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UTILIZATION OF LABOR SURPLUS AREA

(1) Designate a liaison officer who will (1) CONCERNS

maintain liaison with duly authorized repre.

sentatives of the Government on labor sur(The following clause is applicable if this

plus area matters, (ii) supervise compliance contract exceeds $10,000.)

with the Utilization of Concerns in Labor (a) It is the policy of the Government to Surplus Areas clause, and (iii) administer award contracts to labor surplus area con the Contractor's “Labor Surplus Area Subcerns that agree to perform substantially in contracting Program"; labor surplus areas, where this can be done (2) Provide adequate and timely consider. consistent with the efficient performance of ation of the potentialities of labor surplus the contract and at prices no higher than area concerns in all "make-or-buy" deci. are obtainable elsewhere. The Contractor sions: agrees to use his best efforts to place his

(3) Assure that labor surplus area consubcontracts in accordance with this policy. cerns will have an equitable opportunity to

(b) In complying with paragraph (a) of compete for subcontracts, particularly by this clause and with paragraph (b) of the

arranging solicitations, time for the prepaclause of this contract entitled “Utilization ration of bids, quantities, specifications, and of Small Business Concerns," the Contrac delivery schedules so as to facilitate the par. tor in placing his subcontracts shall observe ticipation of labor surplus area concerns; the following order of preference: (1) Small (4) Maintain records showing the procebusiness concerns that are labor surplus dures which have been adopted to comply area concerns, (2) other small business con with the policies set forth in this clause and cerns, and (3) other labor surplus area con report subcontract awards (see 41 CFR 1cerns.

16.804-5 regarding use of Optional Form (cX1) The term "labor surplus area" 61). Records maintained pursuant to this means a geographical area identified by the clause will be kept available for review by Department of Labor as an area of concen the Government until the expiration of 1 trated unemployment or underemployment year after the award of this contract, or for or an area of labor surplus.

such longer period as may be required by (2) The term "labor surplus area concern" any other clause of this contract or by apmeans a concern that together with its first. plicable law or regulations; and tier subcontractors will perform substantial (5) Include the Utilization of Concerns in ly in labor surplus areas.

Labor Surplus Areas clause in subcontracts (3) The term “perform substantially in a which offer substantial labor surplus area labor surplus area" means that the costs in subcontracting opportunities. curred on account of manufacturing, pro (b)(1) The term "labor surplus area." duction, or appropriate services in labor sur means a geographical area identified by the plus areas exceed 50 percent of the contract Department of Labor as an area of concenprice.

trated unemployment or underemployment

or an area of labor surplus. (End of Clause)

(2) The term “concern located in a labor (b) The “Labor Surplus Area Sub- surplus area" means a labor surplus area contracting Program" clause, set forth

concern. in this paragraph (b), shall be included

(3) The term "labor surplus area concern" in all contracts which may exceed

means a concern that, together with its

first-tier subcontractors, will perform sub$500,000, which contain the clause re

stantially in labor surplus areas. quired by $ 1-1.805-3(a) and which, in

(4) The term "perform substantially in the opinion of the procuring activity, labor surplus areas" means that the costs offer substantial subcontracting possi incurred on account of manufacturing, probilities. Furthermore, prime contrac duction, or appropriate services in labor surtors who are to be awarded contracts

plus areas exceed 50 percent of the contract

price. which may not exceed $500,000 but pr

(c) The Contractor further agrees to which, in the opinion of the procuring

insert, in any subcontract hereunder which activity, offer substantial subcontract

may exceed $500,000 and which contains the ing possibilities, shall be urged to Utilization of Concerns in Labor Surplus accept this clause.

Areas clause, provisions which shall con

form substantially to the language of this LABOR SURPLUS AREA SUBCONTRACTING

clause, including this paragraph (c), and to PROGRAM

notify the Contracting Officer of the names (a) The Contractor agrees to establish and

of such subcontractors. conduct a program which will encourage

(End of Clause) labor surplus area concerns to compete for subcontracts within their capabilities. In (29 FR 10104, July 24, 1964, as amended at this connection, the Contractor shall

32 FR 18048, Dec. 16, 1967; 34 FR 17954,

Nov. 6, 1969; 35 FR 8484, June 2, 1970; 40 FR 44138, Sept. 25, 1975; 43 FR 26010, June 16, 1978)

$ 1-1.805-4 Review of subcontracting pro

gram. The adequacy of the contractor's "Labor Surplus Area Subcontracting Program" shall be reviewed by the procuring agency concerned, and any deficiencies shall be brought to the attention of the contractor's liaison officer with a request for corrective action.

