[Title 48 CFR ]
[Code of Federal Regulations (annual edition) - October 1, 1996 Edition]
[From the U.S. Government Printing Office]
48
Federal Acquisition Regulations System
[[Page i]]
CHAPTER 2 (Parts 201 to 251)
Revised as of October 1, 1996
CONTAINING
A CODIFICATION OF DOCUMENTS
OF GENERAL APPLICABILITY
AND FUTURE EFFECT
AS OF OCTOBER 1, 1996
With Ancillaries
Published by
the Office of the Federal Register
National Archives and Records
Administration
as a Special Edition of
the Federal Register
[[Page ii]]
U.S. GOVERNMENT PRINTING OFFICE
WASHINGTON : 1996
For sale by U.S. Government Printing Office
Superintendent of Documents, Mail Stop: SSOP, Washington, DC 20402-9328
[[Page iii]]
Table of Contents
Page
Explanation................................................. v
Title 48:
Chapter 2--Department of Defense.......................... 3
Finding Aids:
Table of CFR Titles and Chapters.......................... 409
Alphabetical List of Agencies Appearing in the CFR........ 425
List of CFR Sections Affected............................. 435
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Cite this Code: CFR
To cite the regulations in this volume use title, part
and section number. Thus, 48 CFR 201.103 refers to
title 48, part 201, section 103.
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[[Page v]]
EXPLANATION
The Code of Federal Regulations is a codification of the general and
permanent rules published in the Federal Register by the Executive
departments and agencies of the Federal Government. The Code is divided
into 50 titles which represent broad areas subject to Federal
regulation. Each title is divided into chapters which usually bear the
name of the issuing agency. Each chapter is further subdivided into
parts covering specific regulatory areas.
Each volume of the Code is revised at least once each calendar year
and issued on a quarterly basis approximately as follows:
Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1
The appropriate revision date is printed on the cover of each
volume.
LEGAL STATUS
The contents of the Federal Register are required to be judicially
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie
evidence of the text of the original documents (44 U.S.C. 1510).
HOW TO USE THE CODE OF FEDERAL REGULATIONS
The Code of Federal Regulations is kept up to date by the individual
issues of the Federal Register. These two publications must be used
together to determine the latest version of any given rule.
To determine whether a Code volume has been amended since its
revision date (in this case, October 1, 1996), consult the ``List of CFR
Sections Affected (LSA),'' which is issued monthly, and the ``Cumulative
List of Parts Affected,'' which appears in the Reader Aids section of
the daily Federal Register. These two lists will identify the Federal
Register page number of the latest amendment of any given rule.
EFFECTIVE AND EXPIRATION DATES
Each volume of the Code contains amendments published in the Federal
Register since the last revision of that volume of the Code. Source
citations for the regulations are referred to by volume number and page
number of the Federal Register and date of publication. Publication
dates and effective dates are usually not the same and care must be
exercised by the user in determining the actual effective date. In
instances where the effective date is beyond the cut-off date for the
Code a note has been inserted to reflect the future effective date. In
those instances where a regulation published in the Federal Register
states a date certain for expiration, an appropriate note will be
inserted following the text.
OMB CONTROL NUMBERS
The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires
Federal agencies to display an OMB control number with their information
collection request.
[[Page vi]]
Many agencies have begun publishing numerous OMB control numbers as
amendments to existing regulations in the CFR. These OMB numbers are
placed as close as possible to the applicable recordkeeping or reporting
requirements.
OBSOLETE PROVISIONS
Provisions that become obsolete before the revision date stated on
the cover of each volume are not carried. Code users may find the text
of provisions in effect on a given date in the past by using the
appropriate numerical list of sections affected. For the period before
January 1, 1986, consult either the List of CFR Sections Affected, 1949-
1963, 1964-1972, or 1973-1985, published in seven separate volumes. For
the period beginning January 1, 1986, a ``List of CFR Sections
Affected'' is published at the end of each CFR volume.
CFR INDEXES AND TABULAR GUIDES
A subject index to the Code of Federal Regulations is contained in a
separate volume, revised annually as of January 1, entitled CFR Index
and Finding Aids. This volume contains the Parallel Table of Statutory
Authorities and Agency Rules (Table I), and Acts Requiring Publication
in the Federal Register (Table II). A list of CFR titles, chapters, and
parts and an alphabetical list of agencies publishing in the CFR are
also included in this volume.
An index to the text of ``Title 3--The President'' is carried within
that volume.
The Federal Register Index is issued monthly in cumulative form.
This index is based on a consolidation of the ``Contents'' entries in
the daily Federal Register.
A List of CFR Sections Affected (LSA) is published monthly, keyed to
the revision dates of the 50 CFR titles.
REPUBLICATION OF MATERIAL
There are no restrictions on the republication of material appearing
in the Code of Federal Regulations.
INQUIRIES
For a legal interpretation or explanation of any regulation in this
volume, contact the issuing agency. The issuing agency's name appears at
the top of odd-numbered pages.
For inquiries concerning CFR reference assistance, call 202-523-5227
or write to the Director, Office of the Federal Register, National
Archives and Records Administration, Washington, DC 20408.
SALES
The Government Printing Office (GPO) processes all sales and
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Richard L. Claypoole,
Director,
Office of the Federal Register.
October 1, 1996.
[[Page vii]]
THIS TITLE
Title 48--Federal Acquisition Regulations System is composed of
eight volumes. The chapters in these volumes are arranged as follows:
Chapter 1 (parts 1 to 51), chapter 1 (parts 52 to 99), chapter 2 (parts
201 to 251 and parts 252 to 299), chapters 3 to 6, chapters 7 to 14,
chapters 15 to 28 and chapter 29 to end. The contents of these volumes
represent all current regulations codified under this title of the CFR
as of October 1, 1996.
The Federal acquisition regulations in chapter 1 are those
government-wide acquisition regulations jointly issued by the General
Services Administration, the Department of Defense, and the National
Aeronautics and Space Administration. Chapters 2 through 99 are
acquisition regulations issued by individual government agencies. Parts
1 to 69 in each of chapters 2 through 99 are reserved for agency
regulations implementing the Federal acquisition regulations in chapter
1 and are numerically keyed to them. Parts 70 to 99 in chapters 2
through 99 contain agency regulations supplementing the Federal
acquisition regulations.
The OMB control numbers for the Federal Acquisition Regulations
System appear in section 1.106 of chapter 1. For the convenience of the
user section 1.106 is reprinted in the Finding Aids section of the
second volume containing chapter 1 (parts 52 to 99).
The two volumes containing chapter 1 include an index to the Federal
acquisition regulations. The second volume, containing chapter 1 (parts
52 to 99), includes contract clauses and forms.
For this volume, Ann Elise Maso was Chief Editor. The Code of
Federal Regulations publication program is under the direction of
Richard L. Claypoole, assisted by Alomha S. Morris.
[[Page viii]]
[[Page 1]]
TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
(This book contains chapter 2, parts 201 to 251)
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Part
chapter 2--Department of Defense............................ 201
[[Page 3]]
CHAPTER 2--DEPARTMENT OF DEFENSE
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SUBCHAPTER A--GENERAL
Part Page
201 Federal Acquisition Regulations System...... 5
202 Definitions of words and terms.............. 9
203 Improper business practices and personal
conflicts of interest................... 11
204 Administrative matters...................... 14
SUBCHAPTER B--ACQUISITION PLANNING
205 Publicizing contract actions................ 40
206 Competition requirements.................... 42
207 Acquisition planning........................ 45
208 Required sources of supplies and services... 48
209 Contractor qualifications................... 60
211 Describing agency needs..................... 67
212 Acquisition of commercial items--general.... 69
SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES
213 Simplified acquisition procedures........... 72
214 Sealed bidding.............................. 75
215 Contracting by negotiation.................. 75
216 Types of contracts.......................... 99
217 Special contracting methods................. 110
SUBCHAPTER D--SOCIOECONOMIC PROGRAMS
219 Small business programs..................... 125
222 Application of labor laws to government
acquisitions............................ 139
223 Environment, conservation, occupational
safety, and drug-free workplace......... 151
224 Protection of privacy and freedom of
information............................. 158
225 Foreign acquisition......................... 158
226 Other socioeconomic programs................ 199
SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS
227 Patents, data, and copyrights............... 203
228 Bonds and insurance......................... 244
[[Page 4]]
229 Taxes....................................... 247
230 Cost accounting standards................... 248
231 Contract cost principles and procedures..... 251
232 Contract financing.......................... 256
233 Protests, disputes, and appeals............. 271
SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING
234 Major system acquisition.................... 273
235 Research and development contracting........ 273
236 Construction and architect-engineer
contracts............................... 296
237 Service contracting......................... 302
239 Acquisition of information resources........ 314
241 Acquisition of utility services............. 325
SUBCHAPTER G--CONTRACT MANAGEMENT
242 Contract administration..................... 328
243 Contract modifications...................... 346
244 Subcontracting policies and procedures...... 347
245 Government property......................... 349
246 Quality assurance........................... 371
247 Transportation.............................. 382
248 Value engineering........................... 391
249 Termination of contracts.................... 391
250 Extraordinary contractual actions........... 399
251 Use of government sources by contractors.... 404
Editorial Note: The Department of Defense acquisition regulations are
continued in the volume containing 48 CFR chapter 2, parts 252 to 299.
Note: Although the text of Manuals and Supplements to the Defense FAR
Supplement are not published in the Code of Federal Regulations, they
were listed for the convenience of the user. All of the Supplements have
been deleted. The only manuals which remain in effect are: Armed
Services Pricing Manual (1986) and Armed Services Pricing Manual, Volume
2, Price Analysis (1987).
[[Page 5]]
SUBCHAPTER A--GENERAL
PART 201--FEDERAL ACQUISITION REGULATIONS SYSTEM--Table of Contents
Sec.
Subpart 201.1--Purpose, Authority, Issuance
201.103 Applicability.
201.104 Issuance.
201.104-3 Copies.
Subpart 201.2--Administration
201.201 Maintenance of the FAR.
201.201-1 The two councils.
Subpart 201.3--Agency Acquisition Regulations
201.301 Policy.
201.303 Publication and codification.
201.304 Agency control and compliance procedures.
Subpart 201.4--Deviations From the FAR
201.402 Policy.
201.403 Individual deviations.
201.404 Class deviations.
Subpart 201.6--Contracting Authority and Responsibilities
201.602 Contracting officers.
201.602-2 Responsibilities.
201.602-70 Contract clause.
201.603 Selection, appointment, and termination of appointment.
201.603-2 Selection.
201.603-3 Appointment.
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
Source: 56 FR 36284, July 31, 1991, unless otherwise noted.
Subpart 201.1--Purpose, Authority, Issuance
Sec. 201.103 Applicability.
The FAR and the Defense Federal Acquisition Regulation Supplement
(DFARS) also apply to purchases and contracts by DoD contracting
activities made in support of foreign military sales or North Atlantic
Treaty Organization cooperative projects without regard to the nature or
sources of funds obligated, unless otherwise specified in this
regulation.
201.104 Issuance.
Sec. 201.104-3 Copies.
Copies of the DFARS in loose-leaf and CFR form may be purchased from
the Superintendent of Documents, Government Printing Office, Washington,
DC 20402-9325. Purchase of a copy of DFARS includes a subscription for
Defense Acquisition Circulars.
Subpart 201.2--Administration
201.201 Maintenance of the FAR.
Sec. 201.201-1 The two councils.
(c) The composition and operation of the DAR Council is prescribed
in DoD Directive 5000.35, Defense Acquisition Regulatory System.
(d)(i) Departments and agencies process proposed revisions of FAR or
DFARS through channels to the Director of the DAR Council. Process the
proposed revision as a memorandum in the following format, addressed to
the Director, DAR Council, OUSD(A&T), 3062 Defense Pentagon, Washington,
DC 20301-3062; datafax (703) 602-0350:
I. Problem: Succinctly state the problem created by current FAR and/
or DFARS coverage and describe the factual and/or legal reasons
necessitating regulatory change.
II. Recommendation: Identify the FAR and/or DFARS citations to be
revised. Attach as TAB A a copy of the text of the existing coverage,
conformed to include the proposed additions and deletions. Indicate
deleted coverage with dashed lines through the current words being
deleted and insert proposed language in brackets at the appropriate
locations within the existing coverage. If the proposed deleted portion
is extensive, it may be outlined by lines forming a box with diagonal
lines drawn connecting the corners.
III. Discussion: Include a complete, convincing explanation of why
the change is necessary and how the recommended revision will solve the
problem. Address advantages and disadvantages of the proposed revision,
as well as any cost or administrative impact on Government activities
and contractors. Identify any potential impact of the change on
automated systems, e.g., automated financial and procurement systems.
Provide any other background information that would be helpful in
explaining the issue.
[[Page 6]]
IV. Collaterals: Address the need for public comment (FAR 1.301(b)
and subpart 1.5), the Paperwork Reduction Act, and the Regulatory
Flexibility Act (FAR 1.301(c)).
V. Deviations: If a recommended revision of DFARS is a FAR
deviation, identify the deviation and include under separate TAB a
justification for the deviation, which addresses the requirements of
201.402(3). The justification should be in the form of a memorandum for
the USD(A&T)DP.
(ii) The public may offer proposed revisions of FAR or DFARS by
submission of a memorandum, in the format (including all of the
information) prescribed in paragraph (d)(i) of this subsection, to the
Director of the DAR Council.
[56 FR 36284, July 31, 1991, as amended at 60 FR 61591, Nov. 30, 1995;
61 FR 50451, Sept. 26, 1996]
Subpart 201.3--Agency Acquisition Regulations
Sec. 201.301 Policy.
(a) DoD implementation and supplementation of the FAR is issued in
the Defense Federal Acquisition Regulation Supplement (DFARS) under
authorization and subject to the authority, direction, and control of
the Secretary of Defense.
(b) When Federal Register publication is required for any policy,
procedure, clause, or form, the department or agency requesting USD(A&T)
approval for use of the policy, procedure, clause, or form (see
201.304(1)) must include an analysis of the public comments in the
request for approval.
[56 FR 36284, July 31, 1991, as amended at 60 FR 61591, Nov. 30, 1995]
Sec. 201.303 Publication and codification.
(a)(i) The DFARS is codified under chapter 2 in title 48, Code of
Federal Regulations.
(ii) To the extent possible, all DFARS text (whether implemental or
supplemental) is numbered as if it were implemental. Supplemental
numbering is used only when the text cannot be integrated intelligibly
with its FAR counterpart.
(A) Implemental numbering is the same as its FAR counterpart, except
when the text exceeds one paragraph, the subdivisions are numbered by
skipping a unit in the FAR 1.104-2(b)(2) prescribed numbering sequence.
For example, three paragraphs implementing FAR 19.501 would be numbered
219.501 (1), (2), and (3) rather than (a), (b), and (c). Three
paragraphs implementing FAR 19.501(a) would be numbered 219.501(a) (i),
(ii), and (iii) rather than (a) (1), (2), and (3). Further subdivision
of the paragraphs follows the prescribed numbering sequence, e.g.,
219.501(1)(i)(A)(1)(i).
(B) Supplemental numbering is the same as its FAR counterpart, with
the addition of a number of 70 and up or (S-70) and up. Parts, subparts,
sections, or subsections are supplemented by the addition of a number of
70 and up. Lower divisions are supplemented by the addition of a number
of (S-70) and up. When text exceeds one paragraph, the subdivisions are
numbered using the FAR 1.104-2(b)(2) prescribed sequence, without
skipping a unit. For example, DFARS text supplementing FAR 19.501 would
be numbered 219.501-70. Its subdivisions would be numbered 219.501-70
(a), (b), and (c).
(C) Subdivision numbering below the 4th level does not repeat the
numbering sequence. It uses italicized Arabic numbers and then
italicized lower case Roman numerals.
(D) An example of DFARS numbering is in Table 1-1, DFARS Numbering.
(iii) Department/agency and component supplements must parallel the
FAR and DFARS numbering, except department/agency supplemental numbering
uses subsection numbering of 90 and up, instead of 70 and up.
Table 1-1--DFARS Numbering
------------------------------------------------------------------------
FAR Is implemented as Is supplemented as
------------------------------------------------------------------------
19 219 219.70
19.5 219.5 219.570
19.501 219.501 219.501-70
19.501-1 219.501-1 219.501-1-70
19.501-1(a) 219.501-1(a) 219.501-1(a)(S-70)
19.501-1(a)(1) 219.501-1(a)(1) 219.501-1(a)(1)(S-70)
------------------------------------------------------------------------
[[Page 7]]
Sec. 201.304 Agency control and compliance procedures.
Departments/agencies and their component organizations may issue
acquisition regulations as necessary to implement or supplement the FAR
or DFARS.
(1) Approval of the USD(A&T) is required, before inclusion in a
department/agency or component supplement or any other contracting
regulatory document such as a policy letter, or clause book, of any
policy, procedure, clause, or form which--
(i) Has a significant effect beyond the internal operating
procedures of the agency; or
(ii) Has a significant cost or administrative impact on contractors
or offerors.
(2) The USD(A&T) has delegated authority to the USD(A&T)DP to
approve or disapprove the policies, procedures, clauses, and forms
subject to paragraph (1) of this section.
(3) Approval of USD(A&T)DP is required for any class deviation (as
defined in FAR subpart 1.4) from the FAR or DFARS, before its inclusion
in a department/agency or component supplement or any other contracting
regulatory document such as a policy letter or clause book.
(4) Each department and agency shall develop and, upon approval by
USD(A&T)DP, implement, maintain, and comply with a plan for controlling
the use of clauses other than those prescribed by FAR or DFARS.
(5) Departments/agencies submit requests for the USD(A&T) and
USD(A&T)DP approvals required by this section through the Director of
the DAR Council.
(6) Revisions to the DFARS are issued through Defense Acquisition
Circulars or Departmental Letters.
(i) Defense Acquisition Circulars--
(A) Are issued on a quarterly basis to all recipients of the DFARS.
(B) Are published in the Federal Register.
(C) Include, in addition to DFARS revisions, policies, directives,
and informational items.
(D) Include the effective dates for use of the revisions, policies,
or directives. The effective date means the date on which the revisions,
policies, or directives must be applied. Unless stated otherwise in the
circular, any new or revised clauses, provisions, or forms must be
included in solicitations issued on or after that date.
(ii) Departmental Letters--
(A) Are issued as necessary to the departments and agencies when
time is of essence in disseminating a revision, policy, or directive.
(B) Are effective until the revision, policy, or directive is
superseded by publication of the material in a Federal Acquisition
Circular, Defense Acquisition Circular, or other directive or is
specifically withdrawn.
[56 FR 36284, July 31, 1991, as amended at 60 FR 61591, Nov. 30, 1995]
Subpart 201.4--Deviations From the FAR
Sec. 201.402 Policy.
(1) The Director of Defense Procurement, Office of the Under
Secretary of Defense (Acquisition & Technology), USD(A&T)DP, is the
approval authority within the DoD for--
(i) Any individual deviation from--
(A) FAR/DFARS Section 3.104, Procurement integrity;
(B) FAR/DFARS Subpart 27.4, Rights in Data and Copyrights;
(C) FAR/DFARS Subpart 31.1, Applicability (contract cost
principles);
(D) FAR/DFARS Subpart 31.2, Contracts with Commercial Organizations;
or
(E) FAR/DFARS Part 32, Contract Financing (except 32.7, 32.8, and
the payment clauses prescribed by 32.1).
(ii) Any class deviation.
(2) Individual deviations.
(i) Except as provided in paragraph (2)(ii) of this section,
individual deviations, other than those in paragraph (1)(i) of this
section, must be approved in accordance with the department/agency plan
prescribed by 201.304(4).
(ii) Contracting officers outside the United States are authorized
to deviate from prescribed non-statutory FAR and DFARS clauses when
contracting for support services, supplies, or construction, with the
governments of North Atlantic Treaty Organization (NATO) countries or
other allies (as described in 10 U.S.C. 2341(2)), or with United Nations
or NATO organizations.
[[Page 8]]
This authority shall be exercised only if such governments or
organizations will not agree to the standard clauses.
(3) Submit requests for deviation approval through department/agency
channels to the approval authority in paragraph (1) or (2), as
appropriate. Submit deviations which require USD(A&T)DP approval through
the Director of the DAR Council. At a minimum, each request must--
(i) Identify the department/agency, and component if applicable,
requesting the deviation;
(ii) Identify the FAR or DFARS citation from which a deviation is
needed, state what is required by that citation, and indicate whether an
individual or class deviation is requested;
(iii) Describe the deviation and indicate which of paragraphs (a)
through (f) of FAR 1.401 best categorizes the deviation.
(iv) State whether the deviation will have a significant effect
beyond the internal operating procedures of the agency and/or a
significant cost or administrative impact on contractors or offerors,
and give reasons to support the statement;
(v) State the period of time for which the deviation is required;
(vi) State whether approval for the same deviation has been received
previously, and if so, when;
(vii) State whether the proposed deviation was published (see FAR
subpart 1.5 for publication requirements) in the Federal Register and
provide analysis of comments;
(viii) State whether the request for deviation has been reviewed by
legal counsel, and if so, state results; and
(ix) Give detailed rationale for the request. State what problem or
situation will be avoided, corrected, or improved if request is
approved.
[56 FR 36284, July 31, 1991, as amended at 60 FR 61591, Nov. 30, 1995;
61 FR 50451, Sept. 26, 1996]
Sec. 201.403 Individual deviations.
See approval requirements in 201.402.
Sec. 201.404 Class deviations.
See approval requirements in 201.402.
Subpart 201.6--Contracting Authority and Responsibilities
201.602 Contracting officers.
Sec. 201.602-2 Responsibilities.
Contracting officers may designate qualified personnel as their
authorized representatives to assist in the technical monitoring or
administration of a contract. A contracting officer's representative
(COR)--
(1) Must be a Government employee, unless otherwise authorized in
agency regulations.
(2) Must be qualified by training and experience commensurate with
the responsibilities to be delegated in accordance with department/
agency guidelines.
(3) May not be delegated responsibility to perform functions at a
contractor's location that have been delegated under FAR 42.202(a) to a
contract administration office.
(4) May not be delegated authority to make any commitments or
changes that affect price, quality, quantity, delivery, or other terms
and conditions of the contract.
(5) Must be designated in writing, and a copy furnished the
contractor and the contract administration office,--
(i) Specifying the extent of the COR's authority to act on behalf of
the contracting officer;
(ii) Identifying the limitations on the COR's authority;
(iii) Specifying the period covered by the designation;
(iv) Stating the authority is not redelegable; and
(v) Stating that the COR may be personally liable for unauthorized
acts.
(6) Must maintain a file for each contract assigned. This file must
include, as a minimum--
(i) A copy of the contracting officer's letter of designation and
other documentation describing the COR's duties and responsibilities;
and
(ii) Documentation of actions taken in accordance with the
delegation of authority.
[[Page 9]]
Sec. 201.602-70 Contract clause.
Use the clause at 252.201-7000, Contracting Officer's
Representative, in solicitations and contracts when appointment of a
contracting officer's representative is anticipated.
201.603 Selection, appointment, and termination of appointment.
Sec. 201.603-2 Selection.
(1) Pursuant to 10 U.S.C. 1724, beginning October 1, 1993, in order
to qualify to serve as a contracting officer with authority to award or
administer contracts for amounts above the small purchase threshold in
FAR 13.000, a person must--
(i) Have completed all mandatory contracting courses required for a
contracting officer at the grade level, or in the position within the
grade of the General Schedule in which the person is serving;
(ii) Have at least two years experience in a contracting position;
(iii) Have--
(A) Received a baccalaureate degree from an accredited educational
institution;
(B) Completed at least 24 semester credit hours, or equivalent, of
study from an accredited institution of higher education in any of the
following disciplines: Accounting, business finance, law, contracts,
purchasing, economics, industrial management, marketing, quantitative
methods, and organization and management; or
(C) Passed an examination considered to demonstrate skills,
knowledge, or abilities comparable to that of an individual who has
completed at least 24 semester credit hours, or equivalent, of study
from an accredited institution of higher education in any of the
disciplines in paragraph (1)(iii)(B) of this subsection; and
(iv) Meet such additional requirements, based on the dollar value
and complexity of the contracts awarded or administered in the position
as may be established by the Secretary of Defense.
(2) The requirements in 201.603-2(1)(iii) do not apply to any
employee who, as of October 1, 1991, had at least 10 years experience in
acquisition positions, in comparable positions in other government
agencies or the private sector, or in similar positions in which the
individual obtained experience directly relevant to the field of
contracting.
(3) The requirements in 201.603-2(1) do not apply to any employee
for purposes of qualifying to serve in the position in which the
employee is serving on October 1, 1993, or any other position in the
same grade and involving the same level of responsibilities as the
position in which the employee is serving on that date.
(4) Waivers may be authorized. Information on waivers is contained
in DoD Manual 5000.52-M, Career Development Program for Acquisition
Personnel.
[58 FR 28463, May 13, 1993]
Sec. 201.603-3 Appointment.
Certificates of Appointment executed under the Armed Services
Procurement Regulation or the Defense Acquisition Regulation have the
same effect as if they had been issued under FAR.
PART 202--DEFINITIONS OF WORDS AND TERMS--Table of Contents
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
Subpart 202.1--Definitions
Sec. 202.101 Definitions.
Contracting activity for DoD also means elements designated by the
director of a defense agency which has been delegated contracting
authority through its agency charter. DoD contracting activities are--
Department of Defense
Real Estate and Facilities Directorate, Washington Headquarters Services
Defense Evaluation Support Activity
Department of Defense Office of Dependents Schools
Office of Civilian Health and Medical Program of the Uniformed Services
Army
Contract Support Agency
Office of the Deputy Chief of Staff for Procurement, Headquarters, U.S.
