digits cover the agency, in which case the agency may use the seventh, eighth, and ninth digits for any purpose desired. Each Federal agency will assign its own billing address code numbers when the seventh, eighth. and ninth digits are used for such purpose.

(e) The tenth digit is the reject number for use in automatic billing operations of the contractors. This number is not assigned by the agency but will be determined by the Federal Supply Schedule, FSC Group 75, Part VII, embossing contractor, or by the GSA regional office embossing the card.

[29 F.R. 15611, Nov. 20, 1964, as amended at 34 F.R. 19977, Dec. 20. 1969]

EFFECTIVE DATE NOTE: Effective October 1, 1976, the provisions of § 101-26.406-2 will be revoked, see 41 FR 17732, April 28, 1976. § 101-26.406-3 Billing address.

The billing address is the name of the agency and the address to which contractors should send statements covering the purchases of supplies and services by the user of the Standard Form 149, U.S. Government National Credit Card. The number of lines in the billing address is limited to three, and shall always be the second, third, and fourth embossed lines.

EFFECTIVE DATE NOTE: Effective October 1, 1976, the provisions of § 101-26.406-3 will be revoked, see 41 FR 17732, April 28, 1976. § 101-26.406-4 Administrative control

of credit cards.

(a) When it is determined by Federal agencies that it is essential to maintain administrative control of Standard Form 149, U.S. Government National Credit Card, cr for any other justifiable reason, any or all of the following controls may be utilized:

(1) The tag or registration number of the vehicle may be embossed on the fifth line of the credit card so that it may be used only for supplies and services for the vehicle bearing the tag or registration number marked thereon. If no number is shown, the credit card may be used for supplies and services for any properly identified U.S. Government vehicle, boat, or small aircraft.

(2) An expiration date (month and year) may be embossed on the extreme right side of the fourth line of the credit card.

(3) An agency series mark to identify the credit card as a replacement may be

embossed on the extreme right side of the fifth line of the credit card.

(b) Agencies should establish procedures to provide for the:

(1) Prompt notification to oil companies of lost or stolen credit cards;

(2) Issuance of a replacement in the event a credit card is lost, stolen, or damaged;

(3) Destruction of damaged credit cards which have been replaced, and of lost or stolen credit cards which have been recovered (if already reported and replaced); and

(4) Destruction of credit cards bearing an expiration date that has passed or bearing an invalid license tag number; e.g. when the tag has expired or is destroyed.

[35 F.R. 6708, Apr. 28, 1970 as amended at 37 F.R. 18535, Sept. 13, 1972]

EFFECTIVE DATE NOTE: Effective October 1, 1976, the provisions of $ 101-26.406-4 will be revoked, see 41 FR 17732, April 28, 1976. § 101-26.496-5 Methods of obtaining Standard Form 149: U.S. Government National Credit Card.

(a) Orders for 50 or more. (1) Agency purchase orders for 50 or more of embossed Standard Form 149 shall be forwarded to the embossing contractor as provided in Federal Supply Schedule, FSC Group 75, Part VII.

(2) The embossing contractor will bill ordering agencies directly.

(3) The type font to be used when embossing Standard Form 149 shall conform with the requirements of the Federal Supply Schedules contract.

(b) Requisition for 49 or less.

(1) Agency requisitions for 49 or less of embossed Standard Form 149 shall be forwarded to the Federal Supply Service, Motor Equipment Services Division, of the nearest GSA regional office.

(2) Each agency shall furnish the billing code and billing address and, where appropriate, the vehicle tag or registration number, for each Standard Form 149 requisitioned. Such information shall accompany the requisition and shall be limited to five lines with no more than 22 characters (including spaces) per line. Where appropriate, the expiration date and the agency series mark shall also be included in the requisition.

(3) GSA will bill requisitioning agencies or will accept cash payment.

(4) The type font to be used when embossing Standard Form 149 shall con

form with the requirements of the Federal Supply Schedule contract.

