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territories, Puerto Rico and Canada. Offices which may wish to let classified contracts for performance outside the United States, its territories, Puerto Rico or Canada shall consult with their appropriate security staff.

tract” subject to the procedures of this section, even though the contract document itself is unclassified.

(c) All proposed procurements shall be reviewed specifically to determine if access to classified information will be required by prospective contractors during the solicitation period or by a contractor at any time in the performance of the contract. If access to classified information will be required during the solicitation period, the security staff of the headquarters of the Administration, as designated in DOT Order 1640.4, dated 12/12/72 shall be advised immediately and furnished the list of firms to be solicited. Initiations for bid or requests for proposals shall not be issued until notification has been received from the appropriate security staff that the firms to be solicited have a valid facility security clearance. If access to classified information will not be required during the solicitation period but will be required during the performance of the contract, the invitation for bids or requests for proposals shall so state, and award shall only be made after the facility security clearance of the proposed contractor has been verified and approved by the appropriate security staff.

(d) Immediately upon the award of a classified contract, or in connection with precontract negotiations, if appropriate, the contracting officer shall furnish a copy of DD Form 254, Con tract Security Classification Specification, to the prime contractor.

(e) Any DOT contract, the performance of which will require access to classified information by the contractor or any of his employees, shall contain a security requirements clause. For classified contracts of the type cited in this regulation the Military Security Requirements clause as set forth in this regulation shall be used. Other types of classified contracts shall contain the appropriate Military Security Requirements clause of Section VII of ASPR.

(f) The Industrial Security Program encompassed by the publications cited in paragraph (a) of this section applies only to contracts involving access to classified information which are performed within the United States, its

8 12-1.353 Variation in quantity.

(a) To the extent that a variation in quantity is caused by any of the conditions specified in the Variation in Quantity clause at FPR 1-7.102-4, the varied quantity may be accepted only to the extent specified in the contract. The Extent of Quantity Variation clause in DOTPR 12-7.102-450, or a substantially similar clause, shall be used for this purpose. The acceptable variation stated in the Extent of Quantity Variation clause shall be stated as a percentage of the required quantity, and may be an increase, a decrease, or a combination of both. There should be no standard or usual percentage or variation. The variation in quantity permitted in any procurement should be based upon the normal commercial practices of the particular industry for the particular items, and the permitted percentage should be no larger than is necessary to afford a contractor reasonable protection against the conditions specified in the Variation in Quantity clause. In no event may the acceptable variation exceed plus or minus 10 percent. The clause set forth in DOTPR 12-7.102-450 may be included in the contract only when one or more of the conditions specified in the Variation in Quantity clause is foreseeable at the time of solicitation in the case of an advertised procurement, or at the time of award in the case of a negotiated procurement.

(b) Consideration shall be given to the quantity to which the percentage variation applies. For example, when it is contemplated that delivery will be made to multiple destinations and it is desired that the quantity variation extend to the item quantity for each destination, this requirement must be set forth with particularity. Similarly, when it is desired that the quantity variation extend to the total quantity of each item and not to the quantity for each destination, it may be desira

ble to express a percentage limitation ther design or engineering effort by for each destination to prevent unreal- the end item contractor in respect to istic distribution of any increase or de the component is unlikely to be recrease.


(5) Whether any problems of quality § 12-1.354 Standards of conduct.

control and realibility of the compoAll government personnel engaged nent can be resolved without requiring in procurement and related activities effort by the item contractor. shall conduct business dealings with (6) Whether breakout can be accomindustry in a manner above reproach plished without jeopardizing delivery in every respect. Transactions relating requirements of the end item. to expenditure of public funds require (c) Support parts which are to be the highest degree of public trust to stocked as separate items should be protect the interests of the Govern considered for separate procurement, ment. While many Federal laws and as should such required services as inregulations place restrictions on the stallation services or contractor-conaction of government personnel, the ducted instruction courses. Compolatter's official conduct must, in addi nent items of an equipment system tion, be such that the individual would (such as common test equipment) not be reluctant to make a full public which are to be physically separate disclosure thereof. DOT regulations from the basic equipment and which on Employee Responsibilities and Con- will require no modification or instalduct are set forth in the Department lation as an integral part of a more of Transportation regulations (49 CFR complex system or component, shall Part 99).

be procured separately unless separate

procurement is found to be not eco8 12–1.355 Breakout of component items.

nomical or practicable. (a) Consideration shall be given to the breakout of component items (in- § 12-1.356 General procurement policycluding services) of an end product for Departmental orders. separate procurement whenever the DOT policy on selected subjects repossiblility exists that such breakout lated to procurement matters is set would be both economical and practi forth in the Departmental orders concable.

tained in DOTPR Part 12-99. (b) Breakout decisions will be based largely on the degree and significance

Subpart 12-1.4-Procurement of the probable risks to quality, performance, reliability, timely delivery

Responsibility and Authority of the end item, and on the estimated overall cost savings. The following fac

8 12-1.402-50 Contracting officer's repretors should be considered in determin

sentatives. ing whether to procure component (a) A contracting officer may desigitems of an end product separately; nate Government personnel to act as