Army Materiel Command
Armament Munitions and Chemical Command
Missile Command
[[Page 10]]
Research Laboratory
Communications-Electronics Command
Troop Support Agency
Troop Support Command
Tank-Automotive Command
Aviation Systems Command
Training and Doctrine Command
Test and Evaluation Command
Forces Command
Health Services Command
Military District of Washington
U.S. Army, Europe
National Guard Bureau
Corps of Engineers
Information Systems Command
Medical Research and Development Command
U.S. Army, Pacific
Military Traffic Management Command
Space and Strategic Defense Command
Eighth U.S. Army
Depot System Command
Intelligence and Security Command
U.S. Army South
Defense Supply Service--Washington
Directorate of Information Systems for Command, Control, Communications
and Computers, Office of the Secretary of the Army
U.S. Army Special Operations Command
Navy
Deputy, Acquisition and Business Management, Office of the Assistant
Secretary of the Navy (Research, Development, and Acquisition)
Directorate of Procurement Policy, Office of the Assistant Secretary of
the Navy (Research, Development, and Acquisition)
Naval Air Systems Command
Space and Naval Warfare Systems Command
Naval Facilities Engineering Command
Naval Inventory Control Point
Naval Sea Systems Command
Naval Supply Systems Command
Office of Naval Research
Military Sealift Command
Strategic Systems Programs
Headquarters, U.S. Marine Corps
Marine Corps Systems Command
Installations and Logistics, Headquarters, U.S Marine Corps
Air Force
Office of the Deputy Assistant Secretary (Contracting)
Air Force Materiel Command
Air Combat Command
Air Mobility Command
Air Education and Training Command
Pacific Air Forces
United States Air Forces in Europe
Air Force Space Command
Defense Advanced Research Projects Agency
Office of the Deputy Director, Management
Defense Information Systems Agency
Headquarters, Defense Information Systems Agency
Defense Commercial Communications Office
Defense Intelligence Agency
Office of Procurement
Defense Logistics Agency
Office of the Executive Director, Contract Management
Office of the Executive Director, Contracting
Defense Supply Centers
Defense Personnel Support Center
Defense Mapping Agency
Headquarters, Office of Acquisition, Installations and Logistics
Defense Special Weapons Agency
Headquarters, Defense Special Weapons Agency
National Security Agency
Headquarters, National Security Agency
On-Site Inspection Agency
Acquisition Management Office
Ballistic Missile Defense Organization
Headquarters, Ballistic Missile Defense Organization
United States Special Operations Command
Headquarters, United States Special Operations Command
Contracting officer's representative means an individual designated
and authorized in writing by the contracting officer to perform specific
technical or administrative functions.
Departments and agencies, as used in DFARS, means the military
departments and the defense agencies. The military departments are the
Departments of the Army, Navy, and Air Force (the Marine Corps is a part
of the Department of the Navy). The defense agencies are the Defense
Advanced Research Projects Agency, the Defense Commissary Agency, the
Defense Information Systems Agency, the Defense Intelligence Agency, the
Defense Investigative Service, the Defense Logistics Agency, the Defense
Mapping Agency, the Defense Special Weapons Agency, the National
Security Agency, the On-Site Inspection Agency, the Ballistic Missile
Defense Organization, and the
[[Page 11]]
United States Special Operations Command.
Department of Defense (DoD), as used in DFARS, means the Department
of Defense, the military departments, and the defense agencies.
Executive agency means for DoD, the Department of Defense, the
Department of the Army, the Department of the Navy, and the Department
of the Air Force.
Head of the agency, means for DoD, the Secretary of Defense, the
Secretary of the Army, the Secretary of the Navy, and the Secretary of
the Air Force. Subject to the direction of the Secretary of Defense, the
Under Secretary of Defense (Acquisition), and the Director of Defense
Procurement, the directors of the defense agencies have been delegated
authority to act as head of the agency for their respective agencies
(i.e., to perform functions under the FAR or DFARS reserved to a head of
agency or agency head), except for such actions that by terms of
statute, or any delegation, must be exercised within the Office of the
Secretary of Defense.
Senior procurement executive, means for DoD--
Department of Defense (including the defense agencies)--Under
Secretary of Defense (Acquisition & Technology);
Department of the Army--Assistant Secretary of the Army (Research,
Development and Acquisition);
Department of the Navy--Assistant Secretary of the Navy (Research,
Development and Acquisition);
Department of the Air Force--Assistant Secretary of the Air Force
(Acquisition).
The directors of the defense agencies have been delegated authority
to act as senior procurement executive for their respective agencies,
except for such actions that by terms of statute, or any delegation,
must be exercised by the Under Secretary of Defense (Acquisition &
Technology).
[56 FR 36287, July 31, 1991, as amended at 56 FR 67212, Dec. 30, 1991;
57 FR 42629, Sept. 15, 1992; 59 FR 27668, May 27, 1994; 60 FR 29497,
June 5, 1995; 60 FR 61591, Nov. 30, 1995; 61 FR 7741, Feb. 29, 1996; 61
FR 50451, Sept. 26, 1996]
PART 203--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST--Table of Contents
Sec.
Subpart 203.1--Safeguards
203.103 Independent pricing.
203.103-2 Evaluating the certification.
203.104 Procurement integrity.
203.104-4 Definitions.
203.104-5 Disclosure of proprietary and source selection information.
203.170 Statutory prohibitions on compensation to former DoD employees.
203.170-1 Policy.
203.170-2 Reporting requirements.
203.170-3 Penalties.
203.170-4 Contract clause.
Subpart 203.2--Contractor Gratuities to Government Personnel
203.203 Reporting suspected violations of the Gratuities clause.
Subpart 203.3--Reports of Suspected Antitrust Violations
203.301 General.
Subpart 203.4--Contingent Fees
203.409 Misrepresentations or violations of the Covenant Against
Contingent Fees.
Subpart 203.5--Other Improper Business Practices
203.502 Subcontractor kickbacks.
203.502-2 General.
203.570 Employment prohibitions on persons convicted of fraud or other
DoD contract-related felonies.
203.570-1 Scope.
203.570-2 Policy.
203.570-3 Waiver.
203.570-4 Reporting.
203.570-5 Contract clause.
Subpart 203.7--Voiding and Rescinding Contracts
203.703 Authority.
Subpart 203.70--Contractor Standards of Conduct
203.7000 Policy.
203.7001 Procedures.
203.7002 Contract clause.
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
Source: 56 FR 36288, July 31, 1991, unless otherwise noted.
[[Page 12]]
Subpart 203.1--Safeguards
203.103 Independent pricing.
Sec. 203.103-2 Evaluating the certification.
(b)(3) The contracting officer also shall report the matter in
accordance with 209.406-3 and DoDD 7050.5, Coordination of Remedies for
Fraud and Corruption Related to Procurement Activities.
203.104 Procurement integrity.
Sec. 203.104-4 Definitions.
(c)(2) Each order under a basic ordering agreement is a separate
procurement action.
Sec. 203.104-5 Disclosure of proprietary and source selection information.
(e)(4) For purposes of FAR 3.104-5(e)(4) only, DoD follows the
notification procedures in FAR 27.404(h). However, the first sentence in
FAR 27.404(h) does not apply to DoD.
203.170 Statutory prohibitions on compensation to former DoD employees.
Sec. 203.170-1 Policy.
(a) 10 U.S.C. 2397b prohibits DoD officials who left DoD service on
or after April 16, 1987, and who, while serving with the DoD, performed
acquisition related functions in connection with a major defense
contractor, from accepting compensation from that contractor for a
period of two years after the officials have left service with the DoD.
Additional DoD implementation of the statute is in DoD Directive 5500.7,
Standards of Conduct. (See the clause at 252.203-7000, Statutory
Prohibition on Compensation to Former Department of Defense Employees,
for definition of terms.) The prohibitions in 10 U.S.C. 2397b do not
apply to contractors that supply only commercial items to DoD.
(b) Section 507 of the Ethics Reform Act of 1989 suspended the
prohibitions of 10 U.S.C. 2397b from December 1, 1989, to November 30,
1990. Section 815 of the 1991 DoD Authorization Act (Pub. L. 101-510)
continued the suspension from December 1, 1990, through May 31, 1991.
During the period of the suspension, the clause which appeared at
252.203-7002, Statutory Compensation Prohibitions and Reporting
Requirements Relating to Certain Former Department of Defense (DoD)
Employees, was inserted in solicitations and contracts, but the
provision of the clause that prohibited the offering of compensation to
a person if the compensation would violate 10 U.S.C. 2397b, and the
remedies for violating that provision, were not applied.
[56 FR 36288, July 31, 1991, as amended at 60 FR 61591, Nov. 30, 1995]
Sec. 203.170-2 Reporting requirements.
Paragraph (c) of the clause at 252.203-7000, Statutory Prohibitions
on Compensation to Former Department of Defense Employees, requires
major defense contractors to report on the employment of certain former
DoD employees.
Sec. 203.170-3 Penalties.
(a) Major defense contractors are subject to the following penalties
for knowing failure to comply with the statute, the contractual
prohibition, or the reporting requirements--
(1) Civil fines up to $500,000 for knowingly offering or providing
compensation to another person with knowledge that acceptance of that
compensation is or would be in violation of the statute.
(2) Liquidated damages in the amount of either $100,000 or three
times the amount of compensation paid by the contractor to the former
DoD official, whichever is greater, for failure to comply with the
contract prohibition.
(3) An administrative penalty not to exceed $10,000 for failure to
report as required by the statute and as implemented in the clause at
252.203-7000, Statutory Prohibitions on Compensation to Former
Department of Defense Employees.
(b) Liquidated damages will be assessed in accordance with agency
procedures in coordination with the Designated Agency Ethics Official.
Sec. 203.170-4 Contract clause.
Use the clause at 252.203-7000, Statutory Prohibitions on
Compensation to
[[Page 13]]
Former Department of Defense Employees, in all solicitations and
contracts expected to exceed $100,000, except solicitations and
contracts for commercial items.
[60 FR 61591, Nov. 30, 1995]
Subpart 203.2--Contractor Gratuities to Government Personnel
Sec. 203.203 Reporting suspected violations of the Gratuities clause.
Report suspected violations of the Gratuities clause in accordance
with 209.406-3 and DoDD 7050.5, Coordination of Remedies for Fraud and
Corruption Related to Procurement Activities.
Subpart 203.3--Reports of Suspected Antitrust Violations
Sec. 203.301 General.
(b) Report suspected antitrust violations in accordance with
209.406-3 and DoDD 7050.5, Coordination of Remedies for Fraud and
Corruption Related to Procurement Activities.
Subpart 203.4--Contingent Fees
Sec. 203.409 Misrepresentations or violations of the Covenant Against Contingent Fees.
(b) Report suspected fraud or other criminal conduct in accordance
with 209.406-3 and DoDD 7050.5, Coordination of Remedies for Fraud and
Corruption Related to Procurement Activities.
Subpart 203.5--Other Improper Business Practices
Sec. 203.502 Subcontractor kickbacks.
Report suspected violations of the Anti-Kickback Act in accordance
with 209.406-3 and DoDD 7050.5, Coordination of Remedies for Fraud and
Corruption Related to Procurement Activities.
Sec. 203.502-2 General.
(h) The DoD Inspector General has designated Special Agents of the
following investigative organizations as representatives for conducting
inspections and audits under the Anti-Kickback Act of 1986:
(i) U.S. Army Criminal Investigation Command.
(ii) Naval Criminal Investigative Service.
(iii) Air Force Office of Special Investigations.
(iv) Defense Criminal Investigative Service.
[56 FR 36288, July 31, 1991, as amended at 60 FR 29497, June 5, 1995]
203.570 Employment prohibitions on persons convicted of fraud or other
DoD contract-related felonies.
Sec. 203.570-1 Scope.
This subpart prescribes policies and procedures to implement 10
U.S.C. 2408.
Sec. 203.570-2 Policy.
(a) Contractors or subcontractors shall not knowingly allow a
person, convicted after September 29, 1988, of fraud or any other felony
arising out of a contract with the DoD, to serve--
(1) In a management or supervisory capacity on any DoD contract or
first-tier subcontract; or,
(2) On its board of directors; or
(3) As a consultant, agent, or representative.
(b) The period covered by the prohibition in paragraph (a) of this
subsection is for five years from the date of conviction unless waived
in the interest of national security by the agency head or designee.
Sec. 203.570-3 Waiver.
(a) The contracting officer shall--
(1) Review any request for waiver; and
(2) Deny the request if the contracting officer decides the waiver
is not required in the interests of national security; or
(3) Forward the request to the head of the agency or designee for
approval if the contracting officer decides the waiver may be in the
interest of national security.
(b) The head of the agency or designee shall report all waivers
granted, and the reasons for granting the waiver, to the Under Secretary
of Defense (Acquisition), who will forward the report to Congress as
required by 10 U.S.C. 2408(a)(3).
[[Page 14]]
Sec. 203.570-4 Reporting.
When a Defense contractor or first-tier subcontractor is found in
violation of the prohibition in 203.570-2, the contracting officer shall
report the matter in accordance with 209.406-3 and DoDD 7050.5,
Coordination of Remedies for Fraud and Corruption Related to Procurement
Activities.
Sec. 203.570-5 Contract clause.
Use the clause at 252.203-7001, Special Prohibition on Employment,
in all solicitations and contracts exceeding the simplified acquisition
threshold in FAR part 13, except solicitations and contracts for
commercial items.
[60 FR 61592, Nov. 30, 1995]
Subpart 203.7--Voiding and Rescinding Contracts
Sec. 203.703 Authority.
The authority to act for the agency head under this subpart is
limited to a level no lower than an official who is appointed by and
with the advice of the Senate, without power of redelegation. For the
defense agencies, for purposes of this subpart, the agency head designee
is the Under Secretary of Defense (Acquisition & Technology).
[56 FR 36288, July 31, 1991, as amended at 60 FR 61592, Nov. 30, 1995]
Subpart 203.70--Contractor Standards of Conduct
Sec. 203.7000 Policy.
Government contractors must conduct themselves with the highest
degree of integrity and honesty. Contractors should have standards of
conduct and internal control systems that--
(1) Are suitable to the size of the company and the extent of their
involvement in Government contracting,
(2) Promote such standards,
(3) Facilitate timely discovery and disclosure of improper conduct
in connection with Government contracts, and
(4) Ensure corrective measures are promptly instituted and carried
out.
Sec. 203.7001 Procedures.
(a) A contractor's system of management controls should provide
for--
(1) A written code of business ethics and conduct and an ethics
training program for all employees;
(2) Periodic reviews of company business practices, procedures,
policies, and internal controls for compliance with standards of conduct
and the special requirements of Government contracting;
(3) A mechanism, such as a hotline, by which employees may report
suspected instances of improper conduct, and instructions that encourage
employees to make such reports;
(4) Internal and/or external audits, as appropriate;
(5) Disciplinary action for improper conduct;
(6) Timely reporting to appropriate Government officials of any
suspected or possible violation of law in connection with Government
contracts or any other irregularities in connection with such contracts;
and
(7) Full cooperation with any Government agencies responsible for
either investigation or corrective actions.
(b) Contractors who are awarded a DoD contract of $5 million or more
must display DoD Hotline Posters prepared by the DoD Office of the
Inspector General unless--
(1) The contract will be performed in a foreign country; or
(2) The contractor has established an internal reporting mechanism
and program, as described in paragraph (a) of this section.
Sec. 203.7002 Contract clause.
Use the clause at 252.203-7002, Display of DoD Hotline Poster, in
solicitations and contracts expected to exceed $5 million, except when
performance will take place in a foreign country.
PART 204--ADMINISTRATIVE MATTERS--Table of Contents
Sec.
Subpart 204.1--Contract Execution
204.101 Contracting officer's signature.
[[Page 15]]
Subpart 204.2--Contract Distribution
204.201 Procedures.
204.202 Agency distribution requirements.
Subpart 204.4--Safeguarding Classified Information Within Industry
204.402 General.
204.404 Contract clause.
204.404-70 Additional contract clauses.
Subpart 204.6--Contract Reporting
204.600 Scope of subpart.
204.601 Record requirements.
204.602 Federal Procurement Data System.
204.602-70 Solicitation provision.
204.670 Defense Contract Action Data System (DCADS).
204.670-1 Definitions.
204.670-2 Reportable contracting actions.
204.670-3 Contracting office responsibilities.
204.670-4 Contract administration office responsibilities.
204.670-5 Departmental data collection point responsibilities.
204.670-6 Types of DD Form 350 reports.
204.670-7 Report formats.
204.670-8 Security classification.
204.670-9 Reporting of individual contracting actions of $25,000 or
less.
Subpart 204.8--Contract Files
204.802 Contract files.
204.804 Closeout of contract files.
204.804-1 Closeout by the office administering the contract.
204.804-2 Closeout of the contracting office files if another office
administers the contract.
204.805 Disposal of contract files.
Subpart 204.9--Information Reporting to the Internal Revenue Service
204.902 General.
Subpart 204.70--Uniform Procurement Instrument Identification Numbers
204.7000 Scope.
204.7001 Policy.
204.7002 Procedures.
204.7003 Basic PII number.
204.7004 Supplementary PII numbers.
Subpart 204.71--Uniform Contract Line Item Numbering System
204.7100 Scope.
204.7101 Definitions.
204.7102 Policy.
204.7103 Contract line items.
204.7103-1 Criteria for establishing.
204.7103-2 Numbering procedures.
204.7104 Contract subline items.
204.7104-1 Criteria for establishing.
204.7104-2 Numbering procedures.
204.7105 Contract exhibits and attachments.
204.7106 Contract modifications.
204.7107 Contract accounting classification reference number (ACRN).
Subpart 204.72--Contractor Identification
204.7200 Scope of subpart.
204.7201 Definitions.
204.7202 General.
204.7202-1 CAGE codes.
204.7202-2 Contractor identification number.
204.7202-3 Taxpayer identification numbers.
204.7202-4 Locally developed coding systems.
204.7203 Responsibilities of contracting officers.
204.7204 Maintenance.
204.7204-1 Maintenance of the CAGE file.
204.7204-2 Maintenance of contractor identification number codes.
204.7205 Novation agreements, mergers and sales of assets.
204.7206 Using CAGE codes to identify agents and brokers.
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
Source: 56 FR 36289, July 31, 1991, unless otherwise noted.
Subpart 204.1--Contract Execution
Sec. 204.101 Contracting officer's signature.
(a)(i) Include the contracting officer's telephone number on
contracts and modifications.
(ii) The contracting officer may sign bilateral modifications of a
letter contract before signature by the contractor.
Subpart 204.2--Contract Distribution
Sec. 204.201 Procedures.
(1) The procuring contracting officer (PCO) retains the original
signed contract for the official contract file. Administrative
contracting officers and terminations contracting officers provide the
original of each modification to the PCO for retention in the official
contract file. Unless otherwise directed by department/agency
procedures, the office issuing the orders maintains the original of
orders under basic ordering agreements and the original of provisioning
orders.
[[Page 16]]
(2) Ensure that distribution of contracts and modifications is
consistent with security directives.
(e)(i) Distribute one copy of each of the following types of
contracts or modifications to the appropriate Defense Contract Audit
Agency (DCAA) field audit office (listed in the DCAA Directory--
Headquarters and Field Offices)--
(A) Cost reimbursement;
(B) Time-and-materials;
(C) Labor-hour;
(D) Fixed price contracts with provisions for redetermination,
incentives, economic price adjustment, or cost allowability; and
(E) Any other contract that requires audit service.
(ii) If there is a question as to the appropriate DCAA field audit
office, request the assistance of the DCAA procurement liaison auditor
or the nearest DCAA field audit office.
(f) Provide two copies to offices performing contract administration
support functions.
[56 FR 36289, July 31, 1991, as amended at 59 FR 27668, May 27, 1994]
Sec. 204.202 Agency distribution requirements.
(1) Distribute copies of contracts as follows--
(i) Four copies to the contract administration office (send
simultaneously with the copy furnished under FAR 4.201(b));
(ii) One copy to each consignee indicated in the contract. A
transshipping terminal is not a consignee.
(A) Inventory control points that have an automated uniform
inventory control point data base that interfaces with consignees may
use their automated procedure rather than sending a written copy of the
contract. However, when inspection is required at destination, send a
written copy to the consignee.
(B) The Defense Logistics Agency is authorized to prescribe
alternate procedures for distribution of contract documents in Defense
Subsistence Region, Europe;
(iii) Two copies to the military interdepartmental purchase request
requiring activity in the case of coordinated acquisition;
(iv) One copy to the contract administration office (CAO) automatic
data processing point, except when the DoDAAD code is the same as that
of either the CAO or payment office (see DLAH 4105.4, DoD Directory of
Contract Administration Services Components); and
(v) One copy, or an extract of the pertinent information, to the
cognizant Defense Investigative Service office listed in DoD 5100.76-M,
Physical Security of Sensitive Conventional Arms, Ammunition, and
Explosives, when the clause at 252.223-7007, Safeguarding Sensitive
Conventional Arms, Ammunition, and Explosives, is included in the
contract.
(2) The activity executing a contract modification shall furnish a
copy of the basic contract and all modifications to--
(i) The new and old payment office when adding or changing a payment
office;
(ii) The new contract administration office, a new consignee or
other activity, based on the extent to which each activity is concerned
with the basic contract and modifications.
(3) Distribution of modifications issued to provide initial or
amended shipping instructions under 204.7004(c)(3)(iii) and 204.7004(f)
may be limited to the following--
(i) Contractor, one copy;
(ii) Receiving activity, one copy each;
(iii) Contract administration office, one copy;
(iv) Payment office, one copy; and
(v) Contract administration office automatic data processing point,
one copy.
(4) Distribution of modifications generated by automated means
(computer programs) may be limited to the following--
(i) Contractor, one copy;
(ii) Contract administration office, one copy;
(iii) New payment office, one copy;
(iv) Procuring contracting office, one copy;
(v) Funding activities, one copy to each; and
(vi) Consignee, one copy to each.
[56 FR 36289, July 31, 1991, as amended at 61 FR 7742, Feb. 29, 1996]
[[Page 17]]
Subpart 204.4--Safeguarding Classified Information Within Industry
Sec. 204.402 General.
(1) Subpart 239.74 contains policy and procedures for securing
telecommunications between Government agencies and contractors and
subcontractors.
(2) Pursuant to section 808 of Pub. L. 102-190, DoD employees or
members of the Armed Forces who are assigned to or visiting a contractor
facility and are engaged in oversight of an acquisition program will
retain control of their work product. Classified work products of DoD
employees or members of the Armed Forces shall be handled in accordance
with DoD 5220.22-M, Industrial Security Manual, and DoD 5220.22-R,
Industrial Security Regulation. Contractor procedures for protecting
against unauthorized disclosure of information shall not require DoD
employees or members of the Armed Forces to relinquish control of their
work products, whether classified or not, to a contractor.
[57 FR 14992, Apr. 23, 1992]
204.404 Contract clause.
Sec. 204.404-70 Additional contract clauses.
(a) Use the clause at 252.204-7000, Disclosure of Information, in
solicitations and contracts when the contractor will have access to or
generate unclassified information that may be sensitive and
inappropriate for release to the public.
(b) Use the clause at 252.204-7003, Control of Government Personnel
Work Product, in all solicitations and contracts.
[57 FR 14992, Apr. 23, 1992]
Subpart 204.6--Contract Reporting
Sec. 204.600 Scope of subpart.
The Defense Contract Action Data System (DCADS) (see 204.670) is the
DoD reporting system which supports the uniform reporting requirements
for--
(1) DD Form 350, Individual Contracting Action Report; and
(2) DD Form 1057, Monthly Summary of Actions $25,000 or Less.
Sec. 204.601 Record requirements.
(a) The DCADS meets these record retention requirements.
(d) The Directorate for Information, Operation, and Reports (DIOR),
of the Washington Headquarters Services (WHS) transmits required DoD
information to the Federal Procurement Data System.
Sec. 204.602 Federal Procurement Data System.
(c) DoD uses the DD Form 350, Individual Contracting Action Report,
in lieu of the SF 279, Federal Procurement Data System (FPDS) Individual
Contract Action Report. DoD uses the DD Form 1057, Monthly Contracting
Summary of Actions $25,000 or Less, in lieu of the SF 281, FPDS Summary
Contract Action Report ($25,000 or Less).
Sec. 204.602-70 Solicitation provision.
When the Commercial and Government Entity codes for the prospective
offerors are not available to the contracting office, use the provision
at 252.204-7001, Commercial and Government Entity (CAGE) Code Reporting.
[61 FR 61592, Nov. 30, 1995]
204.670 Defense Contract Action Data System (DCADS)
Sec. 204.670-1 Definitions.
As used in this section and 253.204-70 and 253.204-71--
(a) Contract administration office means an office, other than the
contracting office, which awards or executes contracting actions on
behalf of the contracting office, including actions relating to the
settlement of terminated contracts.
(b) Contracting action means any written action obligating or
deobligating funds in connection with the purchasing, renting, or
leasing of supplies, services, or construction. The term does not
include grants or cooperative agreements. The term includes, but is not
limited to--
(1) Definitive contracts, including notices of award;
(2) Letter contracts;
(3) Purchase orders;
[[Page 18]]
(4) Orders under existing contracts or agreements, e.g.--
(i) Orders against basic ordering agreements, including service
orders issued on DD Form 1164 by installation transportation offices;
(ii) Calls against blanket purchase agreements;
(iii) Job orders;
(iv) Task orders;
(v) Delivery orders;
(vi) Communication services authorizations; and
(vii) Notices of termination or cancellation.
(5) Contract modifications, e.g.--
(i) Change orders;
(ii) Supplemental agreements;
(iii) Funding actions; and
(iv) Option exercises.
(c) Departmental data collection points are--
(1) For the Army (including Corps of Engineers civil Works): U.S.
Army Contracting Support Agency, Attn: SFAE-CSA-PPS, 5109 Leesburg Pike,
Suite 916, Falls Church, VA 22041-3201
(2) For the Navy: Fleet Industrial Supply Center, Norfolk Detachment
Washington, Attn: PMRS, Washington Navy Yard, Bldg. 200, 4th Floor,
800 M Street, SW, Washington, DC 20374-2004
(3) For the Air Force: SAF/AQCI, 1060 Air Force Pentagon,
Washington, DC 20330-1060
(4) For the Defense Logistics Agency: Headquarters, Defense
Logistics Agency, 8725 John J. Kingman Road, Suite 3147, Attn:
Directorate of Procurement (Acquisition Operations Team, Ft. Belvoir, VA
22060-6221
(5) For other DoD contracting activities: U.S. Army Contracting
Support Agency, Attn: SFAE-CSA-PPS, 5109 Leesburg Pike, Suite 916, Falls
Church, VA 22041-3201.
(d) United States and outlying areas is defined in Federal
Information Processing Standard Publication (FIPS PUB) 55-2, Guideline:
Codes for Named Populated Places, Primary County Divisions, and Other
Locational Entities of the United States and Outlying Areas. Outlying
areas are--
(1) American Samoa;
(2) The Federated States of Micronesia;
(3) Guam;
(4) The Marshall Islands;
(5) Northern Mariana Islands;
(6) The Trust Territory of Palau;
(7) Puerto Rico;
(8) The U.S. Minor Outlying Islands; and
(9) The U.S. Virgin Islands.
