§ 3-30.104-1 Letters of credit. (a) Single letter of credit system. Blanket determination and findings authorizing interest free advance payments under a single Federal Reserve letter of credit have been executed and remain in effect for each of the nonprofit organizations listed in § 330.150. These determinations and findings are applicable to all existing and future contracts entered into by the Department and its operating agencies. All contracts with these organizations which require advance payments (whether under section 305 of the Federal Property and Administrative Services Act of 1949, as amended, or other statutory authority) shall provide for payment to be made under the appropriate Federal Reserve letter of credit. The clause set forth in § 37.5017 shall be included in all such contracts and the cognizant fiscal office shall be apprised of its inclusion. (b) Individual contracts. In these instances where it is practical and feasible to finance an advance payment under an existing Federal Reserve letter of credit other than one which under is incorporated the single system described in paragraph (a) of this section, a determination and findings shall be submitted as prescribed in § 3-3.303-51, except where authority other than section 305 of the Federal Property and Administrative Services Act is cited. In cases where authority other than section 305 is cited a determination and findings shall be submitted to the appropriate authorizing official. [37 FR 13260, July 6, 1972, as amended at 44 FR 36973, June 25, 1979] Subpart 3-30.4--Advance Payments § 3-30.403 Interest. (a) Interest will be charged on the unliquidated balance of all advance payments at a rate of 6 percent per annum except that advance payments without interest may be approved when in connection with nonprofit contracts which are without fee with educational institutions and other nonprofit organizations, whether public or private, for the performance of work involving health services, educational programs, or social service programs, including, but not limited to, such programs as: (1) Community health representative services for an Indian Tribe or Band; (2) Narcotic addict rehabilitative services; (3) Comprehensive health care service program for Model Neighborhood programs; (4) Planning and development of health maintenance organizations; (5) Dissemination of information derived from education research; (6) Surveys or demonstrations in the field of education; (7) Producing or distributing educational media for handicapped persons including captioned films for the deaf; (8) Operation of language or area centers; (9) Conduct of biomedical research and services in support thereof; (10) Research surveys or demonstrations involving the training and placement of health manpower and health professionals, and dissemination of information related thereto; 1 (11) Surveys or demonstrations in the field of social service. (b) Contracts with interest-free advance payments should provide that the contractor will charge interest at a rate of 6 percent per annum on subadvances or downpayments to subcontractors, and that interest charged on such subadvances and downpayments will be credited to the account of the Government. However, interest should not be charged on subadvances on nonprofit subcontracts which are without fee with nonprofit educational or research institutions for experimental, research, or developmental work. [37 FR 13260, July 6, 1972] § 3-30.408 Uses of advance payments. (a) All contracts for research work with educational institutions located in the United States shall provide for financing by way of advance payments, in reasonable amounts, unless otherwise prohibited by law. (b) The Treasury Department's letter of credit method of financing advance payments shall be employed, whenever feasible. Department-wide blanket letters of credit, which apply to the financing of all research contracts and grants between the institution and all agencies of the Department, shall be utilized to the maximum extent practicable. Where a particular educational institution is supported by research contracts and grants with only one operating agency of the Department, a single agency letter of credit, applicable to all research contracts and grants between the institution and that agency, may be employed. [36 FR 11585, June 16, 1971] PART 3-50-ADMINISTRATIVE MATTERS Subpart 3-50.1—Review and Approval of Proposed Contract Awards Sec. 3-50.100 Scope of subpart. 3-50.101 Procurements requiring review. 3-50.102 Restriction on reviewers. 3-50.103 Conduct of the review. 