(5) Any special conditions or requirements for notification to or consent or approval by the Contracting Officer (such as intracompany transfers, critical or programmatically important subcontracts);

(6) Other conditions such as:

(i) Contract terms that need to be changed; and

(ii) Advice that termination of approval will occur upon a change in the procurement system unless approved by the Contracting Officer; and

tion.

(7) A statement that approval may be withdrawn at any time at the Government's discre

(c) The effect of the approval; (any increase in dollar or any other limitations) will be based upon the degree of confidence in the contractor's procurement system as determined through the review and the need to maintain a review of the most significant subcontracts, subject to the limitations in §9–50.302–5(b).

(d) Approval of a contractor's procurement system does not offset the requirement for advance notification except as set forth in §9-3.901.

(1) Advance notification for information purposes is required in the following instances: (i) Noncompetitive procurements over $25,000

(ii) Intracompany transfers or payments over $10,000; and

(iii) Direct reimbursement of costs over $500.

(2) The advance notice shall contain, as a minimum, a description of work, estimated cost, type of contract or reimbursement provisions, and extent of anticipated competition. Such notification shall be forwarded to the Contracting Officer as soon as the information is known, which normally will be before solicitation. The Contracting Officer may at any time request additional information that must be furnished promptly and prior to award of the subcontract. (e) When approval of the contractor's procurement system is withheld or withdrawn, the recommendations for correction of those deficiencies which will permit (after correction and assuming that other areas previously found to be satisfactory are not deficient) the granting or reinstatement of approval should be furnished to the contractor in writing. The contractor shall be requested to furnish as soon as possible (normally within two weeks) a time-phased plan for correction of deficiencies. Periodic status reports shall be required to be submitted to the Contracting Officer. The contents of reports of contractor procurement systems reviews, and other information disclosed by the contractor during the review shall be divulged only to those Government personnel having a need to know. (However, the Contracting Officer will furnish three copies of the approved review report (less the recommendations to the Government) to the contractor for information purposes.)

(f) When recommendations are made for improvement of an approved system, the contractor shall be requested to reply as soon as possible (normally within two weeks) as to concurrence or position with respect to the recommendations.

(g) Copies of notifications granting, continuing, withholding, or withdrawing approval of a contractor's procurement system, copies of recommendations for improvement of an approved system, and information received from the contractor pursuant to (d) and (e) above, shall be transmitted to the Director, Office of Procurement Management (attn. PR-32).

§9-23.109 Disclosure of approval status of a contractor's procurement system.

Upon request, a prime contractor may be informed that the procurement system of a proposed subcontractor has been approved under Government prime contracts, if such is the case. The prime contractor shall be cautioned that approval status is furnished only as of the date of notification and that the Government does not assume the responsibility to keep the prime

contractor advised of any change in the approval status of the proposed subcontractor's procurement system.

§9-23.110 Surveillance of the contractor's approved procurement system.

(a) The Contracting Officer must maintain a sufficient level of surveillance to assure that the contractor continues to effectively manage the procurement program. The Contracting Officer shall develop a surveillance plan and submit it to the Director, Office of Procurement Management (attn. PR-32) for approval. The surveillance plan shall encompass all phases of the system (pre-award and post-award performance, contract completion and close out) and all operations which impact procurement and subcontracting. Surveillance shall consider all of the elements of the contractor's procurement system including, but not limited to, those items evaluated in the initial review.

(b) Certain subcontractors may require additional surveillance because of the flowdown of policies on cost, schedule, and technical performance.

PART 9-30 CONTRACT FINANCING

$9-30.000 Scope of part.

This part implements and supplements FPR Part 1-30 for use in the placement and administration of contracts for the procurement of materials and services by or for the account of DOE.

Subpart 9-30.1 Forms of Financing

§9-30.102 Guaranteed loans-description.

The following implements the FPR stating DOE procedure, criteria, and policies:

(a) Procedure. The procedure for obtaining a guaranteed loan is essentially the same as the procedure for obtaining a conventional loan. The contractor or prospective contractor requiring additional funds to perform the contract applies to its bank for a loan or credit of the required amount. The amount may be such that the bank can grant the loan for its own account. However, if for any reason the bank deems it necesssary to require a guarantee, the bank may apply to DOE through the appropriate Federal Reserve Bank for the required guarantee. DOE certification of guaranteed loan applications shall be made only by the Head of the Agency or designee authorized for that purpose.

(b) Criteria. The following criteria apply to the approval of guaranteed loans by DOE: (1) The materials or services to be furnished by the contractor are necessary to the Government's interest.

(2) Such materials or services cannot practicably be obtained from alternate sources without delaying or impeding the Government's interest, except that no small business concern shall be held ineligible for the issuance of such guarantee by reason of alternative sources of supply.

(3) The contractor has demonstrated its inability to obtain the necessary financing in conventional credit channels without the guarantee.

(4) There is reasonable assurance that the loan can be repaid.

(5) The contractor is competent to perform the contract. Eligibility under subparagraphs (1), (2), and (5) of this paragraph is determined on the basis of findings by the appropriate procuring activity. Eligibility under subparagraphs (3) and (4) of this paragraph is determined by the Controller, based on information contained in the application, the Federal Reserve Bank's report, and information furnished by the procuring activity concerned.

(c) Policies. The following policies governing the exercise of its loan guarantee authority have been established by DOE:

(1) The use of the loan guarantee authority is not restricted to contracts or subcontracts of any particular types or classes. Each case is to be evaluated on its own merits and under the particular circumstances applicable thereto.

(2) The fact that a contract has been awarded as a result of competitive bidding should not, of itself, render the loan ineligible for guarantee by DOE if the contractor is financially responsible and its need for working capital is the result of the impact of the defense program or any other DOE program for which guaranteed loans are authorized.

(3) The guarantee authority should, in general, not be used in connection with loans to contractors required to furnish performance bonds, except in those cases in which the time likely to be required for the surety or DOE to take over in the event of default will result in delays