as well as available cost estimates. He must be free to bargain for a total price which equitably distributes the risks between the contractor and the Government and provides incentives for efficiency and cost reduction. In negotiating such a price, it is not possible to identify the treatment of specific cost elements since the bargaining is on a total price basis. Thus, while cost data is often a valuable aid, it will not control negotiation of prices for work to be performed, or a target price under an incentive contract. [25 F.R. 14309, Dec. 31, 1960] § 15.603 Cost principles and their use. (a) When, pursuant to § 15.602, costs are to be considered in the negotiation of fixed-price type contracts, the appropriate subpart of this part shall be used as a guide in the evaluation of cost data required to establish a fair and reasonable price in conjunction with other pertinent considerations as set forth more fully in Subpart H, Part 3, of this chapter, and-in the case of negotiated termination settlements part C, Part 8 of this chapter. Sub (b) In retrospective pricing, whenever an occasion arises in which acceptability of a specific item of cost becomes an issue, the appropriate part of this Part 15 will serve as a guide for the contracting officer in his conduct of negotiations. (c) In applying this part to fixed-price contracts, contracting officers will: (1) Not be expected to negotiate agreement on every individual element of cost; and (2) be expected to use their judgment as to the degree of detail in which they consider the individual elements of cost in arriving at their evaluation of total cost, where such evaluation is appropriate. However, the negotiation record should fully substantiate and justify the reasoning leading to any negotiated price. (d) In order to permit the proper evaluation of cost data submitted by contractors for use in negotiating prices, it may be necessary to obtain breakdowns or account analyses in respect to some cost items particularly those whose treatment may be dependent upon special circumstances as stated in the principles. Contractors will be expected to be responsive to reasonable requests for data of this kind. [25 F.R. 14309, Dec. 31, 1960] AUTHORITY: The provisions of this Part 16 issued under R.S. 161, sec. 2202, 70A Stat. 120; 5 U.S.C. 22, 10 U.S.C. 2202. Interpret or apply secs. 2301-2314, 70A Stat. 127-133; 10 U.S.C. 2301-2314. § 16.000 Scope of part. This part prescribes forms' for use in connection with the procurement of supplies and services (see Appendix F for illustrations of these forms). In using these forms for procurement outside the United States, its possessions, and Puerto Rico, contract provisions which are made inapplicable to such procurement by this subchapter or by Departmental procedures may be deleted. [28 F.R. 4892, May 16, 1963] Subpart A-Forms for Advertised Supply Contracts provisions which are prescribed by this subchapter or Departmental procedures (Note. The Federal, State, and Local Taxes clause at § 11.401-1 of this chapter shall be used as a part of Standard Form 32, when that standard form is used in any advertised procurement or in any of the other circumstances set forth in § 11.401-1. When a standard form is used in a negotiated fixed-price type contract in excess of $10,000 where the contracting officer is not satisfied that the contract price, virtue of competition or otherwise, excludes contingencies for State and local taxes, the Federal, State, and Local Taxes clause at § 11.401-2 shall be made a part of the contract, and the clause at § 11.401-1 shall be deleted from Standard Form 32.); (e) Continuation Sheet (Supply Contract) (Standard Form 36) (when needed with Standard Forms 33 and 33-A or 26 or DD Form 1260); (f) Amendment to Invitation for Bids (DD Form 1260) when needed; and (g) Award (Supply Contract) (Standard Form 26) when needed. [30 F.R. 14093, Nov. 9, 1965] (a) The Invitation, Bid, and Award (Standard Form 33) and the Schedule portion of Standard Form 33 shall be prepared in accordance with §2.201 of this chapter. One copy of Standard Form 33-A shall accompany each copy of Standard Form 33. Bidders shall be requested to return only three signed copies of their bids. (b) Standard Form 32 and any additional general provisions may be attached to each copy of the Invitation for Bids. Alternatively, only one copy of Standard Form 32 and any additional general provisions need be furnished to each bidder, for