(Nov. 1961)

If a bid or proposal submitted in response to this invitation is favorably considered, a survey team may contact your facility to determine your ability to perform. Current financial statements and other pertinent data should be available at that time if not already on file with the Air Force Systems Command. The team may also evaluate your system for determining the financial and technical ability of your proposed subcontract or procurement sources to perform.

(3) The PCO will make, sign, and place in the contract file the necessary determination required by § 1.904-1 of this title. Except as provided in subparagraph (4) of this paragraph, an FCR, SSS, or SSSB recommendation will constitute sufficient basis for either an affirmative or negative finding by a contracting officer. See also § 1001.902–1(c). The FCR, SSS, or SSSB report and supporting data made will be attached to the determination. If additional explanation of an FCR is required, the PCO will request the FCR activity to furnish any data he requires before making a determination. If the PCO is aware of factors that may not have been considered by the FCR activity, he may request a review of the FCR in the light of such information before making a determination. In making the determination, the PCO through channels prescribed by his command, may reject an FCR recommendation, provided clear and compelling circumstances dictate such action. Complete documentation is required. The FCR serial number as furnished by the FCR activity will be shown on the contract file cover sheet. If an FCR was not required "FCR not required" with the specific applicable AFPI section relied upon will be shown on the contract file cover sheet.

(4) Negative FCR, SSS, or SSSB recommendation with respect to "capacity" or "credit" of a small business concern (§ 1.701 of this title) require special handling. See § 1.705-6 of this title. (See also §§ 1001.705-6, 1001.902-1(c), and 1001.950.) The fact that the SBA has issued a Certificate of Competency as to the capacity or credit of a small business concern does not relieve the contracting officer from the responsibility for certifying that the prospective contractor is responsible as to the other factors of responsibility, i.e. questions Three, Five and Six of the FCR as applicable. (See 1001.905-1(a).) Cer

(a) See § 1001.902 (d). A complete FCR consists of answers to the following questions, as applicable. Replies will be either "affirmative," "negative," or "qualified." A “qualified" reply is an "affirmative" subject to certain conditions being met. “Qualified” replies must indicate clearly the action necessary, and the activity responsible, to satisfy the conditions. If the conditions are not met, the reply will be considered negative. Negative or qualified answers must explain the negation or qualification. Replies will be arranged in the same order as the questions and will be identified by the question number.

(1) One: Is the prospective contractor considered capable of performing the proposed contract taking into consideration:

(i) Facilities: The required quality and quantity of machine tools, production and test equipment, manufacturing and warehouse areas, and material handling devices necessary to complete the work or ability to obtain them. (See § 1.903-3 of this title.) When the IFB/RFP states that Government facility support will be available, the extent of such support must be determined. A dollar estimate of facility support required should be indicated when applicable.

(ii) Production and engineering capabilities: The necessary experience and organization to perform present and projected production and engineering load. An understanding of the production and engineering specifications. Proper alignment of available facilities.

(iii) The delivery schedule: The backlog and anticipated workload measured against the planned maximum capacity required during the performance period. Past and current record of meeting delivery schedules insofar as related to any factor under questions One or Two of the FCR. On advertised procurements see § 1.305-4 of this title. If the bid is responsive to the IFB delivery requirements, and the bidder is deemed capable of meeting the delivery terms offered in his bid, the answer

should be affirmative. If a bidder cannot meet his proposed schedule but can deliver within the required schedule, a qualified answer should be given and the contracting officer notified of that fact. If it is determined that a bidder cannot meet the required schedule, the answer should be negative.

(iv) Availability of material: Ability to obtain and maintain the necessary inventory of supplies and component parts. Planned sources for purchase of materials, component parts, and services, including subcontracting, required to support the proposed contract. Adequacy of system for determining technical and financial ability of subcontractor's procurement sources to perform. (See § 1.906 of this title.)

The

(v) Availability of manpower: quantity and quality of labor requirements. The necessary organization and management controls.

(vi) Quality control capabilities: The necessary experience, organization and technical qualifications to provide and maintain an adequate system for control of quality for manufacturing, supplying, or overhauling the items called for. Thoroughly understanding the specifications and contract requirements for inspection, test, and control of quality throughout purchasing, subcontracting, production, storage, shipment, and maintenance. The contractor must demonstrate a sound management approach to the control of quality and experiences sufficient to indicate a capability to perform satisfactorily on the proposed contract. This includes the contractor's responsibility for GFAE and GFP.

