These commercial and industrial facilities

e paid for from the O&M appropriations when eir cost is $25,000 or less, and from the MCON propriation when their cost is over $25,000.

BAKERIES, LAUNDRIES, AND DRY CLEANG FACILITIES may not be constructed, reaced, or reactivated, regardless of cost or ographic location, if an adequate commercial urce for the required services exists in the cinity. When reasonable investigation has monstrated that there is no commercial urce, or that such source (or sources) is inlequate to provide services, an activity may quest Bureau approval of such a project.

The request must be made by letter, accomnied by the necessary forms and justifications, ith a statement of nonavailability of service or ecific data on comparable costs of commercial ad Government service. The data submitted ust be sufficient to satisfy the reviewing auority that required services cannot be obtained om commercial sources at reasonable cost.

STORAGE AND WAREHOUSING FACILITIES ve a diversified scope. They may involve teration, modification, expansion, or the inallation of equipment or storage aids such as onveyors, bins, crating equipment, and so forth. Projects costing $15,000 or less may be proved by the Chief, BuDocks; those costing ver $15,000 must be requested by separate tter to the Bureau, accompanied by supporting rms and statements.

AIR CONDITIONING PROJECTS which qualy as to type of functional space and outside eather conditions must be submitted to the ureau accompanied by necessary forms and stifications, and by pertinent weather data applied by CNO. The Bureau then forwards ese requests to higher authority, for approval. ach request must also be accompanied by (1) ertification that no comparable space already r conditioned is available for the desired nction, and (2) a detailed cost estimate, inLuding all allied costs for necessary building odifications and new utilities.

PROJECTS OF OTHER BUREAUS

Not all the projects that a PWO will be conerned with fall within the procedural pattern

of the BuDocks projects just discussed. Various Navy activities to which a PWO may be assigned are under the management control of other bureaus. In the areas of major and minor construction, as defined in the earlier section, Terminology, there will be agreement, because these areas have been established by the Department of Defense, and are therefore observed by all the military departments. However, in the areas already referred to as lesser construction for purposes of improvement, and constructiontype projects not in excess of $25,000, the various bureaus may to some extent establish their own procedures for initiating these projects.

It may safely be said, however, that all Navy bureaus tend to follow substantially the same procedures. A brief discussion, therefore, of the procedures followed by BuPers and BuWeps should be sufficient here.

BuPers

Activities under the management control of BuPers, and commands having offices which are the financial responsibility of the Chief, BuPers, are kept provided with the current BuPers Instructions regarding the initiation of special projects. PWOS at such activities must keep informed of limitations imposed on the use of funds from the appropriations, Operations and Maintenance, and Military Construction, Navy.

At the time that this text was being prepared for the printer, the following general regulations were in effect at activities under the management control of BuPers, for construction-type projects estimated to cost not in excess of $25,000:

Allottees that hold an allotment from the appropriation, Operation and Maintenance, may locally approve repair and minor construction projects for which the estimated cost is under $5000. However, projects involving repair or minor construction for family housing, or for commercial or industrial type facilities, are excluded from this local authorization.

Allotment holders must include the request for the needed funds in their annual budget estimate. In most cases, they are prohibited from dividing an individual project into increments for which fund requests may be made in successive years; therefore, the required cost should be requested at one time, even though the project may take longer than one year to complete.

When construction-type projects are estimated to cost between $5000 and $25,000, the request must include a NavDocks Form 167, and must meet the same general criteria as established for these lesser construction projects under the management control of BuDocks. These criteria are listed in the earlier section, Criteria, in this chapter.

Minor construction projects for which the estimated cost is in excess of $5000, but which do not comply with the general criteria as established, should be submitted as part of the annual military construction and funding programs.

BuWeps

To the PWO who is on duty in an activity under the management control of BuWeps, the same caution is given as to the PWO at an activity under the management control of BuPers: Keep informed upon current instructions regarding the initiation of special projects, and the funding limitations imposed.

In general, the following regulations apply to lesser construction projects:

1. Projects that are strictly maintenance must be financed from O&M allotments.

2. Repairs estimated to cost $5000 or less are considered incidental to maintenance, and are accomplished in conjunction therewith.

