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logical, comprehensive statement of PBS procurement operating policies and procedures.

(b) Chapter 5B material published in the FEDERAL REGISTER will be published in cumulative form in Chapter 5B of Title 41 of the Code of Federal Regulations (41 CFR Ch. 5B). The FEDERAL REGISTER and Title 41 of the Code of Federal Regulations may be purchased from the Superintendent of Documents, Government Printing Office, Washington 25, D.C.

§ 5B-1.105 Exclusions.

(a) Certain PBS procurement policies and procedures which come within the scope of this chapter nevertheless may be excluded therefrom when there is justification. These exclusions include

the following categories:

(1) Subject matter which bears a security classification.

(2) Policy or procedures which are expected to be effective for a period of less than six months.

(3) Policies or procedures which are effective on an experimental basis for a reasonable period.

(4) Policies or procedures pertaining to other functions of PBS as well as to procurement functions and there is need to make the issuance available simultaneously to all PBS employees concerned.

(5) Where speed of issuance is essential, numerous changes are required, and all necessary changes cannot be made promptly.

(b) Procurement policies and procedures issued in other than the FPR System format under paragraphs (a) (4) and (a) (5), above, will be codified into Chapter 5B at the earliest practicable date, but in any event not later than six months from date of issuance.

§ 5B-1.106 Arrangement.

§ 5B-1.106-1 General plan.

Chapter 5B is divided into parts, subparts, sections, subsections, and further subdivisions as necessary.

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cept that the first digit of the number is either 1, 5, or 5B.

(b) Where Chapter 5B implements a part, subpart, section, or subsection of the FPR or Chapter 5, the implementing part, subpart, section, or subsection of Chapter 5B will be numbered (and captioned) to correspond to the FPR or the Chapter 5 part, subpart, section, or subsection.

(c) Where Chapter 5B supplements the FPR or Chapter 5 and thus deals with subject matter not contained in the FPR or Chapter 5, the numbers 70 through 89 will be assigned to the respective supplementing parts, subparts, sections, or subsections.

(d) Where the subject matter contained in a part, subpart, section, or subsection of the FPR or Chapter 5 requires no implementation, Chapter 5B will contain no corresponding part, subpart, section, or subsection number. Thus, there may be gaps in the Chapter 5B series of part, subpart, section, or subsection numbers. In such cases, reference is made to the FPR and Chapter 5 for policy and procedure applicable throughout PBS.

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identified as "GSPR" followed by the section number. For example, this paragraph could be identified in a memorandum as "GSPR 5B-1.107(b)."

§ 5B-1.108 Deviation.

(a) The term "deviation" as used in this Chapter 5B is defined in the same manner as described in § 1-1.009-1.

(b) In order to maintain uniformity to the greatest extent feasible, deviation by PBS activities from this Chapter 5B will be kept to a minimum and controlled as follows:

(1) Approval of any deviation affecting the programs and operations of two or more PBS Offices will be made only by the Commissioner, PBS. In each instance the file shall disclose the nature of the deviation and the reasons for such special action.

(2) Approval of any deviation will be made only by the appropriate Assistant Commissioner, if the deviation does not affect the programs and operations of any other Office of PBS.

(3) Requests for authority to deviate from Chapter 5B shall be submitted to the appropriate Office of PBS, supported by statements adequate to disclose fully the nature of the deviation and the reasons for special action.

(4) Deviations in classes of cases, authorized under paragraphs (1) and (2) above, will expire, unless extended, 12 months from the date of approval, unless sooner rescinded, without prejudice to any action taken thereunder.

(c) Except as otherwise provided, when a deviation from a Chapter 5B contract form provision is authorized, physical change may not be made in the printed form, but shall be made by appropriate provision in the schedule, specifications, continuation sheet as appropriate.

or

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(a) The rate of liquidated damages to be stipulated in a construction contract shall bear a realistic relationship to the probable damages the Government may be expected to suffer, and shall take into consideration the added costs of contract administration and supervision, interest on the Government's investment, and the net rental the Government would be obligated to pay as a result of construction not being completed on the scheduled date.

(b) The following Central Office and Regional personnel are designated to approve, where justified, the omission of a liquidated damages provision from a construction contract: Assistant Commissioner, Office of Design and Construction; Regional Administrators.

(c) Omission of a liquidated damages provision from a construction contract may be justified when construction consists of repairs, alterations, or improvements, any delay in the completion of which would still permit the occupying agency to continue its normal function in an uninterrupted manner and which would not result in added expense to the Government.

[28 F.R. 11402, Oct. 24, 1963]

PART 5B-2-PROCUREMENT BY

FORMAL ADVERTISING

Subpart 5B-2.2-Solicitation of Bids

Sec. 5B-2.201

5B-2.201-70

5B-2.202

5B-2.202-70

5B-2.205 5B-2.205-4

Preparation of invitations for bids.

Building services.

Miscellaneous rules for solicita-
tion of bids.

Listing of subcontractors.
Bidders mailing lists.

Excessively long bidders mail-
ing lists.

AUTHORITY: The provisions of this Part 5B-2 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-2 appear at 29 F.R. 232, Jan. 9, 1964, unless otherwise noted.

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In addition to the requirements of FPR 1-2.201, the invitation for bids on construction contracts shall include an estimate of the cost of the work to be performed under the contract expressed as a range within which the estimate falls.

