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services during such period. and delivery schedules are established by each call. The estimated aggregate price of the calls will be considered the amount of the contract within the delegation of authority to make awards and execute or approve contracts set forth in § 1001.457 of this subchapter.

(b) Applicability. A call procurement arrangement may be appropriate where quantity and delivery requirements are not presently known, but where recurring requirements are expected to arise in circumstances where-by the time such requirements become definitely knowntime would not permit solicitation of bids or proposals, and fixed prices can be established at the outset for the supplies or services to be procured. Thus, a call procurement arrangement may be applicable where standby procurement coverage is required and circumstances will not permit firm contractual commitments by either the Government or the contractor, for example: in the procurement of the printing of technical data for oxygen.

(c) Limitations. (1) Call procurement arrangements will be written for a period not exceeding 12 months, but not necessarily on a fiscal year basis.

(2) Call procurement arrangements will not be used where the requisites for indefinite quantity contracts or requirements contracts can be met. Maximum effort should be exerted to come up with minimum and maximum requirements. A call procurement arrangement should be used only when no other method of procurement can be used. The procurement file will contain a statement giving the reasons why the use of an indefinite quantity or requirement contract cannot be used and why a call arrangement is necessary.

(3) Any call using one year funds will be supported by fiscal year funds in effect bat the date of the call.

(d) Contract clause. The appropriate clause for incorporating the call feature in a contract is set forth in § 1007.4040 of this subchapter.

§ 1003.410 Other types of agreements. § 1003.410-1 Basic agreement (BA).

(a) Description. (1) Basic agreements may be of the "Fixed Price" or "Cost Reimbursement" type. Both types can not be covered by the same basic agreement, although one, and only one, of each type may be entered into by the Air Force with the same contractor.

(b) Applicability. (1) Subject to limitations stated therein, basic agreements will be used to cover each new negotiated procurement placed with a contractor after the execution of the basic agreement if the basic agreement is of the proper type to cover the procurement (FP or CR). The applicable sections and clauses of the basic agreement, and supplements thereto, will be made a part of the procurement instrument by reference therein to the basic agreement by number. If the basic agreement has been amended, the reference will include specifically the numbers of all supplemental agreements thereto previously finalized. The reference to supplements must specifically state the number of the document referred to; the terminology "Basic Agreement No. as amended," will not be used.

(2) Except as set forth in this paragraph, if a proposed new procurement is to be covered by a supplemental agreement to an existing procurement contract, the supplemental agreement will amend the existing procurement contract to conform to the most recent basic agreement and supplements. This rule applies regardless of whether such existing procurement contract was entered into under the existing basic agreement prior to the latest supplemental agreement thereto, or under a basic agreement which at the time of the proposed new procurement is over-aged, expired, terminated, or superseded or was entered into without reference to a basic agreement. In such actions the terms of the most recent basic agreement may be made applicable to the entire procurement contract on and after the effective date of the procuring supplemental agreement, if it is determined to be in the interest of the Government to do so, or may be limited to the work added by such procuring supplemental agreement. The parties may agree to supplementing an existing procurement contract without incorporating the most recent basic agreement, as required in this subparagraph, if:

(i) No clauses then required by statute or Executive Order are omitted, (ii) ASPR clauses are added or modernized to the same extent as would be required if a basic agreement did not exist, and (iii) permission to use any deviation involved has not been rescinded or expired by lapse of time.

(3) Supplemental agreements, negotiated solely pursuant to the terms of an existing procurement contract and not involving new procurement, need not, but may if determined to be in the interest of the Government, amend such existing contract to conform to a subsequently executed or supplemented basic agreement.

(4) Basic agreements are not necessarily all inclusive. Clauses covering subject matter not covered in the basic agreement and applicable to contracts of the type being negotiated, are subject to negotiation for inclusion in the procurement contract to the same extent as if no basic agreement existed; however, if a basic agreement, as amended, is less than one year old, clauses that have been changed after execution of the basic agreement should not be substituted for clauses in the basic agreement covering like matter, unless the revised clause is made mandatory by statute, Executive Order, or a specific statement to this effect in Subchapter A, Chapter I of this title.

