594.204-594.204-11 Subpart F-Procurement of Printing and 594.601 Printing and related supplies. AUTHORITY: §§ 594.000 to 594.601 issued under sec. 3012, 70A Stat. 157; 10 U. 8. C. 3012. Interpret or apply secs. 2801-2314, 70A Stat. 127-133; 10 U. 8. C. 2301-2314. SOURCE: 594.000 to 594.601, appear at 20 F. R. 3506, May 19, 1955, except as otherwise noted. § 594.000 Scope of part. This part sets forth the policy with respect to (a) procurement under Federal Supply Schedule Contracts, and (b) procurement of printing and related supplies. [21 F. R. 4285, June 19, 1956] SUBPART A-PROCUREMENT UNDER FEDERAL SUPPLY SCHEDULE CONTRACTS § 594.101 Federal supply schedule contracts. (a) "Delivery Orders" will be used to effect purchases under contracts of the Federal Supply Service. (b) Delivery orders for supplies listed in the Federal Supply Schedule will be addressed and forwarded direct to the Contractor indicated and shall contain sufficient data to enable prompt identification (by disbursing and auditing agencies) of the correct listing in the proper Federal Supply Schedule. These data will include contract number, item number, and where applicable, supplement, region, or zone number. (c) Each such delivery order will indicate the name of the Finance Officer who will make the payments. (d) Each such delivery order will indicate on its face that prices, if shown, will be subject to the basic contract of the Federal Supply Service. 1 Revoked subsequent to revision. (e) In the case of service station deliveries of gasoline and lubricating oil under Federal Supply Schedule (Classes 7 and 14) by means of an identification card, the delivery ticket prepared by the service station and signed by identification card holder at the time of delivery constitutes a "Delivery Order." When such a delivery ticket is used as a "delivery order", the provisions of paragraphs (c) and (d) of this section do not apply. § 594.103 Mandatory use of Federal Supply Schedules. § 594.103-1 Exceptions to mandatory use (a) Emergency procurement. When purchase is made from the open market of supplies or services listed in Federal Supply Schedules and designated as mandatory on the Department of Defense, the voucher submitted to the Disbursing Officer for payment shall contain a finding that the purchase was justified because the supplies or services could not be furnished under Federal Supply Schedule contracts at the time such supplies or services were required. Such finding shall be final and conclusive. In each instance, the finding will set forth the specific reasons why the time element made the emergency purchase necessary. The determination that the supplier could not furnish such supplies or services by the time required can be made only if the suppliers in the applicable schedules have been given the opportunity to so state. SUBPART B- [RESERVED] CODIFICATION: Regulations contained in §§ 594.204 and 594.204-1 (formerly Subpart B-Procurement From Federal Supply Service Stores Depots) were revoked, 21 F. R. 4285, June 19, 1956. SUBPART F-PROCUREMENT OF PRINTING AND RELATED SUPPLIES § 594.601 Printing and related supplies. Procedures applicable to the procurement of printing and related supplies are as follows: (a) Printing. (AR 310-5, pertaining to printing, binding, and duplicating, and SR 310-5-1, pertaining to printing and production of military publications.) (b) Envelopes. (AR 310-5 and Class 53, Federal Supply schedules.) Procurement procedure pertaining to mailing envelopes and related provisions applying to use of penalty markings are published in SR 340-10-20 (Mailing enve 595.1501 595.1502 595.1503 595.1503-1 595.1503-2 General. Definitions. Procedures. Contract clauses. Evaluation of bids and proposals. AUTHORITY NOTE: The citation of authority for Part 595 is changed to read: AUTHORITY: §§ 595.000 to 595.1503-2 issued under sec. 3012, 70A Stat. 157; 10 U. S. C. 3012. Interpret or apply secs. 2301-2314, 70A Stat. 127-133; 10 U. S. C. 2301-2314. SUBPART B-CANADIAN PURCHASES SOURCE: §§ 595.201 to 595.201-53, set forth in this Pocket Supplement, appear at 21 F. R. 10012, Dec. 18, 1956, except as otherwise noted. § 595.201 Purchases from Canadian suppliers. The purchase of supples or services from sources in the Dominion of Canada will be made with and administered through the Canadian Commercial Corporation through its Washington Office, except that: (a) Under circumstances of public exigency as described in § 3.202-2 of this title, Procuring Activities are authorized to negotiate direct with suppliers or contractors domiciled in the Dominion of 1 Added subsequent to revision. Canada without reference to the Canadian Commercial Corporation. (b) Subject to applicable restrictions of §§ 592.205 and 592.211 of this subchapter, procuring activities are authorized to negotiate direct for research services to be rendered by any university, college, or educational institution located in the Dominion of Canada without reference to the Canadian Commercial Corporation or other Canadian clearing agency. (c) When the Canadian Commercial Corporation requests that the procurement be made direct with Canadian suppliers or contractors. § 595.201-50 Secretarial determination of exeception. The Assistant Secretary of the Army (Logistics) determined, on July 10, 1956, pursuant to the authority contained in the act of March 3, 1933, as