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§ 1-4.409 Consolidated purchase, joint use, or cross-service.

Consolidated purchase, joint use, or cross-service by one agency for another agency shall be used to procure utility services or facilities when advantageous to the Government in terms of economy, efficiency, or service. (Such methods of procurement do not include cases where utility services are furnished without charge by another Government agency as an incident to space procurement.) A memorandum of understanding, specifying the services or facilities to be supplied and the estimated costs and other conditions under which they will be procured, shall be used in cases of consolidated purchase, joint use, or cross-service. A copy of each memorandum shall be retained in the procuring agency's file until the end of the retention period specified in § 1-4.410-6. These memorandums shall be subject to such on-site postreview or periodic reporting as may be required by GSA.

§ 1-4.410 Independent procurement by executive agencies.

§ 1-4.410-1 General.

(a) In the absence of available GSA areawide contracts (§ 1-4.407), GSA long-term contracts (§ 1-4.408), or consolidated purchase, joint use, or crossservice (§ 1-4.409), executive agencies may procure utility services and facilities, within the scope of their authority, by independent procurement for their own accounts, subject to the policy provisions of § 1-4.406, the procedural provisions of § 1-4.410, and the review provisions of § 1-4.411.

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(b) Such procurement may be effected by formal bilateral written contract or by simple procurement documents, such as Government purchase orders or other written requests for service. A standard utility supplier application form similar document shall not be used, and if a Government purchase order or other written request for service will not be accepted by the utility supplier, the agency shall negotiate a formal bilateral written contract.

§ 1-4.410-2 Documentation of procurements from regulated utility suppliers.

Utility services may be procured by executive agencies by a simple procurement document, such as one of those mentioned in § 1-4.410-1, rather than by a formal bilateral written contract, when

the utility supplier's rates are fixed or adjusted by a Federal, State, or other public regulatory body, except that a formal bilateral written contract shall be used under one or more of the following circumstances:

(a) The utility service is available from more than one source of supply, in which case such service shall be procured as provided in § 1-4.406-1.

(b) The supplier requires the execution of a contract.

(c) The annual cost of the service to be procured is estimated by the using agency, at the time of initiation of the service or annual review of the expenditure, to be over $10,000.

(d) A proposed connection charge for connecting the using agency's facilities to the supplier's facilities, a termination liability for discontinuance of service or removal of facilities, the purchase cost or cumulative leasing cost of special facilities, or any other facilities charge to be paid by the agency (whether or not refundable) is estimated to exceed a total of $2,500.

(e) The executive agency concludes that a formal bilateral written contract is in the best interest of the Government. § 1-4.410-3 Documentation of procurements from unregulated utility suppliers.

Utility services shall be procured by executive agencies by a formal bilateral written contract, rather than by a simple procurement document, such as one of those mentioned in § 1-4.410-1, when the utility supplier's rates are not fixed or adjusted by a Federal, State, or other public regulatory body, and one or more of the following circumstances exists:

(a) The utility service is available from more than one source of supply, in which case such service shall be procured as provided in § 1-4.406–1.

(b) The supplier requires the execution of a contract.

(c) The annual cost of the service to be procured is estimated by the using agency, at the time of initiation of the service or annual review of the expenditure, to be over $2,500.

(d) A proposed connection charge for connecting the using agency's facilities to the supplier's facilities, a termination liability for discontinuance of service or removal of facilities, the purchase cost or cumulative leasing cost of special facilities, or any other facilities charge to

be paid by the agency (whether or not refundable) is estimated to exceed a total of $1,000.

(e) The executive agency concludes that a formal bilateral written contract is in the best interest of the Government. § 1-4.410-4 Negotiations with utility suppliers.

(a) In the event that a utility supplier declines, after appropriate initial request, to execute a formal bilateral written contract when required by this Subpart 1-4.4, the contracting officer ordinarily shall continue negotiations in an endeavor to obtain the supplier's consent to such a contract. However, after a definite and final refusal by the supplier to execute a contract, the agency may procure services by use of a Government purchase order or other written request for service. The agency shall immediately report the supplier's refusal to execute a contract to GSA, forwarding full documentation, including a copy of the record of negotiations. A full record of the negotiations with the supplier, including the reasons for the supplier's position, shall be retained in the procuring agency's file.

