guage may be developed on a case-bycase basis. In (b) and (c), below, "Delivery" and "Shipment" should be interchanged as appropriate. "Delivery" should be used for urgent requirements. (b) Definite quantity contracts-(1) Contracts for stock items, other than exigencies. The language of the following clauses may be modified as long as unwanted accelerated shipments are prevented. For example, if inventory management activities indicate that onethird of the quantity is required in 30 calendar days, one-third in 90 days, and one-third in 150 days, it may be advantageous to establish three separate items for bidding purposes, each with a specified time of shipment. Language such as "Delivery is to be made as indicated in the schedule for each item" should be used. Where the delivery time is more than 45 calendar days, shipment shall not be made prior to 15 calendar days before the required time of delivery/ shipment. (i) Contracts with a single item of delivery. TIME OF DELIVERY calendar Shipment is required within days after receipt of order. Each delivery order issued under this contract will specify that shipment is required no later than the number of days shown above; and, if such order also provides that shipment shall not be made sooner than calendar days after receipt of order, the contractor agrees to make shipment only within such specified period of time. Earlier shipments may result in rejection of the supplies at the delivery point at the time of arrival. When the shipment time frame option is exercised, delivery orders issued will indicate "Early Shipment is precluded". (The second number to be inserted should be 15 days less than the first number.) (2) Other requirements contracts. Shipment is required within days after receipt of order. calendar When it is appropriate to show different delivery times for different items or groups of items, the second paragraph of the above clause should be revised to read: "Delivery is required to be made at the point(s) specified within the number of days after receipt of order as indictated below." Appropriately captioned columns (completed by the solicitation preparer) should be inserted following the text of the clause. (2) Multiple-award schedules. TIME OF DELIVERY The Government desires that delivery be made at destination within the number of days after receipt of order (ARO) as set forth below. Offerors are requested to insert in the "Time of Delivery (days ARO)" column in the Schedule of Items a definite number of days within which delivery will be made. If the offeror does not insert a delivery time, he shall be deemed to offer delivery in accordance with the Government's stated desired delivery time. Items or groups of items (Special item numbers or nomenclature) Desired delivery time (days ARO) As an alternative, the Government's listing of desired delivery times may be shown in a column titled "Desired Delivery Time (Days ARO)" next to the column "Time of Delivery (days ARO)" in the Schedule of Items. In this instance, the above clause shall be appropriately modified. (3) When the same desired delivery time applies to all items, the preceding clause shall be modified by substituting the following as the first sentence of the clause: "The Government desires that delivery be made at destination within days after receipt of order." Also, the blank spaces and headings shall be omitted. (e) Contracts for services. Due to the wide number of variables existing in this area no specific clause is provided for service contracts. [35 FR. 9924, June 17, 1970, as amended at 37 FR 12959, June 30, 1973; 39 FR 35796, Oct. 4, 1974; 41 FR 27037, July 1, 1976] § 5A-1.317 Noncollusive bids and proposals. The determinations required by 5-1.317 and § 1-1.317, for transactions originating in the Procurement Operations Division, shall be made by the Assistant Commissioner for Procurement. § 5A-1.318 Disputes clause. [36 F.R. 6948, Apr. 18, 1971] § 5A-1.318-1 Contracting officer's decision under the Disputes clause. (a) The adequacy of the contracting officer's decision under the Disputes clause, as required by § 1-1.318-1, and of the contents of any subsequent notice of appeal, as provided for by 5-60.201, shall be properly ensured. Accordingly, the following paragraphs shall be set forth in all contracting officers' decisions subject to the Disputes clause: This decision is made in accordance with the Disputes clause and shall be final and conclusive as provided therein, unless a written Notice of Appeal addressed to the Administrator of General Services is mailed or otherwise furnished to the contracting officer. The Notice of Appeal, which is to be signed by you as the contractor or by an attorney acting on your behalf, and which may be in letter form, should indicate that an appeal is intended, should refer to this decision and should identify the contract by number. The Notice of Appeal should include a statement of the reasons why the decision is considered to be erroneous. In the event you desire to file an appeal from this decision, there is enclosed for your convenience GSA Form 2465, Notice of Appeal, in triplicate, for completion and signature. All the items of information requested must be supplied. If sufficient space is not available on this form for each item, please attach a supplemental sheet or sheets. Also attached is an additional copy of the form which should be completed and retained for your files. The Notice of Appeal is to be signed by the appellant personally, if an individual, or, if not, by an authorized officer or duly authorized representative of the appellant organization and submitted in triplicate to the contracting officer. The Notice of Appeal must be mailed or otherwise furnished to the contracting officer within 30 days from receipt of this decision or your appeal shall be considered untimely. (b) Whenever a decision of the contracting officer is concerned with the termination of a contract and/or purchase order(s) for default, with a finding of inexcusability, GSA Form 2715, Decision of the Contracting Officer, as illustrated by § 5A-16.950-2715, shall be used in lieu of that set forth in § 5A-1.3181(a), above. (c) Notice of appeal action under