To the fullest extent practicable, agencies shall use excess personal property as the first source of supply in fulfilling their requirements and requirements of their cost-type contractors. § 1-5.303 Implementation of policy.

(a) In giving effect to the policy stated in § 1-5.302, agencies should provide that:

(1) Personnel authorized to approve actions for procurement or other acquisition of personal property will make positive efforts to obtain excess before such actions are undertaken.

(2) Personnel mentioned in (1) of this 1-5.303 (a) will receive available information concerning excess personal property from appropriate General Services Administration regional offices.

(b) Prior to procurement or other acquisition of property, careful and receptive consideration shall be given to utilization of known usable excess personal property of a similar type, including the possibility of substitution or adaptation of excess items not identical with requested items, whether the excess items are unused, rehabilitated, or in used condition, and regardless of whether the intended acquisition would be from General Services Administration stores stock or from other sources of supply.

§ 1-5.304 Assistance by General Services Administration in filling requirements from excess.

(a) Information regarding the availability of excess personal property may be obtained through the following:

(1) Personal contact with the General Services Administration or the holding installation.

(2) Review of excess personal property catalogs and bulletins circularized by the General Services Administration.

(3) Submission of personal property requirements to the regional offices of the General Services Administration. (GSA Form 1539, Request for Excess Personal Property, is available for this purpose.)

(4) Examination and inspection of reports and samples of excess personal property assembled for this purpose in General Services Administration regional offices.

(b) The General Services Administration will assist agencies in meeting their requirements for property of the types excepted from reporting as excess by § 101-43.312 of the Federal Property Management Regulations. Federal agencies requiring such property should contact the appropriate GSA regional office. GSA area utilization officers, stationed at military points throughout the United States which generate the largest amounts of excess, are screening and offering for Government use nonreported excess personal property as it becomes available for transfer.

[29 F.R. 10187, July 24, 1964, as amended at 30 F.R. 16111, Dec. 28, 1965]

Subpart 1-5.4-[Reserved]

Subpart 1-5.5-Interagency Motor Pool Vehicles and Related Services Available Government Contractors

to

(a) Authorization to cost-reimbursement type prime contractors and their cost-reimbursement type subcontractors to obtain interagency motor pool vehicles and related services shall be given only under the following conditions:

(1) The agency determines that provision of motor pool vehicles and related services to its contractor will accomplish agency contractual objectives and will effect demonstrable economies;

(2) The contractor or subcontractor shall procure automobile liability insurance covering bodily injury and property damage, with such limits of liability as may be required or approved by the agency, protecting the contractor, subcontractor, and the Government against third party claims arising from the ownership, maintenance, or use of a motor pool vehicle;

(3) Periodic checks will be made by the agency to assure that authorized contractors and subcontractors are using vehicles and related services exclusively under cost-reimbursement type contracts and subcontracts; and

(4) The contractor or subcontractor will assume the cost or expense of any use of motor pool vehicles and services not related to the performance of the contract without the right of reimbursement from the Government for such cost or expense.

(b) Authorizations shall be in writing and shall cite the number of the costreimbursement type contract or subcontract; specify any applicable limitations on the authority, including the period of eligibility; and any other pertinent information.

(c) Agencies authorizing contractor use of interagency motor pool vehicles and related services are subject to the responsibilities and liabilities provided in

Subpart 101-39.8 of Part 101-39 of this title.

§ 1-5.503

Means of obtaining service.

(a) Requests for service by authorized contractors and subcontractors shall be submitted in writing to the appropriate General Services Administration regional office, Transportation and Communications Service, Motor Equipment Division. Such requests shall include the following information:

(1) Two copies of agency authorization to obtain vehicles or related services from General Services Administration;

(2) Number of vehicles and/or related services required and period(s) of use;

(3) A list of the names of employees of the authorized contractor who are eligible to request vehicles and related services;

(4) A listing of the make, model, and serial number of contractor-owned or -leased equipment authorized to be serviced; and

(5) Billing instructions and address.

(b) Requests involving unusual quantities of vehicles should be submitted as far in advance as possible to facilitate making vehicles available.

Use of interagency motor pool vehicles, their service and maintenance, and the use of related services by cost-reimbursement type contractors and subcontractors shall be in accordance with Part 10139 of this title and with instructions in the Operators Packet which is furnished with each interagency motor pool vehicle. "Official use" of interagency motor pool vehicles and related services by authorized Government contractors and subcontractors is defined in § 101-39.602 of this title.

Subpart 1-5.6-[Reserved] Subpart 1-5.7— [Reserved] Subpart 1-5.8-[Reserved] Subpart 1-5.9-Use of GSA Supply Sources by Contractors Performing Cost-Reimbursement Type Con

tracts

SOURCE: The provisions of this Subpart 1-5.9 appear at 32 F.R. 15674, Nov. 14, 1967. unless otherwise noted.

§ 1-5.900 Scope of subpart.

