$9-5.000 Scope

(a) This part implements and supplements FPR Part 1-5, Special and Directed Sources of Supply.

(b) Provisions that pertain to procurement by operating and other onsite contracts are in Subpart 9-50.5.

Subpart 9-5.9 Use of GSA Supply Sources by Contractors
Performing Cost-Type Contracts

$9-5.900 Scope of Subpart.

This subpart prescribes policies and procedures to be followed by ERDA offices regarding the use of GSA supply sources by cost-reimbursement type contracts. For easier designation, these will be referred to as cost-type contractors in this part.

$9-5.901 Policy.

It is ERDA policy that cost-type contractors should meet their requirements from GSA sources of supply if these sources are made available to them, and if it is economically advantageous or otherwise in the best interest of the Government.

$9-5.902 Use of GSA supply sources by ERDA cost-type Contractors.

(a) Heads of procuring activities may authorize cost-type contractors and subcontractors where all higher tier contracts and subcontracts are cost type, to use General Services Administration (GSA) supply sources (i.e., items available through Federal Supply Schedule contracts and other GSA contracts and from GSA stores stock) in accordance with the requirements and procedures in FPR Subpart 1-5.9.

(b) Direct procurement by ERDA rather than by a cost-type contractor, shall be required where deemed necessary by the heads of procuring activities in order to carry out special requirements of appropriation acts or other applicable laws relating to particular items.

(c) Contracting officers, where reviewing the procurement systems and methods of those cost-type contractors that have been authorized to use GSA sources of supply, shall assure that provision is made for documenting the justification of procurements from

commercial

sources

of items available from GSA sources of supply. The senior procurement official, Headquarters, shall be informed of instances in which GSA sources of supply are not used because of the quality of the item available from GSA or when a Federal Supply Schedule contractor refuses to honor an order.

Subpart 9-5.10 Use of Excess Materials from GSA Inventories $9-5.1001 Use of excess materials from General Services

Administration inventories.

(a) It is the policy of ERDA to comply with the provisions of the Federal Property Management Regulations Part 101-14, Strategic Critical and Other Material, as supplemented from time to time by FPMR Bulletins.

(b) Section 3.0 of the Defense Mobilization Order 8600.1B, dated April 11, 1973, provides that "Under such policies and procedures as the Administrator of General Services may prescribe, Government agencies which directly or indirectly use strategic and critical materials shall fulfill their requirements through the use of materials in Government inventories that are excess to the needs thereof."

(c) ERDA offices shall fulfill their requirements for strategic and critical materials through use of the excess strategic and critical materials in the GSA inventories.

(d) General Services Administration (ANSD), Washington, D.C., 20405, should be contacted directly for any detailed information concerning specifications, prices, and methods of placing the order.

Subpart 9-5.51 Use of Government Sources of Supply

$9-5.5100 Scope of subpart.

This subpart sets forth procedures to be followed in making purchases from Government sources. (For the purchases of specific items, see Subpart 9-5.52, Procurement of Special Items.)

$9-5.5101 Policy

It is ERDA policy to use Government sources of supply to the fullest extent practicable.

$9-5.5102 Use of GSA supply sources for ERDA direct procurements.

Items listed in Federal Supply Schedules and in Federal Supply Service stores catalogs shall be procured in accordance with FPMR 101-26.

$9-5.5103

Use of Government sources of supply other than GSA.

(a) Heads of procuring activities may authorize cost-type contractors to acquire materials and services directly from such Government sources of supply in accordance with the requirements of this subsection or the consent of agencies involved.

(b) Direct procurement by ERDA, rather than by a cost-type contractor, shall be required where deemed necessary by the head of the procuring activity in order to carry out special requirements of appropriation acts or other applicable laws relating to particular

items.

$9-5.5104 Exclusive use on Government work.

Materials, supplies, and equipment procured from Government sources of supply under the procedures described herein must be used exclusively in connection with Government work except as otherwise authorized by heads of procuring activities.

