(a) Workshops shall seek broad competition in the purchase of raw materials and components used in the commodities and services provided the Government under the Act. Workshops shall inform the Committee before entering into multiyear contracts for raw materials or components used in the commodities and services provided the Government under the Act.

(b) Each workshop shall accomplish the maximum amount of subcontracting to small business concerns that the workshop finds to be consistent with efficient performance in producing commodities or providing services under the Act.

In the production of commodities under the Act, a workshop shall make an appreciable contribution to the reforming of raw materials or the assembly of components or a combination thereof. § 51-4.6 Violations.

Any alleged violations of these regulations by a workshop shall be investigated by the appropriate central nonprofit agency which shall notify the workshop concerned and afford it an opportunity to submit a statement of facts and evidence. The central nonprofit agency shall report its findings to the Committee, together with its recommendations, including a recommendation regarding whether allocations to workshops concerned should be suspended for a period of time. In reviewing the case, the Committee may request the submission of additional evidence or may hold a hearing on the matter. Pending a deci

(a) Ordering offices shall obtain commodities and services on the procurement list from the central nonprofit agency shown thereon or its designated workshop(s), except for commodities identified on the procurement list as available through Defense Supply Agency (DSA) or from General Services Administration (GSA) supply distribution facilities.

(b) When a commodity is identified on the procurement list as being available through DSA or from GSA supply distribution facilities, it shall be obtained in accordance with the requisitioning procedures of the supplying agency.

(c) DSA supply centers and GSA supply distribution facilities shall also obtain commodities on the procurement list from the central nonprofit agency shown thereon or its designated workshop(s).

(d) Procedures for obtaining military resale commodities are contained in section 51-5.6.

§ 51-5.1-2 Allations and orders.

(a) Allocation is the action to be taken by a central nonprofit agency to designate the workshop(s) that will produce definite quantities of commodities or perform specific services upon receipt of an order from the ordering office.

20-131-74- -13

(c) Central nonprofit agencies may authorize the ordering office to transmit orders for specified commodities or services directly to the workshop(s) concerned without requesting an allocation for each order. In these cases the central nonprofit agency shall specify the normal leadtime required for orders transmitted directly to the workshop(s). This method shall be used whenever possible since it eliminates double handling and decreases the time required for processing orders.

(d) Requests for allocations shall contain for:

(1) Commodities: Name, stock number, latest specification, quantity, unit price, and place and time of delivery.

(2) Services: Type and location of service required, latest specification, work to be performed, estimated volume, and time for completion.

(e) Ordering offices shall request allocations in sufficient time for the central nonprofit agency to reply, for the order(s) to be placed, and for the workshops to produce the commodity or provide the service (see paragraph (k) of this section).

(f) When a commodity on the procurement list also appears on the schedule of products, Federal Prison Industries, Inc. (FPI), the ordering office shall obtain clearance from FPI prior to re

questing an allocation or placing an order directly to the workshop(s).

(g) The central nonprofit agency shall make allocations to the appropriate workshop(s) upon receipt of a request from the ordering office and instruct the ordering office to forward the order to the central nonprofit agency or direct to the workshop(s).

(h) Central nonprofit agencies shall reply promptly to requests for allocations. When a request for allocation provides a delivery schedule which cannot be met, the central nonprofit agency shall request a revision, which the ordering office should grant, if feasible, or the central nonprofit agency shall issue a purchase exception authorizing procurement from commercial sources as provided in section 51-5.2.

(i) Allocations are not an obligation to supply any commodity or service, nor an obligation for the ordering office to issue an order, nor are workshops authorized to commence production until receipt of an order.

(j) Upon receipt of an allocation, the ordering office shall promptly submit an order to the appropriate central nonprofit agency or designated workshop(s). Where this cannot be done promptly, the ordering office shall so advise the central nonprofit agency and the workshop(s) immediately.

(k) An order for commodities or services shall provide leadtime sufficient for purchase of materials, production or preparation, and delivery or completion.

(1) The central nonprofit agency shall keep the ordering office informed of any changes in leadtime experienced by its workshop(s) in order to keep to a minimum requests for extensions once an order is placed by the ordering office. Where, due to unusual conditions, an order does not provide sufficient leadtime, the central nonprofit agency or workshop, depending on which received the order, may request an extension of delivery or completion date which should be granted, if feasible. If extension of delivery or completion date is not feasible, the ordering office shall (i) notify the central nonprofit agency and workshop(s) as appropriate, and (ii) request the central nonprofit agency to reallocate or to issue a purchase exception authorizing procurement from commercial sources as provided in § 51-5.2.

(m) The ordering office shall provide to the central nonprofit agency concerned a copy of all orders to workshops.

(a) A central nonprofit agency shall grant a purchase exception for an ordering office to procure from commercial sources commodities or services on the procurement list when both of the following conditions are met:

(1) The central nonprofit agency cannot furnish a commodity or service within the period specified, and

(2) The commodity or service is available from commercial sources in the quantities and at an earlier time than it is available from the workshop(s).

