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price contracts and fixed-price contracts with escalation: CERTIFICATE OF INDEPENDENT PRICE

DETERMINATION (a) By submission of this bid or proposal, each bidder or offeror certifies, and in the case of a joint bid or proposal each party thereto certifies as to its own organization, that in connection with this procurement:

(1) The prices in this bid or proposal have been arrived at independently. without consultation, communication, or agreement, for the purpose of restricting competition, as to any matter relating to such prices with any other bidder or offeror or with any competitor;

(2) Unless otherwise required by law, the prices which have been quoted in this bid or proposal have not been knowingly disclosed by the bidder or offeror and will not knowingly be disclosed by the bidder or otferor prior to opening, in the case of a bid, or prior to award, in the case of a proposal, directly or indirectly to any other bidder or offeror or to any competitor; and

(3) No attempt has been made or will be made by the bidder or offeror to induce any other person or firm to submit or not to submit a bid or proposal for the purpose of restricting competition.

(b) Each person signing this bid or proposal certifies that:

(1) He is the person in the bidder's or offeror's organization responsible within that organization for the decision as to the prices being bid or offered herein and that he has not participated, and will not participate, in any action contrary to (a) (1) through (a) (3) above; or

(2) (1) He is not the person in the bid. der's or offeror's organization responsible within that organization for the decision as to the prices being bid or offered herein but that he has been authorized in writing to act as agent for the persons responsible for such decision in certifying that such persons have not participated, and will not participate, in any action contrary to (a) (1) through (a) (3) above, and as their agent does hereby so certify; and (11) he has not participated, and will not participate, in any action contrary to (a) (1) through (a) (3) above.

(c) This certification is not applicable to a foreign bidder or offeror submitting a bid or proposal for a contract which requires performance or delivery outside the United States, its possessions, and Puerto Rico.

(d) A bid or proposal will not be considered for award where (a) (1), (a) (3), or (b) above has been deleted or modified. Where (a) (2) above has been deleted or modified, the bid or proposal will not be considered for award unless the bidder or offeror furnishes with the bid or proposal a signed statement which sets forth in detail the circumstances of the disclosure and the head of the agency. or his designee, determines that such dis

closure was not made for the purpose of restricting competition.

(b) The fact that a firm (1) has published pricelists, rates, or tariffs covering items being procured by the Government, (2) has informed prospective customers of proposed or pending publication of new or revised pricelists for such Items, or (3) has sold the same items to commercial customers at the same prices being offered the Government does not constitute, without more, a disclosure within the meaning of paragraph (a) (2) of the Certificate.

(c) It is not required that a separate written authorization be given to the signer of the bid or proposal for each procurement involved where the signer makes the certification provided in paragraph (b) (2) of the Certificate: Provided, That with respect to any blanket authorization given, (1) the procurement to which the Certificate applies is clearly within the scope of such authorization, and (2) the person giving such authorization is the person responsible within the bidder's or offeror's organization for the decision as to the prices being bid or offered at the time the Certificate is made in a particular procurement.

(d) After the execution of an initial certificate and the award of a contract in connection therewith, the contractor need not submit additional certificates in connection with proposals submitted on “work orders" or similar ordering instruments issued pursuant to the terms of that contract, where the government's requirements cannot be met from another source.

(e) The authority to make the determination described in paragraph (d) of the above certification shall not be dele. gated to an official below the level of the head of a procuring activity of the agency

(f) Where a certification is suspected of being false or there is Indication of collusion, the matter. shall be processed in accordance with Subpart 1-1.9 and appropriate agency procedures. For reiection of bids which are suspected of being coilusive and for the negotiation of procurements subsequent to such rejection, see $$ 1-2.404-1(b) (6) and 1-3.214. 129 F.R. 10104, July 24, 1964, as amended at 30 F.R. 9589, July 31, 1965) § 1-1.318 Disputes clause. (33 F.R. 3064, Feb. 16. 1968)

