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tiation authority under 10 U.S.C. 2304(a) and Subpart B, Part 3 of this title and Subpart B, Part 1003 of this chapter. Negotiation authority will be used only when the facts and circumstances of the procurement clearly indicate the need to use the authority. For example, 10 U.S.C. 2304 (a) (9) authorizes the procurement of perishable subsistence supplies by negotiation. Milk is a perishable subsistence as defined in Rulings and Interpretations of the Walsh-Healey Public Contracts Act, but troop issue requirements are adequately covered by specifications and competition is generally available; accordingly, such procurements of milk should be advertised when estimated quantities are in excess of $2,500.

(b) Before the negotiation authority of § 3.202 or § 3.210 of this title is used, officials approving determinations and findings (see § 1003.306(b) of this chapter) will satisfy themselves that formal advertising procedures cannot be used without detriment to the Government, and that the facts and circumstances in justification of negotiation are clear and convincing.

§ 1002.104 Types of contracts.

See § 2.104 of this title.

§ 1002.104-50 Firm fixed-price terials reimbursable contracts.

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(a) When it is desired to procure the repair and overhaul of items on the basis of a firm fixed-price for the services with reimbursement for cost of materials used, such procurement may be advertised when both of the following criteria are met:

(1) The cost of the direct materials to be used will be relatively small in relation to the total cost of the repair and overhaul services.

(2) It can be reasonably expected that the materials for which reimbursement is to be made are available to all bidders at basically the same price.

(b) The IFB and the resultant contract must:

(1) Adequately define the material for which reimbursement is to be made.

(2) Limit reimbursement to the contractor's actual cost of such reimbursable material (including cash and trade discounts, rebates, allowances, and commissions).

(3) Contain adequate controls to limit the purchase of reimbursable materials by the contractor.

The IFB will not require bidders to furnish estimated prices of materials the cost of which is reimbursable, nor will the cost of such materials be considered in the evaluation of bids.

(c) The clauses set forth in Subpart SS, Part 1007 of this chapter, will be used, provided the "Payments" clause includes the sentence prohibiting payment of profit on materials, as prescribed for use in formally advertised contracts in the note set forth in § 1007.4503-4 of this chapter.

Subpart B-Solicitation of Bids

SOURCE: 1002.201 to 1002.251 appear at 26 F.R. 12354, Dec. 27, 1961, except as otherwise noted.

§ 1002.201 Preparation of invitations for bids.

For forms discussed in this section see Part 1016 of this chapter.

(a) The following subparagraphs contain implementations of the corresponding subparagraphs of § 2.201(a) of this title for supply and service contracts, including construction.

(1) Invitation number. Each invitation issued will be assigned, and will contain in the space provided therefor, a number composed of: (i) The station number of the issuing office, followed by a dash, (ii) the last two numerals of the fiscal year in which the invitation is issued, followed by a dash, and (iii) the serial number of the invitation being issued. Only one series of numbers will be used under any one station number for each fiscal year, and the first invitation issued in each fiscal year will bear "1" as its serial number. A serial number once assigned to an invitation which has been distributed will not be used in the same fiscal year for any other invitation. Other numbers or letters will not be prefixed or suffixed to this number. Accordingly, the first invitation issued by the Base Procurement Office, WrightPatterson AFB, in the fiscal year 1961 would be numbered 33-601-61-1.

(2)-(13) See §2.201(a) (2)–(13) of this title.

(14) Use of Government property in the bidder's possession. (Applicable only to AMC central procurement IFBS.) Use of Government property in the bidder's possession under a facilities contract or other agreement independent of the IFB on a "no charge for use", "rentfree", or other no charge basis is not per

mitted. The following provision will be inserted in all AMC central procurement IFBS:

GOVERNMENT PROPERTY IN BIDDER'S POSSESSION

If

Bidder's may use, in performing the work bid upon, any items of Government property in the bidder's possession under a facilities contract or other agreement independent of this invitation for bids at the rental rates stipulated in such facilities contract or other agreement provided such facilities contract or other agreement authorizes such use. the bidder plans to use such Government property, the bidder will so state in the bid. In such event the bidder agrees to furnish, upon request of the contracting officer, evidence that a facilities contract or other separate agreement authorizes the bidder to use each item of such Government property for performing the work bid upon. Bids submitted contingent upon the use of such property on a "no-charge for use", "rentfree" or other no charge basis will be considered nonresponsive to this invitation for bids and will be rejected. (See § 1002.407-5 (b).)

