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proposals, award, administration, or set- Subpart 1-1.1 [Reserved]
tlement of contracts.
(e) When a policy or procedure is pre-

Subpart 1-1.2-Definition of Terms scribed, use of any inconsistent policy or

§ 1-1.201 Definitions. procedure.

For the purposes of this chapter, and § 1-1.009–2 Procedure.

unless otherwise indicated, the following In the interest of establishing and terms have the meanings set forth in this maintaining uniformity to the greatest subpart. extent feasible, deviations from the Fed

8 1-1.202 Executive agency. eral Procurement Regulations shall be kept to a minimum and controlled as

"Executive agency” means any execufollows:

tive department (including the Depart(a) The head of each agency exercis

ments of the Army, the Navy, and the ing procurement authority shall pre

Air Force) or any independent establishscribe a formal procedure for the control

ment in the executive branch of the of deviations within the agency. A copy

Government, including any whollyof the procedure shall be furnished to

owned Government corporation. the General Services Administration. § 1-1.203 Federal agency.

(b) In individual cases, deviations may be authorized by the head of the

"Federal agency" means any executive agency or the officers designated by him

agency or any establishment in the legis

lative or judicial branch of the Governfor this purpose, in accordance with procedures established by the agency.

ment (except the Senate, the House of In each instance the file shall disclose

Representatives, and the Architect of the nature of the deviation and the rea

the Capitol and any activities under his

direction). sons for such special action.

(c) Deviations in classes of cases shall § 1-1.204 Head of the agency. be considered on an expedited basis

"Head of the agency” means the Secjointly by the agency desiring the devia

retary, Attorney General, Postmaster tion and the General Services Adminis

General, Administrator, Governor, tration unless, in the considered judg

Chairman, or other chief official of an ment of the agency and with due regard

executive agency, unless otherwise into the objective of uniformity, circum- dicated, including any assistant chief stances preclude such joint effort. In official of an executive agency and, for such case, GSA will be notified of the the military departments, the Under deviation.

Secretary and any Assistant Secretary of (d) Except as otherwise authorized, the Departments of the Army, Navy, and when any deviation in a contract form

Air Force. provision is authorized, physical change § 1–1.205 Procuring activity. may not be made in the pri form but shall be made by appropriate provision

"Procuring activity" means the or

ganizational element of an executive in the schedule, specifications, or con- agency which has responsibility to continuation sheet, as provided in agency tract for the procurement of personal procedures.

property and nonpersonal services (in§ 1-1.010 Interagency Procurement Pol.

cluding construction). icy Committee.

8 1-1.206 Head of the procuring acFor the purpose of advising and as

tivity. sisting the General Services Administra- “Head of the procuring activity” tion in its Government-wide program means that official, intermediate between for the development of uniform procure

the head of the agency and the conment policies and procedures, an Inter- tracting officer, who has the responsibilagency Procurement Policy Committee,

ity for supervision and direction of the chaired by GSA, has been established.

procuring activity. It is comprised of representatives of pro- § 1-1.207 Contracting officer. curement and related Federal agencies

“Contracting officer” means an official designated by the heads of the agencies

designated to enter into or administer concerned.

contracts and make related determina(30 F.R. 9766, Aug. 5, 1965)

tions and findings.

an

§ 1-1.208 Contract.

“Contract” means establishment of a binding legal relation basically obligating the seller to furnish personal property or nonpersonal services (including construction) and the buyer to pay therefor. It includes all types of commitments which obligate the Government to an expenditure of funds and which, except as otherwise authorized, are in writing. In addition to a twosignature document, it includes all transactions resulting from acceptance of offers by awards or notices of awards; agreements and job orders or task letters issued thereunder; letter contracts; letters of intent; and orders, such as pur

se orders, under which the contract becomes effective by written acceptance or performance. It also includes contract modifications. § 1-1.209 Procurement.