(1) In the case of sole source pro his authorized representatives for curement of the end product, whether such functions as inspection, approval there is another source capable of sup- of shop drawings, testing, approval of plying the component.

samples and other functions of a tech(2) Whether breakout will result in nical nature not involving a change in significant net cost savings.

the scope, price, terms or conditions of (3) Whether breakout would cause the contract or order. Such designaover-fragmentation of the end item, tion shall be in writing and shall conand thereby materially impede admin- tain specific instructions as to the istration and performance of the end extent to which the representative item contract and identification of the may take action for the contracting of. cause of any end item failure.

ficer, but will not contain authority to (4) Whether the design of the com sign contractual documents. The reponent (and the design of the end sponsibilities and limitations of the item insofar as it will affect the com- contracting officer's representatives ponent) is sufficiently stable that fur- may be set forth in the contract or in

Subpart 12-1.6—Debarred, Suspended, and Ineligible Bidders

a separate letter, a copy of which shall be furnished to the contractor.

(b) A person assigned to and performing his primary duty within a procurement office, and who is under the supervision of a contracting officer, does not require designation as a representative to perform his assigned duties. Such a person is considered to be an employee of the contracting officer, acting in his behalf and as such has the authority to perform acts as assigned by the contracting officer. The contracting officer cannot, with out delegating contracting officer authority, authorize his employees to sign any contract document or letter where the signature of a contracting officer is required.

8 12-1.602 Establishment and mainte

nance of a list of concerns or individuals debarred, suspended, or declared ineligible. The Federal Aviation Administration is delegated authority to compile, print, and distribute on a Departmentwide basis, the Department of Transportation Consolidated List of Debarred, Ineligible, and Suspended Contractors. Refer to Departmental Order DOT 4200.5 dated January 15, 1968, contained in DOTPR 12-99.

8 12-1.450 Responsibility of procurement

personnel to question requirements

and reaffirm their validity. (a) Procurement personnel have a responsibility to question any contemplated procurement action which appears inconsistent with their knowledge of commodities, markets, prices, and normal processes of doing business, or inconsistent with the authority of the requisitioner.

(b) When the award of a proposed procurement has been prolonged over an extended period of time or when during the processing of the procurement, matters are disclosed which give rise to questioning the magnitude of or necessity for the requirement, procurement personnel should reaffirm the validity of the requirement before award of contract.

8 12-1.604-1 Procedural requirements re

lating to the imposition of debarment. (a) Administrative debarment by the Department shall be initiated within each Administration or OST in accordance with the procedures set forth in FPR 1-1.604-1. The written notice required by FPR 1-1.604-1 shall be signed by the head of the agency. Where no hearing on the basis of either oral testimony or a written statement is requested by the concern or individual sought to be debarred, debarment may be imposed by the head of the agency and shall be applicable to the entire Department. Where a hearing is properly requested, the debarment, if any, shall be imposed by the Secretary upon recommendation of the Chairman of the Department of Transportation Contract Appeals Board (DOTCAB), and shall be similarly applicable to the entire Department.

(b) The written notice of proposed debarment to be furnished in accord. ance with FPR 1-1.604-1 shall, in addition to the requirements specified therein, apprise the concern or indi. vidual that if such party desires to present information, either in person or in writing, in opposition to such action, at a hearing, (1) a request therefor is to be made to the Chairman of the DOTCAB by that party within 20 days following receipt of the notice of the proposed debarment, and (2) the request for a hearing is to be accompanied by a statement setting forth the grounds upon which the proposed debarment will be contested. In

Subpart 12-1.5—Contingent Foos

8 12-1.508-3 Misrepresentation or viola

tions of the covenant against contingent fees. The views of the Office of the General Counsel, OST, shall be obtained prior to the referral of a case to the Department of Justice.

addition, the notice shall include a no- 1.604-1(b) for a notice of proposed detification that debarment, if imposed, barment. shall be applicable throughout the Department. The notice shall be sent by

8 12-1.605 Suspension of bidders. registered or certified mail, return re

Where a suspension is effected by ceipt requested, to the last known ad

the Department, it shall be invoked by dress of the concern or individual, but the Secretary upon recommendation where actual or personal delivery is of the General Counsel. OST. not effected by the Post Office, a debarment may be imposed by the head 8 12-1.606 Agency procedure. of the agency; but any such debar

(a) Each administration and OST, as ment shall, upon the submission of an

applicable, shall furnish the notificaappropriate application, be subject to

tions to GSA required by FPR 1reopening and in such event a hearing

1.606(c), for debarments initiated by it, shall be accorded with respect to the

and shall concurrently forward a like debarment. A copy of each such notice

copy to (1) Federal Aviation Adminisshall be sent to TAD-60.

