"Construction contractor" means person (or firm) who, before being awarded a contract, satisfies the contracting officer that he qualifies as one:

(a) Who owns, operates, or maintains a place of business regularly engaged in the construction, alteration, or repair of buildings, structures, communication facilities, or other engineering projects, including the furnishing and installing of necessary equipment; or

(b) Who, if newly entering into a construction activity, has made all necessary prior arrangements for personnel, construction equipment, and required licenses to perform construction work. § 18-1.205 Contract modification.

"Contract modification" means any written alteration in the specification, delivery point, rate of delivery, contract period, price, quantity, or other contract provisions of an 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 (b) unilateral actions such as change orders, administrative changes, notices of termination, and

notices of the exercise of a contract option (see § 18-16.103).

§ 18-1.206 Contracting officer.

"Contracting Officer" means any person who, by appointment in accordance with procedures prescribed by this chapter, is currently a contracting officer (see Subpart 18-1.4) with the authority to enter into and administer contracts and make determinations and findings with respect thereto, or with any part of such authority. The term also includes the authorized representative of the contracting officer acting within the limits of his authority. For convenience of expression, a contracting officer, designated to perform specific duties relating to contract termination as his primary function (see § 18-8.201), may be referred to as the termination contracting officer (TCO). It is recognized that a single contracting officer may be responsible for duties in any or all procurement areas, and reference in this chapter to TCO does not of itself restrict in any way a contracting officer in the performance of any duty properly assigned.

"Contracts" means all types of agreements and orders for the procurement of supplies or services. It includes awards and notices of award; contracts of a fixed-price, cost, cost-plus-a-fixed-fee, or incentive type; contracts providing for the issuance of job orders, task orders, or task letters thereunder; letter contracts; and purchase orders. It also includes supplemental agreements with respect to any of the foregoing.

§ 18-1.208 Director of procurement.

"Director of Procurement" means the Director of the Procurement Office, Office of Industry Affairs, NASA Headquarters (Code: KD).

§ 18-1.209 Executive agency.

"Executive agency" means any executive department or any independent establishment in the Executive Branch of the Government, including any wholly owned Government corporation, the National Aeronautics and Space Administration, and the Departments of the Army, Navy, and Air Force.

§ 18-1.210 Federal agency.

"Federal agency" means any executive agency or any establishment in the Leg

islative or Judicial Branches of the Government (except the Senate, the House of Representatives, and the Architect of the Capitol and any activities under his direction).

§ 18-1.211 Field installation.

"Field installation" means Ames Research Center, Flight Research Center, Goddard Space Flight Center, John F. Kennedy Space Center, Langley Research Center, Lewis Research Center, Manned Spacecraft Center, George C. Marshall Space Flight Center, NASA Pasadena Office, Wallops Station, and any other field installation hereafter established by NASA.

[35 F.R. 18803, Dec. 11, 1970, as amended at 36 F.R. 21454, Nov. 10, 1971]

§ 18-1.212 Field procurement office.

"Field procurement office" means any NASA procurement office other than procurement offices at NASA Headquarters. § 18-1.213 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, possession, or Puerto Rico;

(c) An agency or instrumentality of a foreign government.

§ 18-1.214 Head of the installation.

"Head of the installation" means the Director (or other Head) of a field installation; the Director, Headquarters Administration Office (Code DH), and the Manager, AEC-NASA Nuclear Systems Office.

[35 F.R. 18803, Dec. 11, 1970, as amended at 36 F.R. 21454, Nov. 10, 1971]

§ 18-1.215 Head of the agency.

"Head of the agency" means the Administrator or Deputy Administrator of NASA.

"Possessions" in a geographic sense includes the Virgin Islands, the Canal Zone, Swan Islands, Guantanamo Bay, Johnston Island, American Samoa, Guam, Wake Island, Midway Island, and the guano islands but does not include Puerto Rico, leased bases, occupied Japanese islands, or trust territories. § 18-1.224 Procurement.

"Procurement" includes purchasing, renting, leasing, or otherwise obtaining supplies or services. It also includes all functions that pertain to the obtaining of supplies and services, including description but not determination of rerequirements, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration.

