Supplies or services for which it Class of contracts under 10 U.S.C. 2304(a) (11). 18-3.305-3 18-3.305-4 18-3.305-5 18-3.306 18-3.306-1 18-3.306-2 18-3.307 18-3.308 18-3.400 Individual contract under 10 Advance payments under the Procedure with respect to determinations and findings. Justification required. Preparation and submission. Filing of determinations and findings. Retention of data with respect to negotiation. Subpart 18-3.4-Types of Contracts Scope of subpart. Types of contracts. Basic principles for use of con- Negotiation of contract type. Firm fixed-price contract. Fixed-price incentive contracts. Firm fixed-price level of effort term contract. Cost-reimbursement type con tracts. General. Cost contract. Cost sharing contract. Cost-plus-incentive-fee tract. con Cost-plus-award-fee contract. Cost-plus-a-fixed-fee contract. Other types of contracts. Time and materials contracts. Labor-hour contract. Additional incentives. Contracts with performance incentives. Indefinite delivery type contracts. Establishment of blanket purchase agreements. Competition under blanket pur chase agreement. Calls against blanket purchase agreements. Modification of contract clauses. Policy. Procedure. Coordination. Interagency coordination for educational institutions. Ceilings on indirect costs. Subpart 18-3.8-Price Negotiation Policies and 18-3.800 18-3.801 18-3.605 18-3.605-3 18-3.801-1 18-3.605-4 18-3.801-2 18-3.605-5 18-3.801-3 18-3.605-6 Receipt of material. 18-3.801-4 Techniques Scope of subpart. Basic policy. General. Responsibility of contracting officers. Responsibility of other personnel. Responsibility of pricing personnel, at NASA installations. Responsibility of DOD field pricing support personnel. Preparation for negotiation. Product or service. Selection of sources. Noncompetitive procurement. Requests for proposals. Evaluation of proposals. Evaluation procedures not involving Source Evaluation Board. Evaluation procedures-use of Source Evaluation Board. Disclosure of information prior to selection of contractor. Conduct of negotiations. General. Cost-reimbursement type con tracts. Cost, profit, and price relationships. Pricing techniques. General. Requirement for price or cost analysis. of the National Aeronautics and Space Act of 1958 and chapter 137 of title 10 of the United States Code. The following policies and procedures are included: (a) The basic requirements for the procurement of supplies and services by means of negotiation; (b) The different circumstances under which negotiation is permitted; (c) Determinations and findings that may be required before a contract is entered into by negotiation; (d) Approved types of negotiated contracts and their use; (e) Procedures for effecting purchases of not more than $2,500; (f) Price negotiation policies and techniques; and (g) Subcontracting policies and procedures. Subpart 18-3.1-Use of Negotiation § 18-3.100 Scope of subpart. This subpart deals with the nature and use of negotiation as distinguished from formal advertising, and with limitations upon that use. § 18-3.101 Factors to be considered in negotiated procurements. (a) In all negotiated procurements in excess of $2,500 in which rates or prices are not fixed by law or regulation and in which time of delivery will permit, proposals shall be solicited from the maximum number of qualified sources consistent with the nature and requirements of the supplies or services to be procured. In any procurement publicized under § 18-1.1003, sources which have not been solicited, but which are not otherwise barred by law or regulation, shall be promptly furnished a copy of the solicitation on request; and shall be permitted to submit a proposal in response thereto. All proposals shall be supported by statements and analyses of estimated costs or other evidence of reasonable prices and other matters deemed necessary by the contracting officer. In all such negotiated procurements, including those subject to Source Evaluation Board procedures (see § 18-3.804-3), written or oral discussions shall be conducted with all responsible offerors who submit proposals within a competitive range, price and other factors considered: Provided, however, That written or oral discussions need not be conducted for: (1) Procurements in implementation of authorized set-aside programs; or (2) Procurements where it can be clearly demonstrated, from the existence of adequate competition or accurate prior cost experience with the product, that acceptance of an initial proposal without discussion would result in fair and reasonable prices and where the request for proposals notifies all offerors of the possibility that award may be made without discussion. For procurements of $2,500 or less, see Subpart 18-3.6. (b) During the course of negotiations, contracting officers and their negotiators shall give due attention to the following and any other appropriate factors: (1) Comparison of prices quoted, and consideration of other prices for the same or similar supplies or services, with due regard to production costs, including extra-pay shift, multi-shift and overtime costs, and any other factor relating to price, such as profits, costs of transportation, and cash discounts; (2) Comparison of the business reputations, capabilities, and responsibilities of the respective persons or firms who submit proposals; (3) Consideration of the quality of the supplies or services offered, or of the quantity of the same or similar supplies or services previously furnished, with particular regard to the satisfaction of technical requirements; (4) Consideration of delivery requirements; (5) Discriminating use of price and cost analyses; (6) Investigation of price aspects of any important subcontract; (7) Individual bargaining, by mail or by conference; (8) Consideration of cost sharing; (9) Effective utilization in general of the most desirable type of contract; (10) Consideration of the size of the business concern; (11) Consideration as to whether the prospective supplier requires expansion or conversion of plant facilities; (12) Consideration as to whether the prospective supplier is located in a surplus labor area; (13) Consideration as to whether the prospective supplier will have an adequate supply of qualified labor; (14) Consideration of the extent of subcontracting; (15) Consideration of the existing and potential workload of the prospective supplier; (16) Consideration of broadening the industrial base by the development of additional suppliers; (17) Consideration of whether the contractor requires Government-furnished property, machine tools, or facilities; or Government-operated test facilities; (18) Advantages or disadvantages to the Government that might result from making multiple awards; (19) Consideration of the rules for the avoidance of organizational conflicts of interest (see § 18-1.113-2 and Appendix G); and (20) Royalties the Government will be required to pay under patent license agreements. (See § 18-9.102.) [36 F.R. 21472, Nov. 10, 1971] § 18-3.102 General requirements for negotiation. (a) Procurement shall be made by formal advertising whenever such method is feasible and practicable under the existing conditions and circumstances, even though negotiation may be authorized under Subpart 18-3.2. Among the factors to be considered in determining whether formal advertising is feasible and practicable are: (1) The number and location of potential suppliers; (2) The adequacy of the specifications for advertising; (3) The nature of the items being purchased; (4) The time available; and (5) The type of contract contemplated. (b) No contract shall be entered into by negotiation unless or until the following requirements have been satisfied: (1) Formal advertising is not feasible and practicable; (2) The contemplated procurement comes within one of the circumstances permitting negotiation set forth in 10 U.S.C. 2304(a); (3) Any necessary determinations and findings have been made; (4) Prescribed clearances or approvals have been obtained; (5) The prospective contractor has been determined to be responsible; and (6) Other requirements of this chapter have been met. (c) Negotiated procurements shall be on a competitive basis to the maximum practical extent. When a proposed procurement appears to be necessarily noncompetitive, the procurement office is re sponsible not only for assuring that competitive procurement is not feasible, but also for acting whenever possible to avoid the need for subsequent noncompetitive procurements. This action should include both examination of the reasons for the procurement being noncompetitive and steps to foster competitive conditions for subsequent procurements, particularly as to the availability of complete and accurate data, reasonableness of delivery requirements, and possible breakout of components for competitive procurement. Contracts shall not be negotiated on a noncompetitive basis without prior review and approval as provided in § 18-3.802-3. This restriction does not apply to those procurements listed in § 18-3.802-3 (b). [36 F.R. 21472, Nov. 10, 1971] § 18-3.103 Records and reports of negotiated contracts. |