C. The Performance Evaluation Plan may, consistent with the contract, be revised unilaterally by the government at any time during the period of performance. Notification of such changes shall be provided to the contractor (Insert Number) calendar days prior to the start of the evaluation period to which the change will apply.

ARTICLE (Insert Article Number)

DISTRIBUTION OF AWARD FEE

A. The total amount of award fee available under this contract is assigned to the following evaluation periods in the following amounts:

Evaluation Period

Available Award Fee

B. In the event of contract termination, either in whole or in part, the amount of award fee available shall represent a pro rata distribution associated with evaluation period activities or events as determined by the Fee Determination Official.

§9-3.408 Letter contract.

(a) A letter contract may be entered into only when:

(1) The urgency of the requirement necessitates that the contractor be given a binding commitment so that work can commence immediately;

(2) Preparation of a definitive contract in sufficient time to meet agency requirements is not possible. The procurement file shall contain documentation to support the above determination; and

(3) Prior approval is obtained from the Head of the Procuring Activity or designee. (b) The Government's obligation shall be limited to reimbursement of the contractor's costs incurred under the terms of the letter contract through the termination date.

(c) Any proposed letter contract or amendment to a letter contract which would result in obligation of funds in an amount greater than 50 percent of the estimated cost of the procurement, or provides for a period of effectiveness of more than 120 days, must be approved by the DOE Senior Procurement Official, Headquarters, or a designee.

(d) Additional guidance regarding letter contracts may be found at 9-7.11 which prescribes clauses to be used in letter contracts and 9-16.5002-5 which contains a format for letter contracts.

(e) Letter contract awards should be reported to the Procurement and Assistance Data System as soon after award as possible. Should it be necessary to modify a letter contract prior to its definitization, such actions shall be handled and reported as formal modifications as they occur. The actual definitization of the letter contract, in turn, shall be accomplished by formal contract modification and be reported as such.

Subpart 9-3.6 Small Purchases

§9-3.600 Scope of subpart.

The policies and procedures for the purchase of supplies and nonpersonal services from commercial sources, when the anticipated amount involved in any one transaction does not exceed $10,000, shall be those prescribed in FPR Subpart 1-3.6 and consistent with Public Law 95–507 (Oct 24, 1978:92 STAT 1757).

89-3.601 Procurements under $10,000.

Procurements under $10,000 are reserved exclusively for small business if they are awarded through small purchase procedures, unless the Contracting Officer is unable to obtain two or more offers from small business concerns that are competitive with market prices, quality and delivery. Accordingly, every proposed procurement of supplies and services which has an anticipated value under $10,000, and which is to be accomplished under simplified purchase procedures, shall in all cases be reserved exclusively for small businesses except where the Contracting Officer determines there is no reasonable expectation that two or more small business concerns will submit acceptable offers at a reasonable price.

$9-3.603 Competition.

89-3.603-1 Solicitation. (Reserved)

§9-3.603–2 Data to support small purchases.

(a) Purchases in excess of $500.00 shall be supported by documentation, in the file, in accordance with FPR 1-3.603-2(b).

(b) Noncompetitive purchases in excess of $500.00 shall contain, in the file, a brief justification for noncompetitive procurement. The justification shall set forth enough facts and circumstances to clearly and convincingly establish that competition would not have been feasible or practicable.

(c) Contracting Officers shall include in the contract file, an appropriate notation when award of small purchases is made to other than a small business.

§9-3.604 Imprest Funds (Petty Cash) method.

$9-3.604-3 Agency responsibilities.

The procedures for the establishment and use by the DOE of imprest funds are set forth in appropriate Agency directives.

$9-3.605 Purchase Order Forms.

89-3.605-1 Standard Form 44, Purchase Order Invoice Voucher.

The use of Standard Form 44 is optional within the DOE. Contracting Officers shall be held accountable for books of Standard Form 44's issued to them. Heads of Procuring Activities shall issue detailed instructions, consistent with the provisions in Standard Form 44's and FPR 1– 3.605-1, providing for accountability and safeguarding of the forms when used. Contracting Officers, when using this form, will obtain any necessary obligation of funds and will limit procurement actions to items not otherwise restricted by law or regulation.

Subpart 9-3.7 Negotiated Overhead Rates

§9-3.705-50 Procedure for close-out in advance of final rates.

(a) Contracts may be closed out under the conditions described under (b) below. The use of this procedure involves the exercise of judgment based upon considerations such as the significance of the amount involved, previous experience, and apparent reasonableness of overhead data furnished by the contractor.

(b) This procedure may be applied to cost reimbursable and flexibly priced type contracts, where:

(1) Irrespective of the total value of the contract, the total amount billed and claimed, and as yet unsettled, does not exceed $500,000;

(2) Contract performance has been physically completed, required goods and/or services have been received and accepted by the Government, and all other appropriate administrative actions, except financial settlement, have been accomplished consistent with the contract terms and conditions;

(3) Final overhead rate settlement in accordance with FPR 1-3.705(a) will be delayed beyond the established time for contract close-out (§9-1.354);

(4) Indirect expense rates which are used for the purpose of expediting the closing of contracts, which are completed prior to the end of a cost accounting period, need not be those finally determined or negotiated for that period; but they shall be developed to represent a full cost accounting period;

(5) Indirect costs allocated to the contract can be established based upon other available information; and

(6) The contractor agrees to negotiate a settlement under this procedure and agrees that (i) the rates negotiated for the instant contract are final (but do not have the effect of setting a precedent), and (ii) no subsequent adjustments shall be made, or the effect of any quick closeout shall not affect any other contract for any over- or under-recovery disclosed at the time of final overhead rate settlement.

(c) Implementation of this procedure does not preclude the use of audit assistance. As a practical matter, a decision not to audit should be the exception. Upon receipt of the contractor's final voucher, the cognizant Government audit office should be provided a copy and requested to provide necessary audit services. The extent of these required services may vary. Under a Special Research Contract the Contracting Officer may determine not to audit, or may request an audit of direct costs only. Under a cost-type contract with a commercial firm, the audit statement may include direct and indirect costs and reflect qualifications relative to the indirect costs which require resolution before a final rate will be derived. In this latter case, the Contracting Officer may determine that the issue, for which there is an audit qualification (exception or unresolved item), is not significant, or that it can be negotiated, and proceed to reach agreement with the contractor. The memorandum of negotiation shall reflect what was done and supporting rationale shall be provided.

(d) When this procedure is used, the conditions of paragraph (b)(6) above must be included in the supplemental agreement reflecting the results of the final contract cost negotiations.

(e) In those instances where the magnitude of the cost differences precludes application of this procedure, the Contracting Officer, with other members of his team, e.g., pricing, audit, property, legal, and program staff, should develop an estimate of funds which may yet be required by the contract and take timely appropriate action to deobligate excess funds.