[Title 32 CFR 644.545]
[Code of Federal Regulations (annual edition) - July 1, 2004 Edition]
[Title 32 - NATIONAL DEFENSE]
[Subtitle A - Department of Defense (Continued)]
[Chapter V - DEPARTMENT OF THE ARMY (CONTINUED)]
[Subchapter J - REAL PROPERTY]
[Part 644 - REAL ESTATE HANDBOOK]
[Subpart F - Disposal]
[Sec. 644.545 - Form of invitation for bids and contract of sale.]
[From the U.S. Government Printing Office]


3242004-07-012002-07-01true644.545Sec. 644.545NATIONAL DEFENSEDepartment of Defense (Continued)DEPARTMENT OF THE ARMY (CONTINUED)REAL PROPERTYREAL ESTATE HANDBOOKDisposal
Sec. 644.545  Form of invitation for bids and contract of sale.

    Sale contract forms will be prepared by the DE conducting the sale. 
ENG Form 571-R, Invitation for Bids, Bid and Acceptance, Sale of Surplus 
Real Property will be used as a guide in sales of bare land or improved 
land and related personal property. ENG Form 1038-R, Invitation for 
Bids, Bid and Acceptance, Sale and Removal of Buildings (or other Real 
Estate Improvements), will be used as a guide in sales of buildings and 
other improvements for removal from the site. These forms are designed 
for use in normal sales of land and real estate improvements pursuant to 
existing delegations of authority. The DE is authorized to change the 
formats, to rearrange the sequence of paragraphs, and to add or to 
delete paragraphs in whole or part, as local circumstances require, but 
no substantive departure from the forms is authorized without prior 
specific approval of DAEN-REM. Whenever a sale is to be conducted 
pursuant to a special delegation of authority, and whenever the 
circumstances of a sale are such as to render use of these forms 
inappropriate, a form will be devised by the DE to meet the requirements 
of the particular sale involved, and forwarded to DAEN-REM for approval. 
Suggested additional provisions and conditions for use in the sale of 
standing timber are contained in ENG Form 2140-R, Supplement to Standard 
Form 114 for use in Timber Sales Contract. In preparing sale contract 
forms, the following instructions will be followed:
    (a) A definite date and time will be set for the opening of bids.
    (b) Bids will be prepared in quadruplicate, all copies to be signed 
by the bidder.
    (c) The Invitation for Bids will require each bidder to submit with 
his bid a certified check, cashier's check, traveler's check, or United 
States postal money order drawn to the order of the ``Treasurer of the 
United States'' for at least 20 percent of the bid. When the cash bid 
may be a small part of the total consideration (where such dismantling 
and restoration is involved), the DE should set a definite higher amount 
as a bid deposit. Also, in such cases a performance bond, adequate to 
discourage breach of contract after only partial performance, may be 
required.
    (d) For real property components the Invitation for Bids will 
require payment in full within seven days after the successful bidder is 
notified that his bid is accepted and, in any event,

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prior to removal of the property. The time specified for completion of 
payment for land will depend upon the sum of money involved.
    (e) Bids may be submitted for one or any number of items. Items or 
lots of real property will be offered in such reasonable quantities as 
to permit all bidders, small as well as large, to compete on equal 
terms. Land, however, will not be subdivided solely for this purpose, 
and in the case of timber sales or sales of embedded sand, gravel and 
stone, it may not be feasible to have more than one purchaser operating 
in the same area. Further, it may not be to the Government's interest. 
Buildings will be offered for sale as single items whenever practicable 
but submission of bids covering specified groups as an item or all of 
the buildings may be permitted if the DE considers such a procedure is 
in the best interest of the Government. It may sometimes be advantageous 
to divide the buildings into appropriate groups and to permit bidding on 
individual buildings or on specified groups of buildings or on the 
entire lot. When such bids are permitted, the Invitation for Bids, ENG 
Form 1038-R, will be flagged to inform bidders that lump sum bids on the 
entire lot (and specified groupings, if this procedure is appropriate) 
may be made but will not be accepted unless the lump sum bid exceeds the 
total of the highest bids received on each item (or on the groupings).