in accordance with Subpart 1-1.10, prior to placing an order(s) under an ADP Schedule contract. This requirement shall be followed notwithstanding the exemption in § 1-1.1003-2(a) (5).

(i) Synopsis shall be published sufficiently in advance of placing the order to permit potential suppliers to demonstrate their ability to satisfy the Government's requirement (See § 1-1.1003-6). When alternate sources of supply are not expected to be available, the synopsis may be in the form of a notice of intention to procure, without establishment of a solicitation package and due date. If no affirmative responses are received from potential offerors by the due date for responses to the notice, the procurement file shall be so documented and no further use of the CBD is required. If affirmative responses (other than sources available under the ADP Schedule contract) are received, or if the availability of competition is known, synopsizing of the procurement is required (see also § 1.4.1107-2).

(ii) Publication of contract award information in the CBD is not required when an order is placed against an ADP Schedule contract, whether or not after a competitive solicitation, since the scheduled contract was publicized in accordance with § 1-1.1004.

(6) If ADPE, software, or maintenance services are procured under an ADP Schedule at other than the lowest delivered price available under any ADP Schedule contract, agencies shall justify the action in conformance with §§ 10126.408-2 and 101-26.408-3 of the FPMR and shall retain the justification and supporting data or submit it to GSA if a specific delegation of procurement authority is required.

General Services Administration (8BR), Building 41, Denver Federal Center, Denver, Colorado 80225. Some of these requirements contracts specify that GSA is responsible for the allocation of the ADPE. In these cases authorization shall be obtained from General Services Administration (CDP), Washington, D.C. 20405 before placing an order against the requirements contract. Prior to acquiring from another source ADPE that is functionally similar to the ADPE on a requirements contract, the agency shall (1) document the procurement case file as to why the requirements-type contract could not be used, and (2) obtain a delegation of procurement authority from GSA if the procurement falls outside the scope of § 1-4.1103-1.

§ 1-4.1107-8 Industry review of ADP specifications.

Maximum advantage shall be taken of the latest technological advances in the ADP field to ensure that the Government's data processing requirements are met at the lowest possible overall cost. The ADP industry can perform a useful service during the early stages of the procurement process by ensuring that the specifications are clearly stated and readily understandable and that they will permit the Government to take full advantage of current ADP technology. Accordingly, an agency, at its discretion, may provide offerors/bidders a copy of the proposed specifications prior to release of the formal solicitation. Only those offerors/bidders who are scheduled to receive a copy of the solicitation under the provisions of § 1-4.1107-3 should be furnished a copy of the proposed specifications. These offerors/bidders should be given a minimum of 30 days in which to submit their written comments. The agency should evaluate the comments received and shall take such action as they determine to be appropriate. The Government's action on these comments shall be final.

§ 1-4.1107-9 Handling of late bids, proposals, modifications, and withdrawals.

(a) Late bids, modifications of bids, oi withdrawals of bids shall be handled in accordance with the procedures set forth in Subpart 1-2.3 of the FPR or Section II, Part 3 of the ASPR.

(b) Late proposals and modifications shall be handled in accordance with the provisions of §§ 1-3.802-1 or 1-3.802-2 of

If data systems specifications cannot be used to describe the user's complete requirement, other types set forth below may be used. However, to minimize limitations on competition, other types of specifications or purchase descriptions shall be used in the order of precedence as listed:

(a) Equipment performance requirements. (Also see 1-4.1107-8.);

(b) Plug-to-plug compatible purchase descriptions;

(c) Brand name or equal purchase descriptions. (Also see 1-1.307-4 and 1-1.307-5.); or

(d) Specific make and model purchase description. (This type of purchase description limits competition to the extent that its use shall be deemed a noncompetitive procurement and must justified.)

be

To enable an offeror/bidder to prepare a proposal or quotation, the solicitation shall identify all the evaluation factors that are to be considered. In addition to the mandatory requirements, desirable features shall be included where applicable. When desirable features are included in a solicitation, relative weights (expressed in dollar values, or points, or any other reasonable indicators which

describe the relative importance) shall be assigned to the features.

