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niques and information as to plant ca- coordination will be accomplished in pacity, scheduling, engineering and manner which will minimize dupli production "know-how," Government tion of analysis (see $ 1-3.809(b); property, make-or-buy considerations. The analyses by technical and au and industrial security, particularly as personnel are of mutual interest, a these relate to the practices of the information relating thereto shall specific prospective contractor.

exchanged throughout the revi (3) The contract auditor is responsi process. It is recognized that t ble for submission of information and duties of auditors and those of oth advice, based on his analysis of the

on his analysis of the technical specialists in many cases 1 contractor's books and accounting rec quire both to evaluate the same e ords or other related data, as to the ments of estimated costs. While th acceptability of the contractor's in- shall review the data jointly or conci curred and estimated costs. The audi rently wherever possible, each sh: tor shall report any denial by the con render his services within his own ar tractor of access to records or cost or

of responsibility. For example, ( pricing data which the auditor consid

quantitative factors (such as lab ers essential to the preparation of a hours), the auditor will frequent satisfactory report. If the auditor be

find it necessary to compare propose lieves that the contractor's estimating

hours with hours actually expende methods or accounting system are in

on the same or similar products in th adequate to produce valid support for

past as reflected on the cost records the proposal or to permit satisfactory

the contractor. From this informatia administration of the type of contract

he can often project trend data. Th contemplated, this shall be stated in

technical specialist may also analyz the audit report and concurrently

the proposed hours on the basis of h made known to the contractor so that

knowledge of such things as sho

practices, industrial engineering, tim he may have the opportunity of presenting his views to the contracting of.

and motion factors, and the contrai

tor's plant organization and capabil ficer. Where the contracting officer

ties. The interchange of this informa determines that deficiencies in the contractor's accounting system or esti

tion will not only prevent duplication

but will ensure adequate and comple mating methods are such that the proposed contract cannot be adequately

mentary analysis.

(5) Pricing based on cost analysis in priced or administered, he shall, with

volves, among other things, an ap the advice of the contract auditor, ensure that necessary corrective

praisal of estimates of costs expected

to be incurred in the future. The ac action is initiated prior to the award of

counting projection of trends based or such contract. Generally, the auditor

cost or pricing data, together with any has responsibility for performing that

known changes therein, is only one part of reviews and cost or price analy

method of conducting this appraisal ses which requires access to the con

others being: tractor's books and financial records

(i) An engineering appraisal of the supporting proposed cost or pricing

need for the estimated labor and ma data, regardless of the dollar amount

terial costs and of tooling and faciliinvolved. This does not preclude the

ties, and the reasonableness of scrap contracting officer or his technical

and spoilage factors; and representatives from requesting any

(ii) The preparation of independent data from, or reviewing records of, the

estimates by competent technical percontractor (such as cost or pricing

sonnel. data, list of labor operations, process sheets, etc.) necessary to the discharge Occasionally, differences of opinion of their responsibilities.

will exist not only on the reasonable(4) In order to provide the contract- ness of cost projections but also on the ing officer with maximum support, it accounting techniques on which they is essential that there be close cooper- are based. In addition, it is normally ation and communication between the not possible to negotiate a pricing contract auditors and the production result which is in strict accord with all and other technical specialists. Such of the opinions of all the specialists, or

even with the Government's pricing obiective. Reasonable compromises are normally necessary and this fact must be understood by all members of the team. For all of these reasons audit renorts or pricing recommendations by others must be considered to be advisory only. The contracting officer is responsible for the exercise of the requisite judgments and is solely responsi. ble for the final pricing decision. In these instances where the contracting officer does not adopt audit or other specialist recommendations that have particular significance on the contract orice, appropriate comments shall be included in the record of the negotiation (see § 1-3.811).

(6) Whenever it becomes apparent to the contracting officer that the negotiations will require the resolution of complex problems which involve items significant in amount, he shall request attendance by audit and other appropriate representatives at the negotiation meeting. [34 FR 2659. Feb. 27, 1969)

from a sufficient number of competent potential sources to insure adequate competition (see $ $ 1-1.302, 1-1.702, 11.1203, and 1-3.101). The bidder's mailing lists prescribed by § 1-2.205 should be used where appropriate.

