Except as provided in § 1.507-3, each Department shall inquire of and secure a written representation from prospective contractors as to whether they have employed or retained any company or person (other than a full-time employee working solely for the prospective contractor) to solicit or secure the contract, and shall secure a written agreement to furnish information relating thereto as required by the contracting officer. Where an invitation for bids is issued, this inquiry shall be made (and written representation and agreement secured) by requiring the bidder (or contractor) to check the appropriate box in the following statement to be included in the invitation or bid form:

Bidder represents: (a) That he has,

has not, employed or retained any company or person (other than a full-time bona fide employee working solely for the bidder) to solicit or secure this contract, and (b) that he has, has not, paid or agreed to pay to any company or person (other than a full-time bona fide employee working solely for the bidder) any fee, commission, percentage or brokerage fee, contingent upon or resulting from the award of this contract, and agrees to furnish information relating to (a) and (b) above as requested by the Contracting Officer. (For interpretation of the representation, including the term "bona fide employee," see Code of Federal Regulations, Title 44, Part 150). (November 1958.) In negotiated procurements, the above representation shall be modified by substituting the word "offerer" for "bidder". [30 F.R. 5961, Apr. 29, 1965]

§ 1.506-2 Interpretation of the repre

sentation.

(a) For the purpose of the representation and agreement required from the prospective contractor, as described in § 1.506-1, the definition of "bona fide employee" is as specified in § 1.505-3.

(b) The fact that the prospective contractor retains a person who does not devote his full time solely to the prospective contractor does not necessarily

mean that the relationship involved is in violation of the covenant against contingent fees or that there is any stigma attached to the contractor-agent relationship. It does mean, however, that the prospective contractor must fill out the representation in the affirmative and, as required, furnish information with respect to such employment or retainer.

(c) If the representation would otherwise be answered in the affirmative the fact that the person employed or retained by the bidder or offerer or contractor is an attorney, or a public relations consultant, or has any other special or professional title, does not permit answering in the negative.

[30 F.R. 5961, Apr. 29, 1965]

Except as provided in § 1.507-3, Contractor's Statement of Contingent or Other Fees (Standard Form 119) shall be used without deviation whenever either part of the inquiry provided for by § 1.506-1 is answered in the affirmative. The form shall also be used without deviation in any other case where a Department desires to obtain such information. When further information is required, it may be obtained in any appropriate manner. Normally, submission of the form shall be required only of successful bidders and offerers, and contractors. [30 F.R. 5961, Apr. 29, 1965]

§ 1.507-2 Statement in lieu of form. Except as provided in § 1.507-3, every solicitation shall contain the following:

If the bidder or offeror, by checking the appropriate box provided therefor, has represented that he has employed or retained a company or person (other than a full-time bona fide employee working solely for the bidder or offeror) to solicit or secure this contract, or that he has paid or agreed to pay any fee, commission, percentage or brokerage fee to any company or person contingent upon or resulting from the award of this contract, he shall furnish, in duplicate, a complete Standard Form 119 (Contractor's Statement of Contingent or Other Fees). If bidder or offeror has previously furnished a completed Standard Form 119 to the office issuing this solicitation he may accompany his bid or offer with a signed statement, (1) indicating when such completed form was previously furnished, (ii) identifying by number the previous solicitation or contract, if any, in connection with which such form

The inquiry and agreement specified in § 1.506 need not be made and submission of Standard Form 119 need not be requested in connection with the following:

(a) Any advertised contract in which the aggregate amount involved does not exceed $25,000;

(b) Any negotiated contract in which the aggregate amount involved does not exceed $5,000;

(c) Any negotiated contract for perishable subsistence supplies in which the aggregate amount involved does not exceed $25,000;

(d) Any contract for services which are required to be performed by an individual contractor in person under Government supervision and paid for on a time basis;

(e) Any contract for public utility services furnished by a public utility company where the utility company's rates for the services furnished are subject to regulation by Federal, State, or other regulatory body and the public utility company is the sole source of supply;

(f) Contracts to be made in foreign countries; and

(g) Any other contracts, individually or by class, designated by the Secretary. (Reports of any such exceptions shall be filed promptly with the Administrator of General Services.)

[30 FR. 5961, Apr. 29, 1965]

§ 1.508 Enforcement.

