tion with a "public building" as that term is defined in section 13 of the Public Building Act of 1959 (40 U.S.C. 612), may be exercised only under the conditions prescribed in § 101-19.402(c) of this title and subject to standards prescribed by the Administrator of General Services pursuant to § 10119.502 of this title. The procurement of such services in connection with special purpose space such as schools, hospitals, laboratories, and research centers is subject to the requirements and conditions prescribed by section 302(c)(4) of the Federal Property and Administrative Services Act of 1949, as amended (41 U.S.C. 252(c)(4)) and § 13.204 of this title.

§ 3-4.1002 Definitions.

(a)-(c) [Reserved]

(d) "Fee" means the total amount payable to the A/E for the work and services to be performed.

§ 3-1.1003 Public announcements.

(a) One of the first steps in beginning the A/E selection process is to assure the availability of funds so that the succeeding A/E selection steps will be accomplished in a proper manner and that the Government and interested A/E firms will not be expending resources on projects that are tentative or stand little chance of being approved. In the event a certification of available funding has not been received but is reasonably anticipated in the near future, and it is imperative that the Government's requirement be publicized without further delay, the notice(s) publicizing the requirement shall contain wording to the effect that the Department expects to receive the design funds in the near future and discussions will not be held with the proposed A/E firm until receipt of such funds.

(b) Program of requirements. The program of requirements or design criteria is normally prepared by the appropriate program element, and is the basis for the subsequent preparation of the statement of work. The Office of Facilities Engineering and Property Management (OFEPM), including its Regional Offices (ROFEC), should provide assistance in the preparation of the program of requirements. The

program requirements as well as the A/E statement of work (scope of services, see § 3-4.50-3, and the Independent Government estimate, see § 14.100-3, should be prepared and completed prior to the public announcement of the proposed procurement to ensure that the announcement complies with the requirements of FPR 11.1003-3 and 1-1.1003-7.

(c) Preparation of A/E Statement of Work (Scope of Services). The statement of work shall be prepared by that office responsible for the evaluation and selection action. A statement of work should facilitate price negotiations, eliminate ambiguities, and assure that the design will satisfy program needs. Each A/E statement of work should reflect the specific design requirements. Such items as scheduling, cost control, and value management including life cycle costs are important factors for consideration. Typical areas coverd by an A/E statement of work are: Predesign; Concepts & Schematics; Design Development; Contract Document Development; Administration and Inspection; and other pertinent requirements such as time and payment scheduling, and phased options.

(d) To insure the broadest publicity concerning the Government's interest in obtaining A/E services, the contracting officer shall have developed notices in accordance with § 1-1.10037(b)(9) with respect to individual projects. The following should be included in notices which publicize procurement of A/E services:

Firms desiring to be considered for architect/engineer contracts in a given area must file the Standard From 254 and Standard Form 255, when applicable, with either the Principal Operating Component or the ROFEC whichever may be appropriate, or with the Deputy Assistant Secretary for Facilities Engineering and Property Management (DASFEPM), Office of Architectural and Engineering Service, OFEPM, Office of the Secretary, DHEW, 330 Independence Avenue, SW., Washington, D.C 20201, depending on the geographical area of interest.

§ 3-4.1004 Selection.

§ 3-4.1004-1 Establishment of A/E evaluation boards.

(a) The following shall apply to the establishment of A/E evaluation boards:

(1) When the independent Government estimate of the total A/E proposed contract exceeds $10,000 or regardless of the dollar amount involved wherever A/E services are to be procured under an open-end (requirements) contract, all evaluation and selection actions shall be performed by evaluation boards of the Office of Facilities Engineering and Property Management (OFEPM) which includes ROFEC's.

(2) When the independent Government estimate of the total A/E proposed contract is $10,000 or less and the project is not within the scope of an open-end contract, such action for the evaluation and selection may be performed by ROFEC boards with the concurrence of the Regional Engineer when such functions cannot be performed by the principal operating component under paragraph (a)(3) of this section.