§ 1-4.1107-14 Use of standard clauses.

The standard clauses in § 1-4.1108 shall be inserted in solicitation documents in accordance with the instructions set forth for each clause listed. § 1-4.1107-15 Conversion rental credits. Conversion rental credits applicable to installed ADPE during the period of conversion to new equipment shall not be considered as an evaluation factor in the procurement of ADPE. Conversion rental credits are not the same as, and should not be confused with, purchase option credits. The latter, when applicable, are to be considered in the evaluation. § 1-4.1107-16 Software procurements. Agencies shall strive to obtain the following objectives:

(a) Avoid restrictive clauses that limit the use of the software to a specific computer system, installation, or organization;

(b) Incorporate a clause that will permit other Government agencies to obtain the software under the contract being negotiated;

(c) Obtain additional quantity discounts, should any other Government agency acquire the same software under the contract in question; and

(d) Ensure that the vendor is contractually obligated to support and maintain the software in subsequent years.

§ 1-4.1107-17 Procurement of supplies.

Specific purchase programs established by GSA include electronic data processing (EDP) tape, instrumentation tape (wide and intermediate band), tabulating machine cards, and marginally punched continuous forms. Instructions for ordering EDP and instrumentation tapes are in § 101-26.508 of the FPMR; for tabulating machine cards, in § 101-26.509 of the FPMR; and for marginally punched continuous forms, in § 101-26.703 of the FPMR.

§ 1-4.1107-18 Contractor leased ADPE. (a) Notwithstanding the provisions of § 1-4.1101, when leased ADPE is used on Government contract work and the total cost of leased ADPE is absorbed by the Government under a cost-reimbursement type contract, the contracting

officer shall require the contractor to include a provision in the rental contract stating that the Government will have the initial option to utilize any purchase or other benefits earned through rental payments.

(b) When leased ADPE is used on Government contract work under a costreimbursement type contract and less than 100 percent of the cost of the equipment is absorbed by the Government, the contracting officer should obtain for the Government, where possible, the right to accrued purchase credits, if the contractor elects not to exercise his purchase option. Accordingly, negotiation objectives for cost-reimbursement type contracts shall include the following when less than 100 percent of the cost of the equipment is absorbed by the

Government.

(1) The contractor should be encouraged to incorporate in his ADP equipment lease the right to assign accrued purchase credits to the Government;

(2) The contracting officer should obtain for the Government, if possible, the right of first refusal on accrued purchase credits, if the contractor elects not to exercise his purchase option; and

(3) A 60-day advance notice should be provided to the Government when the contractor proposes to terminate his ADP equipment lease if the Government has been granted rights to accrued purchase credits.

(c) If the Government has been granted rights to purchase credits in accordance with (b) above and the contractor elects not to exercise his purchase option, the ADPE shall be reported through agency or GSA reutilization channels as set forth in Subpart 10132.3 of the FPMR.

(d) If in accordance with (a) and (b) of this § 1-4.1107-18, the Government elects to exercise an option to purchase the leased ADPE, it is in the nature of a procurement. Accordingly, the applicable provisions of this subpart relating to the acquisition of ADPE would apply.

§ 1-4.1107-19 Assistance by GSA.

Assistance in any phase of the procurement process covered by this Subpart 1-4.11 shall be obtained by contacting the General Services Administration (CDP), Washington, D.C. 20405.

§ 1-4.1107-20 Sole source procurement documentation.

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The following procurement ments, clearly marked "sole source procurement," shall be forwarded to the General Services Administration (CDPD), Washington, D.C. 20405, for each sole source acquisition of ADPE if the dollar value involved is between $10,000 and $50,000:

(a) A copy of the contract; or

(b) A copy of the purchase/delivery order issued against a GSA ADP Schedule contract.

§ 1-4.1108 Standard clauses.

The following clauses shall be used as specified in solicitations and contracts for ADP.

§ 1-4.1108-1 Late bids, proposals, modifications, and withdrawals.

(a) The late bids, modifications of bids, or withdrawal of bids clause set forth in § 1-2.201 (a) (31) of the FPR or paragraph 7-2002.2 of the ASPR shall be inserted in all invitations for bids on ADPE, software, maintenance services, or supplies.