(b) Where proposals received in competitive negotiated procurements evidence violations of the antitrust laws, the procedures in this Subpart 1-1.9 may be used in referring such proposals to the Attorney General.

(c) The reports required by this subpart are in addition to and are not to be considered as satisfying the requirements of Subpart 1-1.16 for reporting identical bids to the Attorney General.

§ 1-1.806 Depressed industries.
(43 FR 26010, June 16, 1978)
§ 1-1.806-1 General.

When an entire industry is depressed, the Federal Preparedness Agency, GSA, under Defense Manpow. er Policy 4A may establish appropriate measures on an industry-wide, rather than on an area, basis. Designations of such industries are made by Federal Preparedness Agency Notifications, and such industries will be given special treatment as specified therein. No price differentials will be paid to carry out the policies of these Notifications. (43 FR 26010, June 16, 1978)

§ 1-1.807 Records and reports.

Executive agencies shall maintain such records of procurement contracts to be performed in labor surplus areas as are necessary to prepare reports prescribed in § 1-16.804-4. (33 FR 17293, Nov. 22, 1968)

$ 1-1.902 Documents to be transmitted.

In reporting cases of possible violations of the antitrust laws to the Attorney General, each agency shall transmit, in addition to a copy of each suspect bid, the documents and statements enumerated below (the expression "suspect bids" or variations thereof, as used in this Subpart 1-1.9, shall be deemed to include any bids which indicate practices which may evidence possible violations of the antitrust laws including collusive bidding, follow-the-leader pricing, rotated low bids, identical bids, or any other bid device intended to deprive the Government of the benefit of full and free competition):

(a) One copy of the invitation for bids and any amendments thereto.

(b) An abstract of all bids received for each item covered by the bid invitation for which suspect bids were received, showing for each such item

(1) The unit and total price bid.

(2) The net price to the Government after discounts and allowance for transportation, or other costs, are absorbed by the bidder.

(3) The name of the manufacturer of the item or the source of supply if the bidder is a dealer or distributor, and the location of the plant from which shipment will be made. Where identical bids are filed by dealers, distributors, or jobbers representing the same manufacturer or supplier, they frequently indicate adherence to the supplier's list or suggested price to the Government. Unless the procurement agency has some evidence that such identical bids resulted from collusion or concert of action among the bidders they need not be reported to the Attorney General.

Subpart 1-1.9-Reporting Possible

Antitrust Violations

§ 1-1.901 General.

(a) Section 302(d) of the Federal Property and Administrative Services Act of 1949 requires, with respect to advertised procurement, that bids be referred to the Attorney General for appropriate action when in the opinion of the agency head they evidence any violation of the antitrust laws. The referral of such bids shall be in accordance with this Subpart 1-1.9.

(4) The destination of shipments, of all suspect bids received in response and whether the price quoted includes to each invitation for bids issued in or excludes the cost of transportation the preceding three-year period, setto destination.

ting forth in such abstract the infor (5) The identity of the successful mation described in § 1-1.902. If this bidder, and, where identical low bids information was submitted with a were submitted by several bidders, an prior reference of identical bids to the indication of how the award was made. Attorney General it will be necessary

(c) Copies of documents filed by sus- only to state that the information was pect bidders as part of the bid submis. submitted with a suspect bid reference sion or obtained by the procuring of a specified date. agency such as the following

(c) Indicate whether the pattern of (1) Contracts with contingent fee bidding in the three-year period prerepresentatives who acted on behalf of ceding the receipt of the suspect bids one or more of the bidders who sub- reported appears to indicate such mitted identical bids or assisted them practices as bid rotation, sharing of in the preparation of their bids.

the business, collusive bidding, or any (2) Correspondence or other eyi. other form of joint action. If such dence of patent rights owned or li- practices are indicated, explain in censed by bidders quoting identical detail. prices.

