sonnel requirements, special requirements (logistic support, government furnished property, and so forth) for the contracting officer's use in preparing the request for technical proposal;

(4) Send a memorandum incorporating paragraphs (b)(1) through (3) of this section, together with the "Action" copy of the PIO/T to the contracting officer, requesting him to prepare and distribute requests for technical proposal from the source list provided.

(c) Upon receipt and acceptance of the project officer's request, the contracting officer shall prepare requests for technical proposal (RFTP). The RFTP shall contain sufficient information to enable an offeror to submit a responsive and complete technical proposal; this includes a definitive statement of work, an estimate of the personnel required, and special provisions (such as logistic support, government furnished equipment, and so forth), a proposed contract format, and evaluation criteria. No cost or pricing data will be requested or required by the requests for technical proposal. The RFTP will be distributed to the sources recommended by the project office.

(d) Upon receipt of responses to the RFTP by the contracting officer, an evaluation committee will be established consisting of a representative of the project office as Chairman, the contracting officer or his designee, and any other members considered appropriate by the project office and contracting officer.

(e) The evaluation committee will evaluate all proposals in accordance with the criteria set forth in the RFTP, and will prepare a selection memorandum which shall:

(1) State the evaluation criteria; (2) List all of the institutions whose proposals were reviewed;

(3) Report on the ranking and rational therefor for all proposals;

(4) Indicate the institution(s) considered best qualified.

(f) The evaluation committee will submit the selection memorandum to the head of the procuring activity for his review and approval.

(g) The head of the procuring activity will either approve the selection

memorandum, or return it to the evaluation committee for reconsideration for specified reasons.

(h) If the selection memorandum is approved by the head of the procuring activity, it shall be forwarded to the contracting officer, and shall authorize him to commence negotiations.

(i) The contracting officer shall obtain cost, pricing, and other necessary data from the selected institution(s) and shall conduct negotiations with said institution(s). If a satisfactory contract cannot be obtained, the head of the procuring activity will so advise the evaluation committee. The evaluation committee may then recommend alternate source(s).

(a) A collaborative assistance project is any project for which it has been determined (see § 7-4.5804 of this subpart) that:

(1) A continuing collaborative relationship between AID, the host country, and the contractor is required from project design through completion of the project. AID, host country, and contractor participation in a continuing review and evaluation of the project is essential for its proper execution; and

(2) The project requires the services of either an educational institution, international research center (as defined in AIDPR 7-4.5701), or cooperative development organization (which are organizations recognized and listed as such by the Assistant Administrator, Bureau for Private and Development Cooperation).

(b) The collaborative assistance method is fully defined and discussed in AIDPR Appendix H-Use of Collaborative Assistance Method for AID

Direct Contracts for technical assistance.

(41 CFR 7-1.008-51)

[45 FR 44277, July 1, 1980, as amended at 45 FR 74923, Nov. 13, 1980; 48 FR 30367, July 1, 1983]

§ 7-4.5802 Applicability.

The provisions of this subpart are applicable to all contracts implementing collaborative assistance projects (see § 7-4.5804 of this subpart).

§ 7-4.5804 Determination.

In order to prepare a contract pursuant to the collaborative assistance method, the determinations in § 74.5801 of this subpart must be made in accordance with the following procedures:

(a) The responsible project office makes a preliminary finding that a project should be classed as collaborative assistance in accordance with § 74.5801 (a)(1) and (2) of this subpart.

(b) Based upon this preliminary finding, the project office shall establish an evaluation panel consisting of a representative of the project office as Chairman; a representative of the Bureau for Development Support, for projects where the services of an educational institution or international research center are deemed necessary; a representative of the Bureau for Private and Development Cooperation for projects where the services of a cooperative development organization are deemed necessary; a representative of the Office of Contract Management; and any other representatives considered appropriate by the Chairman.

(c) The evaluation panel will review the proposed project; based on the panel's findings, the Chairman will make the formal, written determinations as to whether or not the project is collaborative assistance as required by § 7-4.5801 (a)(1) and (2) of this subpart.

