12 13 Montana, North Dakota, South Dakota, Wyoming, Utah, Colorado. California, Nevada, Arizona. Puerto Rico, Virgin Islands. If it is determined that fewer than thirteen (13) zones are required, zones in their entirety may be combined together, but in no case shall the geographic area of any zones be subdivided. Contract Coverage for zones covering Hawaii, Alaska, Puerto Rico, and the Virgin Islands is optional. Prior approval of the Assistant Commissioner for Procurement shall be obtained if zones covering geographical areas other than those prescribed are required. (b) Federal Supply Schedule contracts. Prior to the issuance of a solicitation, the contracting officer shall review the number of proposed delivery zones and change the number of zones, if appropriate, or revalidate the number of zones if no change appears warranted. The contracting officer shall prepare an appropriate justification for the number of zones used. [41 FR 27047, July 1, 1976] Subpart 5A-19.2-Transportation Factors in the Procurement of Personal Property § 5A-19.202 Transportation factors in invitations. § 5A-19.202-2 Packing and marking. See §§ 5A-7.102-75, 5A-7.102-76, and 5A-7.102-77 (clauses 31, 29, and 33, respectively, of GSA Form 1424). [38 FR 29471, Oct. 25, 1973] § 5A-19.202-6 Bid requirements. (a) General. See § 1-19.202-6 for general requirements. (b) Notice of Shipment. See §§ 5A7.101-70 (clause 37 of GSA Form 1424) and 5A-16.950-1056 for notice of shipment clause and form. (c) Shipping points. When f.o.b. origin prices are solicited, offerors shall be required to specify their shipping point(s) by providing street address, city, county, and State applicable to each item on which an offer is submitted. Spaces shall be provided in the solicitation for the insertion of this information. (d) Guaranteed maximum shipping weights. When guaranteed maximum shipping weights and/or dimensions are required for evaluation of freight costs, see & 5A-7.103-89 (clause 38 of GSA Form 1424). [38 FR 6816, Mar. 13, 1973, as amended at 38 FR 29471, Oct. 25, 1973] 85A-19.202-7 livery terms. Use of appropriate de See 1-19.202-7 for guidance in the selection of appropriate delivery terms. If the contracting officer uses only one delivery term in the solicitation despite guidance in § 1-19.202-7 that alternative delivery terms should be included, the reasons for so doing shall be stated in the contract file. § 5A-19.202-8 Options in shipment and delivery. The clause in § 5A-7.102-2 (Clause 2 of GSA Form 1424) is an amplification of Article 2 (Changes) of the General Provisions, Standard Form 32, and is prescribed for use in all Federal Supply Service contracts. [38 FR 29471, Oct. 25, 1973] § 5A-19.202-50 Restrictions on transportation to military installations. (a) There are many delivery restrictions at various military installations, due partially to the curtailment of military services. DoD publications entitled "Terminal Facilities Guide" list the shipping and receiving capabilities at all military installations and are updated as changes occur. Copies of the guides are distributed to the GSA regional Transportation Services Division. (b) For solicitations specifying direct delivery to military installations, contracting officers shall include a provision specifying any applicable delivery restrictions. The contracting officer shall verify receiving capabilities or restrictions with the appropriate Transportation Services Division before issuing the solicitation. [41 FR 27047, July 1, 1976] Subpart 5A-19.3-Contract Delivery determined that the standard delivery term "f.o.b. destination" does not satisfy the Government's needs with respect to contracts for stock items and Federal Supply Schedule contracts. Accordingly, special clauses providing for destination delivery are prescribed in §§ 5A-19.370 and 5A-19.371 for use in such contracts. (b) The use of a standard delivery term in a solicitation activates clause 36 of GSA Form 1424 entitled "Meaning of Delivery Terms" (see § 5A-7.101-73) which in turn causes the FPR definition of the term and related contractor responsibilities shown thereunder to be incorporated by reference in the solicitation. (c) When other than standard delivery terms are used, the solicitation shall clearly define the point of delivery and shall set forth thereunder any appropriate related contractor responsibilities. These responsibilities shall include factors such as those outlined in "contractor responsibilities" under specific FPR delivery terms, unless such responsibilities are provided for elsewhere in the solicitation. [38 FR 6816, Mar. 13, 1973, as amended at 38 FR 29471, Oct. 25, 1973] § 5A-19.370 Deliveries to GSA supply distribution facilities. (a) The following clause shall be used in contracts for stock items when separate delivered prices are solicited for individual GSA supply distribution facilities. The first sentence of the clause may be modified as appropriate when prices are requested to cover deliveries to specified destinations within certain areas (i.e., GSA regions or zones). When prices are solicited covering delivery to any point within