(5) Pending the supplementing of an existing basic agreement, which is more than one year old, but which has not been superseded or terminated, such basic agreement may be used in the preparation of new procurement contracts if the clauses that would be required to make the procurement contract conform to current requirements of statute, Executive order, Subchapter A, Chapter 1 of this title or this subchapter are inserted or substituted in the proposed procurement contract. Deviations pertaining to clauses that require substitution may be made in the substituted clauses if the revision requiring the substitution is not related to the deviation.

(6) If a letter contract has been entered into under a basic agreement which thereafter was superseded by a new basic agreement, or amended by supplemental agreement, the contractual instrument which definitizes such letter contract will incorporate the superseding basic agreement, or the supplemental agreement as applicable. If the basic agreement in this situation has been terminated without being superseded, or has expired or has become overage, by failure to revise it as required, the definitive contract which supersedes the letter contract may incorporate the clauses of the basic agreement which were incorporated in the letter contract together with such

additional clauses as have in the mean time become mandatory by statute, Executive order, or specific direction in Subchapter A, Chapter 1 of this title.

(c) Limitations. (1) New procure ment contracts will not incorporate the terms of superseded or terminated basi agreements.

(2) Portions only of the applicable terms of a current basic agreement wil not be referred to in supplemental agree ments to procurement contracts exe cuted under superseded, expired, or ter minated basic agreements, or in contracts prepared without reference to a basi agreement.

(d) Procedure. (1) Numbering: Each basic agreement will be numbered according to the established numbering system for contracts. For ease of identification, a separate block of numbers will be reserved therefor.

(2) If a contracting officer determines that a basic agreement with a contractor which does not have one is justified by the number of contracts being placed with such contractor and recurring substantial negotiating problems associated therewith, he may proceed with negotiations as authorized by subparagraph (3) of this paragraph.


(3) Authority to negotiate: Contracting officers of AFSC ASD are authorized to negotiate, write, and execute basic agreements. Contracting officers OAR are authorized to negotiate, write and execute basic agreements with respect to educational institutions only. AF activities are encouraged to submit suggestions and recommendations to ASD (ASKPC) for consideration in negotiating basic agreements. AFLC requirements will be negotiated by ASKPC upon request and approval of MCPC and with such assistance from AFLC personnel as referenced activities may agree.

(4) Approval: All basic agreements and amendments will be submitted to AFSC (SCMK-3) for review and administrative approval prior to execution by the contracting officer. Prior to submission to the office of the Procurement Committee (SCMK-3), Hq AFSC, each proposed basic agreement, or supplement, will be submitted to the staff judge advocate of the installation negotiating the basic agreement for review; and in addition, any coordination deemed necessary to insure that the contents of the basic agreement are adequate and

suitable for the needs of the Air Force will be obtained.

(5) Amendment or supersession: The amendment of basic agreements will be accomplished by consecutively numbered supplemental agreements, negotiated and processed by the activity which negotiated and executed the basic agreement. The covering agreement of such supplements will contain a statement that it conforms with Subchapter A, Chapter I of this title and this subchapter as of revisions and respectively.

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(i) Annual review: Such activity will also be responsible for establishing procedures to insure that basic agreements are reviewed and revised annually on a timely basis to conform to statutes, Executive Orders, Subchapter A, Chapter I of this title and this subchapter. For the purpose of review, the term "anniversary of their effective date" (§ 3.410-1 (b) (2) of this title) means one year after the date of execution of the basic agreement and each year thereafter, however, if a basic agreement has been amended by supplemental agreement so that it contains all required ASPR clauses effective on the date of such supplement, the term means one year from the date of such supplement. If a basic agreement is reviewed and no revision is required, a statement to that effect will be made by the contracting officer.

(ii) Need for amendment: The term "conform with the current requirements of this Subchapter" as used in Subchapter A, Chapter I of this title does not require reopening negotiations on use of a deviation which has been approved previously for the basic agreement unless the clause to which the deviation applies has been revised in such a manner as to affect the deviation. Failure to accomplish required revisions will result in an unauthorized ASPR or AFPI deviation insofar as ASPR or AFPI clauses which have been changed or added are concerned.