[56 FR 36289, July 31, 1991, as amended at 60 FR 61592, Nov. 30, 1995;
61 FR 51030, Sept. 30, 1996]
Sec. 204.670-2 Reportable contracting actions.
(a) Except as provided in paragraph (c) of this subsection, complete
a DD Form 350 for--
(1) All contracting actions that obligate or deobligate more than
$25,000; and
(2) All contracting actions that obligate or deobligate $25,000 or
less if the action is in a designated industry group under the small
business competitiveness demonstration program (See 204.670-9 and FAR
subpart 19.10).
(b) Except as provided in paragraph (c) of this subsection, complete
a DD Form 1057 for all contracting actions which obligate or deobligate
$25,000 or less, including contracting actions reported on a DD Form 350
under paragraph (a)(2) of this subsection.
(c) Do not report on a DD Form 350, contingency actions defined in
213.101. Summarize these actions on a DD Form 1057 in accordance with
the instructions in 253.204-71(a)(3).
(d) The following contracting actions shall not be reported on
either the DD Form 350 or DD Form 1057:
(1) Imprest fund transactions, SF 44 purchases, and micro-purchases
obtained through use of the purchase card;
(2) Transactions that cite only nonappropriated funds (Funds held in
trust accounts for foreign governments shall be treated as appropriated
funds.);
(3) Transactions for purchase of land, or rental or lease of real
property, when the General Services Administration (GSA) executes the
contracting action;
(4) Orders from GSA stock and the GSA Consolidated Purchase Program;
(5) Transactions that involve Government bills of lading or
transportation requests, except orders placed under Regional Storage
Management Office's (RSMO) BOAs;
[[Page 19]]
(6) Requisitions transferring supplies within or among the
departments or agencies; and
(7) Pursuant to 204.670-6(b), orders placed by other contracting
activities against indefinite delivery contracts awarded by the--
(i) Military Sealift Command;
(ii) Defense Fuel Supply Center for petroleum and petroleum
products; or
(iii) Defense Supply Center, Richmond, for petroleum products.
[56 FR 36289, July 31, 1991, as amended at 57 FR 53598, Nov. 12, 1992;
60 FR 61592, Nov. 30, 1995; 61 FR 51030, Sept. 30, 1996]
Sec. 204.670-3 Contracting office responsibilities.
(a) For DD Form 350, contracting offices--
(1) Prepare the appropriate type of DD Form 350 (see 204.670-6), in
accordance with the instructions in 253.204-70, on all reportable
contracting actions (see 204.670-2(a)), including actions accomplished
by contract administration offices on behalf of the contracting office.
(2) Complete the DD Form 350 in the required format within three
working days after the date on which the dollars were actually obligated
or deobligated (see 204.670-7). Submit all contracting actions for the
calendar month to the departmental data collection point (see 204.670-
1(c)) in accordance with departmental/agency procedures, except--
(i) For Defense Fuel Supply Center major petroleum acquisitions
which result in multiple awards, the due date is ten working days when
permitted by the departmental data collection point;
(ii) For actions executed in the month of September, due dates may
be extended ten calendar days when permitted by the departmental data
collection point; and
(iii) For actions accomplished by a contract administration office,
the due date is three working days after the receipt of the contractual
instrument annotated ``DD FORM 350 REPORTING COPY.''
(3) Prepare and submit a corrected or cancelling DD Form 350 as
required in accordance with departmental data collection point
instructions.
(4) Establish a control system for assigning report numbers to DD
Forms 350 (Block A2 of the DD Form 350). The number shall have four
positions and may be any combination of alpha or numeric characters. If
more than one activity within a contracting office utilizes the same
reporting office code, the contracting office shall assign separate
blocks of numbers to each activity in order to prevent duplication of
report numbers.
(5) Maintain a copy of the DD Form 350 in the contract file, in
accordance with departmental/agency procedures.
(b) For DD Form 1057, contracting offices--
(1) Prepare a DD Form 1057, in accordance with the instructions in
253.204-71, covering reportable contracting actions (see 204.670-2(b)),
including actions accomplished by contract administration offices on
behalf of the contracting office. An installation, base, or other
activity may have more than one contracting office code to separate the
various types of acquisitions, such as base and central contracting, or
RDT&E and non-RDT&E acquisition. Each contracting office with a separate
code must submit its own DD Form 1057.
(2) Complete the DD Form 1057 in the required format within three
working days after the cutoff of the reporting month (see 204.670-7 for
alternate formats). Contracting offices are authorized to cut off the
reporting month no earlier than the 25th calendar day. For September
only, the cutoff date shall not be later than September 30. Submit the
DD Form 1057 to the departmental data collection point in accordance
with departmental/agency procedures.
(3) Unless otherwise instructed by the departmental data collection
point, do not submit revised DD Form 1057 reports. Include any required
corrections or adjustments in following month's report.
[56 FR 36289, July 31, 1991, as amended at 61 FR 51030, Sept. 30, 1996]
Sec. 204.670-4 Contract administration office responsibilities.
Contract administration offices executing actions subject to DD Form
350 or DD Form 1057 reporting must submit an annotated copy of the
contractual
[[Page 20]]
instrument to the contracting office so that the contracting office can
submit the required report.
(a) For DD Form 350, annotate in the heading of the contractual
instrument in large block letters ``DD FORM 350 REPORTING COPY.'' Send
the annotated copy to the contracting office within one working day
after the action date.
(b) For DD Form 1057, annotate in the heading of the contractual
instrument in large block letters ``DD FORM 1057 REPORTING COPY.'' Send
the annotated copy with the normal distribution.
Sec. 204.670-5 Departmental data collection point responsibilities.
Departmental data collection points--
(a) Collect DD Forms 350 and 1057 data provided by their contracting
activities;
(b) Electronically record the data in accordance with the
instructions for recording and editing developed by WHS-DIOR with the
majority agreement of the departments/agencies and prescribed by the
Director of Defense Procurement; and
(c) Submit monthly reports (noncumulative) to Washington
Headquarters Services, ATTN: DIOR, within 18 days after the close of the
reporting period, except the due date for September may be extended for
no more than ten days. Reports control symbols, DD-P&L(M) 1014 and DD-
P&L(M) 1015, respectively, apply to reports submitted to WHS-DIOR for DD
Form 350 actions and DD Form 1057.
[61 FR 51030, Sept. 30, 1996]
Sec. 204.670-6 Types of DD Form 350 reports.
There are three types of reports--single, consolidated, and
multiple.
(a) A single report is one DD Form 350 report per contracting
action.
(b) A consolidated report is one DD Form 350 report which combines
several contracting actions.
(1) Prepare consolidated reports for--
(i) Air Mobility Command awards for international airlift services.
The Command reports these at the end of each operating month with one DD
Form 350 for each airlift contract.
(ii) Military Sealift Command awards of indefinite delivery
contracts for ocean transportation. The Command reports at the beginning
of each fiscal year the estimated value of the orders for that fiscal
year on one DD Form 350.
(iii) Defense Fuel Supply Center of Defense Supply Center, Richmond,
indefinite delivery contracts for petroleum or petroleum supplies. The
Centers, at the time of award, report the estimated value of the orders
to be placed against the contract on one DD Form 350.
(iv) Order place by the Defense commissary Agency (DeCA) for resale
items in excess of $25,000. DeCA consolidates the orders monthly and
reports the cumulative dollar amounts and actions on one DD Form 350 in
accordance with departmental/agency procedures. Defense Logistics Agency
activities submit single rather than consolidated reports.
(v) Vouchers processed by the U.S. Army Contracting Command, Europe
(USACCE), for the purchase of utilities from municipalities (e.g., gas,
electricity, water, sewage, steam, snow removal, and garbage
collection). USACCE consolidates these transactions monthly and reports
the cumulative dollar amount on one DD Form 350 in accordance with
departmental/agency procedures.
(2) Consolidated reports may be prepared in accordance with
departmental/agency procedures for orders under communications service
agreements for local dial tone services.
(c) A multiple report is more than one DD Form 350 per contracting
action. Prepare multiple reports if--
(1) The contracting action includes foreign military sales (FMS)
requirements in addition to non-FMS requirements (Block B9 on the DD
Form 350). Submit one DD Form 350 report for the FMS requirements and
another DD Form 350 report for the non-FMS requirements, except if
either of the portions in $25,000 or less, report the $25,000 or less
portion on a DD Form 1057 in lieu of a DD Form 350.
(2) The contracting action includes more than one type of contract
(Block C5 on the DD Form 350) and the type with the least dollar value
exceeds
[[Page 21]]
$500,000. Prepare a separate DD Form 350 for each contract type.
[56 FR 36289, July 31, 1991, as amended at 59 FR 27668, May 27, 1994; 60
FR 61592, Nov. 30, 1995; 61 FR 51031, Sept. 30, 1996]
Sec. 204.670-7 Report formats.
Contracting offices submit the signed original DD Forms 350 and
1057, unless the data collection point approves use of an automated
facsimile or electronic equivalent containing the information.
Sec. 204.670-8 Security classification.
Submit DD Forms 350 as unclassified documents. Classified contracts
are not exempt from reporting solely because the contract is classified.
Contact the appropriate departmental data collection points for special
instructions if it is necessary for security reasons to modify coding of
all or any individual blocks on the DD Form 350. If contact cannot be
made for security reasons, obtain instructions from the Office of the
Deputy to the Under Secretary of Defense for Policy Support, ATTN:
Director for Special Programs. Telephone number is (703) 614-0578/9 or
DSN 224-0578/9.
[61 FR 51031, Sept. 30, 1996]
Sec. 204.670-9 Reporting of individual contracting actions of $25,000 or less.
Under the Small Business Competitiveness Demonstration Program (see
FAR subpart 19.10), contract actions of $25,000 or less in four
designated industry groups (for Army, includes dredging) must be
reported in the same manner as if the action were in excess of $25,000.
(a) Report contract actions of $25,000 or less in the designated
industry groups on both the DD Form 350 and the DD Form 1057.
(b) The following contracting actions are not subject to the
additional DD Form 350 reporting, although they must still be reported
on the DD Form 1057:
(1) Contracting actions of $500 or less.
(2) Foreign military sales.
(3) Orders or modifications under a Federal schedule.
(4) Actions with a government agency.
(5) Actions with non-U.S. business firms.
(6) Actions where the place of performance is other than the United
States and its outlying areas.
[56 FR 36289, July 31, 1991, as amended at 61 FR 51031, Sept. 30, 1996]
Subpart 204.8--Contract Files
Sec. 204.802 Contract files.
Official contract files shall consist of--
(1) Only original, authenticated or conformed copies of contractual
instruments--
(i) Authenticated copies means copies that are shown to be genuine
in one of two ways--
(A) Certification as true copy by signature of an authorized person;
or
(B) Official seal.
(ii) Conformed copies means copies that are complete and accurate,
including the date signed and the names and titles of the parties who
signed them.
(2) Signed or official record copies of correspondence, memoranda,
and other documents.
Sec. 204.804 Closeout of contract files.
Normally, the closeout date for contract files is the date in Block
9d on the DD Form 1594, Contract Completion Statement, or in columns 59-
65 on the PK9. If the contracting office must do a major closeout action
that will take longer than three months after the date shown in Block 9d
of the DD Form 1594, or in columns 59-65 of the PK9--
(1) The closeout date for file purposes will be the date in Block
10e of the DD Form 1594 or the date of the closeout statement executed
when the MILSCAP PK9 is received.
(2) The contracting office shall notify the contract administration
office of the revised closeout date by either sending a copy of the
completed DD Form 1594 or by preparing a MILSCAP Format Identifier PKZ,
Contract Closeout Extension.
Sec. 204.804-1 Closeout by the office administering the contract.
(1) For contracting offices administering their own contracts,
locally
[[Page 22]]
developed forms or statement of completion may be used instead of the DD
Form 1594, Contract Completion Statement. Whichever method is used, the
form shall be retained in the official contract file.
(2) For contracts valued above the small purchase threshold, prepare
a DD Form 1597, Contract Closeout Check List, (or agency equivalent) to
ensure that all required contract actions have been satisfactorily
accomplished.
Sec. 204.804-2 Closeout of the contracting office files if another office administers the contract.
(1) When an office, other than the contracting office, administers
the contract, it shall--
(i) Provide the contracting office an interim contract completion
statement when the contract is physically completed and accepted. This
notice may be in the form of either a DD Form 1594, Contract Completion
Statement, or a MILSCAP Format Identifier Interim PK9, Contract Physical
Completion. When the DD Form 1594 is used, the contracting officer--
(A) Annotates Block 8, Remarks, with--
(1) ``Notice of Physical Completion;''
(2) Final acceptance date;
(3) Signature of a responsible official; and
(4) Date signed.
(B) Does not complete Blocks 9 (b), (c), and (d) at this time;
(ii) Prepare a DD Form 1597, Contract Closeout Check List, if
necessary, to determine that all the required actions have been done;
(iii) Initiate DD Form 1593, Contract Administration Completion
Record, if necessary to obtain statements from other organizational
elements that they have completed the actions they are responsible for;
and
(iv) Upon final payment--
(A) Process the DD Form 1594 with Blocks 1 through 9 completed or
the MILSCAP Format Identifier PK9 verifying that all contract
administration office actions have been done; and
(B) Send the original of the DD Form 1594 or the MILSCAP Format
Identifier PK9 to the contracting office, and file a copy in the
official contract file.
(2) If the administrative contracting officer (ACO) cannot closeout
a contract within the specified time period (see FAR 4.804-1), the ACO
must notify the procuring contracting officer (PCO) within 45 days after
the expiration of the time period of--
(i) The reasons for the delay; and
(ii) New target date for closeout. If MILSCAP procedures apply, the
ACO shall use the MILSCAP Format Identifier PKX, Unclosed Contract
Status, to provide this notice to the PCO.
(3) If the contract still is not closed out by the new target date,
the ACO shall again notify the PCO with the reasons for delay and new
target date. If MILSCAP procedures apply, continue to use the MILSCAP
Format Identifier PKX, Unclosed Contract Status, to provide this notice.
Sec. 204.805 Disposal of contract files.
(1) The sources of the period for which official contract files must
be retained are General Records Schedule 3 (Procurement, Supply, and
Grant Records) and General Records Schedule 6 (Accountable Officers'
Accounts Records). Copies of the General Records Schedule may be
obtained from the National Archives and Records Administration,
Washington, DC 20408.
(2) Deviations from the periods cannot be granted by the Defense
Acquisition Regulatory Council. Forward requests for deviations to both
the General Accounting Office and the National Archives and Records
Administration.
(3) Hold completed contract files in the office responsible for
maintaining them for a period of 12 months after completion. After the
initial 12 month period, send the records to the local records holding
or staging area until they are eligible for destruction. If no space is
available locally, transfer the files to the General Services
Administration Federal Records Center that services the area.
(4) Duplicate or working contract files should contain no originals
of materials that properly belong in the official files. Destroy working
files as soon as practicable once they are no longer needed.
[[Page 23]]
(5) Retain pricing review files, containing documents related to
reviews of the contractor's price proposals, subject to certification of
cost or pricing data (see FAR 15.804-2), for six years. If it is
impossible to determine the final payment date in order to measure the
six year period, retain the files for nine years.
Subpart 204.9--Information Reporting to the Internal Revenue Service
Sec. 204.902 General.
(b) DoD uses the DD Form 350, Individual Contract Action Report,
(see 204.670) to meet these reporting requirements.
Subpart 204.70--Uniform Procurement Instrument Identification Numbers
Sec. 204.7000 Scope.
This subpart prescribes policies and procedures for assigning
numbers to all solicitations, contracts, and related instruments. This
subpart--
(a) Does not apply to solicitations or contracts issued by the
Defense Commercial Communications Office of the Defense Information
Systems Agency; and
(b) Is optional for solicitations and contracts that will be
completely administered by the purchasing office or the consignee,
except that--
(1) The procurement instrument identification (PII) number,
including supplemental modification numbers, shall not exceed 19
characters (excluding hyphens); and
(2) The number shall begin with the purchasing office identifier and
the fiscal year in accordance with 204.7003(a) (1) and (2) and appendix
G.
[56 FR 36289, July 31, 1991, as amended at 56 FR 67212, Dec. 30, 1991]
Sec. 204.7001 Policy.
(a) Use the uniform PII numbering system prescribed by this subpart
for the solicitation/contract instruments described in 204.7003 and
204.7004.
(b) Retain the basic PII number unchanged for the life of the
instrument.
Sec. 204.7002 Procedures.
(a) In assigning PII numbers--
(1) Use only the alpha-numeric characters, as prescribed in this
subpart; and
(2) Do not use the letters ``I'' or ``O,'' except as noted in
204.7003(a)(1)(i) (J) and (K).
(b) If department/agency procedures require other identification on
the solicitation, contract, or other related instrument forms, enter it
in such a location so as to separate it clearly from the PII number.
(c) Enter the basic PII number, including Federal supply contract
numbers and any supplementary numbers, in the spaces provided on the
solicitation, contract, or related instrument forms. Separate the major
elements by dashes, e.g., N00023-90-D-0009. If there is no space
provided on the form, enter the number in the upper right corner of the
form and identify what it is (e.g., Supplementary Number N00023-90-F-
0120).
Sec. 204.7003 Basic PII number.
(a) Elements of a number. The number consists of 13 alpha-numeric
characters grouped to convey certain information.
(1) Positions 1 through 6. The first of the six positions, in upper
case letters, identify the department/agency and office issuing the
instrument.
(i) Department/agency identification:
(A) Department of the Army................. DA
(B) Department of the Navy (except Marine N
Corps).
(C) Department of the Air Force............ F
(D) Defense Information Systems Agency..... DCA
(E) Defense Logistics Agency............... S
(F) Defense Special Weapons Agency......... DSWA
(G) Defense Mapping Agency................. DMA
(H) Miscellaneous Defense Activities....... MDA
(I) Marine Corps........................... M
(J) Ballistic Missile Defense Organization. HQ0006
(K) On Site Inspection Agency.............. OSIA
(L) Defense Commissary Agency.............. DECA
(M) United States Special Operations USZA
Command.
(ii) Issuing office identification. The remaining positions are the
alpha-numeric characters that identify the
[[Page 24]]
issuing office. These characters are in appendix G.
(iii) Use all six positions. If necessary, enter zeros between the
department/agency identifier and the issuing office identifier.
(2) Positions 7 through 8. The seventh and eighth positions are the
last two digits of the fiscal year in which the PII number was assigned.
(3) Position 9. Indicate the type of instrument by entering one of
the following upper case letters in position nine--
(i) Blanket purchase agreements--A
(ii) Invitations for bids--B
(iii) Contracts of all types except indefinite delivery contracts,
facilities contracts, sales contracts, and contracts placed with or
through other Government departments or agencies or against contracts
placed by such departments or agencies outside the DoD--C
(iv) Indefinite delivery contracts--D
(v) Facilities contracts--E
(vi) Contracting actions placed with or through other Government
departments or agencies or against contracts placed by such departments
or agencies outside the DoD (including actions with the National
Industries for the Blind (NIB), the National Industries for the Severely
Handicapped (NISH), and the Federal Prison Industries (UNICOR))--F
(vii) Basic ordering agreements--G
(viii) Agreements, including basic agreements and loan agreements,
but excluding basic purchasing agreements, basic ordering agreements,
and leases--H
(ix) Do not use--I
(x) Reserved--J
(xi) Short form research contract--K
(xii) Lease agreement--L
(xiii) Purchase orders--manual (assign W when numbering capacity of
M is exhausted during the fiscal year)--M
(xiv) Notice of intent to purchase--N
(xv) Do not use--O
(xvi) Purchase order--automated (assign V when numbering capacity of
P is exhausted during a fiscal year)--P
(xvii) Request for quotation--manual--Q
(xviii) Request for proposal--R
(xix) Sales contract--S
(xx) Request for quotation--automated (assign U when numbering
capacity of T is exhausted during a fiscal year)--T
(xxi) See T--U
(xxii) See P--V
(xxiii) See M--W
(xxiv) Reserved for departmental use--X
(xxv) Imprest fund--Y
(xxvi) Reserved for departmental use--Z
(4) Position 10 through 13. Enter the serial number of the
instrument in these positions. A separate series of serial numbers may
be used for any type of instrument listed in paragraph (a)(3) of this
section. Activities shall assign such series of PII numbers
sequentially. An activity may reserve blocks of numbers or alpha-numeric
numbers for use by its various components.
(b) Illustration of PII number. The following illustrates a properly
configured PII number--
[[Page 25]]
[GRAPHIC] [TIFF OMITTED] TC01FE91.052
[56 FR 36289, July 31, 1991, as amended at 56 FR 67212, Dec. 30, 1991;
59 FR 27668, May 27, 1994; 60 FR 61592, Nov. 30, 1995; 61 FR 50451,
Sept. 26, 1996]
Sec. 204.7004 Supplementary PII numbers.
(a) Uses of the supplementary number. Use supplementary numbers with
the basic PII number, to identify--
(1) Amendments to solicitations;
(2) Modifications to contracts and agreements, including provisioned
item orders; and
(3) Calls or orders under contracts, basic ordering agreements, or
blanket purchase agreements, issued by the contracting office or by a
DoD activity other than the contracting office, including DoD orders
against Federal supply schedules.
(b) Amendments to solicitations. Number amendments to solicitations
sequentially using a four position numeric serial number added to the
basic PII number and beginning with 0001, e.g., N00062-91-R-1234-0001.
(c) Modifications to contracts and agreements. (1) Number
modifications to contracts and agreements using a six position alpha-
numeric added to the basic PII number.
(2) Position 1. Identify the office issuing the modification--
(i) Contract administration office--A
(ii) Contracting office--P
(3) Positions 2 through 3. These are the first two digits in a
serial number. They may be either alpha or numeric. Use the letters K,
L, M, N, P, Q, S, T, U, V, W, X, Y, or Z only in the second position and
only in the following circumstances--
(i) Use K, L, M, N, P, and Q in the second position only if the
modification is issued by the Air Force and is a provisioned item order.
(ii) Use S, and only S, in the second position to identify
modifications issued to provide initial or amended shipping instructions
when--
(A) The contract has either FOB origin or destination delivery
terms; and
(B) The price changes.
(iii) Use T, U, V, W, X, or Y, and only those characters, in the
second position to identify modifications issued to provide initial or
amended shipping instructions when--
(A) The contract has FOB origin delivery terms; and
(B) The price does not change.
(iv) Only use Z in the second position to identify a modification
which definitizes a letter contract.
(4) Positions 4 through 6. These positions are always numeric. Use a
separate series of serial numbers for each type of modification listed
in paragraph (c)(3) of this section. Examples of proper numbering for
positions 2-6 (the first position will be either ``A'' or ``P'') are as
follows:
[[Page 26]]
------------------------------------------------------------------------
Provisioned items
order (reserved for Shipping
Normal modification exclusive use by instructions
the Air Force only)
------------------------------------------------------------------------
00001-99999.................... K0001-K9999 S0001-S9999
then......................... KA001-KZ999 SA001-SZ999
A0001-A9999.................... L0001-L9999 T0001-T9999
B0001-B9999.................... LA001-LZ999 TA001-TZ999
and so on to................. M0001-M9999 U0001-U9999
H0001-H9999.................... MA001-MZ999 UA001-UZ999
then......................... N0001-N9999 V0001-V9999
J0001-J9999.................... NA001-NZ999 VA001-VZ999
then......................... P0001-P9999 W0001-W9999
R0001-R9999.................... PA001-PZ999 WA001-WZ999
then......................... Q0001-Q9999 X0001-X9999
AA001-HZ999.................... QA001-QZ999 XA001-XZ999
then......................... Y0001-Y9999
JA001-JZ999.................... YA001-YZ999
RA001-RZ999....................
------------------------------------------------------------------------
(5) If the contract administration office is changing the contract
administration or disbursement office for the first time and is using
computer generated modifications to notify many offices, it uses the six
position supplementary number ARZ999. If either office has to be changed
again during the life of the contract, the supplementary number will be
ARZ998, and on down as needed.
(6) Each office authorized to issue modifications shall assign the
supplementary identification numbers in sequence. Do not assign the
numbers until it has been determined that a modification is to be
issued.
(d) Delivery orders under indefinite delivery contracts, orders
under basic ordering agreements, and calls under blanket purchase
agreements. (1) Calls or orders issued by the office issuing the
contract or agreement. Use a four position alpha-numeric call or order
serial number added to the basic PII number. These shall be identified
by using serial numbers beginning 0001 through 9999. When the numeric
identifiers run out, use alpha characters in the third and fourth
positions. Never use alpha characters in the first and second positions.
(2) Orders placed against another activity's contract or agreement.
(i) If the office placing the order or call is different from the
office identified in the basic PII number, assign a serial number to the
order or call. The first and second positions contain the call/order
code assigned to the ordering office by appendix G. Do not use the
letters A or P in the first position. The third and fourth positions are
a two position serial number assigned by the ordering office. The series
will begin with 01. When the numbers exceed 99, the office will assign a
uniform series of identifiers containing alpha and/or numeric
characters, e.g., Basic : N00383-91-D-0001 serial : TU01.
(ii) If an office is placing calls or orders with NIB, NISH, or
UNICOR, the office shall identify the instrument with a 13 position
supplementary PII number using an F in the 9th position. Modifications
to these calls or orders shall be numbered in accordance with paragraph
(c) of this section, e.g., Order : DLA100-91-F-0001 modification :
A00001.
(e) Modifications to calls or orders. Use a two position alpha-
numeric suffix, known as a call or order modification indicator, to
identify a modification to a call or order.
(1) Modifications to a call or order issued by a purchasing office
begin with 01, 02, and so on through 99, then B1 through B9, BA through
BZ, C1 through C9, and so on through ZZ.
(2) Modifications to a call or order issued by a contract
administration office begin with 1A, 1B, and so on through 9Z, followed
by A1, A2, and so on to A9, then AA, AB, and so on through AZ.
Subpart 204.71--Uniform Contract Line Item Numbering System
Sec. 204.7100 Scope.
This subpart prescribes policies and procedures for assigning
contract line item numbers.
Sec. 204.7101 Definitions.
Accounting classification reference number (ACRN) means a two
position alpha or alpha/numeric control code used as a method of
relating the accounting classification citation to detailed line item
information contained in the schedule.
Attachment means any documentation, appended to a contract or
incorporated by reference, which does not establish a requirement for
deliverables.
Definitized item, as used in this subpart, means an item for which a
firm
[[Page 27]]
price has been established in the basic contract or by modification.