[45 FR 44277, July 1, 1980]

§ 7-4.5805 Evaluation and selection.

(a) A sufficient number of sources must be considered to insure that competition is obtained to the maximum practicable extent; this requirement shall be deemed satisfied when a con

tractor is selected pursuant to the procedures of this subpart. Formal solicitation is not required.

(b) Following determination that a project is in fact collaborative assistance, the evaluation panel shall:

(1) Prepare evaluation and selection criteria;

(2) Prepare an initial source list including all potential sources known to have capabilities and expertise in the areas required by the proposed project; and

(3) Evaluate the list, using the evaluation criteria previously determined, for the purpose of making a written determination of the source (or sources) considered most capable of performing the project.

(c) The Chairman of the evaluation panel will prepare a memorandum to the contracting officer setting forth:

(1) The formal determination that the project is collaborative assistance, (2) The evaluation criteria which have been determined, and

(3) The recommended source list and the rationale therefor, and requesting the contracting officer to prepare a request for expressions of interest from the qualified institution (or institutions).

(d) The contracting officer and the project officer will prepare a request for an expression (or expressions) of interest, containing sufficient information to permit an institution to determine its interest in the project, and to discuss the project with AID representatives, if appropriate. The request for expression of interest should include a concise statement of the purpose of the project, any special conditions or qualifications considered important, a brief description of the selection procedure and evaluation criteria which will be used, (if expressions of interest are being requested from more than one institution), the proposed contract format, and any other information considered appropriate. The request for expression of interest will be issued to the institution or institutions recommended by the panel. Guidelines for preparation of expressions of interest are contained in Attachment 1 to Appendix H of Handbook 14.

(e) The contracting officer will transmit all expressions of interest to the evaluation panel for evaluation and selection recommendation. The panel may conduct on site evaluations at its discretion, as part of the evaluation process.

(f) The Chairman of the evaluation panel will prepare a written selection recommendation with supporting justification, recommending that negotiations be conducted with the prospective contractor (s) selected by the evaluation panel. The selection recommendation shall be transmitted to the contracting officer together with the complete official file on the project which was being maintained by the evaluation panel.

(g) The contracting officer will review the selection recommendation, obtain necessary cost and other data, and proceed to negotiate with the recommended source.

[42 FR 27601, May 31, 1977, as amended at 45 FR 44277, July 1, 1980]

Subpart 7-5.50-Foreign Economic Assistance Procurements by, through, and from Other Government Agencies

§ 7-5.5000 Policy.

The Foreign Assistance Act authorizes procurement by, through, or from other Government agencies, subject to a requirement for use, to the fullest practicable extent, of goods and engineering, and other services from private enterprise on a contract basis. The Foreign Assistance Act directs that in such fields as education, health, housing, and agriculture, the facilities and resources of other agencies are to be used when they are particularly or uniquely suitable for technical assistance, are not competitive with private enterprise, and can be made available without interfering unduly with domestic programs. With regard to the purchase of goods, or commodities, AID policy favors assumption of procurement responsibility by borrowers and grantees to the maximum practical extent, but when this is not practical, the preference is for procurement carried out through other Government agencies rather

§ 7-6.103-51 Foreign Assistance Act functions.

In addition to the exception stated in FPR 1-6.103-1 for purchases for use outside the United States, there is an exception for economic assistance functions performed under authority of the Foreign Assistance Act. This exception is stated in Executive Order 11223, dated May 12, 1965 (30 FR 6635). U.S. procurement restrictions are applied by AID, however, as shown elsewhere in this part. These restrictions are generally tighter than the Buy American Act. As a general rule, the tighter AID restrictions will be used. In the case of certain procurements for use within the United States, the Buy American provision may be used instead in the interest of uniformity among Federal Agencies procuring for domestic use.

[30 FR 12975, Oct. 12, 1965]

Subpart 7-6.16-Purchases Under the

Trade Agreement Act of 1979

§ 7-6.1603 Applicability.

