(b) When the GSAR implements the FAR, the GSAR is numbered (and captioned) to correspond to the FAR part, subpart, section, or subsection being implemented.

(c) When the GSAR supplements the FAR by dealing with subject matter not in the FAR, numbers beginning with 70 are assigned to the supplementing part, subpart, section, or subsection.

(d) When the FAR requires no implementation, the GSAR will not contain corresponding citations. This will result in some gaps in the GSAR. In such cases, see the FAR for policies and procedures.

[60 FR 63260, Dec. 8, 1994, as amended at 61 FR 6164, Feb. 16, 1996; 61 FR 14033, Mar. 29, 1996]

501.170 Other GSA publications.

501.170-1 GSA orders and handbooks.

Internal agency guidance, as described in FAR 1.301(a)(2), must be issued by heads of contracting activities in the form of a GSA order or handbook. GSA orders and handbooks must not unnecessarily repeat, paraphrase, or otherwise restate the FAR and GSAR. Policies and procedures for issuing GSA orders and handbooks are in the HB, Writing GSA Internal Directives (OAD P 1832.3A).

[57 FR 14649, Apr. 22, 1992]

501.170-2 Acquisition letters.

(a) Acquisition letters may be issued to provide coverage on an interim basis, pending incorporation of material in GSA orders or handbooks. Acquisition letters will be considered canceled after one year and therefore must be incorporated into the applicable order or handbook within that time period.

(b) The heads of contracting activities (HCA's) or their designees may issue acquisition letters. Normally no more than two officials within a contracting activity, as appropriate, may be designated to issue acquisition letters.

(c) Acquisition letters must be coordinated with appropriate offices including Acquisition Policy, Counsel, and the Inspector General. Proposed procedures affecting the operation of the small business program must be coordinated with the Office of Small and Disadvantaged Business Utilization

(AU).

(d) Acquisition letters must be identified by a number assigned by the issuing activity. The number should begin with the correspondence symbol of the issuing office, followed by the last two digits of the calendar year in which it is issued and be numbered consecutively beginning with 1. For example, the number of the first letter issued by the Commissioner, Public Buildings Service, in calendar year 1989 will be P-89–1.

(e) The body of the acquisition letter should contain the following paragraphs, as appropriate:

(1) Purpose.

(2) Background.

(3) Effective date.

(4) Termination date.

(5) Cancellation.

(6) Applicability (offices to which acquisition letter is applicable).

(7) Reference to regulations (FAR or GSAR), handbooks, or orders.

(8) Instructions/procedures.

(f) The issuing office is responsible for distributing its acquisition letters to affected contracting activities, regional Acquisition Management Staffs (RAMS), the Office of Acquisition Policy, appropriate Central Office contracting activities, Associate General Counsels, Regional Counsels, Directives and Correspondence Management Branch in Central Office, and Information Management Branches in the regions. In Region 3, it is the Administrative Operations Branch.

(g) Each issuing office must report on acquisition letters issued and canceled on a quarterly basis so that the Office of Acquisition Policy can issue a consolidated index of all acquisition letters issued or canceled. The index will be distributed to GSA contracting activities.

Subpart 501.4-Deviations From the FAR and GSAR

SOURCE: 61 FR 51374, Oct. 2, 1996, unless otherwise noted.

501.402 Policy.

(a) Uniformity is an objective of the GSA Acquisition Regulatory System. However, the desire for consistency of action by GSA contracting activities must not restrict or discourage development and testing of new procedures and techniques. Similarly, the desire for consistency must not prevent GSA contracting activities from adopting alternate procedures determined to be in the Government's interest based on unique programmatic or managerial

considerations.

(b) A contracting activity may deviate from a regulatory provision which implements a statutory requirement only to the extent that the deviation does not violate the underlying statute.

(c) Deviations must not be used to defeat the FAR and GSAR approval requirements.

501.403 Individual deviations.

Individual deviations from the GSAR or the FAR must be approved by the Contracting Director. A copy must be submitted to GSA's Senior Procurement Executive (MV).

501.404 Class deviations.

(a) Class deviations from the FAR or the GSAR must be approved by the head of the contracting activity (HCA). A copy must be submitted to GSA's Senior Procurement Executive (MV).

(b) Requests for class deviations must be supported by statements that disclose the need for and the nature of the deviation.

(c) Class deviations from the GSAR will expire in 12 months if not extended. They may be rescinded earlier by the Senior Procurement Executive or the HCA without prejudice to any action previously taken.

501.602–2 Responsibilities.

(a) GSA revolving funds. Unless otherwise notified, contracting officers may assume that sufficient funds are available for purchases payable from GSA revolving funds upon the receipt of a requisition signed by an authorized individual citing such funds. Requisitions for indefinite delivery contracts which provide for a guaranteed minimum must cite funds adequate to cover the guaranteed minimum quantities.

(b) GSA funds, other than revolving funds. (1) A requisition signed by an authorized individual may be considered as evidence that funds cited are available for purchases payable from GSA funds other than revolving funds. A certification that additional funds are available must be obtained from the requisitioning activity before awarding a contract or purchase order when the purchase exceeds (by 10 percent or $50, whichever is greater) the dollar amount of funds cited on the purchase requisition.

(2) When a requisition is not used, e.g., lease of real property, the contracting officer must ensure funds are available before awarding the contract.

