may deviate from the Federal Procurement Regulations (referred to herein as FPR), and sets forth policies and procedures which implement and supplement FPR (41 CFR Part 1-1).

[33 F.R. 6294, Apr. 25, 1968]

Subpart 24-1.0-Introduction

SOURCE: The provisions of this Subpart 24-1.0 appear at 33 F.R. 6294, Apr. 25, 1968, unless otherwise noted.

§ 24-1.001 Scope of subpart.

This subpart establishes the Department of Housing and Urban Development Procurement Regulations and states their relationship to the Federal Procurement Regulations System.

The Department of Housing and Urban Development Procurement Regulations (herein identified as HUDPR) are hereby established as Chapter 24 of the FPR System in order to provide a uniform policy and procedure for the procurement of personal property and nonpersonal services (including construction) by organizational units of HUD in conformity with applicable law and the FPR. § 24-1.003 Authority.

HUDPR are issued in compliance with the FPR System and are prescribed by the Assistant Secretary for Administration under section 7(d) of the Department of Housing and Urban Development Act (42 U.S.C. 3535(d)), section 205 (c) of the Federal Property and Administrative Services Act of 1949, as amended (40 U.S.C. 486 (c)), and under Secretary's Delegation (33 F.R. 4593, Mar. 15, 1968). § 24-1.004 Applicability.

The FPR and HUDPR apply to all procurement of personal property and nonpersonal services (including construction) on behalf of the Secretary of Housing and Urban Development, except as may be otherwise authorized by law. § 24-1.004-2 Relationship of HUDPR to the FPR System.

(a) HUDPR implement, supplement, and in some instances may deviate from the FPR. Except as necessary to assure continuity or understanding, FPR material will not be repeated, paraphrased, or otherwise restated in HUDPR.

(b) Implementing material is that which expands upon or indicates the

manner of compliance with related FPR material. Supplementing material is that for which there is no counterpart in the FPR.

(c) Where HUDPR contain no material implementing the FPR, the FPR alone will govern. The effective date of FPR issuances with Government-wide application will become effective throughout HUD upon the effective date cited in the particular FPR material. The effective date of HUDPR will be the date stated in the respective issuances. § 24-1.005 Exclusions.

Certain policies and procedures which come within the scope of this chapter may, nevertheless, be excluded from HUDPR. Policies and procedures which may be excluded include the following categories:

(a) Subject matter which bears a security classification, is stamped "official use only," or is of a purely internal nature.

(b) Policy or procedure which is expected to be effective for a period of less than 6 months.

(c) Policy or procedure which is being instituted on an experimental or test basis for a reasonable period.

(d) Instructional material that explains more fully matters covered in the FPR and HUDPR.

of the

rangements for publication regulations in the FEDERAL REGISTER. § 24-1.007 Arrangement.

§ 24-1.007-1 General plan.

HUDPR employ the same general plan, numbering system, and nomenclature used in the FPR and conform with FEDERAL REGISTER standards approved for the FPR.

§ 24-1.007-2 Numbering.

(a) This Chapter 24 has been allocated to HUD for implementing, supplementing, and deviating from Chapter 1 of this Title 41 CFR. The numbering system conforms to that of the FPR ($ 1-1.007-2) permitting identification of every unit. Thus, for example, in this "§ 24-1.007-2," the first two digits denote the chapter; the third the part; the fourth the subpart; the fifth and sixth the section; and the seventh the subsection.

(b) Where HUDPR implement or deviate from a part, subpart, section, or subsection of the FPR, the implementing part, subpart, section, or subsection of HUDPR will be numbered (and captioned) to correspond to the part, subpart, section, or subsection of Chapter 1 of the FPR.

(c) HUDPR which supplement the FPR will be assigned an appropriate number and title different from any assigned to a section in the FPR.

(d) Where the subject matter contained in a part, subpart, section, or subsection of the FPR requires no implementation, HUDPR will contain corresponding part, subpart, section, or subsection number and the subject matter as published in the FPR governs.

§ 24-1.007-3 Citation.

no

only from the FPR but also from HUDPR.

§ 24-1.009-2 Procedure.

In the interests of establishing and maintaining uniformity to the greatest extent feasible, deviations from the FPR or HUDPR shall be kept to a minimum and controlled as follows:

(a) In individual cases, deviations from the FPR or HUDPR may be submitted to the Assistant Secretary for Administration for his approval or other necessary or appropriate action. A supporting statement shall be submitted with the proposed deviation indicating briefly the nature of the deviation and the reason the deviation is necessary and in the best interest of the Government. The contract file shall include a copy of the request submitted and the approval. In emergency situations involving individual cases, deviation approvals may be processed by telephone and later confirmed in writing.

(b) In classes of cases, deviations from the FPR or HUDPR shall be submitted to the Assistant Secretary for Administration for his approval or other necessary or appropriate action. Requests for deviations shall be supported by statements adequate to disclose fully the nature of the deviation and the need therefor. The Assistant Secretary for Administration will consider on an expedited basis jointly with GSA requests involving the FPR unless he determines, after due consideration of the objective of uniformity and the proper responsibilities of HUD, circumstances preclude such joint effort. In such cases, the Assistant Secretary for Administration will approve such class deviations as he determines necessary and GSA will be notified. Authorized class deviations will be reflected in HUDPR.

