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ence. The Contracting Officer in co- assign each proposal a score on the ordination with assisted and supported basis of the factors for award. The by technical, audit, and other person- SEB shall identify each proposal as nel as needed, making up the Govern- being either acceptable or unacceptament's negotiation team. It is the re- ble. A proposal should be considered sponsibility of the Contracting Officer unacceptable if its deficiencies cannot in coordination with the Office of be corrected through written and oral General Counsel to ensure the integri- discussions to the point of having a ty of the negotiation process and to reasonable chance of being selected see to it that suitable mutual under

award. Predetermined cutoff standings between the parties have scores designed for determining the been reached. After negotiation is threshold level of acceptability of procompleted, the Contracting Officer

posals shall not be employed. will effect appropriate coordinations (d) After the initial technical evaluaand execute the contract with a nego

tion, the Contracting Officer and the tiation memorandum prepared in con

SEB will evaluate the business portion formance with 41 CFR 1-3.811 and

of each proposal. Office requirements.

(e) Unless the SEB is prepared to $ 24-3.805-3 Procurements expected to

recommend pursuant to 41 CFR 1exceed $250,000.

3.805-1(a)(5) that award be made on

basis of the most favorable initial proOn those procurements where the

posal, the SEB shall establish a comexpected dollar amount will exceed

petitive range based upon the evalua$250,000 the following will apply:

tion of all the factors for award in(a) Selection of the source or sources

cluding cost or price. for final contract negotiations shall be

(f) The SEB shall conduct written or made by the Contracting Officer, pur

oral discussions with all proposers suant to his responsibilities under

within the competitive range as outHUDPR 24-1.453, based upon the find

lined in HUDPR 24-3.805-2(f). ings and recommendations of the Source Selection Official (SSO) who is

(g) After the close of discussions, rethe head of the funding office or his

ceipt of any revisions to proposals and designee. To assist the SSO in evaluat

any final adjustments to proposal ing proposals and making recommen

scores, the SEB shall prepare a writdations for selection, the SSO shall

ten report of its findings and recomdesignate a Source Evaluation Board

mendations and submit it to the SSO (SEB) composed of a chairman, voting

for action. The report shall summarize members, and advisors.

all significant SEB actions in the so(b) After the deadline for receipt of

licitation and evaluation phases and offers, the Contracting Officer will

include: forward five (5) copies of the technical (1) Statement of findings. Each acportion of each proposal to the SEB

ceptable proposal shall be discussed in chairman or his designee, who shall be

descending order of scores/rankings. responsible for their custody through

The statement shall identify the out the evaluation process. The busi

strengths and weaknesses of each proness portions of each proposal will be posal and any appropriate information retained by the Contracting Officer

for the consideration of the SSO. pending initial technical evaluation by (2) Recommendations. The SEB the SEB. The Contracting Officer shall provide recommendations to the shall inform the SEB of proposals SSO as to selection in terms of: (i) A which contain major business deficien- single source; (ii) a number of equal cies, including out of line cost propos- sources; (iii) a number of sources in deals, which discussion with the offeror scending order; or (iv) options to be could not reasonably be expected to considered in arriving at the final decicure.

sion. In making its recommendation (c) The SEB will evaluate each pro- the SEB shall consider the requireposal in strict conformance with the ments set forth in HUDPR 24-3.805factors for award of the RFP, and will 2(h).

Subpart 24-4.1-Automatic Data Processing Equipment and Services

§ 24-4.101 Clearance procedures.

No IFB, RFP, RFQ or amendment to an existing contract, when related in whole or in part to the procurement of ADP equipment or services, shall be issued until GSA approval is obtained pursuant to the FPMR.

(h) Based upon the SEB report and his review of the matter, the SSO will recommend a source or sources and document ther basis for his recommendation. The SSO will communicate his findings and recommendation in a memorandum to the Contracting Officer. The memorandum will request the Contracting Officer to negotiate with the recommended source(s), and may include specific instructions and an alternate source or sources in the event the conduct of final negotiations so warrant.

(i) After receipt of the SSO's recommendation, the Contracting Officer shall select a source, based upon the findings and recommendations of the SSO for final negotiations in accordance with HUDPR 24-3.805(2)(h). Final negotiations and award will be effected in accordance with HUDPR 24-3.805-2(i).

