as in the case with the contracts for the operation of ERDA's national laboratories. When this is the situation, the contracting office shall obtain the necessary technical appraisal information from the appropriate Headquarters program division(s) for incorporation into the overall management appraisal.

(ii)

The cost appraisal shall include data that indicates the contractor's success or failure in controlling both direct and indirect costs.

(3) The jusification for use of the contract type contemplated, including discussion of consideration given to use of the cost-plus-award-fee (CPAF) type contract.

(4) Summary description of scope of work, and brief listing of some of the important projects which have been performed under this contract. A list of any important projects planned for assignment in the future should be included.

(5) The cost level and fee or management allowance over the past contract period and expected cost level in the future.

(6) While a copy of the proposed contract document should be submitted with the recommendation, Headquarters should be advised of the following:

not

(i) Any special or unique features (with brief supporting rationale) in the existing contract expected to be continued in either the extension of the existing contract or in the replacement contract. This shall include any provisions which deviate from standard clauses.

(ii) An outline of the principal issues to be negotiated if the contract is extended, with arguments pro and con, with a recommended position. This should include the identification of any anticipated problem areas for which Headquarters guidance is

needed.

(c) If the decision is made to extend the existing contract without obtaining competition, the contracting office will be authorized to negotiate an extension to the contract. The contracting office shall submit the negotiated contract to Headquarters, for approval, of the senior procurement official, Headquarters, prior to execution. The proposed contract document shall be accompanied by the following:

(1) A complete justification of the negotiated contract in accordance with the relevant provisions of §§9-51.103-1 and

9-51.602-2.

(2) The required determinations and findings in accordance with $9-51.103-5.

(3) A summary of the major provisions of the proposed contract with particular attention to indemnity, patents, conduct of work (including provision concerning control over work), and termination. Any deviations from current FPR or ERDA procurement policies or standard contract clauses should be identified with the reasons therefore.

contract.

(4) A listing of any significant changes from the existing

Subpart 9-50.4 Special Types and Methods of Procurement

$9-50.400 Scope.

This subpart implements and supplements the policies and procedures set forth in FPR Part 1-4 and ERDA-PR Part 9-4, as these relate to operating contractors.

$9-50.401 Public utilities.

$9-50.401-1 Applicability.

The requirements of FPR 1-4.4 and this section shall be applied to contractors that manage and operate Government-owned facilities for ERDA when such contractors are authorized pursuant to §9-50.401-2(b) to to procure utility services.

$9-50.401-2 Policy.

(a) All utility services that are required for Government-owned and contractor-operated facilities shall be procured directly by ERDA and not by the contractors that manage and operate these facilities for ERDA.

(b) However, when it is economically advantageous or otherwise in the best interest of the Government, and subject to the provisions of $9-50.401-3(b), heads of procuring activities may authorize a contractor that manages and operates an ERDA facility to procure utility services on a subcontract basis. When an operating contractor is authorized to subcontract for utility services, under the authority of this paragraph (b), a copy of the authorization, together with a statement of justification, should be sent to the construction element, Headquarters, for information purposes. Heads of procuring activities shall require contractors which they authorize to subcontract

for utility services to comply with the requirements of §9-50.401-3, dealing with the prior review of certain proposed procurements. $9-50.401-3 Prior review of certain proposed procurements.

(a) In accordance with the provisions of FPR 1-4.411-3, GSA has authorized ERDA to accomplish its own prior review of the proposed utility procurements specified in FPR 1-4.411-1(a). FPR 1-4.411-4 requires that this prior review be conducted in accordance with the guidelines set forth herein.

(b) HPA's shall submit for headquarters review and approval, proposed contracts for utility services, including proposed authorizations under applicable GSA area-wide contracts, and proposed memorandums of understanding for consolidated purchase, joint use, or cross-service by ERDA with other government agencies, when one or more of the following circumstances applies:

(1) the annual cost of the service to be procured is estimated to exceed $50,000;

(2)

a proposed connection charge, termination liability, or any other facilities charge (whether or not refundable) is estimated to exceed a total of $5,000; or

(3) the proposed term of the contract or agreement is in excess of one year.

