$10,000 except (1) contracts which, including all subcontracts thereunder, are to be performed entirely outside the United States, its possessions, and Puerto Rico, and (2) contracts for services which are personal in nature.

UTILIZATION OF MINORITY BUSINESS
ENTERPRISES

(a) It is the policy of the Government that minority business enterprises shall have the maximum practicable opportunity to participate in the performance of Government contracts.

(b) The Contractor agrees to use his best efforts to carry out this policy in the award of his subcontracts to the fullest extent consistent with the efficient performance of this contract. As used in this contract, the term "minority business enterprise" means a business, at least 50 percent of which is owned by minority group members or, in case of publicly owned businesses, at least 51 percent of the stock of which is owned by minority group members. For the purposes of this definition, minority group members are Negroes, Spanish-speaking American persons, American-Orientals.

American-Indians, American-Eskimos. ano American Aleuts. Contractors may rely on written representations by subcontractors regarding their status as minority business enterprises in lieu of an independent investigation.

(b) The Minority Business Enterprises Subcontracting Program clause set forth in this § 1-1.1310-2(b) shall be included in all contracts which may exceed $500,000 which contain the clause required by $1-1.1310-2(a), and which. in the opinlon of the procuring activity. offer substantial subcontracting possibilities. Furthermore. prime contractors who are to be awarded contracts which may not exceed $500.000, but which, in the opinion of the procuring activity. offer substantial subcontracting possibilities shall be urged to accept this clause.

MINORITY BUSINESS ENTERPRISES
TRACTINO PROGRAM

SUBCON

(a) The Contractor agrees to establish and conduct a program which will enable minority business enterprises (as defined in the clause entitled "Utilization of Minority Business Enterprises") to be considered fairly as subcontractors and suppliers under this contract. In this connection, the Contractor shall

(1) Designate a liaison officer who will administer the Contractor's minority business enterprises program.

(2) Provide adequate and timely consideration of the potentialities of known minority business enterprises in all "make-orbuy" decisions.

(3) Assure that known minority business enterprises will have an equitable opportunity to compete for subcontracts, particularly by arranging solicitations, time for the preparation of bids, quantities, specifications, and delivery schedules so as to facilitate the participation of minority business enterprises.

(4) Maintain records showing (1) procedures which have been adopted to comply with the policies set forth in this clause, including the establishment of a source list of minority business enterprises, (11) awards minority business enterprises on the Source list, and (111) specific efforts to identify and award contracts to minority business enterprises.

to

(5) Include the Utilization of Minority Business Enterprises clause in subcontracts which offer substantial minority business enterprises subcontracting opportunities.

(6) Cooperate with the Contracting Offoer in any studies and surveys of the Contractor's minority business enterprises procedures and practices that the Contracting Officer may from time to time conduct.

(7) Submit periodic reports of subcontracting to known minority business enterprises with respect to the records referred to in subparagraph (4), above, in such form and manner and at such time (not more often than quarterly) as the Contracting Officer may prescribe.

(b) The Contractor further agrees to insert, in any subcontract hereunder which may exceed $500.000. provisions which shall conform substantially to the language of this clause, including this paragraph (b), and to notify the Contracting Officer of the names of such subcontractors.

[36 FR 17509, Sept. 1, 1971, as amended at 40 FR 44138, Sept. 25, 1975]

(a) This Subpart 1-1.16. developed cooperatively with the Department of Justice. prescribes procedures for submitting reports to the Attorney General in accordance with Executive Order No. 10936 of April 24. 1961 (3 CFR. 19591963 Comp., pp. 466-468), when identical bids are received in connection with the procurement of personal property or nonpersonal services (including construction).

(b) The purpose of the Executive order is to discourage identical bidding; to reduce the costs of the Government; to aid in the enforcement of the anti

As used in this Subpart 1-1.16, the following terms shall have the meanings set forth:

(a) "Identical bids" means two or more bids for the same line item which:

(1) Are identical on their face (disregarding the application of evaluation factors such as discount and transportation cost) as to unit price or total line Item amount: or

(2) Are found, in the normal process of evaluating bids for award, to be identical as to unit price or total line item amount. (Line item evaluation computations beyond those normally made to determine the low acceptable bidder are not required.)

(b) "Line item" means a procurement item (as defined in § 1-1.220) specified In an invitation for bids which, under the terms of the invitation, is susceptible to a separate contract award.

(c) "Bid value" means the dollar amount computed by multiplying the line Item quantity specified in the invitation for bids by the lowest unit price bid for the line item. Where a line item quantity is not specified in the invitation, as In the case of requirements type or indefinite quantity type contracts, the bid value of the line item is the dollar amount computed by multiplying the estimated line item quantity by the lowest unit price bid for the line item.

§ 1-1.1603 Reporting requirements. § 1-1.1603-1 Cases to be reported.

