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lating to the price, such as profits, cost (b) Promptly after making awards in of transportation, and cash discounts. any procurement in excess of $10,000,
(b) Comparison of the business repu- the contracting officer normally shall tation, capacity, and responsibility of
give written notice to the unsuccessful the respective persons or firms who sub- offerors that their proposals were not mit offers.
accepted. Upon request, unsuccessful (c) Consideration of the quality of
offerors whose offered prices were lower the property or services offered, including
than those of the contractor which rethe same or similar property or services
ceived the award shall be furnished the previously furnished, with due regard
reasons why their proposals were not acto conformance with specification re
cepted; but in no event will an offeror's quirements.
cost breakdown, profit, overhead rates, (d) Consideration of delivery require
trade secrets, or other confidential busi
ness information be disclosed to any ments.
other offeror. (e) Discriminating use of price and
(c) Classified information shall be cost analyses.
furnished only in accordance with (f) Investigation of price aspects of agency regulations governing the hanany important subcontract.
dling of classified information. (g) Individual bargaining, by mail or
Subpart 1-3.2—Circumstances by conference.
Permitting Negotiation (h) Consideration of cost sharing.
§ 1-3.200 Scope of subpart. (i) Effective utilization in general of the most desirable type of contract.
Subject to the limitations prescribed (j) Consideration of the size of the
in this Subpart 1-3.2, or as otherwise business concern.
provided by law, procurement may be
effected by negotiation under any one of (k) Consideration as to whether the
the exceptions contained in sections prospective supplier requires expansion
302(c) (1) through 302(c) (15) of the Act. or conversion of plant facilities.
National emergency. (1) Consideration as to whether the
Pursuant to the authority of section prospective supplier is located in a sur
302(c) (1) of the Act, purchases and conplus or scarce labor area.
tracts may be negotiated if “determined (m) Consideration as to whether the
to be necessary in the public interest durprospective supplier will have an ade
ing a period of national emergency dequate supply of qualified labor.
clared by the President or by the (n) Consideration of the extent of Congress.” subcontracting.
(a) Duration. Under present circum(0) Consideration of the existing and stances, authority of this section shall potential workload of the prospective extend for the duration of the national supplier.
emergency declared pursuant to Presi(p) Consideration of broadening the
dential Proclamation 2914, dated Deindustrial base by the development of
cember 16, 1950. additional suppliers.
(b) Application. The authority of (q) Consideration of whether the con
this section shall be used only to the extractor requires Government furnished
tent of furthering the policy (enunciated property, machine tools, or facilities.
in Defense Manpower Policy No. 4 (re
vised November 5, 1953, and amended § 1-3.103 Dissemination of
July 27, 1955) and in Bureau of the
Budget Bulletin No. 58–5, dated March
25, 1958) which encourages the placing (a) Synopses of unclassified requests
of contracts and facilities in areas of subfor proposals and contract awards shall
stantial labor surplus, and upon the debe prepared and publicized in the De
termination of the head of the agency partment of Commerce “Synopsis of U.S.
concerned that to do so is necessary in Government Proposed Procurement,
the public interest. Contracts entered Sales, and Contract Awards,” in accord
into pursuant to this authority shall be ance with procedures established by each
negotiated in accordance with agency agency.
§ 1-3.202 Public exigency.
erty and services which would properly Pursuant to the authority of section
be grouped together in a single transac
tion and which would be included in a 302(c) (2) of the Act, purchases and contracts may be negotiated without formal
single advertisement for bids if the proadvertising if “the public exigency will
curement were being effected by formal not admit of the delay incident to
advertising. Purchases or contracts agadvertising.”
