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§ 1-1.507 Use of Standard Form 119.

(b) Any negotiated contract in which

the aggregate amount involved does 8 1-1.507-1 Form prescribed.

not exceed $10,000.

(c) Any negotiated contract for perPursuant to the Act and in further

ishable subsistence supplies in which ance of the objectives stated in § 11.500, Standard Form 119 (December

the aggregate amount involved does

not exceed $25,000. 1952), Contractor's Statement of Con

(d) Any contract for services which tingent or Other Fees for Soliciting or

are required to be performed by an inSecuring or Resulting from Award of

dividual contractor in person under Contract, is hereby prescribed and

Government supervision and paid for shall be used in accordance with the

on a time basis. provisions of this subpart. Except as

(e) Any contract for public utility provided in § 1-1.507-3, this form shall

services furnished by a public utility be used without deviation by executive

company where the utility company's agencies whenever either part of the

rates for the services furnished are inquiry provided for in § 1-1.505 is an subject to regulation by Federal, swered in the affirmative. The form State, or other regulatory body and shall be used also, without deviation, the public utility company is the sole in any other case where an executive source of supply. agency desires to obtain such informa. (f) Contracts to be made in foreign tion. When, after use of the form, fur countries. ther information is required, it may be (g) Any other contracts, individually obtained in any appropriate manner. or by class, of the Department of DeSubmission of the form shall be re- fense, designated by the Secretary, quired, normally, only of successful Reports of any such exceptions shall bidders and contractors.

be filed promptly with the Administra

tor of General Services. § 1-1.507-2 Statement in lieu of form.

(29 FR 10104, July 24, 1964, as amended at Any bidder or proposed contractor 39 FR 28437, Aug. 7, 1974; 40 FR 44137, who has previously furnished a Stand Sept. 25, 1975) ard Form 119 to the office issuing the invitation or negotiating the contract

§ 1-1.508 Enforcement. may be permitted to accompany his

8 1-1.508-1 Failure or refusal to furnish bid, or submit in connection with the

representation and agreement. proposed contract, a signed statement (a) indicating when such completed

Each executive agency shall take the form was previously furnished, (b)

necessary steps to assure that the indiidentifying by number the previous in

cated successful bidder or proposed vitation or contract in connection with

contractor has furnished a representawhich such form was submitted, and

tion (negative or affirmative) and (c) representing that the statements in

agreement as described in § 1-1.505. such previously furnished form are ap

(a) If the indicated successful bidder plicable to such subsequent bid or con

or proposed contractor makes such

representation in the negative, such tract. In such case, submission of an additional completed Standard Form

representation may be accepted and

award made or offer accepted in ac119 need not be required.

cordance with established procedure. § 1-1.507-3 Exceptions.

(b) If the indicated successful bidder

or proposed contractor makes such The inquiry and agreement specified

representation in the affirmative, a in § 1-1.505 need not be made and sub

completed Standard Form 119 shall be mission of Standard Form 119 need

requested from the bidder or proposed not be requested in connection with contractor. In the case of formal ad. the following:

vertising, the making of an award in (a) Any advertised contract in which accordance with established procedure the aggregate amount involved does need not be delayed pending receipt of not exceed $25,000.

the form. In the case of negotiation, if

the proposed contractor makes such representation in the affirmative, he shall be required to file a completed Standard Form 119 prior to accept ance of the offer or execution of the contract unless the head of the executive agency concerned, or his author. ized representative, considers that the interest of the Government will be prejudiced by the suspension of negotiations pending receipt and consideration of an executed Standard Form 119.

(c) If the indicated successful bidder or proposed contractor fails to furnish the representation and agreement as described in § 1-1.505, such failure shall be considered a minor informality and, prior to award, such bidder or proposed contractor shall be afforded a further opportunity to furnish such representation and agreement. A refusal or failure to furnish such representation and agreement, after such opportunity has been afforded. shall require rejection of the bid or offer.

(a) If an award has not been made, or offer has not been accepted, determine whether the bid or offer should be rejected.

