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(1) Cognizant contracting officer or seeks an adjustment which cannot be office. The contracting officer adminis expressed in monetary terms, then some tering the contract for which an adjust brief description of it should be inserted, ment was requested or, 1 none, the con such as “Cancellation" or "Modification tracting officer or office cognizant of the of Terms." The fact that an adjustment request should be inserted.

is not easily expressed in dollar terma (g) Procuring activity. The name of should not deter an estimate is such an the procuring activity with jurisdiction estimate is made by the contractor in his over the contracting officer or office re request. ferred to in (f) above should be inserted. (0) Date this record signed. The date

(h) Property or service involved. A on which the record is signed should be brief description of the item being pro

inserted. cured or services being rendered should (p) Signature. The record should be be inserted.

signed by an authorized representative (1) Ertent of performance as of date of the reporting authority. of request. A brief indication, as of the 8 1-17.402 Final records. date of the request, of the degree of completion of the contract should be in

Each final record prepared pursuant serted; for example, 50 percent com.

to $ 1-17.208-4 should contain the inforpleted, or performance not yet begun.

mation listed in (b) through (p) of If work is completed, indicate date of

$ 1-17.401 and, in addition, should con.. completion and whether final payment

tain the following information: has been made.

(a) Type of record. The fact that the (1) Contract number and date. The

record is a final record should be identifying numbers and dates of the

indicated. contracts for which an adjustment is

(b) Action below secretarial level. requested should be inserted. If there The disposition of the case, the office is no contract, then the word “None"

which took action, and the date thereof should be inserted. If the question

should be inserted. The disposition arises under a letter of intent, then that

should be indicated as: "withdrawn," fact and the date of such letter should

"denied," "approved," or "forwarded." be inserted.

If the request was approved in whole or (k) Advertised or negotiated. Whether

in part, the dollar amount or nature of the contract was entered into pursuant

the action should be indicated in a man. to advertising or negotiation should be

ner similar to that described in $ 1-17.401 indicated. If negotiated, the specific au

(n). Where the request is denied or thority should be indicated, e.g., "Neg. approved, the date should correspond to 302(c) (14) of FPAS Act" (Federal Prop the date of the Memorandum of Deerty and Administrative Services Act of cision issued accordance with 1949).

$ 1-17-208–3. (1) Type of contract. The type of (c) Action at secretarial level. The contract involved (see Subpart 1-3.4) disposition of the case at secretarial level should be inserted, eg., "FFP" (firm

and the date thereof should be indicated fixed price), "CPFF (cost-plus-a-fixed. fee), or T&M” (time and materials).

in a manner similar to that described

in | 1-17.402(b). (m) Category of case. Whether the request involves an amendment without

(d) Implementation and date. The consideration, a mistake, or an informal

nature of the contractual document or commitment should be indicated If

correspondence which implements the the case involves two or more categories,

decision of the approving authority each should be indicated; however, the

should be indicated as follows: "amend. most significant category involved should

ment," "new contract," or "letter of be listed first.

denial." (n) Amount or description of request. § 1-17.403 Sample format for prelim If the request is expressed in dollars, as inary and final recorde & change in price, then that fact should The following is a suggested format for be inserted as follows: "$5.250 increase the preliminary and final records de. or "$5,250 decrease." I the request scribed in 11-17.401 and 1-17.492

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sions prescribed by ste President for all or potential cost to the United States

Describe the property of services in:

tome, and under regulations prescribed by Swident, there may be omitted any in. teaten the disclosure of which would

termettal to the national security. President may authorize any department or wency of the Government which exercises

Boston 8024c) (13) amended by Public

1 tutions in connection with the national

Soc. 2. Nothing in this Act shall be construed to constitute authorization hereun

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(b) T retary o lished i ports 82

Sec. during Congres after th earlier t lution,

& 1-17.

of

(6) The use of the cost-plus-a-percenture-of-cost system of contracting;

(b) Any contract in violation of existing
ay relating to limitation of profits;

(c) The negotiation of purchases of or
contracts for property or services required by
su to be procured by formal advertising and
mpetitive bidding;
(d) The waiver of any bid, payment, per-
france, or other bond required by law;

4) The amendment of a contract nego-
ated under section 2304(a) (15), title 10,
3) of the Federal Property and Adminis-
Inited States Code, or under section 302(c)
ative Services Act of 1949, as amended (63
Sat, 377, 394), to increase the contract price
o an amount higher than the lowest re-
eted bid of any responsible bidder; or