§ 1-1.318_1 Contracting officer's de. bearing may be either unmounted or cision under a Disputes clause.

mounted into a ring or bushing. Ex(a) When a final decision of the con

amples of jewel bearings are: Watch tracting officer concerns a dispute that

holes-olive, watch holes—straight, pal

let stones, roller jewels (jewel pins), end is or may be subject to the Disputes clause, a paragraph substantially as fol

stones (caps), vee (cone) jewels, instrulows shall be included in the decision:

ment rings, cups, double cups, and orifice

jewels. As used herein, the term “jewel This decision is made in accordance with

bearings" includes “related items." the Disputes clause and shall be final and

(2) "Related items" means other synconclusive as provided therein, unless, with. in 30 days from the date of receipt of this

thetic sapphire or ruby components. Exdecision, a written notice of appeal (in trip

amples of related items are pivots, knife licate) addressed to the (Title of the head edges, insulators, spacers, windows, and of the agency) is malled or otherwise fur striking surfaces other than pallet nished to the Contracting Omcer. The notice stones. of appeal, which is to be signed by you as (3) "Price list" is the official U.S. Govthe contractor or by an attorney acting on

ernment Jewel Bearing Price List for your behalf, and which may be in letter form, should indicate that an appeal is in

jewel bearings produced by the William tended, should refer to this decision and

Langer Jewel Bearing Plant. This list should identify the contract by number. The

is issued periodically by the General notice of appeal may include a statement of Services Administration. the reasons why the decision is considered (4) “Plant" means the Governmentto be erroneous.

owned William Langer Jewel Bearing (b) A copy of each contracting off

Plant, Rolla, N. Dak. cer's decision shall be furnished to the (5) "Military Standard Jewel Bearcontractor by certified mall, return re

ing" means a jewel bearing conforming ceipt requested, or by any other method

to Military Specification No. MIL-Bwhich provides evidence of the date of

27497 (latest revision) entitled “Bearreceipt of the decision by the contractor.

iings, Jewel, Sapphire or Ruby, Syn(33 F.R. 3064, Feb. 16, 1968]

thetic."

(c) Policy. (1) The Office of Emer§ 1-1.318–2 Relationship to the Equal gency Preparedness has determined that Opportunity clause.

the William Langer Jewel Bearing Plant See $ 1-12.805-9 regarding disputed is an essential part of the national momatters related to the equal opportunity

bilization base and that its continued program.

operation as a domestic source of jewel 133 FR. 3064, Feb. 16, 1968]

bearings is in the interest of the United

States. Therefore, all direct Govern&1-1.319 Procurement of items using ment purchases of jewel bearings shall. jewel bearings.

be made from the Plant. In addition, all (a) General. To maintain a jewel

procurements of items in the Federal bearing production facility in the United Supply Classes and Groups listed in parStates as a part of the industrial mobili agraph (d) of this section, or subaszation base, the Government owns and, sembly, component, or part thereof, through a contractor, operates the Wil whether procured by the Government. liam Langer Jewel Bearing Plant at direct or through contractors, shall proRolla, N. Dak. The Director, Office of vide a requirement in the solicitations Emergency Preparedness, has requested and resulting contracts that jewel bearthat agencies use this source in order to ings in the quantities and of the types promote the use of this plant as an estab- and sizes (including tolerances) neceslished domestic source of jewel bearings. sary for the end items to be supplied

(b) Definitions. As used in this sub under the contract must be purchased part the following terms have the mean from the plant and be incorporated in ings set forth in this paragraph:

the delivered items, except: (1) "Jewel bearing” means a piece of (i) In small purchases using small synthetic sapphire or ruby of any shape, purchase procedures other than in purexcept a phonograph needle, which has chases of jewel bearings as end items; one or more polished surfaces and which (ii) For jewel bearings used in items is suitable for use in an instrument, that are to be procured and used outside mechanism, subassembly, or part with the United States, its possessions, and out any additional processing. A jewel Puerto Rico;