the above circumstances may be effected by use of GSA Form 2465, Notice of Appeal, as illustrated by § 5A-16.950-2465. [36 F.R. 17576, Sept. 2, 1971, as amended at 87 FR 527, Jan. 13, 1972] § 5A-1.350 Advance notices of contract award. Advance notice of award may be given by the contracting officer in writing, by telegraph, or orally. Notices shall include the identification of the invitation, description of the item quantity, price, and contract number assigned. Advance notices shall be followed as soon as possible by formal contract documents. (a) Written notices. The form and content of written notices shall be essentially as shown in § 5A-76.101. Federal Supply Schedule contracts involving catalogs and price lists shall conform to the requirements of § 5A-73.120. (b) Telegraphic notices. Telegraphic notices shall contain all of the information discussed in this § 5A-1.350. In addition, a statement that written confirmation will follow shall be made. (c) Oral notices. Oral notices may be given only when the circumstances surrounding the procurement do not allow time for telegraphic notice and shall include all information normally included in written notices. Notices shall also include a statement that written confirmation will follow. (d) Circumstances which warrant advance notice. Advance notices of contract award may be issued by contracting officers under any of the circumstances listed below: (1) A bid is about to expire and it is necessary to issue an award promptly. (2) Prompt action is necessary to give the contractor an opportunity to secure materials. (3) Delivery or performance is urgent and cannot await release of formal contract documents. (4) Prompt action is necessary to secure advance predelivery samples. (5) Prompt action is necessary to permit contractors to proceed with preparation of necessary catalogs and other Federal Supply Schedule data. (6) Prospective contractor requests early notification and gives sufficient reason to the satisfaction of the contracting officer. (7) Other circumstances which have been approved by the head of the procuring activity warrant advance notice. (e) Prevalidation. If the contract requires prevalidation, funds shall be obligated prior to the release of the advance notice of award. 139 FR 33516, Sept. 18, 1974] All contracts and agreements involving the payment of $20,000 or more in a single payment and all multiple-payment contracts, regardless of amount, shall be numbered. Contracts involving the payment of less than $20,000 in a single payment may or may not be numbered depending upon the needs of the procuring activity. In case of doubt whether the amount to be paid under a contract will be more or less than $20,000, or whether more than one payment may be necessary, the contract shall be numbered. [39 FR 33516, Sept. 18, 1974] § 5A-1.352-2 Numbering system. (a) Contract numbers shall be placed in the space provided on the applicable procurement forms, or if no space is provided, in the upper right hand corner of the contract document. Different contract numbers will be assigned for stock and nonstock items when they are combined in the same solicitation for offers. (b) Contract numbers shall be assigned in sequence from 00001 thru 99999. When all numbers have been assigned, the sequence will begin again at 00001. The procuring activity shall maintain records to ensure continuity and control of issuance of contract numbers. (See § 5A-1.352-4.) (c) Each contract number shall be prefixed by use of the symbol "GS," followed by a dash and the appropriate activity designation set forth in § 5A-1.3522(d). (d) The following designations shall be used to identify the appropriate activity (Central Office or GSA region) in which the procuring activity is located: 00 Central Office 01 Region 1 02 Region 2 03 Region 3 04 Region 4 05 Region 5 06 Region 6 07 Region 7 08 Region 8 09 Region 9 10 Region 10 (e) The following designations shall be used to identify the procuring office: C-Automated Data and Telecommunications Service. E--Office of Administration. J-Office of Property Management, FSS. S-Office of Procurement, FSS. T-Office of Transportation and Public Utilities, FSS. W-Office of Personal Property Disposal, FSS. (f) An example of the numbering system is: GS-02S-00001. (1) The letters "GS" denote the General Services Administration. (2) The number "02" identifies the location of the procuring office, in this case Region 2. (3) The letter "S" identifies the procuring office, in this case the Office of Procurement. (4) The number "00001" identifies the first contract made by the procuring office in this series. (g) Each negotiated contract shall contain the symbol "NEG" inserted immediately above the contract number. Additional identification not inconsistent with that prescribed above may be used if necessary for the internal control and routing of contracts and related documents. Additional identification should be held to the minimum consistent with adequate control of contracts. [39 FR 33516, Sept. 18, 1974, as amended at 41 FR 27037, July 1, 1976] § 5A-1.352-3 Numbering of small con tracts. Contracts negotiated under small purchase procedures in § 1-3.203 shall not normally be numbered. However, a contract number may be assigned (for reference and reporting purposes) when the resulting purchase order is to be written by an office other than the office awarding the contract. Purchase orders of this type shall be identified by special entries as provided below: (a) An assigned contract number and a notation that the number was assigned for reference purposes only. (b) A reference to the supplier's quotation. (c) A reference to "Sec. 302(c) (3), 41 U.S.C. 252(c) (3).” [39 FR 33516, Sept. 18, 1974] § 5A-1.352-4 Contract Register. GSA Form 2728, Procurement Contract Register, shall be used to ensure continuity and control of contract numbers and for registering pertinent contract data. See § 5A-16.950-2728 of this chapter for illustration of the form. [39 FR 33516, Sept. 18, 1974] 359 A warranty clause gives the Government a contractual right to assert claims regarding the deficiency of supplies or services furnished, notwithstanding any other contractual provision