(e) List of approved basic agreements. (1) AFSC ASD (ASKPD) will publish quarterly a list of all approved basic agreements and supplements issued by AFSC ASD and OAR. Changes to the quarterly list will be published monthly I until the succeeding quarterly list is E issued.

(2) The quarterly list will indicate in alphabetical order by contractor's name the following information:

(i) Contract or supplement number. (ii) Date contract or supplement number assigned.

(iii) Type of contract covered by the basic agreement.

(iv) Date distributed.

(v) Procurement activity which negotiated the latest basic agreement.

(3) Requests for copies of the list will be addressed to ASD (ASKPD).

(f) Distribution of OAR basic agreements. Basic agreements and supplements executed by OAR with educational institutions will be distributed by OAR (RRMK). Requests for copies will be addressed to OAR (RRMK).

§ 1003.410-50 Open contracts (OC).

(a) Description. Open contracts do not obligate the Government to order any supplies or services but do contain either general or detailed descriptions of the supplies or services which the Government may order during a specified period of time. No prices are contained in the contract, but provision is made for the method by which pricing is to be effected. As in the case of call contracts, funds are obligated and quantities are established by each order and not by the contract itself.

(b) Applicability. An open contract offers a means of expeditious contractual coverage where quantity, delivery, specific items, and price are not presently known but where recurring emergency requirements for similar supplies and services are anticipated. This type of contract should not be used where firm requirements for future supply can be computed sufficiently in advance to permit a definite quantity contract.

(c) Limitations. (1) The open contract is not authorized for use by local purchase activities and foreign procurement activities. Further, the use of open contracts by AMC field procurement activities requires prior approval by the director of procurement and production at the respective AMC field procurement activity.

(2) Open contracts will be written for a period not exceeding 12 months; provided, however, in the case of open contracts expiring June 30th of any year, replacing open contracts may be written for either 15 or 18 months to avoid ending with a fiscal year; but thereafter the subsequent replacing contract will be written for a period not exceeding 12 months.

(3) Any order using 1 year funds will be supported by fiscal year funds in effect at the date of the order.

(d) Contract clause. See Subpart Z, Part 1007 of this subchapter.

(e) Standardized use of open contracts. (1) AMA's (hereinafter called requiring AMA's) anticipating requirements for open contracts with contractors under the contract administration responsibility of other AMA's (hereinafter called administering AMA's) and AF depots anticipating requirements for open contracts will submit the following information to the AMA administering a potential contractor:

(i) Name of potential contractor with whom the open contract will be written. (When appropriate specify the particular division of the company involved.)

(ii) AF property class designation (s) of item(s) to be procured and general item description(s).

(iii) Estimated dollar value of FY requirements.

(iv) Information to support the necessary determination and finding according to the provisions of Subpart B of this part.

(2) When the information in subparagraph (1) of this paragraph indicates at least two requiring AMA's or AF depots anticipate the same contractor as a source of supply, the procuring contracting officer in the administering AMA will execute the determination and finding and write the open contract. Copies of the determination and finding will be distributed to the requiring AMA's/ depots and will be used to support all orders placed under the contract. The open contract should not be executed in the first instance if there are not adequate factual circumstances to support all of the anticipated orders under the open contract.

(3) When an administering AMA determines that one of its contractors is anticipated as a source of supply by only one AMA or AF depot, it will authorize in writing the requiring AMA or AF depot to write and distribute its own open contract.

(4) Only those AMA's and depots for which a contract has been written under the provisions of subparagraph (2) of this paragraph are authorized to issue orders against that contract. Other AMA's and depots must request permission to issue orders from the administering AMA. In either event copies of

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When it is not feasible to use the aggregate award procedure in § 3.602(d) of this title, but the nature of the requirement indicates the possibility of multiple awards, the cost of issuing and administering multiple purchase actions will be considered in making awards. For the purpose of this evaluation, the cost of issuing and administering the various purchase documents will be considered to be: (a) $3 for calls against established blanket purchase agreements; (b) $3 for AF Form 385; (c) $10 for SF 44; and (d) $12 for DD Form 1155. Suppliers will be notified of this award procedure. When applicable, this section will be cited on the Abstract of Proposals/Quotations as the basis for awarding to other than the low offerer. [27 F.R. 10210, Oct. 18, 1962]

§ 1003.604 Imprest funds (petty cash) method.

