(ii) They are sent by registered mail, or by certified mail for which an official dated post office stamp (postmark) on the original Receipt for Certified Mail has been obtained, or by telegraph; and, it is determined by the Government that late receipt was due solely to delay in the mails, or delay by the telegraph company, for which the offeror was not responsible; or

(iii) If submitted by mail or telegram, it is determined by the Government that the late receipt was due solely to mishandling by the Government after receipt at the Government installation: Provided, That timely receipt at such installation is established upon examination of an appropriate date or time stamp (if any) of such installation, or of other documentary evidence of receipt at such installation (if readily available) within the control of such installation or of the post office serving it.

(b) Offerors using certified mail are cautioned to obtain a Receipt for Certified Mail showing a legible, dated postmark and to retain such receipt against the chance that it will be required as evidence that a late proposal was timely mailed.

(c) The time of mailing of late proposals submitted by registered or certified mail shall be deemed to be the last minute of the date shown in the postmark on the registered mail receipt or registered mail wrapper or on the Receipt for Certified Mail unless the offeror furnishes evidence from the post office station of mailing which establishes an earlier time. In the case of certified mail, the only acceptable evidence is as follows: (1) Where the Receipt for Certified Mail identifies the post office station of mailing evidence furnished by the offeror which establishes that the business day of that station ended at an earlier time, in which case the time of mailing shall be deemed to be the last minute of the business day of that station; or (ii) an entry in ink on the Receipt for Certified Mail showing the time of mailing and the initials of the postal employee receiving the item and making the entry, with appropriate written verification of such entry from the post office station of mailing, in which case the time of mailing shall be the time shown in the entry. If the postmark on the original Receipt for Certified mark on the original Receipt for Certified Mail does not show a date, the offer shall not be considered.

(e) Offerors submitting late proposals or modifications shall be notified in accordance with § 2.303-6 of this chapter, except that the notices provided for therein shall be appropriately modified to relate to the request for proposals and the proposal or modifications thereunder.

(f) The provisions of paragraphs (a) through (c) of this section are also applicable to late quotations. In the case

of a request for quotations, the provision set forth in paragraph (d) of this section will be appropriately modified.

(g) Modifications of proposals (other than the normal revisions of proposals by selected offerors during the usual conduct of negotiations with such offerors) which are received in the office designated in the requests for proposals after the time specified for submission of proposals are "late modifications." Late modifications shall be subject to the rules applicable to late proposals set forth in this section. However, a modification received from an otherwise successful offeror which is favorable to the Government shall be considered at any time that such modification is received. provisions of this section are also applicable to late modifications to quotations.

The

[30 F.R. 14085, Nov. 9, 1965]

§ 3.507-1 Restrictions on disclosure of data in proposals.

(a) Requests for proposals may require the offeror to submit data with his proposal which may include a design or plan for accomplishing the objectives of the procurement. Such data may include information which the offeror does not want disclosed to the public or used by the Government for any purpose other than evaluation of the proposals. Offerors shall mark each sheet of data which they so wish to restrict with the legend set forth below:

This data furnished in response to RFP No. ------, shall not be disclosed outside the Government or be duplicated, used or disclosed in whole or in part for any purpose other than to evaluate the proposal: Provided, That if a contract is awarded to this offeror as a result of or in connection with the submission of such data, the Government shall have the right to duplicate, use, or disclose this data to the extent provided in the contract. This restriction does not limit the Government's right to use information contained in such data if it is obtained from another source (MARCH 1958). Contracting officers shall not refuse to consider any proposal merely because data submitted with that proposal is so marked. Data so marked shall be used

only to evaluate proposals and shall not be disclosed outside the Government without the written permission of the offeror except under the conditions provided in the legend. If it is desired to duplicate, use, or disclose the data of the offeror to which the contract is awarded, for purposes other than to evaluate the proposal, the contract should so provide in accordance with § 9.202-3(d) of this chapter. See § 9.201 of this chapter for a description of "data" and Subpart B, Part 9 of this chapter, in general, for the policy, instructions, and contract clauses with respect to the acquisition and use of data.

