(d) Procedures. (1) Procurement of items in the following Federal Supply Classes and Groups are subject to the provisions of this § 1-1.319. (The complete Federal Supply Classification, listing all such classes and groups, is set forth in Cataloging Handbook H 21, which is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.) FS Class 6605. 6610. 6615. Description Navigational instruments. Flight instruments. Auto pilot mechanisms and airborne gyro components. Engine instruments. Electrical and electronic properties measuring and testing instruments. Chemical analysis instruments. Laboratory equipment and supplies. Geophysical and astronomical instruments. Drafting, surveying, and mapping instruments. Liquid and gas flow, liquid level, and mechanical motion measuring instruments. Pressure, temperature, and humidity measuring and controlling instruments. Combination and miscellaneous instruments. Fire control equipment. Guided missiles. Aircraft and airframe structural components. Motor vehicles and cycles. Vehicular equipment components. Fire fighting, rescue, and safety equipment. Measuring tools. Communications equipment. Electrical and electronic equipment components. Alarm and signal systems. Medical, dental, and veterinary equipment (2) The Plant may initially reject a contractor's or subcontractor's purchase order because of that customer's currently excessive and overdue indebtedness to the Plant. The Plant is required to refuse shipments against purchase orders whenever shipments would increase the indebtedness of a customer beyond any credit limit which may have been designated by GSA. Rejection by the Plant of a contractor's or subcontractor's purchase order or refusal to ship against an accepted purchase order under these circumstances will not be considered jus-` tification for the type of waiver of the purchase requirement (with a consequent adjustment in the contract price) which is permitted in certain instances under the contract clause in (e) of this section. If the contractor or subcontractor whose purchase order is rejected or to whom shipments are refused for the foregoing reasons is in disagreement with the management of the Plant on whether the indebtedness actually exists or the amount of such indebtedness, the Government will require the Plant to accept the contractor's purchase order and to make shipments against the purchase order on a "cash-on-delivery" (c.o.d.) basis for each lot shipped. If necessary, arrangements can be made for progress payments by the Government to finance the c.o.d. requirements. Such measures will be independent of and have no effect on the final disposition of the alleged indebtedness or controversy between the contractor and management of the Plant. (3) In all procurements subject to the requirements of this § 1-1.319, the clause in paragraph (e) of this section, shall be inserted in all solicitations and contracts. Bids or proposals shall be predicated on this requirement. (4) Subsequent to the award of a contract that includes the clause required by paragraph (e) of this section, the contracting officer may waive the "use" but not the “acquisition” requirements of the clause. The waiver may be granted upon submission of a written request by the contractor if the contractor or subcontractor has on hand jeweled subassemblies or end items such as are required to be delivered under the contract; and either: (i) The production of such subassemblies or end items specifically in performance of all or a part of the contract using Langer-made jewel bearings would interfere with economical or normal production scheduling of the product under contract or with the production of another item (governmental or commercial); or (ii) The delivery schedule under the contract or subcontract is such that the use of on-hand jewel bearings or jeweled subassemblies or parts is necessary. Under either of the foregoing circumstances, the written request shall include a statement that the Langer-made jewel bearings which he is required to purchase under the contract will be used by him to replace his inventory of jewel bearings, subassemblies, or end items. Waivers of the use requirement shall be granted only to the extent and for the period of time necessary to permit the contractor to acquire and use Langer-made jewel bearings. In any instance when the use requirement is waived, an equitable adjustment for cost savings resulting therefrom shall be made. (5) A contractor shall not be authorized to purchase from the Plant jewel bearings in amounts which exceed the quantity required to satisfy the contract. (6) All purchase orders placed with the Plant shall cite the prime contract number and the date of the price list cited in the prime contract. (e) Contract clause. In all procurements subject to these procedures, the following clause is required for use: REQUIRED SOURCE FOR JEWEL BEARING (a) For the purpose of this clause: (1) "Jewel bearing" means a piece of synthetic sapphire or ruby of any shape, except a phonograph needle, which has one or more polished surfaces and which is suitable for use in an instrument, mechanism, subassembly, or part without any additional processing. A jewel bearing may be either unmounted or mounted into a ring or bushing. Examples of jewel bearings are: Watch holes-olive, watch holes-straight, pallet stones, roller jewels (jewel pins), end stones (caps), vee (cone) jewels, instrument