(b) Heads of procuring activities (§ 1-201.14 of this title) shall assure that the procedures set forth below to assure integrity in procurement operations and disposal of government property are followed by activities reporting to them:

(1) Perform periodic, selective reviews of procurement and property disposal operations and related areas to determine that an adequate system of checks and balances has been provided. Reviews shall include, but not be limited to, such areas as determination of requirements, preparation and adoption of procurement specifications and standards, qualification approval, solicitation and evaluation of bids and proposals, cost/price analysis and negotiations, award of contract, ordering under

open-end procurements, contract administration, contract termination, receipt control, administration of payment, transportation, inventory control and sale and disposal of government property.

(2) Conduct frequent spot-checks to determine:

(i) Compliance with existing safeguards by all military and civilian personnel, and

(ii) The need for possible modification of existing procedures as a result of changed conditions.

(3) Assure that all personnel fully understand the distinctions that have been drawn between proper and improper modes of conduct as defined in SECMAVINST 5370.2 series (Part 721 of this title). Provide opportunities for meaningful discussion, placing special emphasis on conflict of interest matters of the issues involved.

(4) Identify for special management attention those positions requiring continued, close association with the contractor or his representatives and involving duties or decisions which strongly affect the contractor's interest.

necssary assistance and information in reply to inquiries concerning suspected wrong-doing or abuse of authority. In this regard, forthright cooperation with the Federal Bureau of Investigation and the Naval Investigative Services is essential.

[41 FR 55511, Dec. 21, 1976]

§ 737.1-111-51 Reports under the gratuities clause.

(a) In implementation of the Gratu ities clause in § 7.104-16 where a Navy procuring activity has reason to believe that a gratuity (in the form of entertainment, gifts or otherwise) was offered or given by a contractor or by his agent or representative to any officer or employee of the Government with a view toward securing a Navy contract (other than a contract for personal services) or securing favorable treatment with respect to the awarding or amending, or the making of any determination with respect to the performing of such contract, the procuring activity having cognizance of the contract shall forward a full report of the alleged infraction, properly documented, to the Chief of Naval Material (MAT09G). After review of the information in such report, the Chief of Naval Material, when in his opinion the facts of the case warrant, is authorized to schedule the matter for hearing in accordance with the provisions of "Rules for Notice and Hearing under the Gratuities Clause" (ASPR Appendix D) and this NPD.

(b) The Chief of Naval Material may establish, at such time as he deems proper, a board to give notice of hearings, to conduct hearings, and to make the findings of fact and recommendations provided for in ASPR Appendix D. The Board shall consist of a chairman and two other members, one of whom shall be a person trained in the law, and will be given an appropriate designation by the Chief of Naval Material. In the performance of its functions, the board shall have all the authority conferred on the Secretary of the Navy by statute or by the prescribed contract clause and all actions of the board in this respect shall be in

(5) Consider adherence to high standards of integrity in selecting personnel for promotion and in making assignments to key positions.

(6) Take prompt administrative steps or assist appropriate authorities in criminal or civil actions against military and civilian personnel involved in fraudulent activites. Similarly, provide

(a) As used throughout the NPD, the words and terms defined in § 1.201 have the same meanings as set forth in §1.201, unless (i) the context in which they are used requires a different meaning, or (ii) a different definition is prescribed for a particular NPD Section, paragraph, or portion thereof: Provided, That when authority is delegated to, or action is required of, a "procuring activity" or "The Head of a Procuring Activity" those terms shall refer only to Navy procuring activities and to Heads of Navy Procuring activities as identified in §§ 1.201-14 and 1.201-7, respectively.

(b) Definitions in ASPR which apply only to a particular portion of the NPD.

(c) As used in the NPD:

(1) "Navy" refers to the Department of the Navy, including the Marine Corps;

(2) [Reserved]

(3) "Contracts division" and "contract division" (whether or not the initial letters are capitalized), when used in connection with a procuring activity or field purchasing activity not having a division so named, means the division, branch or other organizational entity, equivalent to the contract division of a system command, in which contracting officers operate to place contracts for the activity.

