Code of Federal Regulations: Containing a Codification of Documents of ...

of Title 41 are devoted to implementing and supplementing material developed and issued by particular Federal agencies to govern their procurement activities, as well as regulations of general application to procurement agencies issued by other Federal regulatory agencies, such as the Department of Labor under the Walsh-Healey Public Contracts Act.

§ 1-1.006-2 Publication.

Federal Procurement Regulations are published (in Title 41) in the daily issue of the FEDERAL REGISTER, in cumulated form in the Code of Federal Regulations, and in separate loose-leaf volume form.

§ 1-1.006-3 Copies.

Copies of Federal Procurement Regulations in Federal Register and Code of Federal Regulations form may be purchased by Federal agencies and the public, at nominal cost, from the Superintendent of Documents, Government Printing Office, Washington, D.C. 20402. Copies of Federal Procurement Regulations in loose-leaf volume form may be obtained by Federal agencies from the General Services Administration, in a very limited quantity, and may be purchased by the public from the Superintendent of Documents.

§ 1-1.006-4 Coordination.

In the development of Federal Procurement Regulations, there will be solicited the views of interested Federal agencies and, where appropriate and feasible, the views of interested business and professional organizations. The Regulations will be coordinated with the Small Business Administration to assure adequate consideration of small business interests.

§ 1-1.007 Arrangement.

§ 1-1.007-1 General plan.

The general plan, numbering system, and nomenclature used in the Federal Procurement Regulations con

form with FEDERAL REGISTER standards approved for the FPR.

§ 1-1.007-2 Numbering.

The numbering system permits identification of every unit. The first digit represents the chapter number allocated to each agency, followed by a dash. This is followed by the part number which may be one or more digits followed by a decimal point. The numbers after the decimal points represent, respectively, the subpart, section (in two digits), and, after the dash, subsection, paragraph, subparagraph, and further inferior divisions. For example, this division is called (section) "§ 1-1.007-2," in which the first digit denotes the chapter, the second the part, the third the subpart, the fourth and fifth the section and the sixth the subsection.

Procurement

Regulations

§ 1-1.007-3 Citation. Federal will be cited in accordance with Federal Register standards approved for the FPR. Thus, this section, when referred to in divisions of the Federal Procurement Regulations, should be cited as "§ 1-1.007-3 of this chapter." When this section is referred to formally in official documents, such as briefs, it should be cited as "41 CFR 11.007-3." Any section of Federal Procurement Regulations may be informally identified, for purposes of brevity, as "FPR" followed by the section number, such as "FPR 1-1.007-3."

§ 1-1.008 Agency implementation.

legal

As portions of FPR material are prescribed, agencies shall publish in the FEDERAL REGISTER implementing regulations deemed necessary for business concerns, and others properly interested to understand basic and significant agency procurement policies and procedures which implement, supplement, or deviate from the FPR. Detailed instructions of interest primarily for internal agency guidance need not be published. Implementing regulations shall be prepared to conform with FPR style and arrangement.

§ 1-1.009 Deviation.

§ 1-1.009-1 Description.

As used in these Regulations, the term "deviation" includes any of the following actions:

(a) When prescribed contract clause is set forth verbatim, use of a contract clause covering the same subject matter which varies from that set forth.

(b) When a standard or other form is prescribed, use of any other form for the same purpose.

(d) The imposition of lesser or, where the regulation expressly prohibits greater limitations than are imposed upon the use of a contract clause, form procedure, type of contract, or upon any other procurement action, including but not limited to, the making or amendment of a contract, or actions taken in connection with the solicitation of bids or proposals, award, administration, or settlement of contracts.

(e) When a policy or procedure is prescribed, use of any inconsistent policy or procedure.

§ 1-1.009-2 Procedure.

In the interest of establishing and maintaining uniformity to the greatest extent feasible, deviations from the Federal Procurement Regulations shall be kept to a minimum and controlled as follows:

(a) The head of each agency exercising procurement authority shall prescribe a formal procedure for the control of deviations within the agency. A copy of the procedure shall be furnished to the General Services Administration.