(b) The late proposals, modifications or proposals, and withdrawals of proposals clause set forth in § 1-3.802-1(a) of the FPR or paragraph 7-2002.4 of the ASPR shall be inserted in ali solicitation documents for negotiated procurements for ADPE software, maintenance services, or supplies except that the alternate clause set forth in § 1-3.802-2(b) of the FPR may be used in those instances in which overriding mitigating circumstances clearly make use of the alternate clause in the best interest of the Government; and

(1) The head of any agency or his designated representative authorizes use of the alternate clause for the individual procurement in question; and

(2) Prior specific approval is obtained from the Commissioner, Automated Data and Telecommunications Service, Washington, D.C. 20405.

§ 1-4.1108-2 Limitation of liability.

The following clause shall be used in all solicitations and contracts for ADPE, software, maintenance, and related supplies and services unless the contracting officer determines that a higher degree of protection is in the best interest of the Government.

WARRANTY EXCLUSION AND LIMITATION OF

DAMAGES

Except as expressly set forth in writing in this agreement, or except as provided in the clause entitled, "Commitments, Warranties, and Representations," if applicable, and except for the implied warranty of merchantability, there are no warranties expressed or implied. In no event will the Contractor be liable to the Government for consequential damages as defined in the Uniform Commercial Code, Section 2-715, in effect in the District of Columbia as of January 1, 1973; i.e.: Consequential damages resulting from the seller's breach include:

(a) Any loss resulting from general or particular requirements and needs of which the seller at the time of contracting had reason to know and which could not reasonably be prevented by cover or otherwise; and

(b) Injury to person or property proxi mately resulting from any breach of warranty.

(End of Clause)

§ 1-4.1108-3 Contractor representation.

The following clause shall be used in all solicitations and contracts for ADPE when the Government's requirement is set forth in the form of a data system specification and the value of the contract is expected to exceed $100,000:

CONTRACTOR REPRESENTATION

Unless the Contractor expressly states otherwise in his proposal, where functional requirements are expressly stated as part of the requirements of this solicitation, the Contractor, by responding, represents that in its opinion the system proposed is capable of meeting those requirements. However, once the functions have been demonstrated or put to use on the delivered system, Contractor responsibility under this clause ceases. In the event of any inconsistency between the detailed specifications and the functional specification contained in the solicitation, the former will control.

initial contract is awarded; and it is in the best interest of the Government to evaluate options in order to eliminate the possibility of a "buy-in," the following clause shall be inserted in solicitation documents with the data required for the clause "fill-ins" suitably highlighted:

FIXED PRICE OPTIONS

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(a) This solicitation is being conducted on the basis that the known requirements exceed the basic contract period (and/or quantity) to be awarded, but due to the unavailability of funds the option (s) cannot be exercised at the time of award of the basic contract (although there is a reasonable certainty that funds will be available thereafter to permit exercise of the options); realistic competition for the option periods (and/or quantity) is impracticable once the initial contract is awarded; and it is in the best interest of the Government to evaluate options in order to eliminate the possibility of a "buy-in." Therefore, to safeguard the integrity of the Government's evaluation and because the Government is required to procure ADPE and related items on the basis of fulfilling system specifications at the lowest overall cost, subsequent (or additional) as well as initial requirements must be satisfied on a fixed price basis. Since the systems or items to be procured under this solicitation have an expected life of months (hereafter referred to as "systems life," or "items life," as appropriate), and since lowest systems (items) life costs are synonymous with lowest overall costs, the contract resulting from this solicitation must contain options for renewals for subsequent fiscal years throughout the projected systems (items) life at fixed prices, and, if applicable, at fixed prices for all stated optional quantities of supplies or services not included in the initial requirement. Despite the foregoing, offerors are reminded that although the evaluation which will lead to contract award will be based on systems (items) life costs, the exercise of the option (s) is dependent not only on the continued existence of the requirement and the availability of funds, but also on an affirmative determination that such exercise is in the best interest of the Government. Should the offeror desire, separate charges, if any, which will incur to the Government should the latter fail to exercise the option (s) may be stated separately. Options included in offers submitted in response to this solicitation will be evaluated as follows:

(1) To be considered responsive to this solicitation, vendors must offer fixed prices for the initial contract period for the initial systems or items being procured. Fixed prices, or prices which can be finitely determined, must be quoted for each separate option renewal period and must remain in effect

throughout that period. Where optional quantities are offered, prices must be fixed or finitely determinable.

