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Part 16-1 16-3 16-4 16-7 16-8 16-11 16-12 16-15 16-20

Procurement by negotiation....
Special types and methods of procurement
Contract clauses...............
Termination of contracts
Federal, State, and local taxes.
Contract cost principles and procedures
Retention requirements for contractor and sub-

contractor records..
Contract modifications.....

Page 364 369 376 380 383 384 385 386

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16-1.301 Method of procurement. 16-1.301-3 Negotiation. 16-1.302 Procurement sources. 16-1.302-1 Who may contract. 16-1.302-3 Contracts between the Govern

ment and Government employees or business concerns substantially owned

or controlled by Government employees. 16-1.303 Approval signatures. 16-1.313 Records of contract actions. 16-1.318 Disputes. 16-1.320 Subcontractor gifts and kick

backs, 16-1.323 Preference for U.S. Flag Air Car

riers. 16-1.328 Fraudulent claims. 16-1.341 Reporting Contract Actions (Fed

eral Procurement Data System).

§ 16-1.000 Scope of part.

This part describes the method by which the Office of Personnel Management (OPM) implements, supplements and deviates from the Federal Procurement Regulations (FPR) (41 CFR Chapter 1) through the establishment of the OPM Procurement Regulations (Chapter 16), which prescribe the Office procurement policies and procedures for the Federal Employees Health Benefits Program (FEHBP) contracts. Policies and procedures governing the award and administration of FEHBP contracts are contained in Part 4 of this chapter, “Special Types and Methods of Procurement.”

Subpart 16-1.4-Procurement Responsibility

and Authority

Subpart 16-1.1-Regulation System

16-1.400 Scope of subpart. 16-1.401 Responsibility of the Director,

Office of Personnel Management. 16-1.402 Authority of the FEHBP con

tracting officer. 16-1.403 Requirements to be met before

entering into contracts. 16-1.405 Ratification of unauthorized con

tract awards. 16-1.406 Cost accounting standards.

8 16-1.101 Scope of subpart.

This subpart sets forth introductory information pertaining to Chapter 16, explains its purpose, authority under which it is issued, its relationship to the FPR System, applicability, method of issuance, and arrangement.

Subpart 16-1.5—Contingent Fees

16-1.500 Scope of subpart.

to apply at a future date will be published in the FEDERAL REGISTER prior to implementation by OPM.

It also provides procedures for implementing and supplementing the FPR and Chapter 16 and sets forth devi. ation procedures. 8 16-1.102 Purpose.

Chapter 16 is prescribed by the Director, Office of Personnel Management to provide direction and uniformity in the agency's procurement of health coverage under the FEHB Program. § 16-1.103 Authority.

Chapter 16 is issued under the authority of 5 U.S.C. Chapter 89 and 40 U.S.C. 486(c).

$ 16-1.106 Issuance.

(a) Policies and procedures which are issued in this chapter will be published in the FEDERAL REGISTER as Chapter 16 of Title 41 CFR.

(b) The FEDERAL REGISTER and Title 41 CFR may be purchased by the public from the Superintendent of Documents, Government Printing Office, Washington, D.C. 20402.

§ 16-1.107 Arrangement.

8 16-1.104 Relationship of Chapter 16 to

the FPR. (a) The Federal Procurement Regulations set forth in Chapter 1, 41 CFR are applicable to contracts between the Office of Personnel Management (OPM) and health benefits plans for Federal employees and annuitants. Chapter 16 provides guidance to the contracting officer, health benefit carriers and other interested parties for implementing, supplementing and in certain instances, deviating from the FPR. Except as necessary to assure continuity or understanding, material published in the FPR will not be repeated, paraphrased, or otherwise restated in Chapter 16.

(b) Implementing material is that which expands upon related FPR material. Supplementing material is that for which there is no counterpart in the FPR.

(c) Material in Chapter 16 may supersede the FPR as when a deviation (see OPMPR 16-1.109-1) is authorized, but only when the deviation contains an explicit cross reference to the FPR.

(d) In order to make FEHBP carriers fully aware of which portions of the FPR are applicable to contracts with FEHBP, and to establish official OPM policy for internal contract evaluations, all parts of 41 CFR Chapter 1 which are deemed to have practical application to the administration of FEHBP contracts are specifically dealt with in this Chapter 16. Any portions of the FPR which, because of a change in the contracting procedure under the Program, become practical

§ 16-1.107-1 General plan.

Chapter 16 conforms with the FPR system with respect to divisional arrangements into parts, subparts, sections, subsections, and further subdivisions as necessary. § 16-1.107-2 Numbering.

(a) Generally, the numbering system used in Chapter 16 conforms to that of Chapter 1 (see FPR 1-1.007-2). Thus, a particular procurement policy or procedure is identified by the same number in both Chapter 1 and Chapter 16, except that the first number in Chapter 1 will be 1 rather than 16.

(b) Where Chapter 16 implements a part, subpart, section or subsection of the FPR, the implementing part, subpart, section or subsection of Chapter 16 is numbered to correspond to the FPR part, subpart, section or subsection, e.g., § 16-3.807-3 implements § 13.807-3 of the FPR. Paragraph and subparagraph designations of Chapter 16, however, are independently developed and do not necessarily correspond to a paragraph or subparagraph of the FPR.

(c) Where Chapter 16 supplements the FPR and thus deals with subject matter not contained in the FPR, the numbers in the group 50 through 99 are assigned to the respective supplementing parts, subparts or sections.

