business concerns that are labor surplus area concerns, (2) other small business concerns, and (3) other labor surplus area con

cerns.

(c)(1) The term "labor surplus area" means a geographical area identified by the Department of Labor as an area of concentrated unemployment or underemployment or an area of labor surplus.

(2) The term "labor surplus area concern" means a concern that together with its firsttier subcontractors will perform substantially in labor surplus areas.

(3) The term "perform substantially in a labor surplus area" means that the costs incurred on account of manufacturing, production, or appropriate services in labor surplus areas exceed 50 percent of the contract price.

[End of Clause]

(b) The "Labor Surplus Area Subcontracting Program" clause, set forth in this paragraph (b), shall be included in all contracts which may exceed $500,000, which contain the clause required by § 1-1.805-3(a) and which, in the opinion of the procuring activity, offer substantial subcontracting possibilities. Furthermore, prime contractors who are to be awarded contracts which may not exceed $500,000 but which, in the opinion of the procuring activity, offer substantial subcontracting possibilities, shall be urged to accept this clause.

LABOR SURPLUS AREA SUBCONTRACTING
PROGRAM

(a) The Contractor agrees to establish and conduct a program which will encourage labor surplus area concerns to compete for subcontracts within their capabilities. In this connection, the Contractor shall

(1) Designate a liaison officer who will (i) maintain liaison with duly authorized representatives of the Government on labor surplus area matters, (ii) supervise compliance with the Utilization of Concerns in Labor Surplus Areas clause, and (iii) administer the Contractor's "Labor Surplus Area Subcontracting Program";

(2) Provide adequate and timely consideration of the potentialities of labor surplus area concerns in all "make-or-buy” decisions;

(3) Assure that labor surplus area concerns will have an equitable opportunity to compete for subcontracts, particularly by arranging solicitations, time for the preparation of bids, quantities, specifications, and delivery schedules so as to facilitate the participation of labor surplus area concerns;

(4) Maintain records showing the procedures which have been adopted to comply

with the policies set forth in this clause and report subcontract awards (see 41 CFR 116.804-5 regarding use of Optional Form 61). Records maintained pursuant to this clause will be kept available for review by the Government until the expiration of 1 year after the award of this contract, or for such longer period as may be required by any other clause of this contract or by applicable law or regulations; and

(5) Include the Utilization of Concerns in Labor Surplus Areas clause in subcontracts which offer substantial labor surplus area subcontracting opportunities.

(b)(1) The term "labor surplus area" means a geographical area identified by the Department of Labor as an area of concentrated unemployment or underemployment or an area of labor surplus.

(2) The term "concern located in a labor surplus area" means a labor surplus area concern.

(3) The term “labor surplus area concern” means a concern that, together with its first-tier subcontractors, will perform substantially in labor surplus areas.

(4) The term "perform substantially in labor surplus areas" means that the costs incurred on account of manufacturing, production, or appropriate services in labor surplus areas exceed 50 percent of the contract price.

(c) The Contractor further agrees to insert, in any subcontract hereunder which may exceed $500,000 and which contains the Utilization of Concerns in Labor Surplus Areas clause, provisions which shall conform substantially to the language of this clause, including this paragraph (c), and to notify the Contracting Officer of the names of such subcontractors.

[End of Clause]

[29 FR 10104, July 24, 1964, as amended at 32 FR 18048, Dec. 16, 1967; 34 FR 17954, Nov. 6, 1969; 35 FR 8484, June 2, 1970; 40 FR 44138, Sept. 25, 1975; 43 FR 26010, June 16, 1978]

§ 1-1.805-4 Review of subcontracting program.

The adequacy of the contractor's "Labor Surplus Area Subcontracting Program" shall be reviewed by the procuring agency concerned, and any deficiencies shall be brought to the attention of the contractor's liaison officer with a request for corrective action.

§ 1-1.806 Depressed industries.

