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equipment if the sale or lease is conditioned on an agreement or understanding that the purchaser (lessor) of the storage tanks will purchase carbon dioxide from either the storage tank supplier or any source designated by the storage tank supplier.

(b) Accordingly, requirements for the furnishing of carbon dioxide storage tanks and the liquid carbon dioxide to fill such tanks shall be solicited, evaluated and awarded independently of one another. The two may be solicited and awarded in the same transaction provided they are identified and evaluated separately.

(c) The solicitation document for these requirements shall stipulate that "all-or-none" bids will be rejected as nonresponsive. Further, the solicitation shall not require that the bidder quote on both items.

(d) Attention is invited to § 5.102-3, which makes mandatory with certain exceptions the purchase of FSC 6830 (which includes carbon dioxide) from Federal Supply Schedules.

§ 737.1-363 Participation by contract administration officers in RFP preparation evaluation of proposals and source selection.

(a) When feasible, contract administration offices shall be requested to review, prior to completion of drafting, the RFP (Request for Proposal), Schedule, General Provisions, Specifications, or other provisions of proposed major weapon systems contracts for the purpose of planning for contract administration and for determining the adequacy of such contractural requirements for contract administration purposes. In addition, contract administration offices may be requested to participate in the technical evaluation of proposals and in source selection, in order to provide guidance to the purchasing activity on contract administration matters and on the ability of the contractor to perform the type of work contemplated. Contract administration offices may also be requested to participate in negotiation. Such participation is in addition to field pricing support provided the PCO (Procuring Contracting Officer) as required by § 3-801 of this Title 32.

(b) The selection of one or more contract administration offices to participate in procurement document preparation, evaluation of proposals and source selection, should be based on the familiarity of their personnel with the kind of weapon system to be procured and/or the likelihood of award to a contractor under their cognizance. Contract administration offices may be requested to participate similarly in procurements for items other than weapon systems when considered necessary by the procuring activity, purchasing office, project manager or requiring activity.

[41 FR 55511, Dec. 26, 1976)

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§ 737.1-401-51 Responsibility of the Naval Supply Systems Command.

(a) General. Only The Naval Supply Systems Command has cognizance of the procurement of materials and services throughout the Department of the Navy for which no other procuring activity, office, or command is otherwise delegated procurement authority.

(b) Consolidated Bid Room Facilities. (1) Under the direction of the Naval Supply Systems Command, a common bid room shall be established and operated by the Naval Regional Procurement Office, Washington, for all formally advertised procurements of the Systems Command Headquarters. Bid rooms will no longer be operated by Systems Commanders, except that the Commander, Naval Facilities Engineering Command may operate a separate bid room for formally advertised construction contracts.

(2) Common bid room functions shall be as follows:

(i) Naval Regional Procurement Office, Washington:

(A) Issue invitations for bids, complete with applicable specifications, drawings, and other descriptive data (unless the required specifications, drawings, or descriptive data is to be mailed directly from the Systems

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(D) Furnish, or arrange to have furnished, upon request from prospective bidders, bid forms and applicable specifications, drawings, and descriptive data.

(ii) Systems Commands:

(A) Prepare invitations for bids (including assignment of the Systems Commands Procurement Instrument Identification Number and opening date) and submit in a form ready for reproduction;

(B) Furnish NRPO Washington a list of bidders to be solicited and address labels;

(C) Provide in a mailable condition sufficient copies of applicable specifications, drawings, and other descriptive data required for distribution to the initial list of bidders plus copies to satisfy expected additional requests. If desired, specifications, drawings, and descriptive data may be mailed directly by the Systems Commanders concurrently with the issuance of the invitation for bid;

(D) Synopsize proposed procurement and award;

(E) Prepare and furnish to NRPO Washington in a form ready for reproduction any required modification to an invitation for bid;

(F) Evaluate bids, make affirmative determinations of responsibility, and award contracts; and,

(G) Advise Naval Regional Procurement Office, Washington for awards made (or other actions if no award is made under an IFB).

$737.1-401-52 Responsibility of Office of

Naval Research for research contracts with educational and nonprofit institutions.

Paragraph 5a(12) of SECNAV Instruction 5430.20B of 18 November 1969 is set forth below:

1. The Chief of Naval Research shall be responsible for negotiation, preparation, execution, administration and scientific and technical cognizance of all research contracts with educational and nonprofit institutions. The Chief of Naval Research may authorize other naval activities to assume responsibility for any or all of the aforementioned functions as circumstances warrant. The Chief of Naval Research may assume the responsibilities listed above for development contracts with educational and non-profit institutions at the request of each systems command, bureau or office.

§ 737.1-401-53 Naval Facilities Engineering Command (NAVFACENGCOM) cognizance of public works and civil works.

