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CHAPTER BUREAU OF FEDERAL SUPPLY

DEPARTMENT OF THE TREASURY

Part 1

2 3 4 5

General.
Procedures.
Directed procurement.
Standard contracts.
Surplus personal property.

Cross References: Armed Services procurement regulations: See National Defense, 32

CFR Chapter IV, Subchapter A. Coast Guard regulations: See Shipping, 46 CFR Chapter I. General Accounting Office regulations governing bills of lading for the transportation of

Government property: See Accounts, 4 CFR Part 8. National Bureau of Standards test fee schedules: See Commerce and Foreign Trade, 15 CFR

Chapter II. Post Office Department regulations relating to supply contracts: See Postal Service, 39

CFR Part 6. Public Roads Administration rgulations: See Highways, 23 CFR Chapter I. Shipping container specifications for transportation of explosives and dangerous articles under

the Interstate Commerce Commission regulations: See Transportation, 49 CFR Part 73a.

Note: Other regulations issued by the Department of the Treasury appear in Title 12, Chapter I; Title 19, Chapter I; Title 21, Chapter II; Title 26, Chapter I; Title 27, Chapter I; Title 31; Title 33, Chapter I; Title 46, Chapter I.

Part 1 - General Sec. 1.1 Executive agencies. 1.2 Continental United States. 1.3 Businessmen cautioned.

AUTHORITY: $$ 1.1 to 1.3 issued under sec. 1, E. O. 6166, June 10, 1933; 5 U.S. C. 132 note.

SOURCE: $$ 1.1 to 1.3 appear at 13 F. R. 8761.

except Government corporations, in the Executive Branch of the United States, and includes the District of Columbia Government to the extent authorized by the acts of July 1, 1918, February 27, 1929, and June 28, 1944, as amended. (40 Stat. 672, 45 Stat. 1341, 58 Stat. 531; 40 U. S. C. 110, 41 U. S. C. 7a, D. C. Code, Supp., 1-241).

$ 1.2 Continental United States. The term "continental United States," as used in this chapter, means the area comprising the forty-eight States and the District of Columbia.

$ 1.1 Executive agencies. The term "Executive agencies," as used in this chapter, means departments, boards, commissions and other establishments,

8 1.3 Businessmen cautioned. Those selling supplies to or buying surplus supplies from Executive agencies are cautioned that the transactions may be invalidated if made contrary to the regulations in this chapter.

Part 2-Procedures Sec. 2.1 Forfeited distilled spirits. 2.2 Tort claims.

CONTRACTS

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2.3 Invitations for bids.
2.4 Awards.
2.5 Protests of awards.
2.6 Disputes.
2.7 Term contracts.

AUTHORITY: $$ 2.1 to 2.7 issued under sec. 1, E. O. 6166, June 10, 1933; 5 U. S. C. 132 note.

SOURCE: $ $ 2.1 to 2.7 appear at 13 F. R. 8761.

$ 2.1 Forfeited distilled spirits. In the disposal under section 2805 (a) of the Internal Revenue Code of forfeited distilled spirits, wine and malt beverages as a gift to eleemosynary institutions for medicinal purposes, institutions are required to establish eligibility and needs by filing with the Director, Bureau of Federal Supply, Washington, D. C., Bureau of Federal Supply Form TS 735 Rev., “Affidavit on Behalf of Eleemosynary Institution.” Eligible institutions are placed on a mailing list to receive circulars of available distilled spirits and from time to time request transfers of distilled spirits listed in the circulars. No special form or request for transfer is prescribed.

§ 2.2 Tort claims. Procedures for the settlement of tort claims arising from actions of Treasury Department employees are published in 31 CFR Part 3.

Bureau of Federal Supply Form TS 705 (Revised), "Mailing List Application," must be filed. Copies are available at all offices.

$ 2.4 Awards. Contracts are awarded to the lowest responsible bidder offering to furnish supplies and services and to the highest responsible bidder offering to purchase surplus supplies in the absence of special security or other public interest factors. A Board of Review of Bidders' Responsibility appointed by the Director, Bureau of Federal Supply, considers referred questions of bidders' responsibility arising in connection with the award of contracts by the Washington ofice. Contracts are signed by authorized contracting officers in Washington, D. C., and the field, upon the recommendations of purchasing and sales offcers and their supervisors. Standard Government contract forms are used as applicable ($ $ 4.11-4.27 of this chapter). For foreign relief contracts, Bureau of Federal Supply Form No. 818 and Contract Terms No. 7, dated March 7, 1946, as revised from time to time, are used. For strategic and critical materials purchase contracts, Bureau of Federal Supply Form TS-SCM 1 is Used. Copies of these forms are available at the Washington office and of the standard Government forms at all offices.

