Head of the Contracting Activity (HCA). The Contracting Officer shall also prepare a memorandum from the Assistant Administrator for Administration and Resources Management to the Assistant, Associate, or Regional Administrator (or equivalent level) of the person committing the unauthorized action. This memorandum shall contain a brief description of the circumstances surrounding the unauthorized action, recommend corrective action, and include a copy of the memorandum sent to the IG. Submission of a memorandum to the appropriate Assistant, Associate, or Regional Administrator for unauthorized actions involving small purchases is optional and may be accomplished at the discretion of the Chief of the Contracting Office or a Management Division Director or equivalent at a regional or field activity.

§ 1501.670-6 Ratification approvals and

concurrences.

(a) The Chief of the Contracting Office is the ratifying official, provided that he/she has redelegable contracting authority.

(b) For ratification actions which arise in regional offices or laboratory sites, the Chief of the Contracting Office to whom the activity functionally reports is the ratifying official, provided that he/she has redelegable contracting authority. The HCA is the ratifying official for actions which arise in regional or laboratory sites which do not functionally report to a contracting office.

(c) The HCA shall review all ratification actions of $250,000 or more.

§ 1501.670-7 Exception.

EPA is not authorized to ratify improperly ordered paid advertisements. Therefore, the cognizant paying office shall return to the Contractor all voucher claims not accompanied by a written prior authorization. If there was not prior authorization, the paying office shall instruct the Contractor to present its claim directly to the General Accounting Office in accordance with the instructions contained in 4 CFR Part 31, Claims Against the United States, General Procedures.

"Chief of the Contracting Office" means the Branch Chief(s) at the Headquarters Procurement Operations and the Directors of the Contracts Management Divisions at Research Triangle Park and Cincinnati.

"Head of the Contracting Activity" (HCA) means the Director, Procurement and Contracts Management Division.

"Legal counsel" means those attorneys assigned to the Contracts and Information Law Branch, Office of the General Counsel and designated by the Assistant General Counsel as contract law specialists.

"Procurement Executive" means the Assistant Administrator for Administration and Resources Management. (Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c))

[49 FR 8836, Mar. 8, 1984]

PART 1503-IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST

Sec.

1503.000 Scope of part.

Subpart 1503.1-Safeguards

1503.101 Standards of conduct. 1503.101-3 Agency regulations. 1503.103 Independent pricing. 1503.103-2 Evaluating the certification.

Subpart 1503.2-Contractor Gratuities to
Government Personnel

1503.203 Reporting suspected violations of the gratuities clause.

Subpart 1503.3-Reports of Suspected Antitrust Violations

1503.301 General.

Subpart 1503.4-Contingent Fees

1503.408 Evaluation of the SF 119. 1503.408-1 Responsibilities.

1503.409 Misrepresentations or violations of the covenant against contingent fees.

Sec.

Subpart 1503.5—Other Improper Business

Practices

1503.502 Subcontractor kickbacks.

Subpart 1503.6-Contracts With Government Employees or Organizations Owned or Controlled by Them

1503.600-70 Scope of subpart. 1503.600-71 Definitions. 1503.601 Policy.

1503.602 Exceptions.

1503.603 Responsibilities of the contracting officer.

1503.670 Solicitation disclosure provision. AUTHORITY: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).

SOURCE: 49 FR 8837, Mar. 8, 1984, unless otherwise noted.

1503.000 Scope of part.

This Part implements FAR Part 3, cites EPA regulations on employee responsibilities and conduct, establishes responsibility for reporting violations and related actions, and provides for authorization of exceptions to policy.

Subpart 1503.1-Safeguards

1503.101 Standards of conduct.

1503.101-3 Agency regulations.

EPA regualtions on Employee Responsibilities and Conduct are contained in 40 CFR Part 3. All personnel involved in acquisition actions shall become familiar with the statutory and regulatory prohibitions. Any problems or questions concerning 40 CFR Part 3 shall be referred to the appropriate Deputy Ethics Official pursuant to 40 CFR Part 3, Subpart B.

1503.103 Independent pricing.

1503.103-2 Evaluating the certification.

Whenever an offer is rejected under FAR 3.103-2 or the Certificate of Independent Price Determination is suspected of being false, the Contracting Officer shall report the situation to the Inspector General through the Head of the Contracting Activity for referral to the Attorney General in accordance with FAR 3.303.

Subpart 1503.2-Contractor Gratuities to Government Personnel

1503.203 Reporting suspected violations of the gratuities clause.

EPA personnel, particularly Contracting Officers, shall promptly report, by memorandum, suspected violations of the Gratuities clause in solicitations or contracts to the Inspector General through the Head of the Contracting Activity.

Subpart 1503.3-Reports of Suspected Antitrust Violations

1503.301 General.

The Contracting Officer shall report any suspected violations of antitrust laws to the Inspector General through the Head of the Contracting Activity for referral to the Attorney General in accordance with FAR Subpart 3.3.