[43 FR 26010, June 16, 1978]

(a) Section 302(d) of the Federal Property and Administrative Services Act of 1949 requires, with respect to advertised procurement, that bids be referred to the Attorney General for appropriate action when in the opinion of the agency head they evidence any violation of the antitrust laws. The referral of such bids shall be in accordance with this Subpart 1-1.9.

(b) Where proposals received in competitive negotiated procurements evidence violations of the antitrust laws, the procedures in this Subpart 1-1.9 may be used in referring such proposals to the Attorney General.

[29 FR 10104, July 24, 1964, as amended at 48 FR 54617, Dec. 6, 1983]

§ 1-1.902 Documents to be transmitted.

In reporting cases of possible violations of the antitrust laws to the Attorney General, each agency shall transmit, in addition to a copy of each suspect bid, the documents and statements enumerated below (the expression "suspect bids" or variations thereof, as used in this Subpart 1-1.9, shall be deemed to include any bids which indicate practices which may evidence

possible violations of the antitrust laws including collusive bidding, follow-the-leader pricing, rotated low bids, identical bids, or any other bid device intended to deprive the Government of the benefit of full and free competition):

(a) One copy of the invitation for bids and any amendments thereto.

(b) An abstract of all bids received for each item covered by the bid invitation for which suspect bids were received, showing for each such item:

(1) The unit and total price bid.

(2) The net price to the Government after discounts and allowance for transportation, or other costs, are absorbed by the bidder.

(3) The name of the manufacturer of the item or the source of supply if the bidder is a dealer or distributor, and the location of the plant from which shipment will be made. Where identical bids are filed by dealers, distributors, or jobbers representing the same manufacturer or supplier, they frequently indicate adherence to the supplier's list or suggested price to the Government. Unless the procurement agency has some evidence that such identical bids resulted from collusion or concert of action among the bidders they need not be reported to the Attorney General.

(4) The destination of shipments, and whether the price quoted includes or excludes the cost of transportation to destination.

(5) The identity of the successful bidder, and, where identical low bids were submitted by several bidders, an indication of how the award was made.

(c) Copies of documents filed by suspect bidders as part of the bid submission or obtained by the procuring agency such as the following:

(1) Contracts with contingent fee representatives who acted on behalf of one or more of the bidders who submitted identical bids or assisted them in the preparation of their bids.

(2) Correspondence or other evidence of patent rights owned or licensed by bidders quoting identical prices.

(3) Evidence of the existence of financial or other ties between bidders submitting suspect bids as revealed by

Dun and Bradstreet or other reliable financial reports.

(4) Any pertinent financial or corporate information concerning the suspect bids as may be contained in financial statements or annual reports to stockholders.

(d) Copies of reports containing the findings of any special investigations conducted by the procurement agency concerning the bids reported.

(e) Copies of any correspondence between the procurement agency and the suspect bidders revealing the factors responsible for the filing of suspect bids, or explaining the prices bid.

§ 1-1.903

Additional information.

In addition to the documentary matter described above, the following information must be submitted, or appropriate remarks made, to the degree available, with respect to each suspected antitrust violation:

(a) Where there is a prior pattern of procurement of the item for which suspect bids were received, indicate the procurement agency's annual dollar value of purchases of the item in each of the three calendar years preceding the year in which the suspect bids were received.

(b) With respect to purchases of the item in prior years, submit an abstract of all suspect bids received in response to each invitation for bids issued in the preceding three-year period, setting forth in such abstract the information described in § 1-1.902. If this information was submitted with a prior reference of identical bids to the Attorney General it will be necessary only to state that the information was submitted with a suspect bid reference of a specified date.

(c) Indicate whether the pattern of bidding in the three-year period preceding the receipt of the suspect bids reported appears to indicate such practices as bid rotation, sharing of the business, collusive bidding, or any other form of joint action. If such practices are indicated, explain in detail.