(b) The provisions in paragraph (a) of this section are also applicable to quotations. In the case of a request for quotations, the legend in paragraph (a) of this section shall be appropriately modified.

[30 F.R. 14085, Nov. 9, 1965]

§ 3.507-2

Disclosure of information during the pre-award or pre-acceptance period.

(a) General. After receipt of proposals or quotations, no information contained in any proposal or quotation regarding the number or identity of the offerors shall be made available to the public, or to anyone within the Government not having a legitimate interest therein, except in accordance with § 3.508(a).

(b) Equal consideration and information to all prospective contractors. Discussions with prospective contractors regarding a potential procurement and the transmission of technical or other information shall be conducted only by the contracting officer, his superiors having contractual authority or others specifically authorized. Such personnel shall not furnish any information to a potential supplier which alone or together with other information may afford him an advantage over others. However, general information which would not be prejudicial to others may be furnished upon request e.g., explanation of a particular contract clause or a particular condition of the schedule. When necessary to clarify ambiguities, or correct mistakes or omissions, an appropriate amendment to the solicitation shall be furnished in a timely manner

to all to whom the solicitation has been furnished (see § 3.505).

[30 F.R. 14085, Nov. 9, 1965]

§ 3.508 Information to unsuccessful offerors.

(a) Pre-award notice of unacceptable offers. In any procurement in excess of $10,000 in which it appears that the period of evaluation of proposals is likely to exceed 30 days or in which a limited number of suppliers have been selected for additional negotiation (see § 3.8051), the contracting officer, upon determination that a proposal is unacceptable, shall provide prompt notice of that fact to the source submitting the proposal. Such notice need not be given where disclosure will in some way prejudice the Government's interest or where the proposed contract is:

(1) For subsistence;

(2) Negotiated pursuant to 10 U.S.C. 2304 (a) (4), (5), or (6) (see §§ 3.204, 3.205, or 3.206);

(3) Negotiated with a foreign supplier when only foreign sources of supplies or services have been solicited; or

(4) To be awarded within a few days and notice pursuant to paragraph (b) of this section would suffice.

In addition to stating that the proposal has been determined unacceptable, notice to the offeror shall indicate, in general terms, the basis for such determination and shall advise that, since further negotiation with him concerning this procurement is not contemplated, a revision of his proposal will not be considered.

(b) Post-award notice of unaccepted offers. (1) Promptly after making all awards in any procurement in excess of $10,000, the contracting officer shall give written notice to the unsuccessful offerors that their proposals were not accepted, except that such notice need not be given where notice has been provided pursuant to paragraph (a) of this section or the contract is for subsistence, or is negotiated pursuant to 10 U.S.C. 2304(a) (4), (5), or (6) (see §§ 3.204, 3.205, or 3.206); or is negotiated with a foreign supplier when only foreign sources of supplies or services have been solicited. Such notice shall also include:

(1) The number of prospective contractors solicited;

(ii) The number of proposals received; (iii) The name and address of each offeror receiving an award;

(iv) The items, quantities, and unit prices of each award: Provided, That, where the number of items or other factors makes the listing of unit prices impracticable, only the total contract price need be furnished; and

(v) In general terms, the reasons why the offeror's proposal was not accepted, except where the price information in subdivision (iv) of this subparagraph readily reveals such reason, but in no event will an offeror's cost breakdown, profit, overhead rates, trade secrets, manufacturing processes and techniques, or other confidential business information be disclosed to any other offeror. Additional information as to why an offeror's proposal was not accepted should be provided to the offeror upon his request to the contracting officer, subject to the limitation in subdivision (v) of this subparagraph.

(2) In procurements of $10,000 or less and subject to the exceptions in subparagraph (1) of this paragraph, the information described in that subparagraph shall be furnished to unsuccessful offerors upon request.

(c) Classified information. Classified information shall be furnished only in accordance with regulations governing classified information.

[30 F.R. 14085, Nov. 9, 1965]

§ 3.509 Protests against award.

Protests against awards of negotiated procurements shall be treated substantially in accordance with § 2.407-9 of this chapter.

