(viii) Arrange for required audit and other external assistance (for example, in those cases where contract award is dependent upon the contractor having an adequate cost accounting system for proper postaward administration of the contract, the cognizant audit agency shall be responsible for the system review, evaluation, and conclusive recommendation. DD Form 1524-4 is pro

vided for this purpose.);

(ix) Coordinate any purchasing office participation in the pre-award survey:

(x) Receive and review reports of the individual team members for completeness and adequate substantiation;

(xi) Resolve questions regarding technical details with responsible specialists;

(xii) Report those applicable procedures of the prospective contractor which have been reviewed by Government personnel (e.g., purchasing system, estimating system, accounting system, control of Government property, and quality program); and

(xiii) Assemble all necessary survey data into a report, including a recommendation as to award, and submit it to the Chairman of the Pre-Award Survey Review Board.

K-203.3 Designation and responsibilities

of team coordinator and members. (a) When an on-site survey by a team is necessary, members should include specialists qualified to evaluate all appropriate phases of the firm's capabilities. The team coordinator shall:

(i) Arrange for the team's visit to the site;

(11) Conduct team conferences for the purpose of

(A) Arriving at uniform interpretations prior to holding discussions with the prospective contractor's management;

(B) Briefing team members on their interviews and discussions with officials of the firm prior to making an on-site survey. (Members shall not make reference or comment relative to the possibility that the award will or will not be made to the prospective contractor. This does not preclude discussion with a prospective contractor of questionable areas which in the opinion of the team member require clarification. Information obtained during the survey will be treated in strict confidence and divulged only to those Government representatives having a need to know.); and

(C) Arranging for discussions among members during and after the on-site survey to assure that evaluations by individual specialists are integrated, coordinated, and complete; and

(iii) Otherwise direct the efforts of the team.

(b) When an on-site survey is required for only one aspect of the prospective contractor's capability, a qualified specialist will be designated to conduct the on-site portion of the survey. One specialist may be designated to investigate more than one aspect when it is within his capability.

K-203.4 Pre-Award Survey Review Board. (a) A Pre-Award Survey Review Board shall be formally established to review and approve survey reports prior to transmittal to the purchasing office.

(b) The Board shall be composed of senior specialists from each of the major organizational segments of the contract administration office normally concerned with preaward surveys, one of whom shall be designated Chairman. Flexibility of membership shall be provided by designating alternates for membership and by establishing the criteria or conditions governing the need for occasional special technical representation. Membership on the Board shall be in addition to the members' regular duties.

PART 3-SURVEY

performance.

K-300 Steps for survey The three steps in performing a pre-award survey are the:

(1) Preliminary analysis;

(11) Development and evaluation of information; and

(111) Preparation and review of the preaward survey report.

K-301 Preliminary analysis. The request (DD Form 1524, sections I, II, and III) shall be reviewed to establish basic administrative information and the factors to be investigated. The solicitation shall then be reviewed to ascertain those general and special requirements which have a significant bearing on determining contractor responsibility. Examples are the nature of the product, applicable specifications, delivery schedule, documentation requirements, property control requirements, and financing aspects.

K-302 Development of information.(a) Review of available data. The information already available in the contract administration office pertaining to the prospective contractor and his past performance shall be reviewed. Prior preaward survey reports and contractor performance records (see 1-908.3) shall be examined and considered in support of preaward survey recommendations. If the prospective contractor has current or contemplated Government contracts, the files should be checked for information regarding similarity of product, current status of contracts, quality control experience, and financial status.

(b) Development of additional data. (1) When appropriate, the contract administration office shall supplement the data on hand with any additional information required from other Government sources and from commercial sources, such as banks, business associates, and credit rating and reporting agencies.

(2) An on-site survey shall be performed when required by 1-905.4(a), or when sufficient information is not developed as result of (a) and (b)(1) above.