1) The formalization of an informal mmitment, unless It is found that at the the commitment was made it was impracticable to use normal procurement pro

The E

AUTHOR

Το Ε
THORI:
DETEN
LATION
AUTHC

Sac. 3. (8) All actions under the author-
To this Act shall be made a matter of
pite record under regulations prescribed

y the President and when deemed by him
** to be detrimental to the national se-

BY DIE by the hereinaf of the existing Proclam and dee: the nat as follor

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regard

6) All contracts entered into, amended,

Under 1 modified pursuant to authority con

uniform med in this Act shall include a clause to

be presc Select that the Comptroller General of

of Defec - United States or any of his duly au

1. The izzed representatives shall, until the ex

ized, wi pation of three years after final payment,

propriat De nocess to and the right to examine any

providec breedy pertinent books, documents, papers,

and int of records of the contractor or any of his

contract Theontractors engaged in the performance fund involving transactions related to such

to make matracts or subcontracts.

the ma it. 4. (a) Every department and agency

modifica Se under authority of this Act shall,

Judgme - March 15 of each year, report to Congress

Secretar u such actions taken by that department Navy o lency during the preceding calendar

or the c R. With respect to actions which involve

such se facilitat

2. Th the Na may exe and, in tion, m other o of thel: conter omcers delegat respecti vided,

1. tbcess of $50,000, the report shall-
11) Name the contractor;
A state the actual cost or estimated po

cost Involved;

Blata further the circumstances
partlaying the action taken.

respect to (1). (2), (3), and (4),

Sutopart 1-175Ad and becutive setense in

Order 3 L-17509 Scope of apart

protection of the Government, to enter

centrsets or into smendments or modis This subpart seta forth in full the

tons of contracts heretofore ce bereits feet and tie Executive Order.

made and to make advance pa

szereen without regard to other promised 31-17.501 The Art of August 28, 1953

of Is* reisting to the making performeer Pablie Law 85-804; 50 U.S.C.

amendment, or modification of contract
whenever be deems that such sction de

facilitate the national defense. The The Act is as follows:

thority conferred by this section shall not be Best cascted by the Senate and House of

utilized to obligate the United States : Regresentatie of the United States of

amount in excess of $50,000 without Amala in Congress assembled, That the

proval by an oficial at or above the lere
of an Assistant Secretary or his Deputs.
an assistant head or his deputy, of one
department or agency, or by a Contract 4

justment Board established therein.
766

1431-1435).

shall a States

Lun 16-400 to read 302(c) (14).

"A of Sept.

767

SEC. 2. Nothing in this Act shall be con (b) The Clerk of the House and the Secstrued to constitute authorization hereun retary of the Senate shall cause to be pubder for

lished in the Congressional Record all re(a) The use of the cost-plus-a-percent ports submitted pursuant to this section age-of-cost system of contracting;

SEC. 6. This Act shall be effective only (b) Any contract in violation of existing during a national emergency declared by law relating to limitation of profits;

Congress or the President and for six months (c) The negotiation of purchases of or after the termination thereof or until such contracts for property or services required by earlier time as Congress, by concurrent resolaw to be procured by formal advertising and lution, may designate. competitive bidding;

(d) The waiver of any bid, payment, per & 1-17.502 Executive Order No. 10789 formance, or other bond required by law; of November 14, 1958."

(e) The amendment of a contract negotiated under section 2304(a) (15), title 10,

The Executive Order is as follows: (13)1 of the Federal Property and Adminis AUTHORIZING AGENCIES OF THE GOVERNMENT United States Code, or under section 302(c) TO EXERCISE CERTAIN CONTRACTING AUtrative Services Act of 1949, as amended (63 THORITY IN CONNECTION WITH NATIONAL Stat. 377, 394), to increase the contract price DEFENSE FUNCTIONS AND PRESCRIBING REGU• to an amount higher than the lowest re LATIONS GOVERNING THE EXERCISE OF SUCH jected bid of any responsible bidder; or

AUTHORITY (1) The formalization of an informal

By virtue of the authority vested in mo commitment, unless it is found that at the time the commitment was made it was im

by the act of August 28, 1958, 72 Stat. 972,

hereinafter called the act, and as President practicable to use normal procurement pro

of the United States, and in view of the cedures.

existing national emergency declared by Sec. 3. (a) All actions under the author

Proclamation No. 2914 of December 16, 1960. ity of this Act shall be made a matter of public record under regulations prescribed

and deeming that such action will facilitate

the national defense, it is hereby ordered by the President and when deemed by him

as follows: not to be detrimental to the national security.

