extent does not require formal solicitation of proposals from more than one prospective offeror for architect-engineer services (see AIDPR 7-4.2), for services to be performed by the Contractor in person, for procurements limited to nonprofit or government entities without fee, for procurements which do not exceed $25,000 by an overseas procuring activity, and for procurements with respect to which the Contracting Officer determines there is only one reasonably available source.

(b) In addition, contracts may be negotiated without formal solicitation of proposals from more than one offeror, if the head of the procuring activity (this authority is not delegable except to his chief deputy) makes a written determination, with supporting findings, that procurement on another basis would impair foreign aid objectives and would be inconsistent with fulfillment of the purposes of the foreign aid program. Such determinations and findings shall be included in the contract file.

(c) Consideration of as many sources as is practicable, including informal solicitation to the greatest reasonble extent, is required even though formal solicitation of proposals from more than one offeror is not called for.

(d) The contract file in each case of noncompetitive negotiation will include appropriate explanation and support.

§ 7-3.102 Factors to be considered in negotiating contracts.

Location in a surplus or scarce labor area refers to United States locations only.

§ 7-3.102-50 Adaptability to Overseas conditions.

In addition to the factors set forth in FPR 1-3.102, AID will consider the adaptability of the prospective Contractor and its employees to employment and residence in the overseas location or locations where work is to be performed.

633 of the Foreign Assistance Act of 1961, as amended, and Executive Order 11223, May 12, 1965, 30 F.R. 6635 (see FPR 1-3.215). Contracts will not be negotiated, however, unless they fall within one of the circumstances permitting negotiation enumerated in FPR 1-3.2011-3.214, which will be identified in the contract file, with support as called for or as otherwise appropriate.

(b) For purpose of the contract file, if supplies and services are procured and used outside the United States, FPR 1-3.206 will be the pertinent supporting citation. All university contracts with U.S. educational institutions will be treated under FPR 1-3.205 for this purpose. Most other negotiated contracts for training and professional advice and assistance will fall within the scope of FPR 1-3.204 and 1-3.210.

[30 F.R. 12971, Oct. 12, 1965, as amended at 32 F.R. 8468, June 14, 1967]

§ 7-3.204 Personal or professional services.

Prior clearance with the General Services Administration is not required with respect to buildings or improvements located outside the United States.

§ 7-3.205 Services of educational institutions.

Prior authorization must be obtained from the Administrator for negotiation of research or other contracts in connection with "Development Research" under section 241 of the Foreign Assistance Act of 1961, as amended.

§ 7-3.211 Experimental, developmental, or research work.

Prior authorization must be obtained from the Administrator for negotiation of research or other contracts in connection with "Development Research" programs under section 241 of the Foreign Assistance Act of 1961, as amended. Negotiation of contracts which are of the kind described in FPR 1-3.211 and which do not fall within the scope of FPR 1-3.205 require prior authorization from the head of the agency, including any Assistant Administrator (see FPR 1-1.204 and 1-3.303).

[30 F.R. 12971, Oct. 12, 1965, as amended at 31 F.R. 11030, Aug. 19, 1966]

§ 7-3.212 Purchases not to be publicly disclosed.

The determination may be made by the head of the agency, including any

Assistant Administrator (see FPR 1-1.204 and 1-3.303).

§ 7-3.213

Technical equipment requiring standardization and interchangeability of parts.

The determination and findings may be made by the head of the agency, including any Assistant Administrator (see FPR 1-1.204 and 1-3.303).

§ 7-3.215 Otherwise authorized by law. See AIDPR 7-3.200-50.

Subpart 7-3.3-Determinations,
Findings, and Authorities

§ 7-3.305 Form and requirements of determinations and findings.

AID has not prescribed forms for detailed determinations and findings. § 7-3.308 Preservation of data.

Determinations and findings will be kept in the contract file.

Subpart 7-3.6-Small Purchases § 7-3.600 Scope of subpart.

The $2,500 ceiling applies to the cost of supplies and services, exclusive of the cost of transportation and other accessorial costs if their destination is outside the United States.

§ 7-3.604-3 Agency responsibilities.

Each overseas procuring activity is responsible for developing instructions for the guidance of its personnel and procedures which are adapated to local requirements and which conform with and implement FPR 1-3.604. They will identify the specific documentation required to support each imprest fund transaction, which will include an itemized receipt from the vendor in accordance with FPR 1-3.604-6(c) and, when appropriate, a certificate of inspection or manufacturer's guarantee or warranty. § 7-3.604-5

Limitations.

Exceptions or additions are in effect for certain overseas procuring activities. Requests by overseas procuring activities for further exceptions or additions will be addressed to the Director, Office of Administrative Services, AID/Washington, for coordination with General Services Administration and the Treasury Department.

