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CHAPTER 5A-FEDERAL SUPPLY SERVICE,
GENERAL SERVICES ADMINISTRATION

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SOURCE: §§ 5A-1.000 to 5A-1.7107 appear at 28 F.R. 6986, July 9, 1963. § 5A-1.000 Scope of part.

This part describes the method by which the Federal Supply Service implements and supplements the Federal Procurement Regulations (Chapter 1 of Title 41, Code of Federal Regulations) and the GSA-wide procurement policies and procedures (Chapter 5 of the General Services Administration Procurement Regulations). In addition, it contains policies and procedures which implement and supplement Chapter 1 and Chapter 5.

Subpart 5A-1.1-Introduction

§ 5A-1.101 Scope of subpart.

This subpart establishes Chapter 5A of the General Services Administration Procurement Regulations (41 CFR Ch. 5A), states its relationship to the Federal Procurement Regulations (FPR) and Chapter 5 of the General Services Administration Procurement Regulations (GSPR), and sets forth other introductory information.

§ 5A-1.102 Establishment of Chapter 5A, General Services Administration Procurement Regulations.

This Chapter 5A of GSPR is prescribed by the Commissioner, Federal Supply Service, and is established to provide all Federal Supply Service (FSS) activities with additional uniform policies and procedures applicable to the procure

ment of personal property and nonpersonal services.

§ 5A-1.103 Relationship of Chapter 5A to the FPR and Chapter 5, GSPR. (a) GSPR Chapter 5A implements and supplements the FPR and GSPR Chapter 5. Implementing material is that which expands upon related FPR or Chapter 5 material. Supplementing material is that for which there is no counterpart in the FPR or Chapter 5.

(b) Material published in the FPR or GSPR Chapter 5 becomes effective throughout FSS upon the effective date of the particular FPR or Chapter 5 material. Such material will not be repeated, paraphrased, or restated in Chapter 5A. Therefore, all three must be reviewed to obtain comprehensive coverage of FSS-wide procurement policies and procedures.

(c) Material in Chapter 5A implements and supplements but does not supersede the FPR or Chapter 5 unless a deviation has been authorized and the deviation is explicitly referenced. In cases of other conflict, or when Chapter 5A contains no related material implementing the FPR or Chapter 5, the FPR or Chapter 5 will govern.

§ 5A-1.104 Applicability.

Chapter 5A applies to all purchases and contracts made by FSS for the procurement of personal property and nonpersonal services.

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(a) Certain FSS procurement policies and procedures which come within the scope of this chapter nevertheless may be excluded therefrom when there is justification. These inclusions include the following categories:

(1) Subject matter which bears a security classification.

(2) Policies or procedures which are expected to be effective for a period of less than six months.

(3) Policies or procedures which are effective on an experimental basis for a reasonable period.

(4) Policies or procedures pertaining to other functions of FSS as well as to procurement functions and there is need to make the issuance available simultaneously to all FSS employees concerned.

(5) Where speed of issuance is essential, numerous changes are required, and

all necessary changes cannot be made promptly.

(b) Procurement policies and procedures issued in other than the FPR System format under paragraphs (a) (4) and (5), above, shall be codified into Chapter 5A at the earliest practicable date, but in any event not later than six months from date of issuance.

§ 5A-1.106 Method of issuance.

(a) All Chapter 5A material deemed necessary for business concerns, and others interested, to understand FSS procurement policies and procedures will be published in the FEDERAL REGISTER. Other related material also may be published in the FEDERAL REGISTER When its inclusion will provide a logical, comprehensive statement of FSS procurement policies and procedures.

(b) Chapter 5A material published in the FEDERAL REGISTER will be published in cumulative form in Chapter 5A of Title 41 of the Code of Federal Regulations (41 CFR Ch. 5A). The FEDERAL REGISTER and Title 41 of the Code of Federal Regulations may be purchased from the Superintendent of Documents, Government Printing Office, Washington 25, D.C. § 5A-1.107

Arrangement.

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(a) Generally, the numbering system used in Chapter 5A conforms to that of the FPR (see § 1-1.007-2). Thus, a particular procurement policy or procedure is identified by the same number in the FPR, Chapter 5, and Chapter 5A, except that the first digit of the number is either 1, 5, or 5A.

(b) Where Chapter 5A implements a part, subpart, section, or subsection of the FPR or Chapter 5, the implementing part, subpart, section, or subsection of Chapter 5A will be numbered (and captioned) to correspond to the FPR or the Chapter 5 part, subpart, section, or subsection.

(c) Where Chapter 5A supplements the FPR or Chapter 5 and thus deals with subject matter not contained in the FPR or Chapter 5, numbers in the group 70 through 89 will be assigned to the respective supplementing parts, subparts, sections, or subsections.

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(a) Citation in formal documents, such as legal briefs, shall give the number of the part, subpart, or section of Chapter 5A following the words "General Services Administration Procurement Regulations" and shall include an appropriate reference to "41 CFR —” where the material has been published in the FEDERAL REGISTER.

