The Federal Property and Administrative Services Act of 1949, as amended (41 U.S.C. 260), authorizes GSA to enter into contracts for periods not to exceed three years for the operation, maintenance, and repair of fixed building equipment in Federally owned buildings (40 U.S.C. 490(a)(14)) and contracts for periods not exceeding ten years for utility services (40 U.S.C. 481(a)(3)). Contracts for these services may be awarded for the performance periods indicated without an "Availability of Funds" clause.

537.110 Solicitation

contract clauses.

provisions

and

(a) The contracting officer shall insert the provision at 552.237-70, Qualifications of Offerors, in solicitations and contracts for building services when the contract amount is expected

to exceed the small purchase limitation.

(b) The contracting officer shall insert the clause at 552.237-71, Qualifications of Employees, in solicitations and contracts for building services when the amount is expected to exceed the small purchase limitation. Supplemental clauses may be used with the clause at 552.237-71 to outline specific requirements regarding employees who will perform work on contracts.

(c) The contracting officer shall insert the certification at 552.237-72, Certification Regarding "Quasi-Military Armed Forces," in solicitations and contracts for guard service.

program requirements. If it is necessary to identify the official responsible for preparing the report, the contracting officer may use the clause with its Alternate I. When the clause is used by IRMS the contracting officer shall use the clause with its Alternate II.

(b) The contracting officer shall insert the clause at 552.238-70, Identification of Electronic Office Equipment Providing Accessibility for the Handicapped, in solicitations and contracts awarded under the multiple award schedule program when the solicitation includes electronic office equipment.

(c) The contracting officer shall insert the clause at 552.238-74, Submission and Distribution of Authorized GSA Schedule Pricelists, in solicitations and contracts awarded under the multiple award schedule program. When GSA is not prepared to accept electronic submissions for a particular schedule, the contracting officer is authorized to modify the clause by deleting subparagraph (c)(1)(ii) and (c)(3) and modifying subparagraph (c)(1) to eliminate “(i)” and the word "and" at the end of subparagraph (i).

(d) The contracting officer shall insert the clause at 552.238-75, Identification of Energy-Efficient Office Equipment and Supplies Containing Recovered Materials or Other Environmental Attributes, in solicitations and contracts awarded for supplies under the multiple award schedule program.

(e) Contracting officers shall insert the clause at 552.238-76, Price Reductions, in all MAS solicitations and contracts.

(f) Contracting officers in the Federal Supply Service (FSS) shall insert the clause at 552.238-77, Industrial Funding Fee, in solicitations and contracts awarded under the single award schedule and multiple award schedule programs.

[56 FR 29443, June 27, 1991, as amended at 58 FR 54524, Oct. 22, 1993; 59 FR 3657, Jan. 26, 1994; 59 FR 52451, Oct. 18, 1994; 59 FR 63260, Dec. 8, 1994; 60 FR 19361, Apr. 18, 1995]

538.270 Evaluation of multiple award schedule offers.

(a) The Government will seek to obtain the offeror's best price (the best price given to the most favored cus

tomer). However, the Government recognizes that the terms and conditions of commercial sales vary and that there may be legitimate reasons why the best price is not achieved.

(b) The contracting officer will establish negotiation objectives based on a review of relevant data and determine price reasonableness.

(c) When establishing negotiation objectives and determining price reasonableness, contracting officers will compare the terms and conditions of the MAS solicitation with the terms and conditions of agreements with the offeror's commercial customers. The contracting officer will consider the following factors when determining the Government's price negotiation objec

tives:

(1) Aggregate volume of anticipated purchases;

(2) The purchase of a minimum quantity or a pattern of historic purchases;

(3) Prices taking into consideration any combination of discounts and concessions offered to commercial customers;

(4) Length of the contract period;

(5) Warranties, training and/or maintenance included in the purchase price or provided at additional cost to the product prices;

(6) Ordering and delivery practices; and

(7) Any other relevant information including differences between the MAS solicitation and commercial terms and conditions that may warrant differentials between the offer and the best prices offered to the most favored commercial customer(s). For example, if it is more expensive for an offeror to sell to the Government than to the customer who receives the offeror's best price or if the customer (e.g., dealer, distributor, OEM, other reseller) who receives the best price performs certain value-added functions for the offeror that the Government does not perform, then some reduction in the discount given to the Government may be appropriate. In cases where the best price is not offered to the Government, the contracting officer should ask the offeror to identify and explain the reason for any differences. Offerors shall not be required to provide detailed cost breakdowns.

(c) The contracting officer may award a contract containing pricing which is less favorable than the best price the offeror extends to any commercial customer for similar purchases, when the contracting officer makes a determination that:

(1) The prices offered to the Government are fair and reasonable even though comparable discounts were not negotiated, and

(2) Award of a contract is otherwise in the best interest of the Government. [62 FR 44523, Aug. 21, 1997]

538.271 MAS contract awards.

(a) MAS awards will be for commercial items as defined in FAR 2.101. Contracts will be negotiated as a discount from established catalog prices.

(b) Before awarding any MAS contract, the contracting officer will determine whether offered prices are fair and reasonable in accordance with FAR subparts 15.8 and 15.9 and 48 CFR 538.270.