(iii) When the procuring contracting officer has positive knowledge that the item being procured does not contain jewel bearings;

(iv) When quality standards and requirements are beyond the production capabilities of the plant as evidenced by a written statement to that effect from the management of the Plant;

(v) When negotiated multiple award types of requirements contracts are in volved. In such instances provision must be made for procurement on a quarterly or other periodic basis of an amount of jewel bearings equal to the amount (by type and size) of jewel bearings required by the contractor in the performance of his contract;

(vi) When the Plant's backlog of current business precludes delivery of the bearings within reasonable time limits, as confirmed in writing by the management of the Plant; or

(vii) When the urgency of the requirement for all or part of the procurement of a jeweled item is such that delivery of prefabricated end items available from the stock of any dealer, wholesaler, distributor, or manufacturer offers the best possible solution. In this event, however, the required source provisions of this § 1-1.319 will be exempted only to the extent that immediate deliveries are to be made of the specified quantity of end items. The required source provisions shall apply to any quantity in excess of that specified for immediate delivery.

(2) Whenever it is necessary to redesign or reengineer jeweled items to satisfy specific performance requirements, the manufacturer of an item shall be required to use military standard jewel bearings in the redesign. This requirement may be excepted only when the dimensional tolerances or configurations of the military standard jewel bearings are such that their use in the product would prevent attainment of the required level of performance specified for the items. However, when one or more nonstandard bearings must be used to satisfy the performance requirements of certain applications of a jeweled item but military standard jewel bearings will function satisfactorily for other applications of that item, the item shall be redesigned to provide for the use of military standard jewel bearings. In no instance shall a manufacturer be required to redesign a jeweled item solely for the purpose of converting from the use of nonstandard to military standard jewel

bearings. This requirement is not intended to prevent any manufacturer from voluntarily redesigning a jeweled item solely to accommodate the use of military standard jewel bearings. A voluntarily redesigned bearing may be economically advantageous because of the unit price of military standard jewel bearings at the Plant.

(3) The cost differential between Langer-made bearings and imported bearings shall not be used as justification to avoid the purchase and use of jewel bearings from the Plant.

(d) Procedures. (1) Procurement of items in the following Federal Supply Classes and Groups are subject to the provisions of this § 1-1.319. (The complete Federal Supply Classification, listing all such classes and groups, is set forth in Cataloging Handbook H 2-1, which is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.) FS Class

Description 6605-------- Navigational instruments. 6610.

Flight instruments. 6615..

Auto pilot mechanisms and

airborne gyro components. 6620..

Engine instruments. 6625.

Electrical and electronic prop

erties measuring and test

ing instruments. 6830.------- Chemical analysis instru

ments. 6635.

Physical properties testing

equipment. 6636--- Environmental chambers and

related equipment. 6640.------ Laboratory equipment and

supplies. 6645.---- Time measuring instruments. 6650..

Optical instruments. 6655..

Geophysical and astronomical

instruments. 6660.

Meteorological instruments

and apparatus. 6665..--- Hazard detecting instruments

and apparatus. 6670-

Scales and balances. 6675..

Drafting, surveying, and map

ping instruments. 6680... Liquid and gas flow, liquid

level, and mechanical motion measuring instru

ments. 6685-------Pressure, temperature, and

humidity measuring and

controlling instruments. 6695.------- Combination and miscellane

ous instruments. 12.-.... Fire control equipment. 14. Guided missiles. 15.----- Aircraft and airframe structural

components.

25-----

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59 ---

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FS Class
Description

(4) Subsequent to the award of a con16.----- Aircraft components and acces tract that includes the clause required sories.

by paragraph (e), below, the contracting 18.---- Space vehicles.

officer may waive the "use" but not the Motor vehicles and cycles.

"acquisition” requirements of the clause. Vehicular equipment components.