[30 F.R. 5962, Apr. 29, 1965]

§ 1.508-1 General.

Each Department shall take the necessary steps to assure that the indicated proposed contractor has furnished a representation (negative or affirmative) and agreement described in § 1.506-1.

(a) If the indicated proposed contractor makes such representation in the negative, such representation may be accepted and award made or offer accepted.

(b) If the indicated proposed contractor make such representation in the affirmative, a completed Standard Form 119, in duplicate, shall be requested from him. In the case of formal advertising, the making of an award in accordance with established procedure of the De

partment concerned need not be delayed pending receipt of the form. In the case of negotiation, if the proposed contractor makes such representation in the affirmative, he shall be required to file a completed Standard Form 119, or the statement in lieu of the form, prior to acceptance of the offer or execution of the contract, unless the head of the procuring activity or his designee considers that the interest of the Government will be prejudiced by the suspension of negotiations pending receipt and consideration of an executed Standard Form 119.

(c) If the indicated proposed contractor fails to furnish the representation and agreement as set forth in § 1.506-1, such failure shall be considered a minor informality and, prior to award, he shall be afforded a further opportunity to furnish such representation and agreement. A refusal or failure to furnish the representation and agreement after such opportunity has been afforded shall require rejection of the bid or offeror.

[30 F.R. 5962, Apr. 29, 1965]

§ 1.508-2

Failure or refusal to furnish Standard Form 119.

If the successful bidder or offeror or the contractor, upon request, refuses or fails to furnish a completed Standard Form 119, or a statement in lieu thereof, as provided in § 1.507-2 the head of the procuring activity or his designee shall take one or more of the following actions, or other action, as may be appropriate:

(a) If an award has not been made or bid or offer has not been accepted, determine whether the bid or offer should be rejected;

(b) If the contract has been awarded or bid or offer accepted, determine what action shall be taken, such as making an independent investigation or considering the eligibility of the contractor as a future contractor.

[30 F.R. 5962, Apr. 29, 1965]

§ 1.508-3 Misrepresentations or violations of the covenant against contingent fees.

In case of misrepresentation concerning contingent fees, or violation or breach of the covenant against contingent fees, or some other relevant impropriety, the head of the procuring activity or his designee shall take one or more of the following actions, or other action, as may be appropriate:

(a) If an award has not been made or bid or offer has not been accepted, determine whether the bid or offer should be rejected;

(b) If an award has been made or bid or offer has been accepted, take action to enforce the covenant in accordance with its terms; i.e., as the best interest of the Government may appear, annul the contract without liability or recover the amount of the fee involved;

(c) Consider the bidder's or offeror's future eligibility as a contractor; or (d) Consider referring the case to the Department of Justice.

[30 F.R. 5962, Apr. 29, 1965]

§ 1.509

Preservation of records.

(a) Each Department shall preserve as a permanent record for enforcement or report purposes the original executed copy of any representation and completed Standard Form 119, or statement in lieu of form, together with a record of any other pertinent data, including data as to action taken. There shall be no regular retirement of any Standard Form 119 maintained in this record by any procuring activity. However, in any case where the receipt of a new Standard Form 119 makes previously received information obsolete, the obsolete information may be destroyed.

(b) The second copy of Standard Form 119, or statement in lieu of form, shall be filed with and shall remain a part of the contract file.

[30 F.R. 5962, Apr. 29, 1965]

Subpart F-Debarred, Ineligible, and Suspended Bidders

§ 1.600 Scope of subpart.

(a) This subpart prescribes policies and procedures relating to the debarment and suspension of bidders, offerors, and contractors, and ineligibility of bidders and offerors under section 1(a) of the Walsh-Healey Public Contracts Act (41 U.S.C. 35(a)).

(b) For the purpose of this subpart, the authorized representatives of the Secretaries are:

(1) In the Army-an Assistant Judge Advocate General;

(2) In the Navy-the Chief of Naval Material;

(3) In the Air Force-the Deputy Chief of Staff, Systems and Logistics;

(4) In the Defense Supply Agencythe Counsel; and

(5) In the Defense Communications Agency-the Counsel.

[30 F.R. 5962, Apr. 29, 1965]

§ 1.601 Establishment and maintenance of records and lists of firms or individuals debarred, ineligible or suspended.