[29 F.R. 15611, Nov. 20, 1964, as amended at 31 F.R. 15571. Dec. 10. 1966: 35 F.R. 6708. Apr. 28, 1970; 41 FR 17732, Apr. 28, 1976]

EFFECTIVE DATE NOTE: The provisions of paragraphs (a) (3), (b) (1) and (4) will become effective October 1, 1976. For the convenience of the user the superseded text of paragraph (b) (1) appears below.

A waiver has been issued by the Government Printing Office to GSA for the procurement of the printing of the Standard Form 149.

§ 101-26.407 Procurement of security cabinets by Government fixed-price prime contractors and subcontractors. [36 F.R. 2600, Feb. 9, 1971]

§ 101-26.407-1 General.

(a) Based on recommendations of the Interdepartmental Committee on Internal Security, it has been determined essential that security cabinets be made available for purchase under Federal Supply Schedule contracts by all Government contractors and subcontractors (at any tier) who are required to maintain custody of security classified records and information under any type of contract or subcontract.

(b) In accordance with section 201 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 481), the Administrator of General Services has determined that the purchase of security cabinets under Federal Supply Schedule contracts by Government prime contractors and their subcontractors for the protection of security classified information represents procurement for the "use of executive agencies" under the statute.

§ 101-26.407-2 Applicability.

The provisions of this § 101-26.407 apply only to the purchase of security cabinets under Federal Supply Schedule contracts by fixed-price prime contractors and by first and lower tier subcontractors under any type of contract.

They do not apply to the purchase of security cabinets under Federal Supply Schedule contracts by cost-type prime contractors. Such purchases are subject to the requirements of Subpart 1-5.9. § 101-26.407-3 Procedure for ordering security cabinets.

(a) Cognizant security offices will arrange to notify prime contractors and subcontractors who require security cabinets for the protection of security classified information that, subject to the conditions described in this § 101-26.4073 and in accordance with procedures included in Federal Supply Schedules, they may purchase such cabinets under the applicable Federal Supply Schedule

contracts.

(b) Purchase orders for security cabinets under Federal Supply Schedule contracts submitted by fixed-price prime contractors or subcontractors under any type of contract shall contain a statement that such cabinets are needed for housing Government security classified information and that the purchase of such cabinets is required to comply with the security provision of a Government contract.

(c) A statement substantially as follows shall be placed on orders for security cabinets placed with Federal Supply Schedule contractors:

In the event of any inconsistency between the terms and conditions of this order and those of your Federal Supply Schedule contract, the latter will govern.

[31 F.R. 10923, Aug. 17, 1966, as amended at 36 F.R. 2600, Feb. 9, 1971] § 101-26.407-4

cabinets.

Use of security

Each purchase of more than $250 per line item made from a multiple-award Schedule by agencies required to use such Schedules shall be made at the lowest delivered price available under the Schedule unless the agency fully justifies the purchase of a higher priced item. Purchases that cost $250 or less per line item should also be made at the lowest delivered price under the Schedule: however, justification for the purchase of higher priced items is not required. Agencies using schedules but which are not required to use such schedules are apprised of the advisability of fully justifying purchases costing more than $250 per line item when such items are not the lowest priced available on the Schedule.

[37 F.R. 22795, Oct. 27, 1972]

§ 101-26.408-3 Justifications.

(a) Justifications of purchases made at prices cther than the lowest delivered price available should be based on specific or definitive needs which are clearly associated with the achievement of program objectives. Mere personal preference cannot be regarded as an appropriate basis for a justification. Justifications should be clear and fully expressed. Recital of, or reference to, one of the factors set forth in paragraph (b) of this § 10126.408-3 is not sufficient.

(b) The following examples illustrate factors that may be used in support of justifications, when used with assertions that are fully set forth and documented.

(1) Special features of one item, not provided by comparable items, are required in effective program performance.

(2) An actual need exists for special characteristics to accomplish identified

tasks.

(3) It is essential that the item selected be compatible with items or systems already existing within using offices.

(4) Trade-in considerations favor a higher priced item and produce the lowest net cost.

(5) Time of delivery in terms of actual need cannot be met by a lower priced contractor.