The waiver may be granted upon subFire fighting, rescue, and safety

mission of a written request by the conequipment. Measuring tools.

tractor if the contractor or subcontractor Communications equipment. has on hand jeweled subassemblies or Electrical and electronic equip end items such as are required to be dement components.

livered under the contract; and either: 63.----- Alarm and signal systems.

(i) The production of such subassem65.----- Medical, dental, and veterinary

blies or end items specifically in performequipment and supplies.

ance of all or a part of the contract using 67------ Photographic equipment. 69------ Training aids and devices.

Langer-made jewel bearings would inter

fere with economical or normal produc(2) The Plant may initially reject a tion scheduling of the product under concontractor's or subcontractor's purchase

tract or with the production of another order because of that customer's cur item (governmental or commercial); or rently excessive and overdue indebted (ii) The delivery schedule under the ness to the Plant. The Plant is required contract or subcontract is such that the to refuse shipments against purchase use of on-hand jewel bearings or jeweled orders whenever shipments would in

subassemblies or parts is necessary. Uncrease the indebtedness of a customer

der either of the foregoing circumstances, beyond any credit limit which may have

the written request shall include a statebeen designated by GSA. Rejection by

ment that the Langer-made jewel bearthe Plant of a contractor's or subcon

ings which he is required to purchase tractor's purchase order or refusal to

under the contract will be used by him to ship against an accepted purchase order

replace his inventory of jewel bearings, under these circumstances will not be

subassemblies, or end items. Waivers of considered justification for the type of

the use requirement shall be granted waiver of the purchase requirement (with

only to the extent and for the period of a consequent adjustment in the contract time necessary to permit the contractor price) which is permitted in certain in

to acquire and use Langer-made jewel stances under the contract clause in (e),

bearings. In any instance when the use below. If the contractor or subcontractor

requirement is waived, an equitable adwhose purchase order is rejected or to justment for cost savings resulting therewhom shipments are refused for the foregoing reasons is in disagreement with

(5) A contractor shall not be authorthe management of the Plant on whether

ized to purchase from the Plant jewel the indebtedness actually exists or the bearings in amounts which exceed the amount of such indebtedness, the Gov

quantity required to satisfy the contract. ernment will require the Plant to accept (6) All purchase orders placed with the contractor's purchase order and to the Plant shall cite the prime contract make shipments against the purchase number and the date of the price list order on a “cash-on-delivery" (c.o.d.) cited in the prime contract. basis for each lot shipped. If necessary, (e) Contract clause. In all procurearrangements can be made for progress ments subject to these procedures, the payments by the Government to finance following clause is required for use: the c.o.d. requirements. Such measures REQUIRED SOURCE FOR JEWEL BEARING will be independent of and have no effect (a) For the purpose of this clause: on the final disposition of the alleged (1) “Jewel bearing" means a piece of syn. indebtedness or controversy between the

thetic sapphire or ruby of any shape, except

a phonograph needle, which has one or contractor and management of the

more polished surfaces and which is suitable Plant.

for use in an instrument, mechanism, sub(3) In all procurements subject to the assembly, or part without any additional requirements of this $ 1-1.319, the clause

processing. A jewel bearing may be either

unmounted or mounted into a ring or bushin paragraph (e), below, shall be inserted

Ing. Examples of Jewel bearings are: Watch in all solicitations and contracts. Bids or

holes-olive, watch holes-straight, pallet proposals shall be predicated on this stones, roller Jewels (jewel pins), end stones requirement.

(caps), vee (cone) Jewels, Instrument rings,

from shall be made. shall not be author.

cups, double cups, and orifice Jewels. As used herein, the term "jewel bearings" includes "related items."

(2) "Related items" means other synthetic sapphire or ruby components. Examples of related items are pivots, knife edges, insu. lators, spacers, windows, and striking surfaces other than pallet stones.

(3) "Price list” means the official U.S. Government Jewel Bearing Price List for Jewel bearings produced by the William Langer Jewel Bearing Plant. This list is issued periodically by the General Services Adminis. tration.

