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Sec. 03.2 Execution and approval of contracts. 03.3 Subject to statutes and regulations.

AUTHORITY: 88 03.1 to 03.3, inclusive, issued under secs. 3, 12, 60 Stat. 238, 244; 5 U.S.C. 1002, 1011. $ 4.100, of Title 43, infra.

SOURCE: 88 03.1 to 03.3, inclusive, contained in Delegations of Authority, Acting Director, Aug. 18, 1947, 11 F.R. 5571.

$ 03.1 Open market purchases. Open market purchases (i, e., procurement of supplies and services without advertising for bids) may be made by the chiefs of the divisions, branches, and principal offices of the Headquarters Organization of the Bureau of Mines in Washington, D. C., and by the head or chief officer of each office of the Field Organization of the Bureau of Mines, subject to the following conditions and exceptions:

(a) A limit of $100 on any purchase made in reliance upon an appropriation expenditures from which are otherwise subject to competitive bidding under the requirements of R. S. 3709, amended (Public Law 600, 79th Cong.; 60 Stat. 806).

(b) A limit of $500 on any purchase for the investigation of domestic sources of mineral supply, as authorized by the act of June 28, 1941 (55 Stat. 344, 41 U.S.C. 6a (m)).

(c) Office furniture and equipment, including stationery, office supplies, desks, mimeograph machines, etc.

(d) Automobiles and trucks.

(e) Items which must be purchased from contractors under the General Schedule of Supplies, from Federal Prison Industries, Inc., or from the Committee on Blind-Made Products.

(f) Books, periodicals, newspapers, printing and binding.

(g) Open market purchases must not be made without ascertaining first that

there is a sufficient allocation of money from an available appropriation to cover the cost.

(h) Even where advertising for competitive bidding is not required, supervising officers should nevertheless obtain at least informal quotations with respect to any purchases in excess of $100 up to $500 and written quotations in the case of purchases in excess of $500.

$ 03.2 Execution and approval of contracts. (a) The power to sign as contracting officer contracts other than the open-market purchases referred to in $ 03.1, will be delegated from time to time to the particular field officer or project engineer who will be directly responsible for the administration of the particular contract. Such contracts shall not become binding until approved under the powers referred to in paragraphs (b) and (c) of this section, and such approval shall be sufficient evidence of the delegation of power to the contracting officer.

(b) To the Chief of the Administrative · Division is delegated the power to make

the final approval of all contracts in which the consideration to be paid by the Government is not more than $10,000, except contracts for construction, drilling operations, the sale of helium, and cooperative agreements.

(c) The power to make the final approval of all contracts in which the consideration to be paid by the Government is more than $10,000, all contracts for construction, the sale of helium, drilling operations, and cooperative agreements, is reserved in the Director.

$ 03.3 Subject to statutes and regulations. The powers delegated in this part are subject to all pertinent and applicable statutes and regulations of other Departments and agencies of the Government.

Subchapter B-Helium and Coal PART 1–PRODUCTION AND SALE OF Sec.

1.7 Initial advance for purchase of helium. · HELIUM FOR MEDICAL, SCIEN

1.8 Initial advance and guarantee for conTIFIC, AND COMMERCIAL USE

tainers. [REVISED)

1.9 Adjustment of accounts.

1.10 Shipping containers. Sec.

1.11 Repurchase rights of Government. 1.1 Definitions.

1.12 Reservations with respect to sales and 1.2 Purchase price of helium.

deliveries. 1.3 Service charges.

1.13 Determinations of purity and quantity. 1.4 Settlements under existing contracts. 1.14 Special restrictions. 1.5 Applications.

1.15 Power of inspection. 1.6 Advances, deposits and bonds.

1.16 Implied agreements.

Sec. 1.17 Violations and penalties. 1.18 Purchaser's bonds. 1.19 Cancellation and assignment of con

tracts. 1.20 Federal agencies not affected. 1.21 Forms.

AUTHORITY: $$ 1.1 to 1.21, inclusive, issued under 50 Stat. 886; 50 U.S. C. 164 (b).

SOURCE: $8 1.1 to 1.21, inclusive, contained in Regulations, Director, Bureau of Mines, Secretary of the Interior, Dec. 31, 1946, approved by the President, Jan. 2, 1947, effective 30 days after Jan. 17, 1947, 12 F.R. 351.

§ 1.1 Definitions. (a) “Act” means the act authorizing the conservation, production, exploitation, and sale of helium gas, approved September 1, 1937. (50 Stat. 885; 50 U. S. C. 161-166)

(b) "Special helium-production fund" means the fund referred to in subsection (c) of section 3 of the act.

