tions under this clause, shall not exceed months. (Optional: Should the Government fail to exercise this option to extend the term of the contract, separate charges, as set forth elsewhere in this contract, shall incur.)

OPTION FOR INCREASED QUANTITY

The Government may increase the quantity of items called for herein by the amount stated elsewhere in this contract and at the unit prices specified therein. The Contracting Officer may exercise this option at any time within the period specified in the contract by giving written notice to the Contractor. Delivery of items added by exercise of this option shall be in accordance with the delivery schedule set forth elsewhere in this contract. (Optional: Should the Government fail to exercise this option for increased quantity, separate charges as set forth elsewhere in this contract shall incur.)

(End of Clause).

§ 1-4.1108-5 Standard clauses for implementation of FIPS PUBS.

(a) Scope. The standard terminology as set forth in Subpart 101-32.13 of the FPMR shall be included in the solicitation for each Federal Information Processing Standards Publication (FIPS PUB) that is applicable to a procurement under this Subpart 14.11. Subpart 101-32.13 provides standard terminology for use in purchase agreements, solicitations, and offers for acquisitions of ADP equipment (ADPE), related software, services, and communications equipment to give effect to Federal Standards announced in FIPS PUBS. Subpart 10132.13 is also applicable, where particular FIPS PUBS apply, to equipment acquired under Part 101-35 of the FPMR. FIPS PUBS are issued by the National Bureau of Standards and collectively constitute the Federal Information Processing Standards Register. FIPS PUBS are available as set forth in § 101-32.1302 of the FPMR.

(b) Applicability. The provisions of Subpart 101-32.13 are applicable to all Federal agencies unless the agencies are otherwise excepted. Waiver procedures and exceptions are prescribed in the applicable FIPS PUBS.

§ 1-5.301 Definition of excess personal property.

"Excess personal property" means any personal property under the control of any Federal agency which is not required for its needs and the discharge of its responsibilities, as determined by the head thereof.

§ 1-5.302 Policy.

To the fullest extent practicable, agencies shall use excess personal property as the first source of supply in fulfilling their requirements and requirements of their cost-type contractors.

§ 1-5.303 Implementation of policy.

(a) In giving effect to the policy stated in § 1-5.302, agencies should provide that:

(1) Personnel authorized to approve actions for procurement or other acquisition of personal property will make positive efforts to obtain excess before such actions are undertaken.

(2) Personnel mentioned in (1) of this § 1-5.303(a) will receive available information concerning excess personal property from appropriate General Services Administration regional offices.

(b) Prior to procurement or other acquisition of property, careful and receptive consideration shall be given to utilization of known usable excess personal property of a similar type, including the possibility of substitution or adaptation of excess items not identical with requested items, whether the excess items are unused, rehabilitated, or in used condition, and regardless of whether the intended acquisition would be from General Services Administration stores stock or from other sources of supply.

§ 1-5.304 Assistance by General Services Administration in filling requirements from excess.

(a) Information regarding the availability of excess personal property may be obtained through the following:

(1) Personal contact with the General Services Administration or the holding installation.

40-104 0-79--24

(2) Review of excess personal property catalogs and bulletins circularized by the General Services Administration.

(3) Submission of personal property requirements to the regional offices of the General Services Administration. (GSA Form 1539, Request for Excess Personal Property, is available for this purpose.)

(4) Examination and inspection of reports and samples of excess personal property assembled for this purpose in General Services Administration regional offices.

as

(b) The General Services Administration will assist agencies in meeting their requirements for property of the types excepted from reporting excess by § 101-43.312 of the Federal Property Management Regulations. Federal agencies requiring such property should contact the appropriate GSA regional office. GSA area utilization officers, stationed at military points throughout the United States which generate the largest amounts of excess, are screening and offering for Government use nonreported excess personal property as it becomes available for transfer.

[29 FR 10187, July 24, 1964, as amended at 30 FR 16111, Dec. 28, 1965]

to serve without compensation. The board represents industry, labor, agriculture, retailers and consumers, the Department of Defense, and the Attorney General.

(c) The chief function of the corporation is to provide training and employment for prisoners confined in Federal penal and correctional institutions. A substantial part of the earnings of the corporation is expended in carrying out a comprehensive vocational training program under which more than half of the prisoners receive occupational training in connection with the industries and the maintenance activities of the institutions themselves.

(d) Diversified products nd services are produced or provided so that no single private industry shall bear an undue burden of competition from the products of prison workshops or activities and that there is minimum competition with private industry and free labor.

§ 1-5.403 Preferences in the choice of procurement sources.