(b) Representatives of GSA are available to provide assistance to executive agencies at any stage of negotiation of a proposed procurement in order to facilitate the consummation of a mutually satisfactory contract between the agency and the supplier.

§ 1-4.410-5 Uniform clauses for utility

service contracts.

(a) The following uniform clauses, as prescribed in the current pertinent FPR sections or set forth verbatim below, shall be mandatory for utility service contracts. The clauses shall be inserted in all such contracts, expressly or through incorporation by reference.

(1) Definitions. Section 1-7.101-1. (2) Examination of records. Section 1-7.101-10.

(3) Equal opportunity. Section 112.803-2, as revised.

(4) Officials not to benefit. Section 1-7.101-19.

(5) Covenant against contingent fees. Section 1-1.503.

(6) Convict labor. Section 1-12.203. (7) Contract Work Hours Standards Act-overtime compensation. Section

1-12.303.

(8) Disputes. Section 1-7.101-12.

(9) Certificate of independent price determination. Section 1-1.317. (10) Conflicts.

CONFLICTS

To the extent of any inconsistency between the provisions of this contract, and any schedule, rider, or exhibit incorporated in this contract by reference or otherwise, or any of the Contractor's rules and regulations, the provisions of this contract shall control.

(b) The following uniform clauses are optional for utility service contracts, but should be used when applicable and advisable:

(1) Gratuities. Armed Services Procurement Regulation (ASPR) Par. 7104.16. (This clause should be used when the contract is for utility services to be used wholly or partly by one or more installations of the armed services.) (2) Parties of interest.

PARTIES OF INTEREST

This contract shall be binding upon and inure to the benefit of the successors, legal representatives, and assignees of the respective parties hereto.

(c) GSA has included the uniform clauses listed in paragraphs (a) and (b) of this section in its GSA Form 1685, Supplemental Provisions (Utility Service Contract). Upon request, GSA will furnish a copy of this form to any agency for its guidance, use, or reproduction as an agency form.

§ 1-4.410-6 Postreview or periodic reporting.

Under governing regulations (41 CFR 101-11.404-2, Schedule 3, Procurement and Supply Records), a copy of each executed utility service procurement document and supporting records is required to be retained in the procuring agency's file for a period of 6 years after completion of service. During the service period and the ensuing 6 years, all such documents and records shall be subject to such on-site postreview or periodic reporting as may be required by GSA. (See also § 1-4.411 on prior review of certain proposed procurements by executive agencies.)

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proposed memorandums of understanding for consolidated purchase, joint use, or cross-service by one agency for another agency, shall be subject to prior review by GSA or, in the alternative, by the procuring agency as described in § 14.411-3 below, before execution thereof, if either of the following circumstances applies:

(1) The annual cost of the service to be procured is estimated by the using agency, at the time of initiation of the service or annual review of the expenditure, to exceed $50,000; or

(2) A proposed connection charge termination liability, or any other facilities charge to be paid by the agency (whether or not refundable) is estimated to exceed a total of $5,000.

(b) Proposed utility procurement specified in paragraph (a) of this section shall be referred to GSA for prior review unless the procuring agency has an established program and personnel technically qualified to deal with specialized utilities problems, as described in § 1-4.411-3 below. If prior review is handled by GSA, it will follow the provisions set forth in § 1-4.411-2. If, however, prior review is handled by the procuring agency, it shall follow the provisions set forth in § 1-4.411-3. In either event guidelines to be used in such prior reviews are set forth in § 1-4.411-4. § 1-4.411-2 Prior review by GSA.

(a) Where a procuring agency refers the proposed procurements specified in § 1-4.411-1 (a) for prior review by GSA, the guidelines set forth in § 1-4.411-4 will be observed by GSA.

(b) Where a proposed procurement is referred by a procuring agency for prior review by GSA, the agency is authorized to complete the negotiation and execution thereof if no comments are made by GSA to the agency within 20 regular working days (or within such lesser period as may be agreed upon where time is a critical factor) from the date the proposal, documents, and data relating to the proposed procurement are received by GSA for prior review. GSA will acknowledge the date of receipt of the referral from the agency.

