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advantage, contractors that develop or (vi) Preference, to the extent pracdraft

specifications, requirements, ticable and economically feasible, for statements of work, invitations for products and services that conserve bids and/or requests for proposals shall natural resources and protect the envibe excluded from competing for such ronment and are energy efficient. procurements. Awards shall be made to (b) Positive efforts shall be made by the bidder or offeror whose bid or offer recipients to utilize small businesses, is responsive to the solicitation and is minority-owned firms, and women's most advantageous to the recipient, business enterprises, whenever posprice, quality and other factors consid- sible. Recipients of DOE awards shall ered. Solicitations shall clearly set take all of the following steps to furforth all requirements that the bidder ther this goal. or offeror shall fulfill in order for the (1) Ensure that small businesses, mibid or offer to be evaluated by the re- nority-owned firms, and women's busicipient. Any and all bids or offers may ness enterprises are used to the fullest be rejected when it is in the recipient's extent practicable. interest to do so.

(2) Make information on forthcoming

opportunities available and arrange $ 600.144 Procurement procedures. time frames for purchases and con(a) All recipients shall establish writ

tracts to encourage and facilitate parten procurement procedures. These

ticipation by small businesses, minorprocedures shall provide for, at a mini

ity-owned firms, and women's business mum, that paragraphs (a)(1), (2) and (3)

enterprises. of this section apply.

(3) Consider in the contract process (1) Recipients avoid purchasing un

whether firms competing for larger necessary items.

contracts intend to subcontract with

small (2) Where appropriate, an analysis is

businesses, minority-owned

firms, and women's business entermade of lease and purchase alter

prises. natives to determine which would be the most economical and practical pro

(4) Encourage contracting with concurement.

sortiums of small businesses, minority

wned firms and women's business en(3) Solicitations for goods and serv

terprises when a contract is too large ices provide for all of the following.

for one of these firms to handle individ(1) A clear and accurate description

ually. of the technical requirements for the

(5) Use the services and assistance, as material, product or service to be pro

appropriate, of such organizations as cured. In competitive procurements,

the Small Business Administration and such a description shall not contain

the Department of Commerce's Minorfeatures which unduly restrict com

ity Business Development Agency in petition.

the solicitation and utilization of (11) Requirements which the bidder/

small businesses, minority-owned firms offeror must fulfill and all other fac

and women's business enterprises. tors to be used in evaluating bids or

(c) The type of procuring instruments proposals.

used (e.g., fixed price contracts, cost (iii) A description, whenever prac- reimbursable contracts, purchase orticable, of technical requirements in ders, and incentive contracts) shall be terms of functions to be performed or determined by the recipient but shall performance required, including the

be appropriate for the particular prorange of acceptable characteristics or

curement and for promoting the best minimum acceptable standards.

interest of the program or project in(iv) The specific features of "brand volved. The “cost-plus-a-percentage-ofname or equal" descriptions that bid- cost" or "percentage of construction ders are required to meet when such cost" methods of contracting shall not items are included in the solicitation. be used.

(v) The acceptance, to the extent (d) Contracts shall be made only with practicable and economically feasible, responsible contractors who possess of products and services dimensioned in the potential ability to perform sucthe metric system of measurement. cessfully under the terms and condi

tions of the proposed procurement. Consideration shall be given to such matters as contractor integrity, record of past performance. financial and technical resources or accessibility to other necessary resources. In certain circumstances, contracts with certain parties are restricted by DOE's implementation, in 10 CFR part 1036, of E.O.'s 12549 and 12689, "Debarment and Suspension."

(e) Recipients shall, on request, make available for DOE, pre-award review and procurement documents, such as request for proposals or invitations for bids, independent cost estimates, etc., when any of the following conditions apply.

(1) A recipient's procurement procedures or operation fails to comply with the procurement standards in this subpart.

(2) The procurement is expected to exceed the small purchase threshold fixed at 41 U.S.C. 403 (11) (currently $25,000) and is to be awarded without competition or only one bid or offer is received in response to a solicitation.

(3) The procurement, which is expected to exceed the small purchase threshold, specifies a "brand name" product.

(4) The proposed award over the small purchase threshold is to be awarded to other than the apparent low bidder under a sealed bid procurement.

(5) A proposed contract modification changes the scope of a contract or increases the contract amount by more than the amount of the small purchase threshold.

(f) By agreement of the recipient or subrecipient and the contractor, if consistent with the recipient's or subrecipient's usual business practices and applicable state and local law, any contract to which this section applies may provide for the payment of interest penalties on amounts overdue under such contract except that,

(1) In no case shall any obligation to pay such interest penalties be construed to be an obligation of the Federal government, and

(2) Any payment of such interest penalties may not be made from DOE funds nor be counted toward meeting a

cost sharing requirement of a DOE award. $ 600.145 Cost and price analysis.

Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. Price analysis may be accomplished in various ways, including the comparison of price quotations submitted, market prices and similar indicia, together with discounts. Cost analysis is the review and evaluation of each element of cost to determine reasonableness, allocability and allowability. 8600.146 Procurement records.