$ 2.5 Protests of awards. Protests of awards of contracts should be in writing and filled with the head of the local field ofice or the Deputy Director, Purchase Branch, Bureau of Federal Supply, Washington, D. C., or the Assistant Director, Strategic and Critic Materials, Bureau of Federal Supply, Washington, D. C., depending on the program and place of award. No special forms are needed, but the protester should indicate the nature of his interest in the matter. On awards made in Washington, D. C., not involving strategic and critical materials, hearings will be arranged, on request, in Washington, D. C., before a committee composed of the Deputy Director, Purchase Branch, a member of the Legal Division, the Chief, Contract Division, and the Chief, Purchase Section concerned. Recommendations of this committee will be made to the Director, Bureau of Federal Supply.

$ 2.6 Disputes. All questions and disputes with respect to contract performance, payment and procedure should be referred to the contracting officer concerned, through an inspector if available

CONTRACTS

$ 2.3 Invitations for bids. Bids are solicited for the procurement of supplies and services and the disposition of surplus supplies through public notices posted or published and invitations for bids sent to suppliers and purchasers believed qualified and interested, within such limits as the public interest requires. Invitations for bids are issued by both the Washington office and the several field offices. Those wishing to receive invitations for bids should apply separately to each office as desired. Before being placed on the mailing list to receive pertinent invitations for bids,

Part 3-Directed Procurement

Subpart A-Supplies and Services Sec. 3.1 Term contracts. 3.2 Stock items. 3.3 Lubricating oil. 3.4 Vehicle identification tags. 3.5 Special supplies.

Subpart B- Purchase Specifications 3.11 Federal Specifications. 3.12 Inappropriate parts of Federal Specifi

cations. 3.13 Proposed revision of Federal Specifica

tions.

Subpart C-Shipment of Supplies 3.21 Routing.

Subpart D--Preference for Domestic Products 3.31 Purchase of domestic products; favor

ing differential. 3.32 Duty; unreasonable cost. 3.33 Saving provision.

AUTHORITY: $$ 3.1 to 3.33 issued under sec. 1, E. O. 6166, June 10, 1933; 5 U.S. C. 132 note.

SOURCE: $$ 3.1 to 3.33 appear at 13 F. R. 8762.

at the premises, in the absence of special instructions or notice received in particular cases. Determinations of the contracting officer are ordinarily reviewable, in the manner prescribed by the contract by the Secretary of the Treasury or such representative as he may designate from time to time. No special forms are required to submit questions, disputes and claims, or appeals from determinations thereon. However, claims for amounts due deceased contractors must be filed on Standard Form No. 1055 (Revised), "Claim Against the United States for Amounts Due in the Case of a Decedent.".

$ 2.7 Term contracts. Where contracts are made by contracting officers of the Bureau of Federal Supply with contractors to furnish supplies and services as required by Executive agencies during specified periods, frequently referred to as contracts composing the Federal Supply Schedule, purchase orders are placed directly with contractors by ordering Executive agencies which have been informed of such contracts. Ordering offices make payments directly to the contractor and, in the first instance, determine whether performance is in accordance with contract requirements. In the event the contractor offers defective supplies, they may accept or reject them, make price adjustments or seek replacements, or terminate purchase orders, purchase from other sources and charge the contractor with any resulting excess costs. All disputes concerning questions of fact arising under the contract which cannot satisfactorily be settled between the ordering office and the contractor and all notices filed by the contractor that a delay in the time of performance was due to an excusable cause preventing assessment of excess costs under the provisions of the contract must be referred to the contracting officer of the Bureau of Federal Supply for consideration. His determinations are reviewable by the Secretary of the Treasury as in other contracts ($ 2.6). In order that the Bureau of Federal Supply may properly supervise operations of the contracts and ascertain the suitability of the contractor for further awards, ordering offices are required to report to the Bureau of Federal Supply, Washington, D. C., the details concerning all material instances of unsatisfactory performance by a contractor, whether or not adequately adjusted and settled.