§ 1-4.411-3 Alternative prior review by the procuring agency.

(a) Where a procuring agency, as of the effective date of the regulations in this subpart, has an established program and personnel technically qualified to

deal with specialized utilities problems, adequate to accomplish its own prior review of the proposed utility procurements specified above in § 1-4.411-1(a), the agency shall notify the Administrator of General Services if it desires to continue its general responsibility for such prior review. This notification to the Administrator shall give the date, cite the implementing document, and summarize the review procedures relating to the agency's current program of prior review of proposed utility procurements. Continuation by the agency of its established general responsibility for prior review shall not be deemed to preclude referral of any specific case for prior review by GSA, whenever desired by the agency.

(b) Any agency having an established program as described in paragraph (a) of this section and continuing its established general responsibility for prior review shall provide by agency procedure that its review shall be exercised at technical and management levels sufficiently high to assure uniform application of the guidelines set forth in § 1-4.411-4. However, proposed procurement documents requiring prior review may be prepared for signature by any agency official acting within the scope of his delegated authority.

(c) A copy of each procurement document executed pursuant to § 1-4.4111(a) shall be retained in the procuring agency's file until the end of the retention period specified in § 1-4.410-6. In addition, if the procurement document is an authorization under an applicable GSA areawide contract, the agency shall furnish or arrange to furnish an executed counterpart or conformed copy to GSA pursuant to § 1-4.407 (c). All procurement documents executed pursuant to § 1-4.411-1 (a) shall be subject to such on-site postreview or periodic reporting as may be required by GSA.

§ 1-4.411-4 Guidelines for prior review.

Whether the prior review of the proposed procurements specified in § 1-4.411-1 (a) is handled by GSA in accordance with § 1-4.411-2 or by the procuring agency in accordance with § 1-4.411-3, the guidelines set forth below in this § 1-4.411-4 shall be observed:

(a) Complete information relating to each proposed procurement shall be assembled by the procuring agency sufficiently in advance to permit full review.

Such information shall include a technical description or specifications of the type and quality of the required services and a copy of any service proposal or proposed contract. If not included in the foregoing, a copy of the following additional documents and data shall be furnished wherever applicable:

(1) Copies of all applicable rate schedules, published or unpublished, currently used by available utility suppliers in billings to customers having service requirements similar to those of the procuring agency.

(2) The following data concerning quantity, quality, and time schedule of the required services: (i) Statement as to date initial service is required. (ii) Technical description or specifications of the type and quality of the required services. (iii) Data on estimated maximum demand, average monthly consumption, and estimated annual cost for the first calendar year of full service. (iv) Known or estimated time schedule for growth to ultimate requirements. (v) Estimated ultimate maximum demand, ultimate average monthly consumption, and estimated annual cost of ultimate required services and facilities.

(3) Identification of all available sources of supply and a statement as to the ability of each source to provide the required services. This should include the location and a description of each available supplier's facilities at the nearest point of service.

(4) The following data concerning proposed facilities and related charges or costs: (i) Proposed refundable or nonrefundable connection charge, termination liability, or other facilities charge to be paid by the Government, if any, together with a description of the proposed supplier facilities and estimated construction costs entering into the determination of the proposed facilities charge. (ii) A statement by the supplier that such proposed facilities charge is not in excess of the charge that other customers would be required to pay for like facilities under similar circumstances. (iii) Description of the proposed Government-owned facilities and estimated construction costs, if any, needed to procure the required services.

(5) Identification of any unusual factors affecting the procurement.

(b) Approval of a proposed procurement specified in § 1-4.411-1(a), after prior review by GSA or the procuring

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agency, shall be based on written determinations and supporting findings meeting all the following criteria as a minimum in each case:

(1) The proposed supplier is either the sole source of the required service or has been selected after consideration of more than one source of supply as provided in § 1-4.406-1;

(2) The service to be provided is adequate in terms of quantity, quality, and time schedule to meet the procuring agency's needs;

(3) The selected rate schedule is the most advantageous of the rate schedules available to the agency in terms of economy, efficiency, or service;

(4) The proposed facilities charge, if any, is necessary to secure the required service, is based on current cost or pricing data, is reasonable in total amount, and may be certified for payment by the agency; and

(5) The proposed procurement fulfills the requirements of this FPR Subpart 1-4.4.