(b) Any section of Chapter 5A, for purpose of brevity, may be informally identified as "GSPR" followed by the section number. For example, this paragraph could be identified in a memorandum as "GSPR 5A-1.108(b)".

§ 5A-1.109 Deviation.

(a) The term "deviation" as used in this Chapter 5A is defined in the same manner as described in § 1-1.009-1.

(b) In order to maintain uniformity to the greatest extent feasible, deviation by FSS activities from this Chapter 5A will be kept to a minimum and controlled as follows:

(1) Deviation will be made only after prior approval by the Assistant Commissioner for Procurement, if the deviation does not affect the programs and operations assigned to any other Assistant Commissioner of FSS.

(2) Deviation affecting the programs and operations of two or more Assistant Commissioners, FSS, will be made only after prior approval by the Commissioner, FSS.

(3) Requests for authority to deviate from Chapter 5A shall be submitted to the Assistant Commissioner for Procurement. Such requests will be supported by statements adequate to disclose fully the nature of the deviation and the reasons for special action.

(4) Deviations in classes of cases, authorized under subparagraphs (1) and (2), above, will expire, unless extended, 12 months from the date of approval, unless sooner rescinded, without prejudice to any action taken thereunder. Subpart 5A-1.71-Criteria for Determining Method of Supply

§ 5A-1.7101 General.

This subpart establishes criteria for guidance in determining when requirements for items needed on a recurring basis should be consolidated for procurement at one or more points, and whether such consolidated requirements should be purchased and stored at redistribution points in advance of immediate need for issue to use points as needs arise; purchased in definite quantities for direct delivery to use points; or contracted for in advance of immediate need under indefinite delivery type contracts covering specific periods and providing for delivery to use points as needs arise. § 5A-1.7102 Definition of use point.

The term "use point," as used in this subpart, means that point from which supplies are issued to consumers or equipment is placed in use, as distinguished from storage points where supplies and equipment are issued to redistribution points.

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applying these criteria to specific items and requirements therefor, appropriate consideration shall be given to any other significant factors not mentioned herein. § 5A-1.7104 Purchase for storage and issue.

The following criteria will govern in determining whether an item can be handled most advantageously through consolidated purchasing for storage and issue to use points:

(a) The items shall be physically adaptable to storage and issue and of such a character that it is feasible to forecast with reasonable accuracy overall requirements of the use points served.

(b) Rate of use and frequency of ordering by use points shall be sufficient to warrant storage and issue.

(c) Rate of deterioration or obsolescence shall be sufficiently low to avoid unnecessary loss.

(d) Price advantage through bulk buying shall be sufficient to render storage and issue more economical, all costs both direct and indirect considered, or conditions exist where any of the following factors require consolidated purchasing of items suitable for storage and issue:

(1) Where close inspection or testing is necessary to assure quality, or where repetitive inspection and test of small lots are prohibitive from the standpoint of cost or potential urgency of need.

(2) Where advance purchase and storage are necessitated by long procurement lead time.

(3) Where an item is of special manufacture or design and is not readily available from commercial sources.

(4) Where an adequate industry distribution system does not exist to assure availability at use points.

(5) Where contracts for production quantities are necessary to secure timely deliveries and advantageous prices.

(6) Where market conditions are such that central procurement is required to secure adequate supply.

§ 5A-1.7105 Consolidated purchase for direct delivery.

The following criteria shall govern in determining whether an item can be most advantageously handled through consolidated purchase for direct delivery to use points:

(a) The items shall be equipment or supply items of such a character that it

is feasible to forecast requirements for delivery to specific use points.

(b) The greatest price advantage, both direct and indirect costs considered, shall be obtainable through definite quantity purchasing, or conditions exist where any of the following factors require consolidated purchasing of such items for direct delivery to use points:

(1) Where an item is of special manufacture or design and is not readily available from commercial sources.

(2) Where market conditions are such that central procurement is required to assure adequate supply.

(3) Where contracts for production quantities are necesary to secure timely deliveries and advantageous prices.

(4) Where quantity is large enough to assure lowest transportation cost, or conversely, where transportation costs for small quantity redistribution are so excessive that it is not feasible to store and issue the item.

§ 5A-1.7106 Purchase through indefinite delivery type contracts.

The following criteria shall govern in determining whether an item can be most advantageously purchased through the medium of indefinite delivery type contracts, as described in § 1-3.405-5 (such as Federal Supply Schedules), covering specific periods and providing for delivery to use points as needs arise:

(a) The item shall be of such a character that:

(1) Handling on a storage and issue basis is not economically sound.

(2) It is either not feasible to forecast definite requirements for delivery to specific use points, or no advantage accrues for doing so.

(b) Industry distribution facilities shall be adequate to serve properly the use points involved.

(c) Price advantage shall be sufficient to warrant the cost involved in maintaining indefinite delivery type contracts, or conditions exist where any of the following factors require handling on that basis:

(1) Where acute competitive bidding problems exist based upon highly technical matters which can best be met by centralizing contracting work.

(2) Where item is of special manufacture or design and is not readily available from commercial sources.

(d) This method of purchase shall be used also when:

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