amended, popularly called the "Buy American Act" (47 Stat. 1520; 63 Stat. 1024; 41 U. S. C. 10a-d), that it is in the public interest for the Department of the Army to procure military supplies and equipment in Canada since one or more of the following benefits to the United States will accrue therefrom: (a) Greater standarization of military equipment. (b) Wider dispersal of hemispheric munitions-production facilities. (c) Establishment of a supplemental source of supply for the United States and NATO countries. (d) Increase in defense cooperation between the United States and Canada. (e) Large savings to the United States in the case of many procurements. (f) Conservation of domestic facilities, manpower and raw materials. (g) Procurement at an earlier date than would be possible if the item were procured from United States sources. § 595.201-51 Delegation of authority. Contracting Officers are authorized to procure military supplies and equipment from Canadian sources without regard to the restrictions of the "Buy American Act," provided, the cost to the Government, including duty (whether or not a duty-free certificate may be issued) and transportation to destination, of any military supplies and equipment procured from Canadian sources is less than the cost would be if procured from a source in the United States. § 595.201-52 Reference in contractual documents. A reference to the Secretarial Determination of Exception under the "Buy American Act," referred to in § 595.201-50, will be placed on the voucher covering payment for each Canadian purchase under this authority, and a similar reference will be placed in the contract file. § 595.201-53 Letter agreement with Department of Defense Production (Canada). A letter agreement between the Department of Defense Production (Canada) and the Departments of the Army, Navy, and Air Force, dated July 27, 1956 sets forth policies and procedures applicable to contracts for supplies and services, placed by the Military Departments with the Canadian Commercial Corporation on and after October 1, 1956. The agreement follows: JULY 27, 1956. DEAR SIRS: The agreement between the Department of Defense Production (Canada) and the United States Departments of the Army, Navy, and Air Force (hereinafter referred to as the "Military Departments"), evidenced by the letter of February 18, 1952, from the Deputy Minister of Defense Production (Canada), the terms of which were accepted by the Military Departments at Washington on February 26, 1952 (which agreement was amended as of January 13, 1953, December 21, 1955, and June 21, 1956), laid down policies and provided procedures with respect to all contracts for supplies and services placed with the Canadian Commercial Corporation by the Military Departments, up to and including September 30, 1956. Since experience in the administration of contracts placed by the Military Departments with the Canadian Commercial Corporation (hereinafter referred to as the "Corporation") under the agreement indicates that it is desirable to revise certain policies and procedures set forth in said agreement with respect to all contracts entered into on or after October 1, 1956, it is therefore agreed, as follows: 1. This agreement applies to all contracts placed, on or after October 1, 1956, by any of the Military Departments with the Corporation. It shall remain in force from year to year until terminated by mutual consent; however, it can be terminated on the 31st day of December or the 30th day of June in any year by either party provided that six months notice of termination has been given in writing. In addition, this agreement provides for certain reciprocal arrangements facilitating procurement by each of the parties in the country of the other. 2. (a) The Corporation agrees that, if the aggregate profit realized by first-tier subcontractors under contracts covered by this agreement, excluding those subcontracts mentioned in subparagraph (b) below, exceeds 10% of the cost (as determined in accordance with Costing Memorandum DDP-31 of the Department of Defense Production (Canada)), the amount of such excess will be refunded by the Corporation to the Milltary Departments. For this purpose, the aggregate profit shall be computed by the Corporation on all first-tier subcontracts, excluding those mentioned in subparagraph (b) below, taken collectively and not individually. The Corporation shall, in computing such profit, conduct the audits called for in paragraph 5 and such other audits or verifications of costs as it may deem necessary, and shall render to the Military Departments its certificate as to such profit. (b) Subcontracts placed by the Corporation as a result of formal competive bidding, and subcontracts placed by the Corporation with Canadian Arsenals Limited or any other department or agency of the Canadian Government, shall not be included in computing the aggregate profit referred to in subparagraph (a) above. (c) If, as a result of an audit made by direction of the Minister of Defense Production (Canada) under the powers conferred upon him by Section 21 of the Defense Production Act (Canada), it is disclosed that any individual subcontractor of any tier, including any subcontractor referred to in subparagraphs (a) and (b) above, has made a profit on a subcontract, under a contract covered by this agreement, in excess of