(3) When the independent Government estimate of the total A/E proposed contract is $10,000 or less and not within the scope of an open-end contract, the evaluation and selection actions may be conducted by the principal operating component's personnel who meet the qualifications as set forth herein and consistent with the requirements of Subpart 1-4.10.

(4) In the event of special circumstances involving a proposed A/E contract estimated to exceed $10,000 which would not fall within the scope of an open-end contract, and which a principal operating component (POC) believes would warrant its exercising evaluation and selection functions in lieu of OFEPM, the POC must submit its request and justification to the DASFEPM, OFEPM, for approval.

(5)(i) When the Government estimate for the total propsed A/E requirement is more than $10,000 each evaluation board shall consist of five licensed professional architects or engineers (with the Regional Engineer or his representative serving as chairman

on a ROFEC board), one program or administrative representative, and one nonvoting recording secretary. A minimum number of three licensed architects or engineers shall be present at all evaluation board meetings and shall constitute a quorum.

(ii) When the independent government estimate is $10,000 or less, each evaluation board shall consist of at least one licensed professional architect or engineer (with the Regional Engineer or his representative serving as Chairman on a ROFEC board), one program or administrative representative, and one nonvoting recording secretary.

(6) The makeup of evaluation boards in the Office of the DASFEPM, OFEPM, is determined by the DASFEPM, OFEPM, so as to meet varying requirements. The Regional Engineers shall determine the makeup of the evaluation boards in the ROFEC's. Each principal operating component shall determine the makeup of the evaluation boards, consistent with this section (3-4.1004).

(7) No member of an outside firm or organization shall participate as а member of an evaluation board without the prior written approval of the DASFEPM, OFEPM. Any member so approved will be a nonvoting member.

§ 3-4.1004-2 Functions of the evaluation boards.

Under the general authority of the Secretary's technical staff, OFEPM, the Departmental A/E evaluation boards shall perform the following functions:

(a)-(b) [Reserved]

(c) Prepare the report for submission to the DASFEPM, OFEPM, or his authorized representative, whichever may be appropriate under § 3-4.1004-4, listing in the order of preference not less than three firms with addresses considered to be the most highly qualified to perform the required services. The report shall comply with § 14.1004-2(c) of this title and include the following:

(1) Summary sheet and rating factors tabulating the individual member scores, ranking, and rating factors;

(2) SF-254's and 255's plus any essential brochures for each A/E firm, and

(3) Government estimate of total A/ E fee.

§ 3-4.1004-3 Evaluation criteria.

(a)-(d) [Reserved]

(e) Whenever possible, small business firms will be selected for projects for which they are considered to be qualified and to be capable of handling.

§ 3-4.1004-4 Action by agency head or his authorized representative.

(a) The responsible official to whom the authority has been delegated shall review the report of the A/E evaluation board, and in concert with appropriate technical and staff representatives, shall either concur or otherwise advise the Board of his decision in writing.

(1) The approval of the DASFEPM, OFEPM or his designee is required, whenever:

(i) The Government's estimate of the total proposed A/E contract exceeds $100,000; or

(ii) Any modification to an existing contract would increase the total contract amount by more than 35 percent.

(2) The approval of the cognizant Regional Engineer is required whenever the Government's estimate is less than $100,000, except for paragraph (a)(3) of this section. (In the Baltimore-Washington metropolitan area, such approval should be requested of the Director, Office of Architectural and Engineering Services (OFEPM).)

(3) The approval of the head of a principal operating component or his designee shall be provided when:

(i) The Government's estimate of the total proposed A/E contract is $10,000 or less and selection is made pursuant to § 1-4.1004-5; or

(ii) Under the circumstances referenced in § 3-4.1004-1(a), (3), and (4), the principal operating component will perform the evaluation and selection functions in lieu of OFEPM.

(b) The approving official shall inform the board in writing of his decision which will serve as an authorization for the contracting officer to commence negotiations. If the approving

official changes the order of preference listing, the decision, justification, and authorization shall be likewise addressed to the board. A copy of the board's recommendation and evaluation data shall be submitted by it with the authorization to the contracting officer.