Exhibit means a document, referred to in a contract, which is
attached and establishes requirements for deliverables. The term shall
not be used to refer to any other kind of attachment to a contract. The
DD Form 1423, Contract Data Requirements List, is always an exhibit,
rather than an attachment.
Nonseverable deliverable, as used in this subpart, means a
deliverable item that is a single end product or undertaking, entire in
nature, that cannot be feasibly subdivided into discrete elements or
phases without losing its identity.
Undefinitized item, as used in this subpart, means an item for which
a price has not been established in the basic contract or by
modification.
[56 FR 36289, July 31, 1991, as amended at 60 FR 34468, July 3, 1995]
Sec. 204.7102 Policy.
(a) The numbering procedures of this subpart shall apply to all--
(1) Solicitations;
(2) Solicitation line and subline item numbers, if practicable;
(3) Contracts as defined in FAR Subpart 2.1;
(4) Contract line and subline item numbers;
(5) Exhibits;
(6) Exhibit line and subline items; and
(7) Any other document expected to become part of the contract.
(b) The numbering procedures are mandatory for all contracts where
separate contract line item numbers are assigned, unless--
(1) There are no postaward contract administration functions that
the contracting officer will assign to an office listed in the DoD
Directory of Contract Administration Services Components;
(2) The contract is an indefinite delivery type for petroleum
products against which posts, camps, and stations issue delivery orders
for products to be consumed by them; or
(3) The contract is a communications service authorization issued by
the Defense Information Systems Agency's Office of Defense Commercial
Communications.
[56 FR 36289, July 31, 1991, as amended at 56 FR 67212, Dec. 30, 1991;
60 FR 34468, July 3, 1995]
204.7103 Contract line items.
Sec. 204.7103-1 Criteria for establishing.
Contracts shall identify the items or services to be acquired as
separate contract line items unless it is not feasible to do so.
(a) Contract line items shall have all four of the following
characteristics; however, there are exceptions within the
characteristics, which may make establishing a separate contract line
item appropriate even though one of the characteristics appears to be
missing--
(1) Single unit price. The item shall have a single unit price or a
single total price, except--
(i) If the item is not separately priced (NSP) but the price is
included in the unit price of another contract line item, enter NSP
instead of the unit price;
(ii) When there are associated subline items, established for other
than informational reasons, and those subline items are priced in
accordance with 204.7104;
(iii) When the items or services are being acquired on a cost-
reimbursement contract;
(iv) When the contract is for maintenance and repair services (e.g.,
a labor hour contract) and firm prices have been established for
elements of the total price of an item but the actual number and
quantity of the elements are not known until performance. The
contracting officer may structure these contracts to reflect a firm or
estimated total amount for each line item;
(v) When the contract line item is established to refer to an
exhibit or an attachment (if management needs dictate that a unit price
be entered, the price shall be set forth in the item description block
and enclosed in parentheses); or
(vi) When the contract is an indefinite delivery type contract and
provides that the price of an item shall be determined at the time a
delivery
[[Page 28]]
order is placed and the price is influenced by such factors as the
quantity ordered (e.g., 10-99 @ $1.00, 100-249 @ $.98, 250+ @ $.95), the
destination, the FOB point, or the type of packaging required.
(2) Separately identifiable. A contract line item must be identified
separately from any other items or services on the contract.
(i) Supplies are separately identifiable if they have no more than
one--
(A) National stock number (NSN);
(B) Item description; or
(C) Manufacturer's part number.
(ii) Services are separately identifiable if they have no more than
one--
(A) Scope of work; or
(B) Description of services.
(iii) This requirement does not apply if there are associated
subline items, established for other than informational reasons, and
those subline items include the actual detailed identification in
accordance with 204.7104. Where this exception applies, use a general
narrative description instead of the contract item description.
(3) Separate delivery schedule. Each contract line item or service
shall have its own delivery schedule, period of performance, or
completion date expressly stated (``as required'' constitutes an
expressly stated delivery term).
(i) The fact that there is more than one delivery date, destination,
performance date, or performance point may be a determining factor in
the decision as to whether to establish more than one contract line
item.
(ii) If a contract line item has more than one destination or
delivery date, the contracting officer may create individual contract
line items for the different destinations or delivery dates, or may
specify the different delivery dates for the units by destination in the
delivery schedule.
(4) Single accounting classification citation. (i) Each contract
line item shall reference a single accounting classification citation
except as provided in paragraph (a)(4)(ii) of this subsection.
(ii) The use of multiple accounting classification citations for a
contract line item is authorized in the following situations:
(A) A single, nonseverable deliverable to be paid for with R&D or
other funds properly incrementally obligated over several fiscal years
in accordance with DoD policy;
(B) A single, nonseverable deliverable to be paid for with different
authorizations or appropriations, such as in the acquisition of a
satellite or the modification of production tooling used to produce
items being acquired by several activities; or
(C) A modification to an existing contract line item for a
nonseverable deliverable that results in the delivery of a modified
item(s) where the item(s) and modification are to be paid for with
different accounting classification citations.
(iii) When the use of multiple accounting classification citations
is authorized for a single contract line item, establish informational
subline items for each accounting classification citation in accordance
with 204.7104-1(a).
(b) Exhibits may be used as an alternative to putting a long list of
contract line items in the schedule. If exhibits are used, create a
contract line item citing the exhibit's identifier. See 204.7105(a).
(c) If the contract involves a test model or a first article which
must be approved, establish a separate contract line item or subline
item for each item of supply or service which must be approved. If the
test model or first article consists of a lot composed of a mixture of
items, a single line item or subline item may be used for the lot.
(d) If a supply or service involves ancillary functions, like
packaging and handling, transportation, payment of state or local taxes,
or use of reusable containers, and these functions are normally
performed by the contractor and the contractor is normally entitled to
reimbursement for performing these functions, do not establish a
separate contract line item solely to account for these functions.
However, do identify the functions in the contract schedule. If the
offeror separately prices these functions, contracting officers may
establish separate contract line items for the functions; however, the
separate
[[Page 29]]
line items must conform to the requirements of paragraph (a) of this
subsection.
[56 FR 36289, July 31, 1991, as amended at 60 FR 34468, July 3, 1995; 60
FR 43191, Aug. 18, 1995]
Sec. 204.7103-2 Numbering procedures.
(a) Contract line items shall consist of four numeric digits 0001
through 9999. Do not use numbers beyond 9999. Within a given contract,
the item numbers shall be sequential but need not be consecutive.
(b) The contract line item number shall be the same as the
solicitation line item number unless there is a valid reason for using
different numbers.
(c) Once a contract line item number has been assigned, it shall not
be assigned to another, different, contract line item in the same
contract.
204.7104 Contract subline items.
Sec. 204.7104-1 Criteria for establishing.
Contract subline items provide flexibility to further identify
elements within a contract line item for tracking performance or
simplifying administration. There are only two kinds of subline items:
those which are informational in nature and those which consist of more
than one item that requires separate identification.
(a) Informational subline items. (1) This type of subline item
identifies information that relates directly to the contract line item
and is an integral part of it (e.g., parts of an assembly or parts of a
kit). These subline items shall not be scheduled separately for
delivery, identified separately for shipment or performance, or priced
separately for payment purposes.
(2) The informational subline item may include quantities, prices,
or amounts, if necessary to satisfy management requirements. However,
these elements shall be included within the item description in the
supplies/services column and enclosed in parentheses to prevent
confusing them with quantities, prices, or amounts that have contractual
significance. Do not enter these elements in the quantity and price
columns.
(3) Informational subline items shall be used to identify each
accounting classification citation assigned to a single contract line
item number when use of multiple citations is authorized (see 204.7103-
1(a)(4)(ii)).
(b) Separately identified subline items. (1) Subline items will be
used instead of contract line items to facilitate payment, delivery
tracking, contract funds accounting, or other management purposes. Such
subline items shall be used when items bought under one contract line
item number--
(i) Are to be paid for from more than one accounting classification.
A subline item shall be established for the quantity associated with the
single accounting classification citation. Establish a line item rather
than a subline item if it is likely that a subline item may be assigned
additional accounting classification citations at a later date. Identify
the funding as described in 204.7104-1(a)(3);
(ii) Are to be packaged in different sizes, each represented by its
own NSN;
(iii) Have collateral costs, such as packaging costs, but those
costs are not a part of the unit price of the contract line item;
(iv) Have different delivery dates or destinations or requisitions,
or a combination of the three; or
(v) Identify parts of an assembly or kit which--
(A) Have to be separately identified at the time of shipment or
performance; and
(B) Are separately priced.
(2) Each separately identified contract subline item shall have its
own--
(i) Delivery schedule, period of performance, or completion date;
(ii) Unit price or single total price or amount (not separately
priced (NSP) is acceptable as an entry for price or amount if the price
is included in another subline item or a different contract line item).
This requirement does not apply--
(A) If the subline item was created to refer to an exhibit or an
attachment. If management needs dictate that a unit price be entered,
the price shall be set forth in the item description block of the
schedule and enclosed in parentheses; or
[[Page 30]]
(B) In the case of indefinite delivery contracts described at
204.7103-1(a)(1)(vi).
(iii) Identification (e.g., NSN, item description, manufacturer's
part number, scope of work, description of services).
(3) Unit prices and extended amounts.
(i) The unit price and total amount for all subline items may be
entered at the contract line item number level if the unit price for the
subline items is identical. If there is any variation, the subline item
unit prices shall be entered at the subline item level only.
(ii) The unit price and extended amounts may be entered at the
subline items level.
(iii) The two methods in paragraphs (b)(3) (i) and (ii) of this
subsection shall not be combined in a contract line item.
(iv) When the price for items not separately priced is included in
the price of another subline item or contract line item, it may be
necessary to withhold payment on the priced subline item until all the
related subline items that are not separately priced have been
delivered. In those cases, use the clause at 252.204-7002, Payment for
Subline Items Not Separately Priced.
[56 FR 36289, July 31, 1991, as amended at 60 FR 34468, July 3, 1995]
Sec. 204.7104-2 Numbering procedures.
(a) Number subline items by adding either two numeric characters or
two alpha characters to the basic contract line item number.
(1) Information subline item numbers. Use numeric characters only
for information subline items, running 01 through 99. Do not use spaces
or special characters to separate the subline item number from the
contract line item number that is its root. For example, if the contract
line item number is 0001, the first three subline items would be 000101,
000102, and 000103. Do not use a designation more than once within a
contract line item.
(2) Separately identified subline items. Use alpha characters only
for separately identified subline items, running AA through ZZ. Do not
use spaces or special characters to separate the subline item number
from the contract line item number that is its root. For example, if the
contract line item number is 0001, the first three subline items would
be 0001AA, 0001AB, and 0001AC.
(i) Do not use the letters I or O as alpha characters.
(ii) Use all 24 available alpha characters in the second position
before selecting a different alpha character for the first position. For
example, AA, AB, AC, through AZ before beginning BA, BB, and BC.
(b) Within a given contract line item, the subline item numbers
shall be sequential but need not be consecutive.
(c) Exhibits may be used as an alternative to setting forth in the
schedule a long list of contract subline items. If exhibits are used,
create a contract subline item citing the exhibit's identifier. See
204.7105.
(d) If a contract line item involves ancillary functions, like
packaging and handling, transportation, payment of state or local taxes,
or use of reusable containers, and these functions are normally
performed by the contractor and the contractor is normally entitled to
reimbursement for performing these functions, do not establish a
separate subline item solely to account for these functions. However, do
identify the functions in the contract schedule. If offeror separately
prices these functions, then contracting officers may establish separate
subline items for the functions; however, the separate subline items
must conform to the requirements of 204.7104-1.
(e) The following examples illustrate subline items numbering--
(1) Subline items structured to identify destinations for identical
items, identically priced (delivery schedule shall be established for
each subline item, not the contract line item).
----------------------------------------------------------------------------------------------------------------
Item No. Supplies/service Quantity Unit Unit price Amount
----------------------------------------------------------------------------------------------------------------
0001 NSN 1615-00-591-6620 Shim, ........... ........... ...........
Aluminum Alloy, Apbl,
Rotor, Helicopter PRON A1-
9-63821-M1-M1 ACRN:AA.
0001AA A3168R-9030-4025 A2537M 10 EA $100.00 $1,000.00
IPD: 2 RDD: 334 PROJ: 501.
[[Page 31]]
0001AB A3168R-9030-4026 A51AXBM 10 EA $100.00 $1,000.00
IPD: 2 RDD: 325 PROJ: 502.
0001AC A3168R-9030-4027 A67KBCM 15 EA $100.00 $1,500.00
IPD: 2 RDD: 349 PROJ: 503.
----------------------------------------------------------------------------------------------------------------
(2) Subline items structured to identify destinations for identical
items, not identically priced (delivery schedule shall be established
for each subline item, not the contract line item).
----------------------------------------------------------------------------------------------------------------
Item No. Supplies/service Quantity Unit Unit price Amount
----------------------------------------------------------------------------------------------------------------
0001 NSN 1615-00-591-6620 Shim, ........... ........... ...........
Aluminum Alloy, Apbl,
Rotor, Helicopter PRON A1-
9-63821-M1-M1 ACRN:AA.
0001AA A3168R-9030-4025 A2537M 10 EA $100.00 $1,000.00
IPD: 2 RDD: 334 PROJ: 501.
0001AB A3168R-9030-4026 A51AXBM 20 EA $99.00 $1,980.00
IPD: 2 RDD: 325 PROJ: 502.
0001AC A3168R-9030-4027 A67KBCM 30 EA $98.00 $2,940.09
IPD: 2 RDD: 349 PROJ: 503.
----------------------------------------------------------------------------------------------------------------
Note: Difference in prices for identical items is due to separate destinations for FOB destination delivery.
(3) Subline items structured to identify different sizes of an item
that are identically priced (delivery schedule shall be established for
each subline item, not the contract line item).
----------------------------------------------------------------------------------------------------------------
Item No. Supplies/service Quantity Unit Unit price Amount
----------------------------------------------------------------------------------------------------------------
0013 Boots Insulated, Cold ........... PR $38.35 $13,422.50
Weather White, Type II,
Class 1.
0013AA 8430-00-655-5541 Size 5N... 50 ........... ...........
0013AB 8430-00-655-5544 Size 8N... 70 ........... ...........
0013AC 8430-00-655-5551 Size 9N... 30 ........... ...........
0013AD 8430-00-655-5535 Size 9R... 200 ........... ...........
----------------------------------------------------------------------------------------------------------------
Note: Unit price and total amount shown at line item level rather than at subline item level.
(4) Subline items structured to identify different sizes of an item
that are not identically priced (delivery schedule shall be established
for each subline item, not the contract line item).
----------------------------------------------------------------------------------------------------------------
Item No. Supplies/service Quantity Unit Unit price Amount
----------------------------------------------------------------------------------------------------------------
0002 Body Armor Ground Troops ........... ........... ...........
Variable Type Small Arms,
Fragmentation Protective
Nylon Felt Vest, Front and
Back Plates, Ceramic
Plate, Type I.
0002AA First Article.............. 1 LO NSP ...........
0002AB 8470-00-141-0935, Medium 1936 SE $331.77 $642,306.72
Regular.
0002AC 8470-00-141-0936, Large 625 SE 355.77 222,356.25
Regular.
0002AD 8470-00-141-0937, Medium 1237 SE 346.77 428,954.49
Long.
0002AE 8470-00-141-0938, Large 804 SE 365.77 294,079.08
Long.
----------------------------------------------------------------------------------------------------------------
(5) Subline items structured to provide the capability for relating
subordinate separately priced packaging costs to the overall contract
line item. (Separate delivery schedules shall be established for the
subline item identifying the contractor's product and for the subline
item identifying packaging. No schedule will be established for the
contract line item.)
----------------------------------------------------------------------------------------------------------------
Item No. Supplies/service Quantity Unit Unit price Amount
----------------------------------------------------------------------------------------------------------------
0001 6105-00-635-6568 50380
Ref No 63504-WZ Armature
[[Page 32]]
0001AA 6105-00-635-6568 50380 2 Ea............. $2,895.87 $5,791.74
Ref No 63504-WZ Armature
Motor ACRN:AA
0001AB Packaging ACRN:AA....... 2 Ea............. $289.58 $579.16
----------------------------------------------------------------------------------------------------------------
(6) Subline items structured to identify different accounting
classifications for identical items (delivery schedule shall be
established for each subline item, not the contract line item).
AJ: 17X150518350315069100000192B000000000000000000
AK: 17X150518370317569100000192B000000000000000000
AL: 17X150519350314369100000192B000000000000000000
----------------------------------------------------------------------------------------------------------------
Item no. Supplies/service Quantity Unit Unit price Amount
----------------------------------------------------------------------------------------------------------------
0002 Pulse Decoder, KY-312/A5Q- ........... EA $3,037.40
19.
0002AA Pulse Decoder, KY-312/A5Q- 2 ........... 6,074.80
19 ACRN: AJ.
0002AB Pulse Decoder, K1Y-312/A5Q- 6 ........... 18,224.40
19 ACRN: AK.
0002AC Pulse Decoder, KY-312/A5Q- 2 ........... $6,074.80
19 ACRN: AL.
----------------------------------------------------------------------------------------------------------------
Note: Unit price may be shown at line item level and total amounts shown at subline item level.
(7) Informational subline items established to identify multiple
accounting classification citations assigned to a single contract line
item.
----------------------------------------------------------------------------------------------------------------
Item No. Supplies/service Quantity Unit Unit price Amount
----------------------------------------------------------------------------------------------------------------
0001 Air Vehicle................ 1 Ea $6,700,000 $6,700,000
000101 ACRN:AA $3,300,000
000102 ACRN:AB $2,000,000
000103 ACRN:AC $1,400,000
----------------------------------------------------------------------------------------------------------------
(8) Subline items structured to identify parts of an assembly
(delivery schedule and price shall be established for each identified
part at the subline item level, not for the assembly at the contract
line item level).
----------------------------------------------------------------------------------------------------------------
Item no. Supplies/service Quantity Unit Unit price Amount
----------------------------------------------------------------------------------------------------------------
0003 Automatic Degausing System ........... ........... ...........
Consisting of: (2 ea @
$52,061; $104,122 total).
0003AA Switchboard................ 2 EA $52,061.00 $104,122.00
0003AB Remote Control Panel....... 2 EA NSP ...........
0003AC Power Supply (M Coil) SSM 2 EA NSP ...........
Type 145 Amps, 220 V DC).
0003AF Power Supply (A Coil) SSM 2 EA NSP ...........
Type (118 Amps, 220 V DC).
----------------------------------------------------------------------------------------------------------------
(9) Subline items structured to identify parts of a kit (delivery
schedule and price shall be established for each identified part at the
subline item level, not for the kit at the contract line item level).
----------------------------------------------------------------------------------------------------------------
Item no. Supplies/service Quantity Unit Unit price Amount
----------------------------------------------------------------------------------------------------------------
0031 Conversion Kit to Convert ........... ........... ...........
Torpedo MK 45 Mod 0 to
Torpedo MK 45 Mod 1, (50
Kt @ $10,868.52; $543,426
total).
0031AA Integrator Assy LD 620106.. 50 EA $10,868.52 $543,426.00
0031AB Pulse Generator Assy LD 50 EA NSP ...........
587569.
0031AC Drive Shaft Assy LD 587559. 50 EA NSP ...........
0031BF Actual Panel Assy LD 542924 50 EA NSP ...........
----------------------------------------------------------------------------------------------------------------
Note: In this example, the prices of subline items 0031AB through 0031BF are included in the Integrator
Assembly.
[[Page 33]]
[56 FR 36289, July 31, 1991, as amended at 60 FR 34468, July 3, 1995]
Sec. 204.7105 Contract exhibits and attachments.
(a) Use of exhibits. (1) Exhibits may be used instead of putting a
long list of contract line items or subline items in the contract
schedule. Exhibits are particularly useful in buying spare parts.
(2) When using exhibits, establish a contract line or subline item
and refer to the exhibit.
(3) Identify exhibits individually.
(4) Each exhibit shall apply to only one contract line item or
subline item, except--
(i) One exhibit may apply to one or more option line item(s) when
the data required under the exhibits is identical in all respects except
the period during which the option is to be exercised; and
(ii) An exhibit may apply to more than one contract line item if the
exhibit is not separately priced and the exhibit deliverable is
identical for all applicable contract line items.
(5) More than one exhibit may apply to a single contract line item.
(6) Data items on a DD Form 1423, Contract Data Requirements List,
may be either separately priced or not separately priced.
(i) Separately priced. When data are separately priced, enter the
price in only one place in the contract: in either Section B of the
contract schedule or on the DD Form 1423. Whichever place, display the
price there consistently.
(A) Section B. If the prices are entered in section B of the
schedule, detach Blocks 17 and 18 of the DD Form 1423 and file elsewhere
in the contract file. If the prices are entered on the DD Form 1423, do
not detach Blocks 17 and 18 of the DD Form 1423.
(B) DD Form 1423. If the prices are entered on the DD Form 1423, the
price of all separately priced deliverable data items attributable to a
line item shall be totalled and included, for information purposes, in
parentheses, below the supplies services for that line item, in section
B of the schedule.
(ii) NSP. Include prices in a priced contract line item or subline
item. Detach Blocks 17 and 18 of the DD Form 1423 and retain them
elsewhere as required.
(7) The contracting officer may append attachments to exhibits, as
long as the attachment does not identify a deliverable requirement which
has not been established by a contract or exhibit line or subline item.
(b) Numbering exhibits and attachments. (1) Use alpha characters to
identify exhibits. The alpha characters shall be either single or double
capital letters. Do not use the letters I or O.
(2) Exhibit identifiers need not be either consecutive or
sequential.
(3) Once an identifier has been assigned to an exhibit, do not use
it on another exhibit in the same contract.
(4) The identifier shall always appear in the first or first and
second positions of all applicable exhibit line item numbers.
(5) If the exhibit has more than one page, cite the procurement
instrument identification number, exhibit identifier, and applicable
contract line or subline item number on each page.
(6) Use numbers to identify attachments.
(c) Numbering exhibit line items and subline items--(1) Criteria for
establishing. The criteria for establishing exhibit line items and
subline items is the same as those for establishing contract line items
and subline items (see 204.7103 and 204.7104, respectively).
(2) Procedures for numbering. (i) Number items in an exhibit in a
manner similar to contract line items and subline items.
(ii) Number line items using a four position number.
(A) The first position or the first and second position contain the
exhibit identifier.
(B) The third and fourth positions contain the alpha or numeric
character serial numbers assigned to the line item.
(iii) Assign alpha or numeric characters to the line item on the
basis of the same criteria outlined in contract subline items at
204.7104.
(iv) Exhibit line item numbers shall be sequential within the
exhibit.
(3) Examples--(i) Two position serial number for double letter
exhibit identifier.
[[Page 34]]
------------------------------------------------------------------------
Cumulative No. of line items Serial number sequence
------------------------------------------------------------------------
1-33................................ 01 thru 09, then OA thru OZ, then
34-67............................... 10 thru 19, then 1A thru 1Z, then
68-101.............................. 20 thru 29, then 2A thru 2Z, then
102-135............................. 30 thru 39, then 3A thru 3Z, then
136-169............................. 40 thru 49, then 4A thru 4Z, then
170-203............................. 50 thru 59, then 5A thru 5Z, then
204-237............................. 60 thru 69, then 6A thru 6Z, then
238-271............................. 70 thru 79, then 7A thru 7Z, then
272-305............................. 80 thru 89, then 8A thru 8Z, then
306-339............................. 90 thru 99, then 9A thru 9Z, then
340-373............................. A0 thru A9, then AA thru AZ, then
374-407............................. B0 thru B9, then BA thru BZ, then
408-441............................. C0 thru C9, then CA thru CZ, then
442-475............................. D0 thru D9, then DA thru DZ, then
476-509............................. E0 thru E9, then EA thru EZ, then
510-543............................. F0 thru F9, then FA thru FZ, then
544-577............................. G0 thru G9, then GA thru GZ, then
578-611............................. H0 thru H9, then HA thru HZ, then
612-645............................. J0 thru J9, then JA thru JZ, then
646-679............................. K0 thru K9, then KA thru KZ, then
680-713............................. L0 thru L9, then LA thru LZ, then
714-747............................. M0 thru M9, then MA thru MZ, then
748-781............................. N0 thru N9, then NA thru NZ, then
782-815............................. P0 thru P9, then PA thru PZ, then
816-849............................. Q0 thru Q9, then QA thru QZ, then
850-883............................. R0 thru R9, then RA thru RZ, then
884-917............................. S0 thru S9, then SA thru SZ, then
918-951............................. T0 thru T9, then TA thru TZ, then
952-985............................. U0 thru U9, then UA thru UZ, then
986-1019............................ V0 thru V9, then VA thru VZ, then
1020-1053........................... W0 thru W9, then WA thru WZ, then
1054-1087........................... X0 thru X9, then XA thru XZ, then
1088-1121........................... Y0 thru Y9, then YA thru YZ, then
1122-1155........................... Z0 thru Z9, then ZA thru ZZ
------------------------------------------------------------------------
(ii) Three position numbers.
------------------------------------------------------------------------
Cumulative No. of line items Serial number sequence
------------------------------------------------------------------------
(ii) Three position numbers.