(d) If there are any known financial, (3) Evidence of the existence of fi. personal, or other than personal relanancial or other ties between bidders tionships among any of the suspect submitting suspect bids as revealed by bidders, describe them. Dun and Bradstreet or other reliable (e) Indicate if the Government's financial reports.

specifications for the item are so (4) Any pertinent financial or corpo drawn that only a limited number of rate information concerning the sus- potential bidders are capable of meetpect bids as may be contained in finan ing these specifications. cial statements or annual reports to (f) Indicate whether the item is covstockholders.

ered by active patents and if such pat(d) Copies of reports containing the ents are owned or controlled by any of findings of any special investigations the suspect bidders. If information is conducted by the procurement agency available, submit full details, including concerning the bids reported.

any evidence that patent control may (e) Copies of any correspondence be. have a bearing on price identity. tween the procurement agency and (g) If there are any known manufacthe suspect bidders revealing the fac turers or suppliers of the item who tors responsible for the filing of sus consistently avoid bidding on Governpect bids, or explaining the prices bid.

ment contracts, identify such suppliers

or manufacturers and indicate wheth8 1-1.903 Additional information.

er the procurement agency has any In addition to the documentary knowledge as to the reasons why these matter described above, the following firms avoid seeking Government busiinformation must be submitted, or ap ness. propriate remarks made, to the degree (h) Indicate if the prices bid by the available, with respect to each suspect. suspect bidders are their published list ed antitrust violation:

prices or if they are prices applicable (a) Where there is a prior pattern of only to the particular bid. If the prices procurement of the item for which quoted by the suspect bidders are not suspect bids were received, indicate their published list prices, state the procurement agency's annual whether they appear to have been ardollar value of purchases of the item rived at by the application of a uniin each of the three calendar years form Government discount from list preceding the year in which the sus prices or by some other method of pect bids were received.

computation. If available, furnish pho(b) With respect to purchases of the tostatic copies of suspect bidders' and item in prior years, submit an abstract other bidders' price lists.

(i) Indicate whether it is known to 81-1.1002-1 Availability of procurement be the general practice of the manu

information and publications. facturers of the item to adhere to pric

Procuring activities shall make ining systems which may be character

formation available to potential supized as delivered pricing, zone pricing, or basing point pricing. If the answer

pliers concerning formal advertising

and negotiation procedures and shall is in the affirmative, describe the

encourage potential suppliers to utilize nature of the pricing system used.

the Commerce Business Daily which is (j) Indicate whether, in the opinion

a valuable source of information on of the procurement agency, the sus

proposed procurements. pect or tie bids submitted appear to stem from collusion or conspiracy on (40 FR 2811, Jan. 16, 1975) the part of the suspect bidders, and, if so, explain the basis for this opinion.

8 1-1.1002-2 Publicizing proposed small

purchases. Subpart 1-1.10—Publicizing

Procuring activities shall ensure that

proposed small purchases are publiProcurement Actions

cized to the maxiinum extent practica

ble consistent with the dollar value of 8 1-1.1001 General policy.

the actions and any time constraints Proposed procurements which offer applicable to the purchases. One or competitive opportunities for prospec- more of the following methods of pubtive prime contractors or subcontrac- licizing shall be used: tors shall be publicized as prescribed (a) Displaying on bulletin boards in in this Subpart 1-1.10, to increase com- the purchasing office and/or other petition, thus assisting small business public places. and labor surplus area concerns and (b) Preparing periodic handouts listbroadening industry participation in ing proposed purchases, and displayGovernment procurement programs. ing these lists as in paragraph (a) of

this section. $ 1-1.1002 Availability of invitations for (c) Publicizing in local newspapers or bids and requests for proposals.