(b) If an award has been made or offer has been accepted, take action to enforce the covenant in accordance with its terms; that is, as the best interests of the Government may appear, annul the contract without liability or recover the amount of the fee involved.

(c) Consider the future eligibility as a contractor of the bidder or contractor in accordance with established procedure.

(d) Determine whether the case should be referred to the Department of Justice in accordance with established procedure with respect to determining matters of fraud or criminal conduct.

81-1.509 Preservation of records.

Executive agencies shall preserve, for enforcement or report purposes, at least one executed copy of any representation and completed Standard Form 119 (or statement in lieu of form) together with a record of any other pertinent data, including data as to action taken.

Subpart 1-1.6—Debarred, Suspended,

and Ineligible Bidders

$ 1-1.508-2 Failure or refusal to furnish

Standard Form 119. If the successful bidder or contractor, upon request, refuses or fails to furnish a completed Standard Form 119, or a statement in lieu thereof as provided in § 1-1.507-2, the executive agency concerned shall take one or more of the following actions, or other action, as may be appropriate:

(a) If an award has not been made or offer accepted, determine whether the bid or offer should be rejected.

(b) If the contract has been awarded or offer accepted, determine what action shall be taken, such as making an independent investigation or considering the eligibility of the contractor as a future contractor in accordance with established procedure.

§ 1-1.600 Scope of subpart.

This subpart prescribes policies and procedures relating to: (a) The debarment of bidders for cause, (b) the suspension of bidders for cause under prescribed conditions, and (c) the placement of bidders in ineligibility status for violations of the provisions of the Equal Opportunity clause. It is directly applicable to the advertised and negotiated purchases and contracts of executive agencies, including contracts for construction, repair, alteration, destruction, or dismantlement of public works or buildings. Other Federal agencies are requested to comply therewith in conducting their purchasing and contracting operations. (37 FR 23337, Nov. 2, 1972)

$ 1-1.508-3 Misrepresentations or viola

tions of the covenant against contin

gent fees. In case of misrepresentation, or violation or breach of the covenant against contingent fees, or some other relevant impropriety, the executive agency concerned shall take one or more of the following actions, or other action, as may be appropriate:

1-1.601 General.

(e) “Affiliates" means business con

cerns which are affiliates of each Debarment, suspension, and place

other when either directly or indirectment in ineligibility status are meas

ly one concern or individual controls ures which may be invoked by the

or has the power to control another, Government either to exclude or to

or when a third party controls or has disqualify bidders and contractors

the power to control both. from participation in Government contracting or subcontracting. These (37 FR 23337, Nov. 2, 1972) measures should be used for the pur. pose of protecting the interests of the

$ 1-1.602 Establishment and maintenance Government and not for punishment.

of a list of concerns or individuals de To assure the Government the bene

barred, suspended, or declared ineligi. fits to be derived from the full and ble. free competition of interested bidders. (a) Each executive agency shall esthese measures should not be institut- tablish and maintain, on the bases ed for any time longer than deemed contained in § 1-1.602-1, a consolidated necessary to protect the interests of list of concerns and individuals to the Government, and should preclude whom contracts will not be awarded awards only for the probable duration and from whom bids or proposals will of the period of non-responsibility. not be solicited as provided in $ 1

1.603. 8 1-1.601-1 Definitions.

(b) The list shall show as a minimum (a) “Debarment” means, in general, the following information: an exclusion from Government con (1) The names of those concerns or tracting and subcontracting for a rea individuals debarred or ineligible (in sonable, specified period of time com alphabetical order) with appropriate mensurate with the seriousness of the cross reference where more than one offense or failure or the inadequacy of name is involved in a single action; performance. However, in connection (2) The basis of authority for each with Executive Order 11246 of Sep- action; tember 24, 1965, as implemented by (3) The extent of restrictions imthe rules, regulations, and relevant posed; and orders of the Secretary of Labor in 41 (4) The termination date for each CFR Part 60, the term "debarment" debarred listing. also means an exclusion by reason of (c) Each executive agency shall deineligibility under the Secretary's termine, in its discretion, as the interrules from Government contracting or ests of the national security may resubcontracting for an indefinite period quire, the necessity for and degree of of time pending the elimination of the classification of its list and corre. circumstances for which the exclusion spondence relating thereto. If the was imposed.