(d) Where the subject matter contained in the part, subpart, section or subsection of the FPR has no practical application at this time to FEHBP contracts, this Chapter 16 contains no corresponding part, subpart, section or

subsection. Thus, there are gaps in the Chapter 16 series of part, subpart, section and subsection numbers.

$ 16-1.107-3 Citation.

(a) In formal documents, such as legal briefs, citation of Chapter 16 material which has been published in the FEDERAL REGISTER will be to Title 41 CFR.

(b) Any section of Chapter 16, for purpose of brevity, may be informally identified as “OPMPR” followed by section number. For example, this paragraph would be identified in a memorandum as “OPMPR 16-1.1073(b)”.

§ 16-1.109-2 Procedure.

(a) In individual cases, when the contracting officer considers it necessary to deviate from the policies set forth in the FPR, a request for authority to do so will be submitted to the Director, Office of Personnel Management. The request will clearly set forth the circumstances warranting the deviation and the nature of the deviation.

(b) Deviations in classes of cases shall be in accordance with FPR 11.009-2(c). Class deviations will be set forth in this Chapter 16 as provided in $ 16-1.104(c).

8 16-1.107-4 Cross references.

(a) Within Chapter 16, cross references to the FPR will be made in the same manner as used within the FPR. Illustration of cross references to the FPR are:

(1) Part 1-3.
(2) Subpart 1-3.8.

(3) Section 1-3.807-50(a). The word “section” or its symbol ($) is used in making a cross reference even though the reference may be to a subsection, paragraph or subparagraph. For example, this reference is actually to a paragraph.

(b) Within Chapter 16, cross reference to parts, subparts and sections of Chapter 16 will be in a manner generally similar to that used in making references to the FPR. For example, this paragraph would be referred to as § 16-1.107-4(b).

& 16-1.150 Use of designees.

Throughout the regulations in Chapter 16, responsibilities and duties are assigned to certain individuals by position title, and, in many instances, the submission of reports to and by these individuals is also prescribed. Whenever these titles are used, the individual occupying these positions may, unless otherwise restricted by law or the regulations in 5 CFR Part 890 or this Chapter 16, designate a subordinate to act for him or her.

Subpart 16-1.2-Definition of Terms

& 16-1.250 Definitions.

Definitions pertaining to this Chapter 16 are contained in Part 16-4, "Special Types and Methods of Procurement."

Subpart 16-1.3-General Policies

8 16-1.301 Method of procurement.

§ 16-1.108 Implementation.

As portions of the FPR are prescribed, procurement policies and procedures which have practical application to the FPR will be issued in Chapter 16 by the Director, Office of Personnel Management.

8 16-1.109 Deviation.

§ 16-1.109-1 Description.

(a) The term “deviation" as used in Chapter 16 is defined in the same manner as described in FPR 1-1.009-1.

(b) In order to maintain uniformity to the greatest extent feasible, deviation from the FPR will be kept to a minimum.

8 16-1.301-3 Negotiation.

Use of formal advertising in connection with the award of FEHBP contracts is determined not to be feasible or practicable. Pub. L. 86-382, as amended and codified at 5 U.S.C. chapter 89, authorizes the negotiation of FEHBP contracts. FEHBP contracts, accordingly, will be negotiated pursuant to the provisions of FPR 13.215 and the authority in 41 U.S.C. 252(c)(15) which permits the negotiation of contracts “otherwise authorized by law.”

$ 16-1.302 Procurement sources.

8 16-1.302-1 Who may contract.

The OPM may contract with health benefits carriers for plans meeting the requirements of 5 U.S.C. Chapter 89, 5 CFR Part 890, and this Chapter 16 for the provision of health coverage.

8 16-1.302–3 Contracts between the Gov

ernment and Government employees or business concerns substantially owned or controlled by Government employ

ees. FPR 1-1.302-3 is applicable to the administration of the FEHBP contracts. Except where OPM is directed by statute to contract with Government employees.

eral Procurement Data System Sum of Contract Actions of $10,000 or Less and Subcontract Data on Selected Prime Contracts”, as appropriate, to the Administrative Services Division, Acquisition Branch, for each procurement action.

(b) Costs under FEHB contracts include those for (1) carrier's administrative expenses, (2) a service charge for carriers and (3) benefit costs. The first two categories of costs reflect the costs for operating the Program under contract and shall be reported on Standard Form 279. Benefit costs are compensation expenses of an employer/employee relationship and shall be reported by OPM as a part of its annual reports on Federal employee compensation.

(c) FEHBP contract awards take place only during the first quarter of the calendar year. Dollar values reported on Standard Form 279 shall be the amounts of such costs estimated for the coming year during the rate setting process for experience rated carriers. For community rated carriers, such costs shall be actuarily estimated as a percentage of total subscription income.

8 16-1.303 Approval signatures.

FPR 1-1.303 is applicable to the administration of the FEHBP contracts.

8 16-1.313 Records of contract actions.

FPR 1-1.313 is applicable to the administration of the FEHBP contracts.

8 16-1.318 Disputes.

FPR 1-1.318 is applicable to FEHBP contracts and a clause conforming in substance to the Disputes clause set forth in OPMPR 16-7.502-2 shall be included in all FEHBP contracts.

Subpart 16-1.4-Procurement Responsibility and Authority

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