pertaining to acceptance by the Government. Such a clause allows the Government additional time after acceptance in which to assert a right to correction of the deficiencies or defeats, reperformance, an equitable adjustment in contract price, or other remedies. This additional period of time may begin at the time of delivery or at the occurrence of a specified event and may run for a given number of days or months or until occurrence of another specified event. The value of a warranty clause depends upon the circumstances of the procurement; and its use, terms, and conditions are influenced by many factors (see § 5A-1.370-3(b)). A warranty clause may be tailored to fit the individual procurement or class of procurements and may include special provisions for items shipped to overseas customers. [37 FR 22614, Oct. 20, 1972] 85A-1.370-2 Policy. (a) A warranty clause shall be used when it is found to be in the best interests of the Government after an analysis of the factors listed in § 5A-1.370–3 (b). (b) Any warranty clause included in a contract shall not limit any rights afforded to the Government by the provision of the inspection clause relating to latent defects, fraud, and gross mistakes that amount to fraud. Care should be taken to insure that the warranty clause used and any other warranty provision in the contract (e.g., in the specification) are consistent, especially where performance specifications are used. [37 FR 22614, Oct. 20, 1972] § 5A-1.370-3 Use of a warranty. (a) Except for commercial warranties and warranties contained in Federal or military specifications, the decision to use a warranty clause shall be approved at the branch level in the Procurement Operations Division and at the division level in the Special Programs Division and the regional offices. Except for FSC class 8010 items, the approval of the Assistant Commissioner for Procurement, FSS, shall be obtained prior to using any warranty clause not substan tially similar to the warranty clause set forth in § 5A-1.370-4. For FSC class 8010, see § 5A-72.106-7. (b) In deciding whether to use a warranty clause, the following factors shall be considered: (1) Nature of the item and its end use; (2) Cost of the warranty and degree of price competition as it may affect this cost: (3) Criticality of meeting specifications; (4) Damages to the Government that might be expected to arise in the event of defective performance; (5) Cost of correction or replacement, either by the contractor or another source, in the absence of a warranty; (6) Administrative cost and difficulty of enforcing the warranty; (7) Ability to take advantage of the warranty, as conditioned by storage time, distance of the using agency from the source, or other factors; (8) Operation of the warranty as a deterrent against deficiencies: (9) The extent to which Government acceptance is to be based upon contractor inspection or quality control; (10) Whether because of the nature of the items the Government inspection system would not be likely to provide adequate protection without a warranty; (11) Whether the industry's present quality program is reliable enough to provide adequate protection without a warranty, or, if not, whether a warranty would cause the contractor to institute an effective and reliable quality program; (12) Reliance on "brand-name" integrity; (13) Whether a warranty is regularly given for a commercial component of the end item being procured; (14) Criticality of item for protection of personnel or property; (15) Extent to which specifications safeguard the interest of the Government; (16) The stage of development of the item and the state of art; and (17) Customary trade practices. (1) The terms and conditions of a warranty clause vary with the circumstances of the procurement. The clause must state the duration of the warranty. The clause may either provide that the contractor will be liable for defects or nonconformance to contract requirements existing at the time of delivery or provide that the contractor will be liable for such defects or nonconformance which develop prior to the expiration of a specified period of time or before the occurrence of a specified event. (2) Where the Government specifies the design of the item and its precise measurements, tolerances, materials, tests, or inspection requirements, the contractor's liability for defects or nonconformance should usually be limited to those in existence at the time of delivery. (3) Where a contract contains performance specifications and design is of minor importance, the contractor's 11ability may extend to defects or nonconformance to specifications which may arise after delivery of the supplies or acceptance of the services. Normally, the warranty should be limited to defects or nonconformance existing at the time of delivery of the supplies or acceptance of the services. (4) Ordinarily, the remedy provided under a warranty clause to return nonconforming supplies to the contractor for correction or replacement should satisfy the Government's needs. However, where the supplies are of such nature (e.g., subsistence or drugs) that correction or replacement does not afford adequate remedy to the Government, the clause should provide: (1) That the contracting officer may either return the supplies to the contractor, dispose of them in a reasonable manner, or replace with similar supplies, and (ii) that the contractor shall be liable for any cost occasioned to the Government thereby. (5) When it can be foreseen that it will not be practical to return an article for correction or replacement because of the nature of its use or the cost of preparation for its return (e.g., where operating equipment installed in a vessel, automobile, or truck needs only a correction or adjustment but to return it would require substantial expense of removal from where it is installed), the clause should provide that the contractor or the Government may: (1) Correct the article in place at its location at the contractor's expense, or (ii) provide that the contractor shall furnish necessary replacement parts. (6) Where it is determined that a warranty for the entire item is not advisable, a warranty may be required for |