$9-51.000 Scope of part.

This part sets forth administrative requirements for the review and approval of certain contract actions.

(a) For the purpose of this part, the term "contract actions" includes:

(1) Actions relating to the letting of contracts, subcontracts, agreements with other governmental agencies, and subsequent modifications, extensions, and settlements of terminations thereof.

(2) Questions of contract policy or procedure which arise in

the course of contract negotiation and administration.

(b) For the purpose of this part, the term "contract actions" does not include administrative functions associated with contract administration, such as the development, interpretation, and modification of contract cost principles, financial plan and budget operations, labor relations, safety, security, audit, salary and wage administration, foreign travel, programmatic matters (program scope, technical requirements or specifications, project schedules, etc.), and the administration of construction activities. Such matters are handled directly between field offices and the Headquarters organization having cognizance over the matter involved.

(c) For the purpose of this part, the term "contract actions" does not include the action taken to terminate a contract, subcontract, or agreement with another governmental agency. See $9-8.201 for requirements relating to the act of termination.

Subpart 9-51.1

Headquarters Review and Approval
of Contract Actions

$9-51.100 Scope of subpart.

This subpart sets for the administrative requirements for Headquarters review and approval of contract actions.

(a) Procuring activities will communicate directly with the

senior procurement official, Headquarters, on all contract actions requiring Headquarters consideration, with the following exceptions:

(1) The offices at Schenectady and Pittsburgh will communicate directly with the Director, Division of Naval Reactors.

(2) The Grand Junction Office will communicate directly with the Division of Uranium Resources and Enrichment.

(3) The CRBRP and FFTF Project Office will communicate through the Director, RDD.

(b) All organizations will communicate directly with the senior official for construction, Headquarters, on contract actions for electic power and gas utility services.

(c) Contract actions requiring Headquarters review and approval shall be submitted sufficiently in advance of the proposed date for final action to permit an orderly study and analysis of the proposed contract action. Requests for approval of contracts and subcontacts shall be accompanied by six copies of the proposed contract document and six copies of the required supporting data.

§ 9-51.102

(a)

Contract actions requiring Headquarters
review and approval.

Contract actions requiring the advance attention of the head of the procuring activity or designee. Heads of procuring activities will submit the following contract actions to the senior procurement official, Headquarters, for appropriate Headquarters review and approval; e.g., Controller, Counsel and other affected Headquarters staff elements.

(1) Contract actions involving the total cost of the project shared, for the contract period in excess of $10 million.

(2) All contractual matters of a new or unusual nature, or matters likely to provoke unusual public interest, and all prime contracts with foreign parties in excess of $300,000.

(b) Contract actions in excess of authority delegated to heads of procuring activities requiring advance Headquarters review and approval. Heads of procuring activities will submit contract actions in excess of delegated authority for advance Headquarters approval including:

(1) Preliminary contractual agreements when there is reason to believe that the resulting contract or subcontract may exceed delegated authority.

(2) Any proposed contract or subcontract which by the exercise of any option or options therein would exceed delegated authority.

(3) Any proposed contract or subcontract, regardless of amount, which in the opinion of the head of the procuring activity will, as a result of extension, follow-up work, or otherwise increase the contract or subcontract, or lead to a contract or subcontract with the same contractor, in an amount in excess of the delegated authority.

(4) Extension or modification which within itself includes

increases in excess of delegated authority.

(c) Modifications to contracts or subcontracts previously approved by Headquarters need not be submitted for Headquarters consideration when they involve only periodic modifications (1) to establish scope and/or estimated costs within the approved general scope and fixed fees, provided the fee negotiated is within the fee limits of ERDA fee policy, or (2) to increase (or decrease) the funds obligated or the contractual limitations on expenditures when funds for such purposes have been allotted and set forth in approved financial plans.

(d) Contracts and subcontracts for public utility services (except telecommunication services) shall be reviewed and approved in accordance with the provisions of ERDA-PR Subpart 9-50.401 Public

Utilities.

