Government estimate, an attempt will be made to identify and reconcile differences. If the architect-engineer does not provide information deemed necessary by the Contracting Officer for the reconciliation of any identifiable differences which would lead to agreement, the negotiations will be terminated.

(c) When negotiations disclose errors of fact or judgment in a Government estimate, the estimate will be revised. In every case when initial or interim Government estimates are revised up or down, the basis for revision will be explained in the contract file. Award will not be made unless: (1) The Government estimate equals or exceeds the negotiated price, or (2) in the case of deletions, which must be considered separately, the negotiated credit is equal to or exceeds the Government estimate, or (3) a complete statement is placed in the file justifying award at a cost in excess of the estimate.

(d) Whenever the architect-engineer's proposal is considerably less than the Government estimate, the Contracting Officer will assure that there is complete understanding as to the scope of work. § 7-4.205 Contracting with architectengineer firms for construction work. § 7-4.205-1 Policy.

Except as provided in AIDPR 7-4.2053, the award of a contract for architectengineer services for a particular facility and the award of a contract for the related construction work to the same Contractor, its subsidiaries, or affiliates is prohibited. Accordingly, bids or proposals for the construction of a facility will not be solicited from the firm furnishing architect-engineer services for that facility, its subsidiaries, or affiliates; and unsolicited bids or proposals from that firm, its subsidiaries, or affiliates will not be considered.

compete for the related construction contract; or

(b) Entering into contract negotiations with the clear understanding that, if such negotiations are successful, the firm, its subsidiaries, or affiliates will be ineligible to compete for the related construction contract.

§ 7-4.205-3 Exceptions.

The policy set forth in AIDPR 7-4.2051 does not apply:

(a) Whenever the head of the procuring activity, before negotiations start, specifically authorizes the use of a costplus-a-fixed-fee contract for both the design and the construction of a specialized facility; or

(b) Whenever a contract is awarded on the basis of performance specifications for the construction of a facility, and the contract requires the Contractor to furnish construction drawings, specifications, or site adaption drawings of the facility.

Requests for authorization, pursuant to paragraph (a) of this section, will be in sufficient detail to establish the need for procuring both design and construction under one contract. In neither of the excepted cases in paragraphs (a) and (b) of this section will the architect-engineer that prepared the drawings and specifications be engaged to supervise and inspect, on behalf of the Government, the construction of the facility involved.

§ 7-4.206 Eligibility for design and supervision work of architect-engineers who perform preliminary studies. (a) An architect-engineer selected to make a feasibility study or to perform preliminary engineering for a capital project will not be barred solely because of this fact, from selection for subsequent design, supervision, and inspection services on the project. if otherwise qualified.

(b) An architect-engineer employed for advisory or planning services on a country-wide program or a program of industry-wide scope within a country or as a general consultant to a ministry or government agency may not perform subsequent services which result from recommendations made by it except as the head of a procuring activity provides specific written authority with a statement of supporting reasons.

(c) For the purpose of AIDPR 7-4.206, architect-engineer includes the subsid

The procurement of technical assistance services from U.S. air carriers is governed by a "Statement of General Policy" issued by the Civil Aeronautics Board and published as Subpart H, Part 399, Title 14 of the Code of Federal Regulations. This "Statement of General Policy" is reproduced with specific directions for internal AID procedures in Manual Order 1425.5.

Subpart 7-4.53-Procurement Under AID Research and Analysis Programs

SOURCE: The provisions of this Subpart 7-4.53 appear at 34 F.R. 256, Jan. 8, 1969, unless otherwise noted.

§ 7-4.5300 General.

(a) AID conducts research and analysis programs that are designed to increase knowledge about the forces and processes related to the economic growth and social modernization of developing countries, to create and explore improved technical materials and methods useful for economic and social development, and to evolve and adapt scientific methods of analysis, using a quantitative approach wherever possible, for predicting and assessing the results of AID programs and for the comparison of alternatives.

(b) The central research and analysis program, authorized under section 241 of the Foreign Assistance Act, is directed and administered by the Director, Office of AID Research and University Relations, Bureau for Technical Assistance

(TA/RUR), Agency for International Development, Washington, D.C. 20523, from whom further information may be obtained. The procuring activity to which this program is assigned is the Office of Procurement, Contract Services Division, AID/Washington.

(c) Regional Research and Analysis programs are planned and administered by the respective AID regional offices. The procuring activities to which these programs are assigned are located within the regional offices.

[34 F.R. 256, Jan. 8, 1969, as amended at 35 F.R. 11393, July 16, 1970] § 7-4.5301 Unsolicited analysis proposals.

research and

(a) Definition. An unsolicited proposal is a written offer to perform work which does not result from an informal or formal request for proposals from AID.

(b) Policy. It is AID's policy to encourage outside organizations and individuals to submit unsolicited proposals which contribute new ideas for accomplishing AID's research and analysis programs.