1-33................................ 001 thru 009, then 00A thru 00Z,
then
34-67............................... 010 thru 019, then 01A thru 101Z,
then
68-101.............................. 020 thru 029, then 02A thru 02Z,
then
102-135............................. 030 thru 039, then 03A thru 03Z
and so
136-305............................. on to
306-339............................. 090 thru 099, then 09A thru 09Z,
then
340-373............................. 0A0 thru 0A9, then 0AA thru 0AZ,
then
374-407............................. 0B0 thru 0B9, then 0BB thru 0BZ,
then
408-441............................. 0C0 thru 0C9, then 0CA thru 0CZ,
and
442-1121............................ so on to
1122-1155........................... 0Z0 thru 0Z9, then 0ZA thru 0ZZ,
then
1156-1189........................... 100 thru 109, then 10A thru 10Z,
then
1190-1223........................... 110 thru 119, then 11A thru 11Z,
then
1224-1257........................... 120 thru 129, then 12A thru 12Z,
and
1258-1461........................... so on to
1462-1495........................... 190 thru 199, then 19A thru 19Z,
then
1496-1529........................... 1A0 thru 1A9, then 1AA thru 1AZ,
then
1530-1563........................... 1B0 thru 1B9, then 1BA thru 1BZ,
and
1564-2277........................... so on to
2278-2311........................... 1Z0 thru 1Z9, then 1ZA thru 1ZB,
then
2312-2345........................... 200 thru 109, then 10A thru 10Z,
then
2346-2379........................... 210 thru 219, then 21A thru 21Z,
then
2380-2413........................... 220 thru 229, then 22A thru 22Z,
and
2414-2617........................... so on to
2618-2651........................... 290 thru 299, then 29A thru 29Z,
then
2652-2685........................... 2A0 thru 2A9, then 2AA thru 2AZ,
then
2686-2719........................... 2B0 thru 2B9, then 2BA thru 2BZ,
and
2720-3433........................... so on to
3434-3467........................... 2Z0 thru 2Z9, then 2ZA thru 2ZZ,
then
3468-3501........................... 300 thru 309, then 30Z thru 30Z,
and
3502-10403.......................... so on to
10404-10437......................... 900 thru 909, then 90A thru 90Z,
then
10438-10471......................... 910 thru 919, then 91A thru 91Z,
and
10472-10709......................... so on to
10710-10743......................... 990 thru 999, then 99A thru 99Z,
then
10744-10777......................... 9A0 thru 9A9, then 9AA thru 9AZ,
then
10778-10811......................... 9B0 thru 9B9, then 9BA thru 9BZ,
and
10812-11525......................... so on to
11526-11559......................... 9Z0 thru 9Z9, then 9ZA thru 9ZZ
------------------------------------------------------------------------
Sec. 204.7106 Contract modifications.
(a) If new items are added, assign new contract line or subline item
numbers or exhibit line item numbers, in accordance with the procedures
established at 204.7103, 204.7104, and 204.7105.
(b) Modifications to existing contract line items or exhibit line
items. (1) If the modification relates to existing contract line items
or exhibit line items, the modification shall refer to those item
numbers.
(2) If the contracting officer decides to assign new identifications
to existing contract or exhibit line items, the following rules apply--
(i) Definitized and undefinitized items. (A) The original line item
or subline item number may be used if the modification applies to the
total quantity of the original line item or subline.
(B) The original line item or subline item number may be used if the
modification makes only minor changes in the specifications of some of
the items ordered on the original line item or subline item and the
resulting changes in unit price can be averaged to provide a new single
unit price for the total quantity. If the changes in the specifications
make the item significantly distinguishable from the original item or
the resulting changes in unit price cannot be averaged, create a new
line item.
(C) If the modification affects only a partial quantity of an
existing contract or exhibit line item or subline item and the change
does not involve either the delivery date or the ship-to/mark-for data,
the original contract or exhibit line item or subline item number shall
remain with the unchanged quantity. Assign the changed quantity the next
available number.
(ii) Undefinitized items. In addition to the rules in paragraph
(b)(2)(i), the following additional rules apply to undefinitized items--
[[Page 35]]
(A) If the modification is undefinitized and increases the quantity
of an existing definitized item, assign the undefinitized quantity the
next available number.
(B) If the modification increases the quantity of an existing
undefinitized item, the original contract or exhibit line item or
subline item may be used if the unit price for the new quantity is
expected to be the same as the price for the original quantity. If the
unit prices of the two quantities will be different, assign the new
quantity the next available number.
(C) If the modification both affects only a partial quantity of the
existing contract or exhibit line or subline item and definitizes the
price for the affected portion, the definitized portion shall retain the
original item number. If there is any undefinitized portion of the item,
assign it the next available number. However, if the modification
definitizes the price for the whole quantity of the line item, and price
impact of the changed work can be apportioned equally over the whole to
arrive at a new unit price, the quantity with the changes can be added
into the quantity of the existing item.
(D) If the modification affects only a partial quantity of an
existing contract or exhibit line or subline item but does not change
the delivery schedule or definitize price, the unchanged portion shall
retain the original contract or exhibit line or subline item number.
Assign the changed portion the next available number.
Sec. 204.7107 Contract accounting classification reference number (ACRN).
(a) When a contract contains more than one accounting classification
citation, contracting offices shall use ACRNs. Assigning the ACRNs is
the responsibility of the contracting office issuing the contract, basic
ordering agreement, or blanket purchase agreement. This authority shall
not be delegated. If more than one office will use the contract (e.g.,
ordering officers, other contracting officers), the contract must
contain instructions for assigning ACRNs.
(b) ACRNs are used to process certain contract data through the
Military Standard Contract Administration Procedures (MILSCAP) system.
The MILSCAP system uses the ACRN to relate certain contract
administration records to the accounting classification citation used to
obligate funds on the contract. Among these records are the accounting
classification trailer record, the supplies schedules data record, and
the services line item data record. ACRNs are also used to associate the
various record formats of the contract payment notice as described in
chapter 9 of the MILSCAP Manual, DoD 4000.25-5-M.
(c) Procedures for establishing ACRNs. ACRNs consist of a two
position alpha or alpha/numeric code assigned to each discrete
accounting classification citation within each contract. ACRNs shall be
established in accordance with the following guidelines:
(1) Do not use the letters I and O.
(2) In no case shall an ACRN apply to more than one accounting
classification citation, nor shall more than one ACRN be assigned to one
accounting classification citation.
(d) Using the ACRN in the contract. (1) Show the ACRN as a detached
prefix to the accounting classification citation in the accounting and
appropriation data block or, if there are too many accounting
classification citations to fit reasonably in that block, in section G
(Contract Administration Data).
(2) ACRNs need not prefix accounting classification citations if the
accounting classification citations are present in the contract only for
the transportation officer to cite to Government bills of lading.
(3) If the contracting officer is making a modification to a
contract and using the same accounting classification citations, which
have had ACRNs assigned to them, the modification need cite only the
ACRNs in the accounting and appropriations data block or on the
continuation sheets.
(e) Showing the ACRN in the contract. If there is more than one ACRN
in a contract, all the ACRNs will appear in several places in the
schedule (e.g., ACRN:AA).
(1) Ship-to/mark-for block. Show the ACRN beside the identity code
of each activity in the ship-to/mark-for block unless only one
accounting classification citation applies to a line item or
[[Page 36]]
subline item. Only one ACRN may be assigned to the same ship-to/mark-for
within the same contract line or subline item number unless multiple
accounting classification citations apply to a single nonseverable
deliverable unit such that the item cannot be related to an individual
accounting classification citation.
(2) Supplies/services column. (i) If only one accounting
classification citation applies to a line item or a subline item, the
ACRN may be shown in the supplies/services column near the item
description.
(ii) If more than one accounting classification citation applies to
a single contract line item, identify each assigned ACRN and the amount
of associated funds using informational subline items (see 204.7104-
1(a)).
(3) Payment instructions. (i) When a contract line item is funded by
multiple accounting classification citations, the contracting officer
shall provide adequate instructions in section G (Contract
Administration Data), under the heading ``Payment Instructions for
Multiple Accounting Classification Citations,'' to permit the paying
office to charge the accounting classification citations assigned to
that contract line item (see 204.7104-1(a)) in a manner that reflects
the performance of work on the contract. If additional accounting
classification citations are subsequently added, the payment
instructions must be modified to include the additional accounting
classification citations.
(ii) Payment instructions shall provide a methodology for the paying
office to assign payments to the appropriate accounting classification
citation(s), based on anticipated contract work performance. The method
established should be consistent with the reasons for the establishment
of the line items. The payment method may be based upon a unique
distribution profile devised to reflect how the funds represented by
each of the accounting classification citations support contract
performance. Payment methods that direct that payments be made from the
earliest available fiscal year funding sources, or that provide for
proration across accounting classification citations assigned to the
line item, or a combination thereof, may be used if that methodology
reasonably reflects how each of the accounting classification citations
supports contract performance.
[60 FR 34469, July 3, 1995; 60 FR 43191, Aug. 18, 1995]
Subpart 204.72--Contractor Identification
Sec. 204.7200 Scope of subpart.
This subpart prescribes uniform policies and procedures for
identification of commercial and Government entities when it is
necessary to:
(a) Exchange data with another contracting activity, including
contract administration activities and contract payment activities, or
to comply with the reporting requirements of subpart 204.6; or
(b) Identify contractors for the purposes of developing computerized
acquisition systems or solicitation mailing lists.
Sec. 204.7201 Definitions.
(a) Commercial and Government entity (CAGE) code means--
(1) A code assigned by the Defense Logistics Services Center (DLSC)
to identify a commercial or Government entity; or
(2) A code assigned by a member of the North Atlantic Treaty
Organization (NATO) and maintained by the Defense Logistics Services
Center.
(b) Contractor identification code means any code required by the
contracting office for the purpose of identifying the offeror. CAGE code
and contractor identification numbers are two examples of contractor
identification codes.
[56 FR 36289, July 31, 1991, as amended at 61 FR 51031, Sept. 30, 1996]
Sec. 204.7202 General.
Various coding systems are in use to identify commercial and
government entities. Codes are requested by contracting and contract
administration offices for various reasons. This guidance is designed to
improve the accuracy of the initial code assignment and to help ensure
that the data are maintained accurately and are up-to-date.
[[Page 37]]
Sec. 204.7202-1 CAGE codes.
(a) CAGE codes are assigned or maintained by the Defense Logistics
Services Center (DLSC) to identify commercial and Government activities.
Their use is prescribed by 253.204-70(b)(5)(ii)(C) and DoD 4000.25-5-M,
Military Standard Contract Administration Procedures (MILSCAP).
(b) CAGE codes have also been known in the past as federal supply
codes for manufacturers (FSCM) and federal supply codes for
nonmanufacturers (FSCNM).
(c) If the CAGE code is not already available in the contracting
office, and the apparent awardee does not respond to the provision at
252.204-7001, Commercial and Government Entity (CAGE) Code Reporting,
use the following procedures in the order listed--
(1) Use the bimonthly H-8 microfiche or CD ROM publication issued by
DLSC. (Their address is: DLSC-RP, Federal Center, 74 N. Washington,
Battle Creek, MI 49017-3084. Their telephone numbers are: DSN 932-4725,
FTS 552-4725, or commercial (616) 961-4725.);
(2) Use the on-line access to the CAGE file through the Defense
Logistics Information System;
(3) Use the on-line access to the Defense Logistics Agency CAGE file
through the DLA Network or dial-up capability; or
(4) Ask DLSC to assign a CAGE code. Submit a DD Form 2051, Request
for Assignment of a CAGE Code, (or electronic equivalent) to the address
in paragraph (c)(1) of this subsection, ATTN: DLSC-SBB. The contracting
activity completes Section A of the DD Form 2051, Request for Assignment
of a Commercial and Government Entity (CAGE) Code, and the contractor
completes section B. The contracting activity must verify section B
before the form is submitted.
(5) Direct questions on obtaining computer tapes, electronic
updates, or code assignments to DLSC (DLSC-SBB) at DSN 932-4358, FTS
552-4358, or commercial (616) 961-4358.
[56 FR 36289, July 31, 1991, as amended at 57 FR 53598, Nov. 12, 1992;
61 FR 51031, Sept. 30, 1996]
Sec. 204.7202-2 Contractor identification number.
Use of the contractor identification number for contract data
reporting is prescribed by 253.204-70(b)(5)(ii)(A). A Data Universal
Numbering System (DUNS) number, which is a nine-digit number assigned by
Dun and Bradstreet Information Services to an establishment, is the
contractor identification number for Federal contractors. When the
contractor identification number is not already available to the
contracting activity, use the following procedures in the order listed:
(a) Contact the offeror and obtain the DUNS number.
(b)(1) Dun & Bradstreet Information Services for a DUNS number by--
(i) Telephone (610) 882-7741.
(ii) Facsimile (610) 882-7140.
(iii) Writing to FPDC Department, Dun & Bradstreet Information
Services, 899 Eaton Avenue, Bethlehem, PA 18025-0013.
(2) All requesters should provide the following information:
(i) Name of requesting contracting office;
(ii) Contracting office code (Block A3 on the DD Form 350) assigned
by the departmental data collection point;
(iii) Appropriate agency code as follows:
(A) Army activities--2100;
(B) Navy activities--1700;
(C) Air Force activities--5700;
(D) Defense Logistics Agency--97AS;
(E) Other DoD contracting activities--9700.
(iv) Contracting office area code and commercial telephone number;
(v) Name of individual making the request;
(vi) Total number of DUNS requests, if more than one; and
(vii) Contractor establishment name, street address, P.O. Box, city/
town, state, ZIP code, and telephone number (if available). For foreign
offerors, include province, country, and postal code.
[57 FR 42629, Sept. 15, 1992, as amended at 61 FR 51031, Sept. 30, 1996]
Sec. 204.7202-3 Taxpayer identification numbers.
The taxpayer identification number (TIN) is prescribed in FAR
subpart 4.9.
[[Page 38]]
Sec. 204.7202-4 Locally developed coding systems.
Locally developed coding systems may be used to identify contractors
as long as the contracting activity is able to comply with the
identification requirements of the activities with which it must share
data, e.g., furnish the CAGE code to the contract administration
activity.
Sec. 204.7203 Responsibilities of contracting officers.
(a) The contracting officer shall assist the offeror in obtaining
the required contractor code(s).
(b) Prospective offerors may not be denied a solicitation or bid set
because the offeror does not have a contractor code.
(c) The contracting officer or designee shall not request a new code
assignment until the appropriate microfiche, hardcopy or computer files
have been screened in an effort to identify a current code for the
entity. If the contracting officer does not have access to the files or
listings, then initiate action to obtain the files or listings and any
equipment necessary to use those files and/or listings (see 204.7202-1
and 2).
(d) If a CAGE code is being requested, it is the responsibility of
the contracting activity to request the assignment of the CAGE code by
completing section A of the DD Form 2051, Request for Assignment of a
Commercial and Government Entity (CAGE) Code (see 253.303-2051). The
prospective contractor will complete section B of the form. The
completed form or electronic equivalent will be submitted by the
contracting activity to DLSC-SBB for processing and code assignment
after the contracting activity has verified the data submitted by the
contractor. CAGE codes may be requested at the time the offeror is sent
a solicitation package or added to the mailing list to ensure that a
code is assigned in sufficient time to process the DD Form 350,
Individual Contracting Action Report, without delay.
[56 FR 36289, July 31, 1991, as amended at 57 FR 53598, Nov. 12, 1992;
61 FR 51031, Sept. 30, 1996]
Sec. 204.7204 Maintenance.
Maintenance transactions such as changes in name or address are to
be submitted to the maintenance activity.
Sec. 204.7204-1 Maintenance of the CAGE file.
(a) Changes, except name changes, may be submitted in writing--
(1) By the entity identified by the code, using company letterhead,
through the contract administration office;
(2) By the contracting office; or
(3) By the contract administration office (see also FAR Subpart
42.12, Novation and Change-of-Name Agreements.)
(4) Using the DD Form 2051, facsimile or electronic equivalent to:
Defense Logistics Services Center, DLSC-SBB, Federal Center, 74 N.
Washington, Battle Creek, MI 49017-3084. Telephone Numbers: DSN 932-
4358, FTS 552-4358, commercial (616) 961-4358. Facsimile: (616) 961-
4528, 4352, 4265. Bulletin Board: (616) 961-4589, 4527, 5262, 5303;
Message: RUEBUAA.
(b) The change-of-name agreement shall be submitted to DLSC-SBB by
the contracting officer responsible for execution of the agreement (see
FAR subpart 42.12). In the event there are no current contracts in
force, each contracting and contract administration office receiving
notification of changes from the commercial entity shall forward a copy
of the change notice annotated with the CAGE code to the DLSC-SBB unless
the change notice indicates that DLSC-SBB has already been notified.
(c) Additional guidance for maintaining CAGE codes is set forth at
Volume 7 of DoD 4100.39-M, Defense Integrated Data System (DIDS) Manual.
[56 FR 36289, July 31, 1991, as amended at 57 FR 53598, Nov. 12, 1991;
61 FR 51031, Sept. 30, 1996]
Sec. 204.7204-2 Maintenance of contractor identification number codes.
Changes, except name changes, may be submitted in writing using
company letterhead by the entity identified by the code through the
contract administration office, by the contracting office or the
contract administration office (see also FAR Subpart 42.12, Novation
[[Page 39]]
and Change-of-Name Agreements), using the agency letterhead, by mail,
facsimile or electronic equivalent to FPDC Department, Dun & Bradstreet
Information Services, 899 Eaton Avenue, Bethlehem, PA 18025-0013.
[56 FR 67212, Dec. 30, 1991]
Sec. 204.7205 Novation agreements, mergers and sales of assets.
Contracting officers shall process and execute novation agreements
in accordance with FAR Subpart 42.12, Novation and Change-of-Name
Agreements. These actions are independent of code and name assignments
made as a result of the occasion which created the need for the novation
agreement. The maintenance activity will determine which entity(s) will
retain the existing code(s) and which entities will be assigned new
codes. The contracting officer responsible for processing the novation
agreement shall provide the maintenance activity with the following
information:
(a) Name(s), address(es), and code(s) of the contractor(s)
transferring the original contractual rights and obligations.
(b) Name(s), address(es), and code(s) (if any) of the entity who is
the successor in interest (transferor).
(c) Name(s), address(es), and code(s) (if any) of the entity who is
retaining or receiving the rights to the technical data.
(d) Description of the circumstances surrounding the novation
agreement and especially the relationship of each entity to the other.
Sec. 204.7206 Using CAGE codes to identify agents and brokers.
Authorized agents and brokers are entities and, as such, may be
assigned CAGE codes and contractor identification number codes for
identification and processing purposes.
(a) A single CAGE code will be assigned to the agent/broker
establishment in addition to any codes assigned to the entities
represented by the agent/broker, i.e., only one code will be assigned to
a specific agent/broker entity regardless of the number of firms
represented by that agent/broker.
(b) Additional codes may be assigned to an agent/broker if they meet
the criteria for assigning additional codes for entities, e.g.,
different location.
(c) Codes will not be assigned to an agent/broker in care of the
entity being represented or in any way infer that the agent/broker is a
separate establishment bearing the name of the entity represented by the
agent/broker.
[56 FR 36289, July 31, 1991, as amended at 61 FR 51032, Sept. 30, 1996]
[[Page 40]]
SUBCHAPTER B--ACQUISITION PLANNING
PART 205--PUBLICIZING CONTRACT ACTIONS--Table of Contents
Sec.
Subpart 205.2--Synopses of Proposed Contract Actions
205.203 Publicizing and response time.
205.207 Preparation and transmittal of synopses.
Subpart 205.3--Synopses of Contract Awards
205.303 Announcement of contract awards.
Subpart 205.4--Release of Information
205.470 Contractor information to be provided cooperative agreement
holders.
205.470-1 Statutory requirement.
205.470-2 Contract clause.
Subpart 205.5--Paid Advertisements
205.502 Authority.
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
Source: 56 FR 36302, July 31, 1991, unless otherwise noted.
Subpart 205.2--Synopses of Proposed Contract Actions
Sec. 205.203 Publicizing and response time.
(b) Allow at least 45 days response time when requested by a
qualifying or designated country source (as these terms are used in part
225) and the request is consistent with the Government's requirement.
Sec. 205.207 Preparation and transmittal of synopses.
(d)(i) For small disadvantaged business set-asides under 219.502-2-
70, use CBD Numbered Note 4.
(ii) For acquisitions being considered for small disadvantaged
business set-aside, use CBD Numbered Note 6.
(iii) For historically black college and university and minority
institution set-asides under 226.7003, use CBD Numbered Note 5.
(iv) For acquisitions being considered for historically black
college and university and minority institution set-aside, state:
This proposed contract is being considered as a 100 percent set-
aside for historically black colleges and universities (HBCUs) and
minority institutions (MIs), as defined by the clause at 252.226-7000 of
the Defense Federal Acquisition Regulation Supplement. Interested HBCUs
and MIs should provide the contracting office as early as possible, but
not later than 15 days after this notice, evidence of their capability
to perform the contract, and a positive statement of their eligibility
as an HBCU or MI. If adequate response is not received from HBCUs and
MIs, the solicitation will instead be issued, without further notice,
as: ______________ (indicate if unrestricted, or restricted for small
business or small disadvantaged business, etc.). Therefore, replies to
this notice are also requested from
_______________________________________________________________________
(enter the types of firms to be solicited in the event an HBCU or MI
set-aside is not made).''
(v) For broad agency announcement (BAA) (see 235.016) notices,
indicate which, if any, portion of the BAA will be set-aside for
historically black colleges and universities and minority institutions.
(e) For acquisitions restricted to domestic sources under the
authority of FAR 6.302-3, use CBD Numbered Note 13.
Subpart 205.3--Synopses of Contract Awards
Sec. 205.303 Announcement of contract awards.
(a) Public announcement. (i) The threshold for DoD awards is $5
million. Report all contractual actions, including modifications, that
have a face value, excluding unexercised options, of more than $5
million.
(A) For undefinitized contractual actions, report the not-to-exceed
(NTE) amount. Later, if the definitized amount exceeds the NTE amount by
more than $5 million, report only the amount exceeding the NTE.
(B) For indefinite delivery, time and material, labor hour, and
similar contracts, report the initial award if the estimated face value,
excluding
[[Page 41]]
unexercised options, is more than $5 million. Do not report orders up to
the estimated value, but after the estimated value is reached, report
subsequent modifications and orders that have a face value of more than
$5 million.
(C) Do not report the same work twice.
(ii) Departments and agencies submit the information--
(A) To the Office of the Assistant Secretary of Defense (Public
Affairs);
(B) By the close of business the day before the date of the proposed
award;
(C) Using report control symbol DD-LA- (AR) 1279;
(D) Including, as a minimum, the following--
(1) Contract data. Contract number, modification number, or delivery
order number, face value of this action, total cumulative face value of
the contract, description of what is being bought, contract type,
whether any of the buy was for foreign military sales (FMS) and
identification of the FMS customer;
(2) Competition information. Number of solicitations mailed and
number of offers received;
(3) Contractor data. Name, address, and place of performance (if
significant work is performed at a different location);
(4) Funding data. Type of appropriation and fiscal year of the
funds, and whether the contract is multiyear (see FAR Subpart 17.1); and
(5) Miscellaneous data. Identification of the contracting office,
the contracting office point of contact, known congressional interest,
and the information release date.
(iii) Departments and agencies, in accordance with department/agency
procedures and concurrent with the public announcement, shall provide
information similar to that required by paragraph (a)(ii) of this
section to members of Congress in whose state or district the contractor
is located and the work is to be performed.
[56 FR 36302, July 31, 1991, as amended at 56 FR 67212, Dec. 30, 1991]
Subpart 205.4--Release of Information
205.470 Contractor information to be provided cooperative agreement
holders.
Sec. 205.470-1 Statutory requirement.
(a) As required by 10 U.S.C. 2413, the Defense Logistics Agency
enters into cooperative agreements--
(1) With--
(i) State and local governments;
(ii) Non-profit organizations;
(iii) Indian tribal organizations; and
(iv) Indian-owned economic enterprises
(2) For the provision of technical assistance to business entities.
(b) Contractors receiving defense contracts valued at more than
$500,000 must provide cooperative agreement holders, at their request,
the information specified in the clause at 252.205-7000, Provision of
Information to Cooperative Agreement Holders.
Sec. 205.470-2 Contract clause.
Use the clause at 252.205-7000, Provision of Information to
Cooperative Agreement Holders, in solicitations and contracts expected
to exceed $500,000.
Subpart 205.5--Paid Advertisements
Sec. 205.502 Authority.
For paid advertisements to recruit civilian personnel, see section
332-1-9 of the Federal Personnel Manual.
(a) Newspapers. (i) Heads of contracting activities are delegated
authority to approve the publication of paid advertisements in
newspapers. They may redelegate this authority in accordance with agency
procedures.
(ii) Submit DD Form 1535, Request/Approval for Authority to
Advertise, to the approval authority to obtain special or general
authority.
(A) Special authority permits the publication of a given
advertisement for a specified number of times in designated newspapers.
(B) General authority permits the publication of such advertisements
as may be required during a designated fiscal year.
[[Page 42]]
PART 206--COMPETITION REQUIREMENTS--Table of Contents
Sec.
206.001 Applicability.
Subpart 206.2--Full and Open Competition After Exclusion of Sources
206.202 Establishing or maintaining alternative sources.
206.203 Set-asides for small business and labor surplus area concerns.
Subpart 206.3--Other Than Full and Open Competition
206.302 Circumstances permitting other than full and open competition.
206.302-1 Only one responsible source and no other supplies or services
will satisfy agency requirements.
206.302-2 Unusual and compelling urgency.
206.302-3 Industrial mobilization; or engineering, development, or
research capability.
206.302-3-70 Solicitation provision.
206.302-4 International agreement.
206.302-5 Authorized or required by statute.
206.302-7 Public interest.
206.303 Justifications.
206.303-1 Requirements.
206.303-2 Content.
206.304 Approval of the justification.
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
Source: 56 FR 36303, July 31, 1991, unless otherwise noted.
Sec. 206.001 Applicability.
(b) Contracts awarded using the procedures in 237.104(b)(ii) are
expressly authorized by 10 U.S.C. 1091.
[60 FR 61592, Nov. 30, 1995]
Subpart 206.2--Full and Open Competition After Exclusion of Sources
Sec. 206.202 Establishing or maintaining alternative sources.
(a) Agencies may use this authority to totally or partially exclude
a particular source from a contract action.
(b) The determination and findings (D&F) and the documentation
supporting the D&F must identify the source to be excluded from the
contract action.
(i) Include the following information, as applicable, and any other
information that may be pertinent, in the supporting documentation:
(A) The acquisition history of the supplies or services, including
sources, prices, quantities, and dates of award;
(B) The circumstances which make it necessary to exclude the
particular source from the contract action, including--
(1) The reasons for the lack of or potential loss of alternative
sources; e.g., the technical complexity and criticality of the supplies
or services; and
(2) The current annual requirement and projected needs for the
supplies or services;
(C) Whether the existing source must be totally excluded from the
contract action or whether a partial exclusion is sufficient;
(D) The potential effect of exclusion on the excluded source in
terms of loss of capability to furnish the supplies or services in the
future;
(E) When FAR 6.202(a)(1) is the authority, the basis for--
(1) The determination of future competition; and
(2) The determination of reduced overall costs. Include, as a
minimum, a discussion of start-up costs, facility costs, duplicative
administration costs, economic order quantities, and life cycle cost
considerations; and
(F) When FAR 6.202(a)(2) is the authority--
(1) The current annual and mobilization requirements for the
supplies or services, citing the source of, or the basis for, the data;
(2) A comparison of current production capacity with that necessary
to meet mobilization requirements;
(3) An analysis of the risks of relying on the present source; and
(4) A projection of the time required for a new source to acquire
the necessary facilities and achieve the production capacity necessary
to meet mobilization requirements.
