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AUTHORITY: The provisions of this Part 1-1 issued under sec. 205 (c), 63 Stat. 390; 40 U.S.C. 486 (c).

SOURCE: The provisions of this Part 1-1 appear at 29 F.R. 10104, July 24, 1964, unless otherwise noted.

§ 1-1.000 Scope of part.

This part sets forth policies and procedures concerning: the Federal Procurement Regulations System; definition of terms used throughout this chapter; general policies of procurement; contingent fees; debarred and ineligible bidders; small business concerns; labor surplus area concerns; reporting possible antitrust violations; publicizing procurement actions; and qualified products. Subpart 1-1.0-Regulation System § 1-1.001 Scope of subpart.

This subpart sets forth introductory information pertaining to the Federal Procurement Regulations System; its purpose, authority, applicability, issuance, arangement, implementation, and deviation procedure.

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The Federal Procurement Regulations System is prescribed by the Administrator of General Services under the Federal Property and Administrative Services Act of 1949, as amended, and the FPR are developed in cooperation with the procurement agencies and are issued by him under the Act or other authority specially cited.

§ 1-1.004 Applicability.

Federal Procurement Regulations apply to all Federal agencies to the extent specified in the Federal Property and Administrative Services Act of 1949, as amended, or in other law. Except for standard Government forms and clauses, Federal Specifications and Standards, and except as directed by the President, Congress, or other authority, these Regulations are not made manadatory on the Department of Defense. Therefore, the extent of their implementation within the Department of Defense and participation in the System will be determined by that Department. The Regulations apply to procurements made within and outside the United States unless otherwise specified.

§ 1-1.004-1 Leases of real property.

The FPR apply to leases of real property only to the extent explicity stated in specific FPR provisions. Suparts 11.0 and 1-1.2 apply to leases of real property.

[30 F.R. 8217, June 26, 1965] § 1-1.005

Exclusions.

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Federal Procurement Regulations are published (in Title 41) in the daily issue of the FEDERAL REGISTER, in cumulated form in the Code of Federal Regulations, and in separate loose-leaf volume form. § 1-1.006-3 Copies.

Copies of Federal Procurement Regulations in Federal Register and Code of Federal Regulations form may be purchased by Federal agencies and the public, at nominal cost, from the Superintendent of Documents, Government Printing Office, Washington, D.C. 20402. Copies of Federal Procurement Regulations in loose-leaf volume form may be obtained by Federal agencies from the General Services Administration, in a very limited quantity, and may be purchased by the public from the Superintendent of Documents.

§ 1-1.006-4 Coordination.

In the development of Federal Procurement Regulations, there will be solicited the views of interested Federal agencies and, where appropriate and feasible, the views of interested business and professional organizations. The Regulations will be coordinated with the Small Business Administration to assure adequate consideration of small business interests.

§ 1-1.007 Arrangement.

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to each agency, followed by a dash. This is followed by the part number which may be one or more digits followed by a decimal point. The numbers after the decimal points represent, respectively, the subpart, section (in two digits), and, after the dash, subsection. paragraph, subparagraph, and further inferior divisions. For example, this division is called (section) "§ 1-1.007-2," in which the first digit denotes the chapter, the second the part, the third the subpart, the fourth and fifth the section and the sixth the subsection. § 1-1.007-3

Citation.

Federal Procurement Regulations will be cited in accordance with Federal Register standards approved for the FPR. Thus, this section, when referred to in divisions of the Federal Procurement Regulations, should be cited as "§ 11.007-3 of this chapter." When this section is referred to formally in official documents, such as legal briefs, it should be cited as "41 CFR 1-1.007-3." Any section of Federal Procurement Regulations may be informally identified, for purposes of brevity, as "FPR" followed by the section number, such as "FPR 1-1.007-3."

§ 1-1.008 Agency implementation.

As portions of FPR material are prescribed, agencies shall publish in the FEDERAL REGISTER implementing regulations deemed necessary for business concerns, and others properly interested, to understand basic and significant agency procurement policies and procedures which implement, supplement, or deviate from the FPR. Detailed instructions of interest primarily for internal agency guidance need not be published. Implementing regulations shall be prepared to conform with FPR style and arrangement. § 1-1.009 § 1-1.009-1

Deviation. Description.

As used in these Regulations, the term "deviation" includes any of the following actions:

(a) When a prescribed contract clause is set forth verbatim, use of a contract clause covering the same subject matter which varies from that set forth.

(b) When a standard or other form is prescribed, use of any other form for the same purpose.

(c) Alteration of a prescribed standard or other form, except as may be authorized in the Regulations.

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In the interest of establishing and maintaining uniformity to the greatest extent feasible, deviations from the Federal Procurement Regulations shall be kept to a minimum and controlled as follows:

(a) The head of each agency exercising procurement authority shall prescribe a formal procedure for the control of deviations within the agency. A copy of the procedure shall be furnished to the General Services Administration.