Subpart 1503.4—Contingent Fees 1503.408 Evaluation of the SF 119. 1503.408-1 Responsibilities.

The Contracting Officer's documentation of the evaluation of the Standard Form 119, Statement of Contingent or Other Fees, conclusions, and any proposed actions shall be reviewed by the Head of the Contracting Activity in coordination with legal counsel. 1503.409 Misrepresentations or violations

of the covenant against contingent fees.

EPA personnel who suspect or have evidence of attempted or actual exercise of improper influence, misrepresentations, or violations of the Covenant Against Contingent Fees shall report the matter promptly to the Inspector General through the Head of the Contracting Activity.

(a) “Regular employee” means any officer or employee of EPA who is employed or appointed, with or without compensation, to serve more than 130 days during any period of 365 consecutive days, including regular officers of the Public Health Service Commissioned Corps and reserve officers of the Public Health Service Commissioned Corps while on active duty.

(b) "Special employee” means an officer or employee of EPA who is retained, designated, appointed or employed to perform, with or without compensation, temporary duties either on a full-time or intermittent basis for not more that 130 days during any period of 365 consecutive days and who actually served more than 60 days during such 365-day period.

1503.601 Policy.

(a) No contract may be awarded without competition to a former regular or special EPA employee (or to a business concern or other organization owned or substantially owned or controlled by a former employee) whose employment terminated within 365 calendar days before submission of a proposal to EPA.

(b) No contract shall be awarded without competition to a firm which employs, or proposes to employ, a current regular or special EPA employee

or a former EPA regular or special employee whose employment terminated within 365 calendar days before submission of a proposal to EPA, if either of the following conditions exits:

(1) The current or former EPA regular or special employee is or was involved in development or negotiating the proposal for the prospective contractor.

(2) The current or former EPA regular or special employee will be involved directly or indirectly in the management, administration, or performance of the contract.

1503.602 Exceptions.

(a) The Assistant Administrator for Administration and Resources Management may authorize an exception, in writing, to the policy in FAR 3.601 and 1503.601 of this chapter for the reasons stated in FAR 3.602, if the exception would not involve a violation of 18 U.S.C. 203, 18 U.S.C. 205, 18 U.S.C. 207, 18 U.S.C. 208, or EPA regulations at 40 CFR Part 3. The Assistant Administrator shall consult with the Designated Agency Ethics Official before authorizing any exceptions.

(b) This subpart does not apply to subcontracts, that is, agreements to undertake part of the work as an independent contractor. However, where subcontracts essentially create an "employer-employee" relationship, the subpart shall apply. In determining whether such a relationship exists, the Contracting Officer shall generally be guided by the standards of Chapter 304, Subchapter 1-4 of the "Federal Personnel Manual" in distinguishing between employees and independent contractors.

1503.603 Responsibilities of the contracting officer.

Before awarding a contract, the Contracting Officer shall obtain an authorization under 1503.602 for any of the reasons stated in FAR 3.603.

1503.670 Solicitation of disclosure provision.

The Contracting Officer shall insert the provision at 1552.203-70, Current/ Former Agency Employee Involve

1504.804 Closeout of contract files. [49 FR 8838, Mar. 8, 1984]

1504.804-5 Detailed procedures for closing out contract files.

In addition to those procedures set forth in FAR 4.804-5, the contracting office shall, before final payment is made under a cost reimbursement type contract, verify the allowability, allocability, and reasonableness of costs claimed. Verification of total costs incurred should be obtained from the Office of Audit through the cost advisory group at the contracting office in the form of a final audit report. Similar verification of actual costs shall be made for other contracts when cost incentives, price redeterminations, or cost-reimbursement elements are involved. Termination settlement proposals shall be submitted to the cost advisory group at the contracting office for review by the Office of Audit as prescribed by FAR 49.107. All such audits will be coordinated through the cost advisory group in the contracting office. Exceptions to these procedures are the quick close-out procedures as described in 1542.708 and Unit 2 of the EPA Acquisition Handbook.

[49 FR 28246, July 11, 1984]

1505.000 Scope of part.

This part provides additional instructions on information to include in synopses of proposed contracts, provides policy references relative to release of information, and provides procedures for obtaining information on previous Government contracts.

Subpart 1505.2-Synopses of Proposed Contracts

1505.270 Use of synopses to perform market surveys.

(a) Market surveys shall be used in justifying noncompetitive procurements with a potential value exceeding $10,000. Either the synopsis of a proposed noncompetitive contract for goods or services or a sources-sought synopsis that is detailed enough to permit submission of meaningful responses and subsequent evaluation of the responses by the Government constitutes an acceptable market survey.

(b) The synopsis of a proposed noncompetitive contract, or the sourcessought synopsis, must contain sufficient detail to permit the Contracting Officer to perform an evaluation of the responses to the synopsis. As a minimum, the synopsis shall include:

(1) A clear statement of the supplies or services being procured;