rings, cups, double cups, and orifice jewels. As used herein, the term "jewel bearings" includes "related items." (2) "Related items" means other synthetic sapphire or ruby components. Examples of related items are pivots, knife edges, insulators, spacers, windows, and striking surfaces other than pallet stones. (3) "Price list" means the official U.S. Government Jewel Bearing Price List for jewel bearings produced by the William Langer Jewel Bearing Plant. This list is issued periodically by the General Services Administration. (4) "Plant" means the Government-owned William Langer Jewel Bearing Plant, Rolla, N. Dak. (5) "Military Standard Jewel Bearing" means a jewel bearing conforming to Mili tary Specification No. MIL-B-27497 (latest revision) entitled "Bearings, Jewel, Sapphire or Ruby, Synthetic." (b) Jewel bearings required in the performance of this contract shall be procured from the Plant at prices established in the price list dated (date to be filled in by Contracting Officer). Each purchase order issued to the Plant under this contract shall include the prime contract number and date of the price list cited above. The Contractor agrees that the quantities, types, and sizes (including tolerances) of jewel bearings so ordered will be those required for the performance of this contract. Within 90 calendar days after the effective date of this contract the Contractor shall furnish to the Contracting Officer a certification that the required jewel bearings were ordered pursuant to this clause. The Contractor agrees to notify the Contracting Officer promptly of the rejection of his (or any subcontractor's) purchase order in whole or in part by the Plant. The requirement for purchase and use of jewel bearings from the Plant will be waived to the extent of orders rejected because of the Plant's inability to deliver. If such a waiver is granted, an equitable adjustment shall be made in the contract price or delivery schedule, or both, in accordance with the "Changes" clause of this contract. Further, the requirement for use (but not the requirement for purchase from the Plant) of jewel bearings may be waived by the Contracting Officer when such waiver is determined by him to be consistent with established policy. (c) The Contractor agrees to use the Langer-made jewel bearings in the production of subassemblies or end items either under this contract or in his commercial production. (d) Whenever it is necessary for the Contractor or any subcontractor to redesign or reengineer jeweled items in order to satisfy specific performance requirements, the Contractor or subcontractor shall provide in such redesign for the use of military standard jewel bearings. This requirement does not apply when the dimensional tolerances or configurations of military standard jewel bearings are such that their use in the product would prevent attainment of the required level of performance specified for the item. However, when one or more nonstandard bearings must be used to satisfy performance requirements of the jeweled item but military standard jewel bearings will function satisfactorily for other applications within the same item, the item will be required to be redesigned to provide for the use of military standard jewel bearings in such "other" applications. The Contractor or subcontractor is not required to redesign a jeweled item solely for the purpose of converting from the use of nonstandard to mili tary standard jewel bearings. Nothing in this contract shall prevent any Contractor or subcontractor from voluntarily redesigning a jeweled item solely to accommodate the use of military standard jewel bearings. (e) If at the end of the contract period, the total quantity of end items actually ordered under this contract is less than the total estimated quantity, and the Contractor, pursuant to paragraph (b) of this clause, has purchased a larger quantity of Langer-made jewel bearings than used in deliveries made under this contract, an equitable adjustment shall be made (if requested by the Contractor within 90 days after the end of the contract period) to reimburse the Contractor for any additional costs resulting from such excess purchase but in no event shall such additional costs cover more jewel bearings than necessary to deliver the total estimated quantity of end items. Such excess jewel bearings shall be disposed of as directed by the Contracting Officer. However, such excess jewel bearings may be used in partial satisfaction of the requirements to purchase Langer-made jewel bearings pursuant to paragraph (b) of this clause where a subsequent contract to furnish similar end items to the Government is entered into with the same Contractor. In this situation the requirement to purchase and use jewel bearings from the Plant will be waived up to the amount of such excess jewel bearings in Contractor's possession upon submission of a written request by the Contractor. Such request shall contain documented evidence in support of the waiver of purchase and nonuse of such excess jewel bearings. If such waiver is granted, an equitable adjustment to the extent of differences in price lists shall be made in the contract price in accordance with the "Changes" clause of this contract. (f) The Contractor agrees to retain for 3 years from the date of final payment under this contract and upon request of the Contracting Officer to make available during