(15)-(16) See § 2.201(a) (15)–(16) of this title.

(17) Special provisions—(i) Liquidated damages. See § 1.310 of this title.

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(ii) Buy American certificate. §§ 6.104-3 and 6.204-2 of this title and § 1006.104-3 of this chapter.

(iii) Progress payments. See § 163.73, Subchapter E of this title.

(a) Whenever it is intended that the contractor is to be reimbursed for progress payments to subcontractors, the clause set forth in § 163.79, Subchapter E of this title will be included in the schedule.

(b) Whenever the contracting officer determines that progress payments are not appropriate in connection with a particular procurement, according to the criteria set forth in § 163.73, Subchapter E of this title, the following statement will be included in the IFB:

Progress payments are not available under this invitation for bids and bids conditioned upon provision for progress payments will be considered nonresponsive. This does not preclude payments for partial deliveries as otherwise authorized in the General Provisions.

(iv) Advance payments. The policy and procedures for advance payment provisions are contained in § 163.23, and Subpart D, Subchapter E of this title.

(v) Approval of resulting contracts. IFBS covering procurements which may exceed the delegated authority of the issuing contracting officer for which the

resulting contract may require approval of higher authority, will include the following provision:

APPROVAL

Any contract in excess of $ (insert amount of delegated contracting authority of contracting officer issuing the invitation for bids) awarded as a result of this invitation shall contain the following approval clause: This contract shall be subject to the written approval of the Secretary of the Air Force or his duly authorized representative and shall not be binding until so approved.

(vi) Statement in lieu of Standard Form 119. See 1001.507-1 of this chapter (to be used in conjunction with § 1.506 of this title).

(vii) Labor surplus "Set-asides." See § 1.804-2 of this title.

(viii) Small business "Set-asides." See §§ 1.706-5 and 1.706-6 of this title.

(ix) Financial and technical ability. See Subpart I, Part 1001 of this subchapter for applicable clause. Also, see Subpart I, Part 1001 relative to requirements and procedures for Special Source Surveys.

(x) DO ratings. See 1001.460 of this chapter.

(xi) Classified information. Classi=fied information in invitations for bids will be handled according to AFR 205-4, "Armed Forces Industrial Security Regulations."

(xii) Multiple awards. IFBS which will be evaluated according to § 1002.4075(c) will include the following statement:

NOTICE TO BIDDERS

Bids will be evaluated on the basis of advantages or disadvantages to the Government that might result from making multiple awards. For this purpose, the cost of issuing an advertised contract is estimated to be $50. Accordingly, where several items are included in an invitation for bid and, E after opening bids, it is ascertained that no one responsible bidder submitted the lowest price on each of the items, the $50 factor of whether it will be to the best interest of the Government to make multiple awards will be considered, other factors being equal.

(xiii) Percentage of subcontracting. When a Facility Capability Report is contemplated as prescribed in Part 1052 of this chapter, the IFB will contain the following clause:

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Bidder represents that the estimated percentage of subcontracting contemplated on this procurement is percent. NOTE: The "percentage of subcontracting" will be reported as a percentage of the prime contractor's selling price. "Subcontracting"

means only contracts for the production or of work upon an item, component, or assembly and does not include: (1) Any purchase of a standard commercial or catalog item, (2) any purchase of a basic raw material, (3) any purchase of supplies or services for the general operation of the contractor's plant, or (4) any purchase from a parent, subsidiary, or affiliate of the contractor.

(xiv) Notification of synopsis.

§ 1001.1003-8 of this subchapter.

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(18) General provisions or conditions. (i) The IFB will include general provisions according to the appropriate part of Part 7 of this title and Part 1007 of this chapter, and any special conditions necessary to describe the Government's requirements fully.

(ii) When procurement is by formal advertising, price redetermination clauses (as distinguished from escalation clauses) will not be inserted in the IFB or in any resulting contract. (See § 1002.104.)