Procurement records and files for purchases in excess of the small purchase threshold shall include the following at a minimum:

(a) Basis for contractor selection,

(b) Justification for lack of competition when competitive bids or offers are not obtained, and

(c) Basis for award cost or price. 8600.147 Contract administration.

A system for contract administration shall be maintained to ensure contractor conformance with the terms, conditions and specifications of the contract and to ensure adequate and timely follow up of all purchases. Recipients shall evaluate contractor performance and document, as appropriate, whether contractors have met the terms, conditions and specifications of the contract.

$600.148 Contract provisions.

The recipient shall include, in addition to provisions to define a sound and complete agreement, the following provisions in all contracts. The following provisions shall also be applied to subcontracts.

(a) Contracts in excess of the small purchase threshold shall contain contractual provisions or conditions that allow for administrative, contractual, or legal remedies in instances in which a contractor violates or breaches the contract terms, and provide for such remedial actions as may be appropriate.

(b) All contracts in excess of the small purchase threshold shall contain

suitable provisions for termination by 223, “Surety Companies Doing Business the recipient, including the manner by with the United States." which termination shall be effected (d) All negotiated contracts (except and the basis for settlement. In addi- those for less than the small purchase tion, such contracts shall describe con- threshold) awarded by recipients shall ditions under which the contract may include a provision to the effect that be terminated for default as well as the recipient, DOE, the Comptroller conditions where the contract may be General of the United States, or any of terminated because of circumstances their duly authorized representatives, beyond the control of the contractor. shall have access to any books, docu

(c) Except as otherwise required by ments, papers and records of the constatute, an award that requires the tractor which are directly pertinent to contracting (or subcontracting) for a specific program for the purpose of construction or facility improvements making audits, examinations, excerpts shall provide for the recipient to follow

and transcriptions. its own requirements relating to bid (e) All contracts, including small guarantees, performance bonds, and purchases, awarded by recipients and payment bonds unless the construction

their contractors shall contain the procontract or subcontract exceeds

curement provisions of Appendix A to $100,000. For those contracts or sub

this subpart, as applicable. contracts exceeding $100,000, DOE may

8600.149 Resource Conservation and accept the bonding policy and require

Recovery Act (RCRA). ments of the recipient, provided the DOE has made a determination that

Recipients' procurements shall comthe Federal Government's interest is

ply with applicable requirements of adequately protected. If such a deter- RCRA, as described at $600.116 of this mination has not been made, the mini

subpart. mum requirements shall be as fol 8. (1) A bid guarantee from each bidder

Reports and Records equivalent to five percent of the bid 8 600.160 Purpose of reports and price. The “bid guarantee" shall con- records. sist of a firm commitment such as a

Sections 600.151 through 600.153 set bid bond, certified check, or other ne

forth the procedures for monitoring gotiable instrument accompanying a

and reporting on the recipient's finanbid as assurance that the bidder shall,

cial and program performance and the upon acceptance of his bid, execute such contractual documents as may be

necessary standard reporting forms.

They also set forth record retention rerequired within the time specified.

quirements. (2) A performance bond on the part of the contractor for 100 percent of the 8 600.151 Monitoring and reporting contract price. A “performance bond" program performance. is one executed in connection with a

(a) Recipients are responsible for contract to secure fulfillment of all the

managing and monitoring each project, contractor's obligations under such

program, subaward, function or activcontract.

ity supported by the award. Recipients (3) A payment bond on the part of the shall monitor subawards to ensure contractor for 100 percent of the con- subrecipients have met the audit retract price. A "payment bond” is one quirements as delineated in $ 600.126. executed in connection with a contract (b) The terms and conditions of the to assure payment as required by stat- award will prescribe the frequency with ute of all persons supplying labor and which the performance reports shall be material in the execution of the work submitted. Except as provided in paraprovided for in the contract.

graph (f) of this section, performance (4) Where bonds are required in the reports shall not be required more fresituations described herein, the bonds quently than quarterly or less freshall be obtained from companies hold- quently than annually. Annual reports ing certificates of authority as accept- shall be due 90 calendar days after the able sureties pursuant to 31 CFR part award year; quarterly or semi-annual

reports shall be due 30 days after the reporting period. DOE may require annual reports before the anniversary dates of multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award.

(c) If inappropriate, a final technical or performance report shall not be required after completion of the project.

(d) When required, performance reports shall generally contain, for each award, brief information on each of the following.

(1) A comparison of actual accomplishments with the goals and objectives established for the period, the findings of the investigator, or both. Whenever appropriate and the output of programs or projects can be readily quantified, such quantitative data should be related to cost data for computation of unit costs.

(2) Reasons why established goals were not met, if appropriate.

(3) Other pertinent information including, when appropriate, analysis and explanation of cost overruns or high unit costs. DOE may specify in the award that the recipient provide this information on the Federal Assistance Program Project Status Report (DOE F 4600.6), the technical reporting formats, or the Federal Assistance Management Summary Report. DOE may require that the Federal Assistance Management Summary Report be used as a performance report only when such use is authorized by program rule or the need for this form is explained in the solicitation. The requirements of this section concerning reporting frequency and deadlines shall apply to the Federal Assistance Management Summary Report. (See also $ 600.112 with regard to use of this form as part of the award application.)