retention, if such provisions are specifically incorporated by reference, including each form name, number and date, in the Schedule. visions which are inapplicable to a particular procurement, or to military procurements generally may be deleted by appropriate reference in an "Alterations in Contract" clause. Pro (c) Award of contracts shall be accomplished by completing the Award portion of Standard Form 33 and furnishing a copy of the form, so completed, to each successful bidder. Alternatively, such award may be accomplished by furnishing a completed Standard Form 26 to each successful bidder. Papers pre viously forwarded to bidders need not accompany the successful bidder's copy of the Award document. The required use of the Award portion of Standard Form 33 or the use of Standard Form 26 does not preclude the additional use of informal documents, including telegrams, as notices of awards. (d) DD Form 1260 (Amendment to Invitation for Bids) shall be used when it is necessary to issue an amendment. (e) Continuation Sheet (Supply Contract) (Standard Form 36) shall be used when additional space is required for the Schedule, Amendment, or Award. [30 F.R. 14094, Nov. 9, 1965] Subpart B-Forms for Negotiated This subpart prescribes forms for use in procuring supplies or services by negotiation (see also Subpart C of this part, Purchase and Delivery Order Forms); it is not applicable to specialized procurements for which other instructions are given by this subchapter or departmental procedures. [25 F.R. 14311, Dec. 31, 1960] § 16.201 Request for quotation (Standard Form 18). [25 F.R. 14311, Dec. 31, 1960] § 16.201-1 General. Standard Form 18 is prescribed to obtain price, cost, delivery, and related information from suppliers. [25 F.R. 14311, Dec. 31, 1960] Standard Form 18 is authorized for use when it appears reasonably certain that the procurement will be consummated by (a) fixed-price type contract involving extensive negotiation or, (b) a cost-reimbursement type contract. Standard Form 36 (Continuation Sheet), or DD Form 1155c (Continuation Sheet) may be used as required. Standard Form 18 may be used for negotiated procurements in excess of $2,500 and shall be used for negotiated procurements of $2,500 or less (including purchase orders) when written solicitations (other than by telegram) of quotations are used (see § 3.604 of this chapter). Two copies of Standard Form 18 shall be sent to each prospective supplier and he shall be requested to return only one signed copy. A quotation submitted on this form is not to be construed as an offer which can be accepted by the Government to form a binding contract. Therefore, issuance by the Government of a purchase order pursuant to a supplier's quotation does not constitute a contract, but the purchase order is an offer by the Government to the supplier to buy certain goods or services upon specified terms and conditions. [30 F.R. 6013, Apr. 29, 1965] § 16.202 Negotiated contract forms (DD Forms 1261 and 1270). (a) General. (1) DD Form 12611 (Negotiated Contract) is designed for use in entering into negotiated contracts where the signature of both parties on a single document is appropriate. (2) DD Form 1270 (General Provisions (Short Form Negotiated Contract)) is designed for use with DD Form 1261 as set forth in (b) below, but need not be used in contracts to be performed outside the United States, its Territories, its possessions or Puerto Rico. (3) DD Form 1261 (Negotiated Contract), in conjunction with appropriate General Provisions (as provided in paragraphs (b), (c), and (d) of this section), is prescribed for use in entering into negotiated contracts except: (i) Contracts for which DD Forms 746, 746-1, and 746-2 are used in accordance with § 16.203; (ii) Contracts for the construction, alteration, or repair of buildings, bridges, roads, or other kinds of real property; (iii) Procurements for which special contract forms are prescribed by this subchapter (for example, §§ 16.501, 16.503, 16.504, 16.505, and 16.506); and (iv) Procurements for which purchase order and related forms are authorized by Subpart C of this part. (b) Short form negotiated supply and services contracts. (1) Except as provided in paragraph (a) (2) and (3) of this section, DD Form 1261 (Negotiated Contract), and DD Form 1270 (General Provisions (Short Form Negotiated Contract)), shall be used for negotiated fixed-price type supply contracts which do not exceed $10,000 and which are