$9-50.402

Source and special nuclear material transfers.

(a) Operating contractors and onsite service contractors, in preparing contracts or other agreements in which monetary payments or credits depend on the quantity and quality of source and special nuclear material, shall assure that each such contract or agreement contains a:

(1) description of the material to be transferred;

(2) provision specifying the method by which the quantities are to be measured and reported;

(3) provision specifying the procedures to be used in resolving any differences arising as a result of such measurements;

(4) provision providing for the use of an umpire to settle unresolved differences in the analytical samples; and

(5) provision specifying in detail which party shall bear

the costs of resolving a difference and what constitutes such costs.

(b) The provisions providing for resolution of measurement differences must be such that resolution is always accomplished while at the same time minimizing any advantage one party may have over the other.

Subpart 9-50.5 Special and Directed Sources of Supply

$9-50.500 Scope.

Provisions of this subpart implement and supplement FPR Part 1-5 procurements by operating and other onsite contractors.

$9-50.501 Excess personal property.

Policies, procedures, and requirements of FPR Subpart 1-5.3 shall be applied.

$9-50.502 Interagency motor pool vehicles and related services.

Policies, procedures, and requirements of FPR Subpart 1-5.5 shall be applied in authorizing contractors and subcontractors to use interagency motor pool vehicles and related services.

§9-50.503 Use of GSA supply sources. (FPR 1-5.9)

(a) Contractors should meet their requirements from GSA sources if these sources are made available to them and if it is economically advantageous or otherwise in the best interest of the government.

(b) Heads of procuring activities may authorize contractors' subcontractors with cost-reimbursement type subcontracts, where all higher-tier subcontracts are of cost-reimbursement types, to use General Services Administration (GSA) supply sources (i.e., items available through Federal Supply Schedule contracts and other GSA contracts and from GSA stores stock) in accordance with the requirements and procedures in FPR Subpart 1-5.9.

(c) Direct procurement by ERDA, rather than by a contractor, shall be required where deemed necessary by the Heads of procuring activities in order to carry out special requirements of appropriation acts or other applicable laws relating to particular items.

(d) Contracting officers, when reviewing the procurement systems and methods of those contractors that have been authorized to use GSA sources of supply, shall assume that provision is made for documenting

the justification of procurements from commercial sources of items available from GSA sources of supply. The senior procurement official, Headquarters, shall be informed of instances in which GSA sources of supply are not used because of the quality of the item available from GSA.

$9-50.504 Use of excess materials from General Services Administration inventories.

(a) It is the policy to comply with the provisions of the Federal Property Management Regulations Part 101-14, Strategic Critical and Other Material, as supplemented from time to time by FPMR Bulletins.

(b) Contracting officers shall require their contractors, which use strategic and critical materials, to fulfill their requirements through the use of the excess strategic and critical materials in the GSA inventories.

(c) General Services Adminstration (ANSD), Washington, DC, 20405, should be contacted directly for any detailed information concerning specifications, prices, and method of placing the order. $9-50.505 Use of Government sources of supply.

(a) Contractors should meet their requirements from Government sources of supply, if these sources are made available to them and if it is economically advantageous or otherwise in the best interest of the Government.

(b)

Heads of procuring activities may authorize contractors to acquire materials and services directly from such Government sources of supply in accordance with the requirements of this subpart or the consent of agencies involved.

(c) Materials, supplies, and equipment procured from Government sources of supply under the procedures described herein must be used exclusively in connection with Government work except as otherwise authorized by Heads of procuring activities.

(d) Many supply facilities and contracts of the Department of Defense are made available to ERDA and its operating and other onsite contractors.

(1) Field offices will be notified by the senior procurement official, Headquarters, when such contracts and facilities are made available. Inquiries in connection with these sources may be directed to the senior procurement official, Headquarters. Requisitions or purchase orders shall be submitted directly to these sources,