§ 3-4.1004-5 Procedure for procurements estimated not to exceed $10,000.

Either one of the procedures set forth in paragraphs (a) and (b) of § 14.1004-5 of this title may be used instead of the procedures prescribed in §§ 1-4.1004-2 (b) and (c) of this title 34.1004-2(c), and 3-4.1004-4 for procurements estimated not to exceed $10,000.

(a)(1)—(3) [Reserved]

(4) Upon receipt of the approving official's decision the chairman of the board shall furnish the contracting officer a copy of the report which will comply with § 1-4.1004-5(a) of this title.

§ 3-4.1005 Negotiation procedures.

§ 3-4.1005-1 General.

(a) The negotiation and award of A/ E contracts shall be performed by ROFEC's who have been delegated contracting officer authority whenever the applicable evaluation and selection actions are accomplished by their offices under § 3-4.1004-1(a) (1) and (2). Negotiation and award of A/E contracts are performed for OFEPM in Washington, D.C., by the Supply Operations Branch, OA/OAM, unless the DASFEPM, OFEPM, provides written authorization for another POC to do so. When evaluation and selection actions are performed by a principal operating component consistent with the provisions of § 3-4.10041(a) (3) and (4) the responsible contracting officer of the POC may likewise negotiate and award the related A/E engineer contracts. Qualified contracting officers shall use the services of technical, legal, audit-pricing, and other specialists in the component to the extent deemed appropriate (see §§ 1-3.801-2 and 1-3.803-3). Negotiations should be directed toward: (1)-(3) [Reserved]

(4) Reaching mutual agreement on the provisions of the contract; and

(5) Arriving at a fair and reasonable price. See § 1-3.807-2, Requirements for Cost and Price Analysis; and § 13.807-1, Overhead Rate Considerations. See § 3-3.50.301(j) regarding the documentation requirements for cost breakdown and analysis.

(b) [Reserved]

(c) The principles set forth relative to preparation for negotiation (see § 34.1005) shall apply to the negotiation of modifications to contracts.

(d) Where the modification involves work not initially included in the contract the statutory limitation is applicable, consistent with the following provisions, to the revised total estimated construction costs. Where redesign is required and the contract is modified, the following methods shall be used in determining the amount of the basic fee to be paid the architect:

(1) The estimated construction cost of the redesigned features will be added to the original estimated construction cost;

(2) The contract cost for the original design will be added to the contract for redesign; and

(3) The total contract design cost obtained by paragraph (d)(2) of this section will be divided by the total construction cost obtained by paragraph (d)(1) of this section.

§ 3-4.1005-6 Record of negotiation.

Promptly at the conclusion of each negotiation, a memorandum setting forth the principal elements of the negotiations shall be prepared by the contracting officer in accordance with the requirements of § 1-3.811, for use by the reviewing authorities and for inclusion in the contract file. The memorandum shall contain sufficient detail to reflect the significant consideration controlling the establishment of the price and other terms of the contract. Negotiation memorandums must be prepared in accordance with § 3-50.3 and meet the requirements of that subpart.

Subpart 3-4.51-Paid Advertising

SOURCE: 37 FR 15861, Aug. 5, 1972, unless otherwise noted.

§ 3-4.5100 Scope of subpart.

This subpart provides policies and procedures for the procurement of paid advertising as covered by Title 5, U.S.C. 302, Title 44, U.S.C. 321, 322, and 324, and title 7, chapter 5, section 25.2, General Accounting Office Policy and Procedures Manual for Guidance of Federal Agencies. This subpart is not applicable in those instances where specific legislation permits or requires the publishing of public notices.

[37 FR 15861, Aug. 5, 1972, as amended at 45 FR 37693, June 4, 1980]

§ 3-4.5101 Policies and procedures.

(a) The principal official responsible for procurement is authorized to publish advertisements, notices, and contract proposals in newspapers and periodicals in accordance with the requirements and conditions referenced in § 3-4.5100. Authority to purchase paid advertising must be granted in writing by the principal official responsible for procurement (not delegable). No advertisement, notice of proposal will be published prior to receipt of advanced written authority for such publication. No voucher for any such advertisement or publication will be paid unless there is presented, with the voucher, a copy of such written authority.