(e) Recipients shall not be required to submit more than the original and two copies of performance reports.

(1) Recipients shall immediately notify DOE of developments that have a significant impact on the award-supported activities. Also, notification shall be given in the case of problems, delays, or adverse conditions which materially impair the ability to meet

the objectives of the award. This notification shall include a statement of the action taken or contemplated, and any assistance needed to resolve the situation.

(8) DOE may make site visits, as needed.

(h) DOE shall comply with applicable clearance requirements of 5 CFR part 1320 when requesting performance data from recipients.

(i) Recipients may place performance reporting requirements on subawards consistent with the provisions of this section and shall require interim reporting in accordance with $ 600.151(1). 8600.152 Financial reporting.

(a) The following forms or such other forms as may be approved by OMB are authorized for obtaining financial information from recipients.

(1) SF-269 or SF-269A, Financial Status Report.

(i) Recipients shall use the SF-269 or SF-269A to report the status of funds for all nonconstruction projects or programs, except that DOE has the option of not requiring the SF-269 or SF-269A when the SF-270, Request for Advance or Reimbursement, or SF-272, Report of Federal Cash Transactions, is determined to provide adequate information to meet DOE needs. However, a final SF-269 or SF-269A shall be required at the completion of the project when the SF-270 is used only for advances.

(ii) The terms and conditions of award shall prescribe whether the report shall be on a cash or accrual basis. DOE may require accrual reporting only if such reporting is required by program statute or rule. If the award requires accrual information and the recipient's accounting records are not normally kept on the accrual basis, the recipient shall not be required to convert its accounting system, but shall develop such accrual information through best estimates based on an analysis of the documentation on hand.

(iii) DOE shall determine the frequency of the Financial Status Report for each project or program, considering the size and complexity of the particular project or program. However, the report shall not be required more frequently than quarterly or less frequently than annually. A final report

shall be required at the completion of (1) When additional information is the agreement.

needed to comply with legislative re(iv) DOE shall require recipients to quirements, DOE shall issue instrucsubmit the SF-269 or SF-269A (an origi- tions to require recipients to submit nal and no more than two copies) no such information under the "Remarks" later than 30 days after the end of each section of the reports. specified reporting period for quarterly (2) When DOE determines that a reand semi-annual reports, and 90 cal- cipient's accounting system does not endar days for annual and final reports. meet the standards in 8600.121, addiExtensions of reporting due dates may tional pertinent information to further be approved by the DOE upon request monitor awards may be obtained upon of the recipient.

written notice to the recipient until (2) SF-272, Report of Federal Cash such time as the system is brought up Transactions.

to standard. DOE, in obtaining this in(1) When funds are advanced, each re

formation, shall comply with report cipient shall submit the SF-272 and, clearance requirements of 6 CFR part when necessary, its continuation sheet,

1320. SF-272a. DOE will use this report to

(3) Contracting officers are encourmonitor cash advanced to recipients

aged to shade out any line item on any and to obtain disbursement informa

report if not necessary. tion for each agreement with the re

(4) DOE may accept the identical incipients.

formation from the recipients in ma(ii) Recipients shall forecast Federal

chine readable format or computer cash requirements in the "Remarks"

printouts or electronic outputs in lieu section of the report.

of prescribed formats. (iii) When practical and deemed nec

(5) Computer or electronic outputs essary, DOE may require recipients to

may be provided to recipients when report in the "Remarks" section the

that expedites or contributes to the acamount of cash advances received in

curacy of reporting. excess of three days. Recipients shall

8 600.153 Retention and access provide short narrative explanations of

quirements for records. actions taken to reduce the excess bal

(a) This section sets forth requireances.

ments for record retention and access (iv) Recipients shall be required to

to records for awards to recipients. submit not more than the original and

DOE shall not impose any other record two copies of the SF-272 15 calendar days following the end of each quarter.

retention or access requirements upon

recipients, unless such requirements DOE may require a monthly report

are established in program regulations. from those recipients receiving advances totaling $1 million or more per

(b) Financial records, supporting doc

uments, statistical records, and all year.

other records pertinent to an award (v) DOE may waive the requirement

shall be retained for a period of three for submission of the SF-272 for any

years from the date of submission of one of the following reasons:

the final expenditure report or, for (A) When monthly advances do not

awards that are renewed quarterly or exceed $25,000 per recipient, provided

annually, from the date of the submisthat such advances monitored

sion of the quarterly or annual finanthrough other forms contained in this

cial report, as authorized by DOE. The section;

only exceptions are the following: (B) If, in the contracting officer's (1) If any litigation, claim, or audit is opinion, the recipient's accounting started before the expiration of the 3controls are adequate to minimize ex- year period, the records shall be recessive Federal advances; or,

tained until all litigation, claims or (C) When electronic payment mecha- audit findings involving the records nisms provide adequate data.

have been resolved and final action (b) When DOE needs additional infor- taken. mation or more frequent reports, the (2) Records for real property and following shall be observed:

equipment acquired with Federal funds



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