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agencies and, where appropriate and reasible. the views of interested business -.:-.d professional organizations. The Regulations will be coordinated with the Small Business Administration to assure adequate consideration of small business interests.

§ 1—1.007 Arrangement.
§ 1-1.007-1 General plan.

The general plan, numbering system, and nomenclature used in the Federal Procurement Regulations conform with Federal Register standards approved for the FPR.

{ 1-1.007-2 Numbering.

The numbering system permits identification of every unit. The first digit represents the chapter number allocated to each agency, followed by a dash. This is followed by the part number which may be one or more digits followed by a decimal point. The numbers after the decimal points represent, respectively, the subpart, section (in two digits), and, after the dash, subsection, paragraph, subparagraph, and further inferior divisions. For example, this division is called (section) "§ 1-1.007-2," in which the first digit denotes the chapter, the second the part, the third the subpart, the fourth and fifth the section and the sixth the subsection.

11-1.007-3 Citation.

Federal Procurement Regulations will be cited In accordance with Federal Register standards approved for the FPR. Thus, this section, when referred to in divisions of the Federal Procurement Regulations, should be cited as "§ 11007-3 of this chapter." When this section is referred to formally in official documents, such as legal briefs, it should be cited as "41 CFR 1-1.007-3." Any section of Federal Procurement Regulations may be informally identified, for purposes of brevity, as "FPR" followed by the section number, such as "FPR 1-1.007-3."

§ 1—1.008 Agency implementation.

As portions of FPR material are prescribed, agencies shall publish in the Pockal Register implementing regulations deemed necessary for business concerns, and others properly interested, to understand basic and significant agency procurement policies and procedures

which implement, supplement, or deviate from the FPR. Detailed Instructions of interest primarily for Internal agency guidance need not be published. Implementing regulations shall be prepared to conform with FPR style and arrangement.

§ 1-1.009 Deviation.

§ 1-1.009-1 Description.

As used In these Regulations, the term "deviation" Includes any of the following actions:

(a) When a prescribed contract clause is set forth verbatim, use of a contract clause covering the same subject matter which varies from that set forth.

(b) When a standard or other form Is prescribed, use of any other form for the same purpose.

(c) Alteration of a prescribed standard or other form, except as may be authorized in the Regulations.

(d) The imposition of lesser or, where the regulation expressly prohibits, greater limitations than are imposed upon the use of a contract clause, form procedure, type of contract, or upon any other procurement action, Including but not limited to, the making or amendment of a contract, or actions taken in connection with the solicitation of bids or proposals, award, administration, or settlement of contracts.

(e) When a policy or procedure Is prescribed, use of any inconsistent policy or procedure.

§ 1-1.009-2 Procedure.

In the interest of establishing and maintaining unformlty to the greatest extent feasible, deviations from the Federal Procurement Regulations shall be kept to a minimum and controlled as follows:

(a) The head of each agency exercising procurement authority shall prescribe a formal procedure for the control of deviations within the agency. A copy of the procedure shall be furnished to the General Services Administration.

(b) In individual cases, deviations may be authorized by the head of the agency or the officers designated by him for this purpose. In accordance with procedures established by the agency. In each Instance the file shall disclose the nature of the deviation and the reasons for such special action. •

(c) Deviations in classes of cases shall be considered on an expedited basis jointly by the agency desiring the deviation and the General Services Administration unless, in the considered judgment of the agency and with due regard to the objective of uniformity, circumstances preclude such joint effort. In such case, GSA will be notified of the deviation.

(d) Except as otherwise authorized, when any deviation in a contract form provision is authorized, physical change may not be made in the printed form but shall be made by appropriate provision in the schedule, specifications, or continuation sheet, as provided in agency procedures.

Subpart 1-1.1 [Reserved! Subpart 1-1.2—Definition of Terms § 1-1.201 Definitions.

For the purposes of this chapter, and unless otherwise indicated, the following terms have the meanings set forth in this subpart.

§ 1-1.202 Executive agency.

"Executive agency" means any executive department (including the Departments of the Army, the Navy, and the Air Force) or any independent establishment in the executive branch of the Government, including any wholly-owned Government corporation.

§ 1-1.203 Federal agency.

"Federal agency" means any executive agency or any establishment in the legislative or Judicial branch of the Government (except the Senate, the House of Representatives, and the Architect of the Capitol and any activities under his direction).

§ 1-1.204 Head of tKe agency.

