with procedures prescribed by § 6-104.4(b) of Armed Services Procurement Regulation, dated January 1, 1969. Accordingly, bids under this solicitation offering domestic source end products normally will be evaluated against bids offering other end products by adding a factor of 50 percent to the latter, exclusive of import duties. Details of the evaluation procedure are set forth in § 5A-6.104-50 of the General Services Administration Procurement Regulations.

Each bid offering a foreign source end product must state below or on an attachment to the bid the amount of duty included in each bid price. Failure to furnish duty information will result in use of the entire item bid price (inclusive of any unspecified duty) when adding the "Buy American" differential.

§ 5A-6.105 Excepted articles, materials, and supplies.

(a) Requests for determinations concerning nonavailability of domestic supplies (see § 1-6.103-2) shall be submitted on a case-by-case basis, with an appropriate statement of facts and a proposed determination to the appropriate FSS Central Office Assistant Commissioner, Regional Commissioner, or other equivalent official authorized to make this determination. The statement of facts shall include the following information:

(1) Description of the item(s), including unit and quantity.

(2) Estimated cost, including duty, if any (show the amount of duty separately).

(3) Transportation costs for delivery to destination, if item is to be procured f.o.b. origin.

(4) Country of origin.

(5) Name and address of prospective contractor(s), if available.

(6) Brief statement as to the necessity for the procurement.

(7) Statement of effort made to procure a similar item of domestic origin or statement that there is no domestic item which can be used as a reasonable substitute.

(b) Ordinarily, the findings and determination of nonavailability shall be prepared in the format shown below:

GENERAL SERVICES ADMINISTRATION

Reference No.

FINDINGS AND DETERMINATION OF NONAVAILABILITY UNDER THE BUY AMERICAN ACT REGARDING PURCHASE OF (INSERT DESCRIPTION) Pursuant to the provisions of the Buy American Act (41 U.S.C. 10a-d), and Executive Order 10582, December 17, 1954 (3 CFR Supp.), and by virtue of delegated authority, the following findings of fact and determination are hereby made:

1. Findings (set forth a statement of facts). 2. Determination. In view of the foregoing, it is hereby determined that for the purposes of the Buy American Act (insert item description) is not mined, produced, or manufactured at the present time in the United States in sufficient and reasonably available commercial quantities and of a satisfactory quality. Date

(Signed)

(End of Findings and Determination) (c) When it has been determined that the Buy American Act is not applicable to the purchase of the end product, or to the components from which it is manufactured, the original of the determination shall be made a part of the contract file. In addition, a statement substantially as follows shall be inserted in the applicable contract documents:

DETERMINATION OF NONAVAILABILITY OF
DOMESTIC SUPPLIES

For the purpose of the Buy American Act, the (insert title of person making determination), General Services Administration, has determined that (insert item description) is not mined, produced, or manufactured at the present time in the United States in sufficient and reasonably available commercial quantities and of a satisfactory quality. (End of Statement.)

(a) Where FSS enters into contracts as the procurement agent for AID (including procurements under the Commercial Import Program (CIP)), such procurements (except those involving administrative procurement) are not governed by Subparts 1-6.8 or 5A-6.8, but shall be made in accordance with AID instructions.

(b) Where FSS procures articles or services for use outside the United States directly for another agency, whether the procurement requests involved are initiated outside or inside the United States, it will be assumed that any possible advantageous use of excess or near excess foreign currencies has been considered by the requisitioning agency and that such currencies are not available, unless a specific notation concerning such currencies is made on the purchase request.

§ 5A-6.805 Exceptions.

Where, pursuant to § 1-6.805(a)(6), the contracting office has knowledge that the domestic cost of an end product or service exceeds the foreign cost by more than 50 percent of the foreign cost, the case shall be forwarded to the Assistant Commissioner for Procurement for determining if the domestic product or service should nevertheless be procured. This procedure shall be followed for all Balance of Payments Program procurements over $10,000.

[41 FR 11025, Mar. 16, 1976]

ten evidence from the requisitioning office concerning such estimates is not required. Accordingly, except when buying for AID (including CIP items), procurements to be made directly for other agencies, where the items to be procured are for use outside the United States, shall be made under the Balance of Payments Program (see § 5A-6.806-70).

(b) Prior to procuring any item for GSA use outside the United States, cost estimates, as required by § 16.806-1, shall be made before restricting competition to U.S. end products or services.

§ 5A-6.806-70 Solicitation provision.

The certificate and clause, as set forth in §§ 1-6.806.3 and 1-6.806-4, respectively, shall be included in solicitations issued to implement the Balance of Payments Program. In addition, the following introductory language shall be entered immediately above such certificate and clause:

PROCUREMENT UNDER BALANCE OF PAYMENTS PROGRAM

To alleviate the impact of Government expenditures on the U.S. balance of international payments, only United States end products and services may be delivered under this contract. Accordingly, the Representation on page 2 of this solicitation entitled "Buy American Certificate" and the clause in the General Provisions entitled "Buy American Act” are inapplicable to this contract, and the following certificate and clause are substituted therefor:

U.S. Products Certificate (use language in § 1-6.806-3).