(2) Two: Does the prospective contractor have sufficient financial stability to perform the contract?

(i) See Part 163, Subchapter E of this title and § 1001.902-3.

(ii) If Government financial assistance in the form of a loan guarantee, unusual progress payments, or advance payment will enable the contractor to perform state: "Yes, if (guaranteed loan) (progress payments * * * percent of incurred costs) (advance payments) are provided by the Government," and route to AFSC (ASXKM) WPAFB, Ohio for obtaining of necessary approvals. If the name of the prospective contractor is on the Financial Control List (see paragraph E-216, § 1030.5 of this chapter) and if, in the opinion of the activity performing the F'CR, the contractor is

able to perform under the proposed contract, issue a qualified clearance as follows: "Yes, subject to approval by AFSC (ASXKM) WPAFB, Ohio."

(iii) If the prospective contractor requests customary progress payments (see Part 163, Subchapter E of this title) and is otherwise entitled to a financial clearance, the answer to question "Two" will be "Yes."

(iv) Send a copy of the completed AFPI Form 63C with case history if necessary to explain the answer regarding financial stability to AFSC (ASXKM) WPAFB, Ohio, at time of reply. If the answer to question Two is negative or qualified, send an information copy of the complete FCR to ASXKMF with supporting financial data, facility advisory board findings and recommendations.

(3) Three: Are the business practices of the prospective contractor considered satisfactory?

(i) Cooperation with FCR team (see Comptroller General Decision 145350May 5, 1961).

(ii) Attitude toward commitments.

(iii) Actual performance as to quality and delivery on previous or current Government contracts to the extent that such performance reflects factors other than "capacity" or "credit." (See note below.)

(iv) An apparent ability to conform to the requirements of the standard nondiscrimination clause (§ 12.802 of this

title).

(v) If the proposed contract is for manufacture, supplies, or construction, indicate whether the bidder is a manufacturer, regular dealer, or construction contractor. (§§ 1.201-9 and 1.903-1 of this title.)

(vi) Is otherwise qualified and eligible for award under applicable laws and regulations not considered under the other five questions of the FCR.

(vii) See § 1.903-1(e) of this title. NOTE: If the reply to question Three is negative, identify the deficiencies and furnish a complete explanation. Performance as to quality or delivery on previous or current Government contracts related to "capacity" or "credit" as defined in § 1.705-6 of this title is considered under questions One and Two of the FCR and is subject to certification of competency by the SBA in the case of a small business concern.

(4) Four: What percentage of subcontracting is contemplated for production of, or work upon, each item, com

ponent, or assembly called for by the IFB/RFP? Show the percentage of subcontracting contemplated as a percent of the contract price. In the case of a letter contract furnish an estimate. If the percentage differs substantially from that indicated in the request for FCR, submit the facts to support the findings or estimate. Show separately the percentage of subcontracting to be performed by a parent, subsidiary or other affiliate of the prospective contractor.

(5) Five: Is the prospective contractor's accounting system adequate for administration of the type of contract proposed or if progress or advance payments are requested? See Subpart D, Part 3 and Part 163, Subchapter E of this title. An answer to question Five is required only when the request for FCR or the IFB/RFP indicates the question is applicable or when reply to question Two indicates that approval of progress or advance payments will be necessary. If no reply is necessary indicate "N/A" (not applicable). An affirmative reply is appropriate if either of the following conditions prevail:

(i) The prospective contractor is being paid under any similar type of Government contract or Government financing is being provided, and there is no evidence in the Air Force Contract Administration files of serious deficiencies, or major administrative irregularities insofar as the accounting system is concerned.

(ii) The appropriate military audit agency has determined within the preceding 6 months that the prospective contractor's accounting system is adequate (with changes, if any, to which he has agreed in a signed statement) for the type of contract or for administration of the type of Government financing being proposed.