"Head of the agency" means the Secretary, Attorney General, Postmaster General, Administrator, Governor, Chairman, or other chief official of an executive agency, unless otherwise Indicated, including any assistant chief official of an executive agency and, for the military departments, the Under Secretary and any Assistant Secretary of the Departments of the Army, Navy, and Air Force. § 1-1.205 Procuring activity.

"Procuring activity" means the organizational element of an executive agency which has responsibility to con

tract for the procurement of persona property and nonpersonal services (in eluding construction).

§ 1-1.206 Head of the procuring at tivity

"Head of the procuring activity means that official, Intermediate betweei the head of the agency and the con tracting officer, who has the responsibll ity for supervision and direction of th procuring activity.

§ 1-1.207 Contracting officer.

"Contracting officer" means an offlcis designated to enter into or admlnlste contracts and make related determine tlons and findings.

§ 1-1.208 Contract.

"Contract" means establishment of binding legal relation basically obligat ing the seller to furnish personal prop erty or nonpersonal services (includin construction) and the buyer to PK therefor. It includes all types of com mitments which obligate the Govern ment to an expenditure of funds am which, except as otherwise authorized are in writing. In addition to a two signature document, it includes al transactions resulting from acceptanc of offers by awards or notices of awards agreements and job orders or task letter issued thereunder; letter contracts letters of intent; and orders, such as pur chase orders, under which the contrac becomes effective by written acceptano or performance. It also includes con tract modifications.

§ 1-1.209 Procurement.

"Procurement" means the acqulsitloi (and directly related matters), fron non-Federal sources, of personal prop erty and nonpersonal services (includln construction) by such means as purchas ing, renting, leasing, contracting, o bartering, but not by seizure, condemna tlon, donation, or requisition.

§ -1.210 [Reserved] § -1.211 [Reserved] % -1.212 [Reserved] § -1.213 [Reserved] § -1.214 [Reserved] § —1.215 Government instrumentality

"Government instrumentality" mean any of the following:

(a) An instrumentality of the U.s Government.


(b) An agency or instrumentality of a State or local government thereof, possession, or Puerto Rico.

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

§ 1-1.216 United Slates.

"United States", when used in a geographic sense, means the States and the District of Columbia.

§ i -1.217 Possessions.

"Possessions" includes the Virgin Islands, the Canal Zone, Guam, American Samoa. Wake Island, Midway Island, and the guano islands, but does not include the Commonwealth of Puerto Rico.

i 1-1.218 Negotiation.

"Negotiation" means the procedure for making contracts without formal advertising.

§1-1.219 Contract modification.

"Contract modification" means any written alteration in the specifications, delivery point, rate of delivery, contract period, price, quantity, or other contract provision 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 amendments, and (b) unilateral actions, such as change orders, notices of termination, and notices of the exercise of an option.

§ 1-1.220 Procurement item.

"Procurement item" means any personal property or nonpersonal service, including construction, alteration, repair, or installation, which is the object of procurement.

Subpart 1-1.3—General Policies § 1—1.301 Methods of procurement. § 1-1.301-1 Competition.

All purchases and contracts, whether by formal advertising or by negotiation, shall be made on a competitive basis to the maximum practicable extent.

§ 1-1.301-2 Formal advertising.

Contracts for property and services 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 in accordance with detailed requirements and procedures set forth in Part 2 of this chapter.

§ 1-1.301-3 Negotiation.

If the use of formal advertising is not feasible and practicable, purchases and contracts for property and services may be negotiated in accordance with the detailed requirements and procedures set forth in Part 3 of this chapter.

§ 1-1.302 Procurement sources. § 1-1.302-1 General.

(a) Before taking procurement action, in accordance with this chapter, agencies shall have complied with applicable laws and regulations relative to obtaining supplies or services from Government sources and from contracts of other Government agencies. These include excess and surplus stocks in the hands of any Government agency, Federal Supply Schedules, General Services Administration Stores Stock, Federal Supply Service Consolidated Purchase Programs, Federal Prison Industries, Inc., and National Industries for the Blind.

(b) 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" in the case of procurement by negotiation) shall be solicited from all such qualified sources as are deemed necessary by the contracting officer to assure such full and free competition as is consistent with the procurement of types of supplies and services necessary to meet the requirements of the agency concerned.

§ 1-1.302-2 Production and and development pools.