PART 1-DEPARTMENT OF DEFENSE (b) All contracts entered into, amended,

Under such regulations, which shall be or modified pursuant to authority con

uniform to the extent practicable, as may tained in this Act shall include a clause to

be prescribed or approved by tho Socretary the effect that the Comptroller General of

of Defense: the United States or any of his duly au

1. The Department of Defense is author. thorized representatives shall, until the ex

ized, within the limits of the amounts appiration of three years after final payment,

propriated and the contract authorization have access to and the right to examine any

provided therefor, to enter into contracte directly pertinent books, documents, papers,

and into amendments or modifcations of and records of the contractor or any of his

contracts heretofore or hereafter made, and subcontractors engaged in the performance

to make advance payments thereon, without of and involving transactions related to such

regard to the provisions of law relating to contracts or subcontracts.

the making, performance, amendment, or Sec. 4. (a) Every department and agency modification of contracts, whenever, in tho acting under authority of this Act shall, judgment of the Secretary of Defense, tho by March 15 of each year, report to Congress Secretary of the Army, the Secretary of tho all such actions taken by that department Navy or the Secretary of the Air Forco or agency during the preceding calendar or the duly authorized representative of any year. With respect to actions which involve such Secretary, the national defense will be actual or potential cost to the United States

facilitated thereby. in excess of $50,000, the report shall

2. The Secretaries of Defense, the Army, (1) Name the contractor;

the Navy, and the Air Force, respectively, (2) State the actual cost or estimated po

may exercise the authority herein conferred tential cost involved;

and, in their discretion and by their direc. (3) Describe the property or services In.

tion, may delegate such authority to any volved; and

other military or clvlllad omcers or omcials

of their respective departments, and may (4) State further tho circumstances

confer upon any such military or civilian justifying the action taken.

omcers or omcials the power to make further With respect to (1). (2)(3), and (4). above, and under regulations prescribed by

delegations of such authority within their the President, there may be omitted any in

respective commands or organizations: Proformation the disclosure of which would

vided, that the authority berelo conferred be detrimental to the national security.

shall not be utilized to obligate the United

States in an amount in excess of $60,000 1 Section 302(c) (13) amended by Public As amended by Executive Order No 1106) Law 85–800 to read 302(C) (14).

of September 27, 1962.

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of this warranty the Government shall have L. Subject to the limitations and regu. the right to annul this contract without has contained in paragraphs 1 to 14, inbility or, in its discretion, to deduct from there, hereof, and under any regulations contract price or consideration, or otherae praelbed by him in pursuance of the prorecover, the full amount of such commission sans of paragraph 22 hereof, the head of

11. All contracts entered into, amendal horized to perform or exercise as to his or modified pursuant to authority of the pas, independently of any Secretary rethe Comptroller General of the United States functions and authority vested by those order shall include a clause to the effect the ed to in the said paragraphs 1 to 14, all or any of his duly authorized represen Angrepbs in the Secretaries mentioned law relating to Ilmitation of profits or less begraph 21 hereof is authorized to precontracts for property or services required

by functions and authority vested with law to be procured by formal advertising and to ble agency by the provisions of

la urtent practicable, be uniform witb (e) the amendment of a contract negot. Sohary of Defense under the provisions ated under section 2304(a) (15) of title 100 thenie this order.

in paragraph 21 hereof may have to lowest rejected bid of any responsible bidder

mitment. unless the Secretary of Defense 19. deleted the Office of Civil and

without approval by an oncial at or above

en 7. There shall be no discrimination to any the Navy, or the Secretary of the Air Force, the level of an Assistant Secretary or his

to act performed hereunder against ang perses r the duly authorized representative of Deputy, or by a departmental Contract Ad

2 on the ground of race, religion, color, or se uy such Secretary, inds that at the time justment Board.

COL tional origin, and all contracts entered into

be commitment was made it was impracti3. The contracts hereby authorized to be amended, or modified hereunder shall com cable to use normal procurement procedures. am made shall include agreements of all kinds tain such nondiscrimination provision V 18. The provisions of the Walsh-Healey Act sec (whether in the form of letters of intent,

(8tat. 2038), as amended, the Davis-Bacon an

otherwise may be required by statuted purchase orders, or otherwise) for all types Executive order.