A negative answer is required if the contractor does not agree to make changes deemed necessary by the audit agency to make the system adequate. In such case, identify the change to which the prospective contractor will not agree. (6) Six: Is the prospective contractor's purchasing system adequate to assure efficiency and economy in subcontracting and purchasing under the proposed contract? An answer to question Six is required when the request for FCR indicates one of the following types of contracts is contemplated: Fixed-price redeterminable or incentive, time and

material, or cost-reimbursement. If no reply is necessary indicate "N/A" (not applicable). See § 1.906 of this title. An affirmative reply is appropriate only if it has been determined that the prospective contractor's purchasing system is adequate, or if the prospective contractor presents a satisfactory plan and has adequate capability to make required changes and states in writing that he will make necessary changes if awarded the proposed contract, to assure efficiency and economy in subcontracting and purchasing activities in support of the proposed contract. The plan and the signed statement will become a part of the contract file with a copy retained for the FCR file. Among the factors which must be considered are the following:

(i) Company policy with respect to assuring efficiency and economy in subcontracting and purchasing vendor items and services.

(ii) Procedures for determining financial and technical ability of subcontractors.

(iii) Pricing policies with respect to subcontracts.

(iv) Controls to assure compliance with subdivisions (i), (ii), and (iii) of this subparagraph.

(b) See § 1001.902(c).

(1) AFSC (ASXKM) WPAFB, Ohio will advise Army and Navy of locations where data concerning AF contractors may be obtained and will secure similar information from them concerning Army and Navy contractors for AF purchasing activities.

(2) A contracting officer may request an EDR on a prospective contractor either from an FCR activity, if a contract on which information is desired is administered by that activity, or from a DOD purchasing activity that had recent experience under a contract not assigned to an FCR activity for administration. Requests may be made directly to Army or Navy purchasing activities if known or according to information furnished by ASXKM. See subparagraph (1) of this paragraph.

(3) If the PCO doubts that the prospective contractor is responsible after receipt of an EDR, he may request an FCR. If an EDR is requested from an FCR activity, the FCR can be expedited by adding "Request a Complete FCR if recent experience history is unsatisfactory" in the request for EDR and supplying the information necessary to request an FCR. If the request for an FCR is

subsequently made to an activity other than the one that supplied the EDR, a summary thereof (or a copy) will be included under "remarks" in the request for FCR.

(4) A request for an EDR will be sent by the same means as an FCR and should refer to this section and contain the following information:

(i) Name and address of the prospective contractor.

(ii) Type of experience data required e.g., "general experience" or "engineering and production delivery history in manufacture of remote compass transmitters."

(5) If urgency demands, the EDR may be sent by telephone or other rapid means unless classified information is involved. (See AFR 205 (Security) series.) When possible the data will be sent by air mail before the time limit which is the same as for an FCR. The scope of the reply will be governed by the request and will be restricted to the following:

(i) Name, address, and telephone number of DOD activity having contracting experience.

(ii) Name and address of the prospective contractor.

(iii) Extent of experience (dollar value and volumes) and period of time covered.

(iv) Statement of experience e.g., "satisfactory" or "unsatisfactory because of (brief narrative of facts)."

(c) See § 1.905-1(c) of this title. FCR files, contract files, case histories of quality control and acceptance, production, finance, contract performance, and other records normally kept by AF purchasing and contract administration activities will serve as the experience data and performance history records; but see Subpart F, Part 1 of this title, Debarred, Ineligible and Suspended Bidders.

(d) See § 1.905-1(d) of this title.

[27 F.R. 1615, Feb. 21, 1962, as amended at 27 F.R. 9917, Oct. 9, 1962; 27 F.R. 11761, Nov. 29, 1962]

§ 1001.905-4 Pre-award surveys.

§ 1001.906 Subcontractor responsibility. See 1.906 of this title and question Six under § 1001.905-1(a).

§ 1001.907 Disclosure of pre-award data. See 1.907 of this title. Information in or intended for, FCR, EDR, SSS, or SSSB files, including AFPI 63 series forms, when completed, will be marked "For Official Use Only" (see AFR 11-30 (Custody, Use and Preservation of DOD Official Information which Requires Protection in the Public Interest)) unless a security classification is warranted (see AFR 205 series). No indication will be given to a prospective contractor on which an FCR or an SSS is being conducted that he will or will not be awarded the contract. However, this does not preclude the FCR team chairman from discussing apparent deficiencies with the bidder during the conduct of the FCR survey, if the FCR Chairman determines that it is in the best interests of the Air Force. Information may be released to the Small Business Administration as provided in § 1.705-6(b) and in § 1001.950. When the low bidder is advised by the buying activity that contract award has been denied, as a result of a negative FCR, he will be informed that reasons for such negative finding can be obtained only from the activity which performed the FCR survey. In the event the contractor requests information relative to the FCR findings, this data will only be furnished or discussed with him by the chief of the activity or the FCR monitor involved.