(a) Description. A production at search and development pool is a g» of concerns (1) which have associa together for the purpose of obtain and performing jointly, or in conjunct with each other, contracts for supp! or services, or for research and develi ment, for defense use or to effectu the purposes of the Small Business A (2) which have entered into a pool agr ment governing their organization,: latlonship, and procedure; and (3) whi agreement has been approved either accordance with section 708 of the I fense Production Act of 1950, as amend (Defense Production Pool), or In accc: ance with sections 9(d) or 11 of t Small Business Act (Small Busir.i Pool). Pool participants are ex err from the "manufacturer or regul dealer" requirement of the Wals Healey Public Contracts Act. (See su part 1-12 6.)

(b) General rule. Except as pi vlded in this f 1-1.302-2, a pool shall treated for purposes of Government pr curement on exactly the same basis any other prospective or actual col tractor.

(c) Ascertainment of status. The: tracting officer is responsible for asce taining whether a group of firms seekli to do business with the Government is pool. In ascertaining the status of group representing that it is a pool, ca tracting officers may rely on a copy the Small Business Administrate (SBA) or the Office of Emergency PI* ning (OEP) notification of approval the pool. If the contracting officer to any question as to whether a given pa has been approved, he shall consult tl regional office of the SBA. Each exec live agency should expeditiously di Nominate to appropriate contracting ficers information received from 8! or OEP concerning the approval of pr ductlon pools.

(d) Contracting with pools.

(1) A bid or proposal of a pool is n eligible for award to the pool unle submitted either by the pool in its 01 name or by an individual member e pressly disclosing that it is on behalf the pool. Except as to contracts to 1 awarded to Incorporated pools, the coi tracting officer shall prior to award to pool require to be deposited with him 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 its own name, the pool agreement shall be considered in determining the pool member's responsibility purusant to § 1-1.310.

§ 1-1.303 Approval signatures.

Approval signatures on contracts or purchase authorizations should be minimized to the greatest practical extent and. in the event that multiple approval signatures are required, they should, where possible, be obtained concurrently.

S 1-1.304 [Reserved ]

{ 1-1.305 Specification*.1

••Specification." as used in this !11.305. is a clear and accurate description of the technical requirements for a material, product, or service, including the procedure by which it will be determined that the requirements have been met. Specifications for items or materials contain also preservation, packaging, packing, and marking requirements. The Identification of categories and intended use of such specifications are as follows:

(a) Federal. A specification covering those materials, products, or services, used by or for potential use of two or more Federal agencies (at least one of which is a civil agency), or new items of potential general application, promulgated by the General Services Administration and mandatory for use by all executive agencies.

1 Other instructions concerning the use of specification* that are of Interest and applicable to executive agencies, but which are of oo Interest to the public, are contained In Gcoflral Services Administration Regulation :-VI. Part 2.

(b) Interim Federal. A potential Federal specification Issued in interim form, for optional use by agencies. Interim amendments to Federal Specifications are included in this definition.

(c) Military (MIL). A specification issued by the Department of Defense, used solely or predominantly by and mandatory on military activities. (This definition includes both fully coordinated and limited coordination military specifications.)

(d) Departmental. A specification developed and prepared by, and of interest primarily to a particular Federal civil agency, but which may be of use in procurement by other Federal agencies.

§ 1-1.305-1 Mandatory use of Federal Specifications.

Federal Specifications shall be used by all executive agencies, including the Department of Defense, in the procurement of supplies and services covered by such specifications, except as provided In Si 1-1.305-2 and 1-1.305-3.

§ 1-1.305-2 Exceptions to mandatory use of Federal Specifications.

Federal Specifications need not be used under the following circumstances:

(a) The purchase is required under a public exigency and a delay would be involved in using the applicable specification to obtain agency requirements.

(b) The total amount of the purchase does not exceed $2,500. (Multiple small purchases of the same item shall not be made for the purpose of avoiding the intent of this exception.)

(c) The purchase involves items of construction for new processes, new installations of equipment, or items for experiment, test, or research and development, until such time as specifications covering them are issued or it is determined by the General Services Administration, and the procuring agencies notified, that further deviations from the Federal Specifications will not be permitted: Provided, That, in connection with such deviations, existing Federal Specifications shall be used to the extent that they are applicable.

(d) The purchase involves spare parts, components, or materials required for repair or maintenance of existing equipment, or for similar items required for maintenance or operation of existing facilities or installations: Provided, That existing Federal Specifications shall be

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