§1.201-17 Small business concerns.

See § 1.701-1.

[25 F.R. 14081, Dec. 31, 1960] §1.201-18

Supplemental agreement.

Supplemental agreement means any contract modification which is accomplished by the mutual action of the parties. (See § 16.103.)

[32 F.R. 4242, Mar. 18, 1967]

§1.201-19 Supplies.

Supplies means all property except land or interests in land. It includes public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories thereto; aircraft and aircraft parts, accessories, and equipment, machine tools; and the alteration or installation of any of the foregoing. "Supplies" as used in this subchapter is synonymous with "property" as described in 10 U.S.C. 2303(b).

[27 F.R. 11643, Nov. 27, 1962]

§1.201-20 United States.

United States when used in a geographic sense, means the States and the District of Columbia.

[27 F.R. 11643, Nov. 27, 1962]

See § 18.101-1 of this chapter. [30 FR. 5961, Apr. 29, 1965]

§1.201-22 Classified procurement.

Classified procurement is that which requires access to classified information ("Confidential", including "Confidential-Modified Handling Authorized”, or higher) either to submit a bid or proposal or to perform the contract or that which because of other considerations should not be publicly disclosed; see § 1.320. [28 F.R. 12546, Nov. 23, 1963] §1.201-23 Designee.

"Designee," as used, for example, in the phrase, "Head of a Procuring Activity or his designee", may include one or more officials.

[29 F.R. 14816, Oct. 31, 1964]

"Assignment of contract administration" means that process whereby identifiled functions, duties, or responsibilities related to the administration of contract are assigned either by this subchapter or by individual assignment to a contract administration office.

[30 FR. 11997, Sept. 21, 1965] §1.201-27 Transfer of a contract.

"Transfer of a contract" means that process whereby all future responsibility for a contract held by an individual or office is transferred, in writing by proper authority, to another office to take action necessary to carry out the responsibility transferred.

[30 FR. 11997, Sept. 21, 1965]

§1.201-28 Local purchase.

Local purchase means the authorized purchase of materials, supplies and services by an installation for its own use or the use of an installation or activity logistically supported by it. Local purchase is not limited to the immediate geographical area in which the purchasing installation is located.

[31 F.R. 9851, July 21, 1966]

§ 1.201-29 Automatic data processing equipment (ADPE).

Automatic data processing equipment (ADPE) means:

(a) Digital and Analog Computer components and systems, irrespective of type of use, size, capacity, or price (FSC 7440);

(b) All peripheral, auxiliary, and accessorial equipment used in support of Digital and/or Analog Computers, either cable connected, or "self standing" and whether selected or acquired with the computers or separately (FSC 7410 or 7440);

(c) Punched Card Machines (PCM) and systems used in conjunction with or independently of Digital or Analog Computers (FSC 7410); and

(d) Digital and Analog Terminal and Conversion equipment that is acquired

solely or primarily for use with a system which employs a Computer or Punched Card Machines (FSC 7410 or 7440).

[32 F.R. 10157, July 11, 1967] §1.201-30 Paying office.

"Paying office" means the office which makes payments under the contract. [32 F.R. 10157, July 11, 1967]

§1.201-31 Supporting contract administration.

"Supporting contract administration" means the performance by another contract administration office of specific contract administration functions as required by the office to which the contract has been assigned for administration. [33 F.R. 10187, July 17, 1968]

§ 1.201-32

Standard dating technique.

Whenever it is necessary to insert the date on any contractual document or required report, it shall be written using seven characters in the following order: year (two digits), month (three letters), and day (two digits). For example, July 6, 1968, would be entered on contractual documents and required reports as "68 Jul 06."

[33 F.R. 19900, Dec. 28, 1968]

Subpart C-General Policies

§ 1.300 Methods of procurement. [25 F.R. 14082, Dec. 31, 1960]

§ 1.300-1 Competition.

All procurements, whether by formal advertising or by negotiation, shall be made on a competitive basis to the maximum practicable extent.

[25 F.R. 14082, Dec. 31, 1960]

§ 1.300-2 Formal advertising.

Purchases and contracts for supplies and services shall be made by formal advertising in all cases in which the use of such method is feasible and practicable under the existing conditions and circumstances. Procurement by formal advertising shall be in accordance with detailed requirements and procedures set forth in Part 2 of this subchapter. [25 F.R. 14082, Dec. 31, 1960]

[27 F.R. 11644, Nov. 27, 1962]

