if the contractor is not allowed to proIceed with work until prices have been established. The circumstances listed in § 3.202-2 are indicative of instances in which the contractor may be permitted to proceed with work prior to establishment of prices.

As a general rule, prices should be established prior to authorizing the contractor to begin work. However, where the contractor is allowed to begin work prior to pricing in accordance with this section, the contractor and the contracting officer shall proceed with pricing as soon as practicable. The basic ordering agreement shall provide that failure to reach agreement on price in such circumstances will constitute a dispute subject to the procedures of the disputes clause.

(3) Each order issued under a basic ordering agreement shall be subject to such reviews, approvals, and determinations and findings (including those pertaining to types of contracts) specified in this subchapter as would be applicable if the order were a contract entered into apart from the basic ordering agreement.

(4) A basic ordering agreement shall be modified only by a revision of the basic ordering agreement itself and shall not be modified or superseded by individual orders issued thereunder. Το minimize modifications, revisions to this subchapter involving changes in authorized contract clauses utilized in basic ordering agreements shall provide appropriate direction with respect to any required modifications of basic ordering agreements; and, to the extent possible, modifications shall be required only in matters resulting from changes in statutes, or executive orders. Basic ordering agreements shall be reviewed at least annually, before the anniversary of their effective dates, and revised to conform with the current requirements of this subchapter. Modifications shall not have retroactive effect.

(5) The contracting officer issuing an order under a basic ordering agreement shall be responsible for assuring compliance with the provisions of subparagraphs (1), (2), and (3) of this paragraph.

[28 F.R. 2577, Mar. 16, 1963, as amended at 30 F.R. 14083, Nov. 9, 1965]

Subpart E-Solicitations of Proposals and Quotations

§ 3.500 Scope of subpart.

This subpart applies only to negotiated procurements in excess of $2,500 (see Subpart F of this part for small purchases).

[27 F.R. 1694, Feb. 22, 1962]

§ 3.501 Preparation of request for proposals or request for quotations.

(a) Forms used for requesting proposals or quotations on negotiated procurements shall be as required by Part 16 of this chapter, or if not required by such Section, as prescribed by Departmental regulations.

(b) Generally, requests for proposals or quotations shall be in writing. However, in appropriate cases, such as the procurement of perishable subsistence, proposals or quotations may be solicited orally. Solicitations shall contain the information necessary to enable a prospective offeror to prepare proposal or quotation properly. Written requests shall be as complete as possible and normally should contain the following information if applicable to the procurements involved:

(1) Request for proposals or request for quotations number;

(2) Name and address of issuing activity, channels for submission of offer, and identification of the Government office or individual responsible for supplying additional information and answering inquiries.

(3) Date of issuance;
(4) Closing date and time.

(5) Number of pages and list of enclosures;

(6) Requisition or other purchase authority and appropriation and accounting data, if considered appropriate by the purchasing activity;

(7) A description (complying with Subpart L, Part 1 of this chapter) of the supplies or services to be furnished;

(8) Type of contract contemplated, together with type of repricing;

(9) The time of delivery or performance (see § 1.305 of this chapter);

(10) Requirements for performance and payment bonds (see Subpart A, Part 10 of this chapter);

(11) Any offer by the Government to provide Government production and research property for the performance of the contract, and any special provisions

relating thereto (see Subpart C, Part 13 of this Chapter) (see, for example, § 13.202(b) of this chapter);

(12) Description of the procedures to be followed in obtaining permission to use Government production and research property and in eliminating the competitive advantage that might otherwise result from the use or acquisition of such property (see Subparts D and E, Part 13 of this chapter);

(13) A requirement for stipulation of a time within which the Government may accept the proposal;

(14) Consistent with § 3.805–1 (a) (5), notice to all offerors of the possibility that award may be made without discussion of proposals. (All requests for proposals for construction shall contain a provision that in the event several proposals are received and the contracting officer is satisfied that the offerors understand the work and are responsible prospective contractors and that the low proposal is reasonable and does not differ unreasonably from the Government estimate, if any, award may be made to the firm whose proposal is low, without further negotiation.)