(6) Justifications which incorporate features of the following examples must be based on objective factors which adequately establish the advantages inherent in purchase of the higher priced item when:

(1) Probable life of the item selected, as compared to that of a comparable item at a lower cost, is sufficiently greater so that the additional purchase price is economically warranted.

(1) Warranty conditions of a higher priced item are sufficiently advantageous to justify the added cost.

(i) Greater maintenance availability, lower overall maintenance costs, or the elimination of problems anticipated with respect to machines or systems, especially at isolated use points, will produce longrun savings greater than the difference in purchase prices. 130 FR. 11603, Sept. 10. 1965]

§ 101-26.408-4 Placement of orders against multiple-award schedules.

(a) The possibilities of selectivity among items listed in multiple-award Federal Supply Schedules do not relieve agencies of the responsibility to place orders at the lowest delivered price available (after application of the Buy American differential, when appropriate) unless there are factors for consideration which definitely justify the purchase at other than the lowest price. The responsibility exists whether the value of an order is more or less than the applicable open market limitation. When purchases are made at other than the lowest delivered price available under the applicable Federal Supply Schedule, the delivery order file or other appropriate file should contain a complete justification for the purchase. When an agency, pursuant to an agreement with GSA, submits a request for GSA to purchase an item under a Federal Supply Schedule which is other than the lowest priced item on the schedule, the request shall be accompanied by a complete justification to support the procurement. Justification for such purchases need not accompany requests from overseas activities for overseas deliveries. However, GSA will construe such requests to mean that the justification is in fact in the ordering installation's file.

(b) Where two or more items at the same delivered price will meet the order

ing agency's needs equally well, selection should be based on preference for the item of a labor surplus crea concern or a small business concern. In making a selection on that basis, the same order of priority shall be used as that established in paragraph (a) of FPR 1-2.407-6, Equal low bids. In making such a selection. the information in the Federal Supply Schedule as to the business size status or points of production of contractors may be used for preliminary, but not conclusive, determination as to whether small business or labor surplus area policies might be furthered through preferential award of the order. The extent to which additional and current information is obtained by an ordering agency is left to the discretion of the agency, taking into account the size of the order and other factors which the agency considers pertinent.

[30 FR 11603 Sept 10 1965, as amended at 41 FR 6774, Feb. 13, 1976]

§ 101-26.408-5 Price reductions during contract period.

Each Federal Supply Schedule contract involving multiple awards contains a clause entitled "Price Reductions." In addition, Federal Supply Schedules contain an instruction to using agencies entitled "Notice of Purchase at Reduced Price," which provides that GSA contracting officers be notified of such reductions. Agencies shall issue appropriate implementing procedures to ensure that such notifications are promptly furnished to GSA contracting officers. [41 FR 6774, Feb. 13, 1976]

§ 101-26.409 [Reserved]

(a) With respect to the procurement of new sedans, station wagons, and light trucks other than those to be used for law enforcement, it shall be the policy to procure standard vehicles (unless other than standard vehicles are specifically required) as follows: Sedans, type I. class A, subcompact, or class B, compact; station wagons, type I, subcompact/compact passenger vehicles as defined in Federal Standard No. 122; and light trucks as defined in Federal Standaids Nos. 292 and 307. (Federal Standards Nos. 122, 292, and 307 as used in this section mean the latest editions and include any interim standard being used temporarily as a replacement.)

(1) Standard passenger vehicles as defined in Federal Standard No. 122 are considered to be completely equipped for ordinary operation and are subject to the statutory maximum price limitation.

(2) Items (vehicles) included in Federal Standard No. 122 other than those listed as standard are considered to be equipped with additional systems and equipment for passenger vehicles.

(b) Requisitions submitted to GSA for new passenger vehicles other than type I standard passenger vehicles shall contain a certification by the agency head or his designee that the larger vehicle requisitioned is for law enforcement or otherwise essential to the agency's mission. The certification may be placed on GSA Form 1781, Motor Vehicle Requisition-Delivery Order-Invoice; military interdepartmental purchase request (MIPR); other acceptable requisitioning document; or on an appropriate attachment thereto. Agency passenger vehicle requisitions for other than type I vehicles omitting such certification shall be satisfied with the appropriate type I vehicles provided at the discretion of GSA. Agencies requiring other than standard sedans and station wagons shall justify the need for such requirements and shall retain the justification in their files.

