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Sec. 9-56.405 Selection of contractors for en.

gineering and construction work. AUTHORITY: The provisions of this part 9-56 issued under sec. 161, as amended, 68 Stat. 948, 42 U.S.C. 2201; sec. 205, as amended, 63 Stat. 390, 40 U.S.C. 486.

SOURCE: The provisions of this part 9–56 appear at 34 F.R. 15235, Sept. 27, 1969, unless otherwise noted. § 9-56.000 Scope of part.

This part sets forth AEC policies for the use of Contract Proposal Evaluation Boards and policies governing particular types of contracts. & 9-56.001 Applicability.

(a) The policies and requirements of this part are to be used in the selection of:

(1) Operating contractors; and

(2) Participants under the Power Demonstration Program.

(b) Also, they are to be used for contracts estimated to exceed $500,000 in the selection of:

(1) Research and development contractors;

(2) Architect-engineer contractors, including those for advance engineering;

(3) Cost-type construction contractors; and

(4) Any other contractor where & judgment of relative technical and managerial capabilities of a group of firms must be made in which the primary objective is the selection of the best qualified firm.

(c) The policies and requirements of this part shall be used for the selection of the contractors for contracts referred to in paragraph (b) of this section estimated to cost less than $500,000 whenever it is considered likely that later phases of the same project will cause the contract to exceed $500,000.

(d) The policies and principles of this part are also applicable to the selection of contractors for contracts estimated to cost less than $500,000, however, less formal procedures and practices than those described in this part may be followed, depending on the circumstances in each particular selection, at the discretion of the designating official.

(e) Reserved.

(f) The policies and requirements of this part do not apply to the following:

(1) Extensions of contracts where it has been appropriately determined that formal selection procedures need not be followed;

(2) Formally advertised contracts or fixed-price negotiated contracts in which price is the primary consideration;

(3) Research and development contracts entered into under the criteria in Subpart 9-4.51 or 9-4.52;

(4) Determination as to whether & given scope of work should be performed in AEC-owned or in commercial facilities; and

(5) Determination as to which existing AEC operating contractor should perform a given scope of work,

(g) In paragraphs (b), (c), and (d) of this section, the $500,000 limit applies to the related construction costs for A-E contracts. For A-E contracts, including selections for advance engineering work, where a related construction cost cannot be determined, the limit in the provisions applies to estimated contract cost of $50,000. & 9-56.002 Policy, cost-type contractor

procurement. For the selections of subcontractors under AEC cost-type contracts of the type identified in AECPR 9-56.001(b), evaluations normally should be made on the basis of group judgment by representatives experienced in technical and business areas appropriate to the requirement, using weighted evaluation factors established prior to receipt of proposals. Numerical ratings should be supplemented with supporting narrative explanations of the important judgments involved in arriving at such ratings. Subpart 9-56.1Contract Proposal

Evaluation Boards $ 9-56.100 Scope of subpart.

This subpart sets forth AEC policy, concerning the use of Contract Proposal Evaluation Boards. § 9–56.101 Use of Contract Proposal

Evaluation Boards. It is the policy of AEC to use Contract Proposal Evaluation Boards in the selection of contractors for contracts of the type referred to in § 9-56.001 (a), (b), and (c). & 9-56.102 Purpose of Contract Pro

posal Evaluation Boards. The use of Contract Proposal Evaluation Boards is designed to:

(a) Facilitate the selection of contractors;

(b) Provide for selection of the best contractor for a given job;

(c) Insure consistent treatment of $ 9-56.403 Selection of new onsite seryfirms under consideration; and

ice contractors. (d) Help promote mutual understanding between AEC and its prospective

Normally a firm will not be considered

for selection for an onsite service concontractors.

tract where the work to be performed Subpart 9–56.2 [Reserved] under the AEC contract, together with

work being performed for other GovernSubpart 9-56.3 [Reserved)

ment agencies and others, would place Subpart 9-56.4— Policy Governing

the firm in a predominant position in a

field of industrial activity germane to Particular Types of Contracts

the contract work, unless that action § 9-56.401 Replacement of contractors would be contrary to the Government's

operating AEC-owned plants or lab- interest and if other qualified firms are oratories.

