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If the bidder Is unable to meet the above delivery schedule, he may, without prejudice to the evaluation of his bid, set forth his Proposed Delivery Schedule below; but such delivery schedule must not extend the delivery period beyond the time for delivery called for In the following required delivery schedule:

Required Delivery Schedule

Item Time

No. Quantity [« J

Bids offering delivery of a quantity under such terms or conditions that delivery will not clearly fall within the applicable required delivery period specified above will be considered nonresponslve and will be rejected.

If the bidder does not propose a different delivery schedule, the Government's desired delivery schedule shall apply.

Bidder's Proposed Delivery Schedule
(To Be Completed by Bidder)

Item Time

No. Quantity [• ]

•Contracting officer shall Insert the appropriate one of the following phrases, In each of the three Indicated spaces:

(1) "On (on or before) the date(s) specified below."

(2) "Within the number of days stated below after date of contract."

(3) "Within the number of days stated below after the date of receipt of a written notice of award."

(4) "Within the periods specified below." (note: When this phrase Is Inserted, the

wording "during the month(s) of"

or "not sooner than and not later

than "should be used to specify

the periods.)

§ 1—1.317 Noncollusive bids and proposals.

(a) In order to promote full and free competition for Government contracts, the following certification shall be included in all (1) Invitations for bids, and (2) requests for proposals or quotations, other than for small purchases made in accordance with Subpart 1-3.6 and other than requests for technical proposals in connection with two-step formal advertising, involving firm fixedprice contracts and fixed-price contracts with escalation:

Certificate or Independent Pr:

(a) By submission of this bid or proposal. each bidder or offerer certifies, and in the case of a Joint bid or proposal each party thereto certifies as to Its own organization, that In connection with this procurement:

(1) The prices In this bid or proposal have been arrived at Independently, without consultation, communication, or agreement, tor the purpose of restricting competition, a> to any matter relating to such prices with any other bidder or offerer or with any competitor;

(2) Unless otherwise required by law. the prices which have been quoted In this bid or proposal have not been knowingly disclosed by the bidder or offerer and will not knowingly be disclosed by the bidder or o'.feror prior to opening, In the case of a bid, or prior to award, in the case of a proposal. directly or indirectly to any other bidder or offerer or to any competitor; and

(3) No attempt has been made or will be made by the bidder or offerer to Induce any other person or firm to submit or not to submit a bid or proposal for the purpose of restricting competition.

(b) Each person signing this bid or proposal certifies that:

(1) He Is the person in the bidder's or offerer's organization responsible within that organization for the decision as to the prices being bid or offered herein and that he has not participated, and will not participate. In , any action contrary to (a)(l) through (a) (3) above; or

(2) (1) He is not the person In the bid- . dor's or offerer's organization responsible within that organization for the decision as to the prices being bid or offered herein but that he has been authorized In writing

to act as agent for the persons responsible for such decision In certifying that such persons have not participated, and will not participate, In any action contrary to (a)(l) through (a) (3) above, and as their agent .. does hereby so certify; and (11) he has not participated, and will not participate. In any »'' action contrary to (a)(l) through (a) (3) above.

(c) This certification Is not applicable to *; a foreign bidder or offerer submitting a bid or proposal for a contract which requires per- i formance or delivery outside the United States. Its possessions, and Puerto Rico. | .

(d) A bid or proposal will not be considered for award where (aid), (a) (3), or (b) above has been deleted or modified. Where (a) (2) above has been deleted or modified, the bid or proposal will not be considered for award unless the bidder or offerer furnishes with the bid or proposal a signed statement which sets forth In detail the circumstances

of the disclosure and the head of the agency, i •' or his deslgnee, determines that such dls- '• closure was not made for the purpose of restriding competition.


(b) The authority to make the determination described In paragraph (d) of the above certification shall not be delegated to an official below the level of the bead of a procuring activity of the agency.

(c) Where a certification is suspected of being false or there is indication of collusion, the matter shall be processed in accordance with Subpart 1-1.9 and appropriate agency procedures. For rejection of bids which are suspected of being collusive and for the negotiation of procurements subsequent to such rejection, see 55 1-2.404-1 (b) (6) and 1-3.214.

§ 1-1318 Contracting Officer'* decision under • dispute* clause.