(b) In individual cases, deviations may be authorized by the head of the agency or the officers designated by him for this purpose, in accordance with procedures established by the agency. In each instance the file shall disclose the nature of the deviation and the reasons for such special action.

basis jointly by the agency desiring the deviation and the General Services Administration unless, in the considered judgment of the agency and with due regard to the objective of uniformity, circumstances preclude such joint effort. In such case, GSA will be notified of the deviation.

(d) Except as otherwise authorized, when any deviation in a contract form provision is authorized, physical change may not be made in the printed form but shall be made by appropriate provision in the schedule, specifications, or continuation sheet, as provided in agency procedures.

§ 1-1.009-3 Limitation on deviations.

Section 1-1.009-2, above, does not apply to the provisions of Subpart 14.11, Procurement and Contracting for Government-wide Automated Data Processing Equipment, Software, Maintenance Services, and Supplies. Pursuant to 40 U.S.C. 759 (Section 111 of the Federal Property and Administrative Services Act of 1949, as amended; Public Law 89-306) the Administrator of General Services has authority to coordinate and provide for purchase, lease, and maintenance of equipment by Federal agencies as well as other matters relating to automated data management services. The exercise of procurement authority, including deviations, shall be accomplished as specified in Subpart 1-4.11 of the Federal Procurement Regulations (FPR). Procurement shall be accomplished as provided in Subpart 1-4.11. [41 FR 43538, Oct. 1, 1976]

§ 1-1.010 Interagency Procurement Policy Committee.

For the purpose of advising and assisting the General Services Administration in its Government-wide program for the development of uniform procurement policies and procedures, an Interagency Procurement Policy Committee, chaired by GSA, has been established. It is comprised of representatives of procurement and related Federal agencies designated by the heads of the agencies concerned.

[30 FR 9766, Aug. 5, 1965]

§ 1-1.011 Office of Federal Procurement Policy Act.

[40 FR 12077, Mar. 17, 1975]

§ 1-1.011-1 General.

(a) The Commission on Government Procurement urged the establishment by law of a central Office of Federal Procurement Policy in the Executive Office of the President, preferably in the Office of Management and Budget, with specialized competence to take the leadership in procurement policy and related matters. This was the first recommendation (A-1) of the Commission's Report because of its overall importance in achieving the improvements that the Commission proposed in the procurement process. The idea was also repeated in the Report's second recommendation (A-2).

(b) In response to these recommendations, the Office of Federal Procurement Policy was established by Pub. L. 93-400; i.e., the Office of Federal Procurement Policy Act (41 U.S.C. 401412). The Conference Report on the Act notes that the Commission on Government Procurement urged the creation of the Office by statute. The Act states that it is the policy of the Congress to promote economy, efficiency, and effectiveness in the procurement of property and services by and for the executive branch of the Federal Government.

[40 FR 12077, Mar. 17, 1975]

§ 1-1.011-2 Declaration of policy.

Section 2 of the Act provides as follows:

Sec. 2. It is declared to be the policy of Congress to promote economy, efficiency, and effectiveness in the procurement of property and services by and for the executive branch of the Federal Government by(1) Establishing policies, procedures, and practices which will require the Government to acquire property and services of the requisite quality and within the time needed at the lowest reasonable cost, utilizing competitive procurement methods to the maximum extent practicable;

(2) Improving the quality, efficiency, economy, and performance of Government procurement organizations and personnel;

(3) Avoiding or eliminating unnecessary overlapping or duplication of procurement and related activities;

(4) Avoiding or eliminating unnecessary or redundant requirements placed on contractor and Federal procurement officials;

(5) Identifying gaps, omissions, or inconsistencies in procurement laws, regulations, and directives and in other laws, regulations, and directives, relating to or affecting procurement;

(6) Achieving greater uniformity and simplicity, whenever appropriate, in procurement procedures;

(7) Coordinating procurement policies and programs of the several departments and agencies;

(8) Minimizing possible disruptive effects of Government procurement on particular industries, areas, or occupations;

(9) Improving understanding of Government procurement aws and policies within the Government and by organizations and individuals doing business with the Government;

(10) Promoting fair dealing and equitable relationships among the parties in Government contracting; and

(11) Otherwise promoting economy, efficiency, and effectiveness in Government procurement organizations and operations." [40 FR 12077, Mar. 17, 1975]

§ 1-1.204 Head of the agency.

