This subpart applies to procurements from contractors located in the United States, its Territories, its possessions, or Puerto Rico; and will be applied in other places except where inconsistent with the laws and customs of the place where the prospective contractor is located. It is not applicable to procurements from (a) other governments, including state and local governments; (b) Canadian Commercial Corporation; (c) other United States Government departments and agencies, or their instrumentalities (such as Federal Prison Industries, Inc.); or (d) National Industries for the Blind.

§ 1.902 General policy.

Purchases shall be made from, and contracts shall be awarded only to, responsible prospective contractors. A responsible prospective contractor is one which meets the minimum standards set forth in § 1.903, and such additional standards as may be prescribed by overseas commanders and for specific procurements by purchasing activities.

§ 1.903 Minimum standards for responsible prospective contractors. General standards.

§ 1.903-1

(b) Be able to comply with the required or proposed delivery or performance schedule, taking into consideration all existing business commitments, commercial as well as governmental (for SBA certificates of competency, see § 1.705-6);

(c) Have a satisfactory record of performance (Contractors who are seriously delinquent in current contract performance, when the number of contracts and the extent of delinquencies of each are considered, shall, in the absence of evidence to the contrary or circumstances properly beyond the control of the contractor, be presumed to be unable to fulfill this requirement; see §§ 1.905-2 and 1.905-4(d)).

(d) Have a satisfactory record of integrity;

(e) Appear to be able to conform to the requirements of the standard nondiscrimination clause (see § 12.802 of this chapter); and

(f) Be otherwise qualified and eligible to receive an award under applicable laws and regulations; e.g., Subpart F, Part 12 of this chapter.

[27 F.R. 11646, Nov. 27, 1962]

§ 1.903-2 Additional standards for production, construction, and research and development contracts.

In addition to the standards in § 1.903-1, in procurements involving production, construction, and research and development work (and in other procurements as appropriate), a prospective contractor must

(a) Have the necessary organization, experience, operational controls, and technical skills, or the ability to obtain them (this standard includes, where appropriate, such elements as adequacy of production control procedures; quality assurance measures, including materials produced by subcontractors; etc. See $ 1.903-3); and

(b) Have the necessary production, construction, and technical equipment and facilities, or the ability to obtain them (where a prospective contractor proposes to use the facilities or equipment of another concern (not a subcontractor) or an affiliate of the prospective contractor (see §2.201(a) (23), all existing business arrangements, firm or contingent, for the use of such facilities or equipment shall be considered in determining the ability of the prospective contractor to perform the contract. See § 1.903-3).

§ 1.903-3 Ability to meet certain minimum standards.

Except to the extent that a prospective contractor proposes to perform the contract by subcontracting (see § 1.906), acceptable evidence of his "ability to obtain" resources, equipment, facilities, personnel, etc., (see §§ 1.903-1(b) and 1.903-2) shall generally be a commitment or explicit arrangement, which will be in existence at the time the contract is to be awarded, for the rental, purchase or other acquisition of such resources, equipment, facilities, or personnel.

§ 1.903-4 Affiliated concerns.

Affiliated concerns (see § 2.201(a) (23)) shall be considered as separate entities in determining whether the one of them which is to perform the contract meets the applicable standards for a responsible prospective contractor (but see § 1.701-1 with respect to status as a small business concern).

§ 1.904 Determinations of responsibility and nonresponsibility.

Except as otherwise provided in § 1.904-2, no purchase shall be made from, and no contract shall be awarded to, any person or firm unless the contracting officer first makes, signs, and places in the contract file, an affirmative determination that the prospective contractor is responsible within the meaning of §§ 1.902 and 1.903. Where a certificate of competency has been issued the affirmative determination need not be made as to the factors covered by the certificate of competency. Where a bid or offer on which an award would otherwise be made is rejected because the prospective contractor is found to be nonresponsible, a determination of nonresponsibility shall be made, signed, and placed in the file. The determination of responsibility or nonresponsibility shall contain a statement justifying the determination. Any supporting documents or reports, including any pre-award survey reports (see § 1.905-4) and SBA certificates of competency (see § 1.705-4), shall be attached to the determination.

