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cess to proprietary or source selection information.

matter will be referred to the Principal Official Responsible for Acquisition (PORA) for a final determination.

(k)(1) Source selection information includes "derivative documents” which are documents containing references to or directly citing or paraphrasing proprietary or source selection information.

303.104-6 Restrictions on Government

officials, employees, and consult

ante. (b) Procurement officials leaving the Department will be required to complete the certification set forth in Chapter 1-90 of the General Administration Manual if that official leaves the Department during the conduct of a procurement expected to result in a contract or modification in excess of $100,000. The administrative officer will forward a copy of the certification to each responsible contracting officer for incorporation into the contract file.

303.104-6 Disclosure of proprietary

and source selection information. (a) The contracting officer or any other individual who prepares, makes or controls proprietary, source selection information, or derivative documents shall

(1) Ensure documents are marked as prescribed in FAR 3.104-4 (j) and (k);

(2) Provide physical security for documents in the office environment during and after duty hours; and

(3) Ensure security of interoffice mailing of documents by using opaque envelopes, double wrapping with more than one envelope, and sealing of envelopes, as necessary.

(b) Individuals responsible for preparing derivative documents are responsible for marking such documents in accordance with FAR 3.104–5(b).

(c) Only the contracting officer has the authority to authorize individuals, or classes of individuals, access to proprietary or source selection information for each procurement except for paragraph (d) of this section.

(d) The following classes of individuals are authorized blanket access to only that source selection information developed before a request for contract is sent to the contract office, or to later modifications or supplements to such information

(1) The generators of the requirements, including program, scientific, and technical experts involved in the development of the statements of work, specifications, evaluation plans, budget estimates, or similar documents;

(2) Reviewing officials; and

(3) Supervisors in the management chain of the individuals listed in paragraphs (d) (1) and (2) of this section. The contracting officer shall include in the contract file names and functions of any other individuals authorized ac

303.104-9 Certification requirements.

(c) The contracting officer shall include the contracting officer certification in the contract file for each contract action over $100,000. Including the certificate in the contract file shall be considered notification to the head of the agency.

(e)(2) The waiver shall be submitted to the Office of Acquisition and Grants Management in the Office of Management and Acquisition, Office of Management and Budget in the Office of the Secretary for review and approval before submission to the head of the agency.

303.104-11 Processing violations

or possible violations. (a)(1) The contracting officer determination that a reported violation or possible violation of the statutory prohibitions has no impact on the impending award or selection of a source must be submitted through channels, along with supporting documentation, to the PORA for review and approval of the determination before award of a contract.

(2) The contracting officer's determination that a reported violation or possible violation of the statutory prohibitions has an impact on the pending award or selection of a source must be referred through channels, along with all related information available, to the PORA (if the PORA is an SES) or to another SES official designated by the OPDIV. That individual will

(1) Refer the matter immediately to request whether particular individuals the Office of Acquisition and Grants are included on the list. Management in the Office of Management and Acquisition, Office of Man- Subpart 303.2-Contractor Gratuagement and Budget, Office of the Sec- ities to Government Personnel retary for review, which office may consult with the Office of the General 303.203 Reporting suspected violations Counsel and the Office of the Inspector of the Gratuities clause. General, as appropriate; and

Departmental personnel shall report (ii) Determine the action to be taken suspected violations of the Gratuities on the procurement in accordance with clause in accordance with Subpart M, FAR 3.104-11 (c) and (d).

Reporting Violations, of the Depart(b) The individual in paragraph (a)(2) ment's Standards of Conduct (45 CFR of this section acts as the agency head Part 73) and General Administration designee with respect to actions taken Manual Chapter 5-10, rather than as under the FAR clause at 52.203–10, specified in FAR 3.203. Refer to Subpart Remedies for Illegal or Improper Activ- E, Gifts, Entertainment, and Favors, of ity.

45 CFR Part 73 for an explanation re

garding what is prohibited and what is 303.104-12 Ethics program training re- permitted.

quirements. (a) The Office of Acquisition and Subpart 303.3-Report of Grants Management in the Office of Suspected Antitrust Violations Management and Acquisition (OAGM), Office of Management and Budget in 303.303 Reporting suspected antitrust the Office of the Secretary is respon

violations. sible for developing a training module A copy of each report of suspected which can be used by the Department's antitrust violations submitted to the OPDIVs and Regional offices to train Attorney General shall also be submitprocurement officials. Upon receipt of ted to the Director, Office of Acquisithe module, each OPDIV and Regional tion and Grants Management. Office must train the procurement offi

(49 FR 13964, Apr. 9, 1984, as amended at 54 cials set forth in 303.104 4(h)(1) before

FR 24342, June 7, 1989) they can act as procurement officials. (b) After the training has been com

Subpart 303.4-Contingent Fees pleted, each procurement official must sign the “Procurement Official's Cer- 303.408 Evaluation of the SF 119. tificate of Procurement Integrity” before he/she can act as a procurement 303.408–1 Responsibilities. official on any procurement. The cer