Many supply facilities and contracts of the Department of Defense are made available to ERDA and its cost-type contractors. Procuring activities will be notified by the senior procurement official, Headquarters, when such contracts and facilities are made available. Inquiries in connection with these sources may be directed to the senior procurement official, Headquarters. Requisitions or purchase orders shall be submitted directly to these sources, unless otherwise specified.

$9-5.5105-2 Requisitions.

Contractors' requisitions submitted to Defense supply centers should include the following statement on the requisition: "The consignee of the supplies and materials requisitioned herein is acting in behalf of and as agent for the Energy Research & Development Administration with respect to the expenditure of Government funds." Orders submitted directly to ERDA contractors shall be accompanied by an authorization substantially similar to that in FPR 1-5.903-2.

$9-5.5106 Procurement under the Economy Act

from or through another Federal agency.

$9-5.5106-1 Scope

This section deals with orders for supplies or services placed

with another Government department or agency pursuant to the authority of the Economy Act of June 30, 1932, as amended (31 U.S.C. 686), except that it does not apply to any procurement covered by the other sections or subparts of ERDA-PR 9-5 or 9-50.5.

$9-5.5106-2 Authorization and policy relating to placing and filling orders.

(a) It is the policy of ERDA not to place Government agencies in direct competition with commercial sources. Accordingly, prior to soliciting bids or proposals from commercial sources, it shall be decided whether to obtain supplies or services from Government agencies. Invitations for bids and requests for proposals shall not be sent to Goverment agencies. Current market prices, recent procurement prices, or prices obtained by informational bids as provided in FPR 1-1.314 may be used to ascertain whether procurement can be affected more cheaply from commercial sources.

(b) Each procuring activity, when it is in the interest of the Government to do so, may place delivery orders with any other Government department or agency for supplies or services that any such requisitioned department or agency may be in a position and willing to furnish or perform.

Interagency agreements may take any form which will adequately reflect the interest of the parties. The following provisions provide guidelines for the preparation of such agreements.

(a) The parties to the interagency agreement.

(b)

Contract number, and modification number, if any.

(c) Scope of work.

(d)

NOTE: This may be identified by reference to the specific proposal.

Period of interagency agreement and/or duration of the work.

(e) Cost estimate of the project and the amount of funds to be provided by the ERDA. Include (1) the total estimated cost of the work for the period of time specified in the agreement; (2) the capital equipment, if any, approved for acquisition under the agreement; and (3) limitations, if any, on the reimbursement of costs by ERDA which are not set forth in the agreement. If ERDA participates with another agency or agencies in sponsoring a work project, the amount of

the contribution to be made by each agency and the basis for distributing the costs incurred shall be specified.

(f) Method of financing to be used.

(g) Standard clauses should be used as appropriate.

$9-5.5106-4

Methods of financing employed by ERDA.

(a) Reimbursement basis. ERDA requires except as specified in paragraphs (b) and (c) of this section, that work to be done by other agencies shall be financed by reimbursement on the basis of current billings for progress payments. This approach avoids much of the accounting and reporting work required when other methods of financing are used.

(b) Consolidated working fund advance. A consolidated working fund advance shall be used to finance construction projects or the acquisition of goods or services to be furnished by the servicing agency within the same fiscal year in which the advance is made, only after a determination has been made in accordance with paragraph (a) of this section that the reimbursement basis is not to be used.

(c) Appropriation transfer. An appropriation transfer shall be used to finance larger construction projects or the acquisition of significant goods or services to be furnished by the servicing agency where the work will extend beyond the fiscal year in which the transfer is made, only after a determination has been made in accordance with paragraph (a) of this section that the reimbursement basis is not to be used.

Costs actually incurred which are necessary or incident to the performance of the work are to be considered allowable for costreimbursement purposes. Such costs include direct and, where applicable, a properly allocable portion of indirect costs, as follows:

(a) Direct costs are the costs that can be directly identified with and charged to the work under the agreement. Examples of such costs are salaries and wages, technical services, materials, travel and transportation, comunications, and any facilities and equipment expressly approved for purchase under the interagency agreement.

(b) Indirect costs shall be limited to the properly allocable portion of costs that cannot be charged directly to the work but that can be shown as mutually benefiting the work covered by the interagency agreement as well as other work of the servicing agency.