§ 18-1.225 Procurement office.

"Procurement office" means the offices at NASA Headquarters and NASA field installations charged with the responsibility for making and administering purchases and contracts.

§ 18-1.226 Procurement officer. "Procurement officer" means the head of a procurement office. § 18-1.229

Service contractor.

"Service contractor" means a person (or firm) who, before being awarded a contract, satisfies the contracting officer that he qualifies as one:

(a) Who owns, operates, or maintains a place of business regularly engaged in performing nonpersonal services, such as the repair, maintenance, or rebuilding of personal property; the packing, crating, or moving of material; the operation of equipment or facilities; the rental of equipment or facilities; or the performance of administrative, professional, or technical functions; or

(b) Who, if newly entering into a service activity, has made all necessary prior arrangements for personnel, service equipment, and required licenses to perform services.

§ 18-1.230 Shall.

"Shall" is imperative.

§ 18-1.231 Small business concern. See § 18-1.701-1.

§ 18-1.232 Supplemental agreement.

"Supplemental agreement” means any contract modification which is accomplished by the mutual action of the parties. (See § 18-16.103.)

§ 18-1.233 Supplies and property.

(a) "Supplies" or "Property" means all property except land or interests in land. It includes public works, buildings, and facilities; aircraft, missiles, satellites, and other aeronautical and space vehicles, together with related equipment, devises, components, and parts; machine tools; and the alteration or installation of any of the foregoing. "Supplies" as used in this chapter is synonymous with "property" as described in 10 U.S.C. 2303(b).

(b) The terms "supplies" and "property" are used interchangeably in this chapter unless otherwise specifically provided. These terms as used in this chapter have the same meaning as the term "supplies" used in ASPR. The term "personal property and nonpersonal services" as used in the FPR have the same meaning as "supplies and services" or "property and services" used herein.

(b) All peripheral, auxiliary, and accessorial equipment used in support of Digital and/or Analog Computers, either cable connected, or "self standing" and whether selected or acquired with the computers or separately (FSC 7410 or 7440);

(c) Punched Card Machines (PCM) and systems used in conjunction with or independently of Digital or Analog Computers (FSC 7410); and

(d) Digital and Analog Terminal and Conversion equipment that is acquired solely or primarily for use with a system which employs a Computer or Punched Card Machines (FSC 7410 or 7440). § 18-1.236 Nonprofit organization.

"Nonprofit organization" means any corporation, foundation, trust, or institution operated for scientific, educational, or medical purposes, not organized for profit, no part of the net earnings of which inures to the benefit of any private shareholder or individual.

Subpart 18-1.3-General Policies § 18-1.300 Scope of subpart.

This subpart sets forth general policies with respect to the procurement of supplies and services by formal advertising and by negotiation.

§ 18-1.301 Methods of procurement.

(a) Competition. All procurements, whether by formal advertising or by negotiation, shall be made on a competitive basis to the maximum practicable extent.

(b) Formal advertising. Procurements 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 effected in accordance with the detailed requirements and procedures set forth in Part 18-2 of this chapter.

(c) Negotiation. If the use of formal advertising is not feasible and practicable, procurements may be negotiated in accordance with the detailed requirements and procedures set forth in Part 18-3 of this chapter.

tions shall insure that they comply with applicable laws and regulations relative to obtaining supplies or services from Government sources and from contracts of other Government agencies. To the extent practicable, supplies shall be obtained from surplus property in the hands of disposal agencies and surplus or excess stocks in the hands of any Government agency. Releasable industrial equipment which is available from the Department of Defense reserves should be utilized to the extent feasible (see Subpart 18-13.50).

[35 F.R. 18803, Dec. 11, 1970, as amended at 36 F.R. 21454, Nov. 10, 1971]

§ 18-1.302-2 Sources outside the Gov

ernment.

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 or quotations" in the case of procurement by negotiation) shall be solicited from all such qualified sources deemed necessary by the contracting officer to assure full and free competition consistent with the procurement of the types of supplies and services necessary to meet NASA's requirements and thereby obtain for the Government the most advantageous contract-prices, quality and other factors considered.