(4) Publications include, but are not limited to, end items of printing as defined herein, and any book, pamphlet, directive, form, manual, folder, brochure, periodical magazine, newspaper, microcard or other microform, technical report, chart, poster, map, drawing, tag, placard, or blankbook, printed by or for the Department of the Navy, regardless of content, format, quantity, distribution, or intended end use. (Exception: Publications produced by suppliers and regularly carried as stock items for commercial sale or use are not included in this definition.)

(5) Printing includes and applies to the processes of composition, platemaking, presswork, and binding; the equipment used in such processes as cited in Navy Publications and Printing Service directives; and the end items, with exceptions as noted above, produced by such processes and equipment. "Composition" includes the production of text, display, tabular matter, and similar graphical/lexical information or data on film, paper, tape, or other materials by manual or tape-operated cold type composing equipment, photographic/electronic character generating equipment, photo-typesetting equipment, tape-operated keyboards, typecasting machines, and typesetting machines. "Platemaking" includes the photographic or other production of negatives, positives, and other materials required to transfer graphic information or data to presswork printing plates. "Presswork" includes the mass production of copies by lithographic, letterpress, flexographic, gravure, rotogravure, silk screen, engraving and counterpart embossing equipment, and similar mass production equipment and operations necessary to complete production, such as collating, gathering, folding, cutting, trimming, perforating, padding, stitching, punching, drilling, and sewing.

(6) Duplicating includes and applies to the limited production of end items by use of certain types of equipment as cited in Navy Publications and Printing Service directives. No more than 5,000 8×10'1⁄21⁄2 in. production units may be duplicated of any one page (one side of one sheet). Duplicating of

(b) Heads of procuring activities (§ 1-201.14 of this title) shall assure that the procedures set forth below to assure integrity in procurement operations and disposal of government property are followed by activities reporting to them:

(1) Perform periodic, selective reviews of procurement and property disposal operations and related areas to determine that an adequate system of checks and balances has been provided. Reviews shall include, but not be limited to, such areas as determination of requirements, preparation and adoption of procurement specifications and standards, qualification approval, solicitation and evaluation of bids and proposals, cost/price analysis and negotiations, award of contract, ordering under open-end procurements, contract administration, contract termination, receipt control, administration of payment, transportation, inventory control and sale and disposal of government property.

(2) Conduct frequent spot-checks to determine:

(i) Compliance with existing safeguards by all military and civilian personnel, and

(ii) The need for possible modification of existing procedures as a result of changed conditions.

(3) Assure that all personnel fully understand the distinctions that have been drawn between proper and improper modes of conduct as defined in SECMAVINST 5370.2 series (Part 721 of this title). Provide opportunities for meaningful discussion, placing special emphasis on conflict of interest matters of the issues involved.

(4) Identify for special management attention those positions requiring continued, close association with the contractor or his representatives and involving duties or decisions which strongly affect the contractor's interest.

(5) Consider adherence to high standards of integrity in selecting personnel for promotion and in making assignments to key positions.

(6) Take prompt administrative steps or assist appropriate authorities in criminal or civil actions against military and civilian personnel involved in fraudulent activites. Similarly, provide

necssary assistance and information in reply to inquiries concerning suspected wrong-doing or abuse of authority. In this regard, forthright cooperation with the Federal Bureau of Investigation and the Naval Investigative Services is essential.

[41 FR 55511, Dec. 21, 1976]

§ 737.1-111-51 Reports under the gratuities clause.