(15) Special provisions necessary for the particular procurement, relating to such matters as progress payments (see Defense Contract Financing Regulations, § 163.71-1 of this chapter), patent 11censes, liquidated damages, Buy American Act (see §§ 6.104-3 and 6.204-4), or procurement by barter (see § 4.503-5);

(16) Any applicable wage determination of the Secretary of Labor (for construction contracts, see Subpart D, Part 12 of this chapter);

(17) Identification of special factors, such as Government costs or other expenditures, including reliability and maintainability requirements, which must be considered in the evaluation of proposals or quotations;

(18) Factors other than price which will be given paramount consideration in the awarding of the contract;

(19) Information as to requirements for Certificate of Current Pricing Data (see § 3.807-3);

(20) Adequate statement of information required to enable evaluation of technical and financial capabilities, and a statement covering special technical capabilities which the offeror must possess;

(21) Instructions regarding the marking of information which is not to be disclosed to the public or used by the Gov

ernment for any purpose other than the evaluation of the proposals or quotations (see § 3.507-1);

(22) Directions for obtaining copies of any documents, such as plans, drawings, and specifications, which have been incorporated by reference (see § 1.1203 of this chapter);

(23) Where DD Form 746, Request for Proposals and Proposal (Dec. 1, 1963, edition) is not used, a provision for late proposals and modifications as set forth in § 3.506 and, in addition, the following notice shall be prominently set forth in the request for proposals (in the case of request for quotations, the provision in §3.506 and the following notice will be appropriately modified):

See the special

CAUTION-LATE PROPOSALS. provision in this solicitation entitled "Late Proposals".

(24) Discount provisions (see § 2.407-3 of this chapter);

(25) Provisions for extent of quantity variations (see § 1.325 of this chapter);

(26) A requirement that the proposal or quotation state the intended place of performance, including the street address, and the names and addresses of owner and operator of producing facilities, if other than offeror, when it is reasonably anticipated that such facilities will be used in the performance of the contract;

(27) Place and method of delivery (see Subpart M, Part 1 of this chapter);

(28) Preservation, packaging, packing, and marking requirements (see § 1.1204 of this chapter);

(29) Place, method, and condition of inspection;

(30) A clear statement of option provisions (see Subpart O, Part 1 of this chapter);

(31) Any applicable requirements for samples or descriptive literature;

(32) Instructions with respect to disposition of drawings and specifications supplied with the request for proposals or request for quotations;

(33) Description of information required to support proposed prices (subcontract structure, make-or-buy program, purchasing system, royalty, and cost and price information) (see Subparts H and I of this part and Subpart A of Part 9 of this chapter);

(34) A statement of disaster area, labor surplus area, or small business setasides;

(35) Required representations regarding small business status;

(36) Statutory cost limitations (for construction, see § 18.110 of this chapter);

(37) For construction, provisions for performance of work by contractor, see §§ 2.201 (c) (2) and 18.104 of this chapter;

(38) Estimated magnitude of the proposed construction, see § 13.109 of this chapter.

(39) A statement as follows:

This procurement is not set aside for labor surplus area concerns. However the offeror's status as such a concern may affect entitlement to award in the case of tie offers, or in the evaluation of offers in accordance with the "Buy American" clause of this solicitation. In order to have his entitlement to a preference determined on the occurrence of those events, the offeror must identify below the areas in which the costs that he will incur on account of manufacturing or production (by himself or his first-tier subcontractors) amount to more than 50 percent of the contract price:

Failure to list the proposed areas or performance as specified above will preclude consideration of such offeror as a labor surplus

area concern.

The offeror agrees that if, as a labor surplus area concern, he is awarde da contract for which he would not have qualified in the absence of such a classification, he will perform or cause to be performed the contract in accordance with the circumstances justifying the preference.

(40) A statement as follows:

UNNECESSARILY ELABORATE CONTRACTOR'S PROPOSALS (AUGUST 1965)

Unnecessarily elaborate brochures or other presentations beyond that sufficient to present a complete and effective proposal are not desired and may be construed as an indication of the offeror's lack of cost consciousness. Elaborate art work, expensive paper and bindings and expensive visual and other presentation aids are neither necessary nor wanted.

The above statement shall be appropriately modified when included in a Request for Quotations.

(41) If the contract is to be conditioned on the availability of funds, a clear statement of such condition (see § 1.318 of this chapter);

(42) If the contract is for the Military Assistance Program, the certificate set forth in § 6.703-3 of this chapter.