available. (a) Where any of the following con

$ 9-56.404 Selection of research and deditions exist, contractors operating

velopment contracts for work in comAEC-owned plants or laboratories at

mercial facilities. AEC-owned locations are subject to replacement at the time their contracts are

In selecting recipients of research and proposed for extension, and they will not

development work, it is basic AEC policy be considered for selection to continue

to assign the work where it can be done to operate such plants or laboratories,

most effectively and efficiently. Where it unless that action would be contrary to is otherwise appropriate to assign the the Government's interest and if other work to a commercial concern, it is also qualified firms are available:

the policy of the AEC to make such wide (1) Marginal performance;

distribution of contract awards as will (2) Conflict of interests between com

encourage broad participation by qualimercial and contract activities when

fied research and development contracfound to outweigh the advantages of us

tors performing work in their own faciliing contractors who are demonstrating

ties in order to: a sufficient interest in the field of atomic energy to have maintained their own

(a) Maintain a competitive industrial commercial program and thus are assist

base; and ing in establishing a private, competitive

(b) Prevent firms from attaining & nuclear industry; or

predominant position in a major seg(3) Overconcentration of the firm's ment of the atomic energy industry. activities in the Atomic Energy Commis

8 9–56.405 Selection of contractors for sion's program.

engineering and construction work. (b) Where any of the following conditions apply, the normal selection proc

(a) It is the policy of the AEC to ess.(i.e., requesting proposals from in- encourage broad participation by qualidustry and others) will be considered for fied architect-engineers and constructhe selection of contractors described in tors in the atomic energy programs to paragraph (a) of this section at the time

the fullest extent practicable in order to: such existing contracts are proposed for (1) Avoid undue concentration of extension, if qualified firms are available:

work with any firm or group of firms in (1) Where the existing operating con

a particular field of work (architecttractor's performance is considered not better than average; or.

engineer or construction); and (2) Where the circumstances under

(2) Develop and maintain a broad

base of contractors with atomic energy score the high desirability of giving adequate opportunity to other organiza

experience and/or nuclear capability tions to compete for the business of

which may be used for AEC or commersupplying services to the AEC.

cial requirements. $ 9–56.402 Replacement of service-type

(b) A firm currently under contract contractors performing services of a

to AEC or to a cost-type AEC contractor continuing nature for the AEC at shall not be invited to submit a proposal AEC-owned locations.

for work in the same field if the proThe policy set forth in 9-56.401 posed project would be performed conabove is applicable to the replacement of currently with the existing contract and onsite service-type contractors.

if the estimated cost of the new con

struction work involved is in excess of $ 9-59.000 Scope of part. $10 million or the estimated cost of the

This part establishes AEC policy and architect-engineer services is in excess

requirements for administration of costof $1 million where a construction cost type contractor procurement. estimate cannot be determined. If, for

$ 9-59.001 General. cogent reasons, the designating official believes that such a firm should be

(a) AEC utilizes cost-type contractors invited, approval shall be obtained from

for the operation of its facilities, for the the Division of Contracts. This require

performance of research and develop

ment, and for other services. Such conment shall not apply to:

tractors are generally selected for tech(1) Firms currently engaged only on

nical and managerial capabilities, and AEC fixed-price construction contracts

are expected to make full use thereof in awarded as a result of formal advertising order to achieve the flexibility and highor invited bids;

quality products and services required for (2) Any firm currently engaged on AEC programs. AEC contracts in the same field, the total (b) Procurement activities of AEC of which involves construction costs of cost-type contractors are governed by less than $10 million; or

the requirements of applicable contract (3) Any architect-engineer firm after

provisions. Federal Procurement Reg. it has completed title II work, exclusive

ulations generally are not directly appliof checking shop drawings, even though

cable to AEC cost-type contractors.

There are, however, requirements of cer. it still has title III inspection services to

tain Federal laws, executive orders, and perform.

regulations, including Federal Procure(c) Normally, only those firms which ment Regulations, which pertain to proare compatible with the size and com- curements by cost-type contractors. plexity of the job requirements should These requirements, together with imbe invited; that is, for a small relatively plementing AEC Procurement Regulasimple job, firms whose resources and tions, and certain additional AECPR's qualifications are far in excess of the

which apply to contractor procurement, job requirements should not be solicited,

are listed in § 9-59.004. In addition, AEC and where size and simplicity of the job

has established certain procurement permit, invitees should be limited to the

policies for its cost-type contractors. geographic area of the job.

