Page images
PDF
EPUB

(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 § 9-3.80851.

(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

Subject

Federal Paper Specifications.. Contingent Fees..

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 pertaining 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.

Reference

9-1.305-1(b).

9-1.501.

[blocks in formation]

Patents and Copyrights..

Bonds and Insurance__

Taxes

Labor

Subject

Cost Principles..

Construction

Contract Finance_

Approval of Contracts---

Procedures for handling mistakes under cost-type con

tractor procurement.

Contractor-controlled sources__.

Subcontractor Selection___

Records and reports

Small Business and Labor Surplus Reports_ Possible Antitrust Violations_.

Identical Bids.....

Dissemination of Procurement Information_. Contract Reporting..

Justifications

[36 F.R. 24805, Dec. 23, 1971]

§ 9-59.005

[blocks in formation]

mistakes under cost-type contractor procurement.

(a) Managers of Field Offices may authorize the withdrawal of bids or the correction of mistakes in bids submitted to, and contracts awarded by, cost-type contractors in accordance with this section.

(1) Contractors may permit the withdrawal of bids upon a showing of clear and convincing evidence of the alleged mistake.

(2) Contractors may correct obvious clerical errors in bids disclosed prior to award, regardless of amount.

(3) Except as provided in paragraph (4) of this section, contractors may correct other mistakes in bids and contracts as provided in this section.

(4) Managers' of Field Offices approval shall be required for:

(i) Any corrections of mistakes which would cause the bid or contract price (a) to exceed that of the second low bid, or (b) to displace one or more lower acceptable bids;

(ii) Any corrections of mistakes in bids, other than obvious clerical errors, in procurement actions which require AEC approval;

(iii) Any correction of mistakes in contracts disclosed after award which exceed $1,000; and

(iv) Any rescission of a contract.

Reference

9-9.5001, 9-9.5101.

9-10.000.

9-11.203, 9-11.350, 9-11.4.

9-12.000, 1-12.8.

9-15.50.

9-18.150, 1-18.305(b), 9-18.305, 9-18.50, 9-18.108.

1-30.4, 1-30.5, 9-30.4, 9-30.5, 9

30.7.

9-51.200, 9-51.400, 9-51.500, 9

51.600.

9-59.005.

9-56.002, 9-56.405.

Reference

9-1.709, 9-1.807.

9-1.901.

9-1.1603.

9-3.103.

9-54.

9-55.102-3, 9-55.204.

(b) Corrections of mistakes are authorized under paragraph (a) (3) and (4) of this section when:

(1) There is clear and convincing evidence to support both the assertion of a mistake and the amount thereof;

(2) The mistake was made in good faith;

(3) The mistake is of such a nature that correction thereof is justified by considerations of fair dealing; and

(4) The mistake is of the type that would be corrected under the contractor's private procurement practices, or with respect to mistakes in bids in excess of $1,000, or which otherwise require approval of Managers of Field Offices, a determination is made that relief would be granted under applicable Federal law.

(c) The authority of this section may not be used to make a bid responsive.

(d) Where rescission is an appropriate remedy, the Manager may authorize a modification in a specific amount, or approve revisions in other terms and conditions, in lieu of rescission.

(e) Where a contract is executed or work is continued after assertion of a mistake, the alleged mistake may be considered on its merits as of the time it was asserted, provided the contract was executed or the work continued pursuant to an understanding that such action did not constitute a waiver of any rights.

(f) Corrections of mistakes or other remedial actions taken pursuant to this

section shall be documented by a written statement setting forth the circumstances and basis for such action and shall be made a part of the procurement file.

(g) When correction of mistakes or other relief cannot be granted under the criteria of this section, Managers of Field Offices may deny the request or forward the file to the Director, Division of Contracts, with their recommendation for action.

§ 9-59.006 Procurement from contractor-controlled sources.

(a) When a cost-type contractor maintains a separate procurement function for performance of work in AEC facilities on AEC sites, procurement from contractor-controlled sources (any division, subsidiary, or affiliate of the contractor under a common control) may be treated in the same manner as procurement from other sources provided:

(1) The procurement is made under the same terms and conditions as would apply if the purchase was from a third party;

(2) The procurement is made in accordance with policies and procedures particularly designed to permit fair and open competition which have been approved by the contracting officer; and

(3) The procurement is made in a manner which results in legally enforceable terms and conditions.

When any of the conditions above cannot be met, procurements involving contractor-controlled sources should be made directly by, or with the prior approval of, AEC.

(b) Guidance with respect to reimbursement for procurements or transfers from contractor-controlled sources by cost-type contractors other than those identified in paragraph (a) of this section is set forth in § 9-15.5010-19. In these cases adequate provisions should be made to give the Government the benefit of customary warranties and protection against patent infringement applicable under the circumstances.

