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(g) Effecting transition from development to production and to subsequent competitive procurement of end items or of major components.

§ 4.702 Limitations on use.

Leader company procurement is to be used only when all of the following circumstances are present:

(a) The leader company possesses the necessary production know-how and is able to furnish the requisite assistance to the follower;

(b) No source of supply (other than a leader company) would be able to meet the Government's requirements without the assistance of a leader company;

contracts are set forth in Subpart J, Part 7 of this chapter.

§ 4.801 Definition of stevedoring.

Stevedoring is the loading of cargo from an agreed point of rest on a pier or lighter and its storage aboard a vessel, or the breaking out and discharging of cargo from any space in the vessel to an agreed point of rest dockside or in a lighter.

§ 4.802 Method of procurement.

Procurement of stevedoring services shall be made by formal advertising pursuant to 10 U.S.C. 2304 (a) whenever such method is feasible and practicable under existing conditions and circumstances even though such conditions and circumstances would otherwise satisfy the requirements of Subpart B, Part 3 of this chapter. the

(c) The assistance required of the leader company is limited to that which is essential to enable the follower company to produce the items; and

(d) The Government reserves right to approve contracts between the leader and follower companies.

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(a) One procedure is to award a prime contract to an established source (leader company) in which the source is obligated to subcontract a designated portion of the total number of end items required to a specified subcontractor (follower company) and to assist the follower company in that production.

(b) A second procedure is to award a prime contract to the leader company for the requisite assistance to the follower company, and another prime contract to the follower company for production of the items.

(c) A third procedure is to award a prime contract to the follower company for the items, under which the follower company is obligated to subcontract with a designated leader company for the requisite assistance.

Subpart H-Stevedoring Contracts SOURCE: The provisions of this Subpart H appear at 30 F.R. 1734, Feb. 9, 1965. $4.800

Scope of subpart.

Procurement procedures peculiar to stevedoring are set forth in this subpart. This subpart, however, does not contain or cross reference all provisions of this subchapter applying to service contracts which shall be adhered to where applicable. Contract clauses for stevedoring

§ 4.803 Type of contract.

Normally, stevedoring services will be contracted for by means of an indefinite quantity type contract. Contracts for single job stevedoring services may be made when no indefinite quantity contract is available to fulfill the requirements.

§ 4.804 Technical provisions.
§ 4.804-1

Conditions for use.

Since conditions vary at different ports and sometimes within the same port, standard technical provisions covering all phases of stevedoring operation are impractical. If car loading and unloading or other dock and terminal work will be performed under a stevedoring contract, technical provisions appropriate for such dock and terminal work should be added to the contract as separate items of work.

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which apply to the bulk of the cargo worked under normal conditions. Schedules of man-hour rates which apply to services not covered by commodity rates or to work performed under hardship conditions also shall be included.

§ 4.805-2 Analysis of tonnage or commodity rates.

The price quoted for handling a ton (weight or measurement) of a specified commodity is a commodity rate. This rate is computed by dividing the hourly stevedoring gang cost by the estimated number of tons of the specified commodity which can be handled in one hour. The gang cost consists of the following:

(a) The total hourly wages paid to the men in the gang in accordance with the collective bargaining agreement between the maritime industry and the unions at a specific port;

(b) Payments for workmen's compensation, social security taxes, unemployment insurance, taxes, and liability and property damage insurance; and

(c) General and administrative expenses and profit.

The direct costs shall be verified by the contracting officer. Since the negotiated stevedoring contract is designed to minimize the contractor's risk, the contractor's gang cost should contain no allowance for contingencies and the profit rate should be less than is granted in the usual fixed-price contract. The estimated number of tons of the specified commodity which can be handled in one hour is based on the contractor's experience and should be compared with the records of experience at the requiring activity. The evaluation of bids and proposals shall include an extension of the quoted commodity rates against the payable tonnage estimated to be handled for each commodity. § 4.805-3

Analysis of man-hour and equipment rental rates. Man-hour rates shall be established for every category of labor expected to be necessary to perform services required under the contract. The development of man-hour rates follows a pattern similar to the method used in arriving at a gang cost. Specifically it is composed of the basic wage rate of the man, workmen's compensation, social security taxes, in

surance, general and administrative expenses, and profit. The evaluation of bids and proposals shall include an extension of the quoted man-hour rates against the estimated man-hour requirements for each artisan classification. Rates for equipment rental shall be extended against estimated equipment hours.