3. Projects comprising repairs of a nonrecurring type, and estimated to cost in excess of $5000 (but less than $25,000) require prio approval of BuWeps, and are financed from O&M funds held by BuWeps.

Minor construction estimated to cost up to and including $2000 is financed from the O&M allotment of the activity concerned. At industrial or modified-industrial activities, this limitation is advanced to $5000, if it includes the cost of direct labor, material, and overhead.

Construction projects costing from $5000 up to and including $25,000 require prior BuWeps approval, and are financed from the O&M appropriations held by BuWeps.

The expenditure of public moneys, for ract work as well as for normal operating maintenance needs, is subject to statute to various administrative restrictions. se legal and regulatory factors are basic ne policies developed by government agencies the control and administration of approted funds and of the programs and projects ported by these funds. It is generally ficient for the Navy officer to know the ding policy, as developed by the Department Defense and the Department of the Navy, ensure that the discharge of his individual ponsibilities will be within the scope of relevant legislation.

The management responsibilities of the PWO therefore be connected chiefly with (1) decisions as to whether certain functions otted to the Public Works Department can best accomplished by contract rather than station forces, (2) the observance of DOD BuDocks policies and regulations, (3) adminration of contractual duties in accordance h established procedures, and (4) the suring that the Navy suffers no impairment public relations, and that the completed rk provides the Government with adequate rvice at a favorable price.

CONTRACTING POLICIES

Most contracts relating to public works or blic utilities are contracts for construction, for the alteration or repair of existing uctures; in a broad sense, this area also ludes the procurement of material, supplies, d services needed in connection with such nstruction, alteration, and/or repair.

Maintenance work, as distinct from repair, ay be performed by regularly employed station rces, or through the medium of contract.

DEPARTMENT OF DEFENSE POLICY

The Armed Services Procurement Act perits considerable latitude to the Department

of Defense in the placing of contracts for supplies and services. The guiding principles followed by DOD are (1) to ensure favorable price and adequate service to the Government, and (2) not to depend wholly upon contracts awarded large concerns, but to place a fair proportion of contracts for supplies and services with small business concerns.

Construction

The general policy of DOD is to employ contract forces for the performance of new construction, alteration, or repair that is not incident to maintenance, when such work is performed within the United States. However, it is permissible to use civil service personnel, military construction units, or military personnel for accomplishing the work, under certain specified conditions.

For example, civil service employees may be used to perform work in new construction, alterations, or repair if one or more of the following conditions exist:

1. The work is of a minor nature.

2. It is impracticable to prepare plans and specifications.

3. Obtaining security clearances for contractor personnel would cause unacceptable delay.

4. The work must be performed intermittently, in order to avoid disruption of other necessary operations.

The use of military construction units is permissible when essential facilities for personnel shelter and safety, and for property protection, must be provided during emergencies arising from fire, flood, pestilence, or other disasters.

The policy of DOD does not permit the use of enlisted personnel labor in competition with civilian labor; even lack of funds is not considered a valid reason, of itself, for using military personnel where civil service or contract forces should be employed. However, military personnel, as distinct from organized

military construction units, may be used in order to give them training and to maintain competence in recognized trade skills. The construction work upon which military personnel are used must meet one or more of the following conditions:

1. The construction or alteration is to be performed on welfare or recreational facilities for the use of the military.

2. The work consists of grounds maintenance around the facilities described in item 1.

3. The construction, alteration, maintenance, or repair is to be performed in an isolated location where it will be impracticable to obtain qualified civilian employees.

Maintenance

Regular routine recurring maintenance and upkeep work at most defense activities is performed by civil service employees. However, the force maintained should be sufficient only for the normal level of maintenance work, and not for the covering of peak loads.

Maintenance work may also be performed under contract when justified by existing conditions, of which the following are examples:

1. It is necessary to meet seasonal or other peak loads of maintenance work, and to avoid the accumulation of backlogs in the work performed by civilian labor.

2. The performance of specialized and occasional maintenance work is required; examples are: inspection and repair of boilers, and the inspection and regulation of automatic control systems.