[30 F.R. 12971, Oct. 12, 1965, as amended at 35 F.R. 11392, July 16, 1970]

Subpart 7-3.8-Price Negotiation
Policies and Techniques

§ 7-3.805 Selection of offerors for negotiation and award.

§ 7-3.805-1 General.

See AIDPR Subpart 7-4.2 regarding architect-engineer services.

§ 7-3.807-2 Requirements for price or cost analysis.

[34 F.R. 76, Jan. 3, 1969]

§ 7-3.807-2(c) Offeror's analysis of cost proposal.

(a) The "Offeror's Analysis of Cost Proposal" form contained in AIDPR 7-16.955 provides for a standardized analysis of estimated costs, suitable for detailed review, to be submitted by an offeror. Except as provided in paragraph (b) of this section, the form contained in AIDPR 7-16.955 shall be used for all negotiated procurements for which written cost or pricing data is required under FPR 1-3.807-3, and may be used in other procurements at the discretion of the Contracting Officer. The offeror must also submit supplementary information as detailed on the form.

(b) The contractor or prospective contractor may submit the information required by the form set forth above in a different format, acceptable to the contracting officer, when required for a more effective and efficient presentation of cost or pricing information, or when the contractor's or subcontractor's accounting system makes the use of the prescribed format impracticable: Provided, That in such cases the information furnished includes pertinent details as to cost elements and the specific statements, authorization, and certification required by the prescribed format. [35 F.R. 11392, July 16, 1970]

§ 7-3.807-3 Cost and pricing data.

Requirements for cost or pricing data: Contracts with nonprofit educational institutions for overseas technical assistance or for research work will be treated the same for this purpose as basic research contracts with such institutions. The head of the agency includes any Assistant Administrator.

[35 F.R. 11392, July 16, 1970]

Subpart 7-3.9-Subcontracting

Policies and Procedures

§ 7-3.903 Review and approval of Contractor's purchasing system and sub

contracts.

§ 7-3.903-2 Review and approval of subcontracts.

AID service Contractors are required to obtain advance approval of subcontracts under cost-reimbursement contracts and in other situations where the cost or terms of the subcontract may affect the cost to the Government of the prime contract. Advance approval may also be required where AID's concern about the quality of performance is sufficient to require it. Advance approval is required in all cases where the subcontractor will perform services overseas.

PART 7-4-SPECIAL TYPES AND METHODS OF PROCUREMENT Subpart 7-4.2-Architect-Engineer Services

AID follows established U.S. Government policy and practice in the procurement of architect-engineer services under direct contract. The selection of an architect-engineer is not based on price competition, but rather on the professional qualifications necessary for satisfactory performances of the services required, subject to distribution of contracts among as many qualified firms as is consistent with prompt and effective performance and subject to the prohibition stated in AIDPR 7-4.205 against engaging a Contractor which wishes to be eligible to perform construction work on the facility or facilities for which the architect-engineer services are required. § 7-4.202 Contractors' Index.

A Contractors' Index is maintained in Washington by the AID Office of Small Business (see AIDPR 7-1.1001). Architect-Engineers wishing to perform contracts for AID should file the appropriate form with that office, as provided in AIDPR 7-1.1001 (b). Procurements are publicized in the "Department of Com

66-091-72- -5

(a) Selection of architect-engineers is made by the head of the procuring activity or his delegate, upon recommendation of a formally constituted selection panel. After considering a preselection memorandum (see AIDPR 7-4.203-2) submitted to it by the project engineer, the selection panel will recommend, in order of preference, a minimum, if possible, of three firms for approval for contract negotiations. The recommendation of the panel will be stated in a report to the head of the procuring activity or his delegate.

(b) The Assistant Administrator for Administration, the Office of Engineering, and other central staff offices which have an interest, will be inivited to observe and participate through a representative, if they desire, in the deliberations of the panel on a non-voting basis.

(c) The selection panel report on each case will state its recommendations, the basis for such recommendations, and the agreement or disagreement of the panel members and others who participated in the discussion or submitted written comments. Copies will be forwarded to interested offices. 'The head of the procuring activity or his delegate may approve it and transmit it to the Contracting Officer, or he may disapprove it and return it to the panel with an explanation and a request for further action.

[30 F.R. 12973, Oct. 12, 1965, as amended at 32 F.R. 8468. June 14, 1967; 32 FR. 14845, Oct. 26, 1967]

based on these and such other factors as may be pertinent:

(1) Specialized experience in the type of work required.

(2) Past record in performing work for AID, for other Government agencies. and for other clients, including performance from the standpoint of costs, quality of work, and ability to meet schedules.

(3) The value of contracts previously executed with the architect-engineer under AID funding. When two or more architect-engineers are determined to be equally qualified, preference will be given to the one which has previously received the least AID funded business.