§ 1.302-1 Existing Government assets. To the extent possible, supplies shall be obtained from releasable assets of the Department of Defense or from surplusor excess stocks in the hands of any other Government agency. This shall specifically include purchase of excessstrategic and critical materials available for transfer from the General Services Administration as listed in periodic GSA Bulletins which are distributed in accordance with Departmental procedures (see § 5.705 of this chapter). Personnel responsible for issuing purchase requests shall insure compliance with policies pertaining to the utilization of existing Department of Defense material assets, as set forth in the Defense Utilization Manual (DSAM 4140.1) (AFM 67-11) (AR 1-38) (MCO P7020.5A). All purchase requests involving estimated expenditures of $50 or more for items centrally managed at inventory control points will be appropriately annotated with a statement to the effect that Department of Defense-wide review of assets has been initiated or completed, as appropriate, in compliance with the Defense Utilization Manual. This procedure is not applicable to automated procurements where procedures have been established under the automated system for a review of assets in accordance with DSAM 4140.1. In addition, this procedure is not applicable to subsistence, bulk petroleum, and medical drugs, as presently provided or later modified in that manual, or to such other items as may be added thereto. Interdepartmental purchases shall be accomplished in accordance with the provisions of Part 5 of this chapter.

[33 F.R. 7347, May 18, 1968]

Irrespective of whether the procurement of supplies or services from sources outside the Government is to be effected by formal advertising or by negotiation, competitive proposals ("bids" in the case of procurement by formal advertising, "proposals or quotations" in the case of procurement by negotiation) shall be solicited (see Subpart J of this part) from all such qualified sources of supplies or services 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 military department concerned, and thereby to obtain for the Government the most advantageous contract-price, quality, and other

factors considered.

[28 F.R. 12546, Nov. 23, 1963]

§ 1.302-3 Production and research and development pools.

(a) Description. A production or research and development pool is a group of concerns (1) who 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 (2) who have entered into a pool agreement governing their organization, relationship, and procedure, and (3) whose 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, P.L. 85-536 (Small Business Pook:). Pool participants are exempt from the "manufacturer or regular dealer" requirement of the Walsh-Healey Public Contracts Act. (See Subpart F of Part 12 of this subchapter.) Information on types of small business production pools, their purpose, and procedures for establishing such pools and for securing their approval by the Small Business Administration (SBA) is contained in the SBA publication "Small Business Production Pools for Defense".

(b) General rule. Except as provided in this section, a 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 ascer

taining whether a group of firms seeking to do business with the Government is a pool. In ascertaining the status of a group representing that it is a pool, contracting officers may rely on a copy of the SBA or Office of Emergency Planning (OEP) notification of approval of the pool. If the contracting officer has any question as to whether a given pool has been approved, he shall consult the regional office of the SBA. Each department will expeditiously disseminate to contracting officers information received from SBA or OEP concerning the approval of pools.

(d) Contracting with pools. (1) A bid or proposal of a pool is not eligible for award to the pool unless submitted either. by the pool in its own name or by an individual member 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 and not on behalf of a pool, the pool agreement shall be a factor to be considered in determining its responsibility pursuant to Subpart I of this part.

(f) Small business status. Approval of an organization as a defense production or research and development pool under the Defense Production Act of 1950, as amended, does not confer upon such pool the preferences and privileges accorded to "small business concerns". Such preferences and privileges shall be accorded only to those pools which have been approved under the Small Business Act, Public Law 85-536, as amended.

[28 F.R. 12546, Nov. 23, 1963, as amended at 29 F.R. 14816, Oct. 31, 1964]

§ 1.302-4 Foreign purchases.

Foreign purchases shall be made in accordance with the provisions of Part 6 of this title and upon compliance with any other applicable provisions of the subchapter.

[25 F.R. 14082, Dec. 31, 1960]

§ 1.302-5 Planned emergency producer.

A "Planned Emergency Producer" is a concern with which one or more Government procuring activities have negotiated an emergency production assignment and which holds a valid planned emergency production schedule signed by the responsible Armed Services Procurement Planning Officer (ASPPO). In procurements of items for which there are planned emergency producers, such producers shall be solicited.

[25 F.R. 14082, Dec. 31, 1960]

§ 1.302-6 Contracts between the Government and its employees or business organizations substantially owned or controlled by Government employees.

(a) Contracts shall not knowingly be entered into between the Government and employees of the Government or business organizations which are substantially owned or controlled by Government employees, except for the most compelling reasons, such as cases where the needs of the Government cannot reasonably be otherwise supplied.

(b) When a contracting officer has reason to believe that an exception as described in paragraph (a) of this section should be made, approval of the Head of a Procuring Activity shall be obtained prior to entering into any such contract.

(c) Nothing in paragraph (a) of this section shall authorize a "Personal Services" contract in violation of § 22-102 of this chapter.

[27 F.R. 8869, Sept. 6, 1962, as amended at 34 F.R. 13830, Aug. 29, 1969]

§ 1.303 Exchange of purchase information.

(a) Where the same item or class of items is being purchased by more than one Department, or by more than one procuring activity within a Department, the exchange and coordination of pertinent information, particularly cost and pricing data, between these Departments or procuring activities is necessary to promote uniformity of treatment of

major issues and the resolution of particularly difficult or controversial issues. Such exchange and coordination of information is particularly beneficial during the period of procurement planning, presolicitation, evaluation, and preaward survey.