[30 F.R. 14086, Nov. 9, 1965]

§ 3.510 Disclosure of mistakes after award.

When a mistake in a contractor's proposal is not discovered until after award, the authority to correct mistakes contained in § 2.406-4 of this chapter may be utilized in accordance with the limitations and procedures set forth therein. [30 F.R. 14086, Nov. 9, 1965]

Subpart F-Small Purchase and Other

Simplified Purchase Procedures SOURCE: The provisions of this Subpart F appear at 30 F.R. 5972, Apr. 29, 1965, unless otherwise noted.

It

This subpart sets forth simplified procedures for the procurement of (a) supplies and nonpersonal services the aggregate amount of which does not exceed $2,500, and (b) construction, the aggregate amount of which does not exceed $2,000, both of which are referred to in this subpart as "small purchases." also applies to certain other supplies and services. This subpart does not preclude the use of a negotiated two-party formal contract for procurements not in excess of $2,500; for example, where the procurement is classified or requires specific contract provision relating to technical inspection or test, specification changes, Government-furnished property, insurance, patents, price adjustments, or the like. When the total cost of services to repair Government equipment does not exceed $2,500, such services may be obtained by purchase order or other appropriate small purchase method, regardless of the value of the Government equipment being repaired (see § 3.608-2(b) (1) (viii) . Procurements of supplies and services or construction initially estimated to exceed $2,500 or $2,000, respectively, shall not be made by the small purchase method, even though resulting awards do not exceed such amounts.

As used in this subpart, the following terms have the meanings set forth below.

(a) "Bulk funding concept" means a system whereby a contracting officer receives authorization from a fiscal and accounting officer to obligate funds on purchase documents against a specified lump sum of funds reserved for the purpose for a specified period of time rather than obtaining individual obligational authority on each purchase document.

(b) "Local purchase" means the authorized purchase of materials, supplies, and services by an installation for its own use or the use of an installation or activity logistically supported by it. Local purchase is not limited to the immediate geographical area in which the purchasing installation is located.

(a) All purchases covered by this subpart shall be accomplished by negotiation and shall cite the appropriate subparagraph of 10 U.S.C. 2304(a) in accordance with Subpart B of this part. Such purchases shall be made only when requirements cannot be satisfied by procurement in accordance with Part 5 of this chapter. The contracting officer shall use the purchase method covered by this subpart which he determines to be most suitable to the immediate requirement and most efficient and economical. Simplified procedures may be used in procurements from Government established sources, if authorized by the basic contract or concurred in by the source. These procedures shall not be used for inserting paid advertisements in newspapers or magazines § 1.1002-6 of this chapter).

(see

(b) Requirements aggregating more than $2,500 shall not be broken down into several purchases which are less than $2,500 merely for the purpose of permitting negotiation under the small purchase procedures authorized by this subpart. Related items (such as small hardware items or spare parts for vehicles) may be included in one solicitation, and the award made on "all or none" basis. In such cases, suppliers shall be advised of this award procedure when quotations are requested.

(c) The "bulk funding" concept shall be used to the maximum extent practicable to reduce processing delays, double handling, and documentation. Bulk funding is particularly appropriate when numerous purchases using the same type of funds are to be made during a given period.

(d) Installation or activity transportation facilities may be used for delivery from local suppliers to the purchasing installation only after consideration of the following methods:

(1) Supplier delivery;

(2) Common carrier;
(3) Parcel post; and
(4) Mail indicia.

(e) Inspection procedures for small purchases shall be in accordance with § 14.106 of this chapter. See also § 14.204 of this chapter.

§ 3.604 Competition in small purchases. § 3.604-1 Purchases not in excess of $250.

Small purchases not exceeding $250 may be accomplished without securing competitive quotations where the prices are considered to be reasonable, but such purchases shall be distributed equitably among qualified suppliers. Records of purchases of $250 or less need not include justification for soliciting only a single source or a justification explaining how prices were determined to be reasonable. § 3.604-2 Purchases in excess of $250 but not in excess of $2,500.