(b) The chief of the contracting office tificate shall be submitted to the serv

shall perform the review required by icing personnel office, where the cer

FAR 3.408–1(b) and should consult with tificate will be filed on the left side of

the Office of General Counsel, Business the employee's Official Personnel Fold

and Administrative Law Division, er. A copy of the certificate shall be

when deemed necessary. provided to the contract office which shall maintain a list of the procure- 303.409 Misrepresentations or violament officials who have signed the cer- tions of the Covenant Against Contificates.

tingent Fees. (c) Procurement officials who serve (a) Reports shall be made promptly multiple contracting offices (such as to the contracting officer. procurement lawyers) shall submit cop- (b)(1)-3) (Reserved) ies of their certificates to OAGM with (4) Suspected fraudulent or criminal the originals being transmitted to matters to be reported to the Departtheir servicing personnel office. OAGM ment of Justice shall be prepared in shall maintain a list of such procure- letter format and forwarded through ment officials and inform cognizant acquisition channels to the head of the contracting officers upon telephonic contracting activity for signature. The

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304.201 Procedures.

Subpart 304.6-Contract Reporting 304.602 Federal Procurement Data System.

Subpart 304.8-Contract Files

304.801 General. 304.804 Closeout of contract files. 304.804-1 Closeout by the office administer

ing the contract. 304.870 Closing review.

303.502 Subcontractor kickbacks.

(b) Any known or suspected violations of the Anti-Kickback Act (41 U.S.C. 51-54) shall be reported to the contracting officer who shall investigate the matter, document the findings, and report the results to the chief of the contracting office. If the results substantiate the known or suspected violation, the chief of the contracting office shall notify the Office of General Counsel, Business and Administrative Law Division and report the matter, through acquisition channels, to the head of the contracting activity. The head of the contracting activity shall take appropriate action is consonance with the Act, and notify the Director, Office of Acquisition and Grants Management of the case and its disposition. (49 FR 13964, Apr. 9, 1984, as amended at 54 FR 24342, June 7, 1989)

Subpart 304.70-Acquisition Instrument

Identification Numbering System 304.7000 Scope of subpart. 304.7001 Numbering contracts. 304.7002 Numbering solicitation documents. 304.7003 Numbering purchase and delivery

orders. 304.7004 Numbering basic agreements. 304.7005 Numbering basic ordering agree

ments.

Subpart 303.6-Contracts With

Government Employees or
Organizations Owned or Con-

trolled by Them 303.602 Exceptions.

Approval of an exception to the policy stated in FAR 3.601 shall be made by the head of the OPDIV (Assistant Secretary for Management and Budget in OS cases) or the Regional Director.

Subpart 304.71-Review and Approval of

Proposed Contract Awards 304.7100 Scope of subpart. 304.7101 Contracts requiring review and ap

proval. 304.7102 Conduct of the review. 304.7103 Approvals.

AUTHORITY: 5 U.S.C. 301; 40 U.S.C. 486(c).

SOURCE: 49 FR 13965, Apr. 9, 1984, unless otherwise noted.

Subpart 304.1-Contract

Execution

Subpart 303.7-Voiding and

Rescinding Contracts 303.704 Policy.

For the purposes of implementing FAR Subpart 3.7, the authorities granted to the "agency head or designee"

304.101 Contracting officer's signa

ture. An original of each bilateral contract or modification shall be executed by the contractor and contracting officer. An original of each unilateral contract or modification shall be executed by the contracting officer. The contract

ing officer need only sign the original Subpart 304.8-Contract Files when carbon paper is used in sets of forms such as Standard Form 44 or Op- 304.801 General. tional Form 347 or 348. A legible carbon OPDIVs shall prescribe the contents impression of the contracting officer's of contract files and establish filing signature shall carry the same force procedures consistent with the nature and effect as a pen and ink signature of the contracting actions and in acfor unilateral contracts.

cordance with FAR 4.801, 4.802, and

4.803. Contract files should contain an 8 304.170 (Reserved)

index of the contents to facilitate re

view and should be separated into logSubpart 304.2-Contract ical categories (see FAR 4.803). Distribution

304.804 Closeout of contract files. 304.201 Procedures.

304.804-1 Closeout by the office adThe signed original of bilateral con- ministering the contract. tracts and modifications shall be (3) Files for all cost-reimbursement placed in the contract file, and dupli- type contracts should be closed within cate originals shall be furnished the 20 months of the month in which the contractor, the appropriate accounting contracting officer receives evidence of point, the project officer, and other in- physical completion (see FAR 4.804 4). dividuals or offices, as applicable. Pur- The contracting officer responsible for chase orders, delivery orders, and other contract closeout may negotiate settleunilateral contracts and modifications ment of indirect costs for a specific shall be distributed the same as bilat- contract, in advance of the determinaeral contracts except the original shall tion of final indirect cost rates in acbe furnished the contractor or seller. cordance with FAR 42.708. Copies of unilateral contracts and modifications

with

carbon

304.870 Closing review. impressioned signatures may be used (a) Contracting officers shall assure but must be stamped “DUPLICATE the applicable items in FAR 4.804–5, ORIGINAL” (see 304.101).