$9-51.103 Supporting data for contract actions

$9-51.103-1

requiring Headquarters advance approval.

Negotiation.

Requests for approval of contracts and subcontracts to be entered

into as a result of negotiation shall be accompanied by the information required by §9-51.6.

$9-51.103-2

Formal Advertising.

Requests for approval of contracts and subcontracts to be entered into as a result of formal advertising shall be accompanied by:

(a)

(b)

copy of the invitation to bid and any amendments;

a list of persons or firms invited to bid;

(c) information relating to posting or publishing notices of the invitation and copies of all paid advertisements, if any were used;

90-136 - 77 - 41

(d) copy of abstract of bids;

(e) an evaluation of the reasonableness of the low bid accepted including a comparison with the independent Government cost estimate, if applicable;

(f) copy of bid received from contractor to whom award is proposed; and

(g) if award is proposed to be made to other than the lowest bidder, a complete statement of the reasons therefor.

$9-51.103-3 Questions of contract policy and procedure.

Questions of contract policy and procedure which arise in the course of contract negotiation and administration for which Headquarters consideration is required or desired, shall be accompanied by sufficient information to permit adequate review and analysis of the problem involved.

$9-51.103-4 Time of submission.

Requests for approval of contractual documents shall be submitted and approval shall be obtained prior to execution by either party. $9-51.103-5 Determinations and Findings.

All determinations and findings required by FPR Subparts 1-3.2 and 1-3.3 and ERDA-PR Subparts 9-3.2 and 9-3.3, with the exception of FPR 1-3.303 and ERDA-PR 9-3.303, shall be executed by a contracting officer. A signed copy shall be included in the supporting data for contract actions before submission of the file to Headquarters for advance approval.

$9-51.201

Subpart 9-51.2 Other Approval Requirements

Other approval requirements.

Nothing in this Part 9-51 shall be construed as precluding the establishment of additional requirements by Headquarters or heads of procuring activities with respect to contracts or subcontracts under their jurisdiction.

Subpart 9-51.3 Contract and Subcontract Review Requirements

$9-51.300 Scope of subpart.

This subpart sets forth the administrative requirement for independent review of proposed contracts and subcontracts by ERDA.

$9-51.301 Applicability.

Prime contracts and subcontracts under cost-reimbursement type contracts shall be reviewed in conformance with this subpart, based on dollar thresholds to be established by heads of procuring activities. Such reviews shall be made prior to award in all cases. Heads of procuring activities, may, if considered appropriate, exempt basic research lump sum contracts with foreign educational institutions from the independent review board requirements of this subpart.

$9-51.302 Responsibilities.

Each head of the procuring activity shall establish procedures in accordance with this subpart providing for an independent review of proposed contract and subcontract actions and to review termination settlements.

$9-51.303 Assignment of review functions.

Responsibility for independent review of contract and subcontract actions shall be assigned to a contract review board established under $9-51.303-1, or such independent review shall be accomplished under the alternate review procedures set forth in §9-51.303-2.

(a) Organization. Each contract review board shall consist of not less than three members with broad business and contracting experience. A majority of representatives on each board shall be permanent board members. Other members may be drawn from panels of designated persons as may be appropriate for cases under consideration. To the extent practicable, no person shall serve as a member of a contract review board in reviewing a contract action in which he has participated, or a contractor selection unless such action is subject to approval under §9-51.102, or the head of the procuring activity shall determine that participation in the review of the particular contract provides continuity of experience or is otherwise in the best interest of the Government. The chairman of each board shall be designated by the head of the procuring activity concerned and each board shall be furnished with such staff assistance as may be requested by the board and approved by the head of the procuring activity. Contract review boards may be assigned additional functions at the discretion of heads of procuring activities provided such functions are related to procurement and are not inconsistent with the board's responsibility as set forth in this subpart.

(b) Purpose of review. In negotiated procurements, the primary function of contract review is to provide an independent review