(ii) A sample format for Determination and Findings citing the
authority of FAR 6.202(a) is in Table 6-1, Determinations and Findings.
[[Page 43]]
Table 6-1--Determinations and Findings
Determinations and Findings
Authority to Exclude a Source
In accordance with 10 U.S.C. 2304(b)(1), it is my determination that the
following contract action may be awarded using full and open
competition after exclusion of ________\1\:
------------------------------------------------------------------------
(Describe requirement.) Findings The exclusion of ________\1\
---------------------------------------------------------------------------
\1\ Identify source being excluded.
---------------------------------------------------------------------------
Alternate 1: will increase or maintain competition for this
requirement and is expected to result in a reduction of $______ in
overall costs for the present and future acquisition of these supplies
or services. (Describe how estimate was derived.)
Alternate 2: is in the interest of national defense because it will
result in having a supplier available for furnishing these supplies or
services in case of a national emergency or industrial mobilization.
(Explain circumstances requiring exclusion of source.)
Alternate 3: is in the interest of national defense because it will
result in establishment or maintenance of an essential engineering,
research or development capability to be provided by an educational or
other nonprofit institution or a federally funded research and
development center. (Explain circumstances requiring exclusion of
source.)
Sec. 206.203 Set-asides for small business and labor surplus area concerns.
(b) Also no separate justification or determination and findings is
required for contract actions processed as small disadvantaged business
set-asides (219.502-2-70) or as historically black college and
university and minority institution set-asides (226.7003).
Subpart 206.3--Other Than Full and Open Competition
206.302 Circumstances permitting other than full and open competition.
Sec. 206.302-1 Only one responsible source and no other supplies or services will satisfy agency requirements.
(a) Authority. (2)(i) Section 8059 of Pub. L. 101-511 and similar
sections in subsequent defense appropriations acts prohibit departments
and agencies from entering into contracts for studies, analyses, or
consulting services (see FAR subpart 37.2) on the basis of an
unsolicited proposal without providing for full and open competition,
unless--
(1) The head of the contracting activity, or a designee no lower
than chief of the contracting office, determines that--
(i) Following thorough technical evaluation, only one source is
fully qualified to perform the proposed work;
(ii) The unsolicited proposal offers significant scientific or
technological promise, represents the product of original thinking, and
was submitted in confidence; or
(iii) The contract benefits the national defense by taking advantage
of a unique and significant industrial accomplishment or by ensuring
financial support to a new product or idea;
(2) A civilian official of the DoD, whose appointment has been
confirmed by the Senate, determines the award to be in the interest of
national defense; or
(3) The contract is related to improvement of equipment that is in
development or production.
(b) Application. This authority may be used for acquisitions of test
articles and associated support services from a designated foreign
source under the DoD Foreign Comparative Testing Program.
(4) Do not use this authority unless the equipment or parts have
been adopted as standard items of supply in accordance with DoDI 5000.2,
Defense Acquisition Management Policies and Procedures.
[56 FR 36303, July 31, 1991, as amended at 57 FR 14992, Apr. 23, 1992;
58 FR 28463, May 13, 1993]
Sec. 206.302-2 Unusual and compelling urgency.
(b) Application. The circumstances under which use of this authority
may be appropriate include, but are not limited to, the following:
(i) Supplies, services, or construction needed at once because of
fire, flood, explosion, or other disaster;
[[Page 44]]
(ii) Essential equipment or repair needed at once to--
(A) Comply with orders for a ship;
(B) Perform the operational mission of an aircraft; or
(C) Preclude impairment of launch capabilities or mission
performance of missiles or missile support equipment.
(iii) Construction needed at once to preserve a structure or its
contents from damage;
(iv) Purchase requests citing an issue priority designator under
DoDD 4410.6, Uniform Material Movement and Issue Priority System, of 4
or higher, or citing ``Electronic Warfare QRC Priority.''
206.302-3 Industrial mobilization; or engineering, development, or
research capability.
Sec. 206.302-3-70 Solicitation provision.
Use the provision at 252.206-7000, Domestic Source Restriction, in
all solicitations that are restricted to domestic sources under the
authority of FAR 6.302-3.
Sec. 206.302-4 International agreement.
(c) Limitations. Pursuant to 10 U.S.C. 2304(f)(2)(E), the
justifications and approvals described in FAR 6.303 and 6.304 are not
required if--
(i) The head of the contracting activity prepares a document which
describes the terms of an agreement or treaty or the written directions,
such as a Letter of Offer and Acceptance, that have the effect of
requiring the use of other than competitive procedures for the
acquisition; and
(ii) The document in paragraph (c)(i) of this subsection is approved
by the competition advocate for the contracting activity.
Sec. 206.302-5 Authorized or required by statute.
(b) Application. Agencies may use this authority to--
(i) Acquire supplies and services from military exchange stores
outside the United States for use by the armed forces outside the United
States in accordance with 10 U.S.C. 2424(a) and subject to the
limitations of 10 U.S.C. 2424(b). The limitations of 10 U.S.C. 2424(b)
(1) and (2) do not apply to the purchase of soft drinks that are
manufactured in the United States. For the purposes of 10 U.S.C. 2424,
soft drinks manufactured in the United States are brand name carbonated
sodas, manufactured in the United States, as evidenced by product
markings.
(ii) Acquire police, fire protection, airfield operation, or other
community services from local governments at military installations to
be closed under the circumstances in 237.7401 (Section 2907 of Fiscal
Year 1994 Defense Authorization Act (Pub. L. 103-160)).
(c) Limitations. (i) 10 U.S.C. 2361 precludes use of this exception
for awards to colleges or universities for the performance of research
and development, or for the construction of any research or other
facility, unless--
(A) The statute authorizing or requiring award specifically--
(1) States that the statute modifies or supersedes the provisions of
10 U.S.C. 2361,
(2) Identifies the particular college or university involved, and
(3) States that award is being made in contravention of 10 U.S.C.
2361(a); and
(B) The Secretary of Defense provides Congress written notice of
intent to award. The contract cannot be awarded until 180 days have
elapsed since the date Congress received the notice of intent to award.
Contracting activities must submit a draft notice of intent with
supporting documentation through channels to the Director of Defense
Procurement, Office of the Under Secretary of Defense (Acquisition &
Technology).
(ii) The limitation in paragraph (c)(i) of this subsection applies
only if the statute authorizing or requiring award was enacted after
September 30, 1989.
(iii) Subsequent statutes may provide different or additional
constraints on the award of contracts to specified colleges and
universities. Contracting officers should consult legal counsel on a
case-by-case basis.
[56 FR 36303, July 31, 1991, as amended at 57 FR 14992, Apr. 23, 1992;
58 FR 28463, May 13, 1993; 59 FR 36089, July 15, 1994; 60 FR 29497, June
5, 1995; 60 FR 40107, Aug. 7, 1995]
[[Page 45]]
Sec. 206.302-7 Public interest.
(c) Limitations. For the defense agencies, the written determination
to use this authority must be made by the Secretary of Defense.
206.303 Justifications.
Sec. 206.303-1 Requirements.
(b) Technical and requirements personnel must obtain any review and
approval required by department or agency procedures before submission
of a recommendation for other than full and open competition to the
contracting officer.
(c) When conditions warrant, a class justification may provide for
award of multiple contracts extending across more than one program
phase.
[56 FR 36303, July 31, 1991, as amended at 60 FR 61592, Nov. 30, 1995]
Sec. 206.303-2 Content.
(a) Include sufficient information in the justification to permit
its approval as a stand-alone document, even though agency procedures
may require supplementary documentation.
Sec. 206.304 Approval of the justification.
(a)(4) The Under Secretary of Defense (Acquisition & Technology) may
delegate this authority to--
(A) An Assistant Secretary of Defense; or
(B) For a defense agency, an officer or employee serving in,
assigned, or detailed to that agency who--
(1) If a member of the armed forces, is serving in a rank above
brigadier general or rear admiral (lower half); or
(2) If a civilian, is serving in a position with a grade under the
General Schedule (or any other schedule for civilian officers or
employees) that is comparable to or higher than the grade of major
general or rear admiral.
[61 FR 10285, Mar. 13, 1995, as amended at 61 FR 50451, Sept. 26, 1996]
PART 207--ACQUISITION PLANNING--Table of Contents
Subpart 207.1--Acquisition Plans
Sec.
207.102 Policy.
207.103 Agency-head responsibilities.
207.104 General procedures.
207.105 Contents of written acquisition plans.
207.106 Additional requirements for major systems.
Subpart 207.4--Equipment Lease or Purchase
207.401 Acquisition considerations.
207.470 Statutory requirements.
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
Source: 56 FR 36305, July 31, 1991, unless otherwise noted.
Subpart 207.1--Acquisition Plans
Sec. 207.102 Policy.
When a class justification for other than full and open competition
has been approved, planning for competition shall be accomplished
consistent with the terms of that approval.
[60 FR 61592, Nov. 30, 1995]
Sec. 207.103 Agency-head responsibilities.
(c)(i) Military departments and agencies shall prepare written
acquisition plans for--
(A) Acquisitions for development, as defined in FAR 35.001, when the
total cost of all contracts for the acquisition program is estimated at
$5 million or more;
(B) Acquisitions for production or services when the total cost of
all contracts for the acquisition program is estimated at $30 million or
more for all years or $15 million or more for any fiscal year; and
(C) Any other acquisition considered appropriate by the department
or agency.
(ii) Written plans are not required in acquisitions for a final buy
out or one-time buy. The terms ``final buy out'' and ``one-time buy''
refer to a single contract which covers all known present and future
requirements. This exception does not apply to a multiyear contract or a
contract with options or phases.
(d) Prepare written acquisition plans for acquisition programs
meeting the thresholds of paragraphs (c)(i) (A) and (B) of this section
on a program basis. Other acquisition plans may be written
[[Page 46]]
on either a program or an individual contract basis.
(f) The program manager, or other official responsible for the
program, has overall responsibility for acquisition planning.
(h)(i) Apply design-to-cost principles--
(A) In all major defense acquisition programs (DoDD 5000.1, Defense
Acquisition), unless exempted by the Secretary of Defense; and
(B) To the acquisition of systems, subsystems, and components below
the thresholds for major defense acquisition programs, to the extent
prescribed by DoDD 5000.1.
(ii) Consider life-cycle-cost in all acquisitions of systems and
equipment.
[56 FR 36305, July 31, 1991, as amended at 61 FR 50451, Sept. 26, 1996]
Sec. 207.104 General procedures.
(b) The planner should forward the requirements information to the
contract administration organization when assistance in identification
of potential sources of supply is necessary, when an existing contract
is being modified or resolicited, or when contract administration
resource requirements will be affected.
[61 FR 50451, Sept. 26, 1996]
Sec. 207.105 Contents of written acquisition plans.
For acquisitions covered by 207.103(c)(i) (A) and (B), correlate the
plan to the DoD Future Years Defense Program, applicable budget
submissions, and the decision coordinating paper/program memorandum, as
appropriate. It is incumbent upon the planner to coordinate the plan
with all those who have a responsibility for the development,
management, or administration of the acquisition. The acquisition plan
should be provided to the contract administration organization to
facilitate resource allocation and planning for the evaluation,
identification, and management of contractor performance risk.
(a) Acquisition background and objectives--(1) Statement of need.
Include--
(A) Applicability of a decision coordinating paper (DCP),
acquisition decision memorandum, Defense Acquisition Board (DAB), and/or
internal service reviews. Describe the options in the DCP/acquisition
decision memorandum and delineate which option the acquisition plan
supports.
(B) The date approval for operational use has been or will be
obtained. If waivers are requested, describe the need for the waivers.
(C) A milestone chart depicting the acquisition objectives.
(D) Milestones for updating the acquisition plan. Indicate when the
plan will be updated. Program managers should schedule updates to
coincide with DAB reviews and the transition from one phase to another
(e.g., engineering and manufacturing development to production and
deployment).
(8) Acquisition streamlining. DoDD 5000.1, Defense Acquisition, and
DoD 5000.2-R, Mandatory Procedures for Major Defense Acquisition
Programs (MDAPs) and Major Automated Information System (MAIS)
Acquisition Programs, contain policy direction on acquisition
streamlining. See MIL-HDBK 248, Acquisition Streamlining, for guidance
on streamlining performance requirements, the technical package, and the
contract strategy.
(b) Plan of action.--(5) Budgeting and funding. Include specific
references to budget line items and program elements, where applicable,
estimated production unit cost, and the total cost for remaining
production.
(6) Product descriptions. For development acquisitions, describe the
market research undertaken to identify commercial items, commercial
items with modifications, or nondevelopmental items (see FAR part 10)
that could satisfy the acquisition objectives.
(13) Logistics considerations. (i) Describe the extent of integrated
logistics support planning to date, including references to approved
plans.
(ii) Discuss the mission profile, reliability, and maintainability
(R&M) program plan, R&M predictions, redundancy, qualified parts lists,
parts and material qualification, R&M requirements imposed on vendors,
failure analysis, corrective action and feedback, and R&M design reviews
and trade-off studies.
(iv) See DoDD 5000.1, Defense Acquisition, and DoD 5000.2-R,
Mandatory
[[Page 47]]
Procedures for Major Defense Acquisition Programs (MDAPs) and Major
Automated Information System (MAIS) Acquisition Programs, for procedures
on standardization and on the DoD Parts Control Program. See MIL-STD-
965, Parts Control Program, for procedures on the Standardized Military
Drawing Program.
(S-70) Describe the extent of Computer-Aided Acquisition and
Logistics Support (CALS) implementation (see MIL-HDBK 59, Department of
Defense Computer-Aided Logistics Support (CALS) Program Guide, and MIL-
STD-1840A, Automated Interchange of Technical Information.
(16) Environmental and energy conservation objectives. Discuss
actions taken to ensure either elimination of or authorization to use
class I ozone-depleting chemicals and substances (see 211.271).
(18) Other considerations. (A) National Technology and Industrial
Base. For major defense acquisition programs, address the following
(Pub. L. 102-484, section 4220)--
(1) An analysis of the capabilities of the national technology and
industrial base to develop, produce, maintain, and support such program,
including consideration of the following factors related to foreign
dependency (Pub. L. 102-484, section 4219(h))--
(i) The availability of essential raw materials, special alloys,
composite materials, components, tooling, and production test equipment
for the sustained production of systems fully capable of meeting the
performance objectives established for those systems; the uninterrupted
maintenance and repair of such systems; and the sustained operation of
such systems.
(ii) The identification of items specified in paragraph
(b)(18)(A)(1)(i) of this section that are available only from sources
outside the national technology and industrial base.
(iii) The availability of alternatives for obtaining such items from
within the national technology and industrial base if such items become
unavailable from sources outside the national technology industrial
base; and an analysis of any military vulnerability that could result
from the lack of reasonable alternatives.
(iv) The effects on the national technology and industrial base that
result from foreign acquisition of firms in the United States.
(2) Consideration of requirements for efficient manufacture during
the design and production of the systems to be procured under the
program.
(3) The use of advanced manufacturing technology, processes, and
systems during the research and development phase and the production
phase of the program.
(4) To the maximum extent practicable, the use of contract
solicitations that encourage competing offerors to acquire, for use in
the performance of the contract, modern technology, production
equipment, and production systems (including hardware and software) that
increase the productivity of the offerors and reduce the life-cycle
costs.
(5) Methods to encourage investment by U.S. domestic sources in
advanced manufacturing technology production equipment and processes
through--
(i) Recognition of the contractor's investment in advanced
manufacturing technology production equipment, processes, and
organization of work systems that build on workers' skill and
experience, and work force skill development in the development of the
contract objective; and
(ii) Increased emphasis in source selection on the efficiency of
production.
(6) Expanded use of commercial manufacturing processes rather than
processes specified by DoD.
(7) Elimination of barriers to, and facilitation of, the integrated
manufacture of commercial items and items being produced under DoD
contracts.
(8) Expanded use of commercial items, commercial items with
modifications, or to the extent commercial items are not available,
nondevelopmental items (see FAR part 10).
(B) Industrial preparedness (IP).
(1) Provide the program's IP strategy that assesses the capability
of the U.S. industrial base to achieve identified surge and mobilization
goals. If no IP strategy has been developed, provide supporting
rationale for this position.
(2) If in the IP strategy, the development of a detailed IP plan was
determined to be applicable, include the
[[Page 48]]
plan by text or by reference. If the development of the IP plan was
determined not to be applicable, summarize the details of the analysis
forming the basis of this decision.
(3) If the program involves peacetime and wartime hardware
configurations which are supported by logistics support plans, identify
their impact on the IP plan.
(C) Ensure compliance with DoDD 4210.15, Hazardous Material
Pollution Prevention.
(D) Contract administration. Discuss the level of Government
administration anticipated or currently performed and any change
proposed by the contract administration office.
[56 FR 36305, July 31, 1991, as amended at 58 FR 28463, May 13, 1993; 58
FR 32061, June 8, 1993; 60 FR 29497, June 5, 1995; 60 FR 61593, Nov. 30,
1995; 61 FR 50451, Sept. 26, 1996]
Sec. 207.106 Additional requirements for major systems.
(b)(1)(A) The contracting officer is prohibited by 10 U.S.C.
2305(d)(4)(A) from requiring offers for development or production of
major systems that would enable the Government to use technical data to
competitively reprocure identical items or components of the system if
the item or component were developed exclusively at private expense,
unless the contracting officer determines that--
(1) The original supplier of the item or component will be unable to
satisfy program schedule or delivery requirements;
(2) Proposals by the original supplier of the item or component to
meet mobilization requirements are insufficient to meet the agency's
mobilization needs; or
(3) The Government is otherwise entitled to unlimited rights in
technical data.
(B) If the contracting officer makes a determination, under
paragraphs (b)(1)(A) (1) and (2) of this section, for a competitive
solicitation, 10 U.S.C. 2305(d)(4)(B) requires that the evaluation of
items developed at private expense be based on an analysis of the total
value, in terms of innovative design, life-cycle costs, and other
pertinent factors, of incorporating such items in the system.
Subpart 207.4--Equipment Lease or Purchase
Sec. 207.401 Acquisition considerations.
If the equipment will be leased for more than 60 days, the requiring
activity must prepare and provide the contracting officer with the
justification supporting the decision to lease or purchase.
Sec. Sec. 207.470 Statutory requirements.
(a) Limitation on contracts with terms of 18 months or more. As
required by 10 U.S.C. 2401a, the contracting officer shall not enter
into any contract for any vessel, aircraft, or vehicle, through a lease,
charter, or similar agreement with a term of 18 months or more, or
extend or renew any such contract for a term of 18 months or more,
unless the head of the contracting activity has--
(1) Considered all costs of such a contract (including estimated
termination liability); and
(2) Determined in writing that the contract is in the best interest
of the Government.
(b) Leasing of commercial vehicles and associated equipment. Except
as provided in paragraph (a) of this section, the contracting officer
may use leasing in the acquisition of commercial vehicles and associated
equipment whenever the contracting officer determines that leasing of
such vehicles is practicable and efficient (10 US.C. 2401a).
[61 FR 16879, Apr. 18, 1996, as amended at 61 FR 50451, Sept. 26, 1996]
PART 208--REQUIRED SOURCES OF SUPPLIES AND SERVICES--Table of Contents
Sec.
208.001 Priorities for use of Government supply sources.
208.002 Use of other Government supply sources.
Subpart 208.4--Ordering from Federal Supply Schedules
208.404 Using schedules.
208.404-1 Mandatory use.
208.404-2 Optional use.
208.405 Ordering office responsibilities.
208.405-2 Order placement.
[[Page 49]]
Subpart 208.7--Acquisition from the Blind and Other Severely Handicapped
208.705 Procedures.
Subpart 208.70--Coordinated Acquisition
208.7000 Scope of subpart.
208.7001 Definitions.
208.7002 Assignment authority.
208.7002-1 Acquiring department responsibilities.
208.7002-2 Requiring department responsibilities.
208.7003 Applicability.
208.7003-1 Assignments under integrated material management (IMM).
208.7003-2 Assignments under coordinated acquisition.
208.7004 Procedures.
208.7004-1 Purchase authorization from requiring department.
208.7004-2 Acceptance by acquiring department.
208.7004-3 Use of advance MIPRs.
208.7004-4 Cutoff dates for submission of Category II MIPRs.
208.7004-5 Notification of inability to obligate on Category II MIPRs.
208.7004-6 Cancellation of requirements.
208.7004-7 Termination for default.
208.7004-8 Transportation funding.
208.7004-9 Status reporting.
208.7004-10 Administrative costs.
208.7005 MIPRs.
208.7006 Coordinated acquisition assignments.
Subpart 208.71--Acquisition for National Aeronautics and Space
Administration (NASA)
208.7100 Authorization.
208.7101 Policy.
208.7102 Procedures.
208.7103 Purchase request and acceptance.
208.7104 Changes in estimated total prices.
208.7105 Payments.
Subpart 208.72--Industrial Preparedness Production Planning
208.7201 Definitions.
208.7202 General.
208.7203 Authority.
208.7204 Procedures.
Subpart 208.73--Use of Government-Owned Precious Metals
208.7301 Definitions.
208.7302 Policy.
208.7303 Procedures.
208.7304 Refined precious metals.
208.7305 Contract clause.
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
Source: 56 FR 36306, July 31, 1991, unless otherwise noted.
Sec. 208.001 Priorities for use of Government supply sources.
(a)(1)(v) See subpart 208.70, Coordinated Acquisition.
(2)(iii) Information on General Services Administration (GSA)
schedules for maintenance, repair, and rehabilitation of personal
property is in the GSA supply catalog. The types of personal property
for which GSA, Federal Supply Service has schedule contracts for
maintenance, repair, and/or rehabilitation are--
(1) Furniture (office, household, quarters, institutional, and
hospital type);
(2) Typewriters (manual, electric, and electronic);
(3) Repair and maintenance of Government owned vehicles; and
(4) Tire retreading and repair (except aircraft).
Sec. 208.002 Use of other Government supply sources.
(f) Detailed information on strategic and critical materials in
excess of national stockpile requirements (e.g., metals, ores,
chemicals) is available from the Defense National Stockpile Center, 1745
Jefferson Davis Highway, Crystal Square Bldg. 4, suite 100, Arlington,
VA 22202.
(g) Acquire helium (Pub. L. 86-777)--
(i) In bulk from--
(A) The Department of Interior (Bureau of Mines); or
(B) Eligible private helium distributors. A list of eligible private
helium distributors is maintained by the Bureau of Mines, Helium Field
Operations, 1100 South Fillmore Street, Amarillo, TX 79101.
(ii) In cylinders or trailers, from--
(A) The Department of Interior (Bureau of Mines); or
(B) Through GSA Federal Supply Schedule contracts.
Subpart 208.4--Ordering From Federal Supply Schedules
Sec. 208.404 Using schedules.
(a) When a schedule lists both foreign and domestic items that will
meet the needs of the requiring activity, the ordering office must apply
the procedures
[[Page 50]]
of part 225 and FAR part 25, Foreign Acquisition. When purchase of an
item of foreign origin is specifically required, the requiring activity
must furnish the ordering office sufficient information to permit the
determinations required by part 225 and FAR part 25 to be made.
Sec. 208.404-1 Mandatory use.
The DoD will not be a mandatory user of any schedule unless
individual DoD activities elect to provide annual requirements estimates
to GSA and become mandatory users. Examples of areas where this approach
may be applied are:
(1) Group 68--gases and chemicals;
(2) Group 26--pneumatic tires and inner tubes;
(3) Maintenance, repair, and/or rehabilitation of personal property;
and
(4) ``Just-in-time'' arrangements for delivery of material directly
from vendors to users.
Sec. 208.404-2 Optional use.
Make maximum use of the schedules. Other procedures may be used if
further competition is judged to be in the best interest of the
Government in terms of quality, responsiveness, or cost.
208.405 Ordering office responsibilities.
Sec. 208.405-2 Order placement.
(1) Ordering offices may use DD Form 1155, Order for Supplies or
Services, to order items from schedules.
(2) Orders may be placed orally if--
(i) The order does not exceed the small purchase threshold at FAR
13.000;
(ii) The contractor agrees to furnish a delivery ticket for each
shipment under the order (in the number of copies required by the
ordering office). The ticket must include the--
(A) Contract number;
(B) Order number under the contract;
(C) Date of order;
(D) Name and title of person placing order;
(E) Itemized listing of supplies or services furnished; and
(F) Date of delivery or shipment.
(iii) Invoicing procedures are agreed upon. Optional methods of
submitting invoices for payment are permitted, such as--
(A) An individual invoice with a receipted copy of the delivery
ticket;
(B) A summarized monthly invoice covering all oral orders made
during the month, with receipted copies of the delivery tickets (this
option is preferred if there are many oral orders); or
(C) A contracting officer statement that the Government has received
the supplies.
(3) For purchases where cash payment is an advantage, the use of
imprest funds (see FAR 13.4) is authorized when--
(i) The order does not exceed the threshold at FAR 13.404(a); and
(ii) The contractor agrees to the procedure.
Subpart 208.7--Acquisition From the Blind and Other Severely Handicapped
Sec. 208.705 Procedures.
Ordering offices may use DD Form 1155, Order for Supplies or
Services, to place orders with central nonprofit agencies or workshops.
Subpart 208.70--Coordinated Acquisition
Sec. 208.7000 Scope of subpart.
This subpart prescribes policy and procedures for acquisition of
items for which contracting responsibility is assigned to one or more of
the departments/agencies or the General Services Administration.
Contracting responsibility is assigned through--
(a) The Coordinated Acquisition Program (commodity assignments are
listed in appendix B); or
(b) The Integrated Materiel Management Program (assignments are in
DoD 4140.26-M, Integrated Materiel Management for Consumable Items).
Sec. 208.7001 Definitions.
For purposes of this subpart--
Acquiring department means the department, agency, or General
Services Administration which has contracting
[[Page 51]]
responsibility under the Coordinated Acquisition Program.
Integrated materiel management means assignment of acquisition
management responsibility to one department, agency, or the General
Services Administration for all of DoD's requirements for the assigned
item. Acquisition management normally includes computing requirements,
funding, budgeting, storing, issuing, cataloging, standardizing, and
contracting functions.
Requiring department means the department or agency which has the
requirement for an item.
Sec. 208.7002 Assignment authority.
