item. The relationship of the two items is displayed within the item reduction study by item standardization codes and, upon approval of the study, in the Federal catalog system data base at the Defense Logistics Services Center (DLSC).

§ 101-30.702 Determining item reduction potential.

Item reduction studies are required where there are large numbers of generally similar items which are subject to grouping and examination by item name, item name modifiers, or other characteristics such as sizes, grades, lengths, and materials. Before conducting a full scale item reduction study, the assignee activity shall determine whether sufficient item reduction potential appears to exist. Item reduction studies shall be undertaken only when the expected benefits outweigh the costs of performing the study.

§ 101-30.703 Program objectives.

The objective of the item reduction program is to reduce the varieties and sizes of similar items in the Government supply system by:

(a) Implementing a coordinated item reduction process among supply managers of using activities;

(b) Standardizing items of supply used by the Government;

(c) Ensuring that all participants in item reduction studies give priority to controlling and completing item reduction studies;

(d) Promptly recording decisions in the Federal catalog system data base; and

(e) Phasing out of the Government supply system those items identified in item reduction studies as not authorized for procurement to reduce cataloging, supply management, and warehousing costs; then following through to eliminate the items from agency catalog systems.

[43 FR 4999, Feb. 7, 1978, as amended at 46 FR 35646, July 10, 1981]

§ 101-30.704 Agency responsibilities.

§ 101-30.704-1 General Services Administration.

(a) The General Services Administration (GSA) will develop or authorize

other Government agencies to develop item reduction studies on items within the Federal supply classification (FSC) classes for which GSA is the integrated material manager.

(b) GSA, as the civil agency coordinating activity for item reduction studies originated by both GSA and DOD, will:

(1) Distribute proposed item reduction studies, as appropriate, to all civil agencies recorded as users of the item in the DLSC data base. This distribution will be made by coordination letters in which a time frame for a response will be specified. GSA will interpret each nonresponse to a proposed study to mean that the activity concurs with the study. Extensions, when requested by an agency, normally will be granted by GSA.

(2) Respond to questions concerning proposed item reduction studies.

(3) Prepare a consolidated civil agency position paper (including comments and nonconcurrences) relative to each study upon receipt of user responses.

(4) Incorporate civil agency positions into proposed item reduction studies prepared by GSA or forward a consolidated civil agency position paper to appropriate preparing activities.

(5) Resolve controversies arising from proposed item reduction study recommendations.

(6) Review approved item reduction studies to ensure that concurrences and nonconcurrences from all civil agencies are accurately reflected.

(7) Register into the Federal catalog system, data base approved item reduction decisions concerning items within the FSC classes which are managed by GSA.

(8) Implement decisions documented in approved item reduction studies within the GSA supply system.

(9) Distribute approved item reduction studies to all recorded civil agency users. All civil agencies (except direct submitters of catalog data to DLSC) will also be forwarded covering letters which will request specific information relative to implementing the studies; i.e., inventory levels of items coded ISC 3. Activities not responding within the time frame specified (60 calendar days) will receive a

followup notice before being automatically withdrawn as users of all items coded as not authorized for procurement.

[43 FR 4999, Feb. 7, 1978, as amended at 46 FR 35646, July 10, 1981]

§ 101-30.704-2 Other agencies.

Civil agencies participating in the Federal Catalog System shall:

(a) Conduct a review of the items included in the proposed study by the preparing activity with respect to the ISC to determine the impact the assigned code may have on the agency's supply system.

(b) Prepare and submit written comments on the proposed study to GSA within the time frame specified in the GSA coordination letter, concur with the study, or nonconcur on specific proposed standardization relationships. If comments cannot be prepared and submitted within the time frame specified, an extension shall be requested from GSA.

(c) Review the approved item reduction study and notify GSA in writing if the activity is to be retained or deleted as a user of any item coded as "not authorized for procurement." This notification will allow the preparer of the study to complete coordination of the study and update the DLSC Total Item Record (TIR).

(d) Implement within the agency those item reduction decisions resulting from the study.

(e) Request, as appropriate, the retention of a nonstandard item in their supply system by forwarding a letter to General Services Administration (FRIS), Washington, DC 20406. The request shall include but not be limited to the following information:

(1) The specific end-use of end-item application;

(2) A technical explanation comparing the physical and functional characteristics of the nonstandard item with each authorized-for-procurement item;

(3) The duration of the requirement for the item or how long the end-item will be retained in the agency's supply system; and

(4) Economic considerations from a technical standpoint. GSA will evalu

Subpart 101-31.1 [Reserved]

Subpart 101-31.2-Use of Private Inspection, Testing, and Grading Services

101-31.200 Scope of subpart.

101-31.201 Definition of private organizations.

101-31.202 Testing services.

101-31.203 Inspection and grading services. 101-31.204 Arranging for inspection, testing, or grading by private organizations. 101-31.205 Referral to Comptroller General. AUTHORITY: Sec. 205(c), 63 Stat. 390; 40 U.S.C. 486(c).

SOURCE: 29 FR 13257, Sept. 24, 1964, unless otherwise noted.

§ 101-31.000 Scope of part.

This part prescribes policy, guidelines, and procedures related to inspection, testing, and grading of supplies or services.

Subpart 101-31.1 [Reserved]

Subpart 101-31.2-Use of Private Inspection, Testing, and Grading Services

§ 101-31.200 Scope of subpart.

(a) This subpart prescribes policies and procedures governing use by executive agencies of private organizations in discharging their responsibility as set forth in §1-14.102 of this title to inspect or arrange for the inspection of purchased supplies and services. For the type and extent of inspection required, see §1-14.101(b) of this title.