(d) If there are any known financial, personal, or other than personal relationships among any of the suspect bidders, describe them.

(e) Indicate if the Government's specifications for the item are SO drawn that only a limited number of potential bidders are capable of meeting these specifications.

(f) Indicate whether the item is covered by active patents and if such patents are owned or controlled by any of the suspect bidders. If information is available, submit full details, including any evidence that patent control may have a bearing on price identity.

(g) If there are any known manufacturers or suppliers of the item who consistently avoid bidding on Government contracts, identify such suppliers or manufacturers and indicate whether the procurement agency has any knowledge as to the reasons why these firms avoid seeking Government busi

ness.

(h) Indicate if the prices bid by the suspect bidders are their published list prices or if they are prices applicable only to the particular bid. If the prices quoted by the suspect bidders are not their published list prices, state whether they appear to have been arrived at by the application of a uniform Government discount from list prices or by some other method of computation. If available, furnish photostatic copies of suspect bidders' and other bidders' price lists.

(i) Indicate whether it is known to be the general practice of the manufacturers of the item to adhere to pricing systems which may be characterized as delivered pricing, zone pricing, or basing point pricing. If the answer is in the affirmative, describe the nature of the pricing system used.

(j) Indicate whether, in the opinion of the procurement agency, the suspect or tie bids submitted appear to stem from collusion or conspiracy on the part of the suspect bidders, and, if so, explain the basis for this opinion.

Subpart 1-1.10-Publicizing Procurement Actions

§ 1-1.1001 General policy.

(a) Proposed procurements shall be publicized as prescribed in this Subpart 1-1.10 to increase competition, thus assisting small business and labor surplus area concerns and broadening

participation in Government procurement programs. In addition, market searches for competitive sources shall be publicized when required by this subpart and § 1-3.107(b) for the purpose of enhancing competition and reducing the number of noncompetitive procurements.

(b) Refer to § 1-4.1109-6 for the policy relating to publicizing the intent to place orders against ADP schedule contracts and the actions required following the synopsis.

[48 FR 16261, Apr. 15, 1983]

§ 1-1.1002 Availability of invitations for bids and requests for proposals.

A reasonable number of copies of each invitation for bids and request for proposals publicized in the Department of Commerce Synopsis (see § 11.1003–1), including specifications and other pertinent information, shall be maintained by the issuing office. To the extent such unclassified invitations for bids and requests for proposals are available, they shall be provided upon request to manufacturers, construction contractors, and regular dealers and to others having a legitimate interest therein, such as publishers, trade associations, procurement information services and others who disseminate information concerning invitations for bids and requests for proposals; otherwise the procuring activity may limit the availability of invitations for bids and requests for proposals to perusal at the issuing office. With regard to classified procurements, this § 1-1.1002 applies to the extent consistent with agency security requirements.

§ 1-1.1002-1 Availability of procurement information and publications.

Procuring activities shall make information available to potential suppliers concerning formal advertising and negotiation procedures and shall encourage potential suppliers to utilize the Commerce Business Daily which is a valuable source of information on proposed procurements.

[40 FR 2811, Jan. 16, 1975]

§ 1-1.1002-2 Publicizing proposed small purchases.

Procuring activities shall ensure that proposed small purchases are publicized to the maximum extent practicable consistent with the dollar value of the actions and any time constraints applicable to the purchases. One or more of the following methods of publicizing shall be used:

(a) Displaying on bulletin boards in the purchasing office and/or other public places.

(b) Preparing periodic handouts listing proposed purchases, and displaying these lists as in paragraph (a) of this section.

(c) Publicizing in local newspapers or other mass communication media.

(d) Encouraging and assisting local area trade associations in disseminating small purchase information to their members.

[40 FR 44138, Sept. 25, 1975]

§ 1-1.1003 Synopses of proposed procurements.

§ 1-1.1003-1 Department of Commerce Synopsis.