(a) Under the DoD Coordinated Acquisition Program, contracting
responsibility for certain commodities is assigned to a single
department, agency, or the General Services Administration (GSA).
Commodity assignments are made--
(1) To the departments and agencies, by the Assistant Secretary of
Defense (Production and Logistics);
(2) To the GSA, through agreement with GSA, by the Assistant
Secretary of Defense (Production and Logistics);
(3) Outside the continental United States, by the Unified
Commanders; and
(4) For acquisitions to be made in the United States for commodities
not assigned under paragraphs (a) (1), (2), or (3) of this section, by
agreement of agency heads (10 U.S.C. 2308).
(i) Agreement may be on either a one-time or a continuing basis. The
submission of a military interdepartmental purchase request (MIPR) by a
requiring activity and its acceptance by the contracting activity of
another department, even though based on an oral communication,
constitutes a one-time agreement.
(ii) Consider repetitive delegated acquisition responsibilities for
coordinated acquisition assignment. If not considered suitable for
coordinated acquisition assignment, formalize continuing agreements and
distribute them to all activities concerned.
(b) Under the Integrated Materiel Management Program, assignments
are made by the Assistant Secretary of Defense (Production and
Logistics)--
(1) To the departments and agencies; and
(2) To the GSA, through agreement with GSA.
Sec. 208.7002-1 Acquiring department responsibilities.
The acquiring department generally is responsible under coordinated
acquisition for--
(a) Operational aspects of acquisition planning (Phasing the
submission of requirements to contracting, consolidating or dividing
requirements, analyzing the market, and determining patterns for the
phased placement of orders to avoid unnecessary production fluctuations
and meet the needs of requiring departments at the lowest price);
(b) Purchasing;
(c) Performing or assigning contract administration, including
follow up and expediting of inspection and transportation; and
(d) Obtaining licenses under patents and settling patent
infringement claims arising out of the acquisition. (Acquiring
departments must obtain approval from the department whose funds are to
be charged for obtaining licenses or settling claims.)
Sec. 208.7002-2 Requiring department responsibilities.
The requiring department is responsible for--
(a) Ensuring compliance with the order of priority in FAR 8.001 for
use of Government supply sources before submitting a requirement to the
acquiring department for contracting action.
(b) Providing the acquiring department--
(1) The complete and certified documentation required by FAR 6.303-
2(b). A requiring department official, equivalent to the appropriate
level in FAR 6.304, must approve the documentation before submission of
the military interdepartmental purchase request (MIPR) to the acquiring
department;
(2) Any additional supporting data which the acquiring department
contracting officer requests (e.g., the results of any market survey or
why none was conducted, and actions the requiring department will take
to overcome barriers to competition in the future);
[[Page 52]]
(3) The executed determination and findings required by FAR 6.302-
7(c)(1);
(4) When a requiring department requests an acquiring department to
contract for supplies or services using full and open competition after
exclusion of sources, all data required by FAR 6.202(b)(2);
(5) When the requiring department specifies a foreign end product,
any determinations required by part 225 or FAR part 25;
(6) A complete definition of the requirements, including a list (or
copies) of specifications, drawings, and other data required for the
acquisition. The requiring department need not furnish Federal,
military, departmental, or other specifications or drawings or data
which are available to the acquiring department;
(7) Justification required by FAR 17.205(a) for any option
quantities requested;
(8) A statement as to whether used or reconditioned material, former
Government surplus property, or residual inventory will be acceptable,
and if so--
(i) A list of any supplies that need not be new; and
(ii) The basis for determining the acceptability of such supplies,
including an analysis of the factors at FAR 10.010(b);
(9) A statement as to whether the acquiring department may exceed
the total MIPR estimate, and if so, by what amount;
(10) Unless otherwise agreed between the departments, an original
and six copies of each MIPR and its attachments (except specifications,
drawings, and other data); and
(11) A list of all persons who have had access to proprietary or
source selection information (see FAR 3.104-9(e)).
208.7003 Applicability.
Sec. 208.7003-1 Assignments under integrated material management (IMM).
(a) All items assigned for IMM must be acquired from the IMM manager
except--
(1) Items purchased under circumstances of unusual and compelling
urgency as defined in FAR 6.302-2. After such a purchase is made, the
requiring activity must send one copy of the contract and a statement of
the emergency to the IMM manager;
(2) Items for which the IMM manager assigns a supply system code for
local purchase or otherwise grants authority to purchase locally; or
(3) When purchase by the requiring activity is in the best interest
of the Government in terms of the combination of quality, timeliness,
and cost that best meets the requirement. This exception does not apply
to items--
(i) Critical to the safe operation of a weapon system;
(ii) With special security characteristics; or
(iii) Which are dangerous (e.g., explosives, munitions).
(b) When an item assigned for IMM is to be acquired by the requiring
activity under paragraph (a)(3) of this subsection, the contracting
officer must--
(1) Document the contract file with a statement of the specific
advantage of local purchase for an acquisition exceeding the micro-
purchase threshold in FAR part 13; and
(2) Ensure that a waiver is obtained from the IMM manager before
initiating an acquisition exceeding the simplified acquisition threshold
in FAR part 13, if the IMM assignment is to the General Services
Administration (GSA), the Defense Logistics Agency (DLA), or the Army
Materiel Command (AMC). Submit requests for waiver to--
(i) For GSA:
Commissioner (F), Federal Supply Service, Washington, DC 20406
(ii) For DLA:
Defense Construction Supply Center, ATTN: DCSC-BDA, P.O. Box 3990,
Columbus, OH 43216-5000
Defense Electronics Supply Center, ATTN: DESC-ERM, 1507 Wilmington
Pike, Dayton, OH 45444-5000
Defense Fuel Supply Center, ATTN: DFSC-OI, Cameron Station, VA
22304-6160
Defense General Supply Center, ATTN: DGSC-X, Richmond, VA 23297-5000
Defense Industrial Supply Center, ATTN: DISC-OPD, 700 Robbins
Avenue, Philadelphia, PA 19111-5096
Defense Personnel Support Center, ATTN: DPSC-CSH, 2800 South 20th
Street, P.O. Box 8419, Philadelphia, PA 19101-8419
[[Page 53]]
(iii) For AMC:
Commander, U.S. Army Materiel Command, ATTN: AMCLG-S, 5001
Eisenhower Avenue, Alexandria, VA 22333-0001
[60 FR 61593, Nov. 30, 1995]
Sec. 208.7003-2 Assignments under coordinated acquisition.
Requiring departments must submit to the acquiring department all
contracting requirements for items assigned for coordinated acquisition,
except--
(a) Items obtained through the sources in FAR 8.001(a)(1) (i)
through (vii);
(b) Items obtained under 208.7003-1(a);
(c) Requirements not in excess of the simplified acquisition
threshold in FAR part 13, when contracting by the requiring department
is in the best interest of the Government;
(d) In an emergency. When an emergency purchase is made, the
requiring department must send one copy of the contract and a statement
of the emergency to the contracting activity of the acquiring
department;
(e) Requirements for which the acquiring department's contracting
activity delegates contracting authority to the requiring department;
(f) Items in a research and development stage (as described in FAR
part 35). Under this exception, the military departments may contract
for research and development requirements, including quantities for
testing purposes and items undergoing in-service evaluation (not yet in
actual production, but beyond prototype). Generally, this exception
applies only when research and development funds are used.
(g) Items peculiar to nuclear ordnance material where design
characteristics or test-inspection requirements are controlled by the
Department of Energy (DoE) or by DoD to ensure reliability of nuclear
weapons.
(1) This exception applies to all items designed for and peculiar to
nuclear ordnance regardless of agency control, or to any item which
requires test or inspection conducted or controlled by DoE or DoD.
(2) This exception does not cover items used for both nuclear
ordnance and other purposes if the items are not subject to the special
testing procedures.
(h) Items to be acquired under FAR 6.302-6 (national security
requires limitation of sources);
(i) Items to be acquired under FAR 6.302-1 (supplies available only
from the original source for follow-on contract);
(j) Items directly related to a major system and which are design
controlled by and acquired from either the system manufacturer or a
manufacturer of a major subsystem;
(k) Items subject to rapid design changes, or to continuous redesign
or modification during the production and/or operational use phases,
which require continual contact between industry and the requiring
department to ensure that the item meets the requirements:
(1) This exception permits the requiring department to contract for
items of highly unstable design. For use of this exception, it must be
clearly impractical, both technically and contractually, to refer the
acquisition to the acquiring department. Anticipation that contracting
by negotiation will be appropriate, or that a number of design changes
may occur during contract performance is not in itself sufficient reason
for using this exception.
(2) This exception also applies to items requiring compatibility
testing, provided such testing requires continual contact between
industry and the requiring department;
(l) Containers acquired only with items for which they are designed;
(m) One-time buy of a noncataloged item.
(1) This exception permits the requiring departments to contract for
a nonrecurring requirement for a noncataloged item. This exception could
cover a part or component for a prototype which may be stock numbered at
a later date.
(2) This exception does not permit acquisitions of recurring
requirements for an item, based solely on the fact that the item is not
stock numbered, nor may it be used to acquire items which have only
slightly different
[[Page 54]]
characteristics than previously cataloged items.
[56 FR 36306, July 31, 1991, as amended at 60 FR 61593, Nov. 30, 1995]
208.7004 Procedures.
Sec. 208.7004-1 Purchase authorization from requiring department.
(a) Requiring departments send their requirements to acquiring
departments on either a DD Form 448, Military Interdepartmental Purchase
Request (MIPR), or a DD Form 416, Requisition for Coal, Coke or
Briquettes. A MIPR or a DD Form 416 is the acquiring department's
authority to acquire the supplies or services on behalf of the requiring
department.
(b) The acquiring department is authorized to create obligations
against the funds cited in a MIPR without further referral to the
requiring department. The acquiring department has no responsibility to
determine the validity of a stated requirement in an approved MIPR, but
it should bring apparent errors in the requirement to the attention of
the requiring department.
(c) Changes that affect the contents of the MIPR must be processed
as a MIPR amendment regardless of the status of the MIPR. The requiring
department may initially transmit changes electronically or by some
other expedited means, but must confirm changes by a MIPR amendment.
(d) The requiring department must submit requirements for additional
line items of supplies or services not provided for in the original MIPR
as a new MIPR. The requiring department may use a MIPR amendment for
increased quantities only if--
(1) The original MIPR requirements have not been released for
solicitation; and
(2) The acquiring department agrees.
Sec. 208.7004-2 Acceptance by acquiring department.
(a) Acquiring departments formally accept a MIPR by DD Form 448-2,
Acceptance of MIPR, as soon as practicable, but no later than 30 days
after receipt of the MIPR. If the 30 day time limit cannot be met, the
acquiring department must inform the requiring department of the reason
for the delay, and the anticipated date the MIPR will be accepted. The
acquiring department must accept MIPRs in writing before expiration of
the funds.
(b) The acquiring department in accepting a MIPR will determine
whether to use Category I (reimbursable funds citation) or Category II
(direct funds citation) methods of funding.
(1) Category I method of funding is used under the following
circumstances and results in citing the funds of the acquiring
department in the contract--
(i) Delivery is from existing inventories of the acquiring
department;
(ii) Delivery is by diversion from existing contracts of the
acquiring department;
(iii) Production or assembly is through Government work orders in
Government-owned plants;
(iv) Production quantities are allocated among users from one or
more contracts, and the identification of specific quantities of the end
item to individual contracts is not feasible at the time of MIPR
acceptance;
(v) Acquisition of the end items involves separate acquisition of
components to be assembled by the acquiring department;
(vi) Payments will be made without reference to deliveries of end
items (e.g., cost-reimbursement type contracts and fixed price contracts
with progress payment clauses); or
(vii) Category II method of funding is not feasible and economical.
(2) Category II method of funding is used in circumstances other
than those in paragraph (b)(1) of this subsection. Category II funding
results in citation of the requiring department's funds and MIPR number
in the resultant contract.
(c) When the acquiring departments accepts a MIPR for Category I
funding--
(1) The DD Form 448-2, Acceptance of MIPR, is the authority for the
requiring department to record the obligation of funds;
(2) The acquiring department will annotate the DD Form 448-2 if
contingencies, price revisions, or variations in quantities are
anticipated. The acquiring department will periodically advise the
requiring department, prior to submission of billings, of any
[[Page 55]]
changes in the acceptance figure so that the requiring department may
issue an amendment to the MIPR, and the recorded obligation may be
adjusted to reflect the current price;
(3) If the acquiring department does not qualify the acceptance of a
MIPR for anticipated contingencies, the price on the acceptance will be
final and will be billed at time of delivery;
(4) Upon receipt of the final billing (SF 1080, Voucher for
Transferring Funds), the requiring department may adjust the fiscal
records accordingly without authorization from or notice to the
acquiring department.
(d) When the MIPR is accepted for Category II funding, a conformed
copy of the contract (see 204.802(1)(ii)) is the authority to record the
obligation. When all awards have been placed to satisfy the total MIPR
requirement, any unused funds remaining on the MIPR become excess to the
acquiring department. The acquiring department will immediately notify
the requiring department of the excess funds by submitting an Acceptance
of MIPR (DD Form 448-2). This amendment is authorization for the
requiring department to withdraw the funds. The acquiring department is
prohibited from further use of such excess funds.
(e) When the acquiring department requires additional funds to
complete the contracting action for the requiring department, the
request for additional funds must identify the exact items involved, and
the reason why additional funds are required. The requiring department
shall act quickly to--
(1) Provide the funds by an amendment of the MIPR; or
(2) Reduce the requirements.
(f) The accepting activity of the acquiring department shall remain
responsible for the MIPR even though that activity may split the MIPR
into segments for action by other contracting activities.
Sec. 208.7004-3 Use of advance MIPRs.
(a) An advance MIPR is an unfunded MIPR provided to the acquiring
department in advance of the funded MIPR so that initial steps in
planning the contract action can begin at an earlier date.
(b) In order to use an advance MIPR, the acquiring department and
the requiring department must agree that its use will be beneficial. The
departments may execute a blanket agreement to use advance MIPRs.
(c) The requiring department shall not release an advance MIPR to
the acquiring department without obtaining proper internal approval of
the requirement.
(d) When advance MIPRs are used, mark ``ADVANCE MIPR'' prominently
on the DD Form 448.
(e) For urgent requirements, the advance MIPR may be transmitted
electronically.
(f) On the basis of an advance MIPR, the acquiring department may
take the initial steps toward awarding a contract, such as obtaining
internal coordination and preparing an acquisition plan. Acquiring
departments may determine the extent of these initial actions but shall
not award contracts on the basis of advance MIPRs.
Sec. 208.7004-4 Cutoff dates for submission of Category II MIPRs.
(a) Unless otherwise agreed between the departments, May 31 is the
cutoff date for the receipt of MIPRs citing expiring appropriations
which must be obligated by September 30 of that fiscal year. If
circumstances arise which require the submission of MIPRs citing
expiring appropriations after the cutoff date, the requiring department
will communicate with the acquiring department before submission to find
out whether the acquiring department can execute a contract or otherwise
obligate the funds by the end of the fiscal year. Acquiring departments
will make every effort to obligate funds for all such MIPRs accepted
after the cutoff date. However, acceptance of a late MIPR does not
constitute assurance by the acquiring department that all such funds
will be obligated.
(b) Nothing in these instructions is intended to restrict the
processing of MIPRs when the acquiring department is capable of
executing contracts or otherwise obligating funds before the end of the
fiscal year.
(c) The May 31 cutoff date does not apply to MIPRs citing continuing
appropriations.
[[Page 56]]
Sec. 208.7004-5 Notification of inability to obligate on Category II MIPRs.
On August 1, the acquiring department will advise the requiring
department of any Category II MIPRs on hand citing expiring
appropriations they will be unable to obligate prior to the fund
expiration date. If an unforeseen situation develops after August 1
which will prevent execution of a contract, the acquiring department
will notify the requiring department as quickly as possible and return
the MIPR. The letter of transmittal returning the MIPR will authorize
purchase by the requiring department and state the reason that the
acquisition could not be accomplished.
Sec. 208.7004-6 Cancellation of requirements.
(a) Category I MIPRs. The requiring department will notify the
acquiring department by electronic or other immediate means when
cancelling all or part of the supplies or services requested in the
MIPR. Within 30 days, the acquiring department will notify the requiring
department of the quantity of items available for termination and the
amount of funds in excess of the estimated settlement costs. Upon
receipt of this information, the requiring department will issue a MIPR
amendment to reduce the quantities and funds accordingly.
(b) Category II MIPRs. The requiring department will notify the
acquiring department electronically or by other immediate means when
cancelling all or any part of the supplies or services requested in the
MIPR.
(1) If the acquiring department has not entered into a contract for
the supplies or services to be cancelled, the acquiring department will
immediately notify the requiring department. Upon receipt of such
notification, the requiring department shall initiate a MIPR amendment
to revoke the estimated amount shown on the original MIPR for the
cancelled items.
(2) If the items to be cancelled have already been placed under
contract--
(i) As soon as practicable, but in no event more than 45 days after
receipt of the cancellation notice from the requiring department, the
contracting officer shall issue a termination data letter to the
requiring department (original and four copies) containing, as a
minimum, the information in Table 8-1, Termination Data Letter.
(ii) The termination contracting officer (TCO) will review the
proceedings at least every 60 days to reassess the Government's probable
obligation. If any additional funds are excess to the probable
settlement requirements, or if it appears that previous release of
excess funds will result in a shortage of the amount which will be
required for settlement, the TCO will promptly notify the contracting
office which will amend the termination data letter. The requiring
department will process a MIPR amendment to reflect the reinstatement of
funds within 30 days after receiving the amended termination data
letter.
(iii) Upon receipt of a copy of the termination settlement
agreement, the requiring department will prepare a MIPR amendment, if
required, to remove any remaining excess funds.
Table 8-1, Termination Data Letter
SUBJECT: Termination Data Re:
Contract No. ____________
Termination No. ____________
Contract ____________
(a) As termination action is now in progress on the above contract,
the following information is submitted:
(1) Brief Description of items terminated.
(2) You are notified that the sum of $________ is available for
release under the subject contract. This sum represents the difference
between $________, the value of items terminated under the contract,
and $________, estimated to be required for settlement of the
terminated contract. The estimated amount available for release is
allocated by the appropriations cited on the contract as follows:
MIPR NO. ________ ACCOUNTING CLASSIFICATION ________ AMOUNT ________
Total available for release at this time $________
(b) Request you forward an amendment to MIPR ________ on DD Form 448-2
to reflect the reduced quantity and amount of funds available for
release.
(c) Periodic reviews (not less than 60 days) will be made as
termination proceedings progress to redetermine the Government's
probable obligation.
________________________________________
Contracting Officer
------------------------------------------------------------------------
[[Page 57]]
Sec. 208.7004-7 Termination for default.
(a) When the acquiring department terminates a contract for default,
they will ask the requiring department if the supplies or services to be
terminated are still required so that repurchase action can be started.
(b) The requiring department will not deobligate funds on a contract
terminated for default until receipt of a settlement modification or
other written evidence from the acquiring department authorizing release
of funds.
(c) On the repurchase action, the acquiring department will not
exceed the unliquidated funds on the defaulted contract without
receiving additional funds from the requiring department.
Sec. 208.7004-8 Transportation funding.
The requiring department will advise the acquiring department or the
transportation officer in the contract administration office of the fund
account to be charged for transportation costs. The requiring department
may cite the fund account on each MIPR or provide the funding cite to
the transportation officer at the beginning of each fiscal year for use
on Government bills of lading. When issuing a Government bill of lading,
show the requiring department as the department to be billed and cite
the appropriate fund account.
Sec. 208.7004-9 Status reporting.
(a) The acquiring department will maintain a system of MIPR follow
up to inform the requiring department of the current status of its
requests. In addition, the contract administration office will maintain
a system of follow up in order to advise the acquiring department on
contract performance.
(b) If requested by the requiring department, the acquiring
department will furnish the requiring department a copy of the
solicitation when the MIPR is satisfied through Category II funding.
(c) Any reimbursement billings, shipping document, contractual
documents, project orders, or related documentation furnished to the
requiring department will identify the requiring department's MIPR
number, quantities of items, and funding information.
Sec. 208.7004-10 Administrative costs.
The acquiring department bears the administrative costs of acquiring
supplies for the requiring department. However, when an acquisition
responsibility is transferred to another department, funds appropriated
or to be appropriated for administrative costs will transfer to the
successor acquiring department. The new acquiring department must assume
budget cognizance as soon as possible.
Sec. 208.7005 MIPRs.
Instructions on preparation and use of DD Form 448, Military
Interdepartmental Purchase Request, and DD Form 448-2, Acceptance of
MIPR, are in 253.208.
Sec. 208.7006 Coordinated acquisition assignments.
See appendix B for coordinated acquisition assignments.
Subpart 208.71--Acquisition for National Aeronautics and Space
Administration (NASA)
Sec. 208.7100 Authorization.
NASA is authorized by Public Law 85-568 to use the acquisition
services, personnel, equipment, and facilities of DoD departments and
agencies with their consent, with or without reimbursement, and on a
similar basis to cooperate with the departments/agencies in the use of
acquisition services, equipment, and facilities.
Sec. 208.7101 Policy.
Departments and agencies will--
(a) Cooperate fully with NASA in making acquisition services,
equipment, personnel, and facilities available on the basis of mutual
agreement.
(b) Not claim reimbursement for administrative costs incident to
acquisitions for NASA, unless agreed otherwise prior to the time
services are performed.
Sec. 208.7102 Procedures.
(a) When contracting or performing field service functions for NASA,
the departments and agencies will use
[[Page 58]]
their own methods, except when otherwise required by the terms of the
agreement.
(b) Departments and agencies normally will use their own funds when
contracting for or performing services for NASA and will not cite NASA
funds on any defense obligation or payment document.
Sec. 208.7103 Purchase request and acceptance.
(a) NASA will use NASA Form 523, NASA-Defense Purchase Request, to
request acquisition of supplies or services.
(b) Except as provided in paragraph (d) of this section, departments
and agencies will respond within 30 days to a NASA purchase request by
forwarding DD Form 448-2, Acceptance of MIPR. Forward each DD Form 448-2
in quadruplicate and indicate action status as well as the name and
address of the DoD acquisition activity for future use by the NASA
initiator.
(c) To the extent feasible, all documents related to the NASA action
will reference the NASA-Defense Purchase Request number and the item
number when appropriate.
(d) Departments and agencies are not required to accept NASA-Defense
Purchase Requests for common-use standard stock items which the
supplying department has on hand or on order for prompt delivery at
published prices.
Sec. 208.7104 Changes in estimated total prices.
When a department or agency determines that the estimated total
price (Block 6F, NASA Form 523) for NASA items is not sufficient to
cover the required reimbursement, or is in excess of the amount
required, the department/agency will forward a request for amendment to
the NASA originating office. Indicate in the request a specific dollar
amount, rather than a percentage, and include justification for any
upward adjustment requested. Upon approval of a request, NASA will
forward an amendment of its purchase request to the contracting
activity.
Sec. 208.7105 Payments.
Departments and agencies will submit SF 1080, Voucher for
Transferring Funds, billings to the NASA office designated in Block 9 of
the NASA-Defense Purchase Request, except where agreements provide that
reimbursement is not required. Departments and agencies will support
billings in the same manner as billings between departments and
agencies.
Subpart 208.72--Industrial Preparedness Production Planning
Sec. 208.7201 Definitions.
As used in this subpart--
Industrial base means that part of the total privately-owned and
Government-owned industrial production and maintenance capacity of the
United States and Canada, which will be available during national
emergencies to manufacture and repair items required by the departments.
Industrial preparedness production planning means planning designed
to maintain an adequate industrial base to support DoD requirements for
selected essential military items in a national emergency.
National emergency means a condition declared by the President or
the Congress which authorizes certain emergency action in the national
interest, including partial or total mobilization of national resources.
Planned item means any item selected for industrial preparedness
planning under the criteria of DoDI 4005.3, Industrial Preparedness
Planning.
Planned producer means an industrial firm which has agreed by either
non-binding memorandum of understanding or binding contract/contract
clause to provide production capacity data, to maintain existing
capacity for a negotiated period of time, and to accept contracts for
planned items upon the request of the Government.
Sec. 208.7202 General.
(a) Under the Industrial Preparedness Production Planning (IPPP)
program, DoD components and industry work together to ensure essential
military items are available during an emergency.
(b) Departments and agencies select weapon systems and items for
planning in accordance with DoDI 4005.3, Industrial Preparedness
Planning. Planning
[[Page 59]]
is conducted only with U.S. or Canadian sources.
(c) The use of privately-owned facilities is preferred to minimize
the need for Government investment. Departments and agencies will
include Government-owned production facilities in the industrial base
only when--
(1) Private industry is unable to provide the facilities necessary
to support DoD requirements; or
(2) The facilities are necessary--
(i) For reasons of national security; or
(ii) To ensure a quick response capability to meet fluctuating
demands.
Sec. 208.7203 Authority.
Authority under current contracting procedures to accomplish
industrial planning actions includes--
(a) Leasing of Government-owned property to planned emergency
producers under the authority of the Military Leasing Act of 1947, 10
U.S.C. 2667;
(b) Acquisitions in the interest of national defense under FAR
6.202(a)(2), or in case of a national emergency or to achieve industrial
mobilization under FAR 6.302-3;
(c) Acquisition under 225.71 of--
(1) Miniature and instrument bearings;
(2) Precision components for mechanical time devices;
(3) High-purity silicon;
(4) High-carbon ferrochrome;
(5) Anti-friction bearings; and
(6) Forgings and welded shipboard anchor chain;
(d) Acquisition of jewel bearings (FAR 8.2);
(e) Use of multiyear contracting (FAR 17.1);
(f) Providing Government production and research property to
contractors; and
(g) Use of direct payment for idle facilities or idle capacities
reserved for defense mobilization production (FAR 31.205-17(d)).
[56 FR 36306, July 31, 1991, as amended at 57 FR 42629, Sept. 15, 1992]
Sec. 208.7204 Procedures.
(a) Planned producers shall be solicited for all acquisitions of
their planned items, when the acquisition is over the small purchase
threshold in FAR 13.000, except as provided in FAR or DFARS.
(b) The contracting officer may contract for industrial planning
efforts for selected essential military items. These efforts may
include, but are not limited to, the maintenance of Government-owned
industrial facilities (real and personal property) or production data
packages. These planning efforts may be acquired through an individual
service contract or as a line item on a contract for a planned item.