other than a field audit, have been ac

complished prior to closing any phys(49 FR 36110, Sept. 14, 1984)

ically completed contract. Cost-reim

bursement type contracts will be subSubpart 304.6-Contract Reporting ject to the additional requirements set

forth below before they may be closed. 304.602 Federal Procurement Data

(b) Contracting officers shall use the System.

instructions in th Octobe 5, 1982 The Department-wide Contract Infor- memorandum from the Deputy Assistmation System (DCIS) represents the ant Secretary for Procurement, AssistDepartment's implementation of the ance and Logistics to closeout cost-reFPDS. All departmental contracting

imbursement type contracts physically activities are required to participate in

completed prior to fiscal year 1977 and the DCIS and follow the procedures

cost-reimbursement type contracts stated in the Contract Information

completed subsequent to that date for System Manual and amendments to it.

which field audit information is availThe principal official responsible for

able. acquisition shall ensure that all re

(c) Contracting officers shall closeout

all other cost-reimbursement type conquired contract information is collected, submitted, and received into

tracts physically completed after Septhe DCIS on or before the 15th of each

tember 30, 1977 in accordance with the

following procedures: month for all appropriate contract and

(1) Field audits will be conducted for contract modification awards of the

contracts in excess of $500,000 awarded prior month.

to commercial organizations and non(49 FR 13965, Apr. 9, 1984. Redesignated at 51 profit organizations other than colFR 44293, Dec. 9, 1986)

leges and universities, hospitals and

State and local units of government for which an agency other than HHS has audit cognizance. Field audits will also be conducted each year on approximately 25 of the same type contractors for which HHS has audit cognizance. These contracts may be closed after receipt of the field audit report.

(2) Contracts of any dollar value with non-proprietary colleges and universities, hospitals and State and local units of government and contracts not in excess of $500,000 with other institutions/organizations shall be closed out on the basis of a desk audit. The desk audit should include (i) a confirmation from the project officer that labor, material, travel, and other types of direct costs are commensurate with contract requirements, (ii) a review of available audit reports to determine if any adjustments were made that may be ap plicable to the contract under review, and (iii) discussions with the cognizant government auditor when considered appropriate. These contracts shall be closed with the condition that they are subject to adjustment should an on-site audit be conducted at a later date and should unallowable costs be identified as a result of that audit. The release executed by the contractor shall contain the following:

The Contractor agrees, pursuant to the clause in this contract entitled Allowable Cost (for cost-reimbursement contracts) or Allowable Cost and Fixed Fee (for CPFF contracts), that the amount of any sustained audit exceptions resulting from any audit made after final payment will be refunded to the Government.

(3) The contracting officer may request a field audit of any contract when, in his/her judgment, the risk attendant with the contract warrants it. The contracting officer, however, shall exercise discretion in requesting such audits on creditable evidence such as unsatisfactory dealings with the contractor during the period of contract performance, prior audit reports containing serious findings against the contractor, the known experience of other government officials in dealing with the contractor when the contracting officer is personally knowledgeable about the circumstances, formal third party complaints or allegations which bear upon the contractor's integrity or

the propriety of costs charged to the Government, and other comparable allegations or advice of a derogatory nature about the contractor made by responsible individuals which in the contracting officer's judgment should be investigated. Except where a contracting officer suspects misrepresentation or fraud, audits should not be requested if their cost of performance is likely to exceed their potential cost recovery.

(4) When an audit is warranted prior to closing out a contract, the contracting officer should request the audit directly from the Department of Health and Human Services Office of the Inspector General, Office of Audits (HHSOA). The request should cite the reasons the contracting officer believes an audit is warranted. A copy of the request should be forwarded to the Director, Office of Acquisition and Grants Management (DOAGM). In the event the Office of the Inspector General cannot honor the request in a reasonable period of time, it will consult with DOAGM and the contracting officer. The final decision on the need and scope of an audit will be made on the basis of the value of the contract, the nature of the contracting officer's concerns, and the availability of HHSOA or other existing resources in the Department to perform a review to satisfy the contracting officer's concerns.

(5) Closeout procedures are to be followed in conjunction with the regular procedures now followed in administering contracts. These procedures are not meant or to be interpreted as imposing any requirement or responsibility on contracting officers or necessitating any reviews on the part of the contracting officials not currently required by the FAR. With some rare exceptions, Standard Form 1034, Public Voucher for Purchases and Services Other than Personal, will contain sufficient information to allow a contracting officer to satisfy requirements for desk audits. Accordingly, these closeout procedures shall not cause contracting officers to engage in extraordinary oversight or review and shall not be used by contracting officers as the basis for requiring contractors to submit extraordinary documentation

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