Office of Acquisition and Logistics (OAL)
Acquisition Policy Flash! 24-06
Federal Acquisition Regulation (FAR) Class Deviation to FAR 2.101 with Respect to FAR 13.301, Governmentwide Commercial Purchase Card
Purpose: To issue a class deviation in accordance with Federal Acquisition Regulation (FAR) 1.404, Class deviations, to allow use of governmentwide commercial purchase card in accordance with FAR 13.301 for payment of arbitration services required by collective bargaining agreements, as assigned by Federal Mediation and Conciliation Services (FMCS), in an amount above the defined micro-purchase threshold under FAR 2.101, not to exceed $50,000.
FAR parts impacted: FAR part 2.101 and 13.301.
Effective Date: May 3, 2024.
Background: Currently, FAR 13.301(c) allows use of the Governmentwide commercial purchase card to: (1) make micro-purchases; (2) place a task or delivery order (if authorized in the basic contract, basic ordering agreement, or blanket purchase agreement); or (3) make payments, when the contractor agrees to accept payment by the card (but see 31.1108(b)(2)). Pursuant to FAR 2.101(b), micro-purchase threshold means $10,000, except it means $2,500 for acquisition of services subject to 41 U.S.C. chapter 67, Service Contract Labor Standards. The deviation is needed to allow payment for arbitration services when resulting from activities included in the applicable VA approved Collective Bargaining Agreement and the method of payment is the Governmentwide commercial purchase card. The deviation will allow VA personnel, as designated by VA Financial Policy, to use the Governmentwide commercial purchase card to pay for arbitration services ordered pursuant to applicable collective bargaining agreements in excess of the currently defined micro-purchase threshold, not to exceed $50,000. This deviation is needed specifically for payment of arbitration services to ensure VA timely pays for such services in full accordance with requirements of collective bargaining agreements under which arbitration services may be required, ordered, and rendered. Generally, the Service Contract Labor Standards do not apply to “learned professionals” as defined by 29 C.F.R. § 541.301. For the purposes of this Class Deviation, arbitrators shall be considered “learned professionals” under 29 C.F.R. § 541.301 and excepted from the requirements of the Service Contract Labor Standards.
Applicability: This class deviation applies to all Arbitration Services acquired using the applicable approved VA Collective Bargaining Agreement.
Action Required: VA personnel as designated by VA Financial Policy shall comply with this class deviation.
Additional Information: Direct any questions to VA Procurement Policy Service (PPS) via email at va.procurement.policy@va.gov.