SUBPART A-SUPPLIES AND SERVICES $ 3.1 Term contracts. Executive agencies shall procure needed supplies and services as provided under term contracts awarded by the Bureau of Federal Supply. (Further information concerning these contracts may be obtained from any ofice of the Bureau of Federal Supply, and see § 2.7 of this chapter.)

$ 3.2 Stock items. Executive agencies, within continental United States and Alaska, shall procure needed supplies as listed in the national Stock Catalog of the Bureau of Federal Supply, except as exempted by the Director, Bureau of Federal Supply. (Further information concerning these stock items and exemptions granted may be obtained from any office of the Bureau of Federal Supply.)

$ 3.3 Lubricating oil. Executive agencies, within continental United States, shall procure needed lubricating oil as provided under term contracts awarded by the Navy Department, except as exempted by the Director, Bureau of Federal Supply. (Further information concerning these contracts and exemptions granted may be obtained from any office of the Bureau of Federal Supply.)

$ 3.4 Vehicle identification tags. Executive departments and establishments shall procure required Government identification tags for motor vehicles used outside the District of Columbia from the Department of Corrections, District of Columbia Government.

$ 3.5 Special supplies. Executive agencies, within continental United States, shall procure as needed the following supplies from the Bureau of Federal Supply:

(a) Construction machinery. Heavy construction machinery in the following categories, and major attachments therefor, except for the National Military Establishment and the Economic Cooperation Administration: asphalt mixers and pavers, portable compressors, concrete mixers and pavers, portable conveyors, portable cranes, portable crushers, ditching machines, portable engines and power units, motor graders, portable power hoists, power shovels, road rollers, scrapers and dump wagons, snow plows, sweepers, wheel and track-laying tractors and allied equipment, and welldrilling machines.

(b) Fans. (1) Electric fans, except shipboard fans for the Coast Guard, the Navy Department and the U. S. Maritime Commission.

(2) "Electric fan” means any propeller type fan designed for desk, pedestal, wall bracket, ceiling, or portable window mounting. It includes such fans whether completely assembled or assembled in knocked down form. It does not include any centrifugal fan or blower, propeller type attic fan, industrial propeller type exhaust fan or any fan which is a functional part of any equipment or device having a primary use other than ventilation.

(c) Filing cabinets. Letter size and cap size steel upright filing cabinets.

(d) Household furniture. Household and quarters furniture, where the purchase exceeds $100.

(e) IBM control panels. Additional control panels for use with electric accounting machines of the International Business Machines Corporation, above the standard number furnished by the corporation with the machine.

(f) Motor vehicles. Motor-propelled vehicles for the carriage of passengers and freight, including passenger automobiles, station wagons, ambulances, buses, motorcycles, motor scooters, carry-alls, trucks, truck-tractors, trailers,

etc., except for the National Military Establishment.

(g) Office furniture. Steel office desks, tables and storage cabinets, except for the National Military Establishment.

(h) Paper and paperboard. (1) Paper and paperboard, except for the following:

(1) Needs of the National Military Establishment and the U.S. Maritime Commission;

(ii) Distinctive paper for United States securities;

(11) Quarterly requirements of less than 100 reams or 500 pounds;

(iv) Items obtained from the Government Printing Ofice as listed in its bulletins entitled “Standard Forms and Miscellaneous Supplies Catalog” and “Blank Paper and Envelopes”;

(v) Items obtained from surplus property inventories of Federal disposal agencies;

(vi) Items required for scientific, laboratory or research work.

(2) "Paper and paperboard" means all types of paper and paperboard listed in the Standard Commodity Classification, Volume I, May 1943, as items 14 5000 to 14 5319, 14 5330 to 14 5459, 14 5490 to 14 5524, 14 5529 to 14 5531, 14 5539 to 14 5540, 14 5560 to 14 5599, 14 5800 to 14 7900 and 14 7990.

(i) Refrigerators. Domestic mechanical refrigerators, except for the Housing and Home Finance Agency, National Military Establishment, Panama Canal, Public Health Service, and U. S. Maritime Commission,

SUBPART B-PURCHASE SPECIFICATIONS § 3.11 Federal Specifications. Executive agencies, in procuring supplies within continental United States, shall use applicable Federal Specifications promulgated by the Director, Bureau of Federal Supply, except as otherwise authorized. (All published Federal Specifications and a Federal Specifications Index are available at the Government Printing Office, Washington, D. C.)