(c) “Bureau” means the Bureau of Mines of the Department of the Interior.

(d) “Purchaser” means a person, firm, corporation, association or political authority, other than an agency of the United States Government, purchasing helium from the Bureau for medical, scientific, or commercial use, or using helium containers supplied by the Bureau.

(e) “Purity of helium” means the percentage by volume of the gaseous element, helium, in a mixture of that element and other gases.

(f) “Contained helium” means the actual quantity, by volume, of helium in a mixture of that element and other gases. The volume of the contained helium bears the same proportion to the volume of the mixture that the purity of the helium bears to 100 percent.

(g) "Unit of helium” means 1,000 cubic feet of contained helium measured at, or reduced to, a pressure of 14.7 pounds per square inch absolute and a temperature of 70° Fahrenheit.

(h) “Standard-type cylinder" means a cylinder of approximately 1.5 cubic feet internal volume, designed for a filling pressure of 1,800 pounds per square inch gage or more, which will stand vertically without external support with the center of the valve outlet not less than 5012 inches nor more than 58%2 inches above the floor, equipped with a standard-type cylinder valve, or a similar cylinder acceptable to the Bureau as a standard type.

(i) "Standard-type cylinder valve" means a valve acceptable to the Bureau in all respects, having an outlet conforming to following specifications: U. S. standard form left-hand threads, 14 threads per inch, threaded portion 5 inch in length; major diameter not more than 0.830 nor less than 0.824 inch; pitch diameter not more than 0.784 nor less than 0.780 inch; outlet opening drilled to have a diameter of not more than 0.504 nor less than 0.500 inch and a depth of not less than 38 nor more than 12 inch; inside edge of opening rounded out to a radius of 140 inch to permit insertion of a male connection tapered at an angle of 30 degrees: Provided, That at the Bureau's option valves with outlets conforming to other specifications may be accepted as alternative standards.

(j) “Helium tank car” means a railroad car of the type used by the Army and Navy for transporting helium, on which cylinders designed to hold helium under high pressure are mounted permanently.

(k) “Helium semi-trailer" means a vehicle without motive power of a type used by the Army or Navy for transportation of helium by road, on which cylinders designed to hold helium under high pressure are mounted permanently.

(1) “Multiple-cylinder unit" means a group of high-pressure cylinders assembled into one unit for shipment by rail or highway, of a type used by the Army or Navy for transportation of helium.

$ 1.2 Purchase price of helium. The purchase price per unit of helium, f. o. b. at a helium plant to be selected by the Bureau, for helium of normal plant purity of 98 percent or more, delivered into containers at pressures not exceeding the normal plant pressure of approximately 2,500 pounds per square inch gage, shall be:

(a) When delivered into a helium tank car, helium semi-trailer, or multiple-cylinder unit. (1) $11.00 when used or to be used for medical purposes only.

(2) $13.00 when used or to be used for scientific or commercial purposes.

(b) When delivered into standardtype cylinders. (1) $13.00 when used or to be used for medical purposes only.

(2) $15.00 when used or to be used for scientific or commercial purposes.

(c) When delivered into other types of containers. If helium is delivered into containers of types other than those referred to in paragraphs (a) and (b) of this section, the purchase price shall be the same as set forth in paragraph (a) of this section, and the Bureau may make, in addition, service charges to cover the cost of handling and filling such containers as provided in § 1.3 (b).

(d) Minimum charge. Notwithstanding the provisions of paragraphs (a), (b) and (c) of this section, the minimum charge for the helium delivered under any one contract shall be $11.00.

$ 1.3 Service charges. The following charges for services and for use of equipment supplied by the Bureau shall be paid by the purchaser, in addition to the purchase price:

(a) For work performed on standardtype cylinders supplied by the purchaser. (1) Hydrostatic testing: $0.75 per cylinder.

(2) Sealing cylinder valves: $0.025 per cylinder.

(3) Stenciling serial numbers: $0.10 per cylinder.

(4) Installing valves supplied by purchaser in cylinders received without valves: $0.20 per cylinder.

(5) Resetting valves, or removing valves and replacing with valves supplied by purchaser: $0.35 per cylinder.

(6) Painting cylinders: $0.50 per color, per cylinder.