specified regions or zones, the geographic areas of the regions or zones shall be defined in the solicitation DELIVERY-DESTINATION PRICES Prices cover delivery to the GSA supply distribution facilities specified in the item listing. Supplies shall be delivered to the named destination consignee's warehouse unloading platform or receiving dock at the expense of the Contractor. The Government shall not be liable for any delivery, storage, demurrage, detention, accessorial, or other charges involved prior to the actual delivery (or "constructive placement" as defined in carrier tariffs) of the supplies to the destination, unless such charges are caused by an act or order of the Government acting in its contractual capacity. If rail carrier is used, supplies will be delivered to the specified unloading platform of the consignee. If motor carrier (including "piggyback") is used, the Contractor shall provide tailgate delivery of all articles except those defined as "heavy or bulky freight" in Item 568 of the National Motor Freight Classification. If the Contractor uses rail carrier or freight forwarder for less than carload shipments, he shall assure that the carrier will furnish tailgate delivery (except for heavy or bulky freight) if transfer to truck is required to complete delivery to the consignee. (b) Less than - carload/less than truckload shipments to GSA supply distribution facilities. (1) It is common industry practice for shippers to take advantage of lower freight rates by consolidating less-thancarload/less-than-truckload shipments into a carload or truckload with stopoff privileges en route for partial unloading. Where a supply contract provides for delivery to destination, any economies resulting from such consolidation accrue to the contractor; therefore, any costs associated with the use of the stopoff privilege should be borne by him. However, since the carrier's tariff rules provide with respect to such shipments that each intermediate consignee must restow, block, and brace the remaining shipments in the conveyance prior to releasing the conveyance back to the carrier, the Government bears the restoration costs unless it recovers them from the contractor. Accordingly, invitations for bids for stock items which provide for delivery on a destination basis shall contain the following clause (clause 34 of GSA Form 1424): LESS-THAN-CARLOAD /LESS-THAN-TRUCKLOAD SHIPMENTS WITH STOPOFF PRIVILEGES (a) When the contract provides for delivery to destination and the Contractor elects to deliver a less-than-carload/lessthan-truckload quantity with stopoff privileges for partial unloading, the Government's shipment must be loaded by the Contractor in a manner which will not require the Government to restow, block, and brace any freight remaining in the conveyance. (b) In the event the Contractor fails to comply with the above requirement, the Government shall have the right, without prejudice to any other available remedies under the contract, to (1) reject the shipment or (2) perform the required restowing, blocking, and bracing by use of Government personnel and charge the Contractor therefor at a rate of $11 per man-hour, with a minimum of $11, and deduct such charges from the Contractor's invoice for the material. (2) Deductions from contractor's invoice pursuant to paragraph (b) of the clause above will be made by the appro Prices offered must cover delivery to destinations within the zone(s) to which such prices apply, as provided below: (a) Delivery to the door of the specified Government activity by freight or express common carriers on articles for which storedoor delivery is provided, free or subject to a charge, pursuant to regularly published tariffs duly filled with the Federal and/or State regulatory bodies governing such carrier; or, at the option of the Contractor, by parcel post on mailable articles, or by the Contractor's vehicle. Where store-door delivery is subject to a charge, the Contractor shall (1) place the notation "Delivery Service Requested" on bills of lading covering such shipments and (2) pay such charge and add the actual cost thereof as a separate item to his invoice. (b) Delivery to siding at destination when specified by the ordering office, if delivery is not covered under paragraph (a), above. (c) Delivery to the freight station nearest destination when delivery is not covered under paragraphs (a) or (b), above. ZONES: For the purpose of this solicitation and any resulting contract, zones consist of the geographic areas specified below: tractor, within the doors of the storeroom ("storeroom" is understood to mean that room on the entrance floor of the building in which supplies can be deposited) designated in the order. Deliveries in Prince Georges and Montgomery Counties in Maryland, the cities of Alexandria and Falls Church, and Arlington and Fairfax Counties in Virginia shall be made at the expense of the Contractor as follows: (1) Delivery to the door of the specified Government activity by freight or express common carriers on articles for which storedoor delivery is provided, free or subject to a charge, pursuant to