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Failure of the bid samples to conform to all of the required characteristics listed in the solicitation shall constitute a deficiency in the proposal and shall be resolved as provided for in FAR 15.610.

(2) In addition to listing subjective characteristics that cannot be adequately described in the specification, objective characteristics may be listed in the solicitation and evaluated when it has been determined, on the basis of past experience or other valid considerations, that examination of such characteristics is essential to the acquisition of an acceptable product.

(c) Samples received after the time set for receipt of offers may be considered only if they meet the requirements of FAR 52.215-10.


Subpart 516.2—Fixed-Price Contracts

Sec. 516.203 Fixed-price contracts with economic

price adjustment. 516.2034 Contract clauses. 516.203–70 EPA in FSS multiple award


516.203–4 Contract clauses.

(a) General. When the contracting officer decides to use a clause providing for adjustments based on cost indexes of labor or material under FAR 16.203 4, a clause must be prepared with the assistance of counsel and approved by the contracting director.

(b) FSS Multiple Award Schedules. In Federal Supply Service (FSS) multiple award schedule (MAS) procurements, the contracting director will determine whether to use an Economic Price Adjustment (EPA) clause under FAR 16.203–2.

(c) Stock or Special Order Program Contracts. (1) The contracting officer shall insert the clause at 552.216-72, Economic Price Adjustment-Stock and Special Order Program Contracts, or a clause prepared as authorized in subparagraph (c)(2) of this section, in solicitations and contracts when the contracting officer has made the determination required by FAR 16.203–2 and the contract is a multiyear contract. If the contract includes one or more options to extend the term of the contract, the contracting officer shall use the clause with its Alternate I. If a multiyear contract with additional option periods is contemplated, the contracting officer may use a clause substantially the same as the clause at 552.216-72 with its Alternate I suitably modified. If the contract requires a minimum adjustment before the price adjustment mechanism is effectuated, the contracting officer shall use the basic clause or the Alternate I clause along with Alternate II.

(2) If the contracting officer decides that an economic price adjustment clause is needed but finds the Producer Price Index is not an appropriate indicator for price adjustment, the contracting officer may modify the clause to use an alternate indicator for adjusting prices. Similarly, if the contracting officer finds other aspects of

Subpart 516.3-Cost-Reimbursement


516.301 General. 516.301-3 Limitations. 516.306 Cost-plus-fixed-fee contracts.

Subpart 516.4-Incentive Contracts

516.403 Fixed-price incentive contracts. 516.405 Contract clauses.

Subpart 516.5—Indefinite Delivery


516.505 Contract clauses.

Subpart 516.6-Time-and-Materials, Labor

Hour, and Letter Contracts

516.603 Letter contracts.
516.603-3 Limitations.
516.603–70 Architect-Engineer services.

AUTHORITY: 40 U.S.C. 486(c).

SOURCE: 54 FR 26526, June 23, 1989, unless otherwise noted.

Subpart 516.4-Incentive


the clause at 552.216–72 are not appropriate, the contracting officer may develop a clause in accordance with 516.203 4(a) for use instead of the clause at 552.216-72.


(55 FR 39278, Sept. 26, 1990)

516.403 Fixed-price incentive

tracts. The required D&F must be prepared in the format prescribed by 501.704 70(a)(1) and be signed by the appropriate official (see 501.707).


516.405 Contract clauses.

Award fee clauses developed by contracting officers, under FAR 16.405(e), shall be prepared with the advice and assistance of counsel and be approved by the contracting director.

Subpart 516.5-Indefinite-Delivery


516.203–70 EPA in FSS multiple award

schedules. (a) If the FSS multiple award schedule solicitation contains

EPA clause, the contracting officer should establish negotiation objectives reflecting the terms of the clause and seek appropriate discounts. If the clause is not included in the initial solicitation but is negotiated in, it must be added to the contracts at the time of award. Its inclusion is contingent on the approval of the contracting director, the need for an EPA clause, and the concessions granted by the offeror for its inclusion in the contract.

(b) The contract price ceiling may be raised during the contract period only under the following conditions:

(1) Analysis of the current market conditions, conducted in conjunction with the Office of Commodity Management (FC), reveals that the original contract price ceiling is inadequate.

(2) The causes which require an increase in the price ceiling are not unique to an individual contractor, but affect all suppliers for similar products.

(3) The HCA approves the determination to raise the ceiling.