(b) For extraordinary expenses. Such expenses incurred in connection with any contract or delivery, including costs of repairing, cleaning, or drying purchasers' containers, filling containers of types other than those referred to in § 1.2 (a) and (b), compressing or purifying helium beyond normal plant pressure or purity, delivering helium at a point other than a helium plant selected by the Bureau, and unusual handling, transportation and communications, may be determined by the Bureau, on the basis of the cost of rendering the services, making due allowance for contingencies, overhead expense, commercial commoncarrier rates, and intangible factors, and charged to the purchasers as they arise.

(c) For use of helium containers supplied by the Bureau. (1) For each standard-type cylinder: $0.45 for each month or part thereof.

(2) For each helium tank car: $100 for the first five days or part thereof, and $20 for each day or part thereof in excess of five days.

(3) For each helium semi-trailer: $10 for the first two days or part thereof, and $5 for each day or part thereof in excess of two days.

(4) For each multiple-cylinder unit: $9 for the first three days or part thereof, and $3 for each day or part thereol in excess of three days.

(d) For use of tractor. For a tractor with driver and fuel supplied by the Bureau for transportation of a helium semitrailer: $30 for each day or part thereof plus $0.10 for each mile traveled pulling the semi-trailer and $0.06 for each mile traveled by the tractor without the semitrailer.

(e) Computation of time periods. The time periods (one month, five days, two days, three days, and one day) referred to in paragraphs (c) and (d) of this section shall begin the day following that in which the container or tractor is placed in service for the purchaser and end the day it is returned to the Bureau's service. Any fractional period, including the period of use of a container or tractor placed in a purchaser's service and returned to the Bureau's service later in the same day, shall count as a whole period. A container or tractor shall not be considered to be returned to the Bureau's service until it is returned to the Bureau's point of origin or some other point designated by the Bureau, and, if the container is a standard-type cylinder used in making repeated shipments to the same purchaser, until it is released from that service and made available for shipments to other purchasers or to agencies of the Federal Government. Twelve o'clock, midnight, standard time, is the dividing line between days. The charge for the use of a container or tractor shall abate during any period when it is out of service because of unserviceable condition through no fault of the purchaser.

$ 1.4 Settlements under existing colle tracts. Existing contracts for the purchase of helium and for use of containers may be settled by the Bureau in whole or in part on the basis of the amended regulations in this part, and suitable amendments of such contracts may be entered into for this purpose.

$ 1.5 Applications_(a) Applications to purchase helium. Sales of helium will be made only upon a written application, signed by the applicant, setting forth all of the information and conditions required by the Bureau's form entitled “Application to Purchase Helium," a copy of which is published in $ 1.21 (a). Such forms will be furnished by the Bureau upon request. If the application is deemed sufficient by the Bureau for that purpose, and the requirements for cash advance and bond (if required) are complied with, it shall become the contract of sale upon the written acceptance thereof by the Bureau.

(b) Applications to use helium containers. If a purchaser desires that containers be supplied by the Bureau, he may make application therefor on the Bureau's form entitled “Application to Use Helium Containers,” a copy of which is published in $ 1.21 (b). Such forms will be furnished by the Bureau upon request. If the desired containers are available, and if said application is deemed sufficient by the Bureau for that purpose, and the requirements for cash advance and deposit or bond are complied with, it shall become the contract for use of containers upon the written acceptance thereof by the Bureau.

$ 1.6 Advances, deposits and bonds(a) Advances and bonds for purchase of helium. No helium will be delivered or services performed under the regulations in this part except against cash paid in advance on account of the purchase price and services, and, when applicable, a bond or bonds as provided in $$ 1.14 and . 1.18.

(b) Advances, deposits and bonds for use of containers. No containers or tractors will be furnished by the Bureau under the regulations in this part except against cash paid in advance on account of their use and, unless waived by the Bureau, a cash deposit or bond to guarantee the return of all Governmentowned containers in satisfactory condition, or the repair or replacement of, or payment for, any containers lost or damaged, and payment of any other charges that may become due.

(c) Purchaser to maintain adequate credits and bonds. The purchaser shall at all times maintain with the Bureau a cash credit sufficient to cover all or as much as the Bureau may require of the purchase price of the helium together

with such charges for services and use of containers or tractors as may accrue, and, unless waived by the Bureau, a cash deposit or bond adequate to save the Bureau harmless from loss of or damage to containers and to guarantee payment of all charges.

(d) Initial and supplemental advances, deposits and bonds. Applicants for helium and for use of containers or tractors may estimate the amounts of the initial and total cash advances and deposits or bonds from the Bureau's established purchase prices, service charges, and container values, and make the necessary payments with their application, or may await a determination and statement of these items by the Bureau after the filing of the application, If the Bureau at any time deems any advance, deposit, or bond insufficient, it may require that it be made sufficient as a condition to further deliveries of helium or use of containers or tractors.

