Subpart 1-Procurement Under Federal Supply Schedule Contracts

5.100 Scope of Subpart. This Subpart sets forth the policy and procedure relating to procurement from Federal Supply Schedules.

5.101 General.

5.101-1 Federal Supply Schedule Contracts. The Federal Supply Service, General Services Administration, establishes Federal Supply Schedule Contracts for common use classes of supplies and services available directly from contractors at stated prices for a given period of time subject to stated minimum and maximum order limitations. The Index of National and Regional Federal Supply Schedules (referred to herein as "the Index"), contains a listing of current Schedules and information pertinent thereto. Copies of the Index and Schedules are available to procurement offices from the General Services Administration regional offices upon request. Requests should be submitted on GSA Form 457. In certain cases, individual Federal Supply Schedules will contain further qualifications to the coverage set forth in the Index. In the event of any conflict between the provisions of the Index and those of any Schedule those of the Schedule shall govern.

5.101-2 Procurement Offices. Prior to initiating procurements from commercial sources, NASA procurement offices shall determine whether or not the required supplies or services are available from a Federal Supply Schedule. This information may be readily determined from the Index or the applicable Federal Supply Schedule.

5.101-3 Labor Surplus Area and Small Business Considerations. In furtherance of NASA's policy of fostering labor surplus area and small business opportunities to the maximum extent possible; where two or more items at the same delivered price will meet the requiring activity's needs equally well, selection should be made when ordering against Federal Supply Schedule Contracts, on the basis of preference for the item(s) of a labor surplus area concern or a small business concern. In making the selection on this basis, the order of priority shall be as follows:

(i) certified-eligible concerns which are also small business concerns; (ii) other certified-eligible concerns;

(iii) persistent labor surplus area concerns which are also small business

concerns;

(iv) other persistent labor surplus area concerns;

(v) substantial labor surplus area concerns which are also small business concerns;

(vi) Other substantial labor surplus area concerns; and

(vii) small business concerns which are not labor surplus area concerns. 5.102 Mandatory Federal Supply Schedules. Supplies or services listed in a Federal Supply Schedule shall be obtained under the contracts summarized therein if the Schedule provides that such contracts are for mandatory use as primary sources of supply by executive agencies generally and NASA has not been listed therein as exempt, subject to the following exceptions:

(a) Delivery Requirements.

(1) When the delivery period offered in the Federal Supply Schedule does not meet the delivery requirements of the procurement office, procurement need not be made from the Federal Supply Schedules. However, delivery

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dates shown in Federal Supply Schedules are based upon the average capability of the contractor and are usually conservative. Contractors, in most instances, are able to make delivery within a shorter period of time than the maximum provided in the Schedule. Therefore, when the delivery requirements of the procurement office are less than the maximum shown in the Schedule, the contractor should be queried as to whether the delivery requirements can be met. This procedure shall be followed except in those cases where transportation time from the contractor's shipping point, or time required for inquiry and reply, make conformance impracticable. Where a multiple award Schedule item is involved, purchase must be made under the Schedule unless it is established, in accordance with the Schedule provisions, that none of the Schedule contractors whose products are acceptable can meet the delivery time requirement.

(2) Most Federal Supply Schedule contracts executed after July 1962 include a provision requiring contractors to reply to Government requests for earlier delivery within three working days. Such replies are to be made by the same method of communication as that used by the procurement office for its request. This contract provision also provides that earlier deliveries offered by contractors and accepted by the procurement offices will be binding on the contractors. Failure to meet maximum Federal Supply Schedule delivery dates (or delivery dates that are less than the maximum as agreed to by contractors under contracts containing the above-mentioned provision) constitutes a breach of contract and the order may be terminated for default in whole or in part by the procurement office. Where the contract does not include the aforementioned provision (generally contracts entered into prior to July 1962), if the contractor has affirmed his inability to provide earlier delivery or has failed to respond to the query within three days, procurement may be made from other sources for delivery earlier than the maximum specified in the Schedule. In such cases, an appropriate record justifying the action should be placed in the contract file.