(c) Requests for proposals. (1) Requests for proposals shall contain the information necessary to enable a prospective offeror to properly prepare a quotation or proposal. The request for proposals shall be as complete as possible with respect to (i) item descriptions or statements of work, (ii) specifications, (iii) Government-furnished property, if any, (iv) required delivery schedule, (v) special provisions, (vi) cost or pricing data requirements (see $ 1-3.807-3), and (vii) contract clauses.

(2) Each request for proposals shall state the relative importance of cost or price, technical considerations, and other factors for purposes of proposal evaluation and contract award. Numerical weights which may be employed in the evaluation of proposals may be disclosed in solicitations.

(3) Requests for proposals shall specify a date and time for the submission of proposals. Any extension of time granted to one prospective offeror shall be granted uniformly to all.

(4) The initial release of requests for proposals shall be made to all prospective offerors at the same time, and no offeror shall be given the advantage of advance knowledge that proposals are to be requested.

(5) Requests for proposals shall be in writing except in those cases in which the urgency of the procurement is such that there is not sufficient time to prepare a written request. In such cases oral requests are authorized. [29 FR 10155, July 24, 1964, as amended at 36 FR 17422, Aug. 31, 1971; 38 FR 26914, Sept. 27, 1973; 43 FR 46303, Oct. 6, 1978)

$1-3.802 Preparation for negotiation.

(a) Product or service. Knowledge of the product or service, and its use, is essential to sound pricing. Before soliciting quotations, every contracting officer should develop, where feasible, an estimate of the proper price level or value of the product or service to be purchased. Such estimates may be based on a physical inspection of the product and review of such items as drawings, specifications, job process sheets, and prior procurement data. When necessary, requirements and technical specialists should be consulted. The primary responsibility for the adequacy of specifications and for the delivery requirements must necessarily rest with requirements and techni. cal groups. However, the contracting officer should be aware of the effect which these factors may have on prices and competition, and should, prior to award, inform requirements and technical groups of any unsatisfactory effect which their decisions have on prices or competition.

(b) Selection of prospective sources. Selection of qualified sources for solicitation of proposals is basic to sound prices. Proposals should be invited

$ 1-3.802-1 Consideration of late propos

als. (a) Except as provided in § 1-3.802-2, the following provision regarding the receipt and consideration of proposals for award that are received after the exact time set for receipt in the request for proposals shall be placed in each solicitation:

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0–79_-14

LATE PROPOSALS, MODIFICATIONS OF PROPOSALS, AND WITHDRAWALS OF PROPOSALS

(a) Any proposal received at the office designated in the solicitation after the exact time specified for receipt will not be considered unless it is received before award is made, and:

(1) It was sent by registered or certified mail not later than the fifth calendar day prior to the date specified for receipt of offers (e.g., an offer submitted in response to a solicitation requiring receipt of offers by the 20th of the month must have been mailed by the 15th or earlier);

(2) It was sent by mail (or telegram if authorized) and it is determined by the Gov. ernment that the late receipt was due solely to mishandling by the Government after receipt at the Government installation; or

(3) It is the only proposal received.

(b) Any modification of a proposal, except a modification resulting from the Contracting Officer's request for "best and final" offer, is subject to the same conditions as in (a)(1) and (a)(2) of this provision.

(c) A modification resulting from the Contracting Officer's request for “best and final" offer received after the time and date specified in the request will not be considered unless received before award and the late receipt is due solely to mishandling by the Government after receipt at the Gov. ernment installation.

(d) The only acceptable evidence to establish:

(1) The date of mailing of a late proposal or modification sent either by registered or certified mail is the U.S. Postal Service postmark on both the envelope or wrapper and on the original receipt from the U.S. Postal Service. If neither postmark shows a legible date, the proposal or modification of proposal shall be deemed to have been mailed late. (The term “postmark" means a printed, stamped, or otherwise placed impression (exclusive of a postage meter machine impression) that is readily identifiable without further action as having been supplied and affixed on the date of mailing by employees of the U.S. Postal Service. Therefore, offerors should request the postal clerk to place a hand cancellation bull's-eye “postmark" on both the receipt and the envelope or wrapper.)

(2) The time of receipt at the Government installation is the time-date stamp of such installation on the proposal wrapper or other documentary evidence of receipt maintained by the installation.