However, contracting officers shall not knowingly make any purchases from, or award contracts to, persons or firms other than responsible prospective contractors, notwithstanding the exceptions in this section.

§ 1.905 Procedures for determining responsibility of prospective contract

ors.

§ 1.905-1 General.

(a) Before making determinations of responsibility (see § 1.904), the contracting officer shall have in his possession or obtain information sufficient to satisfy himself that a prospective contractor currently meets the minimum standards set forth in § 1.903, to the extent that such standards are applicable to a specific procurement.

(b) Maximum practicable use will be made of information on file or within the knowledge of personnel in the Department of Defense to the extent that such information is currently valid. Each Department shall maintain such records and experience data as may be useful for the guidance of contracting officers in the placement of new procurements in the manner and at such level as the Department deems appropriate, and shall inform its contracting officers and the other Departments of the means of access to such records and data. Upon request of any contracting officer in the Department of Defense, information in such records and data shall be expeditiously furnished in the form developed by the providing Department (see § 1.303).

(c) Each purchasing activity shall provide for the maintenance of appropriate records to insure the availability of contractor performance history. Special attention shall be paid to, and more detailed records maintained on, contractors whose past performance is questionable and new contractors whose reliability is yet unestablished

(d) Generally, information necessary to make determinations of responsibility shall be obtained only concerning prospective contractors within range for an award, except where prequalification procedures are authorized by this Subchapter or by Departmental procedures. § 1.905-2 When information will be obtained.

Generally, information regarding the responsibility of a prospective contractor (including Pre-Award Surveys (see

§ 1.905-4) when deemed necessary) shall be obtained promptly after bid opening or receipt of proposals. However, in negotiated procurements, especially those involving research and development, such information may be obtained before the issuance of requests for proposals. Notwithstanding the foregoing, information regarding financial resources (see § 1.903-1 (b)) and performance capability (see § 1.903-1(c)) shall be obtained on as current a basis as feasible with relation to the date of contract award. § 1.905-3 Sources of information.

Information regarding the responsibility of prospective contractors shall be sought among the following sources before considering performance of a PreAward Survey (see § 1.905-4):

(a) From the prospective contractor. Including representations and other information contained in or attached to bids and proposals; replies to questionnaires; financial data, such as balance sheets, profit and loss statements, cash forecasts, financial history of the contractor and affiliated concerns; current and past production records; personnel records; and lists of tools, equipment, and facilities; written statements or commitments concerning financial assistance and subcontracting arrangements; and analyses of operational control procedures. Where it is considered necessary by the contracting officer to prevent practices prejudicial to fair and open competition or for other reasons, prospective contractors may be required to submit affidavits concerning their ability to meet any of the minimum standards set forth in § 1.903, and company ownership and control (but see §2.201 (a) (23)).

(b) Existing information within the Department of Defense. Including records on file and personal knowledge of personnel (including the contracting officer) within the purchasing activity making the procurement and other purchasing and related activities; military audit agencies; offices concerned with contract financing; the Joint Consolidated List of Debarred, Ineligible, and Suspended Contractors (see § 1.601); and, records and experience data (see § 1.905-1).

(c) Publications. Including credit ratings; trade and financial journals; business directories and registers; and Synopses of U.S. Government Proposed

(a) General.

A pre-award survey consists of an inspection of the plants and facilities with which the prospective contractor proposes to perform a contract, including personal interviews with contractor personnel.

