the construction, alteration, or repair of buildings, structures, communication facilities, or other engineering projects, including the furnishing and installing of necessary equipment; or

(b) Who, if newly entering into a construction activity, has made all necessary prior arrangements for personnel, construction equipment, and required licenses to perform construction work. § 18-1.205 Contract modification.

"Contract modification" means any written alteration in the specification, delivery point, rate of delivery, contract period, price, quantity, or other contract provisions of an existing contract, whether accomplished by unilateral action in accordance with a contract provision, or by mutual action of the parties to the contract. It includes (a) bilateral actions such as supplemental agreements, and (b) unilateral actions such as change orders, administrative changes, notces of termination, and notices of the exercise of a contract option.

§ 18-1.206 Contracting officer.

"Contracting officer" means any employee of NASA who is currently designated a contracting officer with the authority to enter into and administer

contracts and make determinations and findings with respect thereto, or with any part of such authority. The term also includes the authorized representative of the contracting officer acting within the limits of his authority.

§ 18-1.207 Contracts.

"Contracts" means all types of agreements and orders for the procurement of supplies or services. It includes awards and notices of award; contracts of a fixed-price, cost, cost-plus-a-fixed-fee, or incentive type; contracts providing for the issuance of job orders, task orders, or task letters thereunder; letter contracts; and purchase orders. It also includes supplemental agreements with respect to any of the foregoing.

§ 18-1.208 Director of procurement. "Director of Procurement" means the Director, Office of Procurement, NASA Headquarters (Code KD).

"Executive agency" means any executive department or any independent establishment in the Executive Branch of the Government, including any wholly owned Government corporation, the National Aeronautics and Space Administration, and the Departments of the Army, Navy and Air Force.

§ 18-1.210 Federal agency.

"Federal agency" means any executive agency or any establishment in the Legislative or Judicial Branches of the Government (except the Senate, the House of Representatives, and the architect of the Capitol and any activities under his direction).

§ 18-1.211 Field installation.

"Field installation" means Ames Research Center; Electronics Research Center; Flight Research Center; Goddard Space Flight Center; Langley Research Center; John F. Kennedy Space Center, NASA; Lewis Research Center; Manned Spacecraft Center; George C. Marshall Space Flight Center; Pacific Launch Operation Center; North Eastern Office; Wallops Station; Western Operations Office, and any other field installation hereafter established by NASA.

§ 18-1.212 Field procurement office.

"Field procurement office" means any NASA procurement office other than procurement offices at NASA Headquarters.

§ 18-1.213 Government instrumentality. "Government instrumentality" means any of the following:

(a) An instrumentality of the U.S. Government;

(b) An agency or instrumentality of a State or local government, possession, or Puerto Rico;

(c) An agency or instrumentality of a foreign government.

§ 18-1.214 Head of a field installation. "Head of a field installation" means the Director of a field installation.

§ 18-1.215 Head of the agency.

"Head of the agency" means the Administrator or Deputy Administrator of NASA.

(a) Who owns, operates, or maintains a factory or establishment that produces on the premises the materials, articles, or equipment required under the contract and of the general character described by the specifications; or

(b) Who, if newly entering into a manufacturing activity, has made all necessary prior arrangements for manufacturing space, equipment, and personnel to perform the manufacturing operations required for contract performance; and

(c) Who, before being awarded a contract, satisfies the contracting officer that he qualified under paragraphs (a) or (b) of this section.

§ 18-1.219 May.

"May" is permissive. However, the words "no person may * * mean that no person is required, authorized, or permitted to do the act prescribed.

"Procurement officer" means the Head of a procurement office.

§ 18-1.227 Procuring activity and head of a procuring activity.

The terms "procuring activity" and "Head of a procuring activity" as used in portions of ASPR or the FPR incorporated by reference in this chapter correspond to the terms "field installation" and "head of a field installation" as used in this chapter. The Director of Procurement, NASA Headquarters, also falls within the term "head of a procuring activity" insofar as procurements by NASA Headquarters are concerned.

ment in which materials, articles, or equipment of the general character described by the specifications and required under the contract are bought, kept in stock, and sold to the public in the usual course of business; or

(b) In the case of articles of particular kinds (lumber and timber products, coal, machine tools, raw cotton, petroleum, green coffee, tea, agricultural liming materials, or hay, grain, feed, or straw), who satisfies the requirements of the Regulations of the Secretary of Labor (41 CFR 201.101 (b) and 201.603 (f) under the Walsh-Healey Public Contracts Act; and

(c) Who, before being awarded a contract, satisfies the contracting officer that he is engaged in an established regular business, meeting all the criteria of paragraph (a) or (b) of this section.

It is not enough in the case of a regular dealer to show only that arrangements have been made to set up such a business. Before an award can be made, the dealer must show that he is an established going business regularly dealing in the particular articles, or articles of the general character sought by the Government.

"Service contractor" means a person (or firm) who, before being awarded a contract, satisfies the contracting officer that he qualifies as one:

(a) Who owns, operates, or maintains a place of business regularly engaged in performing nonpersonal services, such as the repair, maintenance, or rebuilding of personal property; the packing, crating, or moving of material; the operation of equipment or facilities; the rental of equipment or facilities; or the performance of administrative, professional, or technical functions; or

(b) Who, if newly entering into a service activity, has made all necessary prior arrangements for personnel, service equipment, and required licenses to perform services.

§ 18-1.232 Supplemental agreement.

"Supplemental agreement” means any contract modification which is accom

advertising shall be effected in accordance with Part 18-2 of this chapter.

(d) Negotiation. If the use of formal

parties.

§ 18-1.233 Supplies and property.