(a) A report shall be submitted by executive agencies to the Attorney General as provided in this § 1-1.1603 whenever (1) the total bid value of all line items covered by an invitation for bids issued under formal advertising procedures, or under small business restricted adver

tising procedures (see § 1-1.701-9), exceeds $10,000, and (2) identical bids have been received on at least one line item having a bid value of more than $10,000. However, a report will not be submitted where bids are received only from foreign sources in response to invitations for bids requiring delivery and performance outside the United States, its possessions, and the Commonwealth of Puerto Rico.

(b) Reports are required on reportable identical bids regardless of whether an award is made on the line item, the invitation is canceled, or some other disposition is made after bid opening. Line items on which identical bids are received are not reportable if the bid value of the line item is $10,000 or less. Likewise, line items on which no identical bids are received are not reportable. [40 FR 44138, Sept. 25, 1975]

§ 1-1.1603-2 Preparation of reports

(a) Identical bid reports shall be made on U.S. Department of Justice Form DJ1500, Identical Bid Report for Procurement (for illustration of the form, see § 1-16.903-DJ1500). Form DJ-1500 is available in pads of 100 at General Services Administration supply depots (Federal Stock No. 7540-823-7870). Instructions for filling out the form are printed on the cover of each pad of forms.

(b) All bids on each line item on which reportable identical bids are received shall be shown on the report whether or not the identical bids were the low bids. § 1-1.1603-3 Submission of reports.

(a) Identical bid reports shall be sent to the Attorney General within 20 days following the disposition of all bids received in response to the invitation for bids, whether by the awarding of one or more contracts or other action.

(b) Two completed copies of each identical bid report, together with one copy of the invitation for bids and one copy of the completed abstract of bids, shall be sent to the Attorney General, Ref. AT-IBR, Washington, D.C. 20530. When the number of line items on an invitation exceeds 100, a copy of the abstract of bids need not be furnished. In such cases, however, the identical bid report shall be annotated to indicate the number of line items and the number of bidders on the invitation.

A provision substantially as follows shall be inserted in all invitations for bids for the procurement of personal property or nonpersonal services (including construction) under either formal advertising procedures or small business restricted advertising procedures where it is estimated that the total bid value of all line items covered by the invitation may exceed $10,000: PARENT COMPANY AND EMPLOYER IDENTIFICATION NUMBER

Each bidder shall furnish the following information by filling in the appropriate blocks:

(a) Is the bidder owned or controlled by 8 parent company as described below?

(For the purpose of this bid, a parent company is defined as one which either owns or controls the activities and basic business policies of the bidder. To own another company means the parent company must own at least a majority (more than 50 percent) of the voting rights in that company. To control another company, such ownership is not required; if another company is able to formulate, determine, or veto basic business policy decisions of the bidder, such other company is considered the parent company of the bidder. This control may be exercised through the use of dominant minority voting rights, use of proxy voting. contractual arrangements, or otherwise.)

(b) If the answer to (a) above is "Yes," bidder shall insert in the space below the name and main office address of the parent company.

(Name) (Address)

(c) Bidder shall insert in the applicable space below. If he has no parent company, his own employer's identification number E.I. No.) (Federal social security number used on employer's quarterly Federal tax return, U.S. Treasury Department Form 941),

(a) If a bid does not contain the information called for by the invitation for bids provision in § 1-1.1605-1 and an identical bid report is required under § 1-1.1603-1, one inquiry shall be made of the bidder in an effort to obtain the information. If the information is not available after inquiry, the identical bid report shall be annotated so to indicate.

(b) Failure to provide information concerning employer identification number or parent company relationship shall not be considered a basis for rejection of bids.

Subpart 1-1.17 [Reserved] Subpart 1-1.18-Postaward Orientation of Contractors

SOURCE: The provisions of this Subpart 1-1.18 appear at 31 F.R. 12437, Sept. 20, 1966. unless otherwise noted.

§ 1-1.1800 Scope of subpart.

The subpart prescribes policies and procedures regarding the postaward orientation of contractors performing contracts and subcontracts for supplies and services (except construction).

(a) When it is determined after contract award that the contractor does not or may not have a clear understanding of the scope of the contract. of its technical requirements, or of the rights and obligations of the parties, postaward orientation conferences may be employed (see § 1-1.1803) in order to clarify these matters. Where less complex contracts are involved, simpler means may be used. such as a letter to the contractor (see § 1-1.1806). Postaward orientation of subcontractors also may be employed (see § 1-1.1804).

(b) However, a postaward orientation conference may not be used in substitution for affirmative preaward determinations as to a bidder's responsibility, e.g., as to his willingness and ability to comply with the equal employment opportunity requirements.

[31 F.R. 12437. Sept. 20. 1966. as amended at 36 F.R. 17421, Aug. 31, 1971]

In selecting contracts for postaward orientation, the selection should include consideration of the following factors:

(a) Nature and extent of the preaward survey and any prior discussions had with the contractor;

(b) Technical complexity of the item or service;

(c) End use of the item or service, particularly its relation to critical programs;

(d) Urgency of the delivery schedule; (e) Length of the planned production cycle;

(f) Past performance of the contractor:

(g) Procurement history of the item or service;

(h) Type and value of the contract; (1) Requirements for spare parts or related equipment;

(J) Contractor's experience with the agency's contracts, or with the item or service being procured;

(k) Extent of subcontracting; and (1) Safety precautions required for hazardous materials or operations. § 1-1.1803-2 Initial action.