“Procurement” means the acquisition (and directly related matters), from non-Federal sources, of personal property and nonpersonal services (including construction) by such means as purchasing, renting, leasing (including real property), contracting, or bartering, but not by seizure, condemnation, donation, or requisition. [30 F.R. 8217, June 26, 1965) § 1-1.210 [Reserved] $ 1-1.211 [Reserved] § 1-1.212 [Reserved] § 1-1.213 [Reserved] § 1-1.214 [Reserved] § 1-1.215 Government instrumentality.

Government instrumentality” means any of the following:

(a) An instrumentality of the U.S. Government.

(b) An agency or instrumentality of a State or local government thereof, possession, or Puerto Rico.

(c) An agency or instrumentality of a foreign government. § 1-1.216 United States.

“United States”, when used in a geographic sense, means the States and the District of Columbia. § 1-1.217 Possessions.

"Possessions" includes the Virgin Islands, the Canal Zone, Guam, American Samoa, Wake Island, Midway Island,

and the guano islands, but does not include the Commonwealth of Puerto Rico. § 1-1.218 Negotiation.

"Negotiation" means the procedure for making contracts without formal advertising. § 1-1.219 Contract modification.

“Contract modification" means any written alteration in the specifications, delivery point, rate of delivery, contract period, price, quantity, or other contract provision of existing contract, whether accomplished by unilateral action in accordance with a contract provision or by mutual action of the parties to the contract. It includes (a) bilateral actions, such as supplemental agreements and amendments, and (b) unilateral actions, such as change orders, notices of termination, and notices of the exercise of an option. 8 1-1.220 Procurement item.

“Procurement item” means any personal property or nonpersonal service, including construction, alteration, repair, or installation, which is the object of procurement.

Subpart 1-1.3-General Policies 8 1-1.301 Methods of procurement. $ 1-1.301-1 Competition.

All purchases and contracts, whether by formal advertising or by negotiation, shall be made on a competitive basis to the maximum practicable extent. § 1-1.301–2 Formal advertising.

Contracts for property and services shall be made by formal advertising in all cases in which the use of such method is feasible and practicable under the existing conditions and circumstances. Procurement by formal advertising shall be in accordance with detailed requirements and procedures set forth in Part 2 of this chapter. § 1-1.301-3 Negotiation.

If the use of formal advertising is not feasible and practicable, purchases and contracts for property and services may be negotiated in accordance with the detailed requirements and procedures set forth in Part 3 of this chapter. § 1-1.302 Procurement sources. § 1-1.302-1 General.

(a) Before taking procurement action, in accordance with this chapter, agencies shall have compiled with applicable laws and regulations relative to obtaining supplies or services from Government sources and from contracts of other Government agencies. These include excess and surplus stocks in the hands of any Government agency, Federal Supply Schedules, General Services Administration Stores Stock, Federal Supply Seryice Consolidated Purchase Programs, Federal Prison Industries, Inc., and National Industries for the Blind.

(b) Irrespective of whether the procurement of supplies or services from sources outside the Government is to be effected by formal advertising or by negotiation, competitive proposals ("bids" in the case of procurement by formal advertising, “proposals” in the case of procurement by negotiation) shall be solicited from all such qualified sources as are deemed necessary by the contracting officer to assure such full and free competition as is consistent with the procurement of types of supplies and services necessary to meet the requirements of the agency concerned. § 1-1.302–2 Production and research

and development pools. (a) Description. A production or research and development pool is a group of concerns (1) which have associated together for the purpose of obtaining and performing jointly, or in conjunction with each other, contracts for supplies or services, or for research and development, for defense use or to effectuate the purposes of the Small Business Act; (2) which have entered into a pool agreement governing their organization, relationship, and procedure; and (3) whose agreement has been approved either in accordance with section 708 of the Defense Production Act of 1950, as amended (Defense Production Pool), or in accordance with sections 9(d) or 11 of the Small Business Act (Small Business Pool). Pool participants are exempt from the "manufacturer or regular dealer” requirement of the WalshHealey Public Contracts Act. (See subpart 1-12.6.)

(b) General rule. Except as provided in this § 1-1.302–2, a pool shall be treated for purposes of Government procurement on exactly the same basis as any other prospective or actual contractor.