(iii) IFBS for sealed bid sales will be prepared according to instructions contained in paragraph 21, section 9, volume XIII, AFM 67-1, except that IFBS and contracts for the disposal of edible garbage will also contain the following provision:

Prior to award the bidder agrees to furnish a certificate from an Animal Disease Eradication Division representative of the U.S. Department of Agriculture that he possesses adequate and approved garbage sterilization equipment. In the event of an acceptance of his bid by the Government, the bidder warrants that all garbage received under the contract will be sterilized not less than 30 minutes at 212° F. before being fed to livestock or poultry. The bidder agrees to permit representatives of Animal Disease Eradication Division of the U.S. Department of Agriculture to make inspections at any time without prior arrangements to determine that the garbage is heat-treated in accordance with this provision.

(19)-(25) See § 1002.407-5(g) (19)(25) of this title.

(b) The following subparagraphs contain implementations of the corresponding subparagraphs of §2.201(b) of this title for supply and service contracts, excluding construction.

(1)-(13) See §2.201(b) (1)-(13) of this title.

(14)-(20) [Reserved]

(21) Special provisions-(i) Procurement of items containing wool (except mohair). See § 6.304-2(c) of this title.

(ii) Brand name or equal. See § 1.1206 of this title.

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(iii) Shipping instructions. (iv) First article approval. § 1007.4020 for sample provision. Where it is known that one or more sources have previously furnished to the Government the articles subject to first article approval, the schedule may provide for bids to be submitted on one of two basis as applicable: Bid "A" (First Article, Approval Required); Bid "B" (First Article, Approval Not Required). The following provisions will then be inserted in the IFB schedule following the § 1007.4020 provision:

Bidders who have previously furnished to the Government the articles referred to in item above shall submit bid on Bid "B" which does not include compliance with the above First Article provision.

Bids submitted under Bid "A" (First Article, Approval Required) or under Bid "B" (First Article, Approval Not Required) are equally acceptable to the Government, as applicable, and award will be made thereon with the best interest of the Government considered.

(v) Production sample. Where production samples are required, the provision in the IFB Schedule may be the same as a "first article" provision (see subdivision (iv) of this subparagraph) except that the term "production sample" will be used instead of "first article" and a Production Sample Test Clause (see § 1007.4021 of this chapter) will be used instead of a First Article Approval Clause.

(vi) Special maintenance tools and test equipment. Where a requirement for special maintenance tools and test equipment exists, a separate item in the schedule will be established similar to the following sample:

The contractor agrees to furnish special maintenance tools and test equipment for above, to be selected in accorddated

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item ance with corporated herein by reference.

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(vii) Data requirements. See § 1009.202-1(a) of this chapter.

(viii) Descriptive identification data. See § 1007.4041 of this chapter.

[26 F.R. 12354, Dec. 27, 1961, as amended at 27 F.R. 6268, July 3, 1962, as amended at 27 F.R. 9944, Oct. 9, 1962; 27 F.R. 11761, Nov. 29, 1962]

§ 1002.202 Miscellaneous rules for solicitation of bids.

§ 1002.202-1 Bidding time.

Where bidding time of less than 15 calendar days when procuring standard commercial articles or less than 30 calendar days when procuring other than standard commercial articles is contemplated, written authorization will be obtained by the contracting officer from the director or deputy director of procurement and production at AMC field procurement activities (Director or Deputy Director of Contract Support at AMCASC) or the chief or deputy chief of base procurement offices. The contract file will be documented accordingly. § 1002.203 Methods of soliciting bids. § 1002.203-1 Mailing or delivering to prospective bidders.

IFBS, when mailed, will be sent as first class mail. Optional Form 17, "Sealed Bid Label," which is a gummed back label form, may be furnished with the bid set to each prospective bidder to facilitate the identification and handling of envelopes containing sealed bids. The use of this form will provide the bidder with an easy means of specifically identifying his sealed bids, and also facilitate the required special handling of sealed bids when they are received by AF procurement activities.

[27 F.R. 9944, Oct. 9, 1962]

§ 1002.205 Bidders' mailing list.

(a) Basic policies-(1) Advertised procurement. It is mandatory that the complete list be obtained by the contracting officer. The selection of sources from the list will be at the discretion of the contracting officer but will be in consonance with §§ 1.702(b) (2) and 1.803 (a) (5) of this title.

