conduct of the research, and exercise judgment and original thought toward attaining the goals within broad parameters of the research areas proposed and the related resources provided.

(b) Use of contracts. The factors that indicate the use of contracts rather than grants are:

(1) The primary purpose is to buy or procure well-defined research or development in direct support of a HUD program;

(2) The end product is a specific service, piece of hardware or improved performance of a specific service or piece of hardware;

(3) HUD considers it necessary to exercise a more stringent control over the objectives, direction, specifications, costs or methods of the research, and such control is desirable and feasible; and

(4) The end result is clearly defined and "specifications" are prepared in advance of the work.

porting requirements, measurements of progress, publications, and time periods for Government review. Generally the specifications shall be stated in detail and contain the following elements but shall always be written to meet the minimum that will also be acceptable:

(a) Objective.

(b) Scope of work.

(c) Specific tasks. (d) Performance.

(e) Products/deliverables and schedules.

(f) Reports.

(g) Government obligations.

The adequacy of specifications is a critical factor in the use of formal advertising procedures. They must be defined well enough to permit all bidders to bid on the same basis. The Contracting Officer is responsible for determining when formal advertising is impractical or otherwise unsuitable and for documenting the file accordingly in the form of a determination and finding.

Subpart 24-2.2-Solicitation of Bids

§ 24-2.201 Preparation of invitations for bids.

Forms used in the preparation of invitations for bids are prescribed in 41 CFR Subpart 1-16.1 and 1-16.4 and in 24-16 of this Chapter.

§ 24-2.202 Miscellaneous rules for solicitation of bids.

§ 24-2.202-1 Bidding time.

In the procurement of supplies and services, the following shall be observed:

(a) Procurement action which does not provide for the minimum bidding time required by 41 CFR 1-2.202-1(c) shall be justified by the Contracting Officer prior to releasing the invitation for bids. This justification shall take the form of a finding of fact which establishes the Contracting Officer's basis for the exception to the minimum bidding time.

(b) The minimum bidding time stipulated in 41 CFR 1-2.202-1(c) shall not be construed as a maximum. Each prospective procurement shall be ex

amined on its own merits to determine the bidding time that will facilitate competition on reasonable and equal terms. As a general rule, procurement of a less complicated nature for which no extensive bid preparation by the prospective bidder is required in development of his bid may contain a bidding time of 20 calendar days. Where the specification may require prospective bidders to develop drawings or samples, or to do extensive preparation in developing a meaningful bid, 30 calendar days or more of bidding time may be required. When similar types of requirements necessitate a quick turnaround time, the appropriate Procuring Activity may request a class exception to the minimum bidding time relating to the urgency for the supplies or services. If this situation exists, the Contracting Officer will make a request to the Head of the Procuring Activity for approval of the class exception or where internal Departmental regulations exist regarding exceptions to the minimum bidding time these regulations are construed as an exception under this Section.

§ 24-2.202-2 Telegraph Bids.

Telegraphic bids will be authorized only by the Contracting Officer who shall document the official procurement file as to the necessity of telegraphic bids. Conditions under which telegraphic bids may be authorized are set forth in 41 CFR 1-2.202-2. When telegraphic bids are authorized by the Contracting Officer, the following clause shall be incorporated in the Invitation for Bids:

Telegraphic bids may be submitted in response to this Invitation for Bids (IFB). Telegraphic bids must be received in this Office prior to the time specified for opening of bids. Such bids must specifically refer to this IFB; must include the items or subitems, quantities and unit prices for which the bid is submitted and the time and place of delivery; and must contain all the representations and other information required by the IFB together with a statement that the bidder agrees to all the terms, conditions and provisions of the invitation. Failure to furnish, in the telegraphic bid, the representations and information required by the IFBS may necessitate rejection of the bid. Signed copies of the IFBS must be furnished in confirmation of the telegraphic

bids. The bidder shall confirm the telegraphic bid on the required forms contained in the IFB and shall submit it to the Contracting Officer within five (5) calendar days after the time and date set forth in the IFB for receipt of all bid responses.

§ 24-2.202-3 Place and method of delivery of supplies.

To the maximum extent practical, invitations for bids issued by HUD shall stipulate "f.o.b. destination." Only where the Contracting Officer determines it to be in the Government's best interest may he deviate from this policy.