3-50.104 Furnishing of implementing instructions. business practices; to determine that the contractual document properly reflects the mutual understanding of the parties within the guidelines and constraints set forth in the Federal Procurement Regulations and HEW Procurement Regulations; to advise the Contracting Officer of noted deficiencies and areas or items of questionable acceptability; and to offer recommendations for corrective actions or means for resolution. § 3-50.101 Procurements requiring review. (a) A preaward review will be made or all formally advertised or negotiated contracts and modifications which by themselves would obligate the Government in excess of $100,000 except for the National Institutes of Health and the Health Services and Mental Health Administration. The review levels for these agencies shall be in accordance with the following: NATIONAL INSTITUTES OF HEALTH Over $100,000... Over $150,000... Do. Do Over $250,000. Over $300,000. Do Do Do Over $500,000. Over $300,000. Procurement Branch (Office of Centralized Contracting Activity National Heart and Lung Institute. Bureau of Health Manpower Education. National Institute of Child Health and National Institute of Neurological Health Services and Mental Health The official responsible for the review shall be as follows: Social and Rehabilitation Service-Chief, Contracts Branch, Division of General Services. Office of the Secretary-Chief, Procurement Section, Supply Operations Branch. Office of Education-Director, Contracts and Grants Division. Food and Drug Administration-Chief, Contracts and Grants Branch, Division of General Services. Social Security Administration-Chier, Procurement Section, Property Management Branch. National Institutes of Health-Director, Office of Contracts and Grants and Chief, Procurement Branch, Office of Administrative Services. Health Services and Mental Health Administration-Director, Office of Procurement and Materiel Management. Office of Central Services, Public Health Service-Director, Office of Central Serv. ices. (b) Operating agencies shall require review of procurements of a lesser dollar amount to assure that a representative number of the high dollar value procurements within each operating agency are reviewed. § 3-50.102 Restriction on reviewers. In no event will the individual signing the contractual instrument be the reviewer of the same procurement. If the individual designated in § 3-50.101 is the same person who signs the contractual document, the individual responsible for the review must be one level above the Contracting Officer. The individual responsible for the review must be knowledgeable in the procurement field. In the event an operating agency utilizes a contract review board, the board must include individuals who are knowledgeable in the procurement field. § 3-50.103 Conduct of the review. The individual responsible may solicit the participation of specialists in various technical and administrative disciplines to aid in the review. The mode of conduct of the review is not prescribed herein in order to permit discretionary judgment in determining the depth to which significant areas are examined. However, the reviewer shall determine that the contract file constitutes an independent record, documented to provide a complete chronology of actions related to all aspects of the procurement and the documentation is consistent with the requirements of HEWPR 3-1.313-51. The reviewer shall determine that each contract file contains documentation or other data, i.e., technical and business management evaluation, cost advisory reports, negotiation memorandums, etc., sufficient to explain and support the rationale, judgments, and authorities upon which all decisions and actions were predicated. In addition the 1 1 1 file shall be examined to determine that: (a) If the proposed procurement action is to be awarded on a noncompetitive basis, documentation, and approvals supporting the procurement are in accordance with HEWPR § 33.802-50, and justify the action. (b) Proper publicizing of the proposed procurement was made pursuant to FPR § 1-1.1003. (c) Approval was obtained for any deviations from prescribed contract clauses. (d) Sufficient competition was obtained and that negotiations were conducted with all firms in the competitive range. (e) All the rules set forth in Part 1-2 of the Federal Procurement Regulations were compiled with when the proposed award is a result of an IFB. (f) Appropriate determination and findings as required by FPR 1-3.3 to justify authority to negotiate, method of contracting, and advance payments are a part of the contract file. § 3-50.104 Furnishing of implementing instructions. A copy of all implementing instructions issued by the operating agencies regarding the review of procurements will be furnished to the Director of Procurement and Materiel Management, OASAM. Subpart 3-50.2-Procurement Instrument Identification Numbering System SOURCE: 39 FR 23193, June 27, 1974, unless otherwise noted. § 3-50.200 Scope of subpart. This subpart prescribes policy and procedures for assigning identifying numbers to contracts and related instruments, including solicitation documents, purchase orders and delivery orders. § 3-50.201 Numbering contracts. (a) Contracts which require numbering. The following contracts shall be numbered in accordance with the system prescribed in paragraph (b) of this section: (1) All contracts, including letter contracts and task orders under basic ordering agreements which involve the payment of $2,500 or more for the procurement of personal property or nonpersonal services; (2) all contracts which involve the payment of $2,000 or more for construction (including renovation, or alteration); and (3) all contracts which involve more than one payment regardless of amount. The number assigned to a letter contract shall be assigned to the superseding definitized