agency determines that its list shall (b) “Suspension" means a disqualifi not be classified, the list should be cation from Government contracting marked "For Official Use Only” or and subcontracting for a temporary with a word or phrase of equivalent period of time because a concern or in meaning to prevent inspection of the dividual is suspected upon adequate contents by any and other than perevidence (see § 1-1.605) of engaging in Sonnel required to have access thereto. criminal, fraudulent, or seriously im (d) The list shall be kept current by proper conduct.

issuance of notices of additions and de(c) A "debarment list" or "debarred letions. bidders list” means a list of names of concerns or individuals against whom

8 1-1.602-1 Bases for entry on the deany or all of the measures referred to barred, suspended, and ineligible bidin this section have been invoked.

ders list. (d) “Bidders" means, wherever the Entry shall be made on the determ is used in this subpart, any offer barred, suspended, and ineligible list ors bidding pursuant to an invitation of firms or individuals on the followfor bids or a request for proposals. ing bases:

(a) Those listed by the Comptroller General in accordance with the provi. sions of section 3 of the Walsh-Healey Public Contracts Act (41 U.S.C. 37), which have been found by the Secretary of Labor to have violated any of the agreements or representations required by that Act.

(b) Those listed by the Comptroller General in accordance with the provi. sions of section 3 of the Davis-Bacon Act (40 U.S.C. 276a-2(a)), as found by the Comptroller General to have violated said Act.

(c) Those listed by the Comptroller General in accordance with the provisions of Part 5, section 56(b) of the Regulations of the Secretary of Labor issued pursuant to authority granted under Reorganization Plan 14 of 1950, as found by the Secretary of Labor to be in aggravated or wilful violation of the prevailing wage or overtime pay provisions of any of the following statutes

(1) Davis-Bacon Act (40 U.S.C. 276a).

(2) Anti-Kickback Act (18 U.S.C. 874, 40 U.S.C. 276b, c).

(3) The Contract Work Hours Standards Act (40 U.S.C. 327-330).

(4) National Housing Act (12 U.S.C. 1703).

(5) Hospital Survey and Construction Act (42 U.S.C. 291).

(6) Federal Airport Act (49 U.S.C. 1101).

(7) Housing Act of 1949 (42 U.S.C. 1401).

(8) School Survey and Construction Act of 1950 (20 U.S.C. 251).

(9) Defense Housing and Community Facilities and Services Act of 1951 (42 U.S.C. 1591).

(10) Federal Civil Defense Act of 1950 (50 App. U.S.C. 2281 (i)).

(11) Area Redevelopment Act of 1961 (42 U.S.C. 2518).

(12) Delaware River Basin Compact (sec. 15.1, 75 Stat. 714).

(13) Health Professions Educational Assistance Act of 1963 (sec. 721, 77 Stat. 167).

(14) Mental Retardation Facilities Construction Act (secs. 101, 122, 135, 77 Stat. 282, 284, 288).

(15) Community Mental Health Cen ters Act (sec. 205, 77 Stat. 292).

(d) Those the executive agency de. termines to debar administratively for any of the causes and under all of the appropriate conditions listed in $ 11.604.

(e) Those listed by the Director of the Office of Federal Contract Compliance of the Department of Labor on the Contract Ineligibility List, which gives the names of prime contractors and subcontractors that have been declared ineligible to participate in Government contracting or subcontracting by reason of noncompliance with the Equal Opportunity clause.

(f) Those the executive agency determines to suspend administratively for the reasons and under the conditions set forth in § 1-1.605.