(a) The "Commerce Business Daily, Synopsis of U.S. Government Proposed Procurement, Sales and Contract Awards," informally known as "Department of Commerce Synopsis" or "Synopsis," is published daily, except Saturdays, Sundays, and holidays, by the U.S. Department of Commerce, Chicago, Illinois. Section 8 of the Small Business Act (15 U.S.C. 637(e)) empowers the Secretary of Commerce to obtain notice of certain proposed procurement actions from any Federal department, establishment, or agency engaged in procurement of supplies and services in the United States; and to publicize such notices in the Department of Commerce Synopsis immediately after the necessity for the procurement is established.

(b) The primary purpose of the Department of Commerce Synopsis is to provide industry with information concerning current Government contracting and subcontracting opportunities, including information as to the identity and location of Government

contracting offices and prime contractors having current or potential need for certain types of products or services.

(c) The Department of Commerce Synopsis is available on an annual subscription basis, and subscriptions can be entered at any Department of Commerce office. Complimentary subscriptions are available to participating Government activities upon request.

(d) Procurement agencies shall develop procedures for assuring that proposed procurements are publicized in the Synopsis as required by this § 11.1003.

81-1.1003-2 General requirements.1

of

(a) In accordance with section 8 of the Small Business Act, all proposed defense procurement actions $10,000 and above, and all proposed civilian agency procurement actions of $5,000 and above, will be published promptly in the Department of Commerce Synopsis (see § 1-1.1003-6), except that the following need not be so publicized:

(1) Procurements of a classified nature where the information necessary to be included or referenced in the solicitation (invitation for bids or request for proposals) is in itself of a classified nature and the public disclosure of this information would violate security requirements. All other classified procurements shall be published in the Synopsis if sufficient information of an unclassified nature can be provided in the solicitation to enable a prospective contractor to submit a bid or proposal;

(2) Procurements of perishable subsistence;

(3) Procurements which are for utility services and the procuring agency in accordance with applicable law has predetermined the utility concern to whom the award will be made;

(4) Procurements which are of such unusual and compelling emergency that the Government would be seriously injured if bids or offers were permitted to be made more than 15 calendar days after issuance of the in

'See Temporary Regulation 75 in the appendix to Chapter 1 for temporary changes to § 1-1.1003-2.

vitation for bids or request for proposals or the date of transmittal of the synopsis, whichever is earlier;

(5) Procurements that are made by an order placed under an existing contract except as provided in § 1-4.1109-6 with respect to nonmandatory ADP Schedule contracts;

(6) Procurements which are made from another Government department or agency, or a mandatory source of supply;

(7) [Reserved]

(8) Procurements which are for services from educational institutions;

(9) Procurements in which only foreign sources are to be solicited; or

(10) Procurements for which it is determined in writing by the procuring agency, with the concurrence of the Administrator of the Small Business Administration, that advance publicity is not appropriate or reasonable.

(The term "defense procurement actions," as used in this § 1-1.1003-2, shall apply only to procurement made by the Department of Defense.)

(b) The dollar amount specified in § 1-1.1003-2(a) is not a prohibition against publicizing procurements below that amount where it is determined that such publication would be advantageous to industry or to the Government.

[29 FR 10104, July 24, 1964, as amended at 35 FR 3070, Feb. 17, 1970; 48 FR 16262, Apr. 15, 1983]

§ 1-1.1003-3 Synopses of special notices used in connection with market searches for competitive sources.

(a) General. The term "sourcessought synopsis" means the type of Commerce Business Daily (CBD) notice designed to identify potential sources for procurements (e.g. § 11.1003-7(b)(7) and (b)(12)). The sources-sought synopsis provides an opportunity for the marketplace to indicate its interest in submitting bids, offers, proposals, or quotations for a future procurement. It is normally used to discover if more than one firm is interested and qualified to provide a particular product, service, or research capability, although a solicitation is not yet available. This type of synopsis has particular application when one