(c) Subcontracts for performance of contract work itself (as distinguished from procurement of supplies and services needed in connection with the performance of work) require AEC authorization which may involve an adjustment of the contractor's fixed fee (see, for example, § 9-7.5006-56, Note (a)). If the cost-type contractor seeks authorization to have some part of the contract work performed by a contractor-controlled source, and the contractor's performance of that work was a factor in the negotiated fixed fee, AEC approval would normally require (1) that the contractor-controlled source perform such work on a cost basis without profit or (2) an equitable downward adjustment to the contractor's (i.e., the contracting component's) fixed fee.

CHAPTER 10-DEPARTMENT OF THE TREASURY

Part

10-12 Labor.

10-60

Procedures for settling contract dispute appeals.

[blocks in formation]

tional origin. The provisions of Chapter 60 of this title apply to the contracts of the Treasury Department except as may be specifically provided herein. The regulations in this subpart prescribe administrative requirements and procedures to assure compliance with the program for equal employment opportunity under Treasury contracts.

(b) Sections 10-12.803 to 10-12.815 apply exclusively to contracts with financial agents, as defined in § 10-12.803(c). Sections 10-12.816 to 10-12.830 are reserved for subsequent provisions governing financial agents. Sections 10-12.831 to 10-12.899 are reserved for regulations applying to other Treasury contracts covered by Executive Order 11246, as amended.

[blocks in formation]

The Secretary has designated the General Counsel as the Treasury Department Contract Compliance Officer, who is responsible to the Secretary for carrying out the duties and responsibilities of the Department under Executive Orders 11246 and 11375, and Chapter 60 of this title and the provisions of this subpart. The General Counsel is assisted by the Director of the Office of Equal Opportunity Program, who is also the Deputy Contract Compliance Officer for the Department. The Deputy Contract Compliance Officer is responsible for conducting or supervising the conduct of all compliance reviews to be undertaken by the Department of banks and financial institutions. He will also furnish assistance required in determining such matters as

the compliance status of contractors, the Compliance Agency for any contract, and all other questions arising in the application of chapter 60 of this title and the provisions of this subpart to Treasury contracts.

[35 F.R. 19180, Dec. 18, 1970]

§ 10-12.803 Definitions.

(a) The term "Compliance Agency" means the Treasury Department.

(b) The term "contract" includes any agreement to serve as a financial agent, whether written or implied by the performance of services as a financial agent.

(c) The term "financial agent" in this subpart means a bank which, under Treasury Department regulations, accepts deposits of public money in any amount, or any financial institution which, under Treasury Department regulations, acts as either an issuing or paying agent for U.S. savings bonds and savings notes. The term "financial agent" does not include any organization, other than a financial institution, which is an issuing agent only, or a Federal Reserve Bank.

§ 10-12.804 Equal opportunity clause.

(a) By operation of the order, as amended, and of the regulations of the Treasury Department in 31 CFR Parts 202, 203, 214, 317, and 321, the equal opportunity clause in section 202 of Executive Order 11246, as amended, applies to every contract with a financial agent whether the contract is made by written agreement with the Department, or with a Federal Reserve Bank acting as its fiscal agent, or is created by the deposit of public money by an officer, agent, or employee of the United States.

(b) Hereafter, the equal opportunity clause shall be incorporated by reference in every written agreement entered into by a financial agent with the Treasury Department, or with a Federal Reserve Bank acting as its fiscal agent.

[blocks in formation]

has qualified. On the basis of information available to and furnished by the Contract Compliance Officer to the qualifying authority, the qualification of a financial agent may be deferred pending a review of the agent's equal opportunity compliance status. The provisions of § 60-1.6(d) of this title shall not otherwise apply to the making of a contract with a financial agent.

§ 10-12.807 Reports.

(a) Compliance reports. Each financial agent which has 50 or more employees shall file annually on or before the 31st day of March a complete and accurate report on Standard Form 100 (EEO-1) promulgated jointly by the Office of Federal Contract Compliance, the Equal Employment Opportunity Commission, and Plans for Progress, or such form as may hereafter be promulgated in its place.

(b) Initial reports. Each newly qualified financial agent shall file with the Contract Compliance Officer an initial report on a form supplied by that officer within 30 days after receipt of the report form. If such report is filed on the compliance report form required under paragraph (a) of this section between November 1 of the year in which the financial agent is qualified and the following March 31, no further report will be due as of that March 31.

§ 10-12.808 Segregated facilities.

(a) All financial agents agree as part of their obligations as an equal opportunity employer not to maintain or provide for employees any facilities which are segregated on the basis of race, color, religion, or national origin, at the main office or any branch office.

(b) An application or agreement to perform the services of a financial agent shall include a certification in the form approved by the Director that no such segregated facilities are or will be maintained.

[blocks in formation]
« PreviousContinue »