Act (49 Stat. 1011), as amended, the Cope Sta and kinds of property or services necessary, 8. No claim against the United State and Act (48 Stat. 948), as amended, and the act appropriate, or convenient for the national arising under any purchase or contract made Eight Hour Law (37 Stat. 137), as amended, cre defense, or for the invention, development under the authority of the act and this orde otherwise applicable, shall apply to con

hig or production of, or research concerning. shall be assigned except in accordance with zueta made and performed under the au res any such property or services, including, but the Assignment of Claims Act of 1940 (64 bority of this order. not limited to, aircraft, missiles, buildings. Stat. 1029), as amended.

14. Nothing herein contained shall prejvessels, arms, armament, equipment or sup

9. Advance payments shall be made bert

dice anything heretofore done under Execplies of any kind. or any portion thereof. under only upon obtaining adequate securlty

stre Order No. 9001 of December 27, 1941, or Including plans, spare parts and equipment 10. Every contract entered into

, amended secutive Order No. 10210 of February 2, therefor, materials, supplies facilities, utill or modified pursuant to this order shall cate, or any amendments or extensions

Sec ties, machinery. machine tools, and any tain a warranty by the contractor in sus seret, or the continuance in force of any

1other equipment without any restriction of

kton heretofore taken under those orders

stantially the following terms: any kind as to type, character, location, or

“The Contractor warrants that no persa bany amendments or extensions thereof. form.

or selling agency has been employed of

15. Nothing bereln contained shall prej. 4. The Department of Defense may by tained to solicit or secure this contract upon pose any other authority which the Depart

1est of Defense may have to enter into,

1agreement modify or amend or settle claims

an agreement or understanding for a com under contracts heretofore or hereafter made,

1-1 mission, percentage, brokerage, or contingent or modify contracts, and to make may make advance payments upon such

1fee. except bona-Ade employees or bona-ide trance payments. contracts of any portion of the contract

1-1 established commercial or selling agencies price, and may enter into agreements with

maintained by the Contractor for the purpose contractors or obligors modifying or releas

1of securing business. For breach or violation Ing accrued obligations of any sort including

1-1 accrued Uquidated damages or llability under surety or other bonds Amendments or

1modifications of contracts may be with or without consideration and may be utilized

1to accomplish the same things as any original

percentage, brokerage, or contingent fee." contract could have accomplished hereunder, irrespective of the time or circumstances of

1the making. or the form, or the contract amended or modified. or of the amending or modifying contract and irrespective of

1Mghts which may have accrued under the

tives shall, until the expiration of three year heren contract or the amendments or modifca

after final payment, have access to and the tions thereof.

right to examine any directly pertinent 6. Proper records of all actions taken under

books, documents, papers, and records of the the authority of the act shall be maintained

contractor or any of his subcontractors es within the Department of Defense. The

gaged in the performance of, and involving Secretaries of Defense, the Army, the Navy,

transactions related to, such contracta and the Air Force shall make such records Bubcontracts. available for public Inspection except to the 12. Nothing herein contained shall be

1extent that they, or their duly authorized construed to constitute authorization bert

1representatives, may respectively deem tho under for

ldisclosure of information therein to be dete (a) the use of the cost-plus-8-percentar

1rimental to the national security of-cost system of contracting;

16. The Department of Defense shall, by

(bany contract in violation of March 16 of each year, report to the Congress all actions taken within that department

1(c) of of a under the authority of the act during the preceding calendar year. With respect to actions which involve Actual or potential competitive bidding; cost to the United States in excess of $50,000,

1the report shall (except as the disclosure of such Information may be deemed to be detri.

1mental to the national security)—

1(a) name the contractor;

1(b) state the actual cost or estimated po

1tential cost involved;

(c) describe the property or services In. от volved; and

(d) state further the circumstances Justi. fying the action taken.

1768

Department of the Treasury.
Department of the Interior.
beartment of Agriculture.
Department of Commerce.

Jumle Energy Commission.
Legal Services Administration.
strmal Aeronautics and Space Administra-

11

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Peeral Aviation Agency.
Soussee Valley Authority.
Servernment Printing Office.