Subpart 24-4.10—Architect-Engineer


§ 24-4.1000 Scope of subpart.

This subpart sets forth the policy and procedures to be followed for the establishment of architect-engineer evaluation boards and sets forth policy and procedures for the deliberations of the Board.

Subpart 24-3.51-Protests Against


$ 24-3.5101 Negotiated procurement pro

tests. Protests against awards of negotiated procurement shall be processed in accordance with HUDPR 24-2.407-8.


$ 24-4.1004-1 Establishment of Architect

Engineer evaluation boards. Each architect-engineer evaluation board, whether permanent or ad hoc, shall consist of at least five (5) voting members who are Federal employees from the appropriate program area or from Federal offices outside the program area as appropriate.

One member of each board shall be appointed Chairman. Five (5) alternate members who are Federal employees shall also be appointed, but at any given time the majority of voting members shall be from the program area concerned. The members of a permanent board shall be appointed for a period of two (2) years. Appointment shall be made by the following authorities with copies of appointment memoranda furnished to the appropriate procuring activity:

(a) Primary Organizational Heads for Boards appointed at the Headquarters level;

(b) Head of the Procuring Activity for Boards appointed at the Field Office level.

Subpart 24–4.1-Automatic Data Processing

Equipment and Services

Sec. 24-4.101 Clearance procedures.

Subpart 24-4.10—Architect-Engineer Services

24-4.1000 Scope of subpart. 24-4.1004-1 Establishment of Architect-En

gineer evaluation boards. 24-4.1004-2 Conflict of interest. 24-4.1004-3 Privity of information. 24-4.1004-4 Maintenance and furnishing of

source lists. 24-4.1004-5 Selection policy. 24-4.1004-6 Selection procedures.

AUTHORITY: Sec. 7(d), Dept. of HUD Act (42 U.S.C. 3535(d)).

SOURCE: 41 FR 55811, Dec. 22, 1976, unless otherwise noted.

$ 24-4.1004-2 Conflict of interest.

Each board member, whether voting or nonvoting, shall familiarize himself with those provisions of Title 24, Housing and Housing Credit, Subtitle A, Part O, of the Code of Federal Reg

ulations regarding conflicts of interest. If at any time during the selection process a Board member encounters a situation with one or more of the firms being considered that might be or might appear to be a conflict of interest, he will disqualify himself and call it to the attention of the Chairman for resolution and proper action. The Chairman will refer the matter to the Office of General Counsel.

tion considerations include but are not limited to:

(a) Demonstrated specialized experience of the firm and key personnel in the area of expertise needed for the procurement.

(b) Capability and capacity of the firm to accomplish the work in the required period of time.

(c) Past experience of the firm with respect to performance of Federal contracts.

(d) Geographical location of the firm having working offices, capacity, and personnel to respond to the requirements of the procurement if geographical location is an important factor to the procurement.

§ 24-4.1004-3 Privity of information.

The Evaluation Board is to be insulated from outside pressures to the extent practical. No person having knowledge of the activities of the Board shall divulge information concerning the deliberations of the Board to any other persons not having a need to know such information.

$ 24-4.1004-4 Maintenance and furnishing

of source lists. The appropriate office utilizing architect-engineer services shall maintain a source list consisting of the current “U.S. Government Architect-Engineer Questionnaire," Standard Form 254 (SF-254), submitted by firms as defined in 41 CFR 1-4.1002 interested in performing work in the program area. For each procurement or group of related procurements the Board shall prepare from its source list a preselection list of ten (10) firms considered likely to be capable of meeting the requirements of the procurement. Every SF-254 shall be read and evaluated by at least two (2) Board members to determine which of the firms on the source list should be included on the preselection list. When a list of ten (10) firms is not available, fewer firms may be considered. SF-254's may be obtained from the General Services Administration.

§ 24-4.1004-6 Selection procedures.

The following procedures shall be used in the selection of architect-engineering firms for all engineering contracts:

(a) For each requirement or group of requirements intended to result in a single contract, the Board shall review the qualifications and performance data for each of the firms on the preselection list, in accordance with the selection policy, including input from the program staff and shall select a minimum of three firms determined to have the highest qualifications. The procuring activity shall then mail letters of inquiry to those highest qualified firms regarding capability to perform the work, anticipated concepts, and the relative utility of alternate methods of approach.