(b) Circumstances under which performed. Generally, pre-award surveys will be performed when the sources mentioned in § 1.905-3 do not yield sufficient information to enable a contracting officer to make a determination regarding the responsibility of a prospective contractor. (But see paragraph (d) of this section.) Pre-award surveys shall not be performed for procurements listed in § 1.904-2 except (1) where the procurement involves the handling of classified matter or research and development work, (2) for the purpose of checking information tending to indicate that a prospective contractor is not responsible, or (3) as may be deemed essential by the contracting officer to obtain information which cannot be otherwise acquired.

(c) Matters to be covered. Pre-award surveys shall cover matters upon which

(1) Current information is not available from the sources listed in § 1.905-3;

(2) Information available from such sources is insufficient, in the opinion of the contracting officer, to support a determination of responsibility; or

(3) Circumstances indicate the desirability of verification of information received from such sources.

(d) Workload and financial capacity. Regardless of the apparent sufficiency of information obtained from sources listed in § 1.905-3 indicating responsibility with respect to the standards set forth in § 1.903-1 (b) and (c), and in procurements which are significant either in dollar value or in the critical nature of the requirement, consideration shall be given to verification of information regarding workload and financial capacity by means of a pre-award survey with regard to such standards.

(e) Interdepartmental coordination. Pre-award surveys by one Department for another, or by any procuring or finance activity for another within a Department, may be made on a non-reimbursable basis. Such surveys shall be authorized to the extent practicable whenever such interchange will result in economy or increased efficiency, or will eliminate duplication of effort. § 1.906 Subcontractor responsibility.

To the extent that a prospective contractor proposes to perform the contract by subcontracting, determinations of prospective subcontractors' responsibility may be necessary in order to determine the responsibility of the prospective prime contractor. Determinations concerning prospective subcontractors' responsibility shall generally be a function performed by prospective prime contractors. (But see §§ 1.603 (c) and 1.605-3(b) relating to approval of subcontractors listed on the Joint Consolidated List of Debarred, Ineligible, and Suspended Contractors.) Prospective prime contractors may be required to (a) indicate the responsibility of proposed subcontractors in writing, or (b) show evidence of an acceptable and effective purchasing and subcontracting system encompassing a method for determining subcontractor capability.

§ 1.907 Disclosure of pre-award data.

Data, including information obtained from a pre-award survey, leading to a determination of the responsibility of prospective contractors shall not be released outside the Government and shall not be made available for inspection by individuals, firms or trade organizations: Provided, That such data may be disclosed to, or summarized for other elements within the Government on their request. Such information shall be made available to Department of Defense procurement personnel upon request in accordance with § 1.905-1. In making a determination of responsibility, information disclosed by such data may be discussed with the prospective contractor as necessary.

Subpart J-Publicizing Procurement
Actions

portunities for prospective prime contractors or subcontractors, thus assisting small business and labor surplus area concerns and broadening industry par

ticipation in Defense procurement

programs.

[25 F.R. 14102, Dec. 31, 1960]

§ 1.1002 Dissemination of information relating to invitations for bids and requests for proposals.

[28 F.R. 12547, Nov. 23, 1963]

§ 1.1002-1 Availability of invitations for bids and requests for proposals at the contracting office.

A reasonable number of copies of invitations for bids and requests for proposals, which are required to be publicized in the Commerce Business Daily, including specifications and other pertinent information, shall be maintained at Upon request, the contracting office. prospective contractors not initially solicited may be mailed or otherwise provided copies of such invitations for bids or requests for proposals to the extent they are available. Where a solicitation for proposals has been limited as a result of a determination that only a specified firm or firms possess the capability to meet the requirements of a procurement, requests for proposals shall be mailed or otherwise provided upon request to firms not solicited, but only after advice has been given to the firm making the request as to the reasons for the limited solicitation and the unlikelihood of any other firm being able to qualify for a contract award under the circumstances; but see § 4.205-2 of this chapter. In addition, to the extent that invitations for bids or requests for proposals are available, they shall be provided on a "first come-first served" basis, for pick up at the contracting office, to publishers, trade associations, procurement information services, and other members of the public having a legitimate interest therein; otherwise, the contracting office may limit the availability of such information to perusal at the contracting office (for construction, see § 4.102-1 of this chapter). In determining the "reasonable number" of copies to be maintained, the contracting officer shall consider, among other things, the extent of initial solicitation, reproduction costs, the nature of the procurement, whether access to classified matter is involved, the anticipated requests for copies based upon responses to