(b) In individual cases, deviations may be authorized by the head of the agency or the officers designated by him for this purpose, in accordance with procedures established by the agency. In each instance the file shall disclose the nature of the deviation and the reasons for such special action.

agency Procurement Policy Committee, chaired by GSA, has been established. It is comprised of representatives of procurement and related Federal agencies designated by the heads of the agencies concerned.

[30 F.R. 9766, Aug. 5, 1965]

Subpart 1-1.1 [Reserved] Subpart 1-1.2-Definition of Terms § 1-1.201 Definitions.

For the purposes of this chapter, and unless otherwise indicated, the following terms have the meanings set forth in this subpart.

§ 1-1.202 Executive agency.

"Executive agency” means any executive department (including the Departments of the Army, the Navy, and the Air Force) or any independent establishment in the executive branch of the Government, including any whollyowned Government corporation.

§ 1-1.203 Federal agency.

"Federal agency" means any executive agency or any establishment in the legislative or judicial branch of the Government (except the Senate, the House of Representatives, and the Architect of the Capitol and any activities under his direction).

§ 1-1.204 Head of the agency.

"Head of the agency" means the Secretary, Attorney General, Postmaster Administrator, Governor, Chairman, or other chief official of an executive agency, unless otherwise indicated, including any assistant chief official of an executive agency and, for the military departments, the Under Secretary and any Assistant Secretary of the Departments of the Army, Navy, and Air Force.

(c) Deviations in classes of cases shall be considered on General, an expedited basis jointly by the agency desiring the deviation and the General Services Administration unless, in the considered judgment of the agency and with due regard to the objective of uniformity, circumstances preclude such joint effort. In such case, GSA will be notified of the deviation.

(d) Except as otherwise authorized, when any deviation in a contract form provision is authorized, physical change may not be made in the printed form but shall be made by appropriate provision in the schedule, specifications, or continuation sheet, as provided in agency procedures.

§ 1-1.010 Interagency Procurement Policy Committee.

For the purpose of advising and assisting the General Services Administration in its Government-wide program for the development of uniform procurement policies and procedures, an Inter

§ 1-1.205

Procuring activity.

"Procuring activity" means the organizational element of an executive agency which has responsibility to contract for the procurement of personal property and nonpersonal services (including construction).

§ 1-1.206 Head of the procuring activity.

"Head of the procuring activity” means that official, intermediate between the head of the agency and the contracting officer, who has the responsibility for supervision and direction of the procuring activity.

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"Contract" means establishment of a binding legal relation basically obligating the seller to furnish personal property or nonpersonal services (including construction) and the buyer to pay therefor. It includes all types of commitments which obligate the Government to an expenditure of funds and which, except as otherwise authorized, are in writing. In addition to a twosignature document, it includes all transactions resulting from acceptance of offers by awards or notices of awards; agreements and job orders or task letters issued thereunder; letter contracts; letters of intent; and orders, such as purchase orders, under which the contract becomes effective by written acceptance or performance. It also includes contract modifications.

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§ 1-1.217 Possessions.

"Possessions" includes the Virgin Islands, the Canal Zone, Guam, American Samoa, Wake Island, Midway Island, and the guano islands, but does not include the Commonwealth of Puerto Rico. § 1-1.218 Negotiation.

"Negotiation" means the procedure for making contracts without formal advertising.

§ 1-1.219 Contract modification.

"Contract modification" means any written alteration in the specifications, delivery point, rate of delivery, contract period, price, quantity, or other contract provision of an existing contract, whether accomplished by unilateral action in accordance with a contract provision or by mutual action of the parties to the contract. It includes (a) bilateral actions, such as supplemental agree ments and amendments, and (b) unilateral actions, such as change orders, notices of termination, and notices of the exercise of an option.

§ 1-1.220 Procurement item.

"Procurement item" means any personal property or nonpersonal service, including construction, alteration, repair, or installation, which is the object of procurement.

Subpart 1-1.3-General Policies § 1-1.301 Methods of procurement. § 1-1.301-1 Competition.

All purchases and contracts, whether by formal advertising or by negotiation, shall be made on a competitive basis to the maximum practicable extent. § 1-1.301-2 Formal advertising.

Contracts for property and services shall be made by formal advertising in all cases in which the use of such method is feasible and practicable under the existing conditions and circumstances. Procurement by formal advertising shall be in accordance with detailed requirements and procedures set forth in Part 2 of this chapter.

§ 1-1.301-3 Negotiation.

If the use of formal advertising is not feasible and practicable, purchases and contracts for property and services may be negotiated in accordance with the detailed requirements and procedures set forth in Part 3 of this chapter.

§ 1-1.302 Procurement sources.

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