516.506 Contract clauses.

The contracting officer shall insert the clause at 552.216–73, Placement of Orders, in solicitations and contracts for stock or special order program items when the contract authorizes agencies other than GSA to issue delivery orders. If GSA alone will issue delivery orders use, Alternate I. If a Federal Supply Schedule contract (single or multiple award) is contemplated, use Alternate II.

(56 FR 376, Jan. 4, 1991)

Subpart 516.6-Time-and-Mate

rial, Labor-Hour, and Letter Contracts

516.603 Letter contracts.

Subpart 516.3-CostReimbursement Contracts

516.301 General.

516.301-3 Limitations.

The required determination and findings (D&F) must be prepared in the format prescribed by 501.704–70(a)(1) and be signed by the appropriate official (see 501.707).

516.603-3 Limitations.

(a) When acquiring architect-engineer (A-E) services the proposed A-E must provide a price proposal for the non-design effort to be performed under the contract before the letter contract is awarded. The letter contract must:

(1) Not authorize the A-E to begin the design effort. The scope of the letter contract may include the design effort but the letter contract may only authorize the A-E to perform those services that are independent of the design effort (e.g., feasibility studies, existing facility surveys or site investigation, etc.) before the letter contract is definitized.

(55 FR 39279, Sept. 26, 1990)

516.306 Cost-plus-fixed-fee contracts.

The required D&F must be signed by the appropriate official (see 501.707).

(2) Include a definitization schedule Subpart 517.2-Options that outlines dates for submission of the design fee proposal, start of nego- 517.200 Scope of subpart. tiations, and definitization. The sched

This subpart prescribes policies and ule must provide for definitization of procedures for the use and exercise of the contract within 90 days after the options. When a requirement in this date of the letter contract instead of subpart is inconsistent with FAR 17.2, 180 days as outlined in FAR 16.603–2(c). this subpart takes precedence. When a

(3) Limit the Government's liability requirement of this subpart is inconto the amount necessary for the non- sistent with GSAR 536.6, the latter subdesign effort to be performed under the part takes precedence. A class devicontract by inserting that amount in

ation from the FAR has been approved the clause at FAR 52.216-24, Limitation to implement GSA's Quality Contracof Government Liability.

tor Program. This subpart applies to (b) If the contracting officer must

contracts including those for (a) servissue a unilateral price decision for an

ices involving the construction, alterA-E contract under FAR 16.603–2(c), the

ation, or repair (including dredging, exmaximum contract amount must not

cavating, and painting) of buildings, exceed a reasonable price for the ex

bridges, roads, or other kinds of real cludable items plus the 6 percent statu

property; (b) architect-engineer serv

ices; (c) automatic data processing tory fee limitation for the project.

(ADP) equipment and systems; and (d)

telecommunications equipment and PART 517-SPECIAL CONTRACTING

services. METHODS

(57 FR 59939, Dec. 17, 1992) Subpart 517.1-Multlyear Contracting 517.202 Use of options. Sec.

(a) The inclusion of options in con517.105 Solicitation provisions and clauses. tracts under appropriate circumstances

is encouraged. The use of options may Subpart 517.2-Options

reduce procurement lead time and as

sociated costs, ensure continuity of 517.200 Scope of subpart.

contract support, improve overall con517.202 Use of options.

tractor performance, and facilitate 517.203 Solicitations.

longer term contractual relationships 517.204 Contracts.

with those contractors that continu517.207 Exercise of options.

ously meet or exceed quality perform517.208 Solicitation provisions and contract clauses.

ance expectations outlined in the con

tract. AUTHORITY: 40 U.S.C. 486(C).

(b) Inclusion of an option is normally SOURCE: 54 FR 26527, June 23, 1989, unless

in the Government's interest where otherwise noted.

(1) Additional supplies or services

may be required during the contract Subpart 517.1-Multiyear

term; Contracting

(2) Additional supplies or services

may be required beyond the initial con517.105 Solicitation provisions and

tract term and either multiyear concontract clauses.

tracting authority is not available or

its use is inappropriate; Inclusion of FAR clauses 52.217-1,

(3) There is a need for continuity of Limitations of Price and Contractor supply or services support; Obligations, and 52.217-2, Cancellation

(4) Funds are not available for the enof Items, is not required for multiyear tirety of the Government's needs, but contracts authorized by the Federal are likely to become available during Property and Administrative Services the contract term; or Act for maintenance and repair of fixed (5) The contract is with an emerging equipment in Federally-owned build- small business with minimal performings and utility services.

ance history in the contract supply or

service and the basic quantity is intended to be a learning or testing quantity.