U.S. Products and Service Clause (use clause prescribed in § 1-6.806-4).

5A-7.103-90

Gratuities.

5A-7.103-91 Deliveries beyond the contractual period-placing of orders.

5A-7.103-92 Option to extend the term of

contract.

5A-7.103-93 Classified information. 5A-7.103-94 Warranty of pesticides.

5A-7.103-95 Production and delivery orders.

5A-7.103-97 Special direct delivery requirement.

5A-7.103-98 Placarding rail cars.

5A-7.104 Additional clauses.

5A-7.104-1 Liquidated damages provisions.

Subpart 5A-7.7—Transportation Contracts 5A-7.703 Requirea clauses in transportation contracts.

AUTHORITY: Sec. 205(c), 63 Stat. 390; 40 U.S.C. 486(c); and 41 CFR 5-1.101(c).

NOTE: For information on a complete redesignation and reorganization of this part which appeared at 38 FR 29468, Oct. 25, 1973, see the List of Sections Affected.

Subpart 5A-7.1—Fixed Price Supply Contracts

§ 5A-7.102 Required clauses. [38 FR 29468, Oct. 25, 1973]

§ 5A-7.102-2 Changes (Delivery Options). The following clause (included in GSA Form 1424) shall be used to amplify the Changes article of Standard Form 32.

CHANGES-DELIVERY OPTIONS AND ADJUSTMENTS IN TRANsportation COSTS Within the scope of Article 2 of Standard Form 32, the right is reserved by the Government to:

(a) Direct deliveries to destinations or to consignees other than those originally named in the contract for any part or all of the quantities originally stipulated in the contract;

(b) Direct shipments in quantities which will require a differential in rates from those on which the contract prices are based; and

(c) Direct the Contractor to ship by a mode of transportation other than stipulated in the contract.

The rights reserved above may be exercised with respect to individual orders by any office authorized to place orders under the contract. When delivery to a destination other than one named in the contract is directed, the contractor shall deduct from his invoice the lowest transportation charges

that would have applied for the diverted quantity as a separate shipment to the contract destination, and shall add, as a separate item, the lowest transportation charges applicable to the quantity delivered. Except where the adjustment is less than $25, such determinations shall be augmented by the contractor's submission of (i) his calculations of the lowest transportation charges that would have applied for delivery to the original destination and (ii) any freight bills or express receipts issued reflecting payments actually made. If no such bills or receipts were issued, an explanatory statement shall be submitted. If more than one destination is named in the contract, the charges that would have applied shall be those applicable to the destination named in the contract which is nearest the destination to which delivery is actually made. Distances between destinations shall be determined by reference to the current Household Goods Carriers' Bureau Mileage Guide. If two or more contract-named destinations are equidistant from the destination to which delivery is actually made, the destination yielding the lowest price to the Government shall be used. In making the foregoing computations, the transportation charges used will, in all cases, be the lowest regularly established rates on file with the Interstate Commerce Commission, the U.S. Maritime Commission, any State Regulatory Body, or Legal Contract Carrier Rates, provided a certified copy of such Legal Contract Carrier Rates is on file with this Administration or accompanies the Contractor's invoice for payment.

[34 FR 8238, May 28, 1969 as amended at 38 FR 29468, Oct. 25, 1973]

§ 5A-7.102-4 Variation in quantity.

(a) The following Variation in Quantity clause (included in GSA Form 1424) shall be used to provide a standard or usual percentage of variation in quantity which may be authorized when the variation is caused by conditions specified in Article 4, of Standard Form 32.

VARIATION IN QUANTITY

A variation in quantity, when caused by the conditions specified in Article 4 of Standard Form 32 will be accepted, provided that such variation is not in excess of 3 percent of the quantity ordered.

(b) The Variation in Quantity clause set forth above is included in GSA Form 1424, GSA Supplemental Provisions, solely for the purpose of administrative convenience in avoiding the need to amend contracts or purchase

orders when an overshipment or an undershipment within prescribed limits is determined to be acceptable. This standard clause is in no way intended to establish a general policy with respect to the extent to which FSS or the agencies it serves will accept variations in quantity. If experience indicates that a different variation percentage should be used in a particular procurement or class of procurements, due to the particular industry practices involved, the contracting officer may determine that a variation in percentage, other than the 3 percent normally called for in the Variation in Quantity clause, shall be used. In this regard, based on Central Office studies, it has been determined that (1) a 5 percent variation shall be specified when procuring printing stationery paper, (2) a 10 percent variation shall be specified when procuring aluminum foil items, (3) a full pallet quantity be specified when the solicitation requires palletization, and (4) a 10 percent variation shall be specified when purchasing special paint when the purchase is for 500 gallons or less, particularly if it is of an unusual type or color or a specialty item (e.g., gray or olive drab baking enamel for metal equipment).

