activity responsible for maintaining the bidders' mailing list so that such added names are recorded for future use. This bidders' mailing list will be supported by correspondence indicating "no bid", "inability to produce item but desire to be retained on the list", "requests for removal from the list", and "requests to be placed on the list for future procurement"; AFPI Form 2, "IFB Information," if applicable; and one copy of the abstract. The activity responsible

for maintaining the bidders' mailing list will:

(1) Delete, according to the provisions of § 2.204-3 of this title, companies for appropriate item, if they fail to respond.

(2) Delete companies for appropriate items if they request deletion.

(3) Retain companies who cannot bid but request retention on the list.

(4) Contact any companies not in the mechanized system and invite them to become established as potential sources. (c) [Reserved]

(d) Augmenting lists-(1) Policy. Contracting officers may add names and mailing addresses to the bidders "list." AF small business specialists may add names and addresses to those selected by the contracting officer for solicitation, and such additions will include any that may be furnished by Small Business Administration (SBA) representatives.

(2) Sources. The bidders' mailing list may be augmented in special instances on new items of procurement. The supplier so listed in advance will be requested to confirm the listing by filing Standard Form 129, "Bidder's Mailing List Application." If the supplier fails to furnish the application requested, his name may be removed from the list.

(e) Qualified products list. The bidders' mailing list will include all names of suppliers who have been placed on a Qualified Products List for the items concerned, as furnished by the Directorate of Engineering Standards, WADC, according to Subpart E, Part 2 of this title. See $2.504-7 of this title for the effect when suppliers' names appear on the list of debarred or ineligible bidders.

(f) Identification of surplus dealers. Whenever the name of a surplus dealer is placed on a bidders' mailing list, the words "Surplus Dealer" will be placed directly beneath the name of the firm. See Subpart O, Part 1053 of this chapter

for additional material concerning surplus dealers.

(g) Synopses. In addition to the operation of bidders mailing lists, the facilities of the Department of Commerce for the dissemination of synopses of proposed procurements will be used according to AF procedures to make more widely available to all business enterprises (and particularly small business concerns and concerns in labor-surplus areas) public notice of procurement information sufficiently in advance of bid closing date to insure the broadest participation of qualified suppliers.

(h) Limits on use. In connection with the use of the bidders' mailing list, it is manifestly in the Government's best interest to consider carefully the administrative costs of each purchase in relation to the dollar value of the articles or services being procured to achieve maximum economy in procurement. On all items having local supply characteristics (such as sand and gravel), bids might accordingly be solicited only in the geographic area where performance can be expected. Thus, use of the bidders' mailing list should be on a basis that will promote the development of the maximum competition commensurate with the dollar value of the purchase to be made; and the degree of use of the entire mailing list in any one will be as broad as is compatible with efficiency and economy in securing adequate competition, as required by law. (See § 1002.204-5 of this part.

[23 F.R. 1305, Mar. 1, 1958, as amended at 23 F.R. 8451, Nov. 1, 1958; 24 F.R. 5886, July 23, 1959; 24 F.R. 9810, Dec. 8, 1959] § 1002.204-5

Excessively long bidders'

mailing lists.

The administrative cost of mailing and later evaluating hundreds of IFB's is often prohibitive. Following are two procedures which may be used in relation to a specific procurement to provide a reduced bidders' mailing list.

(a) Bidders' mailing lists may be rotated, but to do so will require considerable judgment on the part of the contracting officer as to size of transaction where rotation is justifiable. The following factors must be considered in rotating the bidders' mailing list: The interests of small business concerns, the existence of surplus labor areas, the adequacy of the curtailed list, and the best interest of the Government. In those instances where the entire bidders' mail

ing list is not used, the reduced list will contain the names of sufficient small business concerns to maintain the pro rata percentage between large and small business as established by the entire list. This procedure does not preclude consideration of bids received from bidders who were originally not invited to bid.