§ 5B-2.201-70 Building services.

(a) GSA Form 1467, Invitation, Bid, and Award (Contract for Building Services), and GSA Form 1468, General Provisions (Contract for Building Services), shall be used without limitation as to amount when formal advertising is required in connection with procurement of building services.

(b) Insurance provisions, worked out with the regional Credit and Finance Division, shall be inserted in all invitations for bids for the procurement of building services where the aggregate amount involved is estimated to exceed $5,000.

(c) GSA Form 1714, Equal Opportunity Clause, and GSA Form 1732, Bidder Affiliation and Identifying Data, shall be inserted in the invitation for bids for the procurement of building services where the estimated cost of the work to be performed indicates that the resulting award may exceed $10,000.

(d) GSA Form 1411B, Contractor's Representation Regarding Contingent Fees (Contract for Building Services), shall be inserted in all invitations for bids for the procurement of building services where the aggregate amount involved is estimated to exceed $25,000.

(e) A description of the services to be furnished, the time and place of performance, the period to be covered if a term contract is involved, the requirements and specifications, payment provisions, and other special terms and conditions shall be developed and included in invitations for bids by separate attachment as necessary for each individual case. Bid bonds, performance bonds, or payment bonds should not ordinarily be required. The attachments should be identified in the space provided therefor on the face of GSA Form 1467. The number of calendar days within which the bid is to be accepted should be inserted in the block entitled "BID" before issuance of the invitation.

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(a) Invitations for bids on construction and alteration contracts estimated to cost in excess of $150,000 shall require the bidder to name the principal subcontractors (or his own firm when it will perform the work).

(b) Contracting officers shall determine the work categories for which subcontractors' names are to be submitted. Generally the listing of the categories of work would include plumbing, heating, airconditioning, electrical, elevators, and other general construction categories the value of which is estimated to be at least 31⁄2 percent of the estimated cost of the entire contract. The list of categories of work will be included as part of the Bid Form.

(c) The requirement to list subcontractors may be excluded when it would be clearly inappropriate, for example, if the invitation involves work of only one category. Determinations to exempt

from the requirement shall be documented and retained in the contract file. (d) The following clause shall be included in the Special Conditions:

LISTING OF SUBCONTRACTORS

a. For each of the categories of work contained in the list included as part of the Bid Form, the bidder shall submit the name and address of the firm to whom he proposes to subcontract the work. The list may be submitted with the bid or thereafter by telegraph, mail, or otherwise. If sent separately, the envelope must be sealed, identified as to content, and addressed in the same manner as prescribed for submission of bids. A list submitted after the time set for submission of bids must be delivered to the place designated for receipt of bids no later than the exact time set for bid opening as stated elsewhere in this Invitation for Bids. Failure to submit the list by the time set for bid opening shall cause the bid to be considered nonresponsive except in accordance with Instruction No. 7 of the Instructions to Bidders (Standard Form 22). Except as otherwise provided herein, the successful bidder agrees that he will not have any of the listed categories of work involved in the performance of this contract performed by any subcontractor other than the subcontractor named for the performance of such work.

b. The term "subcontractor" for the purposes of this requirement shall mean an individual or firm who performs active duties on the site, involving construction, fabrication, or installation of materials or items of equipment in connection with one or more of the categories of work contained in the list of subcontractors included as a part of the Bid Form and shall not include suppliers of these items unless listed or so stated in the specifications, or unless the supplier and installer are one individual or firm by reason of construction practice.

c. The bidder may list himself if it is his intention to perform one or more of the listed categories of work. In this case, all personnel performing such work shall be carried on his own payroll. Equipment may be self-owned or leased. If more than one subcontractor will perform a single category of work, the portion to be performed by each shall be specified.

d. Nothing contained in this clause shall be construed as changing the requirement in the General Conditions for the contractor to perform work with his own forces.

e. The Contractor shall be responsible for all work performed by subcontractors.

f. No substitutions for the firms named will be permitted except in unusual situations and then only upon the submission in writing to the Contracting Officer of a complete justification therefor and receipt of the Contracting Officer's written approval.

g. Notwithstanding any of the provisions of this clause, the contracting officer shall have authority to disapprove or reject the employment of any subcontractor he has determined nonresponsible; he shall have the right to require any information concerning the cost of performance of this contract by any subcontractor listed or proposed as a substitute for a listed subcontractor, as well as the right to require any other information he deems necessary concerning any listed subcontractor or subcontractor proposed as a substitute. Imposition of any requirements under this subparagraph shall not give rise to any course of action against the Government by the successful bidder or by any subcontractor engaged or proposed to be engaged hereunder.

h. Nothing contained in this clause shall in itself be construed to create any contract or property rights in the successful bidder or any subcontractor.

i. In the event the bidder fails in connection with this bid (1) to identify the subcontractors as required by subparagraph a, or (2) to comply with subparagraph c if the bidder himself intends to perform one or more listed categories of work, the bid will be rejected as nonresponsive to the invitation.

(e) Each invitation for bids containing the requirement to list subcontractors shall provide for submission of the list within 48 hours (plus 24 hours for each intervening Saturday, Sunday and/or holiday) after the time set for receipt of bids. Accordingly, Standard Form 20, Invitation for Bids (Construction Contract) shall be modified as follows: TIME OF BID SUBMISSION

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