an amount which the Minister considers to be fair and reasonable, the Minister shall take appropriate action to recover such excess, and the amount of any such recovery with respect to that subcontract shall be refunded to the Military Departments. and (d) Contracts for communication transportation services, and the supply of power, water, gas, and other utilities shall be excepted from the provisions of subparagraphs (a) and (c) above, provided the rates or charges for such services or utilities are fixed by public regulatory bodies; and provided further the Military Departments are accorded any special rates that may be available to the Canadian Government with respect to such contracts. (e) The Canadian Government, its Departments and Agencies, including but not limited to the Corporation and Canadian Arsenals Limited, a Crown Company wholly owned by the Canadian Government, shall not be entitled to any profit on any contract or contracts covered by this agreement. Any profits which may be realized shall be refunded to the Military Departments except as hereinafter provided: Before refunding profits realized from the following sources: (1) Net profits of the Canadian Government, its Departments and Agencies, as defined above, with respect to contracts and subcontracts covered by this agreement. (ii) Excess profits referred to in paragraph (a) above, and (iii) Renegotiation recoveries from subcontracts of any tier under contracts covered by this agreement, which recoveries the Military Departments would otherwise be entitled to receive in accordance with the provisions of subparagraphs (a) and (c) above; the Corporation shall be entitled to deduct any losses it may sustain with respect to contracts covered by this agreement. (f) Interim adjustments and refunds under this paragraph 2 shall be made at such time or times as may be mutually agreed upon but at least once a year as of June 30th. Such interim adjustments shall apply only to completed contracts. The final adjustment and refund shall be made as soon as practicable after the expiration of this agreement. (g) The profit and loss provisions of this paragraph 2 shall not apply to contracts awarded to the Corporation as the result of formal competitive bidding (initiated by Invitation for Bids). 3. All contracts placed by the Military Departments with the Corporation, except those placed as the result of formal competitive bidding, shall provide for prices or cost reimbursement, as the case may be, in terms of Canadian currency, and for payment to be made in such currency. Therefore, quotations and invoices shall be submitted by the Corporation to the Military Departments in terms of Canadian currency, and such cost data, vouchers, etc., as the contracts require shall also be submitted in terms of Canadian currency. All formal competitive bids shall be submitted by the Corporation in United States currency and contracts placed as a result of such formal competitive bidding shall not be subject to adjustment for losses or gains resulting from fluctuations in exchange rates. 4. The Military Departments and the Corporation shall avoid, to the extent consistent with the declared policies of the Military Departments and the Canadian Government, the making of any surcharges covering administration costs with respect to contracts placed with the Corporation by any of the Military Departments and contracts placed by the Military Departments in the United States for the Canadian Government. 5. To the extent that contracts placed with the Corporation by the Military Departments provide for the audit of costs and profits, such audit will be made without charge to the Military Departments by the Cost Inspection and Audit Division of the Treasury of Canada in accordance with Costing Memorandum Form DDP-31 of the Department of Defense Production, Canada. 6. The Canadian Government shall arrange for inspection personnel of the Department of National Defense (Canada) to act on behalf of the Military Departments with respect to contracts placed by the Military Departments with the Corporation and with respect to subcontracts placed in Canada by United States contractors which are performing contracts for the Military Departments, and for the use of inspection facilities of the Department of National Defence (Canada) for such purposes, such personnel and facilities to be provided without costs to the Military Departments. The Military Departments shall provide and make no charge for inspection services and inspection facilities in connection with contracts placed in the United States by the Military Departments for the Canadian Government. The Department of National Defence (Canada) or any Military Department may provide liaison with the other's inspection personnel in connection with the foregoing. It is understood that either the Department of National Defense (Canada) or any Military Department may in appropriate cases arrange for inspection by its own inspection organization in the other's country. 7. Because of the varying arrangements made by the Canadian Government and the Military Departments in furnishing Government-owned facilities (including buildings and machine tools) to contractors, it is recognized that the matter of inclusion in contract prices of charges, through amortization or otherwise, for use of such facilities will be determined in the negotiation of individual contracts. However, there shall be avoided, to the extent consistent with the policies of the Canadian Government and the Military Departments, any such charges for use of Government-furnished facilities. 