tration, Logistics Service, Contracts (c) Hearings requested in connection

Division, Management and Services with debarment proceedings as provid

Branch, ALG-380 for inclusion on or ed in FPR 1-1.604-1(b) shall be con

removal from the Department list, and ducted before the DOTCAB. An op

(2) the Director of Installations and portunity shall be afforded the con

Logistics, OST, for information. cern or individual to appear with wit

(b) Requests for standard distribunesses and counsel to show cause why such concern or individual should not

tion and for individual copies of the be debarred. Where a concern or indi

Department Consolidated List shall be vidual requests a hearing and fails to

made to the Federal Aviation Adminisappear, the DOTCAB shall consider

tration, Logistics Service, Contracts the case on the basis of the records

Division, Procurement Management

and Services Branch, ALG-380, Washand information made available to it. In any instance where a party has re

ington, D.C. 25091. quested a hearing, he may elect to forego the submission of oral testimo Subpart 12-1.7—Small Business ny and may submit a written state

Concerns ment (together with any information relating thereto) in opposition to the 8 12-1.701-1 Small business concern (for proposed action. Hearings shall be

Government procurement). held by the DOTCAB within 30 days after receipt of the request for a hear

(a) When the solicitation is for a

manufactured product classified ing, unless the Chairman of the DOTCAB grants additional time. The

within an industry set forth in FPR 1

1.701-1(h), and small business set-aside Chairman shall include in his recommendation to the Secretary whether

procedures are utilized, a size standard or not debarment is warranted under

reading substantially as follows shall the particular

be included in the solicitation: circumstances and, where debarment is warranted, a rec The small business employment size standommended period thereof.

ard prescribed for this procurement is not (d) When debarment is imposed by

more than---l employees, except when the head of the agency, or by the Sec

the concern is a small business non-manuretary, the concern or individual shall

facturer in which case the employment size be notified of the decision and of the

standard is not more than 500 employees. period during which such debarment (b) When the solicitation is for a shall be effective. If a proposed debar- manufactured product that is not clasment is not upheld by the Secretary, sified within an industry set forth in the concern or individual shall be so FPR 1-1.701-1(h), and small business notified. Notice as to the imposition of set-aside procedures are utilized, a size a debarment shall be furnished to the concern or individual in the same 'Insert "750", "1,000", or "1,500", as apmanner as provided in DOTPR 12- propriate.

standard reading substantially as fol- signment shall in no way relieve the lows shall be included in the solicita individual from full responsibility for tion:

effectively accomplishing the activity's

small business program requirements. The small business employment size

(b) In larger offices, where practical, standard prescribed for this procurement is not more than 500 employees.

the small business specialist shall not

be the contracting officer nor an indi(c) Similar language shall be used to

vidual under the supervision of a conprescribe other size standard criteria.

tracting officer. He shall be given the

authority to exercise independent 8 12–1.704 Agency program direction and

judgment in his areas of responsibiloperation.

ity. In small offices the assignment of Each Administration of the Depart

the small business specialist should ment will establish and maintain a

promote maximum effectiveness strong and viable small business pro within the capabilities of the office. gram, designed to further the small

(c) The small business specialist apbusiness policies as set forth in FPR 1

pointed pursuant to paragraph (a) of 1.702.

this section shall perform such of the

following duties as are determined by 8 12–1.704-50 Small business assistance

the administration to be appropriate officer.

for his procurement office: Each administration, will designate (1) Maintain a program designed to an individual as the Administration's locate capable small business sources small business assistance officer. The for current and future procurements; small business assistance officer will (2) Coordinate inquiries and requests be responsible, either on a full time for advice from small business conbasis or as a collateral duty, for the es cerns on procurement matters; tablishment, implementation and exe. (3) Review proposed solicitations for cution of the small business program supplies and services, assuring that of his administration. He will be the small business concerns will be affordcentral point of contact within his ad- ed an equitable opportunity to comministration for inquiries concerning pete, and as appropriate initiating recthe small business program such as ommendations for small business setfrom industry, the Small Business Ad- asides; ministration (SBA), the Congress or (4) Take action to assure the availthe Office of the Secretary of Trans- ability of adequate specifications and portation. His duties shall include de drawings, when necessary, to obtain veloping a plan of operation to in small business participation in a procrease the share of contracts awarded curement; to small business by his Administra (5) Review proposed procurements tion.

for possible breakout of items suitable

for procurement from small business § 12--1.704-51 Small business specialists.

concerns; (a) A small business specialist shall (6) Advise small business concerns be appointed by name, in writing, for with respect to the financial assistance each procurement office, to operate on available under existing laws and regueither a full time or collateral duty lations and assist such concerns in apbasis. Only those individuals possess plying for financial assistance; ing the necessary business acumen, (7) Participate in determinations knowledge of the Department's pro- concerning the responsibility of a procurement policies and procedures, spective small business contractor; training and background to accom (8) Participate in the evaluation of a plish effectively the objectives of the prime contractor's small business subsmall business program shall be con contracting programs; sidered for appointment. In any in (9) Assure that adequate records are stance where the duty of a small busi- maintained, and accurate reports preness specialist is on a part-time basis, pared, concerning small business parthe appointment shall clearly indicate ticipation in the procurement prothat the part-time nature of the as- gram;

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