These are found in § 9-59.003.

$ 9-59.002 Responsibility of contract. PART 9-59-ADMINISTRATION OF

ing officers. COST-TYPE CONTRACTOR PRO- (a) Contracting officers are responsiCUREMENT ACTIVITIES

ble for assuring that procurement by

cost-type contractors conforms to conSec.

tract requirements and provides effective 9-59.000 Scope of part.

and timely support to agency programs. 9-59.001 General.

In carrying out this responsibility, con9-59.002 Responsibility of contracting off- tracting officers: (1) Assure that AEC

cost-type contracts include those provi9-59.003 Policies for cost-type contractor

sions required by law or regulations, and procurement. 9-59.004 AECPR-FPR provisions pertaining

such other provisions as are appropriate to cost-type contractor procure

to implement AEC policies and requirement.

ments; (2) review contractor procure9-59.005 Procedures for handling mistakes ment systems (including policies) as re

under cost-type contractor pro- quired by this section and in accordance curement.

with the provisions of their contracts; 9-59.006 Procurement from contractorcontrolled sources.

(3) review individual procurement ac

tions of certain types or above stated dol. AUTHORITY: The provisions of this part

lar levels established in accordance with 9-59 issued under sec. 161, as amended, 68 Stat. 948, 42 U.S.C. 2201; sec. 205, as amended,

Subpart 9-51.2; and (4) make periodic 63 Stat. 390, 40 U.S.C. 486.

appraisals of the contractor's performSOURCE: The provisions of this part 9-59

ance of the procurement function in appear at 34 FR. 15236, Sept. 27, 1969, unless accordance with criteria established by otherwise noted.

the Director, Division of Contracts.


(b) Contracting officers shall require cost-type contractors to submit written descriptions of procurement systems and methods used or proposed to be used in the contract work when:

(1) The contract is for the construction, operation, or maintenance of an AEC facility (including research and development facilities) which is segregated from the contractor's regular business; or

(2) The contract provides for substantial procurement services incident to the construction of AEC facilities; or

(3) The contractor has set up a separate supply function under AEC contracts; or

(4) Expected procurement is considered sufficiently significant by the contracting officer to warrant such action.

(c) In reviewing cost-type contractor descriptions of procurement systems and methods, contracting officers shall assure that such statements are not inconsistent with this part. $ 9-59.003 Policies for cost-type con.

tractor procurement. The following policies are established for cost-type contractor procurement. Within these policies it is expected that procurement systems and methods will vary according to the types and kinds of procurement to be made, the needs of the particular programs, and the experience, methods, and practices of the particular contractor. In the development of procurement systems and methods, contractors should be encouraged to make maximum utilization of their experience and initiative to the extent consistent with the requirements of this part.

(a) Procurement systems and methods utilized for AEC contract work should be well defined and consistently applied and should accord with good business practices for the type and amount of procurement involved.

(b) Procurement should be effected in the manner most advantageous to the Government-price, quality, and other factors considered. In order to assure this objective and the award of business on an impartial basis, procurement (from sources other than Government sources) shall be effected by methods calculated to assure such full and free competition as is consistent with securing the required supplies and services. Generally, procurement actions are carried out through one of the following methods:

(1) Competitive bids or quotations and award. The competitive bid or quotation and award method of procurement, which normally assures the greatest degree of full and free competition, generally involves the following basic steps and objectives:

(i) Preparation of invitations for bids or requests for quotations setting forth the contract terms and conditions and describing the requirement clearly, accurately, and completely, but avoiding unnecessarily restrictive specifications or requirements.

(ii) Publicizing such invitations or requests by distribution to a reasonable number of prospective bidders and by such other means as may be appropriate, in sufficient time to permit the preparation and submission of bids or quotations before the time set for opening or receipt of bids or quotations.

(iii) Handling bids or quotations in a manner which provides fair and equal treatment to all prospective contractors.