(b) In lieu of forwarding complete bid sets in the first instance, the method known as "pre-invitation notices" may be used. Following is the procedure: (1) Accomplish AFPI Form 2 "IFB Information" (post card), (2) attach the schedule sheet of the IFB which will contain the complete item description and condensation of other essential information from IFB to provide the potential suppliers with an intelligent basis for judging whether he has an interest in the procurement and (3) mail to all potential suppliers on the bidders' mailing list. Drawings, plans, and specifications will not normally be furnished with the pre-invitation notice but will be furnished at the time the IFB is mailed. Upon receipt of the replies to such notification within the specified time established in the AFPI Form 2, bid sets will be sent to those suppliers who have indicated an interest in the procurement. It is of utmost importance that the return date of AFPI Form 2 be sufficiently in advance of the mailing date of the IFB to permit an accurate estimate of the number of bid sets required. This procedure is particularly adaptable to major purchasing activities where lengthy IFB's and long bidders' mailing lists are common and is also recommended for RFP's where the same circumstances exist.

123 F.R. 1305, Mar. 1, 1958]

§ 1002.204-52 Commodity class catalogs (commodity lists).

(a) This section provides for the issuance, maintenance, and distribution of commodity class catalogs or commodity lists.

(b) This section applies to the Directorate of Procurement and Production, Hq AMC, and AMC centers, and AMC field procurement activities assigned prime class procurement.

(c) AMC procurement activities assigned the central procurement responsibility of AF commodity classes will prepare, issue, maintain, and distribute commodity class catalogs or commodity lists. The purpose of such lists is to

provide a medium whereby potential suppliers can easily identify and select items they are capable of furnishing to the purchasing office concerned. The lists will be revised when necessary and a periodic review will be made at least semiannually to insure that the lists are up to date. AFPI Form 24, "Commodity List Data," will be distributed with the commodity class catalog for use by the potential supplier to list the items selected.

(d) Commodity class catalogs or commodity lists will meet the following requirements.

(1) A "foreword" or introductory page will set forth a general index and descriptions of classes procured by the activity and such explanatory comments necessary to help potential suppliers identify and select items. The complete address of the procuring activity will be included. The telephone number of the base and appropriate extension may be included except that individual buyers will not be listed by name.

(2) Items for which procurement responsibility has been assigned to a procuring activity other than the Air Force will generally be excluded. However, those Federal Supply Class (FSC) and Management Aggregate Codes (MAC) where AF procurement could be accomplished in cases of emergency or unusual circumstances may be indicated by an asterisk with an explanatory note on the instruction page.

(3) Nomenclature used will be consistent with that appearing in the Air Force supply catalog or Federal classification system.

(4) Nomenclature of spares and components will be excluded when such items are normally furnished by the firm producing the end item.

(5) Closely related items will be consolidated into a single listing. However, consolidation will be limited to prevent the listing of a nomenclature so general as to encourage the selection of the item by a wide range of manufacturers some of whom would not in fact make the actual item.

(6) Listing of specification numbers will be excluded to prevent the possibility of wholesale and premature requests for material of this nature by the manufacturer.

(7) References to trade names and manufacturers' names, part numbers, or model numbers will be avoided.

(8) The resultant catalog will be restricted in size to permit distribution to all interested firms. Trim size of the page will not exceed 82 by 11 inches.

(9) The use of mechanical reference numbers will be coordinated with the statistical activity in the comptroller organization.

(e) Each issuing activity will make automatic distribution of sufficient copies of each commodity class catalog or commodity lists and revisions thereto to small business specialists at air procurement districts and air procurement offices and to contractors' relations activities at AMA's, AF depots, Aeronautical Systems Center (LMPC), and Ballistic Missile Center (LBS) to facilitate servicing interested suppliers as provided in § 1002.204-1. In addition, two copies each will be sent to AMC (MC-PPC), and to the AF-MIPR liaison offices listed in AMCM 170-1, as well as other distribution required.

[24 F.R. 9810, Dec. 8, 1959]

§ 1002.204-53

to ac

Requests from foreign entities for information as quisition of production and sales rights to United States military end items.

(a) It is AF policy to assist potential foreign producers of AF military end items to identify the United States qualfied production sources. Whenever a foreign production source (either a friendly foreign government or a private entity of a friendly foreign government) requests information on the appropriate procedures to be followed in acquiring production or patent rights to an AF military end item, it is deemed essential that AF personnel provide a complete list of United States military department sources, together with addresses, expeditiously as possible.

as

(b) AF personnel initially contacted by the foreign entity will assist the inquirer in identifying each AF item by stock number and nomenclature designation. In addition, the offshore unit will determine the AF activity which has procurement responsibility of each item and advise the inquirer to write directly to the director of procurement and production of that activity.