gregating more than $2,500 shall not be
broken down into several purchases or (a) Application. In order for this au
contracts of less than $2,500. thority to be used, the need must be
(b) Procedure. Purchases and concompelling and of unusual urgency, as
tracts aggregating not more than $2,500 when the Government would be seriously
shall be made in accordance with Subinjured, financially or otherwise, if the
part 1-3.6. property or services to be purchased or contracted for were not furnished by a
§ 1-3.204 Personal or professional servcertain time, and when they could not be
ices. procured by that time by means of formal advertising. This applies irre- Pursuant to the authority of section spective of whether that urgency could
302(c) (4) of the Act, purchases and conor should have been foreseen. For tracts may be negotiated without formal example, this authority may be used advertising if “for personal or profeswhen property or services are needed
sional services." at once because of a fire, flood, explosion,
(a) Application. This authority shall
be used only when all of the following or other disaster.
conditions have been satisfied: (b) Limitations. Every contract ne
(1) If personal services, they are gotiated under this authority shall be
required to be performed by an indiaccompanied by a signed statement of
vidual contractor in person (not by a the contracting officer justifying its use.
concern); if professional services, they When purchase action under this au
may be performed either by an individual thority is based on telephone or other
contractor in person or a concern; oral offers, a written confirmation of the
(2) The services are of a profesaccepted offer shall be secured and made a part of the purchase case file. A rec
sional nature, or are to be performed ord shall be established also in such
under Government supervision and paid cases containing the following informa
for on a time basis; and tion as a minimum: name and address (3) Procurement of the services is of each offeror quoting, item description, authorized by law and is effected in acunit price, delivery time, and discount cordance with the requirements of appliterms. If quotations lower than the cable law. accepted quotation are received, the rea- (b) Limitations. sons for their rejection shall be recorded
(1) The authority of this section 1and made a part of the purchase file. 3.204, and the conditions imposed upon Negotiation under this authority is sub
its use, shall not apply to the procureject to the preparation of appropriate
ment by negotiation of any types of servdeterminations and findings prescribed ices authorized under any other proviin Subpart 1-3.3.
sions of this subpart. § 1-3.203 Purchases not in excess of
(2) Use of authority of this section $2,500.
1-3.204 for professional engineering, ar
chitectural and landscape architectural Pursuant to the authority of section
services for any public building or public 302 (c)(3) of the Act, purchases and con
improvement (exclusive of bridges, roads, tracts may be negotiated without formal
sidewalks, sewers, mains, or similar advertising if “the aggregate amount in
items) the construction cost of which volved does not exceed $2,500.".
is estimated to be $200,000
more, shall (a) Application. Contracts or pur
be subject to prior clearance with the chases aggregating $2,500 or less shall be
General Services Administration. made under the authority of this section 1-3.203 rather than under any of the
§ 1-3.205 Services of educational insti. other authorities for negotiation. In
tutions. arriving at the "aggregate amount in- Pursuant to the authority of section volved" there must be included all prop- 302(c) (5) of the Act, purchases and contracts may be negotiated without formal (b) Limitations. Whenever the probadvertising if “for any service to be ren
able cost of property to be purchased by dered by any university, college, or other
negotiation under this authority will exeducational institution."
ceed $10,000, suitable advance publicity (a) Application. The following are of the proposed purchase shall be given illustrative of circumstances with respect for a period of at least 15 days, wherever to which this authority may be used: practicable. The requirement of “suit
(1) Educational or vocational train- able advance publicity” shall be deemed ing services to be rendered by any uni
to be complied with if circulation of noversity, college, or other educational in- tice of intent to negotiate is made to stitution in connection with the training
business concerns engaged in the manuand education of personnel, and for nec
facture and/or sale of the products inessary material, services, and supplies volved, including qualified concerns furnished by any such institution in con
known to have current interest in sellnection therewith.
ing such products to the Government. (2) Experimental, developmental, or
Where desirable, publication of the inresearch work (including services, tests
tention to negotiate through newspapers and reports necessary or incidental
or other similar media may be used to thereto) to be conducted by any univer
supplement circularization. sity, college, or other educational insti- § 1-3.208 Property purchased for autution; and reports furnished in con
thorized resale. nection therewith.