(b) The replies to these letters shall be evaluated by the Board with each response being evaluated by at least three Board members. The SF-254's from the responding firms may also be reevaluated as necessary by three or more Board members. The firms queried will be reranked as necessary in accordance with the Board's evaluation.

(c) After the reranking, a Request for Contract Services shall be forwarded to the procuring activity. The authorities identified in HUDPR 244.1004-1 or his designee shall be the Source Selection Official. The SSO shall indicate the order of qualification, including capability, of the selected firms.

$ 24-4.1004–5 Selection policy.

The selection of architect-engineering firms for professional service contracts shall be accomplished in accordance with the procedures set forth in this section. Such selection shall be based upon competitive evaluation procedures to determine which firm(s) is/are the most qualified. Qualifica

30-110 0-78-8

(d) The procuring activity shall send a Request for Proposal to the firm ranked highest on the list and if the proposal is acceptable shall intiate negotiations with that firm. If such negotiations are unsuccessful, contract negotiations shall then be commenced with the second most qualified firm. Failing accord with the second firm, contract negotiations shall be commenced with the third firm.

(e) All selection and negotiation proceedings shall be documented. All screening and evaluation sheets and meeting records are a part of the official record of the Board.


Sec. 24-7.000 Scope of part.

Subpart 24-7.5—Special Clauses

24-7.5007 Letter of credit. 24-7.5008 Negotiated overhead rates. 24-7.5009 Indirect costs (actual). 24-7.5010 Indirect costs (ceiling). 24-7.5011 Consideration and payment

(cost-sharing). 24-7.5012 Reproduction of reports. 24-7.5013 Warranty. 24-7.5014 Coordination of Federal report

ing requirements. 24-7.5015 Ocean freight shipments-use of

American-flag vessels-reports. 24-7.5016 Lead based paint proscription.

AUTHORITY: Sec. 7(d), Housing and Urban Development Act (42 U.S.C. 3535(d)).

SOURCE: 41 FR 55812, Dec. 22, 1976, unless otherwise noted.

LETTER OF CREDIT a. The advance funds will be provided in accordance with the letter of credit procedure set forth in HUD Handbook 1900.4B or Handbook 1900.23 as appropriate. The Contractor shall use these procedures to obtain advance funds for allowable costs under this contract.

b. In accordance with those procedures, a Letter of Credit will be issued in an amount determined by the Contracting Officer based on the needs of the Contractor. Subsequent amendments to the Letter of Credit will be on the basis of an amendment to the contract. In no instance will advance funds provided by the letter of credit procedure exceed the amount of the contract as from time to time amended, less the amount of withholding provided therein.

c. The funds provided by the letter of credit procedure shall be solely for the purposes of making payments for items of allowable cost as defined in this contract, or to reimburse the Contractor for such items of allowable cost and for making payments for such other costs as the Contracting Officer otherwise has authority to approve, and does approve in writing.

d. The Contractor may draw on the Letter of Credit using payment vouchers as follows:

1. Payment vouchers may be executed only for the purpose of obtaining funds in the minimum amount necessary for the following purposes:

(a) Making payments for items of allowable costs as defined in this contract; (b) reimbursing the Contractor for such items of allowable costs; and (c) for making pay. ments for such other costs as the Contracting Officer otherwise has authority to approve, and does approve in writing; and the funds so obtained may be used only for such purposes.

2. Payment vouchers drawn shall be timed to be in accordance with the actual cash requirements of the Contractor in carrying out the purpose of the contract.

e. The Contractor may at any time repay all or any part of the funds or credit obtained under the Letter of Credit. When so requested in writing by the Contracting Of. ficer, the Contractor shall repay to the Gov. ernment such part of the balance of advance payments as shall, in the opinion of the Contracting Officer, be in excess of the Contractor's current needs.

f. If upon completion or termination of this contract all amounts obtained by the Letter of Credit have not been fully liquidated by authorized charges under the contract, the balance thereof shall be deducted from any sums otherwise due or which may be due to the Contractor from the Government, and any excess funds shall be repaid

$ 24-7.000 Scope of part.