(b) Where substantial purchases of major items are involved or where the purchasing activity deems it desirable, it shall request appropriate information (on both the end item and on major subcontracted components) from other purchasing activities responsible for buying similar items. Each activity receiving such requests shall furnish the information requested. The contracting officer, early in a negotiation of a contract, or in connection with the review of a subcontract, shall request the contractor to furnish information as to the contractor's or subcontractor's previous Government contracts and subcontracts for the same or similar end items and major subcontractor components. [27 F.R. 11644, Nov. 27, 1962]

§ 1.304 Procurement of privately developed items.

[33 F.R. 7347, May 18, 1968]

It is Department of Defense policy: (a) To make all procurements on a competitive basis to the maximum practicable extent, and

(b) To provide an incentive to industry creativity by honoring the rights in data resulting from private development and by limiting the demands for such data to that which is essential for Government purposes.

It is important that the efforts directed toward increasing competition do not demand or use privately developed data in a manner which is contrary to the policies and procedures established in Subpart B, Part 9 of this chapter. Accordingly, when the two policies stated above produce situations which require the contracting officer to decide whether to procure data for future competitive procurement, the provisions of Subpart B, of Part 9 of this chapter, as supplemented by §§ 1.304-1.304-2, shall govern.

[33 F.R. 7347, May 18, 1968] § 1.304-2

ods.

Specific procurement meth

(a) Where Defense requirements are for items which are available from more

than one source as a result of either licensing, competitive copying, or independent development, the contracting officer shall seek full and free competition for such items.

(b) Where the Government desires to purchase privately developed items but does not have necessary data with unlimited rights for use in a specification for competitive procurement, the contracting officer shall use one of the following alternative procedures with preference in the order of this listing (see also § 1.313).

(1) Where practical, procurement shall -be competitive using performance or other specifications, including purchase - descriptions, which do not contain data - developed at private expense to which - the Government does not have unlimited - rights. Procurement on this basis will snormally not provide items of identical = design. However, it frequently is not necessary that items of identical design be purchased. There are two methods of competitive procurement which may provide items of the same or of similar design and suitable performance. One of these is purchase by two-step formal advertising. The other is by the use of "brand name or equal" purchase descriptions. To encourage participation by technically oriented firms that are desirous of offering their privately developed products in competition with similar articles, procuring activities should consider incorporating a requirement in the IFB or RFP for a bid sample to be used for evaluation purposes only (see $ 1.1206 through 1.1206-4 and 2.202-4 of this chapter).

(2) Where items of design or composition similar or identical to a privately developed item are required and it is determined that competitive procurement is not practicable, procurement should be on a non-competitive basis from the firm which developed or designed the item or process or its licensees, provided productive capacity and quality are adequate and price is fair and reasonable.

(3) Where additional sources are required for items of design or composition similar or identical to a privately developed item in order to meet total current or mobilization requirements, and the procedures in subparagraph (1) of this paragraph cannot practicably be used to create additional sources, the developer should be encouraged to license others to manufacture such items. Pro

36-070-70-3

curing activities should also consider the specific acquisition by the Government of the necessary rights in data. Where complex technical equipment is involved and the establishment of satisfactory additional sources will require, in addition to data, technical assistance from the primary source, consideration should be given to the use of the leader company procurement technique (see Subpart G, Part 4 of this chapter).

(4) As a last alternative, a design specification may be developed by the Government through inspection and analysis of the product (i.e., reverse engineering) and used for competitive procurement. Reverse engineering shall not be used unless significant cost savings can be reasonably demonstrated and the action is authorized by the Head of the Procuring Activity. In the case of the Air Force this authority may be delegated to the Commanders of the Air Force Systems Command Divisions and Centers and the Air Force Logistics Command Air Materiel Areas.

[33 F.R. 7347, May 18, 1968]

§ 1.304-3 Purchase of patented items when Government is a licensee.

Award of a contract shall not be refused to a bidder/offeror merely because he is not the owner of or a licensee under any patent involved in the procurement. If, at the time a solicitation is issued, the Government is obligated to pay royalties applicable to the proposed procurement because of a preexisting license agreement between the Government and a patent owner, the solicitation shall so state and shall: (a) Identify the patents and specify the royalty rate; and (b) advise that an amount equal to the royalty which the Government will be required to pay under the license agreement will be added as an evaluation factor to each bid/offer unless the bidder/offeror includes in his bid/offer a statement that he is the owner of or a licensee under the patents. (See §§ 2.201(a) (17) and (20) and 3.501(b) (15) and (17) of this chapter.)

[34 F.R. 9262, June 12, 1969]

§ 1.305 Time of delivery or perform

ance.

[25 F.R. 14083, Dec. 31, 1960] § 1.305-1 Scope.

Sections 1.305-1.305-4 prescribe policy and procedure regarding requirements