It is

(2) Negotiated procurement. mandatory that the complete list be obtained by the contracting officer for procurement of supplies and services estimated to cost $10,000 or more unless the procurement is to be placed on an authorized selected-source basis. The selection of sources from the list will be at the discretion of the contracting officer but will be in consonance with §§ 1.702(b) (2) and 1.803 (a) (5) of this title.

(b) Principles of maintaining bidders' mailing list. Except as exempted by § 2.205 of this title, a bidders' mailing

list (mechanized or otherwise) of firms who desire to be considered as sources of supply will be maintained by each purchasing office. After completion of a contract award, whether formally advertised or negotiated, the bidders' mailing list used for such procurement, together with the names added by the buyer, contracting officer, or small business specialists or those names added as a result of requests by firms or their representatives will be forwarded by the buying activity to the activity responsible for maintaining the bidders' mailing list so that such added names are recorded for future use. This bidders' mailing list will be supported by correspondence indicating "no bid", "inability to produce item but desire to be retained on the list", "requests for removal from the list", and "requests to be placed on the list for future procurement"; AFPI Form 2, “IFB Information," if applicable; and one copy of the abstract. The activity responsible for maintaining the bidders' mailing list will:

(1) Delete, according to the provisions of § 2.205-2 of this title, companies for appropriate item, if they fail to respond.

(2) Delete companies for appropriate items if they request deletion.

(3) Retain companies who cannot bid but request retention on the list.

(4) Contact any companies not in the mechanized system and invite them to become established as potential sources.

(c) Augmenting lists-(1) Policy. Contracting officers may add names and mailing addresses to the bidders' "list." AF small business specialists may add names and addresses to those selected by the contracting officer for solicitation, and such additions will include any that may be furnished by Small Business Administration (SBA) representatives.

(2) Sources. The bidders' mailing list may be augmented in special instances on new items of procurement from the following or similar sources:

(i) Records of previous purchases of similar requirements.

(ii) Trade directories.
(iii) Classified catalog

files maintained in or available to the purchasing office.

(iv) Trade journals.

(v) The classified section of city or telephone directories.

(vi) The listings from other Federal agencies.

(3) Procedure. The names of additional suppliers will be placed on the

bidders' mailing list from time to time in the manner specified in § 2.205 of this title, and this subchapter, and when circumstances justify, by listing, in advance of receipt of applications, such suppliers on the basis of information derived from sources of the type listed in subparagraph (2) of this paragraph. The supplier so listed in advance will be requested to confirm the listing by filling Standard Form 129, "Bidder's Mailing List Application." If the supplier fails to furnish the application requested, his name may be removed from the list.

(d) Qualified products list. The bidders' mailing list will include all names of suppliers who have been placed on a Qualified Products List for the items concerned, as furnished by the Directorate of Engineering Standards, WADD, according to Subpart K, Part 1001 of this chapter. See § 1.1107-3 of this title for the effect when suppliers' names appear on the list of debarred or ineligible bidders.

(e) Identification of surplus dealers. Whenever the name of a surplus dealer is placed on a bidders' mailing list, the words "Surplus Dealer" will be placed directly beneath the name of the firm. [26 F.R. 12354, Dec. 27, 1961, as amended at 27 F.R. 9944, Oct. 9, 1962]

§ 1002.205-2 Removal of names from bidders' mailing lists. Also see

See 2.205-2 of this title. § 1002.205(b).

§ 1002.205-4 Excessively long bidders' mailing lists.

(a) Pre-invitation

notices. See

§ 2.205-4 of this title. (AFPI Form 2, "IFB Information," will be attached to the description sheet or IFB schedule sheet mailed to the prospective suppliers.)

§ 1002.205-51 Commodity class catalogs (commodity lists).

(a) This section provides for the issuance, maintenance, and distribution of commodity class catalogs or commodity lists.

(b) This section applies to AMC field procurement activities assigned prime class procurement.

(c) AMC procurement activities assigned the central procurement responsibility of AF commodity classes will prepare, issue, maintain, and distribute commodity class catalogs or commodity lists. The purpose of such lists is to

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