Pursuant to the authority of section (3) Analyses, studies, or reports 302(c) (8) of the Act, purchases and con(statistical or otherwise) to be conducted
tracts may be negotiated without formal or prepared by any university, college, advertising if “for property purchased or other educational institution.
for authorized resale." § 1-3.206 Purchases outside the United
(a) Application. This authority shall States.
be used only for purchases for resale Pursuant to the authority of section through commissaries or other similar 302(c) (6) of the Act, purchases and con- facilities, and ordinarily only for purtracts may be negotiated without formal chases of articles with brand names or advertising if “the supplies or services of a proprietary nature as required by are to be procured and used outside the patrons of the selling activities. limits of the United States and its pos- (b) Limitations. Whenever the prob-, sessions." This authority shall be used able cost of property to be purchased by only for the procurement of property or negotiation under this authority will services which are actually purchased exceed $10,000, suitable advance publicity from sources outside and used outside
of the proposed purchase shall be given the limits of the United States, its Ter- for a period of at least 15 days, wherever ritories and possessions, such as property practicable. This shall be accomplished or services (including construction) for in the manner set forth in section 1overseas installations or for the use of 3.207(b). When exercising this authoroverseas personnel.
ity, regardless of the probable cost, § 1-3.207 Medicines or medical sup
competitive proposals shall be solicited plies.
from all such qualified sources of supply
as the contracting officer deems necesPursuant to the authority of section 302(c) (7) of the Act, purchases and con
sary to assure full and free competition,
consistent with the type and character tracts may be negotiated without formal
of the procurement. advertising if "for medicines or medical supplies.”
§ 1-3.209 Subsistence supplies. (a) Application. This authority shall Pursuant to the authority of section be used only for such supplies as are 302(c) (9) of the Act, purchases and conpeculiar to the field of medicine, includ- tracts may be negotiated without formal ing technical equipment, such as surgi- advertising if "for perishable or noncal instruments, surgical and orthopedic perishable subsistence supplies.” appliances, X-ray supplies and equip
(a) Application. The authority of ment, and the like.
this paragraph may be used for the pur
chase of any and all kinds of subsistence those which may be negotiated under supplies.
sections 302 (c) (5) or (11) of the Act. (b) Limitation. When exercising this
(9) When the contemplated conauthority, competitive proposals shall be tract is for stevedoring, terminal, waresolicited from all such qualified sources housing, or switching services, and when of supply as the contracting officer
either the rates are established by law deems necessary to assure full and free
or regulation, or the rates are so numercompetition, consistent with the type
ous or complex that it is impracticable and character of the procurement.
to set them forth in the specifications of
a formal invitation for bids. § 1-3.210 Impracticable to secure com
(10) When the contemplated conpetition by formal advertising.
tract is for commercial ocean or air Pursuant to the authority of section transportation, including time charters, 302(c) (10) of the Act, purchases and space charters, and voyage charters over contracts may be negotiated without trade routes not covered by common carformal advertising if "for supplies or riers (negotiation for transportation services for which it is impracticable services when the services can be proto secure competition.”
cured from common carriers is author(a) Application. The following are
ized by section 321 of the Transportation illustrative of circumstances with re
Act of 1940 (49 U.S.C. 65)-see section spect to which this authority may be 1-3.215), and including services for the used:
operation of Government-owned vessels
or aircraft. (1) When property or services can be obtained from only one person or
(11) When it is impossible to draft firm (sole source of supply).
for an invitation for bids adequate speci(2) When competition is precluded
fications or any other adequately debecause of the existence of patent rights,
tailed description of the required propcopyrights, secret processes, control of
erty or services. basic raw material, or similar circum
(12) When the contemplated constances.
tract is for services related to the pro(3) When bids have been solicited
curement of perishable subsistence, such
as protective storage, icing, processing, pursuant to the requirements of formal advertising, and no responsive bid has
packaging, handling, and transportation, been received from a responsible bidder.
and it is impracticable to advertise for
such services a sufficient time in advance (4) When bids have been solicited
of the delivery of the perishable subpursuant to the requirements of formal
sistence. advertising and the responsive bid or bids do not cover the quantitative re
(b) Limitations. Each contract nego
tiated under this authority shall be acquirements of the invitation for bids, in which case, negotiation is permitted for
companied by a signed statement of the
contracting officer justifying its use. the remaining requirements of the invitation for bids.
