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$ 1-1.009-2 Procedure.

§ 1-1.203 Federal agency. In the interest of establishing and

"Federal agency" means any executive maintaining uniformity to the greatest agency or any establishment in the legisextent feasible, deviations from the Fed- lative or judicial branch of the Governeral Procurement Regulations shall be

ment (except the Senate, the House of kept to a minimum and controlled as Representatives, and the Architect of follows:

the Capitol and any activities under his (a) The head of each agency exercis

direction). ing procurement authority shall prescribe a formal procedure for the control of deviations within the agency. A copy

§ 1-1.204 Head of the agency. of the procedure shall be furnished to "Head of the agency" means the Secthe General Services Administration. retary, Attorney General, Postmaster

General, Administrator, (b) in individual cases, deviations

Governor, may be authorized by the head of the

Chairman, or other chief official of an

executive agency, unless otherwise inagency or the officers designated by him for this purpose, in accordance with

dicated, including any assistant chief

official of an executive agency and, for procedures established by the agency. In each instance the file shall disclose

the military departments, the Under the nature of the deviation and the rea

Secretary and any Assistant Secretary of sons for such special action.

the Departments of the Army, Navy, and

Air Force. (c) Deviations in classes of cases shall

128 F.R. 3088, Mar. 29, 1963) be considered on an expedited basis jointly by the agency desiring the deviation and the General Services Administration unless, in the considered judg- § 1-1.205 Procuring activity. ment of the agency and with due regard "Procuring activity" means the orto the objective of uniformity, circum

ganizational element of an executive stances preclude suc joint effort. In

agency which has responsibility to consuch case, GSA will be notified of the

tract for the procurement of personal deviation.

property and nonpersonal services (in(d) Except as otherwise authorized, cluding construction). when any deviation in a contract form

§ 1-1.206 Head of the procuring acprovision is authorized, physical change

tivity. may not be made in the printed form but shall be made by appropriate provision

"Head of the procuring activity" in the schedule, specifications, or con

means that official, intermediate between tinuation sheet, as provided in agency

the head of the agency and the conprocedures.

tracting officer, who has the responsibil

ity for supervision and direction of the Subpart 1-1.1-[Reserved) procuring activity.

§ 1-1.207 Contracting officer.

“Contracting officer" means an official designated to enter into or administer contracts and make related determinations and findings.

Subpart 1-1.2-Definition of Terms § 1-1.201 Definitions.

For the purposes of this chapter, and unless otherwise indicated, the following terms have the meanings set forth in this subpart. § 1-1.202 Executive agency.

"Executive agency" means any executive department (including the Departments of the Army, the Navy, and the Air Force) or any independent establishment in the executive branch of the Government, including any wholly-owned Government corporation.

f 1–1.208 Contract.

Contract" means establishment of a binding legal relation basically obligating the seller to furnish personal property or nonpersonal services (including construction) and the buyer to pay therefor. It includes all types of commitments which obligate the Govern

ment to an expenditure of funds and which, except as otherwise authorized, are in writing. In addition to a twosignature document, it includes all transactions resulting from acceptance of offers by awards or notices of awards; agreements and job orders or task letters issued thereunder; letter contracts; letters of intent; and orders, such as purchase orders, under which the contract becomes effective by written acceptance or performance. It also includes contract modifications. § 1-1.209 Procurement.

"Procurement” means the acquisition (and directly related matters), from non-Federal sources, of personal property and nonpersonal services (including construction) by such means as purchasing, renting, leasing, contracting, or bartering, but not by seizure, condemnation, donation, or requisition. § 1-1.210 [Reserved)

§ 1-1.211

Manufacturer. "Manufacturer" means a person (or firm):

lishment in which the materials, articles, or equipment of the general character described by the specifications and required under the contract are bought, kept in stock, and sold to the public in the usual course of business; or

(2) In the case of articles of particular kinds (lumber and timber products, coal, machine tools, raw cotton, petroleum, green coffee, tea, agricultural liming materials, or hay, grain, feed, or straw), who satisfies the requirements of the Regulations of the Secretary of Labor (41 CFR 201.101 (b) and 201.603(f)) under the Walsh-Healey Public Contracts Act; and

(3) Who, before being awarded a contract, satisfies the contracting officer that it is engaged in an established regular business meeting all the criteria of (1) or (2) of this paragraph (a).

(b) It is not enough in the case of a regular dealer to show only that arrangements have been made to set up such a business. Before an award can be made, the dealer must show that it is an established going business regularly dealing in the particular articles, or articles of the general character, sought by the Government. § 1-1.213 Construction contractor.

Construction contractor" means a person (or firm) who, before being awarded a contract, satisfies the contracting officer that he qualifies as one:

(a) Who owns, operates, or maintains a place of business, regularly engaged in the construction, alteration, or repair of buildings, structures, communication facilities, or other engineering projects, including the furnishing and installing of necessary equipment; or

(b) Who, if newly entering into a construction activity, has made all necessary prior arrangements for personnel, construction equipment, and required licenses to perform construction work. § 1-1.214 Service contractor.

