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Subpart 12-1.9-Reporting Possible

Antitrust Violations

& 12-1.901 General.

The reports required by FPR Subpart 1-1.9 shall be prepared for the signature of the Secretary, and for warded to the Director of Installations and Logistics, OST.

dures, a qualification requirement may be included in a specification only when one or more of the following conditions exist:

(a) The time required for testing after award would unduly delay delivery of the supplies being purchased.

(b) The cost of repetitive testing would be excessive.

(c) The tests would require expensive or complicated testing apparatus not commonly available.

(d) The interest of the Government requires assurance, prior to award, that the product is satisfactory for its intended use.

(e) The determination of acceptability would require performance data to supplement technical requirements contained in the specification.

Subpart 12-1.11-Qualified Products 8 12-1.1150 General.

(a) It is sometimes necessary to test products in advance of any procurement action to determine if a product is available that will meet specification requirements. In such cases, the specification may require qualification of the product. Qualification is the entire process by which products are obtained from manufacturers or distribu. tors, examined and tested for compliance with specification requirements, and then identified on a list of qualified products. Qualification is performed in advance and independent of any specific procurement action.

(b) A Qualified Product List (QPL) identifies the specification, manufacturer or distributor, item by part or model number or trade name, place of manufacture, and the test report involved. Suppliers whose products have successfully passed qualification and who furnish evidence thereof are eligible for award even though the product is not yet included in the QPL.

(c) Chapter IV of the Federal Standardization handbook (Federal Property Management Regulations 101-29) is the basic instruction concerning quali. fied products and qualifications procedures. Copies of this handbook may be purchased by the public from the Su perintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402.

(d) A specification is the only medium for establishing a requirement for qualification. The preparing activity identified in the specification is responsible for qualification. & 12-1.1151 Justification for inclusion of

qualification requirements. Subject to approval by the office as designated in Administration proce

312-1.1152 Prior determinations.

Prior to inclusion of qualification in a specification, the preparing activity shall determine that:

(a) There is no other practicable way to obtain evidence of availability of products meeting the requirements of the specification.

(b) Sources, sufficient in number to provide an adequate base of supply, insofar as practicable, are available and willing to submit their products for qualification.

(c) Test facilities and resources are available to establish and maintain the QPL adequately and without delay.

8 12-1.1153 Availability of lists.

Qualified Products Lists are intended for the use of the Government and its contractors, subcontractors, prospective bidders, and suppliers. Lists may be obtained by prospective bidders or suppliers who require these Lists in furnishing supplies or services to the Government or its contractors. Lists are also available to the public upon request. When a person is provided with, or given access to, a QPL he should be advised as follows:

(a) The QPL has been prepared for use by or for the Government in the procurement of products covered by the specification and such listing of a product is not intended to and does not connote endorsement of the prod(b) Lists shall always be kept open for inclusion of products from additional suppliers.


uct by the Department of Transportation;

(b) All products listed have been qualified under the requirements for the product as specified in the latest effective issue of the applicable specification;

(c) The QPL may be revised or amended as necessary, and subject to change without notice;

(d) The listing of a product does not release the supplier from compliance with the specification requirements; and

(e) Use of the information for advertising or publicity purposes is permit. ted, provided that such publicity or advertising does not state or imply that the product is the only product of that type so qualified or that the Department of Transportation in any way recommends or endorses the manufacturer's product.

12-1.1154 Opportunity for qualification.

(a) Upon determination that a product is to be covered by a QPL, manufacturers shall be urged to submit their products for qualification and where possible shall be given sufficient time to arrange for qualification testing prior to issuance of the initial invitation for bids or request for proposals for the item as a qualified product. Appropriate notice of such determination shall be furnished to the U.S. Department of Commerce, Commerce Business Daily, Room 1304, 433 West Van Buren Street, Chicago, IL 60607, requesting publication of five consecutive issues of the daily “Synopsis of U.S. Government Proposed Procurement, Sales and Contract Awards". The publicity given to the requirement for qualification testing shall include the following:

(1) An intention to establish a QPL for a product;

(2) The specification number and nomenclature of the product, and the name and address of the office to which the request for qualification should be submitted; and

(3) Notice that in making future awards consideration shall be given only to such products as have been accepted for inclusion in a QPL.

8 12-1.1155 Clarification of qualification

requirements. When there is any question concerning qualification requirements in specification, the activity that prepared the specification will furnish clarification when requested by the contracting activity. 812-1.1156 Procurement of qualified

products. 8 12-1.1156-1 General.

(a) Whenever qualified products are to be procured by the Government as end items, only bids or proposals offering products which are qualified for listing on the applicable QPL at the time set for opening of bids or award of negotiated contracts shall be considered in making awards.