(3) In each case where review of available data discloses previous unsatisfactory contractor performance in any regard, the pre

award survey shall specifically cover the extent to which action has been taken or planned by the contractor to avoid repetition. A narrative discussion shall be referenced in section III of DD Form 1524 and appended to the Form covering each deficiency area and furnishing details on the effect of each deficiency area on the contractor's ability to perform the prospective contract involved, together with reasons for all stated conclusions. Lack of evidence that the contractor was responsible for a failure to meet past contractual requirements does not necessarily indicate satisfactory performance. A persistent pattern of the contractor's need for costly and burdensome Governmental assistance (engineering, inspection, testing) that was provided in the Government's interest but not contractually required, shall be treated in the preaward survey as an element for separate narrative discussion to be appended to the Form.

Man

(b) Interview with management. agement officials of the appropriate level authorized to represent the prospective contractor should be interviewed. The prospective contractor's background shall be reviewed and as much history recorded as necessary to reflect the soundness and reputation of the firm's operation.

(1) The organizational structure of the facility is the basis for management's control and must be reviewed. Assignment of definite tasks and responsibilities should be checked.

(2) Lack of understanding or misinterpretation of the solicitation often results in delinquent contracts and leads to default actions. Therefore, the solicitation shall be discussed with prospective contractors to assure that they understand its requirements, including its technical aspects such as drawings, specifications, prototype, technical data and provisioning technical documentation (including automated data processing requirements when appropriate), testing, and packaging. Any misinterpretations of the requirements of the solicitation which could adversely affect performance, or refusal by the prospective contractor to furnish required data, should be brought to the immediate attention of the monitor by the team coordinator. The monitor shall, in turn, promptly advise the purchasing office.

(c) Investigation of resources and review of procedures. The resources which the prospective contractor intends to utilize shall be inspected, analyzed, and compared with his overall plans for performing. procedures relating to performance of the proposed contract shall be reviewed for adequacy.

His

(d) Specific factors to be considered. In the course of developing information, those factors described in K-303.2 through K-303.4 below and all others needed to provide the report and recommendations in the detail and to the extent required by the purchasing office shall be considered.

K-303.2 Production.-(a) General. The production portion of the on-site survey consists of an evaluation of the prospective contractor's ability to manufacture the product(s) in accordance with the specifications and delivery schedule of the proposed contract. To achieve the objectives of this portion of the on-site survey, the production plan shall be reviewed, production resources ascertained, and the plan related to such

resources.

The

(b) Obtaining the production plan. prospective contractor's production plan for meeting the delivery schedule specified in the proposed contract shall be ascertained. The principal milestones within the production plan shall be established, along with target dates for achievement. These target dates must support the delivery schedule of the proposed contract. The controls which will be utilized in order to gear and hold the manufacturing effort to the target dates for the principal milestones shall be analyzed for suitability.

(c) Ascertaining production resources. The information necessary to prepare DD Form 1524-1 shall be obtained by discussion with appropriate management personnel of the prospective contractor. This information shall be verified, when necessary, by physical inspection of the manufacturing plant and evaluated in terms of suitability to manufacture the required item(s).

(d) Relating production plans to production resources. When necessary, the representatives of the prospective contractor shall be requested to advise how the production resources described in sections III, IV, V, and VI of DD Form 1524-1 will be allocated and utilized in order to achieve the target dates for the principal milestones. This shall include both in-house and subcontractor production resources. Pertinent to this is an analysis of projects and contracts which will compete for utilization of those resources within the same time frame as that specified by the prospective contractor's production plan. The information developed as a result of equating the production plan and production resources of the prospective contractor should enable the contract administration office to:

(i) Conclude whether the resources which the prospective contractor is planning to use are suitable for the job;

(ii) Determine whether the prospective contractor will be capable of properly controlling, maintaining, protecting and using Government property;

(iii) Determine whether the planning and scheduling of effort will result in timely accomplishment of the principal milestones;

(iv) Conclude whether achievement of the principal milestones will result in timely delivery.