(c) Inclusion of an option may not be appropriate where the circumstances described in FAR 17.202(b)(2) and 17.202(c) (1) and (3) exist or where the market prices for the supplies or services are likely to change substantially and an

economic price adjustment clause will not adequately protect the Government's interests. (57 FR 59939, Dec. 17, 1992)

opsis of the option before it is exercised is required unless exempt under FAR 5.202.

(b) In addition to the items listed in FAR 17.207(d), the contracting officer may consider whether the contractor's performance under the contract has met or exceeded the Government's expectation for quality performance, or whether another circumstance exists that would warrant an extended contractual relationship when deciding whether to exercise an option. The contracting officer must always determine the option price(s) is fair and reasonable before exercising an option. (57 FR 59939, Dec. 17, 1992)

517.203 Solicitations.

Solicitations containing options to extend (see FAR 17.208 (f) and (g)) should normally inform offerors of the potential for entering into a long term contractual relationship with the GSA subject to a continuing need and the successful offeror's ability to perform at levels which meet or exceed the agency's quality performance expectations.

(57 FR 59939, Dec. 17, 1992)

517.204 Contracts.

The head of the contracting activity must approve exceeding the 5-year limitations specified in FAR 17.204(e) for individual contracts. The Associate Administrator for Acquisition Policy must approve requests to exceed the limitations for classes of contracts. The contract file for individual approvals and the requests for approval of classes of contracts must support the need to exceed the 5-year limitation. This section does not apply to contracts for automatic data processing (ADP) equipment and systems or to contracts for telecommunications equipment and services. (57 FR 59939, Dec. 17, 1992)

517.208 Solicitation provisions and

contract clauses. (a) In addition to other applicable provisions or clauses related to options, the contracting officer shall insert a provision substantially the same as the provision at 552.217–71, Notice Regarding Option(s), in solicitations or supplies or services when necessary to inform offerors of the importance GSA will place on past performance when considering whether to exercise options.

(b) The contracting officer shall insert a provision substantially the same as the provision at 552.217–70, Evaluation of Options, in solicitations for procurements under the Federal Supply Service (FSS) stock or special order program when (1) the solicitation contains an option to extend the term of the contract and (2) a firm-fixed price contract with economic price adjustment based on the Producer Price Index or alternative indicator of market price changes is contemplated.

(57 FR 59939, Dec. 17, 1992)

517.207 Exercise of options.

(a) If the option was not evaluated as part of the original competition, a syn


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519.500 Scope of subpart. 519.502 Setting aside acquisitions. 519.502–1 Requirements for setting aside ac

quisitions. 519.502-3 Partial set-asides. 519.502–70 Review of non-set-aside deter

minations. 519.503 Setting aside a class of acquisitions. 519.508 Solicitation provisions and contract


519.001 Definitions.

Agency small business technical adviSOTS (SBTAs) as used in this part, means the directors of the Business Service Centers (or designees) in the regions and the individuals in FPRS, FSS, IRMS and PBS who have been designated to serve as SBTAs in the Central Office. In addition to the duties outlined at FAR 19.201(c), the agency small business technical advisors perform the functions of the small and disadvantaged business utilization specialist/representative described in FAR 19.506(a) and (b) and 19.705 4(d)(5).

Subpart 519.6-Certificates of Com

petency and Determinations of Eligibility

519.602 Procedures. 519.602-3 Resolving differences between the

agency and Small Business Administration.

Subpart 519.2-Policies

Subpart 519.7–Subcontracting With Small

Business and Small Disadvantaged
Business Concerns

519.701 Definitions. 519.702 Statutory requirements. 519.704 Subcontracting plan requirements. 519.705 Responsibilities of the contracting

officer under the subcontracting assist

ance program. 519.705–2 Determining the need for a sub

contracting plan. 519.705 4 Reviewing the subcontracting

plan. 519.705–5 Awards involving subcontracting


519.201 General policy.

The Director of Small and Disadvantaged Business Utilization (AU) may make recommendations to the contracting officer as to whether a particular acquisition should be awarded under FAR 19.5 as a set-aside (including those involving Labor Surplus Areas) or under FAR 19.8 as a section 8(a) award directly or through the SBTA. (56 FR 26769, June 11, 1991; 56 FR 30618, July 3, 1991)

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