synopses and other means of publication in previous similar situations, and the fact that publishers and others who disseminate information regarding proposed procurements normally do not require voluminous specifications or drawings. With regard to classified procurements, the foregoing instructions apply to the extent consistent with departmental security instructions and procedures.

[28 F.R. 12547, Nov. 23, 1963]

§ 1.1002-2 Limited availability of certain specifications, plans, and drawings.

Where the purchasing acitivity is not in possession of complete sets of specifications, plans, and drawings (as in some procurements of airframes, shipbuilding, or major weapons systems), or the drawings and specifications are classified, or are so voluminous that display and distribution in accordance with §§ 1.1002 through 1.1002-6 is impracticable, the solicitation shall contain notice of this fact and of the locations at which the specifications, plans, or drawings may be examined (see § 1.1203).

[28 F.R. 12547, Nov. 23, 1963]

§ 1.1002-4

Displaying in public place.

A copy of each solicitation for an unclassified procurement in excess of $2,500 shall be displayed at the contracting office, and, if appropriate, at some additional public place (other than the Small Business Advisory Service Center) from the date issued until seven days after bids or proposals have been opened. [28 F.R. 12547, Nov. 23, 1963]

§ 1.1002-5 Information releases to newspapers and trade journals.

A brief announcement of the proposed purchase may be made available to newspapers, trade journals, and magazines for publication without cost to the Government.

[28 F.R. 12547, Nov. 23, 1963]

§ 1.1002-6 Paid advertisements in newspapers and trade journals.

(a) Scope. This section implements 5 U.S.C. 22a; 44 U.S.C. 321, 322, and 324; and Title 7, Chapter 5200, General Accounting Office Policy and Procedures Manual for Guidance of Federal Agencies.

(b) Definition. As used in this paragraph 1-1002.6, "newspaper" means a publication printed and distributed at

stated intervals to convey news and includes trade journals which carry news in addition to technical matter.

(c) General. Generally, paid advertisements in newspapers shall not be used. However, when time will permit, the publication of essential details of invitations for bids in newspapers as paid advertisements may be authorized, as indicated below, when necessary to secure effective competition, provided written authority to advertise has been obtained in advance.

(d) Limitation. No advertisement of a proposed procurement shall be published in any newspaper published and printed in the District of Columbia unless the supplies are to be furnished for use, or the labor is to be performed, in the District of Columbia or in the adjoining counties of Maryland or Virginia.

(e) Authority and delegation. Authority to approve the publication of paid advertisements in newspapers is vested by statute in the Secretary of each Department. This authority may be delegated by the Secretary in writing, by position designation, to subordinates within his Department. The delegation shall specify the limitations, if any, of the authority granted. Administrative duties involved in accomplishing the advertising may be assigned by the delegate to subordinates, by name or position, by suitable instruments in writing, personally signed by the delegate, setting forth the extent of the administrative duties involved. A copy of the instrument delegating authority to advertise and a copy of the instrument assigning administrative duties thereunder will either be attached to the first voucher submitted for payment or shall be forwarded immediately upon issuance of the General Accounting Office address to which records of the Department are submitted for audit purposes. Copies of such instruments shall also be attached to the duplicate voucher submitted to the paying office pursuant to paragraph (1) of this section.

(f) Request for authority to place advertisement. (1) Special or general authority to place advertisements in newspapers must be secured in advance and as prescribed by each Department. Special authority authorizes the publication of a given advertisement a specified number of times in a designated newspaper or newspapers. General authority authorizes the publication during a fiscal year, as designated, as such adver