that period records showing compliance with this clause. (g) The Contractor agrees to insert this clause, including this paragraph (g), in every subcontract and purchase order issued in performance of this contract unless he knows that the subassembly, component, or part being purchased does not contain jewel bearings. [37 FR 19815, Sept. 22, 1972, as amended at 40 FR 18785, Apr. 30, 1975] § 1-1.320 Subcontractor gifts and kickbacks. Public Law 86-695, September 2, 1960 (41 U.S.C. 51-54), prohibits the payment, directly or indirectly, by or on behalf of a subcontractor in any tier under any Government negotiated contract of any fee, commission, compensation, gift, or gratuity to the prime contractor or any higher tier subcontractor or to any officer, partner, employee, or agent of the prime contractor, of any higher tier subcontractor, as an inducement or acknowledgment for the award of a subcontract or order. The Act further provides that the amount of any such fee, commission, or compensation, or the cost or expense of any such gratuity or gift, whether heretofore or hereafter paid by the subcontractor, shall not be charged, either directly or indirectly, as a part of the contract price charged by the subcontractor to the prime contractor or higher tier subcontractor. It also creates a conclusive presumption that the cost of any such prohibited payment has been included in the price of the subcontract or order and ultimately borne by the Government. The Act provides for the recovery on behalf of the United States of any such payment from either the subcontractor or recipient, by court action, or by setoff of moneys otherwise owing to the subcontractor either by the United States directly or by the prime contractor. The Act imposes criminal penalties on any person who knowingly makes or receives, directly or indirectly, any such prohibited payment. [30 FR 9539, July 31, 1965] §§ 1-1.321-1-1.322 [Reserved] § 1-1.323 Preference for U.S. Flag Air Carriers. [40 FR 60019, Dec. 31, 1975] § 1-1.323-1 Policy. The policy of the United States regarding the use of air carriers is stated in the International Air Transportation Fair Competitive Practices Act of 1974 (Pub. L. 93-623, January 3, 1975). The Act amended Title XI of the Federal Aviation Act of 1958 (49 U.S.C. 1501 et seq.) and requires all Federal agencies, Government contractors and subcontractors to use U.S. flag air carriers for international air transportation of personnel (and their personal effects) or property to the extent service by such carriers is available. As The contract clause prescribed by this section shall be included in: (a) Invitations for bids, (b) requests for proposals, and (c) contracts (including contracts resulting from unsolicited proposals) whenever it is possible that international air transportation of personnel (and their personal effects) or property will be required in the performance of the contract. The requirements of this section do not apply to small purchases made in accordance with Subpart 1-3.6. PREFERENCE FOR U.S. FLAG AIR CARRIERS (a) Pub. L. 93-623 requires that all Federal agencies and Government contractors and subcontractors will use U.S. flag air carriers for international air transportation of personnel (and their personal effects) or property to the extent service by such carriers is available. It further provides that the Comptroller General of the United States shall disallow any expenditure from appropriated funds for international air transportation on other than a U.S. flag air carrier in the absence of satisfactory proof of the necessity therefor. (b) The contractor agrees to utilize U.S. flag air carriers for international air transportation of personnel (and their personal effects) or property to the extent service by such carriers is available. (c) In the event that the contractor selects a carrier other than a U.S. flag air carrier for international air transportation, he will include a certification on vouchers involving such transportation which is essentially as follows: CERTIFICATION OF UNAVAILABILITY OF U.S. FLAG AIR CARRIERS I hereby certify that transportation service for personnel (and their personal effects) or property by certificated air carrier was unavailable for the following reasons: 1 (state reasons). (d) The terms used in this clause have the following meanings: (1) "International air transportation" means transportation of persons (and their 'See Federal Procurement Regulations (41 CFR 1-1.323-3) or section 1-336.2 of the Armed Services Procurement Regulation, as applicable. personal effects) or property by air between a place in the United States and a place outside thereof or between two places both of which are outside the United States. (2) "U.S. flag air carrier" means one of a class of air carriers holding a certificate of public convenience and necessity issued by the Civil Aeronautics Board, approved by the President, authorizing operations between the United States and/or its territories and one or more foreign countries. (3) The term "United States" includes the fifty states, Commonwealth of Puerto Rico, possessions of the United States, and the District of Columbia. (e) The contractor shall include the substance of this clause, including this paragraph (e), in each subcontract or purchase hereunder which may involve international air transportation. [40 FR 60019, Dec. 31, 1975] § 1-1.323-3 Availability