[30 F.R. 5962, Apr. 29, 1965]

Each Department shall maintain a record of firms and individuals which it has debarred or suspended, to whom contract awards of any character, including sales, will not be made, and from whom bids or proposals will not be solicited as provided in this subpart. [30 F.R. 5962, Apr. 29, 1965]

§ 1.601-2 Information contained in Departmental records.

Each Departmental record shall show as a minimum the following information: (a) Names and addresses of those firms or individuals debarred, ineligible, or suspended (names will be set forth in alphabetical order with appropriate cross reference where more than one name is involved in a single action);

(b) Basis of authority for each action; (c) Extent of restrictions imposed; and

(d) Termination date for each debarred listing.

[30 F.R. 5962, Apr. 29, 1965]

§ 1.601-3 Joint Consolidated List.

The Department of the Army is responsible for the issuance of a Joint Consolidated List (DA Circular 715-1; NAVEXOS P-1205; AF Letter No. 70-23; DSA Regulation 4105.3; DCAI 5104.5) of firms and individuals debarred, declared ineligible, or suspended under § 1.603. The authorized representative for the Army (see § 1.600 (b) shall be furnished by the authorized representative of each of the other Departments, not later than the third day of each month, the information set forth in § 1.601-2, including additions, deletions, or modifications information previously furnished, necessary for issuance of the Joint Consolidated List. Each Department shall be

responsible for determining the number of copies of the Joint Consolidated List required and for distributing the list within the Department. The Department of the Army will furnish copies to the Assistant Secretary of Defense (Installations and Logistics).

[30 F.R. 11997, Sept. 21, 1965]

§ 1.601-4 Protection of lists and records.

The lists and records relating thereto shall be protected to prevent inspection of the contents by personnel who are not required to have access to such information. The lists, reports made pursuant to § 1.608, and all related internal correspondence shall be marked "For Official Use Only" unless the information warrants a security classification. [30 F.R. 5962, Apr. 29, 1965]

§ 1.601-5 Limitation.

No firm or individual will be listed on a consolidated list for causes or under conditions other than those set forth in this subpart.

[30 F.R. 5962, Apr. 29, 1965]

§ 1.601-6

Inquiries from debarred, ineligible, or suspended individuals and firms.

(a) Debarred and suspended firms and individuals. All inquiries relating to debarred or suspended firms and inIdividuals shall be referred or forwarded to the authorized representative of the Secretary concerned.

(b) Ineligible or disqualified firms or individuals. Inquiries from contractors or individuals listed as ineligible or disqualified by the Comptroller General and the Department of Labor under the Walsh-Healey or Davis-Bacon Acts shall be answered by indicating the nature of the prohibition, as shown on the consolidated list, and requesting that the inquirer communicate with the Wage and Hour and Public Contracts Division, Department of Labor, 14th Street and Constitution Avenue, NW., Washington, D.C., 20210.

[30 F.R. 5962, Apr. 29, 1965]

(1) Type A includes debarments in any of the following categories:

(i) Those listed by the Comptroller General pursuant to section 3 of the Walsh-Healey Public Contracts Act (41 U.S.C. 37) for violating the requirements of that Act;

(ii) Those listed by the Comptroller General pursuant to section 3 of the Davis-Bacon Act (40 U.S.C. 276a-2(a) for violating the requirements of that Act; and

(iii) Those which the Secretary concerned or his authorized representatives has determined to debar for any of the causes and under all of the conditions set forth in § 1.604.

Contracts shall not be awarded to, nor bids or proposals solicited from, nor invitations for bids or requests for proposals furnished to, concerns which are listed as Type A and which are debarred because of Walsh-Healey or Davis-Bacon violations (categories (i) and (ii) above). The same rules apply with respect to Type A listings within category (iii) above, unless the Secretary concerned or his authorized representative determines it to be in the interest of the Government to make an exception for a particular procurement action, or unless the listing indicates that the debarment is not to apply to sales contracts or to procurement contracts (see § 1.606).