for standard or commercial items not involving special inspection due to complicated specifications. These forms may be used also for nonpersonal services contracts which do not exceed $10,000. Standard Form 36 (Continuation Sheet) shall be used 1 Filed as part of the original document. for the Schedule and Continuation Sheet. (2) No clause on DD Form 1270 may be deleted or altered, and no other clause covering the subject matter of any clause set forth in ASPR may be used (including the clauses required by §§ 1.707-3 and 1.805-3(a) of this chapter) except: (i) Deletions and additions of clauses authorized for use by overseas activities may be made in accordance with Departmental procedures; (ii) The "Variation in Quantity" clause (§ 7.103-4 of this subchapter) and implementing provisions may be inserted in the Schedule where appropriate; (iii) The "Preference for Certain Domestic Commodities" clause (§ 6.305 of this subchapter) may be inserted in the Schedule, where required by Subpart C, Part 6 of this subchapter. (iv) When the contract is for the procurement of supplies and data or solely for data, one of the clauses set forth in §§ 9.203 through 9.206 of this chapter shall be added when required by the instructions contained in Subpart B, Part 9 of this chapter. (v) The "Soviet-Controlled Areas" clause (§ 6.403 of this subchapter) shall be inserted in the Schedule where appropriate; (vi) Where the contract is for services, the Termination for Convenience of the Government clause set forth in § 8.705 of this subchapter shall be inserted in the Schedule, and Paragraph 7 of the General Provisions deleted; (vii) The "Priorities, Allocations and Allotments" clause (§ 7.104-18 of this subchapter) may be inserted in the Schedule where required; and (viii) The "Federal, State and Local Taxes" clause (§ 11.401-1 of this subchapter) may, in the discretion of the contracting officer, be inserted in the Schedule. (ix) The procedures set forth in § 4.604 of this chapter will be followed when required by Subpart F, Part 4, of this chapter, Humane Slaughter of Livestock. (x) where the contract is for Military Assistance Program items, the "United States Products (Military Assistance Program)" certificate and clause (see §§ 6.703-3 and 6.703-4 of this chapter) shall be inserted in the Schedule, and Paragraph 10 of the General Provisions (Foreign Supplies) deleted. (xi) The "New Material" and "Government Surplus" clauses (see § 1.1208 of this chapter) may be inserted in the Schedule. (xii) Where inspection and acceptance are at origin, where contract administration is performed at origin, where delivery at multiple destinations is required, or where otherwise appropriate, the "Material Inspection and Receiving Report" clause (see § 7.105-7 of this chapter) may be inserted in the Schedule. Government property (xiii) Where having an acquisition cost of more than $25,000 is to be furnished, the Government Property (Fixed-Price) clause in § 13.702 of this chapter shall be inserted in the Schedule; and where Government property having an acquisition cost of $25,000 or less is to be furnished, the Government-Furnished Property (Short | Form) clause in § 13.710 of this chapter shall be inserted in the Schedule. (xiv) When appropriate, the Com- | mercial Warranty clause (see § 1.323-2 (c)) may be used in accordance with the provisions of that paragraph; and (xv) Pending revision of DD ASPR Form 1270 (June 1964 edition), the Interest clause (see § 163.118 of this chapter) shall be inserted in the Schedule when the contract exceeds $2,500. (c) Long form negotiated supply contracts. (1) Except as provided in paragraphs (a) (3) and (b) of this section, DD Form 1261 (Negotiated Contract) shall be used with Standard Form 32 (General Provisions (Supply Contract)), any other forms containing contract provisions which are prescribed by this subchapter or Departmental procedures, and Standard Form 36 (Continuation Sheet) for entering into negotiated fixed-price type supply contracts to which Subpart A, Part 12 of this chapter, is applicable. (2) Except as provided in paragraph (a)(3) of this section, DD Form 1261 (Negotiated Contract) shall be used with DD-ASPR Form 748 (General Provisions-Cost-Reimbursement Supply Contracts, any other forms containing contract provisions which are prescribed by this subchapter or Departmental procedures, and Standard From 36 (Continuation Sheet) for entering into negotiated cost-reimbursement type con |