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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.

§ 1-3.201

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

procurement information.

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.

procedures.

§ 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.

are:

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