(e) Notwithstanding (a), (b), and (c), of this provision, a late modification of an otherwise successful proposal which makes its terms more favorable to the Government will be considered at any time it is received and may be accepted.

(f) Proposals may be withdrawn by wril ten or telegraphic notice received at ar time prior to award. Proposals may be wit drawn in person by an offeror or his authoi ized representative, provided his identity i made known and he signs a receipt for thi proposal prior to award.

NOTE.-The term “telegram" include: mailgrams.

(b) Proposals and modifications a proposals received in the office desig nated in the request for proposal after the exact time specified are lat proposals and shall be considered for award only if the circumstances set forth in the provision in § 1-3.802-1(a) above, are applicable. When a late pro posal or modification of proposal is re ceived and it is clear from available in: formation that it cannot be considered for award (e.g., when the postmark clearly shows that the proposal was mailed later than the fifth day prior to the date specified), the contracting officer, or his authorized representative, shall promptly notify the offeror that it was received late and will not be considered for award. However, when a late proposal or modification of proposal is transmitted by registered or certified mail and it is received before award but it is not clear from the available information whether it can be considered, the offeror shall be promptly notified substantially in accordance with the notice in § 12.303-6, appropriately modified to relate to proposals. Disposition of late proposals that cannot be considered for award shall be in accordance with agency procedures.

(c) Where only one proposal is involved and it is received after the time specified, it may be evaluated and considered for award in accordance with agency procedures. As used in this section the term “only proposal received" means a proposal which is one submitted by (1) the only offeror responding to the request for proposals, (2) a sole source, or (3) an offeror who is offering proprietary items in response to a request for proposals which specifies that awards will be made on the basis of proprietary items identified by the offeror by brand name, model, type, or other identification. With respect to (3) of this paragraph (c), the term does not mean an offer which is based

on a performance specification or a brand name product which is specific cally identified in the request for proposals.

(d) The normal revisions of proposals by offerors selected for discussion during the usual conduct of negotiations with such offerors are not to be considered as late proposals or later modifications to proposals but shall be handled in accordance with § 1-3.805. (38 FR 26914, Sept. 27, 1973, as amended at 42 FR 33737, July 1, 1977; 43 FR 31331, July 21. 1978)

§ 1-3.802-2 Alternate procedures for con

sideration of late proposals. (a) When the head of the agency, or his designee, determines that the procedures set forth in § 1-3.802-1 are not applicable to certain classes of negotiated procurement conducted by his agency, he may authorize the adoption of the following procedures for consideration of late proposals and modifications (except where the procurement of general purpose automated data processing equipment is involved unless use of the procedures set forth in this $ 1-3.802-2 is expressly authorized by the Commissioner, Automated Data and Telecommunications Service, GSA).

(b) Requests for proposals that fall within a class of negotiated procurement for which it has been determined, in accordance with § 1-3.8022(a), that the requirements of $ 13.802-1 are not applicable shall contain the following provision:

LATE PROPOSALS, MODIFICATIONS OF PROPOSALS, AND WITHDRAWALS OF PROPOSALS

(a) Any proposal received at the office designated in the solicitation after the exact time specified for receipt will not be considered unless it is received before award is made, and:

(1) It was sent by registered or certified mail not later than the fifth calendar day prior to the date specified for receipt of offers (e.g., an offer submitted in response to a solicitation requiring receipt of offers by the 20th day of the month must have been mailed by the 15th or earlier);

(2) It was sent by mail (or telegram if authorized) and it is determined by the Gov. ernment that the late receipt was due solely to mishandling by the Government after receipt at the Government installation; (3) It is the only proposal received; or

(4) It offers significant cost or technical advantages to the Government, and it is received before a determination of the competitive range has been made.

(b) Any modification of a proposal is subject to the same conditions as in (a) of this provision.

(c) The only acceptable evidence to establish:

(1) The date of mailing of a late proposal or modification sent either by registered or certified mail is the U.S. Postal Service postmark on both the envelope or wrapper and on the original receipt from the U.S. Postal Service. If neither postmark shows a legible date, the proposal or modification of proposal shall be deemed to have been mailed late. (The term “postmark” means a printed, stamped, or otherwise placed impression (exclusive of a postage meter machine impression) that is readily identifiable without further action as having been supplied and affixed on the date of mailing by employees of the U.S. Postal Service. Therefore, offerors should request the postal clerk to place a hand cancellation bull's-eye “postmark" on both the receipt and the envelope or wrapper.)