Reasonable solicitation of quotations from qualified sources of supply shall be made to assure that the procurement is to the advantage of the Government, price and other factors considered, including the administrative cost of the purchase. Generally, solicitation shall be limited to three suppliers and, to the maximum extent possible, shall be restricted to the local trade area. When prices are solicited from three suppliers dealing in the general category of items required and only one quotation is received, it is not necessary to solicit additional quotations if the price received is considered fair and reasonable. Quotations shall generally be solicited orally. Written solicitations shall be used only where (a) the suppliers are located outside the local area, (b) special specifications are involved, (c) a large number of items are included in a single proposed procurement, or (d) obtaining oral quotations is not considered economical. Reasonableness of proposed prices may be established by comparison with previous purchases, current price lists, catalogs, advertisements, or by any other appropriate method. Where these informational media are not available, reasonableness of price may be based on & comparison with similar items in a related industry or the contracting officer's personal knowledge of the item being procured. Although the contracting officer must determine that prices are fair and reasonable, written justification explaining how prices were determined to

A blanket purchase agreement is a U simplified method of filling anticipated I repetitive needs for small quantities of I supplies or services by establishing "charge accounts" with qualified sources of supply. Blanket purchase agreements are designed to reduce administrative costs in accomplishing small purchases by eliminating the need for issuing individual purchase documents.

- §3.605-2 Limitation on use.

Blanket purchase agreements may be used only within the following limitations:

(a) No single call issued against a blanket purchase agreement may exceed $2,500, except for subsistence items, in which case the Examination of Records clause in § 7.104-15 of this chapter shall be included in the agreement; and

(b) The maximum period of time covSered by the agreement shall not exceed one year.

§ 3.605-3 Establishment of blanket purchase agreements.

(a) Alternate sources. To the extent practicable, blanket purchase agreements for items of the same type should be placed concurrently with more than one supplier. All competitive sources should be given an equal opportunity to furnish supplies or services under such agreements.

(b) Form. (1) Except as provided in subparagraph (2) of this paragraph, blanket purchase agreements shall be prepared and issued on DD Form 1155 (Order for Supplies or Services). The "General Provisions of Purchase Order" either on the DD Form 1155r or on the reverse of the DD Form 1155 shall be used. Other applicable provisions of the blanket purchase agreement shall be set forth on the DD Form 1155c (Schedule/ Continuation Sheet).

(2) Blanket purchase agreements issued by the Defense Personnel Support Center may be prepared on its form "Order for Subsistence."

(c) Numbering. A basic number in the informal numbering series of the purchasing office shall be assigned to each blanket purchase agreement for the entire effective period. Each call against a blanket purchase agreement shall be appropriately identified.

(d) Accounting data. Blanket purchase agreements need not cite any accounting data so that purchases utilizing different appropriation data may be made under the same agreement.

(e) Negotiation authority. The Schedule of each agreement shall be annotated as follows:

The issuance of individual requests against this blanket purchase agreement will be made under the authority of 10 U.S.C. 2304(a)(3), 10 U.S.C. 2304 (a) (6), or in the case of subsistence 10 U.S.C. 2304 (a) (3), 10 U.S.C. 2304 (a) (6), or 10 U.S.C. 2304 (a) (9).

This annotation shall not be duplicated on forms used to document individual calls, although the specific authority for the call may be cited therein.

(f) Terms and conditions. Blanket purchase agreements shall contain the following provisions:

(1) Description of agreement-a statement that the supplier shall furnish supplies or services, described therein in general terms, if and when requested by the contracting officer or his authorized representative during a specified period and within a stipulated aggregate amount, if any. Blanket purchase agreements may be limited to specific items or commodity groups or the scope of the agreement may encompass all items that the supplier is in a position to furnish.

(2) Extent of obligation-a statement that the Government is obligated only to the extent of authorized calls actually placed against the blanket purchase agreement.

(3) Pricing a statement that the prices to the Government shall be as low as, or lower than those charged the supplier's most favored customer, in addition to any discounts for prompt payment.

(4) Call limitation-a statement that no individual call under the agreement shall exceed 2,500 (except for subsistence).

(5) Notice of individuals authorized to place calls and dollar limitations-a provision that a list of names of individuals