Subpart 8-Procurement of Certain Utility Services By Use of General Services Administration Area-Wide Public Utility Contracts and Department of Defense Area-Wide Communications Contracts

5.800 Scope of Subpart. This Subpart prescribes policy and procedures for the procurement of certain utility services by use of General Services Administration (GSA) area-wide public utility contracts and Department of Defense (DOD) area-wide communications contracts.

5.801 General.

(a) The General Services Administration enters into indefinite delivery type area-wide contracts with various utility companies for the furnishing of electric, natural and manufactured gas distributed by pipes, steam sewage, water, telephone, and teletypewriter services to all, or substantially all, Government agencies located within specified areas. GSA area-wide public utility contracts provide that the contractor will, upon receipt of an order in the form prescribed by the contract, furnish without further negotiation as to rates and charges' the services involved in accordance with such of his established and filed rate schedules as are applicable to the service.

(b) The Department of Defense enters into indefinite delivery type areawide contracts with various communication companies for the furnishing of communications to all, or substantially all, Department of Defense installations. DOD area-wide communications contracts provide that the contractor will upon receipt of an order in the form prescribed by the contract, furnish, without further negotiations as to rates and charges, the service involved in accordance with such of his established and filed rate schedules as are applicable to the service.

5.802 Distribution of GSA Area-wide Public Utility Contracts and Related Publications. A list of the utility services obtainable under GSA area-wide public utility contracts, including the area served and the name of the contractor involved, is contained in GSA Circular No. 61, Revised. GSA also has available copies of the area-wide public utility contracts which include the required order form. Copies of GSA Circular No. 61 and GSA area-wide public utility contracts may be obtained, upon request, from General Services Administration, Transportation and Communication Service, Public Utilities Division, Washington, D.C., 20405.

5.803 Use of GSA Area-Wide Public Utility Contracts.

(a) Where GSA area-wide public utility contracts are adequate to meet the requirements of NASA installations for utility services, such services will be procured thereunder. In determining whether a GSA area-wide public utility contract is adequate to meet the requirements of the using installation, consideration should be given to (i) the area-wide contract rates viewed in light of the magnitude of the service required, (ii) any unusual characteristics of the service required, (iii) any special equipment or facility requirements, (iv) any special technical contract provisions required, and (v) any other special circumstances.

(b) Where an installation considers that a DOD area-wide communications contract is more advantageous to the Government than the GSA area-wide public utility contract, a request for a waiver of the requirement to use the GSA area-wide public utility contract will be submitted to the Office of Tracking and Data Acquisition (Code TN). The request will explain why the use of the

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DOD area-wide contract is considered to be more advantageous to the Government than the GSA area-wide contract.

(c) Where an installation considers that a separately negotiated contract is more advantageous to the Government than the GSA area-wide public utility contract, for a utility service other than communications, a request will be submitted to the Procurement Office, NASA Headquarters (Code KDR), for a waiver of the requirement to use the GSA area-wide public utility contract. The request shall explain why the separately negotiated contract is considered to be more advantageous to the Government than the area-wide contract.

(d) Where an installation considers that a separately negotiated contract for communications services is more advantageous to the Government than the GSA area-wide public utility contract or the DOD area-wide communications contract, a request for a waiver of the requirement to use the GSA contract or the DOD contract (in that order) will be submitted to the Office of Tracking and Data Acquisition (Code TN). The request shall explain why the separately negotiated contract is considered to be more advantageous to the Government than either the GSA or DOD area-wide contracts.

5.804 Ordering Under GSA Area-Wide Public Utility Contracts. When utility services are procured under GSA area-wide public utility contracts, the method of ordering prescribed in the appropriate GSA area-wide contract will be used. The form prescribed for ordering may be modified to satisfy fiscal and administrative requirements of NASA, and to contain such additional contract provisions as may be contemplated or permitted by the GSA areawide contract, except that it shall not be modified for use as a public voucher in lieu of Standard Form 1034.