(b) Similar Items. When specific supplies or services having the same general characteristics and intended use as those listed in a Federal Supply Schedule are needed for a special requirement, the following procedures shall apply.

(1) Non-emergency Requirements. When supplies or services are to be procured from other sources to satisfy a non-urgent requirement, the head of the office initiating the purchase request or his designated representative shall furnish the procurement office a signed statement identifying the supplies or services to be purchased. This statement shall include an explanation of why similar items listed in the applicable Federal Supply Schedule will not meet the specific requirement. The procurement office prior to initiating purchase action shall furnish such statement to the Commissioner, Federal Supply Service, General Services Administration, with a request that the requirement for using the Federal Supply Schedule item be waived. If such waiver is not granted, the case will be referred to the Director of Procurement for a final decision as to whether the non-schedule item will be purchased. The Director of Procurement shall promptly notify the Commissioner, Federal Supply Services, and the procurement office of the decision reached.

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(2) Emergency Requirements. When supplies or services are to be procured from other sources and the situation will not permit the delay incident to following the normal channels of obtaining a waiver from the General Services Administration prior to purchase, such waiver shall not be requested. In emergency situations, the Head of the office initiating the purchase request, or his designated representative, shall furnish to the procurement office a signed statement identifying the supplies or services to be purchased, and explaining why similar items listed in the applicable Federal Supply Schedule will not meet the specific requirements. The procurement office shall within 15 days of the date of purchase, furnish such statement to the Commissioner, Federal Supply Service, General Services Administration.

(c) Maximum Dollar Limitations. Federal Supply Schedules stipulate maximum dollar limitations above which agencies may not submit orders and contractors may not accept orders. The maximum limitation varies between Schedules. The value of a single order or a series of orders placed within a short time, may not exceed this limitation.

(d) Minimum Requirements. Federal Supply Schedules stipulate dollar amounts or quantitative values below which agencies need not submit orders and contractors are not obligated to accept orders. In determining such dollar amounts or quantitative values, all requirements which would normally be included in a single order to a contractor shall be considered.

(e) Geographic Location. Federal Supply Schedules delineate geographic applicability on a national, zone, regional, or other area basis. The location of the activity to which delivery of the articles will be made or the location at which service will be performed shall govern, and not the location of the office which places the order with the contractor.

(f) Public Exigency. Federal Supply Schedule contracts permit purchase elsewhere, where necessary, in cases of public exigency. However, ordering personnel should be alerted to situations where proximity of the contractor's production and distribution facilities to the point of use result in the contractor's facility being an immediate source of supply to meet the exigency.

(g) Opportunity to Buy Supplies and Services for Less than Listed Prices from Federal Supply Schedule Contractors. Except when procuring automatic data processing equipment, related software and maintenance services, procurement offices shall not solicit bids, proposals, quotations, or otherwise test the market for comparison with the schedule price (see 5.106). However, if an opportunity arises for NASA to purchase listed supplies and services from a Federal Supply Schedule contractor at a price substantially more favorable to the Government than the price listed, the procurement will be accomplished at the more favorable price. Immediately subsequent thereto, a copy of the contract shall be furnsihed to the office which issued the applicable Federal Supply Schedule. This office is identified on the cover of the Schedule.

(h) Price Exceeds $100,000. The General Services Administration (GSA) has made the cost and pricing data requirements of 10 U.S.C. 2306 (f) applicable to negotiated procurements of the GSA by the inclusion of such cost and pricing data requirements in Subpart 1-3.8 of the Federal Procurement Regulations (FPR). NASA is advised that these regulations are applied to Federal Supply Schedule contracts. Accordingly, when NASA purchases from Federal

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Supply Schedules, NASA will assume that Federal Supply Schedule contractors have furnished GSA with acceptable cost or pricing data and certification, or the Federal Supply Schedule contractor has qualified under the statutory exceptions. Specific verification generally will not be required from GSA to evidence compliance with the statute. Requests for evidence of compliance will not be made of GSA without the Procurement Officer's prior submission of such request, together with written justification therefor, to the Director of Procurement (Code KDP-2) for approval.