§ 4.806 Award of contract.

The award shall be made to the responsible contractor who offers the lowest overall acceptable bid or proposal after evaluating the total estimated cost of tonnage to be moved at commodity rates and estimated cost at man-hour rates.

Subpart I-Procurement of Mortuary Services

SOURCE: The provisions of this Subpart I appear at 30 F.R. 14892, Dec. 2, 1965. § 4.900 Scope of subpart.

Procurement procedures peculiar to contracts for mortuary services (the care of remains) of military personnel within the United States are set forth in this Subpart. These procedures may be used as guidance in areas outside the United States in procuring such services for both deceased military and civilian personnel. Uniform contract clauses for care of remains contracts are set forth or referenced in Subpart L, Part 7 of this chapter.

§ 4.901

Method of procurement.

§ 4.901-1 Procurement by requirements type contract.

By agreement among the military activities involved, one military activity in each geographical area shall contract for the estimated requirements for the care of remains for all activities in the area. Procurement shall be by use of a requirements type contract (see § 3.4092 of this chapter) when the estimated annual requirements for the individual activity concerned, or for the activities using one contract, are ten or more. Except where negotiation is authorized under Subpart B, Part 3 of this chapter, such contracts shall be formally advertised. The contracts shall be for the fiscal year or a portion thereof ending on 30 June, except for noncontinuous i requirements for shorter periods.

§4.901-2 Procurement by purchase order.

Where no contract exists, such services shall be obtained by use of DD Form 1155 (Order for Supplies and Services) and DD Form 1155s (Additional General Provisions, Modification, and Acceptance) (see § 3.608 of this chapter), inserting in the Schedule the clauses prescribed in § 3.608-2(b) (1) (xii). §4.901-3 Solicitation planning.

Bids or offers for annual requirements for the next fiscal year shall be solicited in January.

§4.901-4 Area of performance.

Each contract for care of remains (except port of entry requirements contracts) shall clearly define the geographical area covered by the contract. The area shall be determined by the activity entering into the contract in accordance with the following general guidelines. It shall be an area using political boundaries, streets, or other features as demarcation lines. Generally, this should be a size roughly equivalent to the contiguous metropolitan or municipal area enlarged to include the activities served. In the event the area of performance best suited to the needs of a particular contract is not large enough to include a carrier terminal commonly used by people within such area, the contract area of performance shall specifically state that it includes such terminal as a pickup or delivery point.

4.901-5 Distribution of contracts.

In addition to normal contract distribution, three copies of each contract

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shall be furnished to each activity authorized to use it, and two copies to each of the following:

(a) Office of the Chief of Support Services, Department of the Army, Attention: SPTS-MD, Washington, D.C., 20315.

(b) Bureau of Medicine and Surgery (454), Department of the Navy, Washington, D.C., 20390.

(c) Headquarters, AFLC (MCPPL), Wright-Patterson AFB, Ohio, 45433.

§ 4.902 Solicitation provision.

Invitations for bids for mortuary services contracts shall contain the provision set forth below. This provision shall be appropriately modified for use in requests for proposals or quotations.

AWARD TO SINGLE BIDDER (OCTOBER 1965)

Subject to the provisions contained herein, award shall be made to a single bidder. Bids must include unit prices for each item listed in order that bids may be properly evaluated. Failure to do this shall be cause for rejection of the entire bid. Bids shall be evaluated on the basis of the estimated quantities shown and award shall be made to that responsible bidder whose total aggregate price is low.

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1 For a Type I casket, standard size, shipping case, supplies and services in accordance with specifications.

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283

5 Each

2

Each

200

Loaded

Loaded miles

mile.

§ 4.903-2 Schedule format for port of entry requirements contracts.

Set forth below is an example of a Schedule format suitable for use in solicitations for port of entry requirements. The estimated quantities are only illustrative.

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