quarters, Department of the Army, which established uniform criteria and methods for evaluation.

(d) The results of the technical and scientific reviews and evaluations will be provided by written advice to a requesting agency in the minimum number of copies necessary. Four copies will be furnished to the Chief, Contracts Division, Office of the Deputy Chief of Staff for Logistics, Headquarters, Department of the Army.

[26 F.R. 10565, Nov. 9, 1961]

§ 592.850-4 Use of audit services.

(a) Advisory reports of the cognizant audit agency will be obtained for use in establishing negotiation cognizance, where necessary.

(b) Information obtained from contractors pursuant to § 592.850-2 will be referred to the cognizant audit agency for advisory report as to (1) reliability of contractor's estimating and costing procedures, (2) methods used in identifying, segregating, and allocating costs of independent research and of development programs; (3) acceptability of costs within the criteria of § 15.205-35 of this title, and (4) other observations intended to provide the procuring activity having negotiation cognizance with complete factual guidance in the area of costs.

[26 F.R. 10566, Nov. 9, 1961]

§ 592.850-5 Conduct of negotiations.

(a) The negotiation of independent research and development costs will be conducted pursuant to the pertinent policies and procedures in Subpart H, Part 3 of this title and this subpart. The Department of the Army procuring activity having negotiation cognizance, as sponsor, will insure that such negotiations are fully coordinated and that timely notification of the time and place for the negotiation conference is furnished to other interested procuring activities.

(b) It is the responsibility of each Head of Procuring Activity to advise the procuring activity having negotiation cognizance as to any limitations, special provisions, or cost-sharing arrangements, contained in any contract which will be effected by the negotiations and which is being administered by that procuring activity. In addition, representatives of procuring activities designated to participate in a negotiation conference, will be prepared for such par

ticipation by a thorough knowledge of the contract provisions, the information submitted by the contractor, and of any scientific and technical review and evaluation or audit report thereon.

(1)

(2)

(c) Upon completion of negotiations, the procuring activity having negotiation cognizance will prepare a negotiation summary which will include: The purpose of the negotiation; names and position title of both the Government and the contractor's representatives; (3) a summary of the contractor's proposal and submitted information, the scientific and technical review and evaluation, if any, pertinent audit comments and the advisory comments of technical, pricing, and legal personnel of the procuring activity having negotiation cognizance; (4) a list of affected contracts, showing contract numbers, total dollar value and uninvoiced dollar amount by contract, and type of contract (unless such list is provided in the advisory audit report); (5) any special treatment agreed upon for contracts containing limitations, special provisions or cost sharing arrangements; (6) special details of the negotiated cost allowance, including ceiling value, if any, and the effect on rates for overhead, and general and administrative expense with an estimate of the total resulting cost to the Department of the Army. The negotiation summaries will be signed by the principal negotiator and approved by an official responsible for procurement in the procuring activity having negotiation cognizance. Copies of the negotiation summary will be distributed for action and information, as appropriate, to the following in the quantities indicated:

(i) Chief, Contracts Division, Office of the Deputy Chief of Staff for Logistics, 50 copies;

(ii) Headquarters, Air Force Logistics Command (MCPFA), 177 copies;

(iii) Office of Naval Material (37), 60 copies, and

(iv) Armed Services Research Specialists Committee, 5 copies. [26 F.R. 10566, Nov. 9, 1961]

§ 592.850-6 Recognition in contracts.

Agreements reached as a result of negotiations determine the extent and manner of allowance of contractor's costs of independent research and development programs. Such agreements will be fully expressed in contracts affected thereby, either by special provisions in the basic contract or by supple

mental action, as appropriate, and will clearly define any limitations, ceilings, or cost-sharing arrangements.

[26 F.R. 10566, Nov. 9, 1961]

Subpart 1-Subcontracting Policies and Procedures

SOURCE: 592.900 and 592.903-1 appear at 25 F.R. 1620, Feb. 25, 1960.

§ 592.900 Scope of subpart.

See $3.900 of this title.

§ 592.903-1 Contract clauses.

Where a contracting officer determines that a dollar amount in excess of $100,000 should be inserted in paragraphs (b) (ii) and (b) (iii) of the "Subcontracts" clause (§ 3.903-1(a) of this title), prior approval to include the increased amount will be obtained from the Head of the Procurement Activity. Requests submitted to heads of procuring activities shall be accompanied by complete statements of the circumstances justifying the need for increasing the amount, and will include such facts, conclusions and recommendations necessary to support the contracting officer's request.

594.5000 594.5001

Scope of subpart.

Aviation plants assigned for procurement and mobilization planning.