For the purpose of this section, the following definitions will apply:

(a) Base Commander. The officer, or in his absence his deputy, who has command over an installation having a comptroller activity and who is responsible to higher authority for the execution of the mission of the installation.

(b) Cash purchasing officer. Any qualified person who has been appointed cash purchasing officer by the base commander.

(c) Comptroller activity. This term includes the accounting and disbursing agent or the accounting and finance officer.

(d) Subvoucher. A receipt for authorized goods or services purchased and payments made (AF Form 385).

[27 F.R. 6271, July 3, 1962]

§ 1003.604-1 Conditions for use.

See § 3.604-1 of this title.

(a) Purchases for each activity, i.e., civil engineer or base supply, will be considered separate transactions if based upon separate Purchase Requests or other authorized requisition forms used as purchase requests. Requirements aggregating more than $100 will not be broken down into several purchases amounting to less than $100 for the purpose of using imprest funds.

(b) to (d) See § 3.604-1 (b) to (d) of this title.

(e) A cash purchasing officer has been appointed, is bonded, and has been intrusted with funds.

(f) The supplies or services to be procured are authorized for purchase by existing regulations or directives.

(g) The signature of the vendor or his agent can be obtained for each transaction over $3. Purchases authorized in § 1003.604-4(a) (7) are exempt from this condition.

(h) The cost of the item is considered reasonable.

(i) No additional action following payment for the supplies or services and the signing of the receipt by the vendor is required to complete the procurement. Assigning a defense order rating or execution of a hand receipt by the vendor for equipment delivered to him for repair are not considered "additional action."

(j) Funds have been made available or, if funds have not been committed for the petty cash fund, the fund allotment to be charged is available from an obligation authority in the procurement office or has been cited and certified on the purchase request.

(k) Imprest funds will not be used to pay for personal services, to pay intercity transportation charges on bills of common carriers, to cash checks or other negotiable instruments, or for any other payment that is not for authorized small purchases contemplated by these instructions. The fee paid to a post office for a c.o.d. payment is not considered purchasing a negotiable instrument even though the post office may use a money order to pay the vendor.

(1) Imprest funds intrusted to a cash purchasing officer in a procurement of

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(a) Purchases will be made by c.o.d. petty cash in preference to issuance of separate purchase orders on DD Form 1155, "Order for Supplies or Services." The following criteria applies to all c.o.d. purchases from local or out of town vendors:

(1) The total cost of each purchase, including delivery and c.o.d. charges must be $100 or less.

(2) Delivery can be made within 10 days from date supplies are ordered.

(3) When ordering supplies from out of town sources, prices must be solicited on the basis of net prices, f.o.b. source, including parcel post, mail and c.o.d. fees payable at destination. Government bill of lading will not be used. All c.o.d. orders from out of town sources must be shipped by parcel post or mail. Petty cash will not be used for payment of intercity transportation services performed by common carriers. Local cartage or drayage charges may be paid by adding the charges to the cost of the items purchased or by entering as a separate item on the same receipt.

(4) Instructions to the vendor may be verbal or written.

(5) Sufficient cash must be reserved for each outstanding c.o.d. purchase.

(6) The carrier will sign the AF Form 385 for the total cash received, or the signed original c.o.d. receipt may be attached to the AF Form 385.

(7) When a receipt cannot be obtained, cash purchasing officers located in foreign countries are authorized to use the c.o.d. procedure for purchases up to $100 by: Certifying on the AF Form 385 that the parcel was "Delivered by

(name of post office or carrier), no receipt given"; and the c.o.d. label is removed from the parcel and affixed to the AF Form 385 furnished to the comptroller activity in support of the reimbursement voucher.

(b) Orders placed c.o.d. but received prepaid: When a vendor erroneously ships an order prepaid, a confirming purchase order will be issued instructing the vendor to submit an invoice for payment by check. Decentralized cash purchasing officers will process the purchase

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