CHANGE 15, 30 Sep 50 To Part I, Chapter VII 7103.06 anticipated in the procurement of supplies that the total contract price will exceed $100,000 or when it is deemed advisable by the contracting officer placing the contract to obtain detailed cost break-downs, WD Standard Procurement Form 105 and related forms will be used. In all other procurement of supplies, in connection with which a written bid is * desired, WD Standard Procurement Form 104 will be used. 7103.07 Designation of Contracting Officers a. Officers who are contracting officers by virtue of positions. Division and District Engineers, as defined in paragraph 7101.03, are contracting officers by virtue of positions held. b. Redelegation of contracting officer authority. Except as may be specifically stated in a designation of a contracting officer by the Chief of Engineers and except as restricted in c below, Division and District Engineers, as defined in paragraph 7101.03 are authroized to redelegate, without power of further redelegation, any part of their contracting officer authority. Except as otherwise specifically provided herein, such power of redelegation will not include the redelegation of power to approve contracts, which must be done personally by the approving officer. c. Limitation on redelegation of contracting officer authority. Engineers will not redelegate contracting officer authority in excess of the monetary limitations prescribed for District Engineers in the execution of contracts without approval of higher authority. d. Letters of delegation. Officers and employees designated as contracting officers by Division and District Engineers will be designated as such by letter, stating the period and the limit of authority granted, and such letter will be exhibited by the officer or employee, if required, as evidence of his authority. Such designations may be made for a limited or an unlimited period of time but will delineate the contracting officer's authority by stating the monetary limit on his authority, the types of contracts to be executed, etc. Such designations may be revoked by the issuing officer or his successor. Contracting officer designations may be revoked by any of three methods: (1) by specific letter of revocation, (2) by expiration of the time specified in the letter of designation, or (3) by virtue of the person designated ceasing to function under the supervision of the designating authority. Copies of letters of contracting officer authority or revocation will not be forwarded to the Chief of EngiFollowing is a sample of the context of a letter delegating contracting officer authority: Under authority of paragraph 7103.07, 0 & R, you are hereby designated contracting officer with authority to enter into contracts not exceeding in amount, for supplies and services. This authority shall be effective as of the date hereof. 7103.07 e. Contracts to be signed or approved in person. Contracting officers will personally sign contracts entered into by them on behalf of the Government, and approving officers will personally approve contracts executed subject to their approval, unless otherwise specifically provided herein. f. Designation of authorized representatives. Authorized representatives of the contracting officers will be so designated in writing and a copy of each such designation will be immediately submitted to contractors concerned. g. Contracting officer authority of commanding of ficers of engineer depots and engineer supply officers at other depots. Commanding officers of engineer depots and engineer supply officers at other depots will possess contracting officer authority only to the extent that same may be redelegated to them expressly by the Assistant Chief of Engineers for Military Supply and Procurement, Office of the Chief of Engineers, except in cases where such officers are under the jurisdiction of Division Engineers. 7103.08 Award of Contracts, Change Orders and Supplemental Agreements a. Award of advertised contracts of less than $100,000.--Awards to be made as the result of advertising, where the amount involved is less than $100,000, may be made by Division and District Engineers without approval of higher authority. See h below. b. Award of advertised contracts of $100,000 or more. Awards to be made as the result of advertising, where the amount involved is $100,000 or more, will be made with the prior approval of the Division Engineer, under the following conditions, with respect to supply contracts; (1) the low bid is to be accepted; and (2) bids have been received from at least two competing manufacturing sources; and with respect to construction contracts, see h below. Award of purchase orders and contracts not exceeding $1,000. The authority contained in JPR 4-104 to make awards of purchase orders and contracts without advertising when the amount involved does not exceed $1,000 is intended to facilitate the procurement of supplies and services and should be utilized in any case where it will be in the best interest of the Government. For instance, in spite of the qualifying clauses in JPR 4-104.3, it will always be considered in the best interest of the Government to make small purchases for shipment overseas where the items requisitioned are urgently needed rather than to wait for an accumulation of the item or items. d. Award of negotiated contracts of less than $25,000. Negotiations may be entered into and awards may be made as the result of negotiation under any of the 11 conditions specified in JPR 4-111, where the amount involved is less than $25,000, by Division and District Engineers without approval of higher authority. CHANGE 12, 20 Aug 49 To Part I, Chapter VII 7103.08 Award of negotiated contracts of $25,000 or more but less than $100,000. Awards to be made as the result of negotiation pursuant to JPR 4-111, where the amount involved is $25,000 or more but less than $100,000, will require the prior approval of the Chief of Engineers. f. Award of negotiated contracts requiring approval of the Chief, Current Procurement Branch, Logistics Division, GSUSA. Awards to be made as the result of negotiation, except as indicated in c, d, and e above, or as otherwise authorized by Section IV, JPR, will require the prior approval of the Secretary of the Army through the Chief, Current Procurement Branch, Logistics Division, GSUSA. g. Change orders and supplemental agreements. (1) Approval by division or district engineer. Change orders and supplemental agreements