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advantage, contractors that develop or draft specifications, requirements, statements of work, invitations for bids and/or requests for proposals shall be excluded from competing for such procurements. Awards shall be made to the bidder or offeror whose bid or offer is responsive to the solicitation and is most advantageous to the recipient, price, quality and other factors considered. Solicitations shall clearly set forth all requirements that the bidder or offeror shall fulfill in order for the bid or offer to be evaluated by the recipient. Any and all bids or offers may be rejected when it is in the recipient's interest to do so.

$ 600.144 Procurement procedures.

(a) All recipients shall establish written procurement procedures. These procedures shall provide for, at a minimum, that paragraphs (a)(1), (2) and (3) of this section apply.

(1) Recipients avoid purchasing unnecessary items.

(2) Where appropriate, an analysis is made of lease and purchase alternatives to determine which would be the most economical and practical procurement.

(3) Solicitations for goods and services provide for all of the following.

(1) A clear and accurate description of the technical requirements for the material, product or service to be procured. In competitive procurements, such a description shall not contain features which unduly restrict competition.

(ii) Requirements which the bidder) offeror must fulfill and all other factors to be used in evaluating bids or proposals.

(iii) A description, whenever practicable, of technical requirements in terms of functions to be performed or performance required, including the range of acceptable characteristics or minimum acceptable standards.

(iv) The specific features of "brand name or equal" descriptions that bidders are required to meet when such items are included in the solicitation.

(v) The acceptance, to the extent practicable and economically feasible, of products and services dimensioned in the metric system of measurement.

(vi) Preference, to the extent practicable and economically feasible, for products and services that conserve natural resources and protect the environment and are energy efficient.

(b) Positive efforts shall be made by recipients to utilize small businesses, minority-owned firms, and women's business enterprises, whenever possible. Recipients of DOE awards shall take all of the following steps to further this goal.

(1) Ensure that small businesses, minority-owned firms, and women's business enterprises are used to the fullest extent practicable.

(2) Make information on forthcoming opportunities available and arrange time frames for purchases and contracts to encourage and facilitate participation by small businesses, minority-owned firms, and women's business enterprises.

(3) Consider in the contract process whether firms competing for larger contracts intend to subcontract with small businesses, minority-owned firms, and women's business enterprises.

(4) Encourage contracting with consortiums of small businesses, minority wned firms and women's business enterprises when a contract is too large for one of these firms to handle individually.

(5) Use the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Department of Commerce's Minority Business Development Agency in the solicitation and utilization of small businesses, minority-owned firms and women's business enterprises.

(c) The type of procuring instruments used (e.g., fixed price contracts, cost reimbursable contracts, purchase orders, and incentive contracts) shall be determined by the recipient but shall be appropriate for the particular procurement and for promoting the best interest of the program or project involved. The "cost-plus-a-percentage-ofcost" or "percentage of construction cost" methods of contracting shall not be used.

(d) Contracts shall be made only with responsible contractors who possess the potential ability to perform successfully under the terms and conditions 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

223, “Surety Companies Doing Business with the United States."

(d) All negotiated contracts (except those for less than the small purchase threshold) awarded by recipients shall include a provision to the effect that the recipient, DOE, the Comptroller General of the United States, or any of their duly authorized representatives, shall have access to any books, documents, papers and records of the contractor which are directly pertinent to a specific program for the purpose of making audits, examinations, excerpts and transcriptions.

(e) All contracts, including small purchases, awarded by recipients and their contractors shall contain the procurement provisions of Appendix A to this subpart, as applicable. 8 600.149 Resource Conservation and

Recovery Act (RCRA). Recipients' procurements shall comply with applicable requirements of RCRA, as described at $600.116 of this subpart.

Reports and Records

suitable provisions for termination by the recipient, including the manner by which termination shall be effected and the basis for settlement. In addition, such contracts shall describe conditions under which the contract may be terminated for default as well as conditions where the contract may be terminated because of circumstances beyond the control of the contractor.

(c) Except as otherwise required by statute, an award that requires the contracting (or subcontracting) for construction or facility improvements shall provide for the recipient to follow its own requirements relating to bid guarantees, performance bonds, and payment bonds unless the construction contract or subcontract exceeds $100,000. For those contracts or subcontracts exceeding $100,000, DOE may accept the bonding policy and requirements of the recipient, provided the DOE has made a determination that the Federal Government's interest is adequately protected. If such a determination has not been made, the minimum requirements shall be as follows.

(1) A bid guarantee from each bidder equivalent to five percent of the bid price. The "bid guarantee" shall consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder shall, upon acceptance of his bid, execute such contractual documents as may be required within the time specified.

(2) A performance bond on the part of the contractor for 100 percent of the contract price. A "performance bond" is one executed in connection with a contract to secure fulfillment of all the contractor's obligations under such contract.