other mass communication media. A reasonable number of copies of (d) Encouraging and assisting local each invitation for bids and request

area trade associations in disseminatfor proposals publicized in the Depart ing small purchase information to ment of Commerce Synopsis (see § 1

their members. 1.1003-1), including specifications and

(40 FR 44138, Sept. 25, 1975) other pertinent information, shall be maintained by the issuing office. To $ 1-1.1003 Synopses of proposed procurethe extent such unclassified invita- ments. tions for bids and requests for proposals are available, they shall be pro- § 1-1.1003-1 Department of Commerce vided upon request to manufacturers, Synopsis. construction contractors, and regular (a) The “Commerce Business Daily, dealers and to others having a legiti. Synopsis of U.S. Government Promate interest therein, such as publish- posed Procurement, Sales and Coners, trade associations, procurement tract Awards," informally known as information services and others who "Department of Commerce Synopsis" disseminate information concerning or "Synopsis,” is published daily, invitations for bids and requests for except Saturdays, Sundays, and holiproposals; otherwise the procuring ac days, by the U.S. Department of Comtivity may limit the availability of in- merce, Chicago, Illinois. Section 8 of vitations for bids and requests for pro the Small Business Act (15 U.S.C. posals to perusal at the issuing office. 637(e)) empowers the Secretary of With regard to classified procure- Commerce to obtain notice of certain ments, this § 1-1.1002 applies to the proposed procurement actions from extent consistent with agency security any Federal department, establishrequirements.

ment, or agency engaged in procurement of supplies and services in the (3) Procurements which are for utilUnited States; and to publicize such ity services and the procuring agency notices in the Department of Com- in accordance with applicable law has merce Synopsis immediately after the predetermined the utility concern to necessity for the procurement is estab whom the award will be made; lished.

(4) Procurements which are of such (b) The primary purpose of the De unusual and compelling emergency partment of Commerce Synopsis is to

that the Government would be seri. provide industry with information

ously injured if bids or offers were concerning current Government con

permitted to be made more than 15 tracting and subcontracting opportu

calendar days after issuance of the in

vitation for bids or request for proposnities, including information as to the identity and location of Government

als or the date of transmittal of the contracting offices and prime contrac

synopsis, whichever is earlier;

(5) Procurements which are made by tors having current or potential need

an order placed under an existing confor certain types of products or serv

tract except as provided in § 1-4.1107ices.

6(a) with respect to non-mandatory (c) The Department of Commerce

schedule contracts for Automatic Data Synopsis is available on an annual sub

Processing Equipment; scription basis, and subscriptions can

(6) Procurements which are made be entered at any Department of Com

from another Government department merce office. Complimentary subscrip

or agency, or a mandatory source of tions are available to participating supply: Government activities upon request.

(7) (Reserved) (d) Procurement agencies shall de (8) Procurements which are for servvelop procedures for assuring that pro ices from educational institutions; posed procurements are publicized in (9) Procurements in which only forthe Synopsis as required by this § 1 eign sources are to be solicited; or 1.1003.

(10) Procurements for which it is de

termined in writing by the procuring 8 1-1.1003-2 General requirements.

agency, with the concurrence of the (a) In accordance with section 8 of Administrator of the Small Business the Small Business Act, all proposed Administration, that advance publicity defense procurement actions of is not appropriate or reasonable. $10,000 and above, and all proposed ci

(The term "defense procurement acvilian agency procurement actions of

tions," as used in this § 1-1.1003-2, $5,000 and above, will be published

shall apply only to procurement made promptly in the Department of Com- by the Department of Defense.) merce Synopsis (see $ 1-1.1003-6).

(b) The dollar amount specified in

b) The dollar except that the following need not be 1-1.1003-2(a) is not a prohibition so publicized:

against publicizing procurements (1) Procurements of a classified below that amount where it is deternature where the information neces- mined that such publication would be sary to be included or referenced in advantageous to industry or to the the solicitation (invitation for bids or Government. request for proposals) is in itself of a

(29 FR 10104, July 24, 1964, as amended at classified nature and the public disclo

35 FR 3070, Feb. 17, 1970; 41 FR 43538, Oct. sure of this information would violate 1, 1976) security requirements. All other classified procurements shall be published § 1-1.1003-3 Special areas of negotiation. in the Synopsis if sufficient informa

(a) Research and development. Adtion of an unclassified nature can be vance notices of the Government's inprovided in the solicitation to enable a terest in a given field of research and prospective contractor to submit a bid development shall be published in the or proposal;

Synopsis in accordance with $ 1(2) Procurements of perishable sub- 1.1003-7(b)(7), except where security sistence;

considerations prohibit such publica

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