Subpart 208.73--Use of Government-Owned Precious Metals
Sec. 208.7301 Definitions.
As used in this subpart--
Defense Industrial Supply Center (DISC) means the Defense Logistics
Agency field activity located at 700 Robbins Avenue, Philadelphia, PA
19111-5096, which is the assigned commodity integrated material manager
for refined precious metals and is responsible for the storage and issue
of such material.
Dual pricing evaluation procedure means a procedure where offerors
submit two prices for precious metals bearing items--one based on
Government-furnished precious metals and one based on contractor-
furnished precious metals. The contracting officer evaluates the prices
to determine which is in the Government's best interest.
Precious Metals Indicator Code (PMIC) means a single digit, alpha-
numeric code assigned to national stock numbered items in The Defense
Integrated Data System Total Item Record used to indicate the presence
or absence of precious metals in the item. PMICs and the content value
of corresponding items are listed in DoDD 4100.39M, Defense Integrated
Data System (DIDS) Procedures Manual, chapter 10, Table 160.
Refined precious metal means recovered silver, gold, platinum,
palladium, iridium, rhodium, or ruthenium, in bullion, granulation or
sponge form, which has been purified to at least .999 percentage of
fineness.
[[Page 60]]
Sec. 208.7302 Policy.
DoD policy is for maximum participation in the Precious Metals
Recovery Program (PMRP). DoD components shall furnish recovered precious
metals contained in the DISC inventory to production contractors rather
than use contractor-furnished precious metals whenever the contracting
officer determines it to be in the Government's best interest. (See DoDD
4160.22, Recovery and Utilization of Precious Metals.)
Sec. 208.7303 Procedures.
(a) Item managers and contracting officers will use the PMIC and/or
other relevant data furnished with a purchase request to determine the
applicability of this subpart.
(b) When an offeror advises of a precious metals requirement, the
contracting officer shall use the procedures in chapter X of DoD
4160.21-M, Defense Utilization and Disposal Manual, to determine
availability of required precious metal assets and current government-
furnished materiel (GFM) unit prices. If the precious metals are
available, the contracting officer shall evaluate offers and award the
contract on the basis of the offer which is in the best interest of the
Government.
(c) When the clause prescribed by 208.7305 is included in a
solicitation, the contracting officer will ensure that section B,
Schedule of Supplies or Services and Prices, is structured to--
(1) Permit insertion of alternate prices for each deliverable
contract line item number that uses precious metals; and
(2) Use dual pricing evaluation procedures.
Sec. 208.7304 Refined precious metals.
The following refined precious metals are currently managed by DISC:
------------------------------------------------------------------------
National Stock No.
Precious metal (NSN)
------------------------------------------------------------------------
Silver Bullion/Granules............................. 9660-00-106-9432
Gold Bullion/Granules............................... 9660-00-042-7733
Platinum Granules................................... 9660-00-042-7768
Platinum Sponge..................................... 9660-00-151-4050
Palladium Granules.................................. 9660-00-042-7765
Palladium Sponge.................................... 9660-01-011-0320
Rhodium Sponge...................................... 9660-01-011-2625
Iridium Sponge...................................... 9660-01-011-1937
Ruthenium Sponge.................................... 9660-01-039-0313
------------------------------------------------------------------------
Sec. 208.7305 Contract clause.
(a) Use the clause at 252.208-7000, Intent to Furnish Precious
Metals as Government-Furnished Material, in all solicitations and
contracts except--
(1) When the contracting officer has determined that the required
precious metals are not available from DISC;
(2) When the contracting officer knows that the items being acquired
do not require precious metals in their manufacture; or
(3) For acquisitions below the small purchase threshold in FAR
13.000.
(b) To make the determination in paragraph (a)(1) of this section,
the contracting officer shall consult with the end item inventory
manager and comply with the procedures in Chapter X, DoD 4160.21-M,
Defense Utilization and Disposal Manual.
PART 209--CONTRACTOR QUALIFICATIONS--Table of Contents
Sec.
Subpart 209.1--Responsible Prospective Contractors
209.101 Definitions.
209.103 Policy.
209.103-70 Contract clause.
209.104 Standards.
209.104-1 General standards.
209.104-4 Subcontractor responsibility.
209.104-70 Solicitation provisions and contract clause.
209.106 Preaward surveys.
209.106-1 Conditions for preaward surveys.
209.106-2 Requests for preaward surveys.
Subpart 209.2--Qualifications Requirements
209.202 Policy.
Subpart 209.3--First Article Testing and Approval
209.303 Use.
209.305 Risk.
209.306 Solicitation requirements.
209.308 Contract clauses.
Subpart 209.4--Debarment, Suspension, and Ineligibility
209.402 Policy.
209.403 Definitions.
209.405 Effect of listing.
209.405-1 Continuation of current contracts.
209.406 Debarment.
[[Page 61]]
209.406-1 General.
209.406-2 Causes for debarment.
209.406-3 Procedures.
209.470 Military recruiting on campus.
209.470-1 Policy.
209.470-2 Procedures.
209.470-3 Contract clause.
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
Source: 56 FR 36313, July 31, 1991, unless otherwise noted.
Subpart 209.1--Responsible Prospective Contractors
Sec. 209.101 Definitions.
``Entity controlled by a foreign government,'' ``foreign
government,'' and ``proscribed information,'' are defined in the
provision at 252.209-7002, Disclosure of Ownership or Control by a
Foreign Government.
[59 FR 51132, Oct. 7, 1994]
Sec. 209.103 Policy.
(a)(i) Do not deny award to contractors subject to on-site
inspection under the Intermediate-Range Nuclear Forces (INF) Treaty, or
similar treaty, due to the actual or potential presence of Soviet
inspectors at the contractor's facility unless--
(A) Necessary for reasons of national security;
(B) The decision is based on full information, including comment
from the potential contractor or subcontractor on the security issues
involved; and
(C) The department or agency acquisition executive reviews the
decision and the Under Secretary of Defense (Acquisition & Technology)
approves the decision.
(ii) Make any decision to deny consideration for award under
paragraph (a)(i) of this section as early as possible in the acquisition
process. Notify the firm in writing of any decision not to consider the
firm for award of a contract or subcontract.
(c) The additional cost of contract administration and audit due to
a contractor's performance risk may be considered in evaluating the
contractor's price.
[56 FR 36313, July 31, 1991, as amended at 60 FR 29497, June 5, 1995; 61
FR 50452, Sept. 26, 1996]
Sec. 209.103-70 Contract clause.
Use the clause at 252.209-7000, Acquisition from Subcontractors
Subject to On-Site Inspection Under the Intermediate-Range Nuclear
Forces (INF) Treaty, in all solicitations and contracts exceeding the
simplified acquisition threshold, except solicitations and contracts for
commercial items.
[60 FR 61593, Nov. 30, 1995, as amended at 61 FR 50452, Sept. 26, 1996]
209.104 Standards.
Sec. 209.104-1 General standards.
(e) For cost-reimbursement or incentive type contracts, or contracts
which provide for progress payments based on costs or on a percentage or
stage of completion, the prospective contractor's accounting system and
related internal controls must provide reasonable assurance that--
(i) Applicable laws and regulations are complied with;
(ii) The accounting system and cost data are reliable;
(iii) Risk of misallocations and mischarges are minimized; and
(iv) Contract allocations and charges are consistent with invoice
procedures.
(g)(i) Ownership or control by the government of a terrorist
country. (A) Under 10 U.S.C. 2327(b), a contracting officer shall not
award a contract to a firm or to a subsidiary of a firm when a foreign
government--
(1) Either directly or indirectly, has a significant interest--
(i) In the firm; or
(ii) In the subsidiary; and
(2) Has been determined by the Secretary of State under 50 U.S.C.
App. 2405(j)(1)(A) to be a government of a country that has repeatedly
provided support for acts of international terrorism.
(B) The Secretary of Defense may waive the prohibition in paragraph
(g)(i)(A) of this subsection in accordance with 10 U.S.C. 2327(c). This
waiver authority may not be delegated.
(ii) Ownership or control by a foreign government when access to
proscribed information is required to perform the contract. (A) Under 10
U.S.C. 2536(a), no DoD contract under a national security program may be
awarded to an entity controlled by a foreign government if
[[Page 62]]
that entity requires access to proscribed information to perform the
contract.
(B) Whenever the contracting officer has a question about
application of the provision at 252.209-7002, the contracting officer
may seek advice from the Director, Defense Security Programs, Office of
the Assistant Secretary of Defense for Command, Control, Communications
and Intelligence.
(C) In accordance with 10 U.S.C. 2536(b), the Secretary of Defense
may waive the prohibition in subparagraph (g)(ii)(A) of this subsection
upon determining that the waiver is essential to the national security
interests of the United States. The Secretary has delegated authority to
grant this waiver to the Assistant Secretary of Defense Command,
Control, Communications and Intelligence. Waiver requests, prepared by
the requiring activity in coordination with the contracting officer,
shall be processed through the Director of Defense Procurement, Office
of the Under Secretary of Defense (Acquisition & Technology), and shall
include a proposed national interest determination. The proposed
national interest determination, prepared by the requiring activity in
coordination with the contracting officer, shall include:
(1) Identification of the proposed awardee, with a synopsis of its
foreign ownership (include solicitation and other reference numbers to
identify the action);
(2) General description of the acquisition and performance
requirements;
(3) Identification of the national security interests involved and
the ways award of the contract helps advance those interests;
(4) The availability of another entity with the capacity, capability
and technical expertise to satisfy defense acquisition, technology base,
or industrial base requirements; and
(5) A description of any alternate means available to satisfy the
requirement, e.g., use of substitute products or technology or alternate
approaches to accomplish the program objectives.
(iii) Commercial transactions with the government of a terrorist
country. (A) In accordance with section 843 of the National Defense
Authorization Act for Fiscal Year 1994 (Public Law 103-160)--
(1) Each offeror submitting an offer exceeding $5,000,000 must
disclose each commercial transaction that it has conducted with the
government of a terrorist country since February 28, 1994; and
(2) For each contract exceeding $5,000,000, the contractor must
annually report each commercial transaction that it conducts during the
course of the contract (but not beyond September 30, 1996) with the
government of a terrorist country.
(B) Upon award of a contract exceeding $5,000,000 to an offeror
disclosing that it has conducted commercial transactions with the
government of a terrorist country, the contracting officer shall--
(1) Forward a copy of the offeror's disclosure to the Deputy
Director of Defense Procurement (Foreign Contracting); and
(2) Include with the disclosure the following information:
(i) Offeror's name and address;
(ii) Contracting officer's name and telephone number; and
(iii) Contract number and award date.
[58 FR 28464, May 13, 1993, as amended at 59 FR 51131, 51132, Oct. 7,
1994; 60 FR 29497, June 5, 1995]
Sec. 209.104-4 Subcontractor responsibility.
Generally, the Canadian Commercial Corporation's (CCC) proposal of a
firm as its subcontractor is sufficient basis for an affirmative
determination of responsibility. However, when the CCC determination of
responsibility is not consistent with other information available to the
contracting officer, the contracting officer shall request from CCC and
any other sources whatever additional information is necessary to make
the responsibility determination.
Sec. 209.104-70 Solicitation provisions and contract clause.
(a) Use the provision at 252.209-7001, Disclosure of Ownership or
Control by the Government of a Terrorist Country, in all solicitations
expected to result in contracts of $100,000 or more.
(b) Use the provision at 252.209-7002, Disclosure of Ownership or
Control by
[[Page 63]]
a Foreign Government, in all solicitations, including those subject to
the procedures in FAR part 13, when access to proscribed information is
necessary to perform a DoD contract under a national security program.
(c) Use the provision at 252.209-7003, Disclosure of Commercial
Transactions with the Government of a Terrorist Country, in all
solicitations expected to result in contracts exceeding $5,000,000.
(d) Use the clause at 252.209-7004, Reporting of Commercial
Transactions with the Government of a Terrorist Country, in all
solicitations that include the provision at 252.209-7003, and in all
contracts exceeding $5,000,000.
[58 FR 28464, May 13, 1993, as amended at 59 FR 51131, Oct. 7, 1994]
209.106 Preaward surveys.
Sec. 209.106-1 Conditions for preaward surveys.
(a) If a preaward survey is requested, include the rationale in
block 23 of the SF 1403, Preaward Survey of Prospective Contractor
(General).
[60 FR 61593, Nov. 30, 1995]
Sec. 209.106-2 Requests for preaward surveys.
(1) The surveying activity is the cognizant contract administration
office as listed in DLAH 4105.4, DoD Directory of Contract
Administration Services Components. When information is required as part
of the survey on the adequacy of the contractor's accounting system or
its suitability for administration of the proposed type of contract, the
surveying activity will obtain the information from the auditor.
(2) Limited information may be requested by telephone.
(3) The contracting officer may request a formal survey by telephone
but must confirm immediately with SF 1403, Preaward Survey of
Prospective Contractor (General). For a formal survey, send original and
three copies of SF 1403, including necessary drawings and
specifications.
(a) List additional factors in item H, section III of the SF 1403
and explain them in block 23. For example--
(i) Information needed to determine a prospective contractor's
eligibility under the Walsh-Healey Public Contracts Act. (Note that the
Walsh-Healey Public Contracts Act, block 12 of section I, only indicates
what the contractor has represented its classification to be under
Walsh-Healey.)
(ii) Evaluation of a contractor as a planned producer when the
offered item is or may appear on the Industrial Preparedness Planning
List (IPPL). When the preaward survey results in a recommendation for
award, ask the office responsible for industrial preparedness planning
to consider designating the prospective contractor as a planned
producer. If the item is already on the IPPL or the prospective
contractor is already a planned producer, note the information in block
23.
(iii) Evaluation of the prospective contractor's performance against
small business subcontracting plans.
(c) On base level preaward surveys, technical personnel from the
requiring installation should participate when there is concern about
the ability of a prospective contractor to perform a base level service
or construction contract.
(d) Allow more time for--
(i) Complex items;
(ii) New or inexperienced DoD contractors; and
(iii) Surveys with time-consuming requirements, e.g., secondary
survey, accounting system review, financial capability analysis, or
purchasing office participation.
(e) Only request those factors essential to the determination of
responsibility. See 253.209-1(a) for an explanation of the factors in
section III, blocks 19 and 20 of the SF 1403.
[56 FR 36313, July 31, 1991, as amended at 58 FR 28464, May 13, 1993]
Subpart 209.2--Qualifications Requirements
Sec. 209.202 Policy.
(a)(1) The inclusion of qualification requirements in specifications
for products which are to be included on a Qualified Products List, or
manufactured by business firms included on a Qualified Manufacturers
List, requires approval by the departmental standardization office in
accordance with
[[Page 64]]
DoD Manual 4120.3-M, Defense Standardization Program Policies and
Procedures. The inclusion of other qualification requirements in an
acquisition or group of acquisitions requires approval by the chief of
the contracting office.
[60 FR 61593, Nov. 30, 1995]
Subpart 209.3--First Article Testing and Approval
Sec. 209.303 Use.
(d) The contracting officer may require that first articles be
manufactured using the same facilities, production processes, methods,
and materials to be used for production units under the contract.
Sec. 209.305 Risk.
The contracting officer may give this authorization to a contractor
only after approval by a level higher than the contracting officer.
Sec. 209.306 Solicitation requirements.
(a)(1) To be sure that the contractor and the Government clearly
understand and interpret contract terms and conditions in the same
manner, avoid describing first article requirements exclusively in
general terms such as ``visual,'' ``dimensional,'' ``workmanship,'' or
``specification compliance.''
Sec. 209.308 Contract clauses.
Alternate I of the clauses at FAR 52.209-3, First Article Approval--
Contractor Testing, or 52.209-4, First Article Approval--Government
Testing, as appropriate, may be used when--
(1) The form, fit, or function of the product would be adversely
affected by contractor changes in the production facilities, processes,
methods, or materials subsequent to first article approval; and
(2) The Government has relied upon first article testing in the
absence of complete design specifications to supplement a performance
specification; or
(3) It is essential to have an approved first article to serve as a
manufacturing standard.
Subpart 209.4--Debarment, Suspension, and Ineligibility
Sec. 209.402 Policy.
(d) The uniform suspension and debarment procedures to be followed
by all debarring and suspending officials are set out in appendix H to
this chapter.
(e) The department or agency shall provide a copy of the Debarment
and Suspension Procedures at DFARS appendix H to this chapter to
contractors at the time of their suspension or when they are proposed
for debarment, and upon request to other interested parties.
[59 FR 27668, May 27, 1994]
Sec. 209.403 Definitions.
Debarring official. (1) For DoD, the designees are--
Army--Commander, U.S. Army Legal Services Agency
Navy--the General Counsel of the Department of the Navy
Air Force--Deputy General Counsel (Contractor Responsibility)
Defense Advanced Research Projects Agency--The Director
Defense Information Systems Agency--The General Counsel
Defense Logistics Agency--The Special Assistant for Contracting
Integrity
Defense Mapping Agency--The General Counsel
Defense Special Weapons Agency--The Director
National Security Agency--The Director
Ballistic Missile Defense Organization--The General Counsel
Overseas installations--as designated by the agency head
(2) Overseas debarring officials--
(i) Are authorized to debar or suspend contractors located within
the official's geographic area of responsibility under any delegation of
authority they receive from their agency head.
(ii) Debar or suspend in accordance with the procedures in FAR
subpart 9.4 or under modified procedures approved by the agency head
based on consideration of the laws or customs of the foreign countries
concerned.
(iii) In addition to the bases for debarment in FAR 9.406-2, may
consider the following additional bases--
[[Page 65]]
(A) The foreign country concerned determines that a contractor has
engaged in bid-rigging, price-fixing, or other anti-competitive
behavior; or
(B) The foreign country concerned declares the contractor to be
formally debarred, suspended, or otherwise ineligible to contract with
that foreign government or its instrumentalities.
[56 FR 36313, July 31, 1991, as amended at 56 FR 67212, Dec. 30, 1991;
59 FR 27669, May 27, 1994; 60 FR 61593, Nov. 30, 1995; 61 FR 50452,
Sept. 26, 1996]
Sec. 209.405 Effect of listing.
Under 10 U.S.C. 2393b, when a department or agency determines that a
compelling reason exists for it to conduct business with a contractor
that is on the list of parties excluded from procurement programs, it
shall provide written notice of the determination to the General
Services Administration, Office of Acquisition Policy. Examples of
compelling reasons are--
(1) Only a listed contractor can provide the supplies or services;
(2) Urgency requires contracting with a listed contractor;
(3) The contractor and a department or agency have an agreement
covering the same events which resulted in the listing and the agreement
includes the department/agency decision not to debar or suspend the
contractor; or
(4) The national defense requires continued business dealings with
the listed contractor.
Sec. 209.405-1 Continuation of current contracts.
(b) Unless the agency head makes a written determination that a
compelling reason exists to do so, ordering activities shall not--
(i) Place orders exceeding the guaranteed minimum under indefinite
quantity contracts: or
(ii) When the agency is an optional user, place orders against
Federal Supply Schedule contracts.
(c) This includes exercise of options.
[60 FR 29497, June 5, 1995, as amended at 60 FR 61593, Nov. 30, 1995]
209.406 Debarment.
Sec. 209.406-1 General.
(a)(i) When the debarring official decides that debarment is not
necessary, the official may require the contractor to enter into a
written agreement which includes--
(A) A requirement for the contractor to establish, if not already
established, and to maintain the standards of conduct and internal
control systems prescribed by subpart 203.70; and
(B) Other requirements the debarring official considers appropriate.
(ii) Before the debarring official decides not to suspend or debar
in the case of an indictment or conviction for a felony, the debarring
official must determine that the contractor has addressed adequately the
circumstances that gave rise to the misconduct, and that appropriate
standards of ethics and integrity are in place and are working.
[57 FR 14992, Apr. 23, 1992]
Sec. 209.406-2 Causes for debarment.
(a) Any person shall be considered for debarment if criminally
convicted of intentionally affixing a label bearing a ``Made in
America'' inscription to any product sold in or shipped to the United
States that was not made in America (10 U.S.C. 2410f).
(i) The debarring official will make a determination concerning
debarment not later than 90 days after determining that a person has
been so convicted.
(ii) In cases where the debarring official decides not to debar, the
debarring official will report that decision to the Director of Defense
Procurement who will notify Congress within 30 days after the decision
is made.
[58 FR 28464, May 13, 1993]
Sec. 209.406-3 Procedures.
(a) Investigation and referral. (i) The contracting officer shall
prepare a report containing the information required by paragraph
(a)(ii) of this subsection when--
(A) A contractor has committed, or is suspected of having committed,
any of
[[Page 66]]
the acts described in FAR 9.406-2 and 9.407-2;
(B) FAR 49.106 requires a report;
(C) Part 203 requires a report;
(D) The Government suspects a contractor of violating the Buy
American Act (see FAR 25.204); or
(E) The Government suspects a contractor of attempting to evade the
prohibitions of debarment or suspension by changes of address, multiple
addresses, formation of new companies, or by other devices.
(ii) Include the following information, when available, in the
report required by paragraph (a)(i) of this subsection--
(A) Name, address, and telephone number of the point of contact for
the activity making the report;
(B) Name, contractor and Government entity (CAGE) code, and address
of the contractor;
(C) Name and addresses of the members of the board, principal
officers, partners, owners, and managers;
(D) Name and addresses of all known affiliates, subsidiaries, or
parent firms, and the nature of the business relationship;
(E) For each contract affected by the conduct being reported--
(1) The contract number;
(2) All office identifying numbers or symbols;
(3) Description of supplies or services;
(4) The amount;
(5) The percentage of completion;
(6) The amount paid the contractor;
(7) Whether the contract is assigned under the Assignment of Claims
Act and, if so, to whom; and
(8) The amount due the contractor;
(F) For any other contracts outstanding with the contractor or any
of its affiliates--
(1) The contract number;
(2) The amount;
(3) The amounts paid the contractor;
(4) Whether the contract is assigned under the Assignment of Claims
Act and, if so, to whom; and
(5) The amount due the contractor;
(G) A complete summary of all pertinent evidence and the status of
any legal proceedings involving the contractor;
(H) An estimate of any damages sustained by the Government as a
result of the contractor's action (explain how the estimate was
calculated);
(I) The comments and recommendations of the contracting officer and
of each higher level contracting review authority regarding--
(1) Whether to suspend or debar the contractor;
(2) Whether to apply limitations to the suspension or debarment;
(3) The period of any recommended debarment; and
(4) Whether to continue any current contracts with the contractor
(explain why a recommendation regarding current contracts is not
included);
(J) When appropriate, as an enclosure to the report--
(1) A copy or extracts of each pertinent contract;
(2) Witness statements or affidavits;
(3) Copies of investigative reports;
(4) Certified copies of indictments, judgments, and sentencing
actions; and
(5) Any other appropriate exhibits or documentation.
(iii) Send three copies of each report, including enclosures, to the
debarring official in 209.403.
209.470 Military recruiting on campus.
Sec. 209.470-1 Policy.
(a)(1) Section 558 of the National Defense Authorization Act for
Fiscal Year 1995 (Public Law 103-337) provides that no funds available
to DoD may be provided by grant or contract to any institution of higher
education that has a policy of denying or that effectively prevents the
Secretary of Defense from obtaining for military recruiting purposes--
(i) Entry to campuses or access to students on campuses; or
(ii) Access to directory information pertaining to students.
(2) Section 541 of the National Defense Authorization Act for Fiscal
Year 1996 (10 U.S.C. 983) provides that no funds appropriated or
otherwise available to DoD may be obligated by contract or by grant,
including a grant of funds to be available for student aid, to any
institution of higher education that, as determined by the Secretary of
Defense, has an anti-ROTC policy and at which, as determined by the
Secretary, the Secretary would otherwise
[[Page 67]]
maintain or seek to establish a unit of the Senior Reserve Officer
Training Corps, or at which the Secretary would otherwise enroll or seek
to enroll students for participation in a unit of the Senior Reserve
Officer Training Corps at another nearby institution of higher
education. This prohibition applies to new contracts and all contract
modifications. (See 243.105.) This prohibition shall cease to apply to
that institution upon a determination by the Secretary that the
institution no longer has an anti-ROTC policy.
(b) Institutions of higher education that are determined under 32
CFR part 216 to have the policy or practice in paragraph (a)(1) or
(a)(2) of this subsection shall be listed as ineligible on the List of
Parties Excluded from Federal Procurement and Nonprocurement Programs
published by the General Services Administration. (See FAR 9.404.)
(c) In cases where a determination is made under 32 CFR part 216
that specific subordinate elements of an institution of higher
education, rather than the institution as a whole, have the policy or
practice in paragraph (a)(1) or (a)(2) of this subsection, 32 CFR part
216 provides that the prohibition on use of DoD funds applies only to
those subordinate elements.
[61 FR 25408, My 21, 1996]
Sec. 209.470-2 Procedures.
(a) Agencies shall not solicit offers from, award contracts to, or
consent to subcontracts with ineligible contractors.
(b) After a determination of ineligibility under 209.470-1(a)(1),
departments and agencies shall make no further payments under existing
contracts with the institutions, and shall initiate termination action.
[61 FR 25408, My 21, 1996]
Sec. 209.470-3 Contract clause.
Use the clause at 252.209-7005, Military Recruiting on Campus, in
all solicitations and contracts with institutions of higher education.
[60 FR 13074, Mar. 10, 1995, as amended at 60 FR 51693, Nov. 30, 1995]
PART 211--DESCRIBING AGENCY NEEDS--Table of Contents
Sec.
211.002 Policy.
211.002-70 Contract clause.
Subpart 211.2--Using and Maintaining Requirements Documents
211.201 Identification and availability of specifications.
211.204 Solicitation provisions and contract clauses.
211.270 Brand name or equal purchase descriptions.
211.270-1 Policy.
211.270-2 Solicitation provision.
211.271 Elimination of use of class I ozone-depleting substances.
211.272 Alternate preservation, packaging, and packing.
Subpart 211.5--Liquidated Damages
211.504 Contract clauses.
Subpart 211.6--Priorities and Allocations
211.602 General.
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
Source: 60 FR 61594, Nov. 30, 1995, unless otherwise noted.
Sec. 211.002 Policy
All systems acquisition programs in the DoD are subject to the
acquisition streamlining policies and procedures in DoDI 5000.2, Defense
Acquisition Management Policies and Procedures.
Sec. 211.002-70 Contract clause.
Use the clause at 252.211-7000, Acquisition Streamlining, in all
solicitations and contracts for systems acquisition programs.
Subpart 211.2--Using and Maintaining Requirements Documents