(a) Suitable Government used or excess property is the first source of supply (see § 1-1.302-1).

(b) Where similar products are produced both by Federal penal and correctional institutions and by workshops for blind and other severely handicapped, but the products are not available from FPI, they shall be procured from the workshops for blind and other severely handicapped before utilizing commercial sources.

(c) Services shall be procured from workshops for blind and other severely handicapped to the extent they are

(1) For purchases of less than carload lots of common use items, as listed in Schedule A of the Schedule, when they are purchased from the Federal Supply Service of GSA;

(2) When immediate delivery or performance is required by public exigen

cy;

(3) When suitable used or excess Government property can be secured; (4) When the products are procured and used outside the United States;

(5) When requirements are for unlisted items other than canvas items, signs, or furniture costing $100 or less;

or

(6) When orders are for listed items amounting to $25 or less that require delivery within 10 days (refer to individual sections of the Schedule for special clearance instructions pertaining to a particular class of product).

(b) Formal clearance on FPI Form 34 will be issued promptly for all products which are not available. Telegraphic clearances may be issued in emergencies, but clearances cannot be issued subsequent to purchase. Clearances should be attached to the initial voucher to prevent an exception being taken by the General Accounting Office.

(c) General or blanket clearances may be issued when classes of products are not available.

(d) Purchases from other sources because of lower prices are not authorized, and no clearances may be issued on this basis.

(e) Disputes regarding price, quality, character, or suitability of products produced by FPI are subject to arbitration as specified in 18 U.S.C. 4124. The statute provides that the arbitration shall be conducted by a board consisting of the Comptroller General of the United States, the Administrator of General Services, and the Director of the Office of Management and Budget, or their representatives. The decisions of the board are final and binding on all parties.

Subpart

SOURCE: 31 FR 12521, Sept. 22, 1966, unless otherwise noted.

§ 1-5.500 Scope of subpart.

This subpart prescribes policies and procedures governing Federal agencies in authorizing their prime contractors and subcontractors thereunder to obtain interagency motor pool vehicles and related services for use in performing cost-reimbursement type contracts and cost-reimbursement type subcontracts thereunder (see § 1-3.405 of this chapter).

§ 1-5.501 Policy.

(a) When a Federal agency deems that it is in the best interest of the Government to do so, the agency contracting officer may authorize cost-reimbursement type prime contractors and their cost-reimbursement type subcontractors to obtain interagency motor pool vehicles and related services, including: (1) Fuel and lubricants, (2) vehicle inspection, (3) maintenance and repair of vehicles, (4) vehicle storage, and (5) commercially rented vehicles for short-term use.

(b) Complete rebuilding of major components of contractor-owned or contractor-leased equipment will require the approval of the contracting officer in each specific instance. Before issuing an authorization, the agency contracting officer shall determine the advantage to the Government to be obtained therefrom and shall take into consideration any recommendations of the contractor.

(c) Except as otherwise specifically authorized by the Administrator of General Services at the request of the agency involved, Government prime contractors and their subcontractors shall not be authorized to obtain interagency motor pool vehicles and related services for use in connection with the performance of any contract or subcontract other than cost-reimbursement type.

(a) Authorization to cost-reimbursement type prime contractors and their cost-reimbursement type subcontractors to obtain interagency motor pool vehicles and related services shall be given only under the following conditions:

(1) The agency determines that provision of motor pool vehicles and related services to its contractor will accomplish agency contractual objectives and will effect demonstrable economies;

(2) The contractor or subcontractor shall procure automobile liability insurance covering bodily injury and property damage, with such limits of liability as may be required or approved by the agency, protecting the contractor, subcontractor, and the Government against third party claims arising from the ownership, maintenance, or use of a motor pool vehicle;

(3) Periodic checks will be made by the agency to assure that authorized contractors and subcontractors are using vehicles and related services exclusively under cost-reimbursement type contracts and subcontracts; and

(4) The contractor or subcontractor will assume the cost or expense of any use of motor pool vehicles and services not related to the performance of the contract without the right of reimbursement from the Government for such cost or expense.

(b) Authorizations shall be in writing and shall cite the number of the cost-reimbursement type contract or subcontract; specify any applicable limitations on the authority, including the period of eligibility; and any other pertinent information.

(c) Agencies authorizing contractor use of interagency motor pool vehicles and related services are subject to the responsibilities and liabilities provided in Subpart 101-39.8 of Part 101-39 of this title.

§ 1-5.503 Means of obtaining service.

(a) Requests for service by authorized contractors and subcontractors shall be submitted in writing to the appropriate General Services Administration regional office, Transportation and Communications Service, Motor