(2) Offers will be evaluated for purposes of award by adding the total price of all optional periods and, if applicable, all stated optional quantities to the total price for the initial contract period, covering the initial systems or items. These prices will be adjusted by the appropriate discount factors. Separate charges, if any, which will incur to the Government should the latter fail to exercise the options, will not be considered in the evaluation, except as stated in (3) below.

(3) An offer which is unbalanced as to prices for the basic and optional quantities may be rejected. An unbalanced offer is one which is based on prices significantly less than cost for some systems and/or items and prices which are significantly overstated for the other systems and/or items. In determining whether an offer is unbalanced as to prices, the Government will evaluate separate charges, if any, which the Government will incur for failure to exercise the options.

(b) Evaluation of options will not obligate the Government to exercise the options. Offers which do not include fixed or determinable systems (items) life prices cannot be evaluated for the total requirement and will be rejected. Offers which meet the mandatory requirements will be evaluated on the basis of lowest overall cost to the Government, including all stated options. The above notwithstanding, award will be made subject to the type of funds available. Accordingly, the following applicable provisions shall be included in any contract resulting from this solicitation:

OPTION TO EXTEND THE TERM OF
THE CONTRACT

This contract is renewable, at the option of the Government, by the Contracting Offcer giving written notice of renewal to the Contractor by the first day of each fiscal year or within 30 days after funds for that fiscal year become available, whichever date is the later; provided that the Contracting Officer shall have given preliminary notice of the Government's intention to renew at least

days before this contract is to expire. Such a preliminary notice shall not be deemed to commit the Government to renewals. If the Government exercises this option for renewal, the contract as renewed shall be deemed to include this option provision. However, the total duration of this contract, including the exercise of any options under this clause, shall not exceed

OPTION FOR INCREASED QUANTITY

The Government may increase the quantity of items called for herein by the amount stated elsewhere in this contract and at the unit prices specified therein. The Contracting Officer may exercise this option at any time within the period specified in the contract by giving written notice to the Contractor. Delivery of items added by exercise of this option shall be in accordance with the delivery schedule set forth elsewhere in this contract. (Optional: Should the Government fail to exercise this option for increased quantity, separate charges as set forth elsewhere in this contract shall incur.) (End of Clause)

§ 1-4.1108-5 Standard clauses for implementation of FIPS PUBS.

(a) Scope. The standard terminology as set forth in Subpart 101-32.13 of the FPMR shall be included in the solicitation for each Federal Information Processing Standards Publication (FIPS PUB) that is applicable to a procurement under this Subpart 1-4.11. Subpart 101-32.13 provides standard terminology for use in purchase agreements, solicitations, and offers for acquisitions of ADP equipment (ADPE), related software, services, and communications equipment to give effect to Federal Standards announced in FIPS PUBS. Subpart 101-32.13 is also applicable, where particular FIPS PUBS apply, to equipment acquired under Part 101-35 of the FPMR. FIPS PUBS are issued by the National Bureau of Standards and collectively constitute the Federal Information Processing Standards Register. FIPS PUBS are available as set forth in § 101-32.1302 of the FPMR.

(b) Applicability. The provisions of Subpart 101-32.13 are applicable to all Federal agencies unless the agencies are otherwise excepted. Waiver procedures and exceptions are prescribed in the applicable FIPS PUBS.

PART 1-5-SPECIAL AND DIRECTED SOURCES OF SUPPLY

Sec.

Subpart 1-5.1-[Reserved]

Subpart 1-5.2-[Reserved]

Subpart 1-5.3-Excess Personal Property

1-5.300 Scope of subpart. 1-5.301

Definition of excess personal prop

erty.