(b) Requests for procurement of advertising shall be accompanied by written authority to advertise or publish which sets forth justification and includes the names of newspapers or journals concerned, frequency and dates of proposed advertisements, estimated cost, and other pertinent information.

(c) Paid advertisements shall be limited to publication of essential details of grant announcements, requests for proposals and invitations for bids including those for the sale of personal property, and for the recruitment of employees.

(d) Standard form 1143, Advertising Order, shall be used for procurement and payment of paid advertising. Procedures for payment of vouchers are contained in title 7, chapter 5, section 25.2, General Accounting Office

Manual for Guidance of Federal Agencies.

[37 FR 15861, Aug. 5, 1972, as amended at 43 FR 49000, Oct. 20, 1978; 44 FR 25455, May 1, 1979; 45 FR 37693, June 4, 1980]

Subpart 3-4.54-Procurement Clearance of Audiovisual Materials and Contracts for Public Affairs Services

§ 3-4.5400 Scope of subpart.

This subpart provides for prior clearances and methods of contracting for the procurement of audiovisual materials and/or contracts for public affairs services in excess of $5,000. Chapter 1-121 of the General Administration Manual sets forth supplementary requirements for review of audiovisual materials intended for use with the public contracts for public affairs services. The term "audiovisual materials," as used in this subpart, refers not only to the completed product but also to all steps and techniques leading to the realization of the completed product. The term includes motion pictures, video tapes, slide shows, film strips, audio recordings, exhibitry, or similar materials; design, layout, preparation of scripts, filming or taping, sound recording, editing, fabrication, or other activities leading to the acquisition or creation of audiovisual materials regardless of intended use.

[42 FR 2684, Jan. 13, 1977]

§ 3-4.5401 Responsibility.

No procurement action for acquisition of audiovisual materials or the contracting for public affairs services shall be initiated without first obtaining proper clearances and approvals set forth below. The Office of the Assistant Secretary for Public Affairs, Office of the Secretary (ASPA-OS), has been designated as the office of primary responsibility for review and approval of all audiovisual materials and contracts for public affairs services. Requests for the procurement of audiovisual materials and contracts for public affairs services shall be submitted to ASPA-OS for review and approval (or disapproval).

[39 FR 9439, Mar. 11, 1974]

§ 3-4.5402 Clearance for procurement.

(a) Clearances shall apply to contracts dealing, in whole or in part, with development of audiovisual materials whether for public information, education or training purposes and to contracts for public affairs services.

(b) All requests for approval of audiovisual materials and contracts for public affairs services shall be submitted on a HEW Form 524A, Request for Audiovisual Material, or a Form 524B, Request for Public Affairs Services Contract. Requests for audiovisual material or public affairs services contract will be submitted to ASPA-OS for review and approval prior to initiating any procurement action.

(c) Each request shall include the name of the assigned project officer. Failure to assign a project officer whose experience in audiovisual materials or public affairs services is suitable to the project will constitute sufficient reason for disapproval of the project.

(d) Each request shall have been approved at the agency level by not lower than the principal public information officer, i.e., Assistant Commissioner for Public Affairs, Assistant Administrator for Information, etc., prior to submission to ASPA-OS.

(e) Requests shall be forwarded to ASPA-OS in triplicate by the approving agency level information officer. Two copies shall be returned by ASPA-OS to the agency level information officer together with (1) a memorandum of approval designating subsequent stages of the project at which ASPA-OS will review the material, or (2) a memorandum of disapproval documenting the reason for withholding approval.

(f) The approved original of the request shall be made a part of the permanent procurement file.

[37 FR 8072, Apr. 25, 1972, as amended at 39 FR 9440, Mar. 11, 1974]

§ 3-4.5403 Methods of contracting.

(a) All procurements shall be conducted on a competitive basis whenever possible. The requirement for publicizing proposed procurements by synopsis in the Commerce Business Daily, as set forth in § 1-1.1003, Feder

60-119 0-80--7