“Service contractor” means a person (or firm) who, before being awarded a contract, satisfies the contracting officer that he qualifies as one:

(a) Who owns, operates, or maintains a factory or establishment that produces on the premises the materials, articles, or equipment required under the contract and of the general character described by the specifications; or

(b) Who, if newly entering into a manufacturing activity, has made all necessary prior arrangements for manufacturing space, equipment, and personnel, to perform the manufacturing operations required for contract performance; and

(c) Who, before being awarded a contract, satisfies the contracting officer that it qualifies under (a) or (b) of this section.

§ 1-1.212 Regular dealer.

(a) “Regular dealer" means a person (or firm):

(1) Who owns, operates, or maintains a store, warehouse, or other estab

(a) Who owns, operates, or maintains § 1-1.220 Procurement item. a place of business, regularly engaged in

"Procurement item" means any perperforming nonpersonal services, such

sonal property or nonpersonal service, as the repair, maintenance, or rebuilding of personal property; the packing,

including construction, alteration, repair,

or installation, which is the object of crating, or moving of material; the operation of equipment or facilities; the

procurement. rental of equipment or facilities; or the Subpart 1-1.3—General Policies performance of administrative, professional, or technical functions; or

§ 1-1.300 Scope of subpart. (b) Who, if newly entering into a serv

This subpart sets forth general policies ice activity, has made all necessary prior

with respect to (a) methods of procurearrangements for personnel, service

ment; (b) procurement sources; (c) equipment, and required licenses to per

types of contracts; (d) use of specificaform services.

tions, standards, and purchase descrip

tions; (e) transportation costs; and (f) § 1-1.215 Government instrumentality. priorities, allocations, and allotments.

"Government instrumentality" means § 1-1.301 Methods of procurement. any of the following: (a) An instrumentality of the U.S.

It shall be the objective to use that Government.

method of procurement which will be

most advantageous to the Government(b) An agency or instrumentality of a

price, quality, and other factors conState or local government thereof, Ha- sidered. Procurement shall be made on waii, possession, or Puerto Rico.

a competitive basis, whether by formal (c) An agency or instrumentality of a advertising or by negotiation, to the foreign government.

maximum practicable extent, in accord§ 1-1.216 United States.

ance with the policies and procedures

set forth in this chapter. Procurement “United States”, when used in a geo- shall be effected by advertising for bids graphic sense, means the States and the and thereafter awarding a contract to District of Columbia.

the lowest responsible bidder, except that § 1-1.217 Possessions.

when authorized procurement may be

effected by negotiation in accordance "Possessions" includes the Virgin Is

with Part 1-3 of this chapter. lands, the Canal Zone, Guam, American Samoa, Wake Island, Midway Island,

8 1-1.302 Procurement sources. and the guano islands, but does not in- 8 1-1.302-) General. clude Hawaii or the Commonwealth of Puerto Rico.

(a) Before taking procurement ac

tion, in accordance with this chapter, § 1-1.218 Negotiation.

agencies shall have complied with appli"Negotiation" means the procedure for

cable laws and regulations relative to making contracts without formal

obtaining supplies or services from Govadvertising.

ernment sources and from contracts of

other Government agencies. These in§ 1-1.219 Contract modification.

clude excess and surplus stocks in the "Contract modification” means any

hands of any Government agency, Fedwritten alteration in the specifications, eral Supply Schedules, General Services delivery point, rate of delivery, contract Administration Stores Stock, Federal period, price, quantity, or other contract Supply Service Consolidated Purchase provision of an existing contract, Programs, Federal Prison Industries, whether accomplished by unilateral ac- Inc., and National Industries for the tion in accordance with a contract pro

Blind. vision or by mutual action of the parties (b) Irrespective of whether the proto the contract. It includes (a) bilateral curement of supplies or services from actions, such as supplemental agree- sources outside the Government is to be ments and amendments, and (b) uni- effected by formal advertising or by lateral actions, such as change orders, negotiation, competitive proposals notices of termination, and notices of (“bids" in the case of procurement by the exercise of an option.

formal advertising, “proposals" in the

case of procurement by negotiation) shall be solicited from all such qualified sources as are deemed necessary by the contracting officer to assure such full and free competition as is consistent with the procurement of types of supplies and services necessary to meet the requirements of the agency concerned. § 1-1.302–2 Production and research

and development pools. (a) Description. A production or research and development pool is a group of concerns (1) which have associated together for the purpose of obtaining and performing jointly, or in conjunction with each other, contracts for supplies or services, or for research and development for defense use or to effectuate the purposes of the Small Business Act, (2) which have entered into a production pool agreement governing their organization, relationship, and procedure, and (3) the agreement has been approved either in accordance with section 708 of the Defense Production Act of 1950, as amended (Defense Production Pool), or in accordance with sections 9(d) or 11 of the Small Business Act (Small Business Pool). Production pool participants are exempt from the "manufacturer or regular dealer" requirement of the Walsh-Healey Public Contracts Act and of sections 1-1.211 and 1-1.212.