The bead of each agency named in
the governing out

peneraph 21 bereot. Such regulations shall

la segulations prescribed or approved by the

Nothing contained herein shall prej-
So any other authority which any agency

heutive Order No. 11051 of Septem

the Navy, or the Secretary of the Air Force. enter into, amend, or moduly contracts and or the duly authorized representative of to make advance payments. any such Secretary, ands that at the time 24. Nothing contained in this part shall the commitment was made it was impracti constitute authorization thereunder for the cable to use normal procurement procedures. amendment of a contract negotiated under

13. The provisions of the Walsh-Healey Act section 302 (c) (14) of the Federal Property (49 Stat. 2036), as amended, the Davis-Bacon and Administrative Services Act of 1949 (63 Act (49 Stat. 1011), as amended, the Cope Stat. 394), as amended by section 2(b) of the land Act (48 Stat. 948), as amended, and the act of August 28, 1958, 72 Stat. 966, to inEight Hour Law (37 Stat. 137), as amended, crease the contract price to an amount it otherwise applicable, shall apply to con higher than the lowest rejected bid of any tracts made and performed under the au responsible bidder. thority of this order.

DWIGHT D. EISENHOWER 14. Nothing herein contained shall prejudice anything heretofore done under Executive Order No. 9001 of December 27, 1941, or

PART 1-18-PROCUREMENT OF Executive Order No. 10210 of February 2,

CONSTRUCTION 1951, or any amendments or extensions

Sec. thereof, or the continuance in force of any 1-18.000 Scope of part. action heretofore taken under those orders or any amendments or extensions thereof.

Subpart 1-18.1-General Provisions 15. Nothing herein contained shall prej

1-18.101 Definitions. udice any other authority which the Depart 1-18.101-1 Construction, ment of Defense may have to enter into,

1-18.102 Methods of procurement. amend, or modify contracts, and to mako

1-18.102-1 General. advance payments.

1-18.103 Sources of construction services. PART 1-EXTENSION OF PROVISIONS OF

1-18.104 Subcontracting. PARAGRAPHS 1-14

1-18.105 Time of performance.

1-18.106 Minimum standards for respon. 21. Subject to the limitations and regu

sible prospective contractors lations contained in paragraphs 1 to 14, in 1-18.107 Specifications. clusive, hereof, `and under any regulations 1-18.108 Government estimates. prescribed by him in pursuance of the pro 1-18.109 Disclosure of size of construc. vistons of paragraph 22 hereof, the head of

tion projects. each of the following-named agencies 3 is 1-18.110 Liquidated damages. authorized to perform or exercise as to his 1-18.111 Concurrent firm fixed-price and agency. Independently of any Secretary re

cost-type construction con. ferred to in the sald paragraphs 1 to 14, all

tracts. the functions and authority vested by those 1-18.112 Construction contracts with do. paragraphs in the Secretaries mentioned

sign architect-engineers. therein:

1-18.113 Architect-engineer services conDepartment of the Treasury.

tracts. Department of the Interior.

1-18.114-1-18.116 (Reserved) Department of Agriculture.

1-18.117

Administration of the differing Department of Commerce.

site conditions clause. Atomic Energy Commission.

Subpart 1-18.2-Formal Advertising
General Services Administration.
National Aeronautics and Space Administra-

1-18.200 Scope of subpart. tion.

1-18.201 Types of contracts. Federal Aviation Agency.

1-18.202 Preinvitation notices. Tennessee Valley Authority.

1-18.203 Invitations for bids. Government Printing Office.

1-18.203-1 Preparation of invitations for

bids. 22. The head of each agency named in 1-18.203-2 Distribution of invitations for paragraph 21 hereof 18 authorized to pre

bids. scribe regulations governing the carrying out 1-18.203–3 Amendment of invitations for of the functions and authority vested with

bids. respect to his agency by the provisions of 1-18.204 Inspection of site and of data paragraph 21 hereof. Such regulations shall

affecting the work. to the extent practicable, be uniform with

1-18.205 Prebid conferences. the regulations prescribed or approved by the 1-18.206 Opening of bids. Secretary of Defense under the provisions 1-18.207 Cancellation of invitations for of Part I of this order.

bids. 23. Nothing contained herein shall prej 1-18.208 Award. udlce any other authority which any agency named in paragraph 21 hereof may bave to

Subpart 1-18.3—Negotiations

1-18.301 Limitation on authority to ne• Executive Order No. 11051 of Septem

gotiate contracts. ber 27. 1962. deleted the Omce of Civil and 1-18.301-1 Work in the continental United Defense Mobilization.

States.

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