(a) The need for a postaward orientation conference normally will be established by the contracting officer or the head of the office in charge of contract administration as a result of substantive review and analysis of the contract and related reports. It is desirable for interested Government personnel to hold a meeting prior to the conference to assure that an appropriate and coordinated Government position is developed regarding indicated questions and problems.

(b) An orientation conference should be held, as soon as possible after the contract award, when analysis of the contract or other information indicates that existing or potential problems may adversely affect the performance of the contract. The official who determines that a postaward orientation conference is needed should normally make all necessary arrangements to:

(1) Conduct a preliminary meeting of Government personnel;

(2) Establish the time and place of the orientation conference;

(3) Prepare an agenda or checklist;

(4) Notify all participants;

(5) Designate a conference chairman (this should be the contracting officer if he will be a participant); and

(6) Prepare a summary report of the conference, when necessary. When the contracting officer initiates the request for a conference, the arrangements referred to in this paragraph may be made by him or, at his request, by the office in charge of administration.

§ 1-1.1803-3 Agenda.

The agenda of or checklist for an orientation conference may include such matters as:

(a) Special contractual provisions; (b) Clarification of specifications and other work requirements:

(c) Production planning;

(d) Furnishing and control of Government property;

(e) Billing and payment procedures. (f) Reporting requirements;

(g) Processing of engineering changes and change orders;

(h) Quality control and testing requirements;

(i) Requirements for spare parts or related equipment;

(j) Packaging and shipping:
(k) Subcontract consent;

(1) Prime contractor responsibility for subcontracts;

(m) Allowability of cost determinations;

(n) Incentive features; (0) Security requirements; (p) Progress target dates; and (q) Major problem areas or other appropriate topics. § 1-1.1803-4

Participants.

It is essential that all parties involved in the execution, administration, and performance of a Government contract have a clear and mutual understanding of the scope of the contract, the technical requirements, and the rights and obligations of the parties. Participants in a postaward orientation conference may include, as appropriate, the contracting officer, representatives from the contracting office and from the office in charge of administration, other interested Government personnel, and the contractor's representatives.

§ 1-1.1803-5 Conference procedure.

The conference shall be conducted by the designated Government chairman.

normally the contracting officer if he is a participant. Unless a specific contract change has been agreed to by the contracting officer at the preliminary meeting of Government personnel to be in the best interest of the Government, the chairman should emphasize that the conference is not being held for the purpose of changing the contract. Where the contracting officer participates in the conference, he may make commitments or give directions within the scope of his authority and he should, to the extent necessary, reduce to writing and sign any such commitments or directions. Participants who are without authority to bind the Government contractually should not take actions which may give the contractor the impression that the provisions of the contract are being altered. However, such participants. subject to any limitations placed upon their authority, may provide information and guidance to explain existing provisions and requirements of the contract Where a summary report of the conference is to be prepared, the report should cover such matters as are set forth in § 1-1.1805.

§ 1-1.1804

Subcontract conferences.

The prime contractor is generally responsible for conducting any necessary postaward orientation conferences with subcontractors. However, in exceptional cases involving subcontracted items or services which are technically complex the prime contractor may invite the Government to participate in a conference or the Government may request the prime contractor to initiate such a conference with the subcontractor. Representatives from the Government office in charge of administration of the prime contract and subcontracts thereunder, should be included as participants. Government participants in such conferences should give due regard to the lack of contractual privity (normally none exists) between the Government and subcontractors. Accordingly, they should not make commitments, give directions, or take any actions which change or are inconsistent with the provisions of the subcontract. § 1-1.1805 Reports.

Summary reports of conferences should be prepared as provided by agency procedures Such reports should cover the significant items discussed, including areas requiring resolution, controversial

SOURCE: 40 FR 36339, Aug. 20, 1975, unless otherwise noted.

§ 1-1.2300 Scope of subpart.

This subpart prescribes policies and procedures regarding the requirements of the Clean Air Act, as amended (42 U.S.C. 1857 et seq., as amended by Pub. L. 91– 604, December 31, 1970), the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq., as amended by Pub. L. 92500, October 18, 1972), Executive Order 11738, September 10, 1973, and the related regulations of the Environmental Protection Agency (EPA) (40 CFR Part 15).

(a) Executive Order 11738 provides in section 1 that "It is the policy of the Federal Government to improve and enhance environmental quality. In furtherance of that policy, the program prescribed in this Order is instituted to assure that each Federal agency empowered to enter into contracts for the procurement of goods, materials, or services, and each Federal agency empowered to extend Federal assistance by way of grant, loan, or contract shall undertake such procurement and assistance activities in a manner that will result in effective enforcement of the Clean Air Act (hereinafter referred to as the 'Air Act') and the Federal Water Pollution Control Act (hereinafter referred to as the 'Water Act')."

(b) Except as provided in § 1-1.2302-4, no executive agency shall enter into, re