$ 3.12 Inappropriate parts of Federal Specifications. Executive agencies may disregard portions of Federal Specifications believed for administrative reasons to be inappropriate to meet their particular or essential needs.

$ 3.13 Proposed revision of Federal Specifications. When a revision, in domestic product as unreasonable, or to negotiate for a lower price, for any reason other than the comparative cost of a foreign product.

whole or in part, of a Federal Specification has been approved by a Technical Committee of the Federal Specifications Board and is circulated by the Bureau of Federal Supply to Executive agencies for comment, Executive agencies may disregard in the original Federal Specification the whole or the part, as the case may be, proposed to be revised.

SUBPART C-SHIPMENT OF SUPPLIES $ 3.21 Routing. Executive agencies, except the Post Office Department, the Department of Agriculture, the National Military Establishment, and the District of Columbia Government, shall obtain from the Bureau of Federal Supply, Washington, D. C., routing orders to cover the shipment of their supplies consisting of two or more carloads moving under a Government bill of lading within continental United States from one point of origin to one destination, in the absence of an emergency or waiver granted by the Director, Bureau of Federal Supply. SUBPART D PREFERENCE FOR DOMESTIC

PRODUCTS $ 3.31 Purchase of domestic products; favoring differential. In applying the exception contained in title III, section 2, of the so-called Buy-American Act of March 3, 1933 (47 Stat. 1520; 41 U.S. C. 10a), which permits purchase of products of foreign origin if the cost of domestic products is unreasonable, the following differentials shall be applied by executive departments and independent establishments in favor of domestic products to be delivered in continental United States:

(a) Where the cost of the foreign product exceeds $100, a differential of 25 percent;

(b) Where the cost of the foreign product is $100 or less, a differential of 100 percent.

$ 3.32 Duty; unreasonable cost. When the cost is enhanced by duty paid the United States, the differential shall be 25 percent or 100 percent, as the case may be, of the cost exclusive of duty. The cost of the domestic product is unreasonable whenever it exceeds the cost of the foreign product including duty plus the amount of the differential.

$ 3.33 Saving provision. Nothing in this subpart prejudices the authority of any Executive department or independent establishment to reject a bid for å

Part 4-Standard Contracts

Subpart A-Prescribed Forms Sec. 4.1 Forms to be used. 4.2 Use in foreign countries. 4.3 Additional stipulations and instruc

tions. 4.4

Printing specifications. 4.5 Prior authorizations.

Subpart B-Content of Forms 4.11 Lease. 4.12 Instructions to bidders; construction

and supplies. 4.13 Construction contract. 4.14 Bid bond; construction or supply. 4.15 Performance bond; construction or

supply. 4.16 Payment bond; construction. 4.17 Performance bond; construction or

supply; corporate co-surety. 4.18 Payment bond; construction; corpo

rate co-surety. 4.19 Invitation for bids; supply. 4.20 Form of bid; supply. 4.21 Supply contract; formal. 4.22 Short form contract. 4.23 Annual bid bond; supplies. 4.24 Annual performance bond; supplies. 4.25 Telephone service contract. 4.26 Instructions to bidders; coal. 4.27 Purchase conditions; coal. Subpart (Special Standard Contract Provisions 4.31 Labor and material reports; construc

tion contracts. AUTHORITY: $$ 4.1 to 4.31 issued under sec. 1, E. O. 6166, June 10, 1933; 5 U. S. C. 132 note.

SOURCE: $ $ 4.1 to 4.31 appear at 13 F. R. 8763.

SUBPART A-PRESCRIBED FORMS $ 4.1 Forms to be used. Except as otherwise authorized, the following standard forms shall be used without deviation by all Executive agencies for or in connection with every formal contract of the kinds specified that may be entered into by them:

(a) Leases. U. S. Standard Form No. 2 (Revised), approved by the Secretary of the Treasury May 6, 1935—for leases of real property where the Government is lessee.

(b) Construction or supply contracts. (1) U. S. Standard Form No. 22, approved by the Acting Secretary of the Treasury July 13, 1939-in connection

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