This part sets forth special contract clauses which are in addition to clauses set forth in 41 CFR Part 1-7 for use in connection with the procurement of personal property and nonpersonal services (including construction).

Subpart 24-7.5—Special Clauses

$ 24-7.5007 Letter of credit.

When advance payments are author. ized and a letter of credit is to be used, insert the following clause:

$ 24-7.5008 Negotiated overhead rates,

When it has been determined pursuant to HUDPR 24-3.702(a) that negotiated overhead rates should be used, insert the following clause:

by the Contractor to the Government upon demand.

g. Notwithstanding any other provisions of this contract, the Contractor shall not transfer, pledge, or otherwise assign this contract or any interest therein, or any claim arising thereunder, to any party or parties, bank, trust company, or other financing institution.

h. Any and all advance payments made under this contract shall be secured by a lien in favor of the Government, paramount to all other liens, upon the supplies or other things covered by this contract and on all material and other property acquired for or allocated to the performance of this contract, except to the extent that the Government by virtue of any other provision of this contract, or otherwise, shall have valid title to such supplies, materials, or other property as against other creditors of the Contractor. The Contractor shall identify by marking or segregation all property which is subject to a lien in favor of the Government by virtue of any provision of this contract in such a way as to indicate that it is subject to such lien and that it has been acquired for or allocated to the performance of this contract. If for any reason such supplies, materials, or other property are not identified by marking or segregation, the Government shall be deemed to have a lien to the extent of the Government's interest under this contract on any mass of property with which such supplies, materials, or other property are commmingled. The Contractor shall maintain adequate accounting control over such property on his books and records. If at any time during the progress of the work on the contract it becomes necessary to deliver any item or items and materials upon which the Government has a lien as aforesaid to a third person, the Contractor shall notify such third person of the lien herein provided and shall obtain from such third person a receipt, in duplicate, acknowledging, inter alia, the existence of such lien. A copy of each receipt shall be delivered by the Contractor to the Contracing Officer. If this contract is terminated in whole or in part and the Contractor is authorized to sell or retain termination inventory acquired for or allocated to this contract, such sale or retention shall be made only if approved by the Contracting Officer, which approval shall constitute a release of the Government's lien hereunder to the extent that such termination inventory is sold or retained, and to the extent that the proceeds of the sale, or the credit allowed for such retention on the Contractor's termination claim, is applied in reduction of advance payments then outstanding hereunder.

NEGOTIATED OVERHEAD RATES (a) Notwithstanding the provisions of the clause of this contract entitled “Allowable Cost, Fixed Fee, and Payment,” the allowable indirect costs under this contract shall be obtained by applying negotiated overhead rates to bases agreed upon by the parties, as specified below.

(b) The Contractor, as soon as possible but not later than ninety (90) days after the expiration of his fiscal year, or such other period as may be specified in the contract, shall submit to the Contracting Officer, with a copy to the cognizant audit activity, a proposed final overhead rate or rates for that period based on the Contractor's actual cost experience during that period, together with supporting cost data. Negotiation of overhead rates by the Contractor and the Contracting Officer shall be undertaken as promptly as practicable after receipt of the Contractor's proposal.

(c) Allowability of costs and acceptability of cost allocation methods shall be determined in accordance with applicable Part 115 of Federal Procurement Regulations (41 CFR Part 1-15) as in effect on the date of this contract.

(d) The results of each negotiation shall be set forth in a modification to this contract, which shall specify (1) the agreed final rates, (2) the bases to which the rates apply, and (3) the periods for which rates apply.

(e) Pending establishment of final over. head rates for any period, the Contractor shall be reimbursed either at negotiated provisional rates as provided in the contract, or at billing rates acceptable to the Contracting Officer, subject to appropriate adjustment when the final rates for that period are established. To prevent substantial over or under payment, and to apply either retroactively or prospectively: (1) Provisional rates may, at the request of either party, be revised by mutual agreement, and (2) billing rates may be adjusted at any time by the Contracting Officer. Any such revision of negotiated provisional rates provided in the contract shall be set forth in a modification to this contract.

(f) Any failure by the parties to agree on any final rates under this clause shall be considered a dispute concerning a question of fact for decision by the Contracting Officer within the meaning of the “Disputes" clause of this contract.

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