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Subpart 5A-1.71—Criteria for Deter- (b) Rate of use and frequency of ormining Method of Supply

dering by use points shall be sufficient

to warrant storage and issue. § 5A-1.7101 General.

(c) Rate of deterioration or obsolesThis subpart establishes criteria for cence shall be sufficiently low to avoid guidance in determining when require

unnecessary loss. ments for items needed on a recurring

(d) Price advantage through bulk basis should be consolidated for procure

buying shall be sufficient to render storment at one or more points, and whether

age and issue more economical, all costs such consolidated requirements should

both direct and indirect considered, or be purchased and stored at redistribu

conditions exist where any of the followtion points in advance of immediate need ing factors require consolidated purchasfor issue to use points as needs arise;

ing of items suitable for storage and purchased in definite quantities for di

issue: rect delivery to use points; or contracted

(1) Where close inspection or testing for in advance of immediate need under is necessary to assure quality, or where indefinite delivery type contracts cover

repetitive inspection and test of small ing specific periods and providing for lots are prohibitive from the standpoint delivery to use points as needs arise. of cost or potential urgency of need.

(2) Where advance purchase and stor§ 5A-1.7102 Definition of use point.

age are necessitated by long procurement The term “use point,” as used in this lead time. subpart, means that point from which (3) Where an item is of special mansupplies are issued to consumers

or

ufacture or design and is not readily equipment is placed in use, as distin- available from commercial sources. guished from storage points where sup- (4) Where an adequate industry displies and equipment are issued to redis- tribution system does not exist to astribution points.

sure availability at use points. $ 5A-1.7103 Basic criteria.

(5) Where contracts for production

quantities are necessary to secure timely (a) The basic criteria set forth in this

deliveries and advantageous prices. subpart are intended to be applied only (6) Where market conditions are such to the normal recurring needs of the

that central procurement is required to Government and shall be subject to ap- secure adequate supply. propriate adjustments in technique when purchase of abnormally large quantities

$ 5A-1.7105 Consolidated purchase for are involved, or requirements involved direct delivery. cover special items for which stocks are maintained in support of a specific activ

The following criteria shall govern in ity of any Government agency.

determining whether an item can be (b) Principles are established govern

most advantageously handled through ing selection of the appropriate methods

consolidated purchase for direct delivery of supply to be utilized. However, in

to use points: applying these criteria to specific items

(a) The items shall be equipment or and requirements therefor, appropriate

supply items of such a character that it consideration shall be given to any other is feasible to forecast requirements for significant factors not mentioned herein. delivery to specific use points.

(b) The greatest price advantage, both $ 5A-1.7104 Purchase for storage and

direct and indirect costs considered, shall issue.

be obtainable through definite quantity The following criteria will govern in purchasing, or conditions exist where any determining whether an item can be of the following factors require consolihandled most advantageously through dated purchasing of such items for direct consolidated purchasing for storage and delivery to use points: issue to use points:

(1) Where an item is of special man(a) The items shall be physically ufacture or design and is not readily adaptable to storage and issue and of available from commercial sources. such a character that it is feasible to (2) Where market conditions are such forecast with reasonable accuracy overall that central procurement is required to requirements of the use points served. assure adequate supply.

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

(4) Where quantity is large enough to assure lowest transportation cost, or conversely, where transportation costs for small quantity redistribution are so excessive that it is not feasible to store and issue the item. § 5A-1.7106 Purchase through indefi.

nite delivery type contracts. The following criteria shall govern in determining whether an item can be most advantageously purchased through the medium of indefinite delivery type contracts, as described in § 1-3.405-5 (such as Federal Supply Schedules), covering specific periods and providing for delivery to use points as needs arise:

(a) The item shall be of such a character that:

(1) Handling on a storage and issue basis is not economically sound.

(2) It is either not feasible to forecast definite requirements for delivery to specific use points, or no advantage accrues for doing so.

(b) Industry distribution facilities shall be adequate to serve properly the use points involved.

(c) Price advantage shall be sufficient to warrant the cost involved in maintaining indefinite delivery type contracts, or conditions exist where any of the following factors require handling on that basis:

(1) Where acute competitive bidding problems exist based upon highly technical matters which can best be met by centralizing contracting work.

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

(d) This method of purchase shall be used also when:

(1) Items are proprietary or so highly complex in design, function, or operation as to be noncompetitive.

(2) Technical assistance or service to be furnished by suppliers is a fundamental consideration in use of equipment. $ 5A-1.7107 Local purchase.

Whenever it is not feasible to procure under any of the other methods described in this subpart, procurement shall be made locally by the FSS buying office to which the requirement has been submitted in accordance with applicable procedures.

CHAPTER 5B—PUBLIC BUILDINGS SERVICE,
GENERAL SERVICES ADMINISTRATION

Part
5B-1 General.
5B-2 Procurement by formal advertising.
5B-16 Procurement forms.

PART 5B-1-GENERAL

Sec.
5B-1.000 Scope of part.

Subpart 5B-1.1- Introduction 5B-1.100 Scope. 5B-1.101 Establishment of Chapter 5B,

General Services Administration Procurement Regula

tions. 5B-1.102 Relationship of Chapter 5B to

the FPR and Chapter 5. 5B-1.103 Applicability. 5B-1.104 Method of issuance. 5B-1.105 Exclusions. 5B-1.106 Arrangement. 5B-1.106-1 General plan. 5B-1.106–2 Numbering. 5B-1.106-3 Cross-references. 5B-1.107 Citation. 5B-1.108 Deviation.

Subpart 5B-1.3—General Policies 5B-1.315 Use of liquidated damages pro

visions in procurement con

tracts. 5B-1.315-2 Policy.

AUTHORITY: The provisions of this Part 5B-1 issued under sec. 205 (C), 63 Stat. 390, 40 U.S.C. 486 (C); and 41 CFR 5-1.101(c), 28 F.R. 4559.

SOURCE: The provisions of this part 5B-1 appear at 28 F.R. 5456, June 4, 1963; 28 F.R. 7095, July 11, 1963, unless otherwise noted.

$ 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

(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

$ 5B-1.000 Scope of part.

This part describes the method by which the Public Buildings Service implements and supplements the Federal Procurement Regulations (Chapter 1 of Title 41, Code of Federal Regulations) and the GSA-wide procurement policies and procedures, Chapter 5 of the General Services Administration Procurement Regulations. In addition, it contains policies and procedures which implement and supplement Chapter 1 and Chapter 5.

Subpart 5B-1.1- Introduction & 5B-1.100 Scope.

This subpart establishes Chapter 5B of the General Services Administration Procurement Regulations (41 CFR 5B), states its relationship to the Federal Procurement Regulations (FPR) and Chapter 5 of the General Services Administration Procurement Regulations, and sets forth other introductory information.

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