(a) “Supplies" or "property” means all property except land or interests in land. It includes public works, buildings, and facilities; aircraft, missiles, satellites, and other aeronautical and space vehicles, together with related equipment, devises, components, and parts; machine tools; and the alteration or installation of any of the foregoing. "Supplies" as used in this chapter is synonymous with "property" as described in 10 U.S.C. 2303(b).

(b) The terms "supplies" and "property" are used interchangeably in this chapter unless otherwise specifically provided. These terms as used in this chapter have the same meaning as the term "supplies" used in ASPR. The terms "personal property and nonpersonal services" as used in the FPR have the same meaning as "supplies and services" or "property and services" used herein.

§ 18-1.234 United States.

"United States," when used in a geographic sense, means the 50 States and the District of Columbia.

Subpart 18-1.3-General Policies § 18-1.300 Scope of subpart.

This subpart sets forth general policies with respect to the procurement of supplies and services by formal advertising and by negotiation.

§ 18-1.301 Methods of procurement.

(a) General objective. It is the objective of NASA to use that method of procurement which will be most advantageous to the Government, price, quality, and other factors considered.

(b) Competition. All procurements, whether by formal advertising or by negotiation, shall be made on a competitive basis to the maximum practicable extent.

(c) Formal advertising. Procurements shall be made by formal advertising in all cases in which the use of such method is feasible and practicable under the existing conditions and circumstances. Procurement by formal

cable, procurements may be negotiated in accordance with Part 18-3 of this chapter.

Irrespective of whether the procurement of supplies or services from sources. outside the Government is to be effected by formal advertising or by negotiation, competitive proposals ("bids" in the case of procurement by formal advertising, "proposals" in the case of procurement by negotiation) shall be solicited from all such qualified sources deemed necessary by the contracting officer to assure full and free competition consistent with the procurement of the types of supplies and services necessary to meet NASA's requirements.

§ 18-1.302–3 Production and research and development pools.

(a) Description. A production or research and development pool is a group of concerns (1) who have associated together for the purpose of obtaining and performing jointly, or in conjunction with each other, contracts for supplies or services or for research and development for defense use, or to effectuate the purposes of the Small Business Act; (2) who have entered into a pool agreement governing their organization, relationship, and procedure; and (3) whose agreement has been approved either in accordance with Section 708 of the Defense Production Act of 1950, as amended (Defense Production Pool), 50 U.S.C. App. 2158, or in accordance with Section

9(d) or 11 of the Small Business Act, 15 U.S.C. 631-647 (Small Business Pools). Pool participants are exempt from the "manufacturer or regular dealer" requirement of the Walsh-Healey Public Contracts Act (see 18-12.5), of this chapter.

(b) General rule. Except as provided in this section, a pool shall be treated for purposes of Government procurement on exactly the same basis as any other prospective or actual contractor.

(c) Ascertainment of status. The contracting officer is responsible for ascertaining whether a group of firms seeking to do business with the Government is a pool. In ascertaining the status of a group representing itself as a pool, contracting officers may rely on a copy of the Small Business Administration (SBA) or Office of Emergency Plans (OEP) (formerly OCDM) notification of approval of the pool. The Director of Procurement will expeditiously disseminate to field installations information received from SBA or OEP concerning the approval of production and research and development pools. In any case where the award of a contract to a group representing itself as a production or research and development pool is contemplated, and the contracting officer does not have data available as to the status of the pool, the group shall be requested to furnish to the contracting officer the following:

(1) A copy of the SBA or OEP notification of approval of the pool; and

(2) A list of the member companies of the pool and a statement regarding the type of organization and plan of operation of the pool.

(d) Contracting with pools. (1) A bid or proposal of a pool is not eligible

for award to the pool unless submitted either by the pool in its own name or by an individual member expressly disclosing that it is on behalf of the pool. Except for contracts to be awarded to incorporated pools, the contracting officer shall, prior to award to a pool, require to be deposited with him a certified copy of a power of attorney from each member of the pool who is to participate in the performance of the contract authorizing an agent to execute the bid, proposal, or contract on behalf of such member. copy of each such power of attorney shall be appended to each executed copy

A

of the contract retained by the Government.

(2) Membership in a pool shall not of itself preclude individual members from submitting bids or proposals as individuals on appropriate procurements. Bids or proposals submitted by an individual member of a pool shall not be considered when the individual member has participated in the bid or proposal submitted by the pool.

(e) Responsibility of pool member. Where a member of a production pool has submitted a bid or proposal in his own name and not on behalf of a pool, the pool agreement shall be a factor to be considered in determining the pool member's responsibility, pursuant to Subpart 18-1.9.

§ 18-1.302-50 Contracts between NASA and Government employees.

(a) Procurement contracts between the Government and its employees or business organizations substantially owned or controlled by Government employees will not knowingly be entered into, except in those cases in which the needs of the Government cannot reasonably be otherwise supplied. The specific approval of the Director of Procurement must be obtained for any such contract.

(b) Surplus personal property shall not be sold to persons known to be officers or employees of the Federal Government, except as specifically authorized by the Director of Procurement. § 18-1.302-51 Proposed subcontracts between NASA contractors and government employees.

In the approval of subcontracts under NASA prime contracts, NASA contract

ing officers shall consider the policy

restrictions of § 18-1.302-50 to apply to subcontracts.

§ 18–1.304 Selection of items involving proprietary data or other restrictive factors.

In some cases the procurement of an item would involve proprietary data (see § 18-9.201 (b)) or other factors which would restrict sources of procurement or limit competition, but alternative items may be procured which would meet the needs of NASA. In such cases, consideration will be given, in selecting the item to be procured, to the relative advantages for aeronautical and space pur