(2) The time of receipt at the Government installation is the time-date stamp of such installation on the proposal wrapper or other documentary evidence of receipt maintained by the installation.

(d) Notwithstanding (a) and (b) of this provision, a late modification of an otherwise successful proposal which makes its terms more favorable to the Government will be considered at any time it is received and may be accepted.

(e) Proposals may be withdrawn by written or telegraphic notice received at any time prior to award. Proposals may be withdrawn in person by an offeror or his authorized representative, provided his identity is made known and he signs a receipt for the proposal prior to award.

NOTE.—The term “telegram" includes mailgrams.

(c) Proposals that are received in the office designated in the request for proposals before the time specified for their receipt shall be evaluated to determine which proposals are within the competitive range established for the procurement action. There may be cases where lateness due solely to a delay in the mails or mishandling after receipt at the Government installation results in a proposal being received by the contracting officer after the competitive range has been determined. In such cases the late proposal shall be evaluated, and, if found to be within the competitive range,

shall be given the same consideration ferors shall be conducted in accordas other proposals within the competi- ance with agency procedures; however, tive range.

debriefings should be conducted only (d) A late proposal that is delayed after award has been made. due to circumstances other than those (h) An offeror who has submitted a set forth in the provision contained in late proposal that has not been accept§ 1-3.802-2(b) which offers significant ed for consideration shall be notified cost or technical advantages to the in writing that the proposal was reGovernment shall be evaluated pro- ceived late and will not be considered. vided it is received before a determina The notification shall set forth the tion of the competitive range has been reason why the late proposal was not made. Where the evaluation results in considered; e.g., did not offer signifia determination that the proposal is cant cost or technical advantage, rewithin the competitive range, the pro ceived after a determination of the posal shall be given the same consider competitive range, received after ation as other proposals within the award. competitive range. However, where (i) Modifications of proposals are only one proposal is involved and it is categorized on the basis of time of rereceived after the time specified, a de

ceipt as: (1) Receipt prior to a determitermination of the competitive range

nation of the competitive range, (2) reis not to be made and the proposal

ceipt from offerors within the competmay be evaluated and considered for itive range during negotiations, and (3) award provided that the receipt of the receipt at any time from an otherwise proposal is prior to a decision made by

successful offeror. Modifications rethe contracting officer to resolicit. See

ceived prior to a determination of the § 1-3.802-1(c) for the meaning of the

competitive range shall be considered term "only proposal received."

in the evaluation of the proposals (e) Late proposals that are delayed which they modify. Modifications reunder circumstances other than delays

ceived after a determination of the in the mails or mishandling at the

competitive range shall be considered Government installation which are re

only if they modify proposals which ceived after a determination of the

are within the competitive range and competitive range shall not be evaluat

are received prior to the date for comed or considered for award. Also,

pletion of negotiations established by where the request for proposals pro

the contracting officer. All offerors vides that award may be made without

within the competitive range shall be discussions with offerors, a late pro

notified in writing of the date for composal shall not be evaluated or consid

pletion of negotiations. Modifications ered if it is received after the success

received after the date set shall not be ful offeror has been selected and the considered. However, a modification contract has been awarded.

received from an otherwise successful (f) Generally, contracting officers,

offeror which is advantageous to the assisted by audit or pricing personnel,

Government shall be considered at will be able to make a determination any time. of the significance of any reduction in [38 FR 26915, Sept. 27, 1973, as amended at cost to the Government offered by a 42 FR 33737, July 1, 1977; 43 FR 31331, July late proposal. Determinations regard 21, 1978) ing significant technical advantages shall be made in accordance with § 1-3.803 Type of contract. agency procedures.

(a) The selection of an appropriate (g) Determination of the competitive contract type and the negotiation of range shall be made in accordance prices are related and should be conwith agency procedures. All offerors sidered together. Section 1-3.403 lists shall be notified at the same time some of the factors for this joint conwhether or not their proposals are sideration. The objective is to negotiwithin the competitive range, and the ate a contract type and price that indate of such notification shall be con- cludes reasonable contractor risk and sidered to be the date of the determi- provides the contractor with the greatnation. Debriefings of unsuccessful of est incentive for efficient and eco

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