(c) Upon receiving such requests, the appropriate AF activity within the continental United States will:

(1) Secure a complete list of United States military sources together with ad

dresses presently on record at that activity for the item involved.

(2) Send this list directly to the foreign entity and advise the foreign potential producer to contact the United States source(s) direct. This letter will be substantially as follows:

Forwarded herewith as per your request is a list of United States military sources presently on record at this activity as United States manufacturers of (item).

Inasmuch as the ultimate decision insofar as patient rights and technical assistance arrangements are concerned, rests with the owner of the patents which may be involved and the United States producers of the item, no commitment is made on behalf of the United States Government.

If further information is desired, it is requested that the attached list be utilized for contacting the United States manufacturers direct.

(3) No other information will be released to a foreign entity without the approval and coordination of the local office of the staff judge advocate.

(d) At the same time the list is forwarded, each United States producer whose name has been included on the list will be advised of the inquiry. Since the ultimate decision, insofar as patent rights and technical assistance are concerned, rests with the owner of the patents which may be involved and the United States producer(s) of the item, no position will be taken in this respect and no commitments made on behalf of the United States Government. This letter will be substantially as follows:

It is the policy of the Department of the Air Force to assist potential foreign producers of Air Force military end items to identify the United States qualified production sources.

Pursuant to this policy your company's name has been forwarded to (foreign entity's name and address) as per their request as a producer of (item description).

Inasmuch as the ultimate decision, insofar as patent rights and technical assistance arrangements are concerned, rests with the owner of the patents which may be involved and the United States producers of the item, no commitments can be or were made on behalf of the United States Government.

No further action on this matter will be taken by this activity. However, it is hoped that the Air Force has been of some assistance to you in establishing contact between your concern and a potential foreign source of (item).

(e) If a request is received from a foreign entity which contemplates production in other than a friendly country or

if the AF item is classified, the request will be referred with recommendations to Hq USAF, attn: AFMPP.

(f) The AF policy is to lend every assistance in identifying the interested parties and to aid United States private entities in processing an application to the United States Department of State or Commerce for export license or approval of a contemplated production and sales program abroad. The procedures outlined in this section afford the Department of the Air Force ample opportunity at Hq USAF to make recommendations to the Department of Defense which, after review, forwards the Department of Defense recommendations to the Department of State. The Department of State is the established and solely authorized United States Government instrumentality for final determination in respect to release of United States military end items for production and sale outside of the continental United States by foreign entities.

[24 FR. 1305, Mar. 1, 1958]

§ 1002.205 "Set-asides" for firms in labor surplus areas.

[23 F. R. 8452, Nov. 1, 1958]

§ 1002.205-1 General.

When "set-asides" are used in compliance with § 1.706 of this title and § 1001.302-4 of this chapter, the procedures set forth in this section will be applicable.

[23 F. R. 8452, Nov. 1, 1958]

§ 1002.205-2

Determination of the quantity of "set-asides.” The procuring contracting officer will be responsible for determining whether the application of a set-aside is appropriate and, if appropriate, determining the optimum quantity in connection with set-asides.

[23 F. R. 8452, Nov. 1, 1958]

§ 1002.205-3

(Insert quantity)

has been "set-aside" for subsequent negotiation exclusively with the firms who: (a) are located in areas classified by the Department of Labor as areas of substantial labor surplus; or are located in areas not so classified by the Department of Labor but submit with their bids (or proposals) a certification from the Local State Employment Office that the firm is located in an area of substantial labor surplus; (b) will perform not less than 60 percent of the dollar value of any resulting contract in an area of substantial labor surplus; and (c) have submitted a bid (or proposal) upon the items covered by this IFB (or RFP) at a unit price within 120 percent of the highest award made with respect to the items covered by this IFB (or RFP). [24 F.R. 5886, July 23, 1959]

§ 1002.206 Synopses of proposed pro

curements.

[24 F.R. 5886, July 23, 1959]

§ 1002.206-1 Statement of policy.

(a) Section 2.206-1(f) of this title will apply when the opening date is 18 days or less from date of issue.