(c) Proposal content. The proposals should include, as a minimum, information such as the full legal name and address of the offeror, brief descriptive title of the proposed research, desired starting date and duration of the work, research plan and objective and its contribution to AID's research and analysis program, available facilities, personnel and equipment, estimated cost including a breakdown of each significant element of cost, and a summary of the offeror's qualifications and past experience.

(d) Submission. Unsolicited proposals may be submitted to the Agency for International Development, Washington, D.C. 20523, to the attention of the appropriate AID office, as follows:

(1) For research and analysis into the fields of education economics, political, social and institutional development, and planning and administration: Office of Program and Policy Coordination (PPC/ POL/ERSS).

(2) For research and analysis into the fields of industry and housing: Office of Private Resources (AA/PRR).

(3) For research and analysis into fields other than cited in subparagraphs (1) and (2) of this paragraph, e.g., agriculture, health, population, nutrition and food from the sea: Bureau for Technical Assistance (TA/RUR).

(4) For research and analysis concerned with only one geographic region: (i) Bureau for Near East and South Asia (NESA/TECH);

(ii) Bureau for Africa (AFR/CS); (iii) Bureau for East Asia (EA/ PROC);

(iv) Bureau for Vietnam (VN/REIR); (v) Bureau for Latin America (LA/ MGT/CTR).

(5) For research and analysis into the fields of International Training: Office of International Training (IT/AD).

(e) Method of procurement. It is AID's policy to seek competition to the maximum extent practicable and an offeror who submits an unsolicited proposal is not necessarily entitled to preferential treatment. However, a contract may be awarded to a qualified offeror without consideration of other competitive sources if the unsolicited proposal is the product of original thinking, has significant scientific or technical merit, and contributes to AID's research program objectives. Such an award shall be made upon a determination by the Assistant Administrator having primary responsibility for the research activity.

[34 F.R. 256, Jan. 8, 1969, as amended at 35 F.R. 3808, Feb. 27, 1970; 35 F.R. 11393, July 16, 1970]

Subpart 7-4.54-Procurement by Barter-Commodity Credit Corpora

Section 303 of the Agricultural Trade and Development Act of 1954 (Public Law 480) requires "to the maximum extent practicable, barter or exchange (of) agricultural commodities owned by the Commodity Credit Corporation for

materials, goods, or equipment required in connection with foreign economic and military aid and assistance programs”. AID favors the use of such barter arrangements in the procurement of AIDfinanced supplies from non-U.S. sources when dollars would otherwise be used to procure such supplies from non-U.S. sources. Applicable policies and procedures are stated in Manual Order 1144.1.

Subpart 7-4.55-Pharmaceutical
Products
General.

§ 7-4.5500

Section 606 (c) of the Foreign Assistance Act bars procurement by the Government of drug and pharmaceutical

The Foreign Assistance Act authorizes procurement by, through, or from other Government agencies, subject to a requirement for use, to the fullest practicable extent, of goods and engineering, and other services from private enterprise on a contract basis. The Foreign Assistance Act directs that in such fields as education, health, housing, and agriculture, the facilities and resources of other agencies are to be used when they are particularly or uniquely suitable for technical assistance, are not competitive with private enterprise, and can be made available without interfering unduly with domestic programs. With regard to the

General instructions and procedures are stated in chapter 240 of the AID Manual. Agreements with other agencies are set out in chapter 250 of the AID Manual. Instructions on the procurement of specific types of commodities through specified agencies are set out in chapter 1430 of the AID Manual. Instructions for ordering Army training films are in Manual Order 1425.4. Instructions for ordering other U.S. Government-owned films are in Manual Order 1425.2.

[30 F.R. 12975, Oct. 12, 1965, as amended at 32 FR. 8468, June 14, 1967]

Subpart 7-6.1-Buy American ActSupply and Service Contracts

§ 7-6.103 Exceptions.

§ 7-6.103-51 Foreign Assistance Act functions.

In addition to the exception stated in FPR 1-6.103-1 for purchases for use outside the United States, there is an exception for economic assistance functions performed under authority of the Foreign Assistance Act. This exception is stated in Executive Order 11223, dated May 12, 1965 (30 F.R. 6635). U.S. procurement restrictions are applied by AID, however, as shown elsewhere in this part. These restrictions are generally tighter than the Buy American Act. As a general rule, the tighter AID restrictions will be used. In the case of certain procurements for use within the United States, the Buy American provision may be used instead in the interest of uniformity among Federal Agencies procuring for domestic use. [30 F.R. 12975, Oct. 12, 1965]

Subpart 7-6.2-Buy American ActConstruction Contracts

AID has issued a uniform set of policies and procedures that govern the geographic source of services procured by borrowers and grantees as well as by AID for overseas activities that are financed with United States dollars rather than foreign currencies. These are stated in Manual Order 1412.1, which is set out below. With regard to policies and procedures on commodities which may be acquired or financed under service contracts, see AIDPR 7-6.52.