5.103 Federal Supply Schedules Not Mandatory. Supplies or services available from a Federal Supply Schedule which is optional for use by executive agencies generally (or in which NASA is listed as exempt) shall be ordered therefrom if:

(i) the Schedule or the contractor's price list identifies the item by Federal stock number;

(ii) delivery requirements can be met (see 5.102(a));

(iii) the order is within the maximum and minimum limitations of the Schedule; and

(iv) the price is determined to be fair and reasonable.

Exception from the foregoing is permitted only where the contracting office has actual knowledge that the purchase can be made more advantageously to the Government from a source other than the Supply Schedule, after allowing for the burdens and cost of a new procurement under applicable prescribed procedures. Except when procuring automatic data processing equipment, related software and maintenance services, the procurement office shall not solicit bids, proposals, quotations or otherwise test the market for comparison with the schedule price (see 5.106). Where a procurement from a source of supply other than the non-mandatory Schedule indicates that such source might be more advantageous to the Government as a general source, the name and address of the supplier together with other details of the procurement action shall be forwarded to the General Services Administration through the Regional Office of the GSA region in which the procuring activity is located. The provisions of 5.102 (a) are applicable when determining whether a contractor can meet delivery requirements.

5.104 Order for Supplies or Services. NASA Form 1379 or Standard Form 147 should be used as a delivery order in purchasing supplies or services from Federal Supply Schedule contractors.

5.105 Federal Supply Schedules With Multiple Source Provisions.
5.105-1 Description.

(a) Multiple-award Federal Supply Schedules cover contracts made with more than one supplier for comparable items at either the same or different prices for delivery to the same geographical area. These schedules are identified by the inclusion, in the Special Provisions, of a paragraph entitled "Multiple Awards."

(b) Federal Supply Schedule contracts are made on a multiple award basis when one or both of the following circumstances apply:

(1) The most effective utilization of industry production and distribution facilities in meeting the needs of the Government can be accomplished through making multiple awards and such awards are otherwise advantageous

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to the Government. (Considerations in determining that multiple awards should be made include price, quality, facility of delivery, availability of production and distribution facilities, technical advice or service in connection with products involved, and other pertinent factors.)

(2) In the absence of prescribed standards or specifications, selectivity, with respect to the choice of one item from a group of comparable items, is to the advantage of the Government in terms of suitability to accomplish or produce required end results.

5.105-2 General. The provisions of 5.103 shall be applied in determining whether an order should be placed under a multiple-award schedule. Each purchase made from a multiple-award schedule must be made at the lowest delivered price available under that schedule, unless the procurement office fully justifies the purchase of a higher priced item.

5.105-3 Justifications.

(a) Justifications of purchases made at prices other than the lowest delivered price available should be based on specific or definitive needs which are clearly associated with the achievement of program objectives. Mere personal preference cannot be regarded as an appropriate basis for a justification. Justifications should be clear and fully expressed. Recital of, or reference to, one of the factors set forth in (b) below is not sufficient.

(b) The following examples illustrate factors that may be used in support of justifications, when used with assertions that are fully set forth and documented.

(1) Special features of one item, not provided by comparable items, are required in effective program performance.

(2) An actual need exists for special characteristics to accomplish identified tasks.

(3) It is essential that the item selected be compatible with items or systems already existing within using offices.

(4) Trade-in considerations favor a higher priced item and produce the lowest net cost.

(5) Time of delivery in terms of actual need cannot be met by a lower priced contractor.

(6) Justifications which incorporate features of the following examples must be based on objective factors which adequately establish the advantages inherent in purchase of the higher priced item when:

(i) probable life of the item selected, as compared to that of a comparable item at a lower cost, is sufficiently greater so that the additional purchase price is economically warranted;

(ii) warranty conditions of a higher priced item are sufficiently advantageous to justify the added cost; and

(iii) greater maintenance availability, lower overall maintenance costs, or the elimination of problems anticipated with respect to machines or systems, especially at isolated use points, will produce longrun savings greater than the difference in purchase prices.

5.105-4 Responsibility of Procurement Office. The possibilities of selectivity among items listed in multiple-award Federal Supply Schedules do