(g) Those determined by an executive agency in accordance with section 3(b) of the Buy American Act (41 U.S.C. 10b(b)) to have failed to comply with the provisions of section 3(a) of that Act under any contract contain: ing the specific provision required by said section 3(a) and made by the agency for construction, alteration, or repair of any public building or public work. (29 FR 10104, July 24, 1964, as amended at 37 FR 23337, Nov. 2, 1972)

§ 1-1.603 Treatment to be accorded firms

or individuals in debarred, suspended, or ineligible status. Firms or individuals listed by the agency as debarred, suspended, or ineligible shall be treated as follows:

(a) Total restrictions. A contract shall not be awarded to a concern or individual that is listed on the basis of 8 1-1.602-1 (a), (b), (d), or (e), or to any concern, corporation, partnership, or association in which the listed concern or individual has actual control or a controlling interest; nor shall bids or proposals be solicited therefrom. However, when it is determined essential in the public interest by the head of an agency or his designee, an exception may be made with respect to a particular procurement action when a concern or individual is listed as debarred on the basis of § 1-1.602-1(d).

(b) Restrictions under statutes desig. nated in the regulations of the Secretary of Labor. A contractor listed on

the basis of § 1-1.602-1(c), or any con obtain a public or private contract, or cern, corporation, partnership, or asso. subcontract thereunder, or in the perciation in which that contractor has formance of such contract or subconactual control or a controlling interest, tract. shall be ineligible for a period of 3 (2) Conviction under the Organized years (from the date of publication by Crime Control Act of 1970, or convicthe Comptroller General) to receive tion of embezzlement, theft, forgery, any contracts subject to any of the

bribery, falsification or destruction of statutes listed in § 1-1.602-1(c).

records, receiving stolen property, or (c) Buy American Act restrictions.

any other offense indicating a lack of As specified in the Buy American Act

business integrity or business honesty (41 U.S.C. 10b(b)), contracts shall not

which seriously and directly affects be awarded for construction, alter

the question of present responsibility ation, or repair of public buildings or

, as a Government contractor. public works in the continental United

(3) Conviction under the Federal States or elsewhere to concerns or

Antitrust Statutes arising out of the their affiliates or individuals listed on

submission of bids or proposals. the basis of 8 1-1.602-1(g); nor shall bids or proposals therefor be solicited

(4) Violation of contract provisions, therefrom. However, firms or individ.

as set forth below, of a character uals listed on this basis may be award

which is regarded by the agency ined contracts and may be solicited for

volved to be so serious as to justify debids or proposals for other than con

barment action: struction, alteration, or repair of

(i) Willful failure to perform in acpublic buildings or public works in the cordance with the specifications or continental United States or else within the time limit provided in the where.

contract. (d) Restrictions for noncompliance (ii) A record of failure to perform or with the Equal Opportunity clause. A of unsatisfactory performance in acconcern or individual debarred for cordance with the terms of one or noncompliance with the Equal Oppor- more contracts: Provided, That such tunity clause shall not be awarded a failure or unsatisfactory performance Government contract.

has occurred within a reasonable (e) Restrictions on subcontracting. period of time preceding the determiIf a concern or individual listed on the nation to debar. Failure to perform or debarred bidders list is proposed as a unsatisfactory performance caused by subcontractor, the contracting officer acts beyond the control of the firm or shall decline to approve subcontract individual as a contractor shall not be ing with that firm or individual in any considered to be a basis for debarment. instance in which consent is required (iii) Violation of the contractural of the Government before the subcon provision against contingent fees. tract is made, unless it is determined (iv) Acceptance of a contingent fee, by the agency to be in the best inter

which is paid in violation of contracest of the Government to grant ap

tual provisions against contingent fees. proval.

(5) Any other cause affecting re(37 FR 23337, Nov. 2, 1972)

sponsibility as a Government contrac

tor of such serious and compelling $ 1.1-604 Causes and conditions applicable nature as may be determined by the

to determination of debarment by an head of the agency to warrant debarexecutive agency.

ment. Subject to the following conditions, (6) Debarment by some other execueach executive agency is authorized to tive agency. debar a firm or individual in the public (b) Conditions. (1) Debarment for interest for any of the following any of the causes set forth in (a) of causes:

this § 1-1.604 shall be made only upon (a) Causes. (1) Conviction for com- approval of the head of the executive mission of a criminal offense as an in- agency or his duly authorized reprecident to obtaining or attempting to sentative.

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