Splitting of Requirements National Oceanic and Atmospheric Administration Acquisition and Grants Office Oversight and Compliance Branch

Agenda Definition of Split Purchase FAR Policy Examples of Split Purchases 2

Definitions of Split Purchase Micro-purchases -- A single purchase is intentionally divided into two or more separate purchases to avoid exceeding the single purchase limit or to avoid obtaining competition. (OPM Contracting Policy ) Actions above the micro-purchase threshold -- Splitting up a single requirement to circumvent legal guidelines prescribed at a certain dollar threshold. 3

FAR Policy Contracting Officers shall not break down requirements aggregating more than the simplified acquisition threshold or the micro-purchase threshold into several purchases that are less than the applicable threshold merely to permit use of simplified acquisition procedures or to avoid exceeding the micro-purchase threshold (FAR (c)(2)). 4

Examples of Split Purchases A single Cardholder makes multiple purchases from the same merchant on the same day. The purchase amount exceeds the single purchase limit, and the total was known at the time of the first purchase. A single Cardholder purchases the same/similar item(s) from multiple merchants on the same day. The total purchase amount exceeds the single purchase limit, and the total was known at the time of the first purchase. 5

Examples of Split Purchases Multiple Cardholders under the same Supervisor/Approving Official purchase the same/similar item(s) on the same day or in a compressed time frame. The total of the purchase amount exceeds the single purchase limit, and the total was known at the time of the first purchase. Contracting officer contracts for an amount above the simplified acquisition threshold but divides the contract into several purchases for a lesser amount in order to use the simplified procedures for purchasing. 6

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