(c) Ascertainment of status. The contracting officer is responsible for ascertaining whether a group of firms seeking to do business with the Government

is a pool. In ascertaining the status of a group representing that it is a pool, contracting officers may rely on a copy of the Small Business Administration (SBA) or the Office of Emergency Planning (OEP) notification of approval of the pool. If the contracting officer has any question as to whether a given pool has been approved, he shall consult the regional office of the SBA. Each executive agency should expeditiously disseminate to appropriate contracting officers information received from SBA or OEP concerning the approval of production pools.

(d) Contracting with pools.

(1) A bid or proposal of a pool is not eligible for award to the pool unless submitted either by the pool in its own name or by an individual member expressly disclosing that it is on behalf of the pool. Except as to contracts to be awarded to incorporated pools, the contracting officer shall prior to award to a pool require to be deposited with him a certified copy of a power of attorney from each member of the pool who is to participate in the performance of the contract authorizing an agent to execute the bid, proposal, or contract on behalf of such member. A copy of each such power of attorney shall be appended to each executed copy of the contract retained by the Government.

(2) Membership in a pool shall not of itself preclude individual members from submitting bids or proposals as individuals on appropriate procurements. Bids or proposals submitted by an individual member of a pool shall not be considered when the individual member has participated in the bid or proposal submitted by the pool.

(e) Responsibility of pool member. Where a member of a production pool has submitted a bid or proposal in its own name, the pool agreement shall be considered in determining the pool member's responsibility pursuant to § 1-1.310. § 1-1.302–3 Contracts between the Gov.

ernment and Government employees or business concerns substantially owned or controlled by Government

employees. (a) Contracts shall not knowingly be entered into between the Government and employees of the Government or business concerns or organizations which are substantially owned or controlled by Government employees, except for the most compelling reasons, such as cases where the needs of the Government cannot reasonably be otherwise supplied.

(b) When a contracting officer has reason to believe that an exception as described in paragraph (a) of this section, should be made, approval of the decision to make such an exception shall be handled in accordance with agency procedures and shall be obtained prior to entering into any such contract. (30 F.R. 9589, July 31, 1965) & 1–1.303 Approval signatures.

Approval signatures on contracts or purchase authorizations should be minimized to the greatest practical extent and, in the event that multiple approval signatures are required, they should, where possible, be obtained concurrently. § 1-1.304 [Reserved] 8 1-1.305 Specifications."

"Specification," as used in this g 11.305, is a clear and accurate description of the technical requirements for a material, product, or service, including the procedure by which it will be determined that the requirements have been met. Specifications for items or materials contain also preservation, packaging, packing, and marking requirements. The identification of categories and intended use of such specifications are as follows:

(a) Federal. A specification covering those materials, products, or services, used by or for potential use of two or more Federal agencies (at least one of which is a civil agency), or new items of potential general application, promulgated by the General Services Administration and mandatory for use by all executive agencies.

(b) Interim Federal. A potential Federal specification issued in interim form, for optional use by agencies. Interim amendments to Federal Specifications are included in this definition.

(c) Military (MIL). A specification issued by the Department of Defense, used solely or predominantly by and mandatory on military activities. (This definition includes both fully coordinated and limited coordination military specifications.)

(d) Departmental. A specification developed and prepared by, and of interest primarily to a particular Federal civil

agency, but which may be of use in procurement by other Federal agencies. (29 F.R. 10104, July 24, 1964, as amended at 30 F.R. 16110, Dec. 28, 1965) 8 1-1.305-1 Mandatory use of Federal

Specifications. Federal Specifications shall be used by all executive agencies, including the Department of Defense, in the procurement of supplies and services covered by such specifications, except as provided in 88 1-1.305-2 and 1-1.305-3. 8 1-1.305–2 Exceptions to mandatory

use of Federal Specifications. Federal Specifications need not be used under the following circumstances:

(a) The purchase is required under a public exigency and a delay would be involved in using the applicable specification to obtain agency requirements.

(b) The total amount of the purchase does not exceed $2,500. (Multiple small purchases of the same item shall not be made for the purpose of avoiding the intent of this exception.)