"Head of the agency" means the Secretary, Attorney General, Postmaster General, Administrator, Governor, Chairman, or other chief official of an executive agency, unless otherwise indicated, including any assistant chief official of an executive agency and, for the military departments, the Under Secretary and any Assistant Secretary of the Departments of the Army, Navy, and Air Force.

§ 1-1.205 Procuring activity.

"Procuring activity" means the organizational element of an executive agency which has responsibility to contract for the procurement of personal property and nonpersonal services (including construction).

§ 1-1.206 Head of the procuring activity. "Head of the procuring activity" means that official, intermediate between the head of the agency and the contracting officer, who has the responsibility for supervision and direction of the procuring activity.

§ 1-1.207 Contracting officer.

"Contracting officer” means an official designated to enter into or administer contracts and make related determinations and findings.

§ 1-1.208 Contract.

"Contract" means establishment of a binding legal relation basically obligating the seller to furnish personal property or nonpersonal services (including construction) and the buyer to pay therefor. It includes all types of commitments which obligate the Government to an expenditure of funds and which, except as otherwise authorized, are in writing. In addition to a two-signature document, it includes all transactions resulting from acceptance of offers by awards or notices of awards; agreements and job orders or task letters issued thereunder; letter contracts; letters of intent; and orders, such as purchase orders, under which the contract becomes effective by written acceptance or performance. It also includes contract modifications.

tion, and notices of the exercise of an option.

§ 1-1.220 Procurement item.

"Procurement item" means any personal property or nonpersonal service, including construction, alteration, repair, or installation, which is the object of procurement.

Subpart 1-1.3-General Policies

§ 1-1.301 Methods of procurement. § 1-1.301-1 Competition.

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

§ 1-1.301-2 Formal advertising.

Contracts for property 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 chapter.

§ 1-1.301-3 Negotiation.

If the use of formal advertising is not feasible and practicable, purchases and contracts for property and services may be negotiated in accordance with the detailed requirements and procedures set forth in Part 3 of this chapter.

§ 1-1.302 Procurement sources. § 1-1.302-1 General.

(a) Before taking procurement action, in accordance with this chapter, agencies shall have complied with applicable laws and regulations relative to obtaining supplies or services from Government sources and from contracts of other Government agencies. These include excess and surplus stocks in the hands of any Government agency, Federal Supply Schedules, General Services Administration Stores Stock, Federal Supply Service Consolidated Purchase Programs, Fed

eral Prison Industries, Inc., and National Industries for the Blind.

(b) 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 offers ("bids" in the case of procurement by formal advertising, "proposals" in the case of procurement by negotiation) shall be solicited from all such qualified sources as are deemed necessary by the contracting officer to ensure such full and free competition as is consistent with the procurement of types of supplies and services necessary to meet the requirements of the agency concerned. Offers shall not knowingly be solicited on the basis of race, creed, color, sex, age, or national origin of prospective sources.

[29 FR 10104, July 24, 1964, as amended at 41 FR 38166, Sept. 9, 1976]

§ 1-1.302-2 Production and research and development pools.

(a) Description. A production or research and development pool is a group of concerns (1) which 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 or to effectuate the purposes of the Small Business Act; (2) which 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 (Small Business Pool). Pool participants are exempt from the "manufacturer or regular dealer" requirement of the WalshHealey Public Contracts Act. (See subpart 1-12.6.)

(b) General rule. Except as provided in this § 1-1.302-2, a pool shall be treated for purposes of Government procurement on exactly the same basis as any other prospective or actual contractor.

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