(43) If the contract is to involve construction work (subject to the DavisBacon Act) at Cape Canaveral, Patrick Air Force Base, or Merritt Island Launch Area, the Employee Compensation clause and Table of Employee Compensation (see § 12.403-5 of this chapter);

(44) Such general contract provisions or conditions as are required by law or by this subchapter.

(45) In accordance with § 1.1208 of this chapter, a provision concerning the use of new material except in the case of construction and a provision concerning the use of former Government surplus property;

(46) If a firm fixed-price contract or fixed-price contract with escalation is to be awarded, the Certificate of Independent Price Determination as required by § 1.115 of this chapter.

(47) When MILSTAMP procedures are applicable to shipments of supplies, a provision setting forth the obligations of the contractor under such procedures (see § 1.1314 of this chapter);

(48) If the contract is for multi-year procurement, the provisions required by § 1.322-2(b) of this chapter; and

(49) Unless contained elsewhere in the solicitation, a statement as follows:

ORDER OF PRECEDENCE (AUGUST 1965)

In the event of an inconsistency between provisons of this solicitation, the inconsistency shall be resolved by giving precedence in the following order: (a) the Schedule; (b) Terms and Conditions of the solicitation; (c) General Provisions; (d) other provisions of the contract, where attached or incorporated by reference; and (e) the Specifications.

The foregoing statement may be modified to change the order or to add or delete items to meet the needs of a particular procurement.

(50) When the procurement involves a set-aside for labor surplus area or small business concerns, the following provision will be placed on the face of the solicitation form or on a cover sheet: This is a ----% set aside for (small business) (labor surplus area) concerns. (Mar. 1964)

(51) A statement that prospective offerors may submit inquiries by writing or calling (collect calls not accepted) Mr. (insert name and address; telephone area code, number, and extension); and

(52) When using DD Form 746, on the face thereof or on a cover sheet, a brief description of the items being procured,

unless the contracting officer considers such to be unnecessary or impractical.

(53) If the contract is for aircraft tires, tubes, tire recapping, or recapping materials, or is for aircraft under which the aircraft contractor is to furnish tires or tubes, a statement as follows (see § 1.323 of this chapter):

Purchase of natural rubber. See the special provision entitled "Purchase of Natural Rubber" requiring contractors to purchase natural rubber from the National Stockpile in connection with defense contracts for aircraft tires, tubes, tire recapping, and recapping material. (May 1964)

(54) The statement in § 2.201 (a) (11) of this chapter regarding full, accurate and complete information, modified for proposals or quotations;

(55) A statement requesting the prospective offeror to list the names and telephone numbers of persons authorized to conduct negotiations;

(56) Pending revision of forms used for soliciting proposals or quotations, a requirement for inclusion of "county" as part of quoter's/offeror's address will be inserted; and

(57) Any requirement for first article approval (see Subpart S, Part 1 of this chapter).

(58) If the contract is for mortuary services, the provision required by § 4.902; and

(59) A statement that prospective offerors should indicate in the offer the address to which payment should be mailed, if such address is different from that shown for the offeror. (Contracting

officers shall include this information in all resultant contracts which are to be administered by a Defense Contract Administration Services Regional Office.) [27 F.R. 1694, Feb. 22, 1962, as amended at 28 FR. 2578, Mar. 16, 1963; 28 F.R. 4884, May 16, 1963; 28 FR. 12554, Nov. 23, 1963; 29 F.R. 2829, Feb. 29, 1964; 29 F.R. 6718, May 27, 1964; 29 F.R. 9749, July 21, 1964; 29 F.R. 14819, Oct. 31, 1964; 30 F.R. 1733, Feb. 9, 1965; 30 F.R. 5972, Apr. 29, 1965; 30 F.R. 6968, May 25, 1965; 30 F.R. 12001, Sept. 21, 1965; 30 F.R. 14083, Nov. 9, 1965; 30 F.R. 14889, Dec. 2, 1965]

(a) The pre-proposal conference is a procedure which may be used, generally in complex negotiated procurements, as a means of briefing prospective offerors after a solicitation has been issued but before offers or proposals are prepared. This procedure may be used when approved at a level higher than the contracting officers.

(b) Such a conference permits the Government to explain or clarify complicated specifications and requirements to interested firms. It may also be used to provide an opportunity for interested firms to examine a model of the equipment being procured, where for reasons such as security or limited quantities, such model can only be shown at a specific time and location.

[30 F.R. 14084, Nov. 9, 1965] § 3.504-2

Procedure.