5.850 Use of DOD Area-Wide Communications. When the decision is made to procure communications services under DOD area-wide contracts in accordance with 5.803(b), the method of ordering prescribed in the appropriate DOD area-wide contract will be used. The form may be modified to satisfy fiscal and administrative requirements of NASA, and to contain such additional contract provisions as may be contemplated or permitted by the DOD area-wide contract, except that it shall not be modified for use as a public voucher in lieu of Standard Form 1034.

Subpart 9-Use of General Services Administration Supply Sources by Prime Contractors in Performing Cost-Reimbursement Type Contracts

5.900 Scope and Applicability of Subpart.

(a) This Subpart prescribes policies and procedures for the guidance of contracting officers in authorizing the use of General Services Administration supply sources (Federal Supply Schedule contracts and General Services Administration stores stock) by prime contractors in performing cost-reimbursement type contracts.

(b) This Subpart applies only to the procurement of supplies to be delivered in the United States, its possessions, or Puerto Rico.

5.901 Policy. In appropriate cases, the contracting officer should authorize contractors to utilize General Services Administration supply sources in performing cost-reimbursement type contracts. Before issuing such an authorization, the contracting officer shall determine that it is in the best interest of the Government, considering price, delivery, contract administration, and any other significant factors, including recommendations of the contractor.

5.902 Limitation. Contractors shall not be authorized to utilize General General Services Administration supply sources (i) in connection with the performance of fixed-price type contracts, even though such contracts provide for price adjustment, escalation, redetermination, or cost-reduction incentive; or (ii) for the leasing of equipment to be utilized in the performance of cost-reimbursement type contracts, other than automatic data processing equipment for use only in performance of cost-reimbursement contracts where the entire rental cost will be charged to those contracts. Contractors operating under the above types of contracts may, however, if they so desire, utilize GSA supply source listings for price information purposes. Such listings (GSA catalogs and copies of GSA Federal Supply Contracts) as may be readily available in procurement offices will be made available for review by contractors for this purpose.

Authorization.

Basic Authority.

5.903 5.903-1 Basic Authority. Contractors shall be authorized to utilize General Services Administration supply sources only (i) where title to property ordered under Federal Supply Schedule contracts will pass to and vest in the Government directly from the Federal Supply Schedule contractor (rather than through the prime contractor), (ii) where the contractor will lease automatic data processing equipment under a Federal Supply Schedule contract for use only in performance of cost-reimbursement contracts, and the entire rental cost will be charged to those contracts, or (iii) where title to Government-owned property ordered from General Services Administration stores stock will remain in the Government.

5.903-2 Format and Contents of Authorizations. Authorizations shall be in writing and shall cite the contract number, specify any applicable limitations on the authority, such as the period of eligibility, and contain any other pertinent information, including requirements relative to ordering, receiving, inspection, and payment. The written authorization shall be in substantially the same format as that set forth in 5.906.

5.903-3 Distribution. Copies of each authorization shall be forwarded by the contracting officer to the General Services Administration, Federal Supply Service, Office of Supply Management, General Services Building, Washington,

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D.C., 20405, and to the General Services Administration regional office serving the geographical area in which the facilities of the authorized prime contractor are located.

5.904 Procedure.

5.904-1 Purchase Orders Under Federal Supply Schedule Contracts. Orders by contractors under Federal Supply Schedule contracts shall be placed in accordance with the provisions of the applicable Federal Supply Schedule and the authorization. Such orders shall be accompanied by a copy of the authorization (unless a copy was previously furnished to the Federal Supply Schedule contractor) and shall contain the statement set forth in paragraph 2.a. of the format for authorization set forth in 5.906.

5.904-2 Purchase Orders for General Services Administration Stores Stock. Orders by contractors for General Services Administration stores stock shall be placed in accordance with the authorization. Such orders shall contain the statement set forth in paragraph 2.b. of the format for authorization set forth in 5.906. 5.904-3 Acquisition of Filing Cabinets by Contractors.

(a) The moratorium declared by the President, in his letter of January 9, 1965, on acquisition by Government Agencies of filing cabinets covers requirements provided directly to NASA contractors (through GSA Federal Supply Service) where title to such equipment vests in the Government.