§ 7-6.5101 Policies and procedures.

M.O. 1412.1, which applies to borrower and grantee procurement, as well as to A.I.D. procurement, is set forth below:

AGENCY FOR INTERNATIONAL DEVELOPMENT

MANUAL

Subject: Service Contracting: Geographic Source Requirements.

Order No.: 1412.1.

Transmittal Letter No.: 13:228. Supersedes: M.O. 1412.1 (TL 13:64). Effective Date: April 26, 1968.

I. Scope:

A. The basic policy of A.I.D. as set forth in this manual order is to reduce the balance of payments dollar outflow, consistent with the efficient use of A.I.D. program funds and enhancement of the U.S. image abroad.

B. This manual order establishes A.I.D. policy with regard to the order of preference to be accorded firms in the procurement of services (other than ocean and air transportation which are governed by the flag of the carrier) when such services are funded, wholly or partially, in dollars by direct-A.I.D. contract or through A.I.D.-financed borrower/grantee procurement.

C. The order of preference as stated in paragraph III. of this manual order shall be followed for both direct and borrower/ grantee contracts and no firm may be accorded a higher degree of preference than provided herein without appropriate determination and waiver. However, action offices may provide in loan or grant agreements that less than the full range of firms listed in paragraph III. may be considered when procuring services hereunder, or that the order of preference shall be followed with respect to firms accorded equal preference hereunder. The order of preference of such firms shall be the order in which they are listed in paragraph III. In addition, if a blanket waiver has been authorized pursuant to paragraph IV.B.2. or IV.B.3. below, to give, for example, local firms equal preference with U.S. and U.S.-controlled local firms, the agreement may limit contracting to only those three types of firms in equal preference.

D. It does not establish (1) policy and procedures in regard to the procurement of services when funded wholly by other than A.I.D. dollars (e.g., Cooley loans), (2) criteria for the determination of what services should be A.I.D.-financed, or (3) policy or procedures for procurement of equipment or commodities.

II. Definitions: A. General:

The definitions contained in this section are controlling for A.I.D.-direct contracts and are recommended for A.I.D.-financed borrower/grantee procurements for capital projects. In the event of any inconsistency between the definitions contained herein and those for borrower/grantee contracts, the definitions in the latter documents shall govern.

B. Beneficial Ownership:

1. "Beneficial ownership" of a firm is presumptively established by the bona fide certification of a duly authorized officer of the

firm as to the citizenship of the firm's

owners.

2. In the case of corporations, the corporate secretary shall certify as to beneficial ownership. He may presume citizenship on the basis of a stockholder's record address, provided he certifies, regarding any stockholder whose holdings are material to the corporation's eligibility hereunder, that he knows of no facts which might rebut that presumption.

C. Cooperating Country:

The term "cooperating country” shall mean the country which is the prime beneficiary of the services to be performed as set forth in the authorizing document.

D. Firms (See Guide, Attachment A.): 1. United States Firm:

An entity is a "U.S. firm" if it meets all of the conditions listed in subparagraphs a., b., and c. below as follows:

a. It is incorporated or legally organized in the U.S.

b. It has its principal place of business in the U.S.

c. It is more than 50% beneficially owned by a U.S. firm or firms and/or by U.S. citizens.

2. U.S.-Controlled Local Firm: 1

An entity is a "U.S.-controlled Local Firm" if it meets all of the conditions listed in subparagraphs a., b., c. below as follows:

a. It is incorporated or otherwise legally organized in the cooperating country.

b. It has its principal place of business in the U.S. or in the cooperating country.

c. It is at least 95% beneficially owned by a U.S. firm or U.S. firms and/or U.S. citizens. 3. Preferred Local Firm: 1

An entity is a "preferred local firm" if it meets all of the conditions listed in subparagraphs a., b., c., and d. below as follows:

a. It is incorporated or legally organized in the cooperating country.

b. It has its principal place of business in the cooperating country.

c. It has substantial participation in management by U.S. citizens.

d. It is (1) at least 30 percent beneficially owned by a U.S. firm or firms and/or U.S. citizens and (2) the remaining interest is beneficially owned by a local firm or firms and/or citizens of the cooperating country. 4. Local Firm:1

An entity is a "local firm" if it meets the conditions listed in subparagraphs a. and b. below and either c. or d. below as follows:

a. It is incorporated or legally organized in the cooperating country.

1 Where, under A.I.D. policy, one or more countries in addition to the U.S. and the cooperating country are eligible sources for procurement of services, the term "cooperating country" in the definitions of "local firm," "U.S.-controlled local firm," and "preferred local firm" shall include such additional countries for the purposes of paragraph III. of this manual order.