AUTHORITY: §§ 594.000 to 594.5001 issued under sec. 8012, 70A Stat. 157; 10 U. 8. C. 3012. Interpret or apply secs. 2301-2314, 70A Stat. 127-133; 10 U. 8. C. 2301-2314.

§ 594.000 Scope of part.

This part sets forth the policy with respect to (a) procurement under Federal Supply Schedule Contracts, and (b) procurement of printing and related supplies.

[21 F. R. 4285, June 19, 1956]

Subpart A-Procurement Under Federal Supply Schedule Contracts

§ 594.101 Federal supply schedule con

tracts.

(a) Delivery orders for supplies in the Federal Supply Schedule will be addressed and forwarded direct to the contractor indicated and shall contain sufficient data to enable prompt identification (by disbursing and auditing agencies) of the correct listing in the proper Federal Supply Schedule. These data will include contract number, item number, and, where applicable, supplement, region, or zone number.

(b) Each such delivery order will indicate the name of the finance officer who will make the payment.

(c) Each such delivery order will indicate on its face that prices, if shown, will be subject to the basic contract of the Federal Supply Service, General Services Administration.

(d) In the case of service station deliveries of gasoline and lubricating oil under Federal Supply Schedule (classes 7 and 14) by means of an identification card, the delivery ticket prepared by the service station and signed by identification card holder at the time of delivery constitutes a "delivery order." When such a delivery ticket is used as a "delivery order," the provisions of paragraphs (b) and (c) of this section do not apply.

[26 F.R. 9215, Sept. 30, 1961]

§ 594.103 Mandatory use of Federal Supply Schedules.

[20 F.R. 3506, May 19, 1955]

§ 594.103-1 General.

See 5.103-1 of this title. [25 F.R. 1620, Feb. 25, 1960]

§ 594.103-2 Exceptions to mandatory

use.

When an emergency purchase is made on the open market of supplies or services, listed in Federal Supply Schedules as mandatory on the Department of Defense, the payment voucher submitted to the disbursing office shall be accompanied by a copy of the finding made by the contracting officer that "the purchase was justified because such supplies or services could not be furnished under Federal Supply Schedule contracts at the time they were required." The determination that the supplier could not furnish such supplies or services by the time required can be made only if the suppliers in the applicable schedules have been given the opportunity to so state. In each instance, the finding will set forth the specific reasons why the time element made the emergency purchase necessary. Such finding shall be final and conclusive.

[26 F.R. 9215, Sept. 30, 1961]

§ 594.106 Federal Supply Schedule with multiple award provisions.

Selection of equipment by users from a Federal Supply Schedule offering multiple award provisions will be governed generally by price. However, a using activity may request purchase of a particular make, model, or brand name item

by providing the contracting officer with a written justification supporting the selection of such item. When an item listed on the Federal Supply Schedule which is of foreign origin is requested, the contracting officer prior to ordering the item shall make a determination that either as provided in § 595.103-2 of this subchapter, there is no known domestic item which can be used as a reasonable substitute for the particular foreign item or as provided in § 6.104-4 of this title, the cost of the domestic item is unreasonable.

(a) When the total purchase price of the order is in excess of $2,500, using activities requesting a particular make, model, or brand name item, other than the lowest priced item, will furnish to the contracting officer the supporting justification stated above for use in documenting the contract file. Such justification may include but is not limited to the following:

(1) Time required for delivery.

(2) Differences in performance characteristics. The justification should describe the desirable features of the brand name item requested (i) which other similar items do not have, (ii) which are considered essential to the operation of the using activity, or (iii) which will increase the operational efficiency of the using activity.

(3) Compatibility with existing equipment or systems. Where a particular brand name, equipment, or system has already been installed at the using activity and additional equipment is required, purchase of a particular brand name item may be necessary to be compatible with the existing equipment or system. However, this justification shall not be used to purchase additional items of a particular brand name solely because items of that particular brand name are already in use.

(4) Service. Where adequate repair services or repair parts are not available for particular items listed in the schedule, other items for which adequate services or parts are available may be purchased.

(5) Trade-in allowance offered on equipment on hand. For evaluation purposes, when an item is traded in for an item of foreign origin, the percentage factor as required by § 6.104-4 of this title will be added to the price of the foreign item prior to subtracting the trade-in allowance.

(6) Any other factors which may justify the use of a particular brand name item.

(b) When the total purchase price of the order is $2,500 or less, using activities requesting a brand name item, other than the lowest priced item available, will indicate the justification therefor on their Purchase Request and Commitment (DA Form 14-115) or similar form. Detailed justification as in paragraph (a) of this section is not required. Where considered necessary to support the procurement, factors discussed in paragraph (a) (1) through (6) of this section may be used as a guide.