§ 24-2.202-4 Bid samples.

Bid samples submitted by bidders as required by an invitation for bids or as unsolicited samples if not returned in accordance with 41 CFR 1-2.202-4(h), shall be disposed of by the Contracting Officer who shall document the contract file as to the method of disposition.

§ 24-2.202-50 Extension of time for bid opening.

(a) Whenever such action is determined by the Contracting Officer to be in the best interest of the Government, bid openings may be rescheduled for a later date by issuance and distribution of an amendment (see 41 CFR 1-2.207) to the invitation for bids. Notices of change in bid opening date shall specify the exact time and date for the new opening and will be issued by mail or telegraph as soon as possible, but in any event prior to the time specified for the opening of bids.

§ 24-2.202-51 Incorporation by reference.

There shall be shown on the face of the invitation for bids or, if that sheet is not the primary one provided for the bidder's signature, on the primary sheet that is so provided, a listing of attachments which are to form a part of the bid invitation and resulting contract, as follows:

"The following attachments hereto form a part of this Invitation for Bids and any resulting contract:"

§ 24-2.202-52 Prebid conference.

Whenever a prebid conference is proposed for a procurement the following will be applicable:

(a) General. One of the essential elements of formal advertising is that all bidders are afforded an equal opportunity to compete. For this reason, discussions with prospective bidders will only be conducted by or with the knowledge and approval of the Contracting Officer. It is incumbent upon the Contracting Officer to afford to all prospective bidders the same information so as not to give one advantage over the others, if issued to only one potential bidder. The need for prebid conferences in advertised procurements should be infrequent and such conferences shall not be used as a substitute for formally amending defective or ambiguous solicitation or to disseminate additional specification requirements. The prebid conference is a procedure generally reserved for complex procurements to provide for discussion of unusual aspects. A prebid conference is only authorized when it is deemed by the Contracting Officer to be in the best interest of the Government and approved by the Head of the Procuring Activity or when written internal program policy requires it under certain specified circumstances.

(b) Format. The typical format of a prebid conference is a formal presentation by the Contracting Officer or his representative followed by a question and answer period. All prospective bidders and their subcontractors shall be invited to the meeting in a manner deemed appropriate by the Contracting Officer. When held, a prebid conference shall be scheduled sufficiently in advance of the date set for bid opening to permit prospective bidders to use the information. A written record of the prebid conference shall be made and maintained in the procurement file as the official record of what was presented at the conference.

(c) Purpose. A prebid conference is held to accomplish two primary objectives:

(1) To impart information that removes areas of performance uncertainties which, unless removed, result in higher price to the Government, i.e.,

inclusion in the bid of an amount for the uncertainty or contingency.

(2) To avoid post-award performance problems which firms could have been made aware of at the time of bid preparation.

(d) Conclusion. As a result of the prebid conference, it may become necessary to change or substantially clarify the solicitation. This action shall be transmitted to all those receiving IFB in the form of an official amendment to the solicitation, taking into consideration any extension of the closing date for the receipt of bids.

§ 24-2.202-53 Bid envelopes.

Mailing labels, tags, or envelopes, bearing "Postage and Fees Paid" indicia shall not be distributed with the invitation for bids or otherwise supplied to prospective bidders. To provide for ready identifcation and proper handling of bids, the Optional Form 17, "Sealed Bid Label" may be furnished with each bid set to inform the bidder as to what will be required on the bid envelope. 41 CFR 1-16.902OF17 illustrates the referenced form and copies of same can be obtained from the General Services Administration.

§ 24-2.202-54 Alternate Bids.

An alternate bid is one that offers a suitable substitute for the requirements set forth in the invitation or which goes to the substance of the bid which affects price, quality, quantity or delivery. Where alternate bids are not provided for in the invitation, the Government shall consider any alternate bid to be non-responsive. The alternate bid method shall only be used in selected cases where flexibility may be desirable in selection of a product. The Contracting Officer shall weigh the advantage of the flexibility against the difficulties in the evaluation of bids that results from the alternate bid technique in determining to utilize this method.

§ 24-2.203-3 Publicity in newspapers and trade journals.