(c) The purchase involves items of construction for new processes, new installations of equipment, or items for experiment, test, or research and development, until such time as specifications covering them are issued or it is determined by the General Services Administration, and the procuring agencies notified, that further deviations from the Federal Specifications will not be permitted: Provided, That, in connection with such deviations, existing Federal Specifications shall be used to the extent that they are applicable.

(d) The purchase involves spare parts, components, or materials required for repair or maintenance of existing equipment, or for similar items required for maintenance or operation of existing facilities or installations: Provided, That existing Federal Specifications shall be used to the extent that they are applicable.

(e) The items are purchased in foreign markets for use of overseas activites of agencies.

(f) An Interim Federal Specification is used by an agency in lieu of the Federal Specification.

(g) Where otherwise authorized by law. § 1-1.305-3 Deviations from Federal

Specifications. When the essential needs of an agency are not adequately covered by an exist

1 Other instructions concerning specifications are contained in the Federal Property Management Regulations, Part 101–29.

ing Federal Specification, and the proposed purchase does not come within the exceptions described in § 1-1.305–2, the agency may authorized deviations from the Federal Specification; provided, that:

(a) Requirements of existing Federal Specifications shall be used to the maximum extent practicable.

(b) Each agency taking such deviations shall establish procedures whereby a designated official having substantial procurement responsibility shall be responsible for assuring that:

(1) Federal Specifications are used, and provisions for exceptions and deviations are complied with;

(2) Justifications for exceptions and deviations are subject to competent review before authorization, and that such justifications can be fully substantiated if post audit is required;

(3) Major or repeated deviations are not taken except as prescribed in this § 1-1.305–3; and

(4) Notification or recommendation for change in the specification is sent promptly to the General Services Administration by the designated official or subdivision at the agency level, through established agency channels, when

(i) Deviations taken are of a major nature such as to result in the entrance of a new item into the supply system of the agency as evidenced by the development of a new item identification; or

(ii) A deviation is taken repeatedly.

(5) Notification or recommendation for change in the specification shall be submitted, in duplicate, to the General Services Administration, Federal Supply Service, Washington, D.C. 20405. It shall include a statement of the deviations authorized by the agency, with justification therefor, and, where applicable, recommendation for revision or amendment of the specification.

(c) Deviations taken and reported by the agency in accordance with § 1-1.3053(b) may not be continued except under the following conditions:

(1) Upon notification by an agency that major or repeated deviations have been taken and where no recomendation for change in the specification is made by the agency, the General Seryices Administration will notify the agency as to whether such deviations may be continued in subsequent procurement. In cases where deviations are not

approved and where procurement by the agency has progressed to a point where it would be impracticable to amend or cancel the action, such action may be completed, but the deviation shall not be authorized by the agency in subsequent procurement.

(2) Where an agency has recommended changing the specification consistent with the deviations it has taken and reported, those deviations may be continued until such time as the recommended change is coordinated and incorporated in the specification; provided, that where coordination with Federal agencies and industry, as applicable, does not result in acceptance of the change, such deviations shall not be authorized by the agency in subsequent procurement. § 1-1.305-4 Optional use of Interim

Federal Specifications. Interim Federal Specifications are for optional use. All agencies are urged to make maximum use of Interim Federal Specifications and to submit statements of suggested changes to the assigned agency for consideration in further development of the specifications for promulgation as Federal Specifications. § 1-1.305–5 Use of Federal and Interim

Federal Specifications in Federal con

struction contracts. When material, equipment, or services for which a Federal or Interim Federal Specification is available are specified in connection with Federal construction, the Federal or Interim Federal Specification shall be made a part of the specification for the construction contract, subject to the provisions in § 1-1.305. § 1-1.305–6 Military and departmental

specifications. If no Federal Specification is available, existing Interim Federal, military, and departmental specifications which are listed in the Index of Federal Specifications and Standards should be considered and, wherever practicable, used by any agency having need therefor, consistent with the agency's procedures establishing priority for use of such specifications. 8 1-1.306 Standards."

"Standards," as used in this § 1-1.306, are descriptions which establish engi

1 Other instructions concerning standards are contained in the Federal Property Management Regulations, Part 101–29.

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