(c) Light trucks shall be requisitioned in accordance with provisions of this § 101-26.501 and Federal Standards Nos. 292 (Tables I through VIII) and 307 (Tables I through XI) as applicable. The agency head or his designee shall certify on the GSA Form 1781 or other appropriate document that each light truck requisitioned represents the minimum capacity/performance vehicle which will

satisfy the requirements in consideration of overall safety, economy, and efficiency.

(d) Selection of additional systems or equipment in vehicles shall be made by the requiring agency and shall be based on the need to provide for overall safety, efficiency, economy, and suitability of the vehicle for the purposes intended pursuant to § 101-25.304.

(1) The essentiality of such systems or equipment shall be weighed against the economic factors involved, the potential benefits to be derived therefrom, and the impact on the fuel consumption characteristics of the vehicle.

(2) Additional systems or equipment requested to be purchased by GSA will be construed to have been determined essential for the effective operation of the vehicle involved by the agency head or his designee. Where systems or equipment other than those listed in Federal standards are requested, such systems or equipment shall be considered and treated as deviations pursuant to § 10126.501-3(b).

[39 FR 37379, Oct. 21, 1974]

§ 101-26.501-1

General.

Except as provided for the Department of Defense (DOD) in paragraph (a) of this section, executive agencies shall submit to GSA for procurement their requirements for purchase in the United States of all new passenger motor vehicles (FSC 2310), trucks/truck tractors (FSC 2320), and trailers (FSC 2330) van type (with payload of not less than 5,000 nor more than 50,000 pounds. Specifically included are sedans, station wagons, carryalls, ambulances, buses, and trucks, including trucks with specialized mounted equipment, truck chassis with special purpose bodies, and all van type trailers (with payload of not less than 5,000 nor more than 50.000 pounds.)

(a) DOD shall submit to GSA for procurement its requirements for all commercial-type passenger motor vehicles (FSC 2310), including buses and trucks (FSC 2320) up to 10.000 pounds gross vehicle weight (GVW) except the following:

Buses, convertible to ambulances. Trucks, convertible to ambulances Trucks, 4 x 4, dump, 9,000 GVW with cutdown cab.

(b) When it is determined that specialized requirements for passenger motor vehicles and trucks indicate the need for procurement from sources other than

GSA, a request for waiver justifying the procurement shall be submitted in writing to the General Services Administration (FYP), Washington, DC 20406. GSA will notify agencies in writing whether or not a waiver has been granted. Justification for special purpose trucks may be based on a description of the vehicle having unique characteristics such as a special purpose body or equipment that may require close supervision by agency personnel to ensure proper installation of the equipment by the contractor; e.g., when a medical van is to be equipped with Government or contractor-supplied equirment. Requests for procurement through sources other than GSA will be handled on an individual basis considering the urgency of the need of the requirement and provided full justification is submitted therefor.

[38 FR 2176, Jan. 22, 1973, as amended at 40 FR 57216, Dec. 8, 1975

(a) To achieve maximum benefits and economies, GSA makes five volume procurements of motor vehicles each year as follows:

(1) Two volume procurements of sedans and station wagons of the types covered by Federal Standard No. 122 for civil agencies and by military specifications for Department of Defense activities.

(2) Three volume procurements of light trucks of the types covered by Federal Standard No 307 for civil agencies and of similar types covered by military specifications for Department of Defense activities.

(b) Such volume consolidated purchases are made subsequent to consolidation of requirements in accordance with the dates set forth in § 101-26.5014(a). To obtain the greatest possible savings, approximately 75 percent of an agency's total annual requirements should be included in these volume procurements.

(c) Requirements for (1) sedans, station wagons, and light trucks not covered by Federal Standard No. 122, Federal Standard No. 307, or similar types not covered by military specifications or (2) those covered by such standards and specifications but which are received after the consolidation dates shown in § 101-26.501-4(a) will be consolidated and procured on a monthly basis. Consolidated monthly procurement also will