contract. (b) Numbering system. All contracts which require numbering shall be assigned a number consisting of the following: (1) The three digit code assigned to the procuring office by the Office of Grants and Procurement Management, GASAM; (2) a two digit fiscal year designation; and (3) a four digit serial number. While it is required that a different series of four digit serial numbers be used for each fiscal year, serial numbers assigned need not be sequential. (c) Illustrations of contract numbers. The initial contract executed by the Supply Operations Branch, Office of the Secretary for fiscal year 1975 should be numbered 100-75-0001, the second contract 100-75-0002. Alternatively, if it is desirable for internal identification purposes to establish separate series of numbers for formally advertised and negotiated contracts this procedure is permissible. In this instance the initial formally advertised contract might be numbered 100-750001 and the initial negotiated contract numbered 100-75-0500. (d) Assignment of identification codes. Each contracting office of the Department shall be assigned a three digit identification code by the Office of Grants and Procurement Management, OASAM. Requests for the assignment of such codes for newly established contracting offices shall be submitted by the headquarters procurement staff office of the procuring activity to the Director, Division of Grants, Procurement, Materiel Management Information and Reports, OGPM-OASAM. Conversely, in the event that a contracting office is to be disestablished the Director, Division of Grants, Procurement, Materiel Management Information and Reports, 60-119 0-80--16 OGPM-OASAM, shall be notified. A listing of the contracting office identification codes currently in use is contained in the HEW Contract Information System Manual (DCIS). [39 FR 23193, June 27, 1974, as amended at 41 FR 19635, May 13, 1976] § 3-50.202 Numbering of solicitation documents. Requests for proposals and invitations for bids shall be numbered in accordance with procedures prescribed by the headquarters staff office of the procuring activity. § 3-50.203 Numbering of purchase and delivery orders. Contracting offices shall establish procedures for numbering purchase orders as required for effective identification and control. § 3-50.204 Basic agreements. Basic agreements shall be numbered in accordance with procedures prescribed by the headquarters staff office of the cognizant procuring activity. However, individual contracts entered into pursuant to the terms and conditions of such basic agreements shall be numbered in accordance with § 3-50.201(b). § 3-50.205 Basic ordering agreements. Basic ordering agreements shall be numbered in accordance with procedures prescribed by the headquarters staff office of the procuring activity. However, task orders placed under such agreements shall be numbered in accordance with § 3-50.201(b) if the dollar amount of such an order is $2,500 or more. Subpart 3-50.3-Preparation of Negotiation Memorandums SOURCE: 38 FR 9080, Apr. 10, 1973, unless otherwise noted. § 3-50.300 Scope of subpart. The purpose of this regulation is to establish a standardized format for the preparation of negotiation memorandums (Summary of Negotiations). § 3-50.301 Contents of the negotiation memorandum. The negotiation memorandum is a complete record of all actions leading to award of a contract. It should be in sufficient detail to explain and support the rationale, judgments, and authorities upon which all actions were predicated. The memorandum will document the negotiation process and reflect the negotiator's actions, skills, and judgments inconcluding a satisfactory agreement for the Government. Negotiation memorandums shall contain discussion of the following or a statement of nonapplicability, however, information already contained in the contract file need not be reiterated. A reference as to the document which contains the required information is satisfactory. (a) Description of articles and services and period of performance. A description of articles and services, quantity, unit price, total contract amount, and period of contract performance shall be set forth (if Supplemental Agreement-show previous contract amount as revised as well as information with respect to the period of performance). (b) Negotiation authority. Cite the particular paragraph of 41 U.S.C. 252 permitting the negotiations and an indication of the date of approval of the required "Findings and Determinations" (F&D) authorizing the negotiation. If a class F&D is cited, indicate expiration date. (c) Procurement planning. Summarize any procurement planning activities that have taken place. Include such items as meetings with programs and staff personnel and the development of procurement planning schedules (See HEWPR Subpart 3-3.50 for further details relative to procurement planning). (d) Synopsis of proposed procurement. A statement as to whether the procurement has or has not been publicized in accordance with FPR 1-1.10. A brief statement of explanation shall be included with reference to the specific basis for exemption under the FPR. (e) Contract type. Provide sufficient detail to support the type of contractual instrument recommended for the |