This subpart prescribes policies and procedures for Federal agencies regard

ing the use of General Services Administration (GSA) supply sources (i.e., items available through Federal Supply Schedule contracts and from GSA stores stock) by contractors in performing certain Government contracts. The term "contractor" as used in this subpart, unless the context otherwise requires, includes subcontractors who qualify in accordance with the provisions of § 15.902(b). (With respect to the use by grantees of these and other GSA sources of supply and services, see GSA Bulletin FPMR A-17, dated November 7, 1967.)

(a) It is the policy of the General Services Administration to make GSA supply sources available to all eligible users in order to promote greater economy and efficiency in Government procurement programs.

(b) To the extent provided in this subpart, the policy is applicable to contractors working wholly or substantially on cost-reimbursement contracts.

§ 1-5.902 Authorization to contractors. (a) When an agency determines that it is in the best interest of the Government to do so, the agency shall authorize in writing its prime contractors and, where appropriate, their subcontractors, to utilize GSA supply sources in performing Government contracts. Authorizations to subcontractors shall be issued through, and subject to the approval of, the prime contractor. Each authorization (prime or sub) shall be supported by a written finding of the facts which are the basis for the determination to issue the authorization. Such findings shall be retained in agency contract files. (b) Except as provided in § 101-26.407 of this title regarding the procurement of security cabinets by fixed-price contractors, such authorization may be issued only where an agency deems it advisable for a contractor to utilize GSA supply sources in performing:

(1) Government cost-reimbursement contracts; and

(2) Other types of negotiated contracts where the agency determines that a substantial dollar portion of the contractor's contracts are of a Government cost-reimbursement nature.

(c) Subject to the criteria set forth in paragraph (b) of this section, the agency may include in its written authorizations such limitations or conditions as it deems

necessary in the public interest. For example, it may choose to:

(1) Authorize purchases from GSA supply sources of any overhead supplies, but no production supplies; or

(2) Limit any authorization requirement to use GSA sources to a specific dollar amount, leaving the contractor free to make smaller purchases from any source he chooses; or

(3) Restrict the authorization to certain plants or facilities or to specific contracts; or

(4) Provide that title vest in or be retained by the Government when determined to be in the best interest of the Government.

The terms and conditions which the agency may impose are not limited to the foregoing examples.

(d) In determining whether to issue such an authorization, consideration should be given, but not necessarily limited to, the following factors:

(1) The administrative cost of placing orders with Government sources, and the program impact of delay factors, if

any.

(2) Lower cost of purchased items. (3) Suitability of items available through GSA supply sources.

(4) Delivery factors such as cost and time.

(5) Recommendations of prime contractors.

(e) Each authorization issued under this subpart shall:

(1) Cite the number of the contract or contracts involved.

(2) Specify that the Federal Standard Requisitioning and Issue Procedure (FEDSTRIP) shall be utilized when ordering GSA stock items, as required by Subpart 101-26.2 of this title, and include an address and billing code identifying the ordering contractor. Such codes may be obtained from the Federal Supply Service of the appropriate GSA regional office.

(3) Whenever practicable, contain a limit upon the period of effectiveness of the authorization.

(f) Copies of each authorization shall be forwarded to the General Services Administration, Federal Supply Service, Office of Supply Management-FF, Washington, D.C. 20405, and to the Federal Supply Service of the GSA regional office serving the geographical area in which the facilities of the authorized contractor are located.

(g) The authorizing agency shall promptly notify the offices named in paragraph (f) of this section whenever an authorization is withdrawn prior to the expiration of the established period of effectiveness or upon termination of a contract for which an authorization has been granted without limitation. The notification shall be in writing and shall: (1) Cite the number of the contract involved.

(2) Contain the effective date of withdrawal of the authorization which, in the case of the termination of a contract for which an indefinite authorization was previously granted, shall be not later than the date of the termination of the contract.

(h) The authorizing agency shall be responsible for insuring that prime contractors and subcontractors comply with the terms of their authorizations and for insuring that supplies and services obtained from GSA sources of supply are properly used.

§ 1-5.903 Procedure for placing orders. § 1-5.903-1 Orders under Federal Supply Schedule contracts.

(a) Orders placed by Government contractors under Federal Supply Schedule contracts shall be placed in accordance with the provisions of the applicable Federal Supply Schedule and the authorization issued to the contractor. Each order shall be accompanied by a copy of the authorization (unless a copy was previously furnished to the Federal Supply Schedule contractor) and shall contain a statement as follows:

This order is placed pursuant to written authorization from

§ 1-5.903-2 Orders for GSA stores stock.

(a) Orders placed by Government contractors for GSA stores stock shall be placed in accordance with the authorization, using the FEDSTRIP format in accordance with the provisions of Subpart 101-26.2. Each requisition shall inIclude the address and billing codes indicated in the authorization. When orders are placed on GSA Form 1348m, Single Line Item Requisition System Document (MECHANICAL) (see § 10126.203-1(a) of this title), the statement of authorization required by paragraph (b) of this section shall be placed on the contractor's letterhead and used as a wrapper in submitting the mechanically prepared requisition cards.