K-303.3 Quality assurance. (a) The standing of the quality assurance organization in the prospective contractor's overall organization must be evaluated. An inspection or quality control function which reports to some other organizational segment (such as Production) instead of top management may be undesirable. The experience of the company inspection or quality control personnel with the same or similar items shall be evaluated.

(b) To evaluate the prospective contractor's ability to comply with quality control or inspection requirements, the following areas shall be reviewed:

(1) Methods currently utilized to control product quality as reflected by a documented or verifiable inspection system or quality program plan;

(11) Personnel on hand and available (report both trained and untrained);

(iii) Inspection and test equipment on hand and available;

(iv) Quality, identification, and storage of materials;

(v) Physical arrangement of plant; (vi) Tool and gauge control; and (vii) Test and inspection records. K-303.4 Financial(a) General. The normal procedure for determining a prospective contractor's financial capability shall be initial pre-survey planning, followed by verification of financial data as required. The extent of the review and analysis of financial matters shall be governed by the nature of the proposed contract. In certain instances, a sound decision may be possible after a relatively simple review of a company's financial position and production commitments. Under other circumstances, a more comprehensive review and analysis will be required. The approach to financial analysis shall be consistent with the basic policies and regulations outlined in Appendix E.

(b) Procedure. Aspects to be considered in determining the prospective contractor's financial capability (DD Form 1524-3) include the following:

(1) The latest balance sheet and profit and loss statement shall be reviewed. The following are indicative of the soundness of the prospective contractor's financial structure:

(1) Rates and ratios;

(ii) Working capital as represented by current assets over current liability; and

(iii) Financial trends such as net worth, sales and profit.

(2) The method of financing the contract shall be evaluated. Where sources of outside financing, other than the Government, are indicated, their availability should be verified.

(3) When financial aid from the Government is to be obtained, the necessity should be verified. Review shall be made concern

ing the applicability of such financing as progress payments or guaranteed loans. K-304 Evaluating data and preparing the report-(a) Findings of team members. When the required information has been gathered, each individual participant shall analyze it and evaluate the prospective contractor's capability to perform with respect to the functional element(s) investigated. Each participant shall then provide his findings to the monitor on the appropriate Part(s) of DD Form 1524. Where a negative reply is recorded, or where doubt exists, an explanation must substantiate the entry. If a detailed analysis is needed or additional significant information is pertinent, the Form should be supplemented by a narrative report.

(b) Monitor's evaluation and recommendation. Based on all the information received from the team members, the monitor shall thoroughly review and evaluate the findings and recommendations, and forward the report to the Chairman of the Review Board with (1) a summary of his findings. and (ii) his recommendation concerning award. A recommendation for partial or no award shall be supported by a statement of justification and shall, where the prospective contractor is a small business concern, be coordinated with the small business specialist at the contract administration office.

(c) Review Board action. Upon receipt of each pre-award survey report, the Chairman of the Review Board shall determine the extent of Review Board action. The requirements of K-203.4 above may be satisfied at the discretion of the Chairman by any of the following:

(i) Action by the Chairman alone;

(ii) Informal contact by the Chairman with one or more of the Board members; or (iii) Formal action by the entire Board.

(d) Final actions. Following the action by the Review Board, the monitor shall forward the report direct to the purchasing office. When advance reports are made by telegraphic communication or telephone. they shall be confirmed by mail without delay. The monitor shall follow up on any reqiurements for the submission of supplemental reports.

[30 F.R. 12021, Sept. 21, 1965, as amended at 31 F.R. 1052, Jan. 27, 1966; 31 F.R. 7814, June 2, 1966; 32 F.R. 569, Jan. 18, 1967; 34 F.R. 13863, Aug. 29, 1969; 36 F.R. 7963, Apr. 28, 1971; 36 F.R. 21176, Nov. 4, 1971]

§ 30.8 Appendix I-Material Inspection and Receiving Report (DD Forms 250, 250c, and 250-1).