(b) Whenever a qualified product is to be procured by a prime contractor as a component of an end item, the prime contractor shall be required to furnish a component which has been tested and qualified for inclusion in the applicable QPL by the time of award of the subcontract. Delay resulting from the prime contractor's awaiting qualification approval by the Government of a component shall not constitute excusable delay when a previously qualified component could have been procured in time to meet the end item delivery schedule.

(c) Procurements involving qualified products shall be governed by paragraphs (c)(1) through (4) of this section.

(1) Synopses of proposed procurements shall be published by purchasing activities, in accordance with FPR 1-1.1003, promptly upon receipt of procurement requests.

(2) The maximum time consistent with delivery requirements shall be allowed between issuance of the solicitation and the opening of bids or the award of a negotiated contract. As minimum, however, contracting officers shall allow 30 calendar days between the dates of issuance and opening (award, in the case of negotiated contracts): Provided, That periods of

less than 30 days may be set in cases nents shall have been tested and shall be of urgency when the justification for a qualified for inclusion in the Qualified shorter period is set forth in writing

Products List (whether or not actually in

cluded in the List) at the time of award of and made a part of the procurement

any subcontract by the Contractor for such file. In appropriate cases, advance

components, or, in the event the Contractor notice of procurement involving quali

plans to manufacture such components himfied products may be given suppliers

self, shall have been so tested and have so through the use of preinvitation no qualified before the Contractor begins to tices. Such notices shall identify the manufacture such components for performspecification requiring qualification. ance of this contract (not before manufac

(3) In procuring qualified products ture of the prototype, preproduction model, by formal advertising, invitations for or first article, for qualification testing). bids will be distributed to suppliers in

Unless required for interchangeability or the same manner as if a qualified

compatibility, the Contractor shall not cite

brand names from any Qualified Products product were not involved, and will

List in any subcontract solicitation, but not be restricted to suppliers whose

shall refer to the pertinent specification so products have been qualified.

that optimum competition may be obtained. (4) Contracting officers shall for

Delay resulting from the Contractor's ward requests from suppliers concern awaiting qualification approval by the Goving qualification of products to the ernment of a component shall not constispecification preparing activity.

tute excusable delay when a previously

qualified component could have been pro8 12-1.1157 Contract provisions.

cured in time to meet the end item delivery

schedule. Any change in location or owner(a) When qualified end products are

ship of the plant at which a previously apto be procured, the provision in FPR

proved product is, or was, manufactured re1-1.1101(b) shall be inserted in the so

quires re-evaluation of the qualification. licitation, supplemented by the follow Such re-evaluation must be accomplished ing:

prior to the award of any subcontract by

the Contractor for such components or The offeror shall insert the item name

prior to the beginning of manufacture if the and the test number (if known) of each

Contractor manufactures such components qualified product in the blank spaces below.

himself. Item Name------Test No.--

Any change in location or ownership of the plant at which a previously approved

8 12-1.1158 Effect of debarment or susproduct is, or was, manufactured requires

pension. reevaluation of the qualification. Such re The inclusion of a product on the evaluation must be accomplished prior to

QPLS may be denied, and the qualifithe bid opening date in the case of advertised procurements and prior to the date of

cation of a listed product may be withaward in the case of negotiated procure

drawn, by the Administration conments. Failure of offerors to arrange for

cerned, without notification to the such reevaluation shall preclude considera

manufacturer, if the name of the mantion of their offers.

ufacturer appears on the lists of deIf the procurement is formally adver

barred or ineligible bidders which are tised, the following statement shall

maintained pursuant to FPR Subpart also be included:

1-1.6. Any bid which does not identify the quali- 812-1.1159 Waiver of qualification refied product being offered, either above or

quirement. elsewhere in the bid, will be rejected.

When procuring a product under a (b) When qualified products are to

specification which includes qualificabe procured as components of end items, insert the following provision in

tion requirements either for the end

item or for components of the end the solicitation:

item, such qualification requirements QUALIFIED PRODUCTS-COMPONENTS can be waived only by the activity that When any of the end items which are to

prepared the specification. In approbe supplied to the Government by the Con

priate cases, when requested by the tractor will contain one or more components

contracting officer, the preparing acwhich are required by the applicable specifi tivity may waive qualification requirecation to be qualified products, such compo- ments. A notice, issued by the prepar

ing activity, directing a waiver of the qualification requirement, constitutes adequate authorization for waiver of product qualification requirements. Where waivers have been granted, solicitations shall specifically indicate that the qualification requirement is inapplicable. Such information shall also be included in any Synopsis of the procurement.

formance of contracts, he shall be reported to the activity that prepared the specification for a determination as to whether the supplier's product shall be removed from the list.

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8 12-1.1160 Inadequate competition.