8. (a) The Corporation agrees that the prices set out in fixed-price type contracts covered by this agreement will not include any taxes with respect to first-tier subcontracts; no shall such prices include customs duties to the extent refundable in accordance with Canadian law, paid upon the import of any materials, parts, or components incorporated or to be incorporated in the supplies, with respect to first-tier subcontracts. (b) The Corporation agrees that under cost-reinbursement type contracts the Corporation shall, to the extent practicable with respect to first-tier subcontracts, exclude from its claims all taxes and to the extent refundable in accordance with Canadian law, customs duties, paid upon the import of any materials, parts, or components, incorporated or to be incorporated in the supplies and that any amounts included in such claims representing such taxes and duties shall be refunded or credited to the Military Departments. (c) The Corporation agrees that to the extent that such taxes and duties can be reasonably and economically identified it will use its best endeavours to cause such taxes and duties to be excluded from all subcontracts below the first-tier and if found to be included to be recovered and credited to the Military Departments. 9. The Corporation recognizes that existing law of the United States prohibits the use of the cost-plus-a-percentage-of-cost system of contracting. 10. Each contract covered by this agreement shall be deemed to include the provisions required by (1) Public Law 245, 82d Congress of the United States (65 Stat. 700; 41 U. S. C. 153 (c)) and (ii) Section 719 of Public Law 458, 83d Congress of the United States (68 Stat. 353) or similar provisions that may be required by subsequent legislation. 11. If the above correctly sets forth our mutual understanding, please indicate your acceptance by signing below. Assistant Secretary of the Nany (Material). [8] DUDLEY C. SHARP, Dudley C. Sharp, Assistant Secretary of the Air [22 F. R. 1814, Mar. 20, 1957] SUBPART C-DUTY AND CUSTOMS CODIFICATION: Former Subpart E-Duty and Customs and § 595.502, the only section thereunder, were redesignated "Subpart CDuty and Customs" and "§ 595.302 Emergency purchases of war material abroad", respectively, 21 F. R. 10012, Dec. 18, 1956. SUBPART O-ADMINISTRATION OF THE BUY AMERICAN ACT-PURCHASES OF PETROLEUM PRODUCTS [ADDED] SOURCE: §§ 595.1500 to 595.1503-1 appear at 23 F. R. 7382, Sept. 23, 1958. § 595.1500 Scope of subpart. This subpart sets forth procedures applicable to the purchase of petroleum products for use in the United States, in implementation of Executive Order 10761, dated March 27, 1958 (3 CFR, 1958 Supp.,) (23 F. R. 2067, March 28, 1958). § 595.1501 General. The President, by Executive Order 10761, requested the executive departments and agencies to adopt certain procedures in making purchases of crude petroleum and petroleum products, and also provided that Executive Order 10582, December 17, 1954, which prescribes uniform procedures for certain determinations under the Buy American Act, shall not be applicable to purchases of crude petroleum and petroleum products. Pending the revision of Part 6 of this title and this part, to incorporate the procedures set out in Executive Order 10761, the procedures set forth in this subpart shall be followed in the administration of the Buy American Act with respect to purchases of petroleum products. To the extent that Part 6 of this title and the preceding subparts of this part, are inconsistent herewith, the provisions of this subpart shall govern. § 595.1502 Definitions. As used in this subpart, the following terms have the meanings set forth below: (a) "Domestic petroleum product" means any product refined in the United States entirely from crude petroleum of wholly domestic origin. (b) "Complying petroleum product" means any product refined in the United States in whole or in part from crude petroleum of foreign origin, all of which has been, or will be imported by a firm which, during the period of contract performance and for the three months preceding the month in which a bid is submitted to the Department of the Army, has imported crude petroleum in compliance with the Voluntary Oil Import Program, or which is certified by the Administrator, Voluntary Oil Import Program, as being in compliance under that Program. (c) "Non-complying petroleum product" means any product refined in the United States in whole or in part from crude petroleum of foreign origin, other than "complying petroleum product." (d) "Foreign refined petroleum product" means any petroleum product refined outside the United States. (e) "United States" means the United States and any place subject to the jurisdiction of the United Sates (§ 6.101 (c) of this title). $595.1503 Procedures. $595.1503-1 Contract clauses. Every contract entered into by the Department of the Army for the purchase in the United States of petroleum products shall contain the following clause in lieu of the clause prescribed in § 6.104-5 of this title: Buy American Act and Executive Order No. 10761 (a) For the purpose of this clause: |