(b) Where an agency has explicit statutory authority to procure services of this nature, it may do so without adhering to the requirements set forth in this subpart.

§ 101-31.201 Definition of private organizations.

As used in this subpart, private organizations includes all facilities devoted to rendering inspection, testing, and grading services which are not a part of an agency of the Federal Government.

§ 101-31.202 Testing services.

Testing services required to determine compliance of purchased supplies or services with contract requirements

may be procured from private organizations if the situation meets all of the following conditions:

(a) It has been determined by an executive agency that its personnel or another Federal agency cannot perform the required testing as efficiently or economically as a qualified private organization;

(b) The testing services required are of a technical nature involving the application of scientific principles and the use of test equipment, gages, or special apparatus; and

(c) The testing may be performed without direct Government supervision.

§ 101-31.203 Inspection and grading services.

(a) Inspection or grading, limited to an examination or careful scrutiny to determine from outward appearances or mechanical operation whether supplies or services offered by suppliers comply with contract requirements, is a service in which personal judgment is of major importance and as such shall be performed exclusively by regular employees of the Government under Government supervision.

(b) Technical inspections or grading, the results of which are more dependent on the application of scientific principles or specialized techniques than the element of personal judgment, shall also be performed by Government employees under Government supervision except that a private organization may be retained to render the technical inspection or grading service when an executive agency determines that one of the following conditions exists:

(1) The technical inspection or grading services required are of a specialized nature, and the agency is unable to employ the personnel qualified to perform the services properly or to locate another Federal agency capable of providing the services; or

(2) The inspection or grading results issued by a private organization are essential to verify the acceptance or rejection of a special commodity.

§ 101-31.204 Arranging for inspection, testing, or grading by private organizations.

(a) Inspection, testing, or grading services to be procured from a private organization shall be obtained in accordance with the agency's procurement policies and procedures subject to the following conditions:

(1) The Government agency shall determine that the organization to be retained is qualified to perform expertly the required inspection, testing, or grading services and is professionally responsible;

(2) Remuneration for performance of services shall be based on accomplishing units of work such as submission of reports on inspection, test, or grading results and shall not be based on time required to perform the services; and

(3) The organization shall be permitted to select personnel for performing the services without agency direction. An agency should specify the type of qualifications personnel performing the services should possess.

(b) When a private organization has been retained by an agency to perform technical inspection, testing, or grading services, information developed and reports issued by the organization must be evaluated and considered by the Government official or employee responsible for determining acceptability of the supplies or services.

utility supplier, and facilities for the supply of such services.

(b) Other terms which are defined in the Federal Property and Administrative Services Act of 1949, 63 Stat. 377, as amended, hereinafter sometimes referred to as the "Property Act," shall have the meanings given to them in such Act.

§ 101-33.002 Applicability.

The provisions of this part 101-33 apply to all Federal agencies to the extent specified in the Property Act, or other law, except in those instances where specific exemptions are approved by GSA, and except as hereinafter provided:

(a) The "Statement of Areas of Understanding between the Department of Defense and the General Services Administration in the Matter of Procurement of Utility Services," as amended (15 FR 8227 and 22 FR 871), shall govern the applicability of this part 101-33 to the Department of Defense.

(b) The provisions of this part 101-33 do not apply to the production, distribution, or sale of utility services by a Federal Agency.

(c) GSA will, upon request, furnish the services provided for in this part 101-33 to any other Federal agency, mixed-ownership corporation, the District of Columbia, the Senate, the House of Representatives, and the Architect of the Capitol and any activity under his direction.

(d) The provisions of this part 101-33 do not apply to the procurement of natural gas from source suppliers; i.e., suppliers other than a local public utility. Procurement of natural gas from source suppliers is covered in §10126.602-5.

[29 FR 13258, Sept. 24, 1964. Redesignated at 43 FR 27191, June 23, 1978, and amended at 57 FR 21895, May 26, 1992]

§ 101-33.003 Submission of information.

All information required under this part 101-33, except where otherwise specified, shall be addressed to the General Services Administration, Public Buildings Service, Public Utilities Division (PPU), Washington, DC 20405. [57 FR 21896, May 26, 1992]

Subpart 101-33.1-Utilization and Conservation of Utility Services

§ 101-33.101 Surveys and recommendations.

GSA, in coordination with the agency involved, will from time to time survey executive agency requirements for, and utilization and conservation of, utility services and facilities and, with due regard to the program activities of the agency involved, will make such recommendations for improvements as may be deemed advantageous to the Government in terms of economy, efficiency, or service. Executive agencies shall carry out such recommendations.

§ 101-33.102 Advice and assistance.

GSA, upon request of the agency involved, will provide advice and assistance to executive agencies regarding utilization and conservation of utility services and facilities.

Subpart

101-33.2-Negotiation

and Representation Involving Utility Services

§ 101–33.201 Negotiations with utility suppliers.

GSA, in behalf of executive agencies as utility consumers, will conduct negotiations with utility suppliers; and, where prior negotiation has failed or is not feasible and where circumstances warrant, will institute such formal or informal action, as may be deemed advisable, before Federal and State regulatory bodies to contest the level, structure, or applicability of rates or service terms of utility suppliers.

§ 101-33.202 Proceedings before regulatory bodies.

Pursuant to the provisions of section 201(a)(4) of the Property Act, executive agencies shall refer to GSA for consideration, all complaints and petitions involving public utility rates or services proposed to be brought before Federal and State regulatory bodies. Executive agencies seeking intervention authority shall submit their requests to GSA in writing. GSA will determine whether it will handle the proceedings, in cooperation with other interested