(iv) Making an award to the prospective contractor whose bid or quotation, conforming to the invitation or request, will be most advantageous to the Government, price and other factors considered. However, if upon evaluation of written bids or quotations it is determined to be in the best interests of the Government to enter into negotiations with prospective contractors before award, such negotiations should be conducted in accordance with (2) below with respect to according fair and equal treatment to prospective contractors.

(2) Negotiation. Procurement by this method normally should be conducted by competitive negotiations through the solicitation and evaluation of proposals, from an adequate number of qualified sources to assure effective competition, consistent with securing the required supplies or services. Negotiated procurement involves advance planning, description of procurement and delivery requirements, and consideration of the effect these requirements may have on prices and competition. Requests for proposals should describe the property or services required as completely as possible; allow sufficient time for the submission of proposals; and establish a closing date for receipt of proposals. Proposals should be handled in a manner which provides fair and equal treatment to all prospective offerors. Selection of offerors for negotiation and award shall be consistent with FPR 1-3.805 and $ 9-3.805.

(c) Price or cost analyses shall be performed in accordance with the requirements of FPR 1-3.807 and $9–3.807, Pricing Techniques and FPR 1-3.809 and $ 9--3.809, Contract audit as a pricing aid. Profits and fees paid shall be consistent with limitations established in § 9-3.808– 51.

(d) Supplies and services normally should be procured through the use of suitable specifications, standards, and/or purchase descriptions which clearly and accurately describe the supplies or services to be procured. If such specifications, standards, and/or purchase descriptions are not available and it is impractical or uneconomical to prepare them, "brand name or equal" descriptions may be used. provided the particular physical, functional, or other characteristics of the brand name item which are deemed essential

are clearly identified and described.

(e) A fair proportion of supplies and services shall be procured from small business concerns.

(f) The need for access authorizations to classified information shall not be a limiting factor in obtaining competition except where time will not permit securing additional access authorizations.

(g) Awards shall be made only to responsible prospective contractors. Awards shall not be made to firms or individuals on the AEC List of Disqualified Bidders and Ineligible Contractors.

(h) Selection of the type of contract to be used should be based on consideration of the nature of the supplies and services required and other circumstances sur

rounding the procurement. The costplus-percentage-of-cost system of contracting shall not be used in any event.

(1) Small purchases (less than $2,500) should be made by methods designed to (1) obtain fair and reasonable prices, (2) reduce administrative costs of making such purchases to the minimum required to establish the propriety of placing the order at the price paid with the supplier concerned, and (3) improve opportunities for small business concerns within the local trade area to obtain a fair proportion of purchases.

(j) Subcontracts and purchase orders for supplies and services for the AEC work normally should include provisions for resolving disputes to the same extent and in the same manner as in similar AEC direct contracts. A disputes clause which can be used to carry out this policy is set forth in $ 9–7.5004–3(b). & 9-59.004 AECPR-FPR provisions per

taining to cost-type contractor pro

curement. The AECPR-FPR provisions referenced below pertain to cost-type contractor procurements and are listed in this part to facilitate administration. Some of these provisions are implementations of statutory or other requirements and AEC-wide policies, which provide little or no basis for the exercise of judgment. However, to the extent such provisions permit or provide for the exercise of judgment, contracting officers should be guided by good business practice and the best interests of the Government.

Subject Federal Paper Specifications... Contingent Fees--Small Business. Labor Surplus Area Concerns. Qualified ProductsMinority Business Enterprises-

Organizational Conflicts of Interest..
Price Negotiation Policies and Techniques
Subcontracting Policies and Procedures..
Public Utilities.-
Livestock Products
Indemnity Representation.
Measurement Differences, SSNM Transfers...
Enriched Uranium Agreements..
Multiyear Procurement -
Special and Directed Sources.
Foreign Purchases.--

Reference 9-1.305-1(b). 9-1.501. 9-1.700. 1-1.805-1. 9-1.11. 9-1.1310(a) and (b), 1-1.1310

(1) and (2). 9-1.5403. 1-3.8, 9-3.800. 1-3.9, 9-3.901. 9-4.402(b). 9-4.601. 9-4.5008. 9-4.5300. 9-4.5400. 9-4.5500. 1-1.319, 9-5.000. 9-6.100, 9-6.800, 9-18.600. 9–7.000-50, 9-14.5002, 9-7.5003

(c). 9-8.000.


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