(b) The central nonprofit agency may grant a purchase exception when the quantity involved is not sufficient for economical production or provision by the workshop(s).

(c) When the conditions in paragraphs (a) or (b) are met, the central nonprofit agency shall provide a purchase exception promptly and shall specify the quantities and delivery period covered by the exception. The central nonprofit agency shall inform the Committee prior to issuing a purchase exception to procure a commodity or service from commercial sources when the value of the procurement is $2,500 or more.

(d) When a purchase exception is granted for procurement from commercial sources under paragraph (a) above:

(i) Purchase action shall be taken within 15 days following the date of the purchase exception or as may be extended by the central nonprofit agency with the concurrence of the Committee.

(ii) A copy of the solicitation shall be provided to the appropriate central nonprofit agency at the time it is issued. § 51-5.3

Prices.

(a) The prices included in the procurement list are fair market prices established by the Committee.

(b) Prices for commodities, except for military resale commodities, are for delivery aboard the vehicle of the initial carrier at point of production (f.o.b. shipping point), and include packaging, packing, and marking as shown on the procurement list.

(c) Price changes for commodities and services shall apply to all orders placed on or after the effective date of the change and in special cases, with the concurrence of the ordering office, to undelivered orders on hand at the workshop on the effective date of the change.

(d) Some prices are different for eastern and western areas of the United States. The western area includes the States of Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, Utah, and Washington. Westernarea prices are applicable to items manufactured by workshops located in these States.

(e) If an ordering office desires packing, packaging, or marking of products other than the standard pack or as provided in the procurement list, the difference in cost thereof, if any, shall be added to the purchase price.

§ 51-5.4 Shipping and packing.

(a) Commodities, except for military resale commodities, shall be delivered aboard the vehicle of the initial carrier at point of production (f.o.b. shipping point) for transportation to destination on Government bills of lading. Delivery is accomplished when a shipment is placed aboard the vehicle of the initial carrier. Time of delivery is the date shipment is released to and accepted by the initial carrier. Bills of lading may accompany orders or be otherwise furnished, but they must be supplied promptly. Failure by an ordering office to furnish bills of lading promptly may result in an excusable cause for delay in delivery.

(b) Standard pack information is stated in item descriptions. In ascending order, standard pack is given in multiples of the unit of issue contained within the inner wrap(s) and the outer shipping container pack.

(c) Shipping weights, where available, are included in the procurement list. The weight indicated applies to the last quantity shown in the information on standard pack.

Government departments and agencies (authorized resale outlets) shall request the central nonprofit agency to designate the workshop to which orders shall be forwarded.

(b) Authorized resale outlets shall stock military resale commodities in as broad a range as is practicable. Comparable brand name items procured from commercial sources may also be stocked to meet patron demand, but not to the exclusion of military resale commodities.

(c) The price of military resale commodities includes delivery to destination or, in the case of destinations overseas (including Alaska and Hawaii), to designated depots at ports of embarkation. [38 FR 16320, June 21, 1973, as amended at 38 FR 28938, Oct. 18, 1973]

§ 51-5.7 Adjustment and cancellation of orders.

When the central nonprofit agency or a workshop fails to comply with the terms of a Government order, the ordering office shall make every effort to negotiate an adjustment before taking action to cancel the order. When a Government order is canceled for failure to comply with its terms, the central nonprofit agency shall be notified, and, if practicable, requested to reallocate the order. The central nonprofit agency shall notify the Committee of any cancellation of an order and the reasons therefor.

(b) Services provided by blind or other severely handicapped workshops shall be performed in accordance with Government specifications and standards. Where no Government specification or standard exists, the services shall be performed in accordance with good commercial practices.

§ 51-5.10 Quality complaints.

(a) When the quality of a commodity received is not considered satisfactory by the using activity, the activity shall take the following actions as appropriate:

(1) For commodities received from DSA supply centers or GSA supply distribution facilities, notify the supplying agency in accordance with that agency's procedures.

(2) For commodities received from blind or other severely handicapped workshops, address complaints to the workshop involved with a copy to the central nonprofit agency with which it is affiliated.

(b) When the quality of a service is not considered satisfactory by the using activity, the activity shall address complaints to the workshop involved with a copy to the central nonprofit agency with which it is affiliated.

(c) In those instances where quality problems cannot be resolved by the workshop and the using activity, the Committee and the central nonprofit agency shall be advised.

§ 51-5.11

Specification changes.

(a) Specifications cited in the procurement list may undergo a series of changes, indicated by successive suffix letters, to keep current with industry changes and agency needs. Since it is not feasible to show the latest revision current on the publication date, only the basic specification is referenced in the procurement list. Procurement agencies shall notify the central nonprofit agency concerned of the latest applicable specification.

(b) When a Government department or agency is changing the design or construction of a commodity on the procurement list that involves the assignment of a new Federal stock number, the Committee and the central nonprofit agency concerned shall normally be permitted to comment on such change and shall be notified of the change prior to its effective date.