(b) MIRRS are used to document Procurement Quality Assurance, Acceptance of supplies and services, and shipments; they are used by receiving, status control, technical, contracting, inventory control, requisitioning, and paying activities. MIRRS shall not be used for:

(1) Shipments by subcontractors where direct shipment is not made to the Government; or

(11) Shipment of contract inventory.

(c) The contractor shall prepare the MIRR with the exception of those entries required to be completed by the authorized Government representative.

re

(d) To preclude delays in shipments, payments, and avoid multiple corrections, contractors are encouraged to consult with the cognizant Government representative garding implementation of this appendix. (e) Standard abbreviations may be used. (f) Where optional methods are permitted in this appendix, the exercise of the option shall be at the discretion of the contractor. I-102 Applicability.

(a) The provisions of this appendix are applicable to supplies or services procured by the Department of Defense (DoD) when the Material Inspection and Receiving Report clause (see 7-104.62) is included in the contract.

(b) When the Department of Defense provides PQA and/or Acceptance services for non-DoD activities, the MIRR shall be prepared in accordance with the instructions of this appendix unless otherwise specified in the contract.

I-103 Use.

(a) The DD Form 250 is a multipurpose report used for:

(1) PQA-to provide evidence of PQA at origin or destination;

(11) Acceptance-to provide evidence of acceptance at origin or destination;

(iii) Packing List;

(iv) Receiving;

(v) Shipping;

(vi) Contractor Invoice;

(vii) Contractor Commercial Invoice Support; and

(viii) Contractor Internal Use.

(b) The DD Form 250-1 is used when bulk movements of petroleum products are made by tanker or barge to cover:

(1) Origin acceptance of cargo; (ii) Shipment product;

of Government-owned

NOTE: This Form may also be used to transmit quality data to the point of acceptance in the case of origin inspection on FOB destination deliveries or pre-inspection at product source. When so used, it shall be annotated "inspected for quality only."

(iii) Destination acceptance of cargo; (iv) Receipt of Government-owned product.

I-104 Application. (a) DD Form 250:

(1) The DD Form 250 shall be used for delivery of contract line, subline, exhibit line, or exhibit subline items.

(2) If the "Shipped To," "Marked For," "Shipped From," "Mode of Shipment," "PQA” and “Acceptance" data are the same for more than one shipment made on the same day under the same contract, one MIRR may be prepared to cover all such shipments.

(3) If the volume of the shipment precludes the use of a single car, truck or other vehicle, a separate MIRR shall be provided for the contents of each vehicle.

(4) When a shipment is consigned to an Air Force activity and the shipment includes items of more than one Federal Supply Class or Materiel Management Code (MMC), a separate DD Form 250 shall be prepared for items of each of the Federal Supply Classes or MMC included in the shipment. However, the cognizant Government representative may authorize a single DD Form 250 listing each of the Federal Supply Classes or MMC included in the shipment on a separate continuation sheet. The MMC appears as suffix to the Federal Stock Number (FSN) applicable to the item.

(5) Consolidation of Petroleum Shipments on a single MIRR

(1) Continental United States: Multiple car or truck load shipments of petroleum made on the same day, to the same destination, against the same contract line item, may be consolidated on one MIRR. To permit verification of motor deliveries, each load shall be assigned a load number which can be identified to the shipment number in Block 2 of the DD Form 250. Individual loads shall be accompanied by a shipping document (commercial or Government) showing as a minimum, the shipper, shipping point, consignee, contract and line item number, product identification, gross gallons (bulk only), loading temperature (bulk only), API gravity (bulk only), identification of carrier's equipment, serial number of all seals applied, and signature of supplier's representative. When acceptance is at destination, the receiving activity shall retain the shipping document(s) to verify the entries on the consignee copy of the DD Form 250 forwarded by the contractor (ref: I-401, Table I) prior to signing Block 21B.