(4) "Plant" means the Government-owned William Langer Jewel Bearing Plant, Rolla, N. Dak.

(5) "Milltary Standard Jewel Bearing" means a jewel bearing conforming to Mille tary Specification No. MIL-B-27497 (latest revision) entitled "Bearings, Jewel, Sapphire or Ruby, Synthetic."

(b) Jewel bearings required in the performance of this contract shall be procured from the plant at prices established in the price list dated (date to be filled in by Contracting Officer). Each purchase order issued to the Plant under this contract shall include the prime contract number and date of the price list cited above. The Contractor agrees that the quantities, types, and sizes (including tolerances) of jewel bearings so ordered will be those required for the performance of this contract. Within 90 calendar days after the effective date of this contract the Contractor shall furnish to the Contracting Officer a certification that the required jewel bearings were ordered pursuant to this clause. The Contractor agrees to notify the Contracting Officer promptly of the rejection of his (or any subcontractor's) purchase order in whole or in part by the Plant. The requirement for purchase and use of jewel bearings from the Plant will be waived to the extent of orders rejected because of the Plant's inability to deliver. II such a waiver is granted, an equitable adjustment shall be made in the contract price or delivery schedule, or both, in accordance with the "Changes" clause of this contract. Further, the requirement for use (but not the requirement for purchase from the Plant) of jewel bearings may be waived by the Contracting Oficer when such waiver is determined by him to be consistent with established policy.

(c) The Contractor agrees to use the Langer-made jewel bearings in the production of subassemblies or end items either under this contract or in his cominercial production.

(d) Whenever it is necessary for the Contractor or any subcontractor to redesign or reengineer Jeweled items in order to satisfy specific performance requirements, the Con tractor or subcontractor shall provide in such redesign for the use of military standard Jewel bearings. This requirement does not

apply when the dimensional tolerances or configurations of military standard jewel bearings are such that their use in the product would prevent attainment of the required level of performance specified for the item. However, wben one or more nonstandard bearings must be used to satisfy performance requirements of the jeweled item but military standard jewel bearings will function satisfactorily for other applications within the same item, the item will be quired to be redesigned to provide for the use of military standard jewel bearings in such "other" applications. The Contractor or subcontractor is not required to redesign a jeweled item solely for the purpose of converting from the use of nonstandard to military standard jewel bearings. Nothing in this contract shall prevent any Contractor or subcontractor from voluntarily redesigning a jeweled item solely to accommodate the use of military standard jewel bearings.

(e) If at the end of the contract period, the total quantity of end items actually ordered under this contract is less than the total estimated quantity, and the Contractor, pursuant to paragraph (b) of this clause, has purchased a larger quantity of Langer-made jewel bearings than used in deliveries made under this contract, an equitable adjustment shall be made (if requested by the Contractor within 90 days after the end of the contract period) to reimburse the Contractor for any additional costs resulting from such excess purchase but in no event shall such additional costs cover more Jewel bearings than necessary to deliver the total estimated quantity of end items. Such excess Jewel bearings shall be disposed of as directed by the Contracting Officer. However, such excess jewel bearings may be used in partial satisfaction of the requirements to purchase Langer-made jewel bearings pursuant to paragraph (b) of this clause where a subsequent contract to furnish similar end items to the Government is entered into with the same Contractor. In this situation the requirement to purchase and use Jewel bearings from the plant will be waived up to the amount of such excess jewel bearings in Contractor's possession upon submission of a written request by the Contractor. Such request shall contain documented evidence in support of the waiver of purchase and nonuse of such excess jewel bearings. If such waiver is granted, an equitable adjustment to the extent of differences in price lists shall be made in the contract price in accordance with the “Changes" clause of this contract.

(1) The Contractor agrees to retain for 3 years from the date of final payment under this contract and upon request of the Contracting Officer to make available during that period records showing compliance with this clause.

(g) The Contractor agrees to insert this clause, including this paragraph (g), in every subcontract and purchase order issued

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