(c) When other than a 3 percent variation is to be specified, the following clause shall be used:

VARIATION IN QUANTITY (ENTER ITEM
DESCRIPTION)

Article 4, Variation in Quantity, of GSA Form 1424, GSA Supplemental Provisions, is hereby deleted in its entirety and the following substituted: A variation in quantity, when caused by the conditions specified in Article 4 of Standard Form 32, will be accepted, provided that (1) such variation is not in excess of * percent of the quantity ordered, or (2) the variation results in a full pallet quantity. If one-half pallet or less, ship to the next low pallet quantity. If over one-half pallet, ship to the next higher pallet quantity.

(End of clause)

*Enter appropriate percentage.

(d) When no variation in quantity is to be permitted, the following clause shall be used:

VARIATION IN QUANTITY

Article 4, Variation in Quantity, of GSA Form 1424, GSA Supplemental Provisions, is hereby deleted and no variation in quantity shall be permitted in deliveries under this contract.

[34 FR 8239, May 28, 1969 as amended at 35 FR 13885, Sept. 2, 1970; 36 FR 14129, July 30, 1971. Redesignated and amended at 38 FR 29468, Oct. 25, 1973; 42 FR 5057, Jan. 27, 1977; 43 FR 51398, Nov. 3, 1978]

§ 5A-7.102-5 Inspection.

In addition to Article 5 of Standard Form 32, the following clauses (included in GSA Form 1424) shall be used:

INSPECTION

(a) Source inspection (Use provision prescribed in § 5A-2.201-78).

(b) Additional costs of inspection and testing. The Contractor will be charged for any additional costs of Government inspection and test when (1) supplies are not ready at the time such inspection and test is requested by the Contractor, or (2) when reinspection or retest is necessitated by prior rejection. See Article 5(c) of Standard Form 32. When such inspection and test is performed by or under the direction of the General Services Administration, charges will be at the rate of $11 (rate per man-hour for inspection at a GSA supply distribution facility) per man-hour if the inspection is at a GSA supply distribution facility, $16 per man-hour, plus travel costs incurred, if the inspection is at any other location, and $16 per man-hour for laboratory testing, except that when a testing facility other than a Federal Supply Service laboratory performs all or part of the required tests, the Contractor shall be assessed the actual amount of the costs incurred by the Government as a result of testing in such a facility. When inspection is performed by or under the direction of any agency other than the General Services Administration, the same charges may be used or such agency may assess their costs for performing the inspection and testing.

(c) Contractor inspection responsibility. The inspection system required to be maintained by the Contractor under Article 5(e) of Standard Form 32 may be the Contractor's own facilities or any other inspection facilities or services acceptable to the Government. It shall be utilized to perform all inspections and tests of materials and components prior to incorporation into end articles and for such end articles prior to offering the end articles for delivery under the contract. The Contractor is responsible for controlling product quality and for offering to the Government for acceptance only those supplies and services that conform to

contract requirements and for maintaining objective evidence of this conformance. Records shall be available for review by the Government representative and copies of individual records shall be furnished him upon request. The right is reserved to the Government to evaluate the acceptability and effectiveness of the Contractor's inspection system prior to award and periodically during the contract period. In no event shall the Government's right to inspect and test completely any and all lots offered for delivery under the contract be waived. Failure of the Contractor to maintain an acceptable inspection system as provided in Article 5(e) and in this clause may result in termination of the contract unc'er Article 11 of the General Provisions.

(d) Quality Approved Manufacturer Agreement. All of the terms and conditions of any existing Quality Approved Manufacturer Agreement entered into by the Contractor and/or his supplier and the Government are hereby incorporated in this contract and made a part hereof.

(e) Inspection and receiving reports. When supplies will be inspected on the premises of the Contractor or a subcontractor, the Contractor shall be responsible for preparation and distribution of inspection documents as follows: (i) DD Form 250, Material Inspection and Receiving Report, for deliveries to military agencies, or (ii) GSA Form 308, Notice of Inspection, for deliveries to GSA or other civilian agencies. When required, the Contractor will be furnished a supply of GSA Form 308 and/or DD Form 250, and complete instructions for their accomplishment and distribution.

(f) Point of acceptance. (Use provision prescribed in § 5A-14.203.)

(g) Availability of records. In addition to any other requirement of the contract, the Contractor shall maintain at the point for source inspection and make available to the contracting officer or his authorized representative, for the duration of the contract and 6 months (180 days) thereafter records showing the following information for each order received under the contract: (1) Order number; (2) date order received by the contractor; (3) quantity ordered; (4) date scheduled into production; (5) batch or lot number, if applicable; (6) date inspected and/or tested; (7) date available for shipment; and (8) date shipped or date service completed.

[35 FR 11793, July 23, 1970. Redesignated and amended at 38 FR 29468, Oct. 25, 1973; 40 FR 8950, Mar. 4, 1975; 44 FR 37922, June 29, 1979]