[61 FR 6169, Feb. 16, 1996, as amended at 62 FR 44524, Aug. 21, 1997]

538.272 MAS price reductions.

(a) Prior to the award of a MAS contract, the contracting officer and the offeror shall reach an agreement as to the customer (or category of customers), price lists, and discounts which will serve as the basis of contract award. The award document shall expressly state the price/discount relationship between the Government and the identified commercial customer which is the basis of contract award. The Price Reductions clause is in

tended to maintain this price/discount relationship (and/or term and condition relationship) between the Government and the offeror's customer or category of customers upon which the MAS contract was predicated for the contract period.

(b) During the term of the contract, any changes in discount/pricing practices by the contractor which result or will result in a less advantageous relationship between the Government and the customer or category of customers upon which the MAS contract discount/ price was predicated, shall result in a price reduction to the Government to the extent necessary to reflect the original relationship.

[59 FR 52451, Oct. 18, 1994]

PART 539-MANAGEMENT, ACQUISITION, AND USE OF INFORMATION RESOURCES [RESERVED]

PART 540-[RESERVED]

PART 541-ACQUISITION OF UTILITY SERVICES

AUTHORITY: 40 U.S.C. 486(c).

Subpart 541.4-Administration

541.401 Monthly and annual review.

Unless other procedures are established, the contracting officer shall perform or cause to be performed the reviews required by FAR 41.401.

[60 FR 54956, Oct. 27, 1995]

performed by qualified personnel and in an effective manner.

(b) Contract administration may be performed by the contracting officer who awarded the contract or by an administrative contracting officer (ACO) within the contracting office. As an alternative, management may establish a separate contract administration office (CAO) consistent with the nature and complexities of the contracts, the need to perform contract administration at or near the contractor's facility or the place of performance, and the availability of resources.

(c) The contracting officer may designate one or more representatives to perform specified functions such as quality assurance, production, price analysis, finance and various engineering and technical specialities. These representatives may not enter into or modify a contract or otherwise perform functions reserved for a contracting officer except to the limited extent permitted for construction contracts. (See 542.201.2(d).) Designations of ACOS and contracting officers representatives must be in writing and communicated to the contractor.

542.201 Definitions.

Assignment of contract administration means that process whereby identified functions, duties, or responsibilities related to the administration of contracts are assigned to a CAO or an ACO within a contracting office.

Contract administration means the performance of actions after contract award that the Government takes to obtain compliance with contract requirements, including timely delivery of supplies or services, acceptance, payment, and closing of the contract. These actions include technical, financial, audit, legal, administrative, and managerial services in support of the contracting officer. It may include additional tasks requested or needed by the contracting activity including support in the pre-award phase of contracting.

Contracting Officer's Representative (COR), Contracting Officer's Technical

(a) The contracting officer may delegate to an ACO functions not listed in FAR 42.302 and 542.302(b) provided that: (1) The requirements of FAR 42.202(c) are met and,

(2) The Associate Administrator for Acquisition Policy approves the additional delegation. Requests for additional delegations must be submitted through the appropriate Central Office Service Commissioner or Assistant Administrator of the appropriate service or staff office to the Office of Acquisition Policy. If a service/office is providing contracting support for another service/office the request shall be sent to the Commissioner/Assistant Administrator of the contracting service/office. That official shall coordinate as necessary with the affected service/office.

(b) In addition to the requirements of FAR 42.202(d), the contracting officer shall provide or make available a complete copy of the contract file to the ACO.

Subpart 542.3-Contract Administration Office Functions

542.302 Contract Administration functions.

(a) Normal contract administration functions identified at FAR 42.302(a) are to be performed, to the extent they apply, either by the contracting office or an office specifically established to perform contract administration functions.

(b) The ACO or CAO shall perform the additional functions listed below

only when and to the extent specifically authorized by the contracting officer.

(1) Negotiate and issue priced or unpriced orders under indefinite delivery type contracts and basic ordering agreements.

(2) Issue change orders to modify the method of shipment, the packing requirements, the place where supplies are to be delivered, or the specifications after coordinating with the PCO (only applies to ACO's in FSS).

(3) Accept/reject requests for acceptance of nonconforming supplies after coordinating with the PCO if other than a minor nonconformance is involved (only applies to ACO's in the Federal Supply Service (FSS)).

(4) Negotiate price adjustments and execute supplemental agreements resulting from acceptances in (b)(3) of this section.

(5) Issue cure or show cause notices under FAR 49.402-3(b) after coordinating with the PCO (only applies to ACO's in FSS).

(6) Terminate individual purchase/delivery orders after coordinating with the PCO.

(7) Terminate the contract for default after coordinating with the PCO (only applies to ACO's in FSS).

(8) Assess liquidated damages. (c) Functions peculiar to specific programs may be delegated when approved by the Associate Administrator for Acquisition Policy. Requests to delegate contract administration functions not found in FAR 42.302 and 542.302(b) must be submitted to the Office of Acquisition Policy by the head of the affected Central Office service for approval.

[54 FR 26551, June 23, 1989, as amended at 58 FR 52445, Oct. 8, 1993]

Subpart 542.4-Correspondence and Visits

542.470 Implementation.

HCA's issuing implementing guidelines or procedures must obtain the concurrence of the Associate Administrator for Acquisition Policy.