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Public Law 85-765, as amended, commonly known as the Humane Slaughter Act of 1958 (7 U.S.C. 1901-1906), provides certain restrictions on the procurement of livestock products by Federal agencies and instrumentalities. The Act states the policy of the United States to be that the slaughtering of livestock, and the handling of livestock in connection with slaughter, shall be carried out only by humane methods. In essence, the Act prohibits the purchase by the Federal Government of livestock products produced or processed by any slaughterer or processor which in any of its plants (or in the plants of an affiliated slaughterer or processor) slaughters, or handles in connection with slaughter, livestock by any method other than humane. Further, the Act requires a supplier to make a statement concerning his eligibility under the Act to

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§ 1-4.604

Procedures.

(a) Proposed suppliers of livestock products shall be informed of the requirements of the Humane Slaughter Act and shall be required to furnish a statement of eligibility in accordance with this § 1-4.604.

(b) Except as provided in (c) and (d) of this § 1-4.604, the Statement of Eligibility (Humane Slaughter Act) set forth in § 1-4.605 shall be included in all invitations for bids, requests for proposals, and other contractual documents for livestock products, and shall be required to be duly signed by the supplier (contractor).

(c) Where small purchases are involved (see Subpart 1-3.6), it will be sufficient if, as a part of the purchase documentation, the supplier (contractor) furnishes, over his signature, only paragraph (a) of said Statement of Eligibility (Humane Slaughter Act).

(d) When frequent purchases are made from the same supplier (contractor) or the contracting officer deems it otherwise appropriate, the Statement of Eligibility (Humane Slaughter Act) may be obtained from the supplier (contractor) at reasonable intervals, but not less often than annually. When such Statement has been obtained, the clause set forth in § 1-4.606 may be inserted, in lieu

of said Statement of Eligibility (Humane Slaughter Act), in all contracts or purchase orders issued to the supplier. § 1-4.605 Statement of eligibility

clause.

The following statement of eligibility clause shall be used in accordance with § 1-4.604:

STATEMENT OF ELIGIBILITY (HUMANE
SLAUGHTER ACT)

(a) The supplier (contractor) agrees that livestock products sold to the Government, except products produced or processed from livestock slaughtered outside the United States, its possessions, and Puerto Rico, conform to the requirements of the Humane Slaughter Act of 1958 (7 U.S.C. 1901-1906).

(b) "Livestock products" means any article of food, or any article intended for or capable of being used as food, for either humans or animals, which is derived or prepared, in whole or in part, from slaughtered livestock, namely, cattle, calves, horses, mules, sheep, swine, or goats. Livestock products do not include (1) supplies, the animal product portion of which is less than 5 percent by weight of the net unit weight, and (2) poultry.

(c) A slaughterer or processor shall be deemed to be affiliated with another slaughterer or processor if it controls, or is controlled by, or is under common control with, such other slaughterer or processor.

(d) Livestock products which conform to the requirements of the Humane Slaughter Act of 1958 are products which have been produced and processed either:

(1) By those slaughterers and processors which, in all of their plants and in all of the plants of slaughterers and processors with which they are affiliated, slaughter, and handle in connection with slaughter, livestock only by methods designated as humane by the Secretary of Agriculture; or

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(2) From livestock slaughtered cordance with the ritual requirements of the Jewish faith or any other religious faith that prescribes a method of slaughter whereby the animal suffers loss of consciousness by anemia of the brain caused by the simultaneous and instantaneous severance of the carotid arteries with a sharp instrument, which ritual requirements have been designated as humane methods of slaughter by the subject Act.

(e) This statement is made with full knowledge that it will be relied upon by the Government in entering into contracts with the supplier (contractor) and in payment of claims thereunder.

WARNING

Making any false statement herein or submission of any false claim hereunder will subject supplier (contractor) to punishment

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