(b) Deviation from the FPR and Chapter 5 will be processed in accordance with § 5-1.109(b). In order to maintain uniformity to the greatest extent feasible, deviation by DMS activities from this Chapter 5C will be kept to a minimum and controlled as follows: (1) Deviation will be made only after prior approval by the Commissioner, DMS. (2) Requests for authority to deviate from Chapter 5C shall be submitted to the Commissioner, DMS, supported by statements adequate to disclose fully the nature of the deviation and the reasons for special action. (3) Deviations authorized under subparagraph (1), above, will expire, unless extended, 12 months after the date of approval, or unless sooner rescinded, all without prejudice to any action taken thereunder. (c) Except as otherwise authorized, when a deviation from a Chapter 5C 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 specification, or continuation sheet appropriate. as Subpart 5C-1.3-General Policies § 5C-1.310 Responsible prospective contractor. § 5C-1.310-6 Determination of responsibility. DMS contracting activities shall notify each bidder determined not to be responsible, by letter, signed by the contracting officer, after clearance with the Director or Deputy Director, Materials Division, or the Director, Industrial Equipment Division, or the Director, Emergency Programs Division, and legal counsel as appropriate, of the reasons for rejecting his bid. § 5C−1.315 Use of liquidated damages provisions in procurement contracts. § 5C-1.315-2 Policy. A liquidated damages provision shall not be used in supply or service contracts without the prior approval of the Director or Deputy Director, Materials Division, DMS. Subpart 5C-2.4-Opening of Bids and Award of Contract § 5C-2.407 § 5C−2.407–8 Award. Protests against award. When oral protests are received, the person making the protest shall be requested to submit the protest in writing, stating therein his interest in the matter. Any protest of award received shall be referred to the contracting officer for preparation of a reply and shall normally be processed as follows: (a) Protests before award. When a protest is received prior to making an award, no award shall be made pending resolution of the protest, except where the items to be procured are urgently required or if it is otherwise in the best interests of the Government to do so; provided, however, that no awards under such circumstances shall be made without advice from the appropriate legal counsel and the approval of the Director or Deputy Director, Materials Division, or the Director, Emergency Programs Division, or the Regional Director, DMS, as appropriate, or higher authority. When pro (b) Protests after award. tests are received after award has been made, the contracting officer shall develop the facts in the case and prepare a reply to the protest in letter form for the signature of the Director or Deputy Director, Materials Division, or the Director, Emergency Programs Division, or the Regional Director, DMS, as appropriate. Such replies must be concurred in by legal counsel. § 5C-2.407-70 Award when only one bid is received. When only one bid is received in response to an invitation for bids, such bid may be considered and accepted if (a) the specifications used in the invitation were not restrictive, (b) adequate competition was solicited, (c) the price is reasonable, and (d) the bid is otherwise in accordance with the invitation for bids and governing requirements. PART 5C-3-PROCUREMENT BY Subpart 5C-3.4-Types of Contracts § 5C−3.450 Oral commitments. (a) Contracts for the procurement of rubber and cordage fibers may be negotiated by telephone at the market price prevailing at the time of negotiation. Oral commitments are essential in this type of procurement because of rapid price fluctuations occurring in the worldwide marketing and distribution system peculiar to these commodities. (b) The contracting officer shall arrange immediately to reduce each such oral commitment to writing, using approved GSA forms. (Sec. 205 (c), 63 Stat. 390, 40 U.S.C. 486 (c); 41 CFR 5-1.101 (c), 28 F.R. 4559) [28 F.R. 7837, Aug. 1, 1963] § 5C–6.7001 Use of American Flag vessels. All DMS contracts for the procurement of commodities which are to be transported on ocean vessels shall contain the following provisions: USE OF AMERICAN FLAG VESSELS Any materials, commodities or equipment required under this contract which are to be transported on ocean vessels shall be transported in accordance with the provisions of Section 901(b) of the Merchant Marine Act, 1936, as amended (68 Stat. 832, 46 U.S.C. 1241-1246). (Implements sec. 901(b), 68 Stat. 832; 46 U.S.C. 1241–1246) § 5C–6.7002 Restrictive Charter clause. All DMS contracts for the procurement of commodities which are to be transported on ocean vessels shall contain the following Restrictive Charter clause: RESTRICTIVE CHARTER CLAUSE (a) The Contractor agrees to include the following Restrictive Charter clause in any charter party agreement entered into by it for the transportation on foreign flag vessels of the material purchased hereunder: "The vessel will not enter any Communist Far East Port until after sixty days from the date of completion of discharge of the entire cargo under this charter. In the event of failure to comply with said agreement, twenty-five percent of the freight charges for ocean transportation hereunder will not be earned. Twenty-five percent of the freight charges payable hereunder will be withheld by the charterer until the owner or his authorized agent submits evidence satisfactory to the charterer that the vessel has not entered any Communist Far East Port until after the expiration of the sixtyday period following such discharge under the charter, and in the absence of such evidence, the withheld portion of the charges will not be paid." The Contractor further agrees to notify the vessel owner, or his authorized agent, that in the event of violation of the provisions of said clause all vessels of the owner may be barred from further chartering for the transportation of cargoes owned by or. destined for the Government of the United States of America. (b) Promptly after expiration of the sixtyday period provided in the Restrictive Charter clause stated in paragraph (a), above, the Contractor, on the basis of the evidence furnished it by the vessel owner or his authorized agent, shall determine whether the vessel has complied with the above Restrictive Charter clause. If the Contractor determines that the Restrictive Charter clause has been complied with, the Contractor shall pay to the owner of the vessel or his authorized agent the aforesaid withheld twentyfive percent. If the Contractor determines that said Restrictive Charter clause has not been complied with, the Contractor shall notify the owner of the vessel or his authorized agent of such determination of violation of the clause and shall afford said owner or his authorized agent thirty (30) days within which to furnish to the Contractor any additional evidence which will show to the satisfaction of the Contractor that the Restrictive Charter clause has not been violated. During said thirty-day period the Contractor shall continue to withhold the aforesaid twenty-five percent of the freight charges. If upon the expiration of said thirty-day period the owner of the vessel or his authorized agent has not established proof satisfactory to the Contractor of compliance with said Restrictive Charter clause, the Contractor shall advise the owner of the vessel or his authorized agent of such final determination and shall thereafter promptly pay to the Government the full amount of the freight charges withheld by the Contractor pursuant to the aforesaid Restrictive Charter clause. (c) Promptly after expiration of the sixtyday period provided in the above-stated Restrictive Charter clause, the Contractor shall furnish the Contracting Officer with a complete statement of the evidence submitted to it by the owner of the vessel or his authorized agent pursuant to the provisions of the above Restrictive Charter clause on which the Contractor has based its determination that there has been compliance or noncompliance with said Restrictive Charter clause. In the event of a determination by the Contractor of noncompliance with said clause, the Contractor shall thereafter furnish the Government, promptly after receipt by it, |