(a) When a final decision of the Contracting Officer concerns a dispute that is or may be subject to the Disputes clause, a paragraph substantially as follows shall be included in the decision:

This decision Is made In accordance with the Disputes clause and shall be final and conclusive as provided therein, unless, within thirty days from the date of receipt of this decision, a written notice of appeal (In triplicate) addressed to the

(Title of tbe head of the agency] l» mailed or otherwise furnished to the Contacting Officer. The notice of appeal, which Is to be signed by you as the contractor or by an attorney acting on your behalf, and which may be In letter form, should Indicate that an appeal Is Intended, should refer to this decision and should identify the contract by number. The notice of appeal may Include a statement of the reasons why the rtsrlslon is considered to be erroneous.

(b) A copy of each contracting officer's decision shall be furnished to the contractor by certified mail, return receipt requested, or by any other method which provides evidence of the date of •?celpt of the decision by the contractor.

11-1.319 Procurement of items using jewel bearings.

(a) General. In order to maintain a Jewel bearing production facility in the United States as a part of the mobilization base, the Government owns and, through a contractor, operates the Turtle Mountain Jewel Bearing Plant at Rolla, North Dakota. The Director of tbe Office of Emergency Planning has requested that agencies use this source In order to promote use of this plant as an established domestic source of jewel bearings. The Joint Economic Commit

tee has also expressed similar interest in this objective.

(b) Policy and procedure. Government agency purchases of jewel bearings will be made from the Turtle Mountain Jewel Bearing Plant. In addition, all procurements of items, whether by Government directly or through cost-type contractors acting for the Government, calling for provision of jewel bearings shall provide, in the solicitations and resulting contracts, a requirement that jewel bearings in the quantities, and of the types and sizes necessary for the end items to be supplied under the contract, be purchased from the Turtle Mountain Plant and be incorporated in the delivered items. Subject to the criteria provided in (c), (d), and (e) of this I 1-1.319, except:

(1) When quantity requirements, quality standards, or delivery requirements cannot be satisfied by bearings manufactured at the Turtle Mountain Plant;

(2) For purchases of commercial end items having jeweled components, and the quantities of such end items or components are such that the contracting officer either knows or reasonably expects that all such end items or components are already manufactured and available from the stock of any dealer, wholesaler, distributor, or manufacturer; or

(3) For bearings used in items that are to be procured and used outside the United States, its possessions, and Puerto Rico.

(c) Provisions in solicitations. In order to assure that all bidders or offerers are competing on the same basis, it is necessary that the solicitation for items containing jewel bearings clearly state:

(1) The successful contractor will be required to purchase (directly or through subcontractors, as appropriate) Turtle Mountain source bearings at prices established in the U.S. Government Jewel Bearing Price List then in effect or, if not included in such price list, at prices quoted by the Turtle Mountain Plant, and to incorporate such bearings in the items to be delivered; and

(2) Bids or proposals are to be predicated on this requirement.

If after award of the contract, the Turtle Mountain Plant rejects the contractor's order entirely or in part, the contractor


Subpart 1-1.5—Contingent Fees S 1-1.500 Scope of subpart.

This subpart prescribes the use by executive agencies of the "covenant against contingent fees" and sets forth the policies, forms, methods, procedure, principles, and standards related thereto. The requirements of this subpart have as their objective the prevention of Improper influence in connection with the obtaining of Government contracts, the elimination of arrangements which encourage the payment of inequitable and exorbitant fees bearing no reasonable relationship to the services actually performed, and the prevention of unwarranted expenditure of public funds which inevitably results therefrom. The methods used to achieve these objectives are the requirement for disclosure of the details of arrangements under which agents represent concerns in obtaining Government contracts, and the prohibiting, by use of the covenant against contingent fees, of certain types of contractor-agent arrangements.

11-1.501 Applicability.

The provisions of this subpart apply to all contracts for the procurement of personal property and nonpersonal services, including the procurement of construction. The Criminal Code will apply I in any case involving actual criminal conduct.

§ 1—1.502 Improper influence.

The term "Improper Influence" means influence, direct or indirect, which induces or tends to induce consideration or action by any employee or officer of the United States with respect to any Government contract on any basis other than the merits of the matter.

I 1-1.303 Covenant.

Executive agencies shall include In every negotiated or advertised contract (except as provided in I 1-16.406) a "covenant against contingent fees" substantially as follows (set forth as article 20 of Standard Form 32, General Provisions (Supply Contract), and Clause 17 of Standard Form 23A, General Provisions (Construction Contract)):

Cototamt Against Contingent Fees

The Contractor warrants that no person or selling agency has been employed or retained to solicit or secure this contract upon

an agreement or understanding lot a commission, percentage, brokerage, or contingent fee, excepting bona flde employees or bona fide established commercial or selling agencies maintained by the Contractor for the purpose of securing business. For breach or violation of this warranty the Government shall have the right to annul this contract without liability or In Its discretion to deduct from the contract price or consideration, or otherwise recover, the full amount of such commission, percentage, brokerage, or contingent fee.