8 1-3.211 Experimental, developmental, (5) When the contemplated pur
or research work. chase is for training film, motion picture
Pursuant to the authority of section productions, or manuscripts.
302(c) (11) of the Act, purchases and (6) When the contemplated con- contracts may be negotiated without tract is for technical nonpersonal serv- formal advertising if “the agency head ices in connection with the assembly, in- determines that the purchase or constallation, or servicing (or the instruction tract is for experimental, developmental, of personnel therein) of equipment of a or research work, or for the manufacture highly technical or specialized nature. or furnishing of property for experi
(7) When the contemplated con- mentation, development, research, or tract involves maintenance, repair, alter- test.” ation, or inspection and the exact nature (a) Application. The following are or amount of the work to be done is not illustrative of circumstances with respect known.
to which this authority may be used: (8) When the contemplated con
(1) When the contemplated contract is for studies or surveys other than tract relates to theoretical analysis, ex
ploratory studies, and experimentation and contracts may be negotiated without in any field of science or technology. formal advertising if "for equipment
which the agency head determines to be (2) When the contemplated con
technical equipment, and as to which he tract is for developmental work and calls
determines that the procurement thereof for the practical application of investiga
without advertising is necessary in spetive findings and theories of a scientific
cial situations or in particular localities or technical nature.
in order to assure standardization of (3) When the contemplated con- equipment and interchangeability of tract is for such quantities and kinds
parts and that such standardization and of equipment, supplies, parts, accessories, interchangeability is necessary in the or patent rights thereto, and drawings public interest.” or designs thereof, as are necessary for experimentation, development, research,
(2) This section 1-3.213 provides
authority only to employ negotiation as or test.
distinguished from advertising and does (4) When the contemplated con
not constitute authority to make purtract is for services, tests, and reports
chases of equipment. The latter must necessary or incidental to experimental,
be elsewhere derived. developmental, or research work.
(b) Application. (b) Limitations. This authority shall not be used for contracts for quantity
(1) This authority may be used for production, except that such quantities
purchasing additional units and replacemay be purchased as are necessary to
ment items of technical equipment and permit complete and adequate experi
spare parts by negotiation in order to mentation, development, research, or
assure standardization of equipment and test. Research or development contracts
interchangeability of parts where, in which call for the production of a rea
special situations or in particular localisonable number of experimental or test
ties, such standardization and intermodels or prototypes shall not be re
changeability is determined necessary garded as contracts for quantity produc
in the public interest. Examples of sittion. Negotiation under this authority is
uations where this authority may be used also subject to the preparation of appropriate determinations and findings
(i) Where, in special situations or ings prescribed by Subpart 1–3.3.
in particular localities, it has been found
necessary to limit the variety and quan§ 1-3.212 Purchases not to be publicly tity of parts that must be carried in disclosed.
stock. Pursuant to the authority of section
(ii) Where standardization of 302(c) (12) of the Act, purchases and technical equipment is necessary in specontracts may be negotiated without for- cial situations or in particular localities mal advertising if "for property or serv- so that parts may be available and interices as to which the agency head deter- changed among items of damaged or mines that the character, ingredients, or worn equipment. components thereof are such that the
(iii) Where, in special situations purchase or contract should not be
or particular localities, technical equippublicly disclosed.”
ment is available from a number of (a) Application. This authority shall suppliers which would have such varybe used only when required by considera- ing performance characteristics (nottions of national security.
withstanding detailed specifications and (b) Limitations. Negotiation under
rigid inspection) as would prevent standthis authority is subject to the prepara
ardization and interchangeability of tion of appropriate determinations and
parts. findings prescribed by Subpart 1-3.3.
(2) Consideration shall be given to
the following and other pertinent factors § 1-3.213 Technical equipment requir- before making a determination to proing standardization and interchange
cure specified makes and models under ability of parts.
the authority of this section 1-3.213: (a) Authority.
(i) The practicability of inter(1) Pursuant to the authority of changing parts and cannibalizing equipsection 302(c) (13) of the Act, purchases ment.