(a) Where it is determined to be in the best interests of the Government to hold a pre-proposal conference, the contracting officer shall make the necessary arrangements and shall notify all those to whom solicitations have been issued as to the time, place, and general nature of the proposed conference. Such a determination may be made as a result of questions and problems raised by prospective offerors. Adequate notice shall be given to prospective offerors so that all who wish to may arrange for representation. The notice shall define as explicitly as possible the nature and scope of the conference. If time permits, prospective offerors should be asked to submit any questions they may have in advance, in order to give the purchasing office time to prepare and to make the conference as fruitful as possible.

(b) The pre-proposal conference shall be conducted by the contracting officer or his representative, and attended by technical and legal personnel as appropriate.

(c) All prospective offerors shall be furnished identical information in connection with the proposed procurement. Remarks and explanations at the conference shall not qualify the terms of the

solicitation and specifications. All conferees shall be advised that unless the solicitation is amended in writing it will remain unchanged and that if an amendment is issued, normal procedures relating to the acknowledgment and receipt of solicitation amendments shall be applied. A complete record shall be made of the conference.

[30 F.R. 14084, Nov. 9, 1965]

§ 3.505 Amendment of request for proposals and request for quotationsprior to closing date.

(a) If after issuance of a request for proposals or quotations, but before the closing date of their receipt, it becomes necessary to make significant changes in quantity, specifications, or delivery schedules, any change in closing dates, or to correct a defect or ambiguity, such change shall be accomplished by issuance of an amendment to the request, whether or not a pre-proposal conference is held. DD Form 746s (see § 16.203 of this chapter) shall be used for amending a request for proposals. Requests for quotations may be amended by letter.

(b) When it is considered necessary to issue an amendment to a request for proposals or request for quotations, the period of time remaining before closing and the need for extending this period by postponing the time set for closing must be considered Where only a short time remains before the time set for closing, consideration should be given to notifying offerors or quoters of an extension of time by telegram or telephone. Such notification should be confirmed in the amendment.

(c) Any information given to a prospective offeror or quoter concerning a request for proposals or request for quotations shall be furnished promptly to all other prospective offerors or quoters as an amendment to the request, whether or not a pre-proposal conference is held, if such information is necessary to offerors or quoters in submitting proposals or quotations on the request, or if the lack of such information would be prejudicial to uninformed offerors or quoters. No award shall be made on a request for proposals unless such amendment thereto has been issued in sufficient time to permit prospective offerors to consider such information in submitting or modifying their proposals. [30 F.R. 14084, Nov. 9, 1965]

§ 3.506 Late proposals and modifica. tions.

(a) Proposals which are received in the office designated in the requests for proposals after the time specified for their submission are "Late Proposals." Late proposals shall not be considered for award, except under the circumstances set forth in § 2.303 of this chapter relating to late bids or where only one proposal is received. (For the purpose of applying the late bid rules to late proposals, unless a specific time for receipt of proposals is stated in the request for proposals, the time for such receipt shall be deemed to be the time for close of business of the office designated for receipt of proposals on the date stated in the request for proposals.) Notwithstanding the provisions of § 1.109 of this chapter, exceptions may be authorized only by the Secretary concerned, and only where consideration of a late proposal is of extreme importance to the Government, as for example where it offers some important technical or scientific breakthrough. To determine the possible existence of such extreme importance, notwithstanding § 2.303-7 of this chapter, all late proposals shall be opened prior to award and if not considered for award shall be returned to the offeror.

(b) In the exceptional circumstance where the Secretary concerned authorizes an exception from paragraph (a) of this section, the contracting officer shall resolicit all firms (including late offerors) which have submitted proposals and are determined to be capable of meeting current requirements. Such resolicitation shall specify a date for submission of new proposals and include the "Late Proposals" provision set forth in paragraph (d) of this section.

(c) The normal revisions of proposals by selected offerors occurring during the usual conduct of negotiations with such offerors are not to be considered as late proposals but shall be handled in accordance with § 3.805-1.

(d) Written requests for proposals shall contain the following provisions.

LATE PROPOSALS (JANUARY 1964)

(a) Proposals and modifications received at the office designated in the request for proposals after the close of business on the date set for receipt thereof (or after the time set for receipt if a particular time is specified) will not be considered unless:

(1) They are received before award is made; and either