(3) A payment bond on the part of the contractor for 100 percent of the contract price. A "payment bond" is one executed in connection with a contract to assure payment as required by statute of all persons supplying labor and material in the execution of the work provided for in the contract.

(4) Where bonds are required in the situations described herein, the bonds shall be obtained from companies holding certificates of authority as acceptable sureties pursuant to 31 CFR part

8600.150 Purpose of reports and

records. Sections 600.151 through 600.153 set forth the procedures for monitoring and reporting on the recipient's financial and program performance and the necessary standard reporting forms. They also set forth record retention requirements.

$ 600.151 Monitoring and reporting

program performance. (a) Recipients are responsible for managing and monitoring each project, program, subaward, function or activity supported by the award. Recipients shall monitor subawards to ensure subrecipients have met the audit requirements as delineated in $600.126.

(b) The terms and conditions of the award will prescribe the frequency with which the performance reports shall be submitted. Except as provided in paragraph (1) of this section, performance reports shall not be required more frequently than quarterly or less frequently than annually. Annual reports shall be due 90 calendar days after the award year; quarterly or semi-annual

reports shall be due 30 days after the the objectives of the award. This notifireporting period. DOE may require an- cation shall include a statement of the nual reports before the anniversary action taken or contemplated, and any dates of multiple year awards in lieu of assistance needed to resolve the situathese requirements. The final perform- tion. ance reports are due 90 calendar days (8) DOE may make site visits, as after the expiration or termination of needed. the award.

(h) DOE shall comply with applicable (c) If inappropriate, a final technical clearance requirements of 5 CFR part or performance report shall not be re- 1320 when requesting performance data quired after completion of the project. from recipients.

(d) When required, performance re (i) Recipients may place performance ports shall generally contain, for each reporting requirements on subawards award, brief information on each of the consistent with the provisions of this following.

section and shall require interim re(1) A comparison of actual accom porting in accordance with $ 600.151(1). plishments with the goals and objectives established for the period, the $600.152 Financial reporting. findings of the investigator, or both. (a) The following forms or such other Whenever appropriate and the output forms as may be approved by OMB are of programs or projects can be readily authorized for obtaining financial inquantified, such quantitative data

formation from recipients. should be related to cost data for com (1) SF-269 or SF-269A, Financial Staputation of unit costs.

tus Report. (2) Reasons why established goals

(i) Recipients shall use the SF-269 or were not met, if appropriate.

SF-269A to report the status of funds (3) Other pertinent information in for all nonconstruction projects or procluding, when appropriate, analysis grams, except that DOE has the option and explanation of cost overruns or of not requiring the SF-269 or SF-269A high unit costs.

when the SF-270, Request for Advance DOE may specify in the award that the or Reimbursement, or SF-272, Report recipient provide this information on of Federal Cash Transactions, is deterthe Federal Assistance Program mined to provide adequate information Project Status Report (DOE F 4600.6), to meet DOE needs. However, a final the technical reporting formats, or the SF-269 or SF-269A shall be required at Federal Assistance Management Sum- the completion of the project when the mary Report. DOE may require that SF-270 is used only for advances. the Federal Assistance Management (ii) The terms and conditions of Summary Report be used as a perform award shall prescribe whether the reance report only when such use is au port shall be on a cash or accrual basis. thorized by program rule or the need DOE may require accrual reporting for this form is explained in the solici- only if such reporting is required by tation. The requirements of this sec program statute or rule. If the award tion concerning reporting frequency requires accrual information and the and deadlines shall apply to the Fed recipient's accounting records are not eral Assistance Management Summary normally kept on the accrual basis, the Report. (See also $600.112 with regard recipient shall not be required to conto use of this form as part of the award vert its accounting system, but shall application.)

develop such accrual information (e) Recipients shall not be required to through best estimates based on an submit more than the original and two analysis of the documentation on hand. copies of performance reports.

(iii) DOE shall determine the fre(1) Recipients shall immediately no quency of the Financial Status Report tify DOE of developments that have a for each project or program, considersignificant impact on the award-sup- ing the size and complexity of the parported activities. Also, notification ticular project or program. However, shall be given in the case of problems, the report shall not be required more delays, or adverse conditions which frequently than quarterly or less frematerially impair the ability to meet quently 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 Transactions.

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

formation, shall comply with report cipient shall submit the SF-272 and clearance requirements of 5 CFR part

1320. when necessary, its continuation sheet, 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

may be provided to recipients when essary, DOE may require recipients to

that expedites or contributes to the acreport in the "Remarks" section the amount of cash advances received in

curacy of reporting. excess of three days. Recipients shall 8 600.163 Retention and access reprovide 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

retention or access requirements upon days following the end of each quarter.

recipients, unless such requirements DOE may require a monthly report

are established in program regulations. from those recipients receiving ad

(b) Financial records, supporting docvances totaling $1 million or more per

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 are 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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