[35 F.R. 18803, Dec. 11, 1970, as amended at 36 FR. 21454, Nov. 10, 1971]

§ 18-1.302-3 Production and research and development pools.

(a) Description. A production or research and development pool is a group of concerns (1) who 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) who 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), 50 U.S.C. App. 2158, or in accordance with section 9(d) or 11 of the Small Business Act, 15 U.S.C. 631-647 (Small Business Pools). Pool participants are exempt from the "manufacturer or regular dealer" re

quirement of the Walsh-Healey Public Contracts Act (see Subpart 18-12.6). Information on types of small business production pools, their purpose, and procedures for establishing such pools and for securing their approval by the Small Business Administration (SBA) is contained in the SBA publication "Small Business Production Pools for Defense."

(b) General rule. Except as provided in this § 18-1.302-3, 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 itself as a pool, contracting officers may rely on a copy of the Small Business Administration (SBA) or Office of Emergency Preparedness (OEP) notification of approval of the pool. If the contracting officer has any questions as to whether a given pool has been approved, he shall consult the regional office of the SBA. The Director of Procurement will expeditiously disseminate to field installations information received from SBA or OEP concerning the approval of production and research and development pools. In any case where the award of a contract to a group representing itself as a production or research and development pool is contemplated, and the contracting officer does not have data available as to the status of the pool, the group shall be requested to furnish to the contracting officer the following: (1) A copy of the SBA or OEP notification of approval of the pool; and

(2) A list of the member companies of the pool and a statement regarding the type of organization and plan of operation of the pool.

(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 for 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 his own name and not on behalf of a pool, the pool agreement shall be a factor to be considered in determining the pool member's responsibility, pursuant to Subpart 18-1.9.

(f) Small Business Status. Approval of an organization as a defense production or research and development pool under the Defense Production Act of 1950, as amended, does not confer upon such pool the preferences and privileges accorded to "small business concerns". Such preferences and privileges shall be accorded only to those pools which have been approved under the Small Business Act, Public Law 85-536, as amended. [35 F.R. 18803, Dec. 11, 1970, as amended at 36 F.R. 21454, Nov. 10, 1971]

§ 18-1.302-4 Contracts between the Government and its employees or business organizations 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 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 Director of Procurement shall be obtained prior to entering into any such contract. [36 F.R. 21454, Nov. 10, 1971]

tracting officers shall consider the policy restrictions of § 18-1.302-6 to apply to subcontracts.

[36 F.R. 21455, Nov. 10, 1971] § 18-1.302-51

New sources of scientific and technical competence.

As a Government agency whose mission calls for substantial Federal expenditures and use of substantial national resources, NASA has a strong interest in assisting in the accomplishment of collateral national economic goals within the framework of applicable statutory and administrative authority in such manner as will not impair program effectiveness. Utilization and the accompanying development of the potential of all geographical regions in the space program will effectively contribute to achieving national goals. To advance the further development of competence and capacity of sources, it is NASA's policy to encourage the placing of subcontracts over wider geographic areas. To carry out these objectives, the following clause shall be inserted in all research and development contracts of $500,000 and over to be performed within the United States. GEOGRAPHIC PARTICIPATION IN THE AEROSPACE PROGRAM (JUNE 1966)

(a) It is the policy of the National Aeronautics and Space Administration to advance a broad participation by all geographic regions in filling the scientific, technical, research and development, and other needs of the aerospace program.

(b) The Contractor agrees to use his best efforts to solicit subcontract sources on the broadest feasible geographic basis, consistent with efficient contract performance, and without impairment of program effectiveness or increase in program cost.

(c) The Contractor further agrees to insert this clause in all subcontracts of $100,000 and over.

[36 F.R. 21455, Nov. 10, 1971] § 18-1.303

Exchange of purchase in

formation.

(a) Where the same item or class of items is being purchased by more than one Government agency, or by more than one NASA procurement office, the exchange and coordination of pertinent information, particularly cost and pricing data, promotes uniformity of treatment of major issues and the resolution of particulary difficult or controversial issues. Such exchange and cordination of information is particularly beneficial during the period of procurement planning,