3. The work in question may, for economic or other justifiable reasons, be better performed by contract than by civil service work force.

BUDOCKS POLICY

The policy adopted by BuDocks is to use a formal competitive-bid procedure in making contracts, even in those cases where the Armed Services Procurement Act permits or authorizes the use of other types of contract. In general, therefore, formally advertised fixedprice contracts are commonly used by the Bureau; negotiated contracts are employed only when permitted by law, and when it would. be impracticable, or disadvantageous to the

Government, to employ the competitive-bi procedure.

Construction

With respect to new construction, alteration and repair not incident to maintenance, contrac labor is used within the United States, in th same way as it is employed for this type o work under DOD policy. Only in exceptiona cases is such work performed by civil servic personnel. If civilian labor is used, ever effort must be made to accomplish result with station maintenance personnel, withou resorting to the hiring of extra personnel.

Maintenance

With respect to maintenance work, the Burea follows the identical policy as that set forth b DOD, in determining whether the maintenanc will be accomplished by contract or by civ service work forces.

BUDOCKS CONTRACTS

The CEC officer having responsibility fo any form of contract should be aware of th authority underlying the contract, and the admir istrative details involved.

It would be impossible in the space of or chapter to fully discuss the whole area contract admininstration. This chapter is in tended to cover only the salient points, and alert the CEC officer to the complexity this area, and the need for exact informatic when he is in an active duty status and mu administer contracts. At the same time, must be stressed that the PWO who has ar responsibility for contracts should not deper upon the general information in this tex but should follow the procedures set for in Contract Administration, NavDocks TP-Ad

Other publications and directives that wi be helpful in administering contracts are a follows:

Civil Works Contract Administration, Nai Docks TP-Ad-2.

Inspection of Construction Contracts, Na Docks TP-Ad-5.

Cost Plus a Fixed Fee (CPFF) Contract: Administration and Control, NavDocks TP-Ad

Contractor Labor Relations, NavDocks TP

-10.

Department of the Navy Security Manual Classified Information, OPNAV INSTRUCON 5510.1 (current edition).

AUTHORITY

Legal authority for Navy Procurement is sted in SecNav; but by directives and other structions, SecNav delegates to each Bureau ief the authority to procure supplies and rvices under the technical control of his reau. Each Bureau Chief is designated the ntracting Officer for his specific bureau, d is empowered to redelegate all or any rt of his authority.

The Bureau of Yards and Docks has author, unless otherwise provided, for design, ocurement, planning, development, construcon, and alteration for public works and public lities at all shore activities of the Naval stablishment; the Bureau also has authority

construction, transportation, and weightndling equipment not specifically assigned other organizational components of the Navy. Because of the scope of this responsibility, oblems that arise in connection with BuDocks ntracts may be more varied than the problems countered by other governmental agencies,

other bureaus and offices of the Navy, administering contracts under their cognince. It is frequently possible for other reaus and offices to enter into contracts the basis of an inspection of the finished aterials and/or items produced by commeral firms, and after a careful quality and ice comparison. In the case of a BuDocks nstruction contract, however, there frequently 1st be a continuous inspection of quality performance, to ensure a satisfactory end

oduct.

The Chief of the Bureau of Yards and Docks delegates certain contract authority to the rectors of Field Divisions, to Area Public orks Officers, and to District Public Works ficers. Other CEC officers ordered as Public orks Officers receive BuPers orders directing em to report by letter to the appropriate PWO, APWO or Director "for additional ity as OICC and/or ROICC of such BuDocks formal, short form, long form, or other ontracts as authorized or assigned." Officers

receiving such orders report to the cognizant DPWO, APWO, or Director, who indicates the type and extent of contractual authority to be assigned the reporting officer.

Whereas the Directors of Field Divisions, APWOS, and DPWOS report for management control directly to the Chief of BuDocks, the PWO to whom contracting authority has been delegated reports to the cognizant district area, or field division.

All officers who exercise delegated contractual authority must employ the following format in signing contracts or instruments that they execute:

J. Doe, CEC, USN (or, USNR as appropriate) For Chief, Bureau of Yards and Docks Contracting Officer