(b) Justification referred to in § 2.2061(g) of this title will be approved by the chief or deputy chief of the buying division at Hq AMC, by the division chief or deputy division chief of the purchasing office at AMA's and AF depots, and by the chief or deputy chief of the purchasing and contracting office at all base procurement activities. This written justification will be made part of the procurement file.

[24 F.R. 5886, July 23, 1959]

§ 1002.206-2 Supply of invitation for bids and request for proposals at purchasing offices.

Based upon the judgment and experience of the purchasing office, a reasonable number of copies of each IFB and RFP that has been synopsized will be maintained by the purchasing office for supplying requests therefor. Once this supply has been exhausted, requesters I will be advised of the nearest location where a copy of such IFB or RFP is available for examination. In addition, in the case of IFB's, requesters will be advised that letter bids are acceptable according to § 1002.301 of this chapter, provided such letter bids specifically accept all the terms and conditions of the IFB and are otherwise responsive thereto

so that acceptance of such bid by the Government will result in a mutually binding contract.

[24 F.R. 5886, July 23, 1959]

§ 1002.250 Price escalation for basic steel, aluminum, brass, bronze or copper mill products.

IFB's for furnishing basic steel, aluminum, brass, bronze, or copper mill products will NOT contain a price escalation clause, except in those instances where the market condition is such that the contracting officer is certain that all bids submitted would include an escalation provision. In the latter instance only, the clause specified in § 7.106-1 of this title is authorized. For instructions as to when an award may be made on IFB's which call for price escalation, see § 1002.406-3 (e). [23 F.R. 1306, Mar. 1, 1959]

§ 1002.251 DD Form 1260, "Amendment to invitations for bids."

After issuance of IFB's, it may become necessary to make changes in quantities, specifications, delivery schedules, etc., or to correct a defective or ambiguous invitation. Such changes will be accomplished by formal amendment (DD Form 1260) to the invitation as prescribed by §§ 16.101 and 16.102 of this title and §§ 1016.101 and 1016.102 of this chapter. (a) Each amendment (DD Form 1260) will:

(1) Be serially numbered as issued with a separate series of numbers used for each invitation. For example, the first amendment to an invitation would be Amendment No. 1.

(2) Clearly indicate the nature of the changes made therein and the extension of the opening date, if any. When no extension of time is involved, the amendment will so state.

(3) Purchase Request (PR) and Military Interdepartmental Purchase Request (MIPR) numbers applicable to the IFB may be inserted in the "Purchase Authorization" block when desired.

(b) The remaining blocks of the DD Form 1260 are self-explanatory.

(c) In each case where an amendment is necessary, consideration must be given to the period of time remaining until bid opening and the need for extension of time. An amendment will not be issued when less than 10 days remain without extending the period to at least 10 days, except in case of emergency.

(1) When such emergency will not permit 10 days to intervene, the contracting officer will make a written determination that: (i) It is impracticable to extend the period to 10 days, and (ii) a period of less than 10 days will be sufficient to allow bidders to review and return the amendment prior to bid opening. This determination will be made a part of the contract file resulting from the IFB.

(2) If changes to the invitation involve additional work by the bidders or duplication of bid preparation already accomplished, a longer period of time should be allowed whenever practicable.

(d) In the event of a short period of time remaining before bid opening, bidders should be notified of the changes and extension of time to the invitation by telegraphic or telephonic means to insure notification and to preclude bidders departing for the place of bid opening. Such telegraphic or telephonic notification of amendment to an invitation will be confirmed by a written amendment which will contain all of the information required by paragraphs (a) and (b) of this section. [24 F.R. 9811, Dec. 8, 1959]

§ 1002.252 Information to be furnished prospective bidders.

(a) Information regarding supplies or services for which bids have been invited will be furnished on application to all potential bidders desiring it, except that information concerning classified projects will be furnished only as authorized. (For information to bidders, see § 1002.407.)

(b) The estimated cost of the supplies included in an invitation will neither be furnished to prospective bidders nor will such information be shown on any copy of the invitation.

(c) Except on classified projects, prospective bidders will be permitted to examine the standard samples at the place where deposited, will be furnished with or allowed to examine plans and specifications of all work on which they desire to bid (a deposit may be required, if necessary) and will be furnished with any information they need to enable them to act understandingly.

[23 F.R. 1306, Mar. 1, 1958]