(e) Computation of cash advance when use of helium is uncertain. When an applicant is unable to specify with certainty that the helium applied for is for medical use, the cash advance on account of the purchase price thereof shall be computed at the rate fixed for scientific or commercial purposes, and the account shall be adjusted thereafter, pursuant to $ 1.9, to the extent that the applicant is able to certify that the helium has been or will be used for medical purposes.

(f) Computation of cash advance when method of shipment is uncertain. When there is uncertainty, at the time helium is applied for, as to the type of container in which it will be shipped, the cash advance shall be computed at the rate fixed for helium delivered into standardtype cylinders, but in adjusting accounts pursuant to $ 1.9 the prices charged shall conform to those for helium delivered into containers of the type actually used.

(g) Form of checks for advances and deposits. All cash advances, deposits, and additions thereto shall be made in the form of certified checks payable to the Treasurer of the United States, unless this requirement is waived by the Bureau.

(h) Advances and deposits to be credited to special helium-production fund. All cash advances, deposits, and other moneys received under the regulations in this part shall be credited to and

deposited in the special helium-production fund.

$ 1.7 Initial advance for purchase of helium. Unless upon receipt of an application to purchase helium the Bureau indicates some other or different requirements, the initial cash advance may be computed as follows:

(a) On account of purchase price. (1) With applications for 500 units of helium or less: The full purchase price (not less than $11.00).

2) With applications for more than 500 units of helium: The full purchase price for 500 units plus one-half of the purchase price for each unit in excess of 500.

(b) on account of services. The full amount of the estimated charges for the services to be rendered, not including charges for use of containers or tractors furnished by the Bureau.

81.8 Initial advance and guarantee for containers. Unless upon receipt of an application to use containers the Bureau indicates some other or different requirements, the initial cash advance and the deposit or bond may be computed as follows:

(a) Cash advance for use of containers. (1) $0.90 for each standard-type cylinder.

(2) $300 for each helium tank car.
(3) $50 for each helium semi-trailer.

(4) $30 for each multiple-cylinder unit.

(5) $150 for each tractor, if supplied by the Bureau to haul a helium semitrailer.

(b) Cash deposit or bond as guarantee for containers and charges. (1) $20.00 for each of the first 500 cylinders and $10.00 for each cylinder in excess of 500.

(2) $50,000 for each helium tank car.

(3) $10,000 for each helium semitrailer.

(4) $4,000 for each multiple-cylinder unit.

$ 1.9 Adjustment of accounts-(a) Delivery which fulfills contract. The delivery of a quantity of helium within plus or minus five percent of that contracted for shall constitute performance on the part of the Bureau, but payments for the helium shall be on the basis of the number of units delivered.

(b) Refunds to purchasers. As contracts of sale are performed by the Bureau by the delivery of helium, and as contracts for use of containers are performed by the purchasers by the return of containers and other equipment furnished by the Bureau, the Bureau may make refunds from time to time to the purchaser, from any credits to the purchaser's account in the special heliumproduction fund, to the extent that the Bureau deems such credit or credits to be in excess of the amounts that may be required to secure the performance of any outstanding contract or contracts of that purchaser; and, in any event. upon full performance by both the Bureau and the purchaser of any contract of sale or contract for use of con. tainers the Bureau shall refund to the purchaser any balance left to the purchaser's credit on account of such con. tract: Provided, That the Bureau, at its option, may transfer any such credit remaining on account of any particular contract to the account of any uncompleted contract with the same purchaser.

$ 1.10 Shipping containers-(a) Containers may be provided by the purchaser or the Bureau. The applicant may provide containers, as indicated by the Application to Purchase Helium (1.21 (a)), or may request the Bureau to provide them, as indicated by the Application to Use Helium Containers ($ 1.21 (b)). Containers provided by the applicant must be satisfactory to the Bureau in all respects, and shall comply with the requirements for shipment in Interstate Commerce. The Bureau will not use or fill any container which in its opinion is unsafe or unsuitable.

(b) Provisions applicable to all types of containers supplied by the Bureau. (1) Agencies of the Federal Government requisitioning helium from the Bureau will have preference in the use of all such containers.

(2) The purchaser shall make every effort to prevent loss of or damage to containers supplied by the Bureau; shall not use such containers for any purpose other than transportation or storage of helium purchased from the Bureau; and shall not permit any 'substance to be compressed or injected into such containers without the Bureau's written consent.

(3) The purchaser shall keep account of all containers supplied by the Bureau

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