(2) Type B includes concerns which the Secretary of Labor has determined to be ineligible because they do not qualify as "manufacturers" or "regular dealers" within the meaning of section 1(a) of the Walsh-Healey Public Contracts Act (41 U.S.C. 35(a)). Under that Act, procurement contracts in excess of $10,000 shall not be awarded the concerns under Type B listings for those materials, articles, or equipment with respect to which the concern has been found to be ineligible. However, contracts in any amount may be awarded, and bids or proposals may be solicited, for commodities with respect to which the concern has not been declared ineligible. In connection with ineligibility under the Walsh-Healey Act (Type B listing only), the name of an individual may be listed as affiliated with an ineligible firm. This listing is intended only to prevent such individuals from evading ineligibility merely by changing their business names and addresses. It does not prohibit other firms in which such individuals have an interest, and

which are qualified manufacturers or regular dealers from receiving contracts subject to the Walsh-Healey Public Contracts Act.

(3) Type C includes concerns which the appropriate Secretary, pursuant to section 3(b) of the Buy American Act (41 U.S.C. 10b (b)), has found to have failed to comply with the "Buy American Act" clause required for construction contracts (see § 6.205 of this chapter). Contracts for the construction, alteration, or repair of public buildings or public works in the United States or elsewhere shall not be awarded to concerns under Type C listings nor shall bids or proposals for such work be solicited from such concerns. However, concerns under Type C listings may be awarded contracts and may be solicited for bids or proposals for other than the construction, alteration, or repair of public buildings or public works, unless listed under Type A.

(4) Type D includes concerns which have been suspended under the conditions set forth in § 1.605. Concerns under Type D listings shall not be awarded contracts or solicited for bids or proposals, except where the Secretary concerned or his authorized representative determines it to be in the best interest of the Government to make an exception for a particular procurement or where the listing indicates that the suspension does not apply to sales contracts or to procurement contracts (see § 1.606).

(5) Type E includes concerns which have been reported by the Secretary of Labor to have violated labor standards provisions of any of the following statutes: Anti-Kickback Act (48 Stat. 948) as amended (40 U.S.C. 276c); Contract Work Hours Standards Act (76 Stat. 357360); National Housing Act (53 Stat. 804) as amended (12 U.S.C. 1703); Hospital Survey and Construction Act (60 Stat. 1040); Federal Airport Act (60 Stat. 170) as amended (49 U.S.C. 1101); Housing Act of 1949 (63 Stat. 413) (42 U.S.C. 1441); School Survey and Construction Act of 1950 (64 Stat. 967) (20 U.S.C. 251); Federal Civil Defense Act of 1950 (64 Stat. 1245) as amended; Defense Housing and Community Facilities and Services Act of 1951 (65 Stat. 293) as amended (42 U.S.C. 1591); and Area Redevelopment Act of 1961 (75 Stat. 47). Concerns under Type E listings shall not be awarded contracts which are subject to any of the foregoing statutes.

(6) Type F includes concerns which have been debarred by the appropriate Secretary or the Executive Vice Chairman of the President's Committee on Equal Employment Opportunity for noncompliance with the Equal Opportunity clause. Concerns under Type F listings may not be awarded contracts or be solicited for bids.

(b) Administration of current contracts in all phases may be continued, notwithstanding the listing of a contractor, unless otherwise directed by the Secretary concerned or his authorized representative. However, payment of all or part of funds due or to become due may be withheld when such action is determined to be in the best interest of the Government by the Secretary concerned or his authorized representative.

(c) Where a listed concern is proposed as subcontractor, the contracting officer should decline to consent to subcontracting with such concern in any instance in which consent is required of the Government before the subcontract is placed (see § 7.203-8 of this chapter) unless the Secretary or his authorized representative determines such placement to be in the best interest of the Government. [30 F.R. 5963, Apr. 29, 1965]

(see

§ 1.604 Administrative debarment of firms or individuals (Type A). The Secretary of each Department, or his authorized representative § 1.600(b)), except as limited below, is authorized to debar in the public interest a firm or an individual for any of the causes and under all of the conditions set forth below. Debarment of a firm or individual shall operate to debar such firm or individual throughout the Department of Defense. Placing the name of an inIdividual or firm on the consolidated list will be for the purpose of protecting the interest of the Government and not for punishment.

[30 F.R. 5963, Apr. 29, 1965] § 1.604-1

Causes for debarment.

The following are causes for debarment:

(a) Conviction by or a judgment obtained in a court of competent jurisdiction for

(1) Commission of fraud or a criminal offense as an incident to obtaining, attempting to obtain, or in the performance of a public contract;