of less than $100,000 may be approved by Division or District Engineers. (2) Approval by the Chief of Engineers. Change orders and supplemental agreements to advertised contracts involving the sum of $100,000 or more will require the approval of the Chief of Engineers. (3) Approval by Chief, Current Procurement Branch, Logistics Division, GSUSA. Change orders and supplemental agreements to negotiated contracts involving the sum of $100,000 or more will require the approval of the Director of Logistics, Chief, Current Procurement Branch. (1) The h. Conditions governing award of construction contracts. following conditions must exist to justify awards of construction contracts under a and b above: (a) The contract was duly advertised. (b) Bona fide bids were submitted by more than one bidder covering the entire job. (c) The amount of the contract is within the total authorized by the construction directive after due allowance has been made in the amount for Government costs, plus centrally procured items, plus costs of material furnished by the district engineer, plus the costs of work to be performed by the Signal Corps, plus contingency to cover any possible change orders to the contract, plus any other charges which should be made against the job. (d) The amount of the award does not exceed by more than 15 percent the Government estimate of cost (including in the Government estimate allowance for contractor's profit). (e) No appeal has been made from a decision of the Division or District Engineer covering a protest to the specifications or to the award which cannot be satisfactorily adjusted by the Division or District Engi neer. 1 7103,08 1 Nov 46 CHANGE 12, 20 Aug 49 To Part 1, Chapter VII (f) The proposed award conforms to all other applicable provisions of JPR and O & R. (2) forwarded with full details to the Chief of Engineers, attention: AssistWhen the conditions in (1) above do not exist the case will be ant Chief of Engineers for Military Construction. 7103.09 Contracts Requiring Approval of Higher Authority As set forth in JPR 5-200, various special types of contracts, change or ders, and supplemental agreements, as well as contracts containing special types of contract articles, must be executed subject to the approval of higher authority. approval article will be included; (2) all changes and deletions shall be made before the instrument is forwarded for such approval, and (3) the Where such approval is required: instrument shall not be valid until such approval has been obtained. (1) an appropriate In the case of supplemental agreements or change orders relating to contracts for personal or professional services, JPR 4-105.5 requires that such supplemental agreement or change order be subject to the approval of the Secretary of the Army if a material change in the contract is involved. In order that a uniform determination may be made in all cases of what constitutes a material change, all supplemental agreements and change orders to contracts for personal or professional services which involve any change in fee or scope of work will be submitted to the Chief of Engineers for such determination, together with a copy of the record of negotiation. Contracts Requiring Approval of the Chief of Engineers 7103.10 Subject to the requirements of the preceding paragraph, the following contracts will be executed subject to the approval of the Chief of Engineers: All contracts not executed on standard forms. b. All contracts executed on standard forms where material deviation has been made. C. change in the provisions of the prime contracts to which they relate. a. 17 of the "Contract Settlement Act of 1944", the Act of 1 July 1944 (58 e. All patent agreements. (See paragraph 7111.17 b.) f. All relocation agreements entered into on ENG Form 1354 (Contract CHANGE 8, 7 Oct 48 To Part I, Chapter VII 7103.11 7103.11 Contract Requiring Approval of the Division Engineers Subject to the requirements of the two preceding paragraphs, the following contracts will be executed subject to the approval of the Division Engineer: a. Contracts executed on WD Contract Form 14 (Rental Agreement-Government-Owned Construction or Road Maintenance Equipment). The Division Engineer is authorized to designate an officer in his office empowered to approve such contracts. This approval will be "By Direction of the Division Engineer." b. Contracts executed on ENG Form 520 (Contract for Reconditioning Construction and Maintenance Equipment). The Division Engineer is authorized to designate an officer in his office empowered to approve such contracts. This approval will be "By Direction of the Division Engineer." C. Leases executed on ENC Form 647 (Lease of Government-Owned Machine Tools and Equipment). The Division Engineer is authorized to designate an officer in his office empowered to approve such contracts. This approval will be "By Direction of the Division Engineer." 7103.12 Contracts Requiring Approval of Department of the Army Power Procurement Officer (See JPR 4-111.4 and 5-200.7). 7103.13 Execution and approval of contracts by District Engineer Subject to mandatory requirements of the 4 preceding paragraphs, contracts, change orders, and supplemental agreements, hereinafter referred to in this paragraph as "contracts", may be signed or approved as follows: a. Contracts of less than $100,000 entered into by District Engineers will not require the approval of higher authority. b. District Engineers may sign or authorize the signing of any contract regardless of amount when award has been approved by higher authority where required and the contract is executed on an approved form of contract. 7103.14 Fixed-Fee Construction Contract Negotiations Limitation on fee to contractor. If the contract to be negotiated is to be on a fixed fee basis, the amount of the fixed fee will not be greater than the limitations established by the Under Secretary of the Army as published in the "Contract Negotiations Manual" or modifications thereof as may be issued from time to time. The negotiations will be conducted as prescribed in that manual. The fixed fee in fixed fee contracts, includes all the contractor's profit, non-reimbursable services, and overhead, such as non-reimbursable services of the executives and general administrative expenses of central offices and necessary financing. Records of negotiations are not contract instruments and will not be distributed to disbursing officers or the General Accounting Office. |