(c) When a brand name item of foreign origin is requested from a Federal Supply Schedule, the using activity requesting the item will include, in addition to the justification required by paragraphs (a) and (b) of this section, information which will enable the contracting officer to make a determination under the provisions of the Buy American Act that either (1) as provided in § 6.103-2 of this title, there is no known domestic item which can be used as a reasonable substitute for the particular foreign item, or (2) as provided in § 6.103-3 of this title, the cost of the domestic item is unreasonable. Where Federal Supply Schedules indicate that the General Services Administration has made a determination under the Buy American Act that "there are no comparable items manufactured domestically," the contracting officer is not required to make the determination in subparagraphs (1) and (2) of this paragraph. [25 F.R. 4171, May 11, 1960, as amended at 25 F.R. 10661, Nov. 8, 1960]

Subparts B-E [Reserved] Subpart F-Procurement of Printing and Related Supplies

§ 594.601 Printing and related supplies. Procedures applicable to the procurement of printing and related supplies are as follows:

(a) Printing. (AR 310-5, pertaining to printing, binding, and duplicating, and SR 310-5-1, pertaining to printing and production of military publications.)

(b) Envelopes. (AR 310-5 and Class 53, Federal Supply schedules.) Procurement procedure pertaining to mailing envelopes and related provisions applying to use of penalty markings are pub

(a) The Assistant Secretary of Defense (Installations and Logistics) is responsible for overall supervision and coordination of Department of Defense single procurement assignments.

(b) The Assistant Secretary of the Army (Installations and Logistics) is responsible for overall monitorship of single procurement assignments within the Department of the Army. Specific monitorship is exercised by the Deputy Chief of Staff for Logistics, Headquarters, Department of the Army, Washington, 25, D.C.

(c) Chiefs of the technical services are responsible for implementing, supervising, and coordinating the operational aspects of Department of Defense single procurement assignments. The technical service having responsibility for a particular item may be determined from the AR 701-series, or paragraph 5c, AR 701-5 (Administrative regulations of the Department of the Army).

(a) General Services Administration. The Assistant Secretary of Defense (Installations and Logistics) assigned to the General Services Administration (GSA) the responsibility for procurement of office furniture, machines, and supplies for the Department of Defense.

(b) Obtaining office furniture, machines and supplies. Requiring departments are responsible for obtaining their requirements of office furniture, machines, and supplies through the General Services Administration in accordance with the General Services Administration procedures. Procurement through General Services Administration shall be made from a Federal Supply Schedule, the General Services Administration Stores Depots, or through the General Services Administration's consolidated purchasing program. Shipment may be made directly to military depots or to military use points.

(c) Procurement coordination. The technical services which are assigned "purchase and inspection responsibilities" are responsible for performing procurement coordination services required of the Department of the Army as a result of interagency purchase assignments to the General Services Administration.

(d) General Services Administration implementing procedures. Implementing procedures governing interagency procurement of office furniture, machines, and supplies are contained in Exhibits 13, 19 and 22 respectively, of Appendix C,

GSA Regulation 1-11-301.01 of the Regulations of the General Services Administration, Title I, Personal Property Management.

§ 594.1103 General principles governing implementation of Procurement assignments.

§ 594.1103-1 Standard format; development and promulgation of implementing procedures.

(a) Implementation. Chiefs of technical services assigned single procurement responsibilities shall develop, publish, and maintain procedures implementing such assignments. The procedures shall follow the Department of Defense Directive 4115.1 format set forth in paragraph (b) of this section, and shall be published in the AR 715series. Prior to publication, the implementing procedures or substantive changes to the procedures shall be forwarded to the Deputy Chief of Staff for Logistics, Department of the Army, ATTN: Chief, Contracts Division, for review and approval by the Office of the Assistant Secretary of Defense (Installations and Logistics).

(b) Format and content of implementing procedures. Procedures issued by chiefs of technical services implementing single procurement responsibilities shall conform to the format set forth in this paragraph and shall contain the information required therein. Instructions for implementing particular paragraphs are shown within parentheses. Where the parentheses have been omitted the exact language shown shall constitute the implementation for that particular paragraph.

1. Authority. a. (State the authority designating responsibility for single procurement assignment, including a citation to ASPR 5-1100.2).

b. (Indicate the Federal Supply Classification (FSC) code, description and list of items included in the assignment. Where partial assignments of Federal Supply Classes have been made, either the items included or the items excluded should be indicated.)

2. Contracts and liaison. (Indicate procurement functions, points of contact and liaison offices. Designate office and telephone number to be contacted with regard to any questions arising in particular functional areas. This applies to both requiring and purchasing departments.)

3. Notification of requirements for procurement planning purposes. (State the procedures to be followed by the requiring departments in furnishing budget requirements and proposed phased procurement