Subpart 5A-1.71—Criteria for Determining Method of Supply

§ 5A-1.7101 General.

This subpart establishes criteria for guidance in determining when requirements for items needed on a recurring basis should be consolidated for procurement at one or more points, and whether such consolidated requirements should be purchased and stored at redistribution points in advance of immediate need for issue to use points as needs arise; purchased in definite quantities for direct delivery to use points; or contracted for in advance of immediate need under indefinite delivery type contracts covering specific periods and providing for delivery to use points as needs arise. § 5A-1.7102 Definition of use point.

or

The term "use point," as used in this subpart, means that point from which supplies are issued to consumers equipment is placed in use, as distinguished from storage points where supplies and equipment are issued to redistribution points.

§ 5A-1.7103 Basic criteria.

(a) The basic criteria set forth in this subpart are intended to be applied only to the normal recurring needs of the Government and shall be subject to appropriate adjustments in technique when purchase of abnormally large quantities are involved, or requirements involved cover special items for which stocks are maintained in support of a specific activity of any Government agency.

(b) Principles are established governing selection of the appropriate methods of supply to be utilized. However, in applying these criteria to specific items and requirements therefor, appropriate consideration shall be given to any other significant factors not mentioned herein. § 5A-1.7104 Purchase for storage and issue.

The following criteria will govern in determining whether an item can be handled most advantageously through consolidated purchasing for storage and issue to use points:

(a) The items shall be physically adaptable to storage and issue and of such a character that it is feasible to forecast with reasonable accuracy overall requirements of the use points served.

(b) Rate of use and frequency of ordering by use points shall be sufficient to warrant storage and issue.

(c) Rate of deterioration or obsolescence shall be sufficiently low to avoid unnecessary loss.

(d) Price advantage through bulk buying shall be sufficient to render storage and issue more economical, all costs both direct and indirect considered, or conditions exist where any of the following factors require consolidated purchasing of items suitable for storage and issue:

(1) Where close inspection or testing is necessary to assure quality, or where repetitive inspection and test of small lots are prohibitive from the standpoint of cost or potential urgency of need.

(2) Where advance purchase and storage are necessitated by long procurement lead time.

(3) Where an item is of special manufacture or design and is not readily available from commercial sources.

(4) Where an adequate industry distribution system does not exist to assure availability at use points.

(5) Where contracts for production quantities are necessary to secure timely deliveries and advantageous prices.

(6) Where market conditions are such that central procurement is required to secure adequate supply.

§ 5A-1.7105 Consolidated purchase for direct delivery.

The following criteria shall govern in determining whether an item can be most advantageously handled through consolidated purchase for direct delivery to use points:

(a) The items shall be equipment or supply items of such a character that it is feasible to forecast requirements for delivery to specific use points.

(b) The greatest price advantage, both direct and indirect costs considered, shall be obtainable through definite quantity purchasing, or conditions exist where any of the following factors require consolidated purchasing of such items for direct delivery to use points:

(1) Where an item is of special manufacture or design and is not readily available from commercial sources.

(2) Where market conditions are such that central procurement is required to assure adequate supply.

§ 5B-1.101 Establishment of Chapter 5B, General Services Administration Procurement Regulations.

This Chapter 5B of the General Services Administration Procurement Regulations (GSPR) is prescribed by the Commissioner, Public Buildings Service, and is established to provide all Public Buildings Service (PBS) activities with additional uniform operating policies and procedures applicable to the procurement of personal property and nonpersonal services (including construction). § 5B-1.102 Relationship of Chapter 5B to the FPR and Chapter 5.

(a) GSPR Chapter 5B implements and supplements the FPR and GSPR Chapter 5. Implementing material is that which expands upon related FPR and Chapter 5 material. Supplementing material is that for which there is no counterpart in the FPR or Chapter 5.

(b) Material published in the FPR or Chapter 5 becomes effective throughout PBS upon the effective date of the particular FPR or Chapter 5 material. Such material will not be repeated, paraphrased, or restated in Chapter 5B. Therefore, all three must be reviewed to obtain comprehensive coverage of PBSwide procurement operating policies and procedures.

(c) Material in Chapter 5B implements and supplements but does not supersede the FPR or Chapter 5 unless a deviation has been authorized and the deviation is explicitly referenced. In cases of other conflict, or when Chapter 5B contains no related material implementing the FPR or Chapter 5, the FPR or Chapter 5 will govern.

§ 5B-1.103 Applicability.

Chapter 5B applies to all purchases and contracts made by PBS for the procurement of personal property and nonpersonal services (including construction).

§ 5B-1.104 Method of issuance.

(a) All Chapter 5B material deemed necessary for business concerns, and others interested, to understand PBS procurement operating policies and procedures will be published in the FEDERAL REGISTER. Other related material also may be published in the FEDERAL REGISTER When its inclusion will provide a