or unavailability or certificated air carrier. (a) Expenditures for service furnished by a noncertificated air carrier generally will be allowed only when services by a U.S. certificated air carrier or carriers are "unavailable” as indicated by the March 31, 1981, Comptroller General's memorandum (B138942) entitled "Guidelines for Implementation of the Fly America Act." The criteria contained in the memorandum are reproduced in this section. Procedures for transportation of cargo or property, other than accompanied baggage, are set forth in 4 CFR Part 52. (b) Use of foreign air carrier service may be deemed necessary if a U.S. flag air carrier otherwise available cannot provide the foreign air transportation needed or if use of such service will not accomplish the agency's mission. (c) U.S. flag air carrier service is considered available even though: (1) Comparable or a different kind of service can be provided at less cost by a foreign air carrier; (2) Foreign air carrier service is preferred by or is more convenient for the agency or traveler; or (3) Service by a foreign air carrier can be paid for in excess foreign currency, unless U.S. flag air carriers decline to accept excess or near excess foreign currencies for transportation payable only out of such monies. (d) Except as provided in paragraph (b) of this section, U.S. flag air carrier service must be used for all Government-financed commercial foreign air travel if service provided by such carriers is available. In determining availability of a U.S. flag air carrier, the following scheduling principles should be followed unless their application results in the last or first leg of travel to or from the United States being performed by foreign air carrier: (1) U.S. flag air carrier service available at point of origin should be used to destination or, in the absence of direct or through service, to the farthest interchange point on a usually traveled route; (2) Where an origin or interchange point is not served by U.S. flag air carrier, foreign air carrier service should be used only to the nearest interchange point on a usually traveled route to connect with U.S. flag air carrier service; or (3) Where a U.S. flag air carrier involuntarily reroutes the traveler via a foreign carrier, the foreign air carrier may be used notwithstanding the availability of alternative U.S. flag air carrier service. (e) For travel between a gateway airport in the United States (the last U.S. airport from which the traveler's flight departs or the first U.S. airport at which the traveler's flight arrives) and a gateway airport abroad (that airport from which the traveler last embarks enroute to the U.S. or at which he first debarks incident to travel from the U.S.), passenger service by U.S. flag air carrier will not be considered available: (1) Where the gateway airport abroad is the traveler's origin or destination airport, and the use of U.S. flag air carrier service would extend the time in a travel status, including delay at origin and accelerated arrival at destination, by at least 24 hours more than travel by foreign air carrier; (2) Where the gateway airport abroad is an interchange point, and the use of U.S. flag air carrier service would require the traveler to wait six hours or more to make connections at that point, or delayed departure from or accelerated arrival at the gateway airport in the United States would extend the time in a travel status by at least six hours more than travel by foreign air carrier. (f) For travel between two points outside the United States the rules in paragraphs (b) through (d) of this section will be applicable, but passenger service by U.S. flag air carrier will not be considered to be reasonably available: (1) If travel by foreign air carrier would eliminate two or more aircraft changes enroute; (2) Where one of the two points abroad is the gateway airport (as defined in paragraph (e) of this section) enroute to or from the United States, if the use of a U.S. flag carrier would extend the time in a travel status by at least six hours more than travel by foreign air carrier, including accelerated arrival at the overseas destination or delayed departure from the overseas origin as well as delay at the gateway airport or other interchange point abroad; or (3) Where the travel is not part of a trip to or from the United States, if the use of a U.S. flag air carrier would extend the time in a travel status by at least six hours more than travel by foreign air carrier including delay at origin, delay enroute and accelerated arrival at destination. (g) When travel under either paragraph (e) or (f) of this section involves three hours or less between origin and destination by a foreign air carrier, U.S. flag air carrier service will not be considered available when it involves twice such travel time or more. (h) Nothing in the above guidelines shall preclude and no penalty shall attend the use of a foreign air carrier which provides transportation under an air transport agreement between the United States and a foreign government, the terms of which are consistent with the international aviation policy goals set forth at 49 U.S.C. 1502(b) and provide reciprocal rights and benefits. [48 FR 43684, Sept. 26, 1983] 81-1.323-4 Disallowance of expenditures. Expenditures for commercial foreign air transportation on foreign air carrier(s) will be disallowed unless |