(b) Prior to ordering additional filing cabinets, NASA contractors are required to take the following prerequisite actions:

(i) transfer inactive records to contractor storage areas;

(ii) dispose of unnecessary records in accordance with their corporate procedures; (iii) use less expensive shelf filing methods;

(iv) take other actions which will reduce needs for filing cabinets; and (v) furnish statement to cognizant contracting officer that the above

prerequisite actions have been taken and that sufficient additional filing capacity has not been produced.

(c) The contractor will then submit his request to the NASA contracting officer who, after conferring with the Records Management Officer, Supply Officer, and Project Officer, will certify on all letter requests that the prerequisite actions have been taken by the contractor and that such actions have not produced the required filing cabinets. Such certification will be forwarded with a letter request to the appropriate GSA Regional Administrator.

(d) If the need for the filing cabinets is approved by GSA, excess items of the type requested will be furnished, if available, through appropriate property accountability channels.

(e) Approved requests which cannot be filled from excess will be returned to the originating contractor with GSA Form 2084, Clearance to Acquire Correspondence Filing Cabinets, reflecting an FC (file cabinet) clearance number authorizing submission of a requisition to the GSA regional office. When mailed, the requisition will have the clearance number noted, and include a copy of the clearance document.

5.905 Furnishing Information to Contractors. Contracting officers shall assist contractors in obtaining pertinent Federal Supply Schedules, the General Services Administration Stores Stock Catalog and appropriate supplements thereto, and other relevant information.

USE OF GENERAL SERVICES ADMINISTRATION SUPPLY SOURCES BY PRIME CONTRACTORS IN PERFORMING COST-REIMBURSEMENT-TYPE CONTRACTS

5.906 Format for Authorization for Contractors to Use GSA Supply Sources.

SUBJECT: Authorization to Lease, Rent or Purchase from General Services Administration Supply Sources

(Contractor's name)

(Address)

1. You are hereby authorized to act for the Government in the following matters: a. The purchasing of property for acquisition under Contract No.

which is available for purchase by Government agencies either directly from the General Services Administration Stores Depots or under Federal Supply Schedules, subject to the limitations set forth herein.

b. The leasing or rental of equipment for use on Contract No.

which is available for lease or rental by Government agencies under Federal Supply Schedules, subject to the limitations set forth herein.

c. The issuance of tax exemption certificates in lieu of the payment of State or other taxes for which the Government is not liable on property purchased under this authorization.

2. a. Purchase Orders Under Federal Supply Schedule Contracts. Orders shall be placed in accordance with the terms and conditions of the attached Federal Supply Schedule and this authorization. A copy of this authorization shall be attached to the order (unless a copy was previously furnished to the Federal Supply Schedule contractor) and shall contain the following statement:

This order is placed on behalf of the National Aeronautics and Space Administration, in furtherance of United States Government Contract No. (Insert contract number), pursuant to written authorization dated

*[ ]. Title to property purchased hereunder shall vest in the United States Government. In the event of any inconsistency between the terms and conditions of this order and those of the Federal Supply Schedule contract, the latter will govern.

b. Orders for Items in the General Services Administration Stores Stock Catalog. Orders shall be placed in accordance with the attached General Services Administration Stores Stock Catalog and this authorization. Include the address to which billings are to be sent. Bills are not issued by General Services Administration until after shipment has been made, and should therefore be paid promptly. Necessary adjustments, if any, will be made by General Services Administration subsequent to payment. All orders shall contain the following statement:

This order is placed on behalf of the National Aeronautics and Space Administration,
in furtherance of United States Government Contract No. (Insert contract number),
pursuant to written authorization dated.........---
-*[ ].

Title to property delivered hereunder shall remain in the United States Government. 3. (Other provisions.)

4. This authority hereby granted is not transferable or assignable.

(Contracting Officer)

*Insert "a copy of which is attached," or "a copy of which you have on file," or other suitable language, as appropriate.

NASA PROCUREMENT REGULATION

¶ 5.906