1947).

(2) Purchases in an amount not exceeding $5,000 in those cases where authority exists to make procurement by negotiation (see sec. 2 (c) (1) of Armed Services Procurement Act and Decision of Comptroller General B-45102 dated 26 July 1951).

(b) Payments will be made by check except that payment may be made in

cash by an accountable disbursing officer in any amount for which the form is authorized.

(c) The purpose of the form is to effect such purchases in the simplest manner. It provides in one document a purchase (or delivery) order, a receiving and inspection report, a property voucher, and when supported by a vendor's invoice, a payment voucher. The use of this DD Form 738 and DD Form 738-1 (continuation sheet) according to the procedure herein will simplify purchasing procedure, will increase efficiency by simple actions, will effect economy in personnel and overhead, will reduce quantities of forms used and attendant paper work, and will expedite payments to vendors.

(d) DD Form 738 (Order and Voucher for Purchase of Supplies or Services) is designed for use where one payment and one delivery are contemplated. Although it may be used where not to exceed five payments are ultimately involved in a single transaction, it is not an entirely satisfactory form under such circumstances. Likewise where more than one delivery or more than one destination is involved it is necessary to provide additional documents for each additional delivery. In view of the limitations of Form 738 where multiple deliveries or payments are known or believed to be probable, DD Form 702 (Order for Purchase of Supplies or Services) (used in conjunction with DD Form 250 (Materiel Inspection and Receiving Report (Domestic)) and Standard Form 1034 (Public Voucher for Purchases and Services Other Than Personal) should be utilized.

Contracting Officers should choose the form most suitable for use after consideration of the probable delivery and payment requirements of a proposed procurement.

§ 592.650-1 Use of DD Form 738 as a purchase order. Form 738 is authorized for use at stations, depots, and other procuring offices in procuring any supplies or services where the amount of the purchase order does not exceed $5,000; however, the other provisions of Subchapter A, Chapter I and this subchapter apply where purchases are made in excess of $1,000.

§ 592.650-2 Use of DD Form 738 as a delivery order—(a) Monthly charge accounts. (1) Monthly charge accounts are authorized to be set up by Contracting Officers with vendors when experience has indicated, or when in the judgment of the Contracting Officer, numerous purchases of small amounts are likely to be made from the same vendor.

(2) It is the intent of the charge account procedure that it be used to parallel as closely as possible the use of charge accounts used by business concerns.

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(3) A charge account method doing business with vendors may be established and accounts paid through the use of DD Form 738, provided the total orders placed during an agreed billing period do not exceed $5,000. The charge account procedure, necessarily requires the vendor's consent. This is not meant to limit the use of other authorized purchase order forms if the amount charged in any month exceeds $5,000.

(4) Each separate order placed against a charge account must be placed after conduct of negotiation and justification appropriate to the action, except where the order is for $100 or less, and price is known to be reasonably competitive.

(5) Receiving reports and/or inspection reports, as appropriate to the accounts of the consignee, will be prepared and copy furnished the Contracting Officer within 24 hours after receipt of each separate receipt of supplies or services.

(6) The separate receiving reports will be reconciled with the vendor's billing and will be retained in the Contracting Officer's file as a basis for his executing the Administrative Certificate on the face of the form when processing the periodic billing for payment.

(7) In order to avoid obligation of funds without knowledge of the fiscal officer, the following method may be used:

(i) The Purchasing and Contracting Officer may coordinate with the Fiscal Officer to estimate the amount of pur

chases to be made each month under each appropriation and project account.

(ii) The Fiscal Officer will record the estimated obligation and will give the Purchasing and Contracting Officer the authority to purchase up to the amount of the obligation. The obligation will be by appropriation and project account.

(8) Each order placed against a charge account will be identified by a purchase order number. One number which is good for the duration of the billing period may be used.

(b) Consolidation of deliveries into one order. (1) One order may be accomplished at the end of the month or more often, if necessary, when the total amount approaches $5,000, to cover previous deliveries against procurement methods such as, but not limited to, "open end", "Call type" or "term" contracts or charge accounts under the following conditions:

(i) When, in the judgment of the Contracting Officer, such action is more practical and economical than the making of separate delivery orders.

(ii) When the local Contracting Officer who issues the delivery order has made satisfactory arrangements with the vendor or his authorized representative.

Since the accumulation and consolidation of deliveries into one delivery order at the end of the month may result in a delayed payment, such action must be agreeable to the vendor.

(2) When such practice is to be followed, each delivery of supplies or services will be supported by a signed delivery ticket prepared in triplicate by the vendor. The following information will be shown on the delivery ticket:

(i) Name of Contractor.
(ii) Contract number.

(iii) Nomenclature of supplies or services including stock number, part number, etc., as necessary for proper identification.

(iv) Quantity of supplies or services. In the event that the vendor does not furnish a delivery ticket, the individual who receives the supplies will prepare

DD Form 227 (Receiving Report) showing the essential information thereon.

(3) The quantity listed on the delivery ticket will be verified, exceptions noted, and the three copies of the ticket will be dated and signed by the individual who is authorized to receive the items. Copies will be distributed as follows: Original to the accountable property officer, 1 copy to the Contracting Officer, and 1 copy to the vendor.

(4) The accountable property officer will voucher and post to the stock record account each delivery ticket covering supplies received. A basic voucher number will be assigned to each vendor and as deliveries are received during the current month the individual delivery ticket will be subvouchered against the basic voucher number established for the vendor concerned.