regularly published tariffs duly filed with the Federal and/or State regulatory bodies governing such carrier; or, at the option of the Contractor, by parcel post on mailable articles, or by the Contractor's vehicle. Where store-door delivery is subject to a charge the Contractor shall (1) place the notation "Delivery Service Requested" on bills of lading covering such shipments and (11) pay such charge and add the actual cost thereof as a separate item to his invoice. (2) Delivery to siding at destination when specified by the ordering office, if delivery is not covered under subparagraph (a)(1), above. (3) Delivery to the freight station nearest destination when delivery is not covered under subparagraph (a) (1) or (2), above. (b) When deliveries are made to destinations outside Washington, D.C., and contiguous area, the following conditions will apply: (1) On shipments weighing less than 100 pounds where transportation charges are not greater than to Washington, D.C., the Contractor shall pay transportation charges. No freight adjustments are required. (2) On all shipments other than specified in subparagraph (b)(1), above, the Contractor shall deduct from his invoice the transportation charges from his shipping point to Washington, D.C., and add the actual cost of transportation to destinations designated by ordering offices. Transportation charges will in all cases be based upon the lowest regularly established rates on ale with the Interstate Commerce Commission, the Federal Maritime Commission (if shipped by water), or any State regulatory body, or published by the U.S. Postal Service, and must be supported by paid freight or express receipt or by a statement of parcel post charges, including weight of the shipment, or when delivered in Contractor's vehicle, by an explanatory statement. (2), (3) Subparagraphs (b) (1) and above, will not apply when Contractor stipulates that his Washington, D.C., delivered price is also the delivered price to any point within the continental limits of the United States. (4) The Contractor's shipping point for the purpose of computing transportation charges will be the shipping point named in his bid. In the event two or more shipping points are named by the Contractor with out qualification as to destination areas to be served by each, freight charges to Washington, D.C., to be deducted from invoices and freight charges to destinations designated by ordering offices to be added to invoices will be computed from the shipping points involving the lowest transportation charges to Washington, D.C., and to designated destinations, respectively. (5) The right is reserved to the ordering office to specify the type of transportation to be employed. When more than one specified delivery point is used, either within a region or zone or within the continental United States, it will also be necessary to define specifically the limits of the surrounding area in which deliveries are authorized through application of the transportation cost adjustment clause. This is necessary to avoid having two Federal Supply Schedule contracts which could be used for delivery of the same item to the same point. 5A-26.5004-5 Correction or revision. 5A-26.5004-6 Follow-up of contractor proposals. 5A-26.5004-7 Analysis and negotiation of proposals. AUTHORITY: Sec. 250(c), 63 Stat. 390; (40 U.S.C. 486 (c)), unless otherwise noted. SOURCE: 41 FR 27047, July 1, 1976, unless otherwise noted. Subpart 5A-26.50-Change Orders § 5A-26.5001 Scope of subpart. This subpart sets forth policies and procedures governing the issuance and processing of change orders. § 5A-26.5002 Change order accounting procedures. (a) As a general rule, prior to the issuance of a change order, "forward pricing" should be accomplished whenever feasible. Price negotiation based on for ward pricing is preferred over retroactive pricing as means of injecting the elements of risk and efficiency into the negotiated price. Forward pricing means: (1) The price of contract modifications shall be negotiated prior to their execution if this can be done without adversely affecting the interests of the Government. (2) If a significant cost increase could result from a modification but time does not permit negotiation of a firm price for the change, a maximum price for the total contract should be negotiated, if practical. (3) As a minimum, the file should be documented to show the Government's estimated cost for the change. (b) Where forward pricing is not possible and retroactive pricing is the only alternative, the latter can be effected more accurately if the Government has complete and accurate information disclosing contractor's costs incurred in performing the changes. Recording change order costs is a difficult and complex task with respect to certain aspects of work and cost; hence contractors' accounting systems seldom segregate the costs of performing changed work. Accordingly, before submission of bids or offers, prospective contractors should be advised of the possible need to alter or to improve their accounting procedures to be able to comply with the need for appropriate change