§ 1001.950

Small business procedures.

(a) Negative FCR on Small Business concern or on Authorized Defense Production Pools that have been designated Small Business:

(1) See § 1.705-6 of this title and § 1001.705-6, Certificate of Competency, and § 1001.902-1(c). The procedure outlined in subparagraph (2) of this paragraph will be followed when negative replies are submitted on a Small Business concern and the replies to question Three, Five or Six, as applicable, are affirmative on all proposed awards of $10,000 and over, or at the request of the PCO on proposed awards of over $2,500 and less than $10,000. SBA has 15 work days from the date it is notified in which to issue a Certificate of Competency (COC). Before selecting another source, the PCO will wait 5 work days from the date SBA was notified, unless notified

sooner, for advice from the AF small business specialist in the purchasing activity as to whether or not a COC is being processed by SBA. If the PCO is notified that a COC is being processed he will take no further action pending receipt of the COC or notification that one will not be issued. The 15 day period may be extended at the option of the PCO. If a COC is issued, the PCO will accept it as conclusive as to questions One and Two unless he has substantial doubts as to the prospective contractor's ability to perform in which case he will follow the procedures in § 1001.705-6. (See also § 1001.904-1(a) (4) regarding required PCO Certification.) All actions between the PCO and SBA or local AF small business specialists will be channeled through the small business specialist at the purchasing activity, if one is assigned. The procedures in subparagraph (2) of this paragraph are mandatory except where the award must be made without delay in which case the PCO will make, sign and place in the contract file a certification setting forth the justification for awarding the contract without delay. The PCO must furnish the small business specialist at the purchasing activity a copy of his decision which will be transmitted to the cognizant SBA regional office through the small business specialist at the FCR activity.

(2) A copy of the FCR and the information in § 1.705-6(b) of this title will be sent to the AF small business specialist in the appropriate FCR activity at the same time that the FCR is sent to the PCO. The small business specialist will:

(i) Immediately advise the SBA regional office having jurisdiction over the area in which the small business or authorized pool is located, of the negative FCR and furnish SBA the information in § 1.705-6(b) of this title.

(ii) Request notification from SBA within 5 work days as to whether a COC is being processed and advise the PCO of the date on which SBA was notified. When notified by SBA that a COC is being processed, the PCO will be notified immediately.

(iii) If notification is not received from SBA at the end of 5 work days, it will be assumed that SBA is not processing a COC and the small business specialist in the FCR activity will notify the small business specialist in the purchasing office promptly by telephone and

confirm it in writing. The latter will notify the PCO promptly by telephone and confirm it in writing.

(b) Qualified FCR on Small Business concern or on authorized Defense Production Pools that have been designated Small Business concerns:

(1) Messages which transmit qualified replies to question One or Two of the FCR (when replies to questions Three, Five, and Six are affirmative or not applicable) will state "request this activity be advised if award is denied for lack of capacity or credit to allow referral to SBA."

(2) If the conditions of a qualified reply to question One or Two of the FCR are not met and denial of the award is contemplated for lack of capacity or credit, the PCO will so advise the FCR activity which will follow the procedures outlined in paragraph (a) (2) of this section.

(a) Except as provided in § 1001.952, surveys must be requested in writing from AFSC (ASXKM) WPAFB, Ohio, giving the following information:

(1) Organization requesting the survey.

(2) Name and address of each company to be surveyed. (3) Description of proposed procurement.

(4) Proposed date of survey.

(5) Justification for survey. (See § 1001.902(b).)

(6) State whether or not the survey report will be used in lieu of an FCR. (7) Recommended team chairman. (b) ASXKM will designate the team chairman, team members and advisors, invite participation by personnel from other AF activities when necessary for the survey, and give team guidance to assure adequacy of objective, results, and followup.

(c) The team chairman will make necessary arrangements with the prospective contractor to be surveyed and will direct and coordinate the activities of the survey team. If it is anticipated that the survey report will be used in lieu of an FCR, the report must answer the six FCR questions (§ 1001.905-1) and the team chairman must establish liaison prior to and during the survey with the FCR activity that would normally perform an FCR on the contractor. The chairman will send a copy