When it is deemed necessary by the procuring activity to use paid advertising the following must be observed:

(a) When it is deemed necessary to use paid advertisements in newspapers and trade journals and similar advertising media in conjunction with competitive solicitation, where HUD would not otherwise obtain the full benefit of available competition, written authority for such publication shall be obtained from the Head of the Procuring Activity.

(b) The prices paid for advertising shall not exceed commercial rates charged to private individuals. In Placing advertising orders, the Standard Form 1143 "Public Voucher for Advertising Order" shall be utilized. The only considerations required in placing an advertising order are (1) has the use of such medium been authorized and (2) is the medium able to achieve the objective of the advertising.

§ 24-2.205 Bidders mailing list.

§ 24-2.205-1 General.

Each procuring activity within the Department will establish in accordance with 41 CFR 1-2.205 bidders mailing lists to assure adequate sources of supplies and services. The Head of the Procuring Activity shall have the responsibility for establishing such mailing lists to enable all sources interested in contracting with the Department for specific types of programs to be utilized to the fullest extent possible.

§ 24-2.205-2 Establishment of lists.

All eligible Contractors who have submitted the Bidders Mailing List Application (Standard Form 129) or other forms as may be approved by the Department for this express purpose, shall be placed on the appropriate bidders mailing list unless a contrary determination is made in accordance with 41 CFR 2.205-1. The following procuring activities maintain mailing lists to support their particular procurement function:

(a) The Office of Procurement and Contracts maintains a list of all sources interested in contracting with all Departmental programs except as set forth in paragraphs (b) and (c) of this section.

(b) To assist the Property Disposition Acquired-Property Program, the

Department's Area and Insuring Offices each maintains a mailing list of interested sources appropriate for the jurisdiction over which it has authority.

(c) The General Services Division of each HUD Regional Office maintains, appropriate for the jurisdiction over which it has authority, a mailing list of sources interested in contracting with the Department for general service types of procurement.

§ 24-2.205-3 Removal and reinstatement of names on bidders mailing lists.

Each procuring activity shall observe the following requirements for the removal and reinstatement of names on a mailing list:

(a) Contractors who have been suspended, debarred or otherwise determined to be ineligible in accordance with 24 CFR Part 24 to receive an award of a Government contract shall immediately be removed from the bidders mailing lists.

(b) Potential Contractors who have failed to respond to a solicitation, shall be removed unless retention is considered in the best interest of the Government.

(c) At least once every twelve (12) months potential Contractors on inactive bidders mailing lists shall be contacted to determine their continuing interest, and all who fail to respond to this inquiry may be removed from the mailing list.

(d) Potential Contractors, except for those who have been debarred or found ineligible, who have been removed from the mailing list, may be reinstated upon request or by filing a new mailing list application.

Subpart 24-2.3-Submission of Bids

§ 24-2.301 Responsiveness of bids.

Any bid which is not signed by the bidder or his authorized representative shall be disregarded, except when it is accompanied by other evidence which demonstrates the bidder's intention to be bound by the unsigned bid document. Examples of such evidence are a bid guarantee or a letter (which does not qualify or otherwise render the bid nonresponsive) signed by the bidder referring to and clearly

§ 24-2.303-6 Notification to late bidders.

In setting the date to be inserted in the notice to late bidders contained in 41 CFR 1-2.303-6, consideration should be given to the time required by the bidder to develop and prepare the required evidence in relation to the acceptance period specified by the otherwise apparent low bidder, avoidance of undue delay in the procurement cycle, and other pertinent factors. As a general rule, the bidder should be allowed a minimum of three (3) working days in addition to a time allowance for transmitting the notice to, and receipt of the evidence by, the Contracting Officer. The bidder shall be notified immediately in writing if his bid cannot be considered for award because of lateness.

§ 24-2.303-7 Disposition of late bids.

A late bid which is not for consideration shall be held unopened until after award and then returned to the bidder (unless other disposition is requested or agreed to by the bidder). The return of a late bid which cannot be considered for award shall be accompanied by a statement from the Contracting Officer that the bid was not considered because of its late receipt. If the late bid had to be opened for identification purposes or was opened by mistake, this fact shall be included in the statement from the Contracting Officer accompanying the returned bid. In all cases where a late bid is not considered and returned to the bidder, the file shall be documented with all information relating to the determina