order cost segregation. Therefore, the following Change Order Accounting clause and Change Orders Submission of Claims clause shall be included in all solicitations where it is anticipated that after award of a contract there could be a change or changes whose cost may exceed $100,000, or where it is anticipated that the total contract award exceeds $500,000. CHANGE ORDER ACCOUNTING When the Contracting Officer estimates that the cost of a change or series of related changes will exceed $100,000, he may require change order accounting. The Contractor, and his subcontractors, if any, for each such change or series of related changes, shall maintain separate accounts, by job order or other suitable accounting procedure, of all incurred segregable direct costs (less allocable credits) of work, both changed and not changed, allocable to the change. The accounts maintained by the contractor should be controlled by the general books of account. CHANGE ORDERS-SUBMISSION OF CLAIMS Any claims for adjustment of contract price or delivery schedule which a Contrac Sec. 5A-30.706-70 Requirements-type and indefinite quantity contracts for by more than one use agency. 5A-30.706-71 Definite 5A-30.707 quantity contracts and requirements-type or indefinite quantity contracts for use only by GSA. Further assignments and reassignments. AUTHORITY: Sec. 205(c), 63 Stat. 390; 40 U.S.C. 486 (c); 41 CFR Parts 5-1, 101(c). Subpart 5A-30.1-Forms of Financing § 5A-30.109 Partial payments-description. Partial payments shall be made as provided in § 1-7.102-7 and Clause 7 of Standard Form 32, General Provisions (Supply Contract). [39 FR 11419, Mar. 28, 1974] Subpart 5A-30.2-Basic Policies (a) Definitions. As used in this § 5A30.212, the following terms shall have the meanings set forth below: (1) "Financial provisions" means provisions for payments (generally), partial payments, progress payments, advance payments, insurance provisions, or any other financial terms and conditions contained in or proposed to be included in an invitation for bids, solicitation of proposals, or resultant contract. (2) "Standard financial provisions" means financial provisions which have been formally prescribed by the FPR, GSPR, or otherwise authorized by the Administrator, Assistant Administrator for Administration, a Regional Administrator, or a Regional Director of Administration, as appropriate. (3) "Nonstandard financial provisions" means financial provisions (or proposed additions, deletions, or other modifications with respect to standard financial provisions) which have not been formally prescribed in accordance with 85A30.212(a) (2). (4) "Appropriate financial office" means the Director of Finance, OAD, or the regional Director, Finance Division, for regional contracts. (b) Assistance in development of filnancial provisions. It is imperative that adequate and appropriate financial provisions are developed or properly used in accordance with Part 1-30 and this Part 5A-30. The appropriate financial office shall, upon request, provide technical advice and assistance in the development of all financial aspects of invitations for bids, solicitations of proposals, and resultant contracts. In addition, although there is no requirement to do so, advice may be requested by the procuring activity as to the adequacy of proposed contracts containing standard financial provisions. (c) Clearances. Invitations for bids, requests for proposals, and amendments of existing contracts involving nonstandard financial provisions shall be forwarded to the appropriate financial office for review as early as possible during the procurement process. In all cases such review shall be prior to execution or submission of a contract to higher authority for clearance or approval. In cases of proposed additions, deletions, or other modification regarding standard financial provisions, applicable deviation procedures (§ 5A-1.109) must also be followed. (d) Action by appropriate financial office. Where a matter has been referred to a financial office for review or clearance, that office shall immediately notify the contracting officer as to the sufficiency of the financial provisions. If financial provisions are proposed which are inadequate or improper, such deficiencies will be explained together with recommended remedial measures which must be taken. [39 FR 11419, Mar. 28, 1974] Subpart 5A-30.4-Advance Payments SOURCE: 39 FR 11420, Mar. 28, 1974, unless otherwise noted. § 5A-30.403 Interest. The Office of Finance, OAD, will inform procuring activities of the interest rate to be charged on the unliquidated balance of all advances payments. § 5A-30.405 Statutory requirements. The determination required under § 1-30.405 (c) shall be prepared by the contracting officer in cooperation with the appropriate legal counsel and representatives of the Director of Finance, OAD, or the regional Finance Division for regional contracts. § 5A-30.406 Responsibility—delegation of authority. The responsibility and authority for making findings and determinations with respect to advance payments, and in each case for approval of contract provisions |