(c) Other Federal agencies' funds. For purchases for direct delivery to Federal agencies other than GSA, the receipt of a properly signed/approved purchase request is sufficient evidence that funds are available. Where, however, the agency's purchase request indicates that a specific dollar amount has been set aside for the acquisition, as in the case of a Project Implementation Order/Commodities (PIO/C) from the Agency for International Development, the buying activity must not exceed the fund limitation except to the ex

tent authorized in supply support agreements. When the funds stated on the purchase request appear to be or are insufficient to cover costs for the acquisition, transportation, export surcharge, and any other expense involved in the delivery of material to designated consignees, additional funds must be obtained from the requiring agency before the acquisition is completed as indicated below:

(1) When requirements are submitted by agencies directly to a contracting division in the Central Office (regardless of where the procurement is actually made), the request for additional funds should be made by the Central Office contracting division.

(2) When requirements are submitted to a regional contracting division (regardless of where the acquisition is made), the request for additional funds will be made by the order processing and control activity in the region initially receiving the requirement.

[54 FR 26486, June 23, 1989, as amended at 56 FR 15288, Apr. 16, 1991]

501.602-3 Ratification of unauthorized

commitments.

(a) Authority. Under FAR 1.602-3, contracting officers may ratify unauthorized contractual commitments if the HCA approves the ratification action. The HCA may not redelegate this authority.

(b) Procedures. (1) Generally, the Government is not bound by commitments made by persons who do not have contracting authority. Such unauthorized acts may violate laws or regulations. Therefore, unauthorized commitments should be considered as serious employee misconduct and consideration given to initiating disciplinary action. If suspected irregularities may involve fraud against the Government, or any type of misconduct that might be punishable as a criminal offense, either the employee's supervisor or the contracting officer must immediately report the matter to the Office of the Inspector General with a request for a complete investigation.

(2) The individual who made the unauthorized commitment shall furnish the appropriate contracting director all records and documents concerning

the commitment and a complete written statement of facts, including, but not limited to, a statement as to why normal acquisition procedures were not followed, why the contractor was selected and a list of other sources considered, description of work or products, estimated or agreed-upon contract price, citation of appropriation available, and a statement regarding the status of the performance. Under exceptional circumstances, such as when the person who made the unauthorized commitment is no longer available to attest to the circumstances of the unauthorized commitment, the contracting director may waive the requirement that the responsible employee initiate and document the request for ratification, provided that a written determination is made stating that a commitment was in fact made by an employee, who must be identified in the determination.

(3) The contracting director will assign the request to a contracting officer for processing. The contracting officer shall prepare a summary statement of facts addressing the limitations in FAR 1.602-3(c) recommending whether or not the transaction should be ratified. Advice against express ratification should include a recommendation for other appropriate disposition. When ratification is not permissible due to legal improprieties in the procurement, the contracting officer may recommend that payment be made for services rendered on a quantum meruit basis (the reasonable value of work or labor) or for goods furnished on a quantum valebant basis (the reasonable value of goods sold and delivered) provided there is a showing that the Government has received a benefit. (See FAR 1.602-3(d).)

(4) The request for ratification, the information required by paragraph (b)(3) of this section and a recommendation for corrective action to preclude recurrence, must be forwarded, through appropriate channels to the HCA for consideration.

(5) The HCA shall approve the ratification in writing, or direct other disposition as appropriate. Acquisitions approved for ratification are returned to the contracting officer for issuance of the necessary contractual docu

Subpart 501.7-Determinations
and Findings

501.707 Signatory authority.

The FAR frequently refers to determinations being made by the agency head. Section 309 of the Federal Property and Administrative Services Act defines agency head and provides that at the option of the Administrator, the term may include the chief official of any principal organizational unit of the GSA. The Administrator has authorized the heads of contracting activities to act as agency head to facilitate the procurement of property and services under Title III of the Federal Property and Administrative Services Act. (See GSA Delegation of Authority Manual, ADM P 5450.39C.) When the applicable statute precludes redelegation of the authority, the Administrator must sign the D&F (see for example, FAR 6.302–7). Class D&Fs, if authorized, must be signed by the HCA.

[60 FR 54955, Oct. 27, 1995]

PART 502-DEFINITIONS OF WORDS AND TERMS

Subpart 502.1-Definitions

502.101 Definitions.

Agency competition advocate means the GSA Competition Advocate located in the Office of Acquisition Policy.

Chief of the contracting office means branch chiefs of Central Office or regional office branches within divisions that are responsible for performing contracting and/or contract administration functions except for FSS. In FSS Commodity Centers, "chief of contracting office" means division directors within the Commodity Centers. In Federal Supply Service Bureaus, "Chief of Contracting Office" means branch chiefs or supervisory equivalents. In PBS, the Director of a Facility Support Center is considered to be the "chief of the contracting office."

Contracting activity competition advocate means the individual designated in writing by the head of the contracting activity. This authority may not be redelegated. The HCA must ensure that the designated competition advocate is not assigned any duty or responsibility that is inconsistent with the advocacy function. The identity of the designated official shall be communicated to procuring staff and the Senior procurement executive.

Contracting director means directors of Central Office or regional office divisions that are responsible for performing contracting and/or contract administration functions except for FSS. "Contracting director" means directors of Commodity Centers and Federal Supply Service Bureaus in the FSS.

Head of the contracting activity means the Associate Administrator for Acquisition Policy, Associate Administrator for Federal Telecommunications Service (FTS), Commissioners of the Federal Supply Services (FSS), Information Technology Services (ITS), Public Buildings Service (PBS), or Regional Administrators. The Associate Administrator for Acquisition Policy serves as the HCA for Central Office contracting activities outside of FTS, FSS, ITS and PBS.

Senior procurement executive means the Associate Administrator for Acquisition Policy.

[57 FR 9213, Mar. 17, 1992, as amended at 57 FR 61583, Dec. 28, 1992; 60 FR 21467, May 2, 1995; 60 FR 54957, Oct. 27, 1995]