(b) The statement of authorization which accompanies the contractor's order or requisition shall be substantially as follows:

This order is placed pursuant to written authorization from dated

§ 1-5.904 Furnishing information to

contractors.

Agencies shall assist the contractors which they have authorized to use GSA supply sources to obtain pertinent Federal Supply Schedules and the GSA Stock Catalogs, and shall furnish them with any other desired information. Such schedules and catalogs may be obtained from any GSA regional office.

§ 1-5.905 Payment for GSA stores stock.

Bills for GSA stores stock are not rendered by GSA until after shipment has been made. Receipt of billing is construed as sufficient evidence of delivery to establish liability and make payment. Accordingly, agencies should direct their contractors to make payments promptly upon receipt of billings (see § 101-26.103 (d) (2) of this title).

Subpart 1-5.10-Use of Excess
Aluminum

SOURCE: The provisions of this Subpart 1-5.10 appear at 31 F.R. 8621, June 22, 1966; 31 F.R. 9216, July 6, 1966, unless otherwise noted.

(a) It has been determined to be in the public interest to establish a Government Use Program requiring, to the maximum practicable extent, purchase of excess aluminum in the Government stockpile by Government contractors, directly or through subcontractors or suppliers, equal in weight to the weight of aluminum products as defined in § 1-5.1001-2 purchased by the Government or used in the production of items delivered under Government contracts. In implementation of this Program, all contracts in the categories listed below shall contain the clause in § 1-5.1001-2, or in the case of construction contracts, the clause as modified in § 1-5.1001-3:

(1) Purchases in the amount of $500 or more of aluminum products as defined in § 1-5.1001-2.

(2) Purchases of supplies or construction in the amount of $25,000 or more where the aluminum products used in the production of items delivered under the contract or in the production of items incorporated in construction performed under the contract are estimated by the contracting officer to approximate 10,000 pounds or more.

(b) These provisions do not apply to procurements of supplies or construction effected by procuring activities located outside, for use outside, the United States, its possessions, and Puerto Rico. These provisions are applicable to new procurements that are effected by amendments to an existing contract. In such cases, only the new procurement portion of the total contract is considered in determining whether the clause is required and, if required, the extent of its applicability. All contracts entered into including this clause shall be reported to:

Director, Stockpile Disposal Division, Property Management and Disposal Service, General Services Administration, Washingington, D.C. 20405.

Such reports shall include the name of the contractor, the contract number, the delivery period, and the estimated amount of aluminum which will be required to fulfill the contract.

[31 F.R. 8621, June 22, 1966, as amended at 34 F.R. 12341, July 26, 1969]

§ 1-5.1001-2 Contract clause. REQUIRED SOURCE FOR ALUMINUM INGOT (a) As used in this clause (1) the term "aluminum products" means aluminum or aluminum alloy in its last commercial form delivered by the producer, mill, or foundry as an end item under this contract, or used to produce an end item under this contract, such as by way of example (but not limited to) wrought aluminum products; forgings and castings; rolled bar, rod, structural shapes, and bare wire; aluminum conductor steel reinforced and bare aluminum cable; insulated or covered wire or cable; extruded bar, rod, shapes and tube (extruded, drawn and welded tube); sheet, strip and plate; pig or ingot; granular or shot; slab; foil; and powder, flake or paste; and (ii) the term "supplier" includes vendors materialmen, warehousemen, distributors or manufacturers of aluminum products or other items containing aluminum in any form.

(b) Except as provided in (c), below, the Contractor (or subcontractor or supplier, where applicable) shall purchase from the General Services Administration (GSA) a quantity of aluminum pig or ingot equal in weight to the gross weight of aluminum products constituting, or used in the production of, the items to be delivered under this contract. Such purchase shall be in accordance with the terms and conditions of sale prescribed therefor by GSA. Each order placed with GSA pursuant to this clause shall state that it is placed in accordance therewith and shall be sent to:

Director, Stockpile Disposal Division, Property Management and Disposal Service, General Services Administration, Washingington, D.C. 20405.

Aluminum purchased pursuant to this clause may be used in any manner the Contractor desires and need not be earmarked in any way after delivery to the Contractor, nor physically incorporated in the items to be delivered hereunder.

(c) To the extent the Contractor (or subcontractor or supplier, where applicable) places subcontracts or purchase orders for aluminum products or for items other than aluminum products and containing aluminum in any form, he is not required with respect to such subcontracts or purchase orders to purchase aluminum from the GSA. However, he agrees to incorporate this clause, except paragraph (d):

(1) In any such subcontract or purchase order for aluminum products in the total amount of $500 or more; or

(ii) In any such subcontract or purchase order in the total amount of $25,000 or more for any items containing aluminum in any form where the quantity of aluminum products used in the production of such items is estimated to be 10,000 pounds or more.

(d) The Contractor shall furnish to the GSA calendar quarter summaries (within 30 days following the close of the applicable