§ 1—1.504 General principles and standards applicable to the covenant.

§ 1-1.504-1 Use of principles and standards.

The principles and standards set forth in this subpart are intended to be used as a guide in the negotiation, awarding, administration, and enforcement of Government contracts.

§ 1-1.504—2 Contingent character of the fee.

Any fee whether called commission, percentage, brokerage, or contingent fee, or otherwise denominated, is within the purview of the covenant if, In fact, any portion thereof Is dependent upon success in obtaining or securing the Government contract or contracts involved. The fact, however, that a fee of a contingent nature is involved does not preclude a relationship which qualifies under the exceptions to the prohibition of the covenant.

§ 1-1.504—3 Exceptions to the prohibition.

There are excepted from the prohibition of the covenant "bona flde employees" and "bona flde established commercial or selling agencies maintained by the contractor for the purpose of securing business."

§ 1—1.504—4 Bona fide employee.

(a) The term "bona flde employee," for the purpose of the exception to the prohibition of the covenant, means an individual (including a corporate officer) employed by a concern in good faith to devote his full time to such concern and no other concern and over whom the concern has the right to exercise supervision and control as to time, place, and manner of performance of work. It is recognized that a concern, especially a small business concern, may employ an individual who represents other concerns. The factors set forth In § 1-1.504-5(b), except (4) thereof, shall be applied to determine whether such an Individual comes within the exception to the prohibition of the covenant.

(b) The hiring must contemplate some continuity and It may not be related only to the obtaining of one or more specific Government contracts.

(c) An employee is not "bona flde" who seeks to obtain any Government contract or contracts for his employer through the use of improper Influence or who holds himself out as being able to obtain any Government contract or contracts through improper influence.

(d) A person may be a bona flde employee whether his compensation is on a fixed salary basis or, when customary in the trade, on a percentage, commission or other contingent basis, or a combination of the foregoing.

§ 1-1.504-5 Bona fide established commercial or gelling agency maintained by the contractor for the purpose of securing business.

(a) An agency or agent is not "bona flde" which seeks to obtain any Government contract or contracts for its principals through the use of improper influence or which holds itself out as being able to obtain any Government contract or contracts through improper influence.

(b) In determining whether an agency is a "bona flde established commercial or selling agency maintained by the contractor for the purpose of securing business," the factors set forth below shall be considered. They are necessarily incapable of exact measurement or precise definition and it is neither possible nor desirable to prescribe the relative weight to be given any single factor as against any other factor or as against all other factors. The conclusions to be reached in a given case will necessarily depend upon a careful evaluation of the agreement and other attendant facts and circumstances.

(1) The fees charged should not be inequitable and exhorbitant in relation to the services actually rendered. That Is, the compensation should be commensurate with the nature and extent of the services and should not be excessive as compared with the fees customarily allowed in the trade concerned for similar services related to commercial (nonGovernment) business. In evaluating reasonableness of the fee, there should

be considered services of the agent other than actual solicitation, as for example, technical, consultant or managerial services, and assistance in the procurement of essential personnel, facilities, equipment, materials, or subcontractors foi performance of the contract.

(2) The selling agency should have adequate knowledge of the products and the business of the concern represented, as well as other qualifications necessary to sell the products or services on the;: merits.

(3) There should ordinarily be a continuity of relationship between the contractor and the agency. The fact that the agency has represented the contractor over a considerable period of time is a factor for favorable consideration. It is not intended, however, to disqualify newly established contractoragent relationships where a continuing relationship Is contemplated by the parties.

(4) It should appear that the agency is an established concern. The agency may be either one which has been In business for a considerable period of time or a new agency which is a presently going concern and which is likely to continue in business as a commercial or selling agency in the future. The business of the agency should be conducted in the agency name and characterized by the customary Indicia of the conduct of a regular business.

(5) The fact that a selling agency confines its selling activities to the field of Government contracts does not, in and of itself, disqualify it under the covenant. The fact, however, that the selling agency Is employed to secure business generally, that is, to represent the concern in connection with sales to the Government as well as regular commercial sales to non-Government activities is a factor entitled to favorable consideration in evaluating the case as one coming within the authorized exception. Arrangements confined, however, to obtaining Government contracts, particularly those involving a selling agency organized immediately prior to or during periods of expanded procurement resulting from conditions of national emergency, must be closely scrutinized.

§ 1-1.504-6 Fees for "information."

Contingent fees paid for "information" leading to obtaining a Government

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