Subpart 1-6.16 of the Federal Procurement Regulations establishes procedures for purchases under the Trade Agreement Act of 1979. FPR 16.1603(e) lists 11 exemptions to the requirements of Subpart 1-6.16; FPR 16.1603(e)(10) exempts "Tied-aid procurements under AID foreign assistance programs . . .". Under this exemp

AID policies regarding source, origin, and nationality requirements for AID contractors and subcontractors are established in AID Handbook 1, Supplement B, primarily in Chapter 5. Additional related policies are set forth in Chapters 4, 7, and 18. These policies as they apply to subcontracts and purchases under AID-direct contracts have been incorporated into the contract clauses set forth in §§ 7-6.5103 and 7-6.5104 of this subpart.

§ 7-6.5101 Designation of authorized geographic code.

(a) The authorized geographic code or codes for an AID contract shall be specified in the Schedule of each contract and shown on its cover page. If no geographic code is specified, the authorized code will be deemed to be Geographic Code 000, the U.S.

(b) Individual country and geographic codes are defined in Attachment A11, Section III, of Appendix D to AID Handbook 18.

§ 7-6.5102 Contractor employees.

There are no nationality restrictions on employees or consultants of either contractors or subcontractors providing services under an AID-financed contract, except that they must be citizens of a Geographic Code 935

nationality requirements.

The following clause shall be included in all AID-direct contracts: Source and Nationality Requirements for Procurement of Goods and Services (May 1982).

(a) General. Except as may be specifically approved or directed in advance by the contracting officer, or as provided in paragraph (h) of this section, all goods (e.g., equipment, vehicles, materials, and supplies), and services which will be financed under this contract with United States dollars shall be procured in and shipped from the U.S. (Code 000) and from any other countries within the authorized geographic code specified in the Schedule of this contract.

(b) Procurement of goods. In order to be eligible under this contract, goods purchased under this contract must be of eligible source and origin, and must satisfy AID's componentry requirements. In addition, the supplier of commodities must meet the nationality requirements specified in paragraph (d)(1) of this section.

(1) Source. Source means the country from which a commodity is shipped to the Cooperating Country or the Cooperating Country itself if the commodity is located therein at the time of purchase. However, where a commodity is shipped from a free port or bonded warehouse in the form in which received therein, source means the country from which the commodity was shipped to the free port or bonded warehouse.

(2) Origin. The origin of a commodity is the country or area in which a commodity is mined, grown, or produced. A commodity is produced when through manufacturing, processing, or substantial and major assembling of components, a commercially recognized new commodity results that is substantially different in basic characteristics, or in purpose or utility, from its components.

(3) Componentry. Components are the goods that go directly into the production of a produced commodity. AID componentry rules are as follows: (i) If a commodity produced in an eligible source country contains no imported component, it is eligible for AID financing.

(ii) Unless otherwise specified by the contracting officer, components from the U.S., the Cooperating Country, and any other countries included in Geographic Code 941 may always be utilized in unlimited amounts regardless of the geographic code authorized.

(iii) Unless procurement is authorized from countries included in Code 899, components from free world countries not included in Code 941 are limited according to the following rules:

(A) They are limited only if they are acquired by the producer in the form in which they were imported.

(B) The total cost to the producer of such components (delivered at the point of production) may not exceed 50 percent of the lowest price (excluding the cost of ocean transportation and marine insurance) at which the supplier makes the commodity available for export sale (whether or not financed by AID).

(C) AID may prescribe percentages other than 50 percent for specific commodities.

(iv) Any component from a non-free world country makes the commodity ineligible for AID financing.

(4) Supplier Nationality. (See paragraph (d) of this section.)

(c) Eligibility of commodity-related services.

(1) Incidental services. Nationality rules are applied to the contractor or subcontractor supplying equipment under this contract and not separately to any subcontractor that may supply commodity-related incidental services. Such services, defined as the installation or erection of AID-financed equipment, or the training of personnel in the maintenance, operation, and use of such equipment, are eligible if specified in the equipment contract or subcontract and performed by citizens of countries included in AID Geographic Code 935, or non-U.S. citizens lawfully admitted for permanent residence in the U.S.