(ii) Overseas: The same criteria as for continental United States applies except the consolidation period may be extended to a time frame acceptable to the receiving activity, shipping activity, Government finance office and the authorized Government Representative having cognizance at the contractor's facility. In addition, more than one

contract line item may be included provided the "Shipped To," "Marked For," "Shipped From," "Mode of Shipment," "PQA" and "Acceptance" data are the same for all. (b) DD Form 250-1:

(1) A separate form shall be used for each tanker or barge cargo loaded. More than one barge in the same tow may be reported on a single form if on the same contract and consigned to the same destination. When liftings involve more than one contract, separate forms shall be prepared to cover the portion of cargo loaded on each contract. A separate form shall be prepared for each product or grade of product loaded.

(2) A separate document shall be used for each tanker or barge cargo and each grade of product discharged. More than one barge in the same tow may be reported on a single form if from the same loading source. I-105 Forms.

(a) Contractors may obtain from the Contract Administration Office, upon request, and at no cost, MIRR forms required for use in connection with Government contracts.

(b) Contractors may print forms provided that the format and dimensions (DD Forms 250 and 250c-81⁄2" x 11", DD Forms 2501-81⁄2" x 14") are identical to the MIRR forms printed by the Government and that the forms are cast to provide for 78 characters per printed image horizontally and 62 lines vertically border to border for the DD Form 250, and 61 lines vertically border to border for the DD Form 250c.

I-106 Reproduction. This appendix may be reproduced in whole or in part.

PART 2-PQA ON SHIPMENTS BETWEEN
CONTRACTORS

I-201 Instructions. The suppliers' commercial shipping document/packing list shall be used to indicate performance of required PQA actions at origin on shipments between the prime contractor and his subcontractors/ suppliers or between subcontractors/suppliers on the same prime contract if direct shipment is not made to the Government. The following entries shall be made on the appropriate supplier's commercial shipping document/packing list (see Block 21A instructions):

PQA of listed items has been made by me or under my supervision and they conform to contract except as noted herein or on supporting documents.

(Date)

(Signature of authorized Government representative)

(Typed name and office)

Distribution for Government purposes shall be one copy:

(i) With shipment;

(ii) For the Government representative at consignee (via mail); and

(iii) For the Government representative at consignor.

PART 3-PREPARATION OF THE DD FORM 250 AND DD FORM 250c

I-301 Preparation Instructions. DD Form 250 (MIRR) and DD Form 250c (Continuation Sheet) shall be prepared as follows. (a) General:

(1) The date, where required, shall utilize seven spaces consisting of the last two digits of the year, three alphabetic month abbreviation, and two digits for the day. For example, 71AUG07, 71SEP24;

(ii) The address, where required, shall consist of the name, street address/P.O. Box, city, state and ZIP Code;

(iii) The Defense Organizational Entity System (DOES) code or equivalent Department of Defense Activity Address Directory (DoDAAD) code, when contained in the contract, shall be entered to the right of and on the same line as the word "CODE" in Blocks 9 through 14;

(iv) When the DD Form 250c is used, the data entered in the blocks at the top of the form shall be identical to the comparable entries as shown in Blocks 1, 2, 3, and 6 of the DD Form 250;

(v) Overflow data of the DD Form 250 shall be entered in Block 16 or in the body of the DD Form 250c with appropriate block across reference. Additional DD Form 250c sheets, solely for continuation of Block 23 data shall not be numbered or distributed as part of the MIRR.

(b) Classified Information. Classified information shall not be included in or appear on the MIRR, nor shall the MIRR be classified.

Block 1-Procurement Instrument Identification (Contract).

(a) Enter the 13 position alpha-numeric basic Procurement Instrument Identification (PII) number of the contract. When applicable, enter the four alpha-numeric call/ order serial number which is supplementary to the 13 position basic PII number, i.e., delivery orders under indefinite delivery type contracts, orders under basic ordering agreements and calls under blanket purchase agreements. This number shall be entered as shown in the examples below. Except as indicated in (b) below, do not enter supplementary numbers used in conjunction with basic PII numbers to identify (i) modifications of contracts and agreements or (ii) modifications to calls/orders or (iii) docu