(a) Presolicitation. In connection with procurement of a qualified product as an end item, the contracting officer shall review the applicable QPL prior to solicitation to ascertain whether the number of sources is adequate for competition. If, in the opinion of the contracting officer, the number of sources is inadequate, action shall be taken as prescribed below unless he already has the necessary information.

(1) The contracting officer shall request the activity that prepared the specification to provide information concerning the status of tests on additional products, including the anticipated dates when such tests will be completed so that opening of bids or submission of proposals may be so scheduled as to allow completion of the tests.

(2) If no tests are being conducted or contemplated, the contracting officer shall further request the preparing activity to advise whether a means of quality assurance other than qualification approval may be substituted in the procurement.

(b) Postsolicitation. The contracting officer shall advise the specification preparing activity of the name and address of any concern which requested copies of the solicitation but was not included on the QPL. The specification preparing activity may then attempt to interest such concerns in becoming qualified. 8 12–1.1161 Reporting nonconformance

with specification requirements. If a supplier on the QPL repeatedly submits products not meeting specific cation requirements for inspection, resubmits products previously rejected without correcting the defects, or is otherwise unsatisfactory in the per

8 12-1.1204-1 Requirement.

(a) Except as provided in paragraph (c) of this section, the contracting officer shall, prior to award, prepare, sign, and place in the contract file, DOT Form F 4220.1 titled “Determination of Prospective Contractor Responsibility." Where a prospective contractor is determined to be nonresponsible, the form shall also be completed before notice of the rejection is furnished and the contract awarded to another.

(b) For each factor applicable to the procurement, the type of evaluation and the rating shall be checked. A completed form may include any combination of checks in the A, B, and C columns. Where the determination of responsibility is based on an SBA certificate of competency, a copy of the certificate shall be attached to the form and Block 6 of the form should not be completed except to reference the attachment.

(c) The form need not be completed in the case of:

(1) Procurements of the types listed in FPR 1-1.1201(b);

(2) Contracts of $10,000 or less, except that the form shall be prepared prior to the award of all contracts the primary purpose of which is research; or

(3) Contracts for perishable subsistence supplies available for immediate shipment.

(d) Pending a revision of DOT Form F4220.1, the reference in Block 7 to

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§ 12-1.1603 Reporting requirement.
§ 12-1.1603-3 Submission of reports.

The report required by FPR 11.1603-3(b) shall be sent by each Administration directly to the Attorney General. An information copy shall be sent to the Director of Installations and Logistics, OST.

Subpart 12–1.52—Value Engineering

$ 12–1.5201 Policy.

(a) Value engineering (VE) is concerned with the elimination or modification of anything that contributes to the cost of a contract item or task but is not necessary for needed perform ance, quality, maintainability, reliability, or interchangeability. Specifically, (VE) as contemplated by this subpart constitutes a systematic and creative effort, not required by any other provision of the contract, directed toward analyzing each contract item or task to ensure that its essential function is provided at the lowest overall cost. Overall cost may include, but need not be limited to, the costs of acquiring, operating, and logistically supporting an item or system. VE provisions may be incorporated into a contract by using the VE incentive clause which set forth the methods by which a contractor may propose ways to perform the contract more economically and share in any resulting cost saving, or by using the VE program requirement clause which requires the contractor to establish a VE program aimed at identifying more economical ways to perform the contract and which may include incentive sharing.

(b) In order to realize fully the cost saving potential of VE, it is DOT policy to:

(1) Incorporate provisions which encourage or require VE into all contracts for supplies, services and construction of sufficient size and duration which offer reasonable likelihood for cost savings.

§ 12-1.5202 Value engineering incentives. § 12-1.5202-1 Description.

(a) The objective of a VE incentive provision is to encourage the contractor to submit VECPs by permitting the contractor to share in cost savings. To be acceptable, a VECP must involve some change in the contract specifications, purchase description, or statement of work; this may include the elimination or modification of any requirement found to be in excess of actual needs in the areas of, for example, design, components, materials, material processes, tolerances, packaging requirements, technical data requirements, or testing procedures and requirements, and consequent reduction in the contract cost. Furthermore, even when the contract cost may be increased, the incentive provisions encourage contractors to submit VECPs that are likely to lead to overall savings resulting from significant net reductions in collateral costs of Government-furnished property, operational requirements of logistic support requirements.

(b) VE proposals which satisfy the above requirements shall not be rejected on the ground that they also involve a termination, in whole or in part, of contract line items; moreover, the cost savings resulting from such quantitative reductions shall be shared with the contractor. On the other hand, contractor proposals which concern the quantitative requirements of the Government but do not satisfy the above criteria are not within the intent of the VE provisions, and the contractor will not share, under the VE Incentive clause, in sav. ings resulting solely from such quantitative proposals.

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