(c) In individual cases and classes of cases, deviations from HUDPR also may be submitted to a chief officer responsible for procurement, who is hereby authorized to approve requests for such deviations. A request for such deviation shall be supported by a statement indicating briefly the nature of the deviation and the reason the deviation is necessary and in the best interest of the Government. The contract file shall include a copy of the request submitted and the approval.

(d) Except as otherwise authorized, when any deviation in a contract form provision is authorized, physical change

may not be made in the printed form but shall be made by appropriate provision in the schedule, specifications, or continuation sheet, as provided in HUD procedure.

Subpart 24-1.2-Definition of Terms

SOURCE: The provisions of this Subpart 24-1.2 appear at 33 F.R. 6295, Apr. 25, 1968, unless otherwise noted.

§ 24-1.201 Definitions.

This subpart contains definitions of terms used generally throughout HUDPR, in addition to those set forth in FPR 1-1.2. Additional definitions will be found in individual subparts of the FPR and HUDPR covering terms used in those subparts only.

(a) Department. "Department" means the Department of Housing and Urban Development.

(b) Secretary. "Secretary" means the Secretary of Housing and Urban

Development.

§ 24-1.250 Chief officer responsible for

procurement.

The Director, Office of General Services, and the Director, Contracts and Agreements Division, Office of General Services, each has been designated as a chief officer responsible for procurement. Subpart 24-1.3-General Policies

AUTHORITY: The provisions of this Subpart 24-1.3 issued under sec. 7(d) of the Department of Housing and Urban Development Act, 42 U.S.C. 3535 (d); Secretary's delegations of authority published at 33 F.R. 4593, Mar. 15, 1968, as amended at 33 F.R. 11099, Aug. 3, 1968; and at 31 F.R. 10754, Aug. 12, 1966.

SOURCE: The provisions of this Subpart 24-1.3 appear at 33 F.R. 12734, Sept. 7, 1968, unless otherwise noted.

§ 24-1.301 Methods of procurement.

(a) Procurement by formal advertising. Supplies and services shall generally be procured by formal advertising in accordance with FPR 1-2.

(b) Procurement by negotiation. Supplies and services may be procured without formal advertising in accordance with FPR 1-3.

policy of the Department that such methods of procurement be utilized to the maximum extent practicable, in accordance with applicable laws and regulations. Such procurement by the Department may be under:

(1) Section 601 of the Economy Act of June 30, 1932, as amended (31 U.S.C. 686), in accordance with regulations of the General Accounting Office;

(2) Section 502(c) (2) of the Housing Act of 1948, as amended (12 U.S.C. 1701c(b) (2)), in accordance with the Comptroller General's decision of April 10, 1951, B-102040.

(b) Sources outside the Government. Irrespective of whether the procurement of supplies or services from sources outside the Government is to be effected by formal advertising or by negotiation, competitive proposals ("bids" in the case of procurement by formal advertising, "proposals" in the case of procurement by negotiation) shall be solicited from all such qualified sources as are deemed necessary by the contracting officer to assure such full and free competition as is consistent with the procurement of the types of supplies and services necessary to meet the Department's requirements § 24-1.302-2 [Reserved] § 24-1.302-3

Contracts between the Department and Government employ

This section implements the policy and procedures set forth in FPR 1-1.310 to determine, before award, whether prospective contractors for furnishing the Department supplies or nonpersonal services (including construction) qualify as responsible.

(a) In order to qualify as responsible, when costs incurred are to be a factor in determining the amount payable under the contract, or if advance or progress payment terms are to be included, a prospective contractor must, in the opinion of the contracting officer, meet the following standard in addition to those set forth in FPR 1-1.310-5:

(1) Have an accounting system and financial controls that are adequate for proper administration of the contract. Subpart 24-1.7-Small Business Concerns

SOURCE: The provisions of this Subpart 24-1.7 appear at 33 F.R. 10725, July 27, 1968, unless otherwise noted.

Subpart 24-1.50-Novation
Agreements

AUTHORITY: The provisions of this Subpart 24-1.50 also issued under Secretary's delegations of authority published at 33 F.R. 4593, Mar 15, 1968, as amended at 33 F.R. 11099, Aug. 3, 1968; and at 31 F.R. 10754, Aug. 12, 1966.

SOURCE: The provisions of this Subpart 24-1.50 appear at 33 F.R. 12735, Sept. 7, 1968, unless otherwise noted.

§ 24-1.5000 Scope of subpart.

This subpart prescribes the policy and procedures for (a) recognition of a successor in interest to Government contracts when such interests are acquired incidental to a transfer of all assets of a contractor or part of his assets involved in the performance of the contracts; and (b) a change of name of a contractor. § 24-1.5001 Definition.

For the purpose of this subpart, the following definition applies: A novation agreement is a contractual amendment by which the Government recognizes a successor in interest to a Government contract or a change of name of a contractor. The successor in interest assumes all the obligations under the contract and the transferor guarantees the performance of the contract by the transferee. Where only a change of name is made the rights and obligations of the parties remain unaffected.

§ 24-1.5002 Agreement to recognize a successor in interest.

(a) The transfer of a Government contract is prohibited by law (41 U.S.C. 15). However, the Government may recognize a third party as the successor in interest to a Government contract when the third party's interest is incidental to the transfer of all the assets of the contractor, or all of that part of the contractor's assets involved in the performance