(a) Responsibility for Construction. (1) Civil Works. SECNAV Instruction 4860.41A and NAVMAT Instruction 4860.13A make NAVFACENGCOM responsible for construction, including related design, at Navy-owned-contractor operated facilities which would be considered public works or public utilities at a shore activity of the Naval Establishment. Such construction shall hereinafter be called Civil Works.

(2) Summary of Responsibilities. NAVFACENGCOM is responsible for the administration of all contracts for Public and Civil Works and for the Civil Works portions of facilities and other contracts, for all construction work otherwise accomplished, and particularly for ensuring that applicable legal requirements have been satisfied and that the work will meet the requirements of the Navy.

(b) Delegation of Responsibility for Administration of Construction. Current legislation provides that delegation to another Government agency or bureau of the responsibility outlined in paragraph (a) of this section for public works, as authorized by annual authorization acts, within the United States or its possessions, must be approved by the Secretary of Defense. Where it is considered to be in the best interests of the Navy that such a public works project be administered by a systems command or office other than NAVFACENGCOM, a request shall be forwarded to the Assistant Secretary of the Navy (I&L) via NAV FACENGCOM. Before forwarding a request for delegation of responsibility

(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 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

(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

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(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 8x10'21⁄2 in. production units may be duplicated of any one page (one side of one sheet). Duplicating of

end items consisting of two or more pages may not exceed 25,000 8×10% in. production units in the aggregate. The content, editorial and physical format, and distribution of duplicated items shall be in accordance with public law and regulations governing printed items. (See also § 737.1-108-51(c)(v), NAVSO P-35; § 737.1-454, Responsibilities of the NPPS; § 737.5-601, only to paragraphs (4), (5) and (6) of this section.)

(7) "Field contract administration office" as used in this NPD means one of the Army, Navy, Air Force or DCAS contract administration Services Components (DOD 4105.59H). Such an office is also referred to as a contract administration service (CAS) compo

nent.

(8) "Administrative Contracting Officer (ACO)," insofar as Navy field contract administration offices are concerned, is the Commanding officer officer-in-charge who is currently a contracting officer (§ 1.201-3 of this title). The term also includes any authorized representative of the Commanding officer officer-in-charge acting within the limits of his contracting officer authority.

[40 FR 1402, Jan. 7, 1975, as amended at 41 FR 55511, Dec. 21, 1976]

8737.1-300 General policies.

§ 737.1-302 Sources of supplies and services.

§ 737.1-302-2 Proposal evaluation and source selection.

SECNAV Instruction 5000.1 (Subj: System Acquisition in the Department of the Navy) of 13 March 1972, establishes Department of the Navy procedures and policies on evaluation of competitive proposals and source selection. Activities and contractors may obtain a copy of the Instruction by submitting a letter request to the Naval Publications and Forms Center, 5801 Tabor Avenue, Philadelphia, Pa. 19120.

§ 737.1-320 Industrial security.

(a) General. Security cognizance for contractor facilities participating in the Defense Industrial Security Program (DISP) is assigned to the De

fense Supply Agency. Security assignments are made on a geographic basis and security cognizance is exercised by the various Defense Contract Administration Services Regions (DCASRS). The geographical areas of responsibility are listed in Appendix VII to the DOD Industrial Security Manual, DOD 5220.22-M. Procuring activities shall be familiar with the DOD Information Security Program Regulation (DOD 5200.1R) with Department of the Navy Supplement (OPNAVINST 5510.1 Series), the DOD Industrial Security Regulation, DOD 5220.22-R (promulgated by OPNAVINST 5540.8 Series), as well as the DOD Industrial Security Manual and when appropriate, the Cryptographic Supplement to the Industrial Security Manual, DOD 5220.22-S when transmitting classified information to contractors.

(b) Contract Administration Services Components Industrial Security Responsibilities. Although DSA administers the DISP for the Department of Defense, under the DOD Plant Cognizance Program, Navy Contract Administration Services (CAS) components (see DOD 4105.54-H for list of activities) perform those ACO industrial security functions normally performed by the DCASRC where the Navy has cognizance. These ACO industrial security functions are contained in the Industrial Security Manual and the Regulation. An abbreviated listing of responsibilities may be found in Appendix C of the Industrial Security Regulation.

8 737.1-321 Warning notation on classified matter distributed to industry.

(a) Article 4-603, DOD Directive 5200.1-R, July 1972 (Information Security Program Regulation), Article N4-603, OPNAVINST 5510.1D Sep 1972 (Navy Supplement to DOD 5200.1-R and paragraph 11.b(1) of the Department of Defense Industrial Security Manual for Safeguarding Classified Information (Attachment to DD Form 44) require the following notation to be affixed to classified matter when disseminated outside the Executive Branch of the Government.

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