(4) Ability to assign an adequate number of qualified key personnel from the organization, including a competent supervising representative having considerable experience in responsible positions on work of a similar nature.

(5) The portions of the work the architect-engineer is able to perform with its own forces when required.

(6) Ability of the architect-engineer to furnish or to obtain required materials and equipment.

(7) Familiarity with the locality where the project is situated.

(8) Financial capacity.

(9) Responsibility of the architectengineer under standards provided in FPR 1-1.310.5. (No contract may be awarded to a Contractor which does not meet these standards.)

(b) Preselection memorandums will be signed by the project engineer and forwarded to the panel members and to the Director. Office of Procurement, the Office of Engineering, the Auditor General, the General Counsel, and such other interested offices inside and outside the procuring activity as may be appropriate, all of whom will have a reasonable time to comment before the panel acts.

(c) The preselection memorandum will state if the firm's facility has been visited for the purpose of evaluation. It will identify when and by whom the evaluation report was made, and if the report is not attached, it will state where the report can be obtained. If such a survey has not been made, it will state that one will be necessary, or with supporting reasons, that one will not be necessary before an award is made.

[30 F.R. 12973, Oct. 12, 1965, as amended at 32 F.R. 8468, June 14, 1967; 32 F.R. 14845, Oct. 26, 1967; 35 F.R. 11392, July 16, 1970]

§ 7-4.203-3 Simplified procedures for procurement estimated to cost $50,000 or less.

Selection panel action will not be required for procurements estimated to cost $50,000 or less. Unless the procuring activity prescribes further review procedures, the preselection memorandum will state an order of preference for the Contracting Officer to follow. The memorandum will be given the same distribution as for cases which require panel consideration (see AIDPR 7-4.203-2(b)). and a reasonable time will be allowed for comments from addressees.

§ 7-4.203-4 Continuation of contracts.

In the case of an existing architectengineer contract which the procuring activity wishes to extend and where no substantial expansion of the scope of work is involved, a detailed preselection memorandum and formal selection panel consideration will not be required. If the estimated cost of the extension exceeds $25,000, the project engineer, or other designated officer, will transmit a memorandum to the selection panel, with further distribution as described in AID PR 7-4.203-2(b), which justifies the proposed continuation and includes:

(a) Findings on performance of the Contractor to date.

(b) A statement of the consequences (favorable and unfavorable) on accomplishment of program objectives, of selecting a new firm for continuation of the project in place of the current Contractor.

(c) A statement of the extent to which objectives of the project have been attained by the termination date of the existing contract and an estimate of the date after which the services will no longer be required.

The recipients will be given a reasonable time to state objections, comments, or recommendations. If there are objections or recommendations inconsistent with the proposed extension, the matter will be referred to the head of the procuring activity or his delegate. § 7-4.204 Negotiation procedures. § 7-4.204-1 Conduct of negotiations.

(a) FPR 1-3.8 states the generally applicable negotiation policies and techniques, with the exception of FPR 1-3.805-1, which does not apply to architect-engineer services.

(b) Negotiations are conducted initially with the architect-engineer given first preference under the procedures set forth in AIDPR 7-4.203. If reasonable efforts to reach agreement fail, the negotiations with that architect-engineer are terminated. Negotiations are then started with the next architect-engineer on the list, and so on until an agreement is reached. If the list is exhausted, the Contracting Officer will request further instructions from the officer who transmitted the memorandum to him. In panel cases, that officer will go back to the panel for further recommendations unless he decides to drop the procurement.

Before a request for a formal proposal is issued, or negotiations are started, whichever is earlier, the chief engineer of the procuring activity, or other designated officer, will provide the Contracting Officer with a detailed statement of work.

§ 7-4.204-3 Proposal.

(a) The Contracting Officer will furnish the selected architect-engineer with a request for a formal proposal for doing the work, unless one has been received before selection.

(b) Wherever possible, the proposal will cover technical matters and price or cost. If a price or cost proposal cannot reasonably be obtained with the technical proposal, it will be obtained as soon as possible thereafter. The architectengineer will be required to submit a cost breakdown in all cases, and also, if FPR 1-3.807-3 is applicable, the required cost or pricing data and certificate of current cost or pricing data. § 7-4.204-4

estimate.

Independent Government

(a) Before the architect-engineer's price or cost proposal is opened, the chief engineer of the procuring activity, or other designated officer, will provide the Contracting Officer with a signed and dated Government cost estimate prepared independently of the architectengineer. The estimate will be based on and include support from Corps of Engineers' curves, or other curves approved by the Chief, Office of Engineering, or or. a detailed cost analysis.

(b) If the proposal is not reasona when compared with the independe