(b) General rule. Except as provided in this section 1-1.302–2, a production pool shall be treated for purposes of Government procurement on exactly the same basis as any other prospective or actual contractor.

(c) Ascertainment of status. The contracting officer is responsible for ascertaining whether a group of firms seeking to do business with the Government is a production pool. In ascertaining the status of a group representing that it is a pool, contracting officers may rely on a copy of the Small Business Administration (SBA) or the Office of Civil and Defense Mobilization (OCDM) notification of approval of the pool. Each executive agency should expeditiously disseminate to appropriate contracting officers information received from SBA or OCDM concerning the approval of production pools. (d) Contracting with pools.

(1) A bid or proposal of a production pool is not eligible for award to the pool unless submitted either by the pool in its own name or by an individual mem

ber expressly disclosing that it is on behalf of the pool. Except as to contracts to be awarded to incorporated pools, the contracting officer shall prior to award to a pool require to be deposited with him a certified copy of a power of attorney from each member of the pool who is to participate in the performance of the contract authorizing an agent to execute the bid, proposal, or contract on behalf of such member. A copy of each such power of attorney shall be appended to each executed copy of the contract retained by the Government.

(2) Membership in a pool shall not of itself preclude individual members from submitting bids or proposals as individuals on appropriate procurements. Bids or proposals submitted by an individual member of a pool shall not be considered when the individual member has participated in the bid or proposal submitted by the pool.

(e) Responsibility of pool member. Where a member of a production pool has submitted a bid or proposal in its own name the pool agreement shall be considered in determining the pool member's responsibility. 8 1-1.303 Approval signatures. §

Approval signatures on contracts or purchase authorizations should be minimized to the greatest practical extent and, in the event that multiple approval signatures are required, they should, where possible, be obtained concurrently.

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eral Specifications shall be used to the extent that they are applicable.

(d) The purchase involves spare parts, components, or materials required for repair or maintenance of existing equipment, or for similar items required for maintenance or operation of existing facilities or installations: Provided, That existing Federal Specifications shall be used to the extent that they are applicable.

(e) The items are purchased in foreign markets for use of overseas activities of agencies.

(f) An Interim Federal Specification is used by an agency in lieu of the Federal Specification.

(g) Where otherwise authorized by law.

$ 1-Ispecifications:

(a) Federal. A specification covering those materials, products, or services, used by or for potential use of two or more Federal agencies (at least one of which is a civil agency), or new items of potential general application, promulgated by the General Services Administration and mandatory for use by all executive agencies.

(b) Interim Federal. A potential Federal•specification issued in interim form, for optional use by agencies. Interim amendments to Federal Specifications are included in this definition.

(c) Military (MIL). A specification issued by the Department of Defense, used solely or predominantly by and mandatory on military activities. (This definition includes both fully coordinated and limited coordination military specifications.)

(d) Departmental. A specification developed and prepared by, and of interest primarily to a particular Federal civil agency, but which may be of use in procurement by other Federal agencies. 8 1-1.305–1 Mandatory use of Federal

Specifications. Federal Specifications shall be used by all executive agencies, including the Department of Defense, in the procurement of supplies and services covered by such specifications; except as provided in sections 1-1.305–2 and 1-1.305-3. 81-1.305–2 Exceptions to mandatory

use of Federal Specifications. Federal Specifications need not be used under the following circumstances:

(a) The purchase is required under a public exigency and a delay would be involved in using the applicable specification to obtain agency requirements.

(b) The total amount of the purchase does not exceed $2,500. (Multiple small purchases of the same item shall not be made for the purpose of avoiding the intent of this exception.)

(c) The purchase involves items of construction for new processes, new installations of equipment, or items for experiment, test, or research and development, until such time as specifications covering them are issued or it is determined by the General Services Administration, and the procuring agencies notified, that further deviations from the Federal Specifications will not be permitted: Provided, That, in connection with such deviations, existing Fed

§ 1-1.305-3 Deviations from Federal

. When the essential needs of an agency are not adequately covered by an existing Federal Specification, and the proposed purchase does not come within the exceptions described in section 1-1.305–2, the agency may authorize deviations from the Federal Specification; provided, that:

(a) Requirements of existing Federal Specifications shall be used to the maximum extent practicable.

(b) Each agency taking such deviations shall establish procedures whereby a designated official having substantial procurement responsibility shall be responsible for assuring that:

(1) Federal Specifications are used, and provisions for exceptions and deviations are complied with;

(2) Justifications for exceptions and deviations are subject to competent review before authorization, and that such justifications can be fully substantiated if post audit is required;

(3) Major or repeated deviations are not taken except as prescribed in this section 1-1.305–3; and

(4) Notification or recommendation for change in the specification is sent promptly to the General Services Administration by the designated official or subdivision at the agency level, through established agency channels, when

(i) Deviations taken are of a major nature such as to result in the

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