(a) In implementation of the Gratuities clause in § 7.104-16 where a Navy procuring activity has reason to believe that a gratuity (in the form of entertainment, gifts or otherwise) was offered or given by a contractor or by his agent or representative to any officer or employee of the Government with a view toward securing a Navy contract (other than a contract for personal services) or securing favorable treatment with respect to the awarding or amending, or the making of any determination with respect to the performing of such contract, the procuring activity having cognizance of the contract shall forward a full report of the alleged infraction, properly documented, to the Chief of Naval Material (MAT09G). After review of the information in such report, the Chief of Naval Material, when in his opinion the facts of the case warrant, is authorized to schedule the matter for hearing in accordance with the provisions of "Rules for Notice and Hearing under the Gratuities Clause" (ASPR Appendix D) and this NPD.

(b) The Chief of Naval Material may establish, at such time as he deems proper, a board to give notice of hearings, to conduct hearings, and to make the findings of fact and recommendations provided for in ASPR Appendix D. The Board shall consist of a chairman and two other members, one of whom shall be a person trained in the law, and will be given an appropriate designation by the Chief of Naval Material. In the performance of its functions, the board shall have all the authority conferred on the Secretary of the Navy by statute or by the prescribed contract clause and all actions of the board in this respect shall be in

8737.1-113 Standards of conduct.

§ 737.1-113-2 Organization conflicts of interest.

A copy of the solicitation notice and of each clause incorporated in a contract implementing the policy set or by forth in § 1.113-2 shall be forwarded to the Chief of Naval Material (Mat 021).

offi

(a) As used throughout the NPD, the words and terms defined in § 1.201 have the same meanings as set forth in §1.201, unless (i) the context in which they are used requires a different meaning, or (ii) a different definition is prescribed for a particular NPD Section, paragraph, or portion thereof: Provided, That when authority is delegated to, or action is required of, a "procuring activity" or "The Head of a Procuring Activity" those terms shall refer only to Navy procuring activities and to Heads of Navy Procuring activities as identified in §§ 1.201-14 and 1.201-7, respectively.

(b) Definitions in ASPR which apply only to a particular portion of the NPD.

(c) As used in the NPD:

(1) “Navy” refers to the Department of the Navy, including the Marine Corps;

(2) [Reserved]

(3) "Contracts division" and "contract division" (whether or not the initial letters are capitalized), when used in connection with a procuring activity or field purchasing activity not having a division so named, means the division, branch or other organizational entity, equivalent to the contract division of a system command, in which contracting officers operate to place contracts for the activity.

(4) Publications include, but are not limited to, end items of printing as defined herein, and any book, pamphlet, directive, form, manual, folder, brochure, periodical magazine, newspaper, microcard or other microform, technical report, chart, poster, map, drawing, tag, placard, or blankbook, printed by or for the Department of the Navy, regardless of content, format, quantity, distribution, or intended end use. (Exception: Publications produced by suppliers and regularly carried as stock items for commercial sale or use are not included in this definition.)

(5) Printing includes and applies to the processes of composition, platemaking, presswork, and binding; the equipment used in such processes as cited in Navy Publications and Printing Service directives; and the end items, with exceptions as noted above, produced by such processes and equipment. "Composition" includes the production of text, display, tabular matter, and similar graphical/lexical information or data on film, paper, tape, or other materials by manual or tape-operated cold type composing equipment, photographic/electronic character generating equipment, photo-typesetting equipment, tape-operated keyboards, typecasting machines, and typesetting machines. "Platemaking" includes the photographic or other production of negatives, positives, and other materials required to transfer graphic information or data to presswork printing plates. "Presswork" includes the mass production of copies by lithographic, letterpress, flexographic, gravure, rotogravure, silk screen, engraving and counterpart embossing equipment, and similar mass production equipment and operations necessary to complete production, such as collating, gathering, folding, cutting, trimming, perforating, padding, stitching, punching, drilling, and sewing.

(6) Duplicating includes and applies to the limited production of end items by use of certain types of equipment as cited in Navy Publications and Printing Service directives. No more than 5,000 8×10'1⁄2 in. production units may be duplicated of any one page (one side of one sheet). Duplicating of