(5) The signed copy of the delivery tickets will be the basis for consolidating the deliveries and preparing one delivery order at the end of the month by the Contracting Officer. The vendor will be instructed to submit one invoice (four copies) for the period concerned.

(6) The accomplishment and processing of DD Form 738 will be as prescribed in this Subchapter G.

§ 592.650-3 Use of DD Form 738 as a receiving and inspection report. (a) DD Form 738 is designed for use as a tally-in, an inspection report, and a receiving report.

(b) When inspection and/or acceptance is to be other than at destination, the place of such inspection and/or acceptance will be shown in the "Supplies or Services" column on the form. (See clause 1 on reverse of DD Form 738.)

(c) Upon receipt of the items provided for in the order, the accountable property officer or his authorized representative will complete the following on DD Form 738:

(1) Quantity accepted (face of form). (2) Date received (reverse of form). (3) Delivered by (reverse of form). (4) Stock record account voucher number (reverse of form).

(5) Signature with grade and designation (reverse of form).

(6) Account serial number (reverse of form), and

(7) Date signed and signature (reverse of form).

The accountable property officer will request disposition instructions from the contracting officer for nonacceptable items and overages. Errors such as nomenclature stock number, etc., may be corrected manually.

(d) If inspection is made other than at destination, appropriate copies of Form 738 will be furnished to the inspection office. Accomplished inspection reports will be transmitted to the consignee unless otherwise indicated in each specific case by the Contracting Officer.

(e) Receiving reports will be accomplished within the time specified in paragraph 4, SR 715-55-6 (Processing of Receiving Reports):

§ 592.650-4 Use of DD Form 738 as a vendor's invoice. (a) Special care will be exercised to have each vendor follow the instructions on DD Form 738 regarding preparation of vendor's invoice.

(b) When it is desired to utilize DD Form 738 as vendor's invoice, the following certificate will be typed or stamped in the "Supplies or Services" column on the original copy for the General Accounting Office, copy for the Disbursing Officer, and copy for the Fiscal Officer: "I certify that the above bill is correct and just and that payment therefor has not been received." Only the original will be signed by the vendor.

§ 592.650-5 Use of DD Form 738 as a voucher (a) One payment. DD Form 738 will be completed and processed as any other payment voucher.

(1)

(b) More than one payment. Where more than one payment becomes necessary, original DD Form 738 will be completed for those supplies or services accepted and will be processed for payment in the normal manner.

(2) Subsequent payments not to exceed four may be made using one of the following methods:

(i) Prepare additional DD Forms 738 citing same order number as the original and indicating in the "Order No." block of the DD Form 738 the number of the partial shipment (i. e., 1st partial, 2d partial, and 3d and final). Prior to or at the time of processing original DD Form 738 (mentioned in subparagraph (1) of this paragraph) for payment, an additional DD Form 738 will be prepared, setting forth the balance of the undelivered supplies and distributed in the normal manner, except that no copy will be distributed to the vendor. The above procedure will be repeated until final delivery is received. A citation to the name of the Disbursing Officer, period of account, and Disbursing Officer's voucher number will be made to the original and subsequent vouchers on subsequent vouchers respectively. For example, first subsequent voucher will cite original voucher, second subsequent voucher will cite original voucher and first subsequent voucher, etc. Each voucher will be a complete transaction within itself and the cross reference will allow the General Accounting Office to reconcile the entire purchase.

(ii) Prepare Standard Form 1034 (Public Voucher for Purchases and Services other than Personal) with copy of Receiving Report (DD Form 227), covering partial delivery, attached thereto. The standard Form 1034 will cite the same order number as the DD Form 738 and the number of the partial shipment (i. e. 1st partial, 2d partial, and 3d, and final). The above procedure will be repeated until final delivery is received. A citation to the name of the Disbursing Officer, period of account, and Disbursing Officer's voucher number will be made to the original and subsequent vouchers on subsequent vouchers respectively. For example, first subsequent voucher will cite original voucher,

second subsequent voucher will cite original voucher and first subsequent voucher, etc. Each voucher will be a complete transaction within itself and the cross reference will allow the General Accounting Office to reconcile the entire purchase.

(iii) Cash payments may be made using an accountable disbursing officer.

§ 592.650-6 Distribution of copies of DD Form 738. (a) The copies of DD Form 738, which are numbered 1, 2, 3, 4, 5, 6, 7, and 8 at the bottom of the form, will be distributed as follows and as shown on the flow chart in § 592.650-10. (1) Copy 1 (original). General Accounting Office (white).

(8) Copy 8. Receiving report (yellow).

§ 592.650-7 General instructions. The following general instructions are applicable whether the form is used as a purchase order or as a delivery order:

(a) When it is certain that more than one payment or one delivery will be made, DD Form 738 will not be used, but the purchase will be effected by the use of other appropriate forms. (See § 592.650 (b).)

(b) DD Form 738 will not be given a contract number under any circumstances. The "order number" space provided is for such local identification as is necessary.

(c) In the event additional contract clauses or deviations are required for specific purposes, prior approval for their use will be obtained from the Deputy Chief of Staff for Logistics, Department of the Army, except as provided in § 592.651.

(d) These procedures are deemed sufficient for all purchases accomplished by use of DD Form 738. In the event