(c) Cancellation results from notification from the contracting officer (pursuant to a cancellation provision in the multiyear contract) to the contractor of nonavailability of funds for contract performance for any subsequent year or failure of the contracting officer to notify the contractor that funds have been made available for the succeeding year. A cancellation charge may be provided for where substantial startup costs or substantial contingent expenses are involved. In such cases, the contracting officer shall, for each year except the last, establish cancellation ceilings applicable to the remaining years subject to cancellation. Requirements with respect to cancellation and cancellation charges, if any, shall be set forth in the solicitation.

(d) Evaluation of offers in a multiyear procurement involves not only the determination of the lowest overall evaluated cost to the Government for both alternatives (the multiyear and the first-year alternatives), but also the comparison of the cost of buying the total requirement under a multiyear procurement with the estimated cost of buying the total requirement in successive independent procurements. All the factors to be considered for the various evaluations involved shall be set forth in the solicitation. The cancellation ceilings, if any, shall not be factors for evaluation.

(e) Award shall be made to that responsible offeror whose offer, conforming to the solicitation, will be most advantageous to the Government, price and other factors considered. In no event shall award be made at an unreasonable price.

(f) Cancellation effected pursuant to the "Cancellation" clause shall not be construed to terminate the contract pursuant to the "Termination" clause. If the contract is terminated for the convenience of the Government, the Government's liability shall not exceed the amount then obligated for contract performance (including any agreed-to cancellation ceiling).

Procurement under the Econ-
omy Act from or through an-
other Federal agency.
Scope.
Authorization and policy relat-
ing to placing and filling
orders.

Form of interagency agreement.
Methods of financing employed
by AEC.

Cost reimbursement standards.

Subpart 9-5.52-Procurement of Special Items 9-6.5200

Scope of subpart.

Motor vehicles.

9-5.5201

9-5.5201-1

Scope of section.

9-5.5201-2

9-5.5201-3

[Reserved]

Consolidated purchase of new

vehicles by General Services Administration.

9-5.5206-11

9-5.5206-12

9-5.5206-13

Miscellaneous items.

Aircraft.

AEC forms.

Standard, optional and other agency forms.

Steel filing cabinets.
Security cabinets.
New refrigerators.

New electric water coolers.
Rental of post office boxes.
Government license tags.

Fuels and packaged petroleum products.

Arms and ammunition.
Furniture.

[Reserved]

9-5.5206-14 Gold.

9-5.5505

Scope of subpart.
Policy.

Utilization of excess equipment

Maintenance of records.
Funding considerations.
Leasing of equipment.

AUTHORITY: The provisions of this Part 9-5 issued under sec. 161, as amended, 68 Stat. 948, 42 U.S.C. 2201; sec. 205, as amended, 63 Stat. 390, 40 U.S.C. 486.

SOURCE: The provisions of this Part 9-5 appear at 34 F.R. 15134, Sept. 27, 1969, unless otherwise noted.

§ 9-5.000 Scope.

(a) This part implements and supplements FPR Part 1-5, Special and Directed Sources of Supply.

(b) The AECPR provisions referenced below pertain to cost-type contractor procurement: §§ 9-5.300, 9-5.500, 9-5.901, 9-5.1001, 9-5.5001, 9-5.5101, 9-5.5200, 95.5400, and 9-5.5500.

Subpart 9-5.3-Excess Personal
Property

§ 9-5.300 Scope of subpart.

(a) This subpart implements and supplements the policies, procedures, and requirements in FPR Subpart 1-5.3 concerning the use of excess personal property as a source of supply.

(b) The policies, procedures, and requirements of FPR Subpart 1-5.3 shall be applied to cost-type contractors. Subpart 9-5.5-Interagency Motor Pool Vehicles and Related Services Available to Government Contractors

§ 9-5.500 Scope of subpart.

(a) This subpart implements and supplements the policies and procedures in FPR Subpart 1-5.5 that govern Federal agencies in authorizing their prime costtype contractors and cost-type subcontractors thereunder to obtain interagency motor pool vehicles and related services.

(b) The provisions of FPR Subpart 15.5 shall be followed in authorizing costtype contractors and cost-type subcontractors to utilize interagency motor pool vehicles and related services.

(c) Authorized cost-type contractors and cost-type subcontractors shall be required to submit their requests for service in accordance with the provisions of FPR 1-5.503.

Subpart 9-5.9-Use of GSA Supply
Sources by Contractors Performing
Cost-Reimbursement Type
Type Con-

It is AEC policy that cost-type contractors should meet their requirements from GSA sources of supply if these sources are made available to them, and if it is economically advantageous or otherwise in the best interest of the Government.

§ 9-5.902 Use of GSA supply sources by AEC cost-type contractors.

(a) Managers of Field Offices may authorize cost-type contractors to use General Services Administration (GSA) supply sources (1.e., items available through Federal Supply Schedule contracts and other GSA contracts and from GSA stores stock) in accordance with the requirements and procedures in FPR Subpart 1-5.9.

(b) Direct procurement by AEC, rather than by a cost-type contractor, shall be required where deemed necessary

by the Managers of Field Offices in order to carry out special requirements of appropriation acts or other applicable laws relating to particular items.

(c) Contracting officers, when reviewing the procurement systems and methods of those cost-type contractors that have been authorized to use GSA sources of supply, shall assure that provision is made for documenting the justification of procurements from commercial sources of items available from GSA sources of supply. The Director, Division of Contracts shall be informed of instances in which GSA sources of supply are not used because of the quality of the item available from GSA.

Subpart 9-5.10-Use of Excess
Aluminum

(a) The FPR clauses should not be included in a contract for the operation and management of AEC facilities. However, unless such contract otherwise provides that subcontracts will be made on terms and conditions established or approved by AEC, specific language shall be included in the prime contract to carry out the requirements of this subpart.

(b) Contracting officers shall assure that contractors are informed of their responsibilities under the provisions of FPR 1-5.10.

(c) AEC offices shall submit to the Director, Division of Contracts, copies of the reports to Stockpile Disposal Division, Property Management and Disposal Services, GSA, as provided in FPR 15.1001-1(b) and FPR 1-5.1001-2(b). Subpart 9-5.50-Use of Excess Materials From GSA Inventories

§ 9-5.5001 Use of excess materials from General Services Administration inventories.

(a) It is the policy of the AEC to comply with the provisions of the Federal Property Management Regulations Part 101-14, Strategic, Critical and Other Material, as supplemented from time to time by FPMR Bulletins.

(b) On January 30, 1963, the President approved a report submitted by the

Executive Stockpile Committee containing various recommendations covering long-range disposals of excess stockpile materials. The report provides that Federal agencies should continue to purchase their needs for surplus stockpile materials from the General Services Administration. In order to implement this policy for AEC procurement, field offices shall carefully screen the lists of excess materials to determine the extent to which AEC requirements can be filled by use of excess stockpile materials.

(c) Property Management and Disposal Service, General Services Administration, Washington, D.C. 20405, should be contacted directly for any detailed information concerning specifications, prices, and method of placing the order.

(d) For reimbursement of AEC orders, a Form 1080 will be issued by GSA, which should be executed by the AEC office concerned within 30 days from the date of issuance by GSA. AEC cost-type contractors will be billed directly by GSA for all orders submitted directly by them.

(e) Each field office shall submit a monthly report to the Division of Contracts, Headquarters, indicating the number of purchases of stockpile material by the field office and its cost-type contractors, and the quantity, grade, and market value of such material.

(f) Contracting officers shall require their cost-type contractors operating AEC facilities to screen the lists of excess materials and advise the AEC contracting office concerning their needs which can be filled from the General Services Administration inventories.

Subpart 9-5.51-Use of Government Sources of Supply

§ 9-5.5100 Scope of subpart.

This subpart sets forth procedures to be followed in making purchases from Government sources. (For the purchase of specific items, see Subpart 9-5.52, Procurement of Special Items.) § 9-5.5101 Policy.

It is AEC policy to use Government sources of supply to the fullest extent practicable, and that cost-type contractors should meet their requirements from Government sources of supply, if these sources are made available to them and if it is economically advantageous or otherwise in the best interest of the Government.

§ 9-5.5102 Use of GSA supply sources for AEC direct procurements.

(For the use of GSA supply sources by cost-type contractors, see Subpart 9-5.9.)

Items listed in Federal Supply Schedules and in Federal Supply Service stores catalogs shall be procured in accordance with FPMR 101-26.3 and 101-26.4. § 9-5.5103 Use of Government sources of supply other than GSA.

(a) Managers of Field Offices may authorize cost-type contractors to acquire materials and services directly from such Government sources of supply in accordance with the requirements of this subpart or the consent of agencies involved.

(b) Direct procurement by AEC, rather than by a cost-type contractor, shall be required where deemed necessary by the Managers of Field Offices in order to carry out special requirements of appropriation acts or other applicable laws relating to particular items.

§ 9-5.5104 Exclusive use on Government work.

Materials, supplies, and equipment procured from Government sources of supply under the procedures described herein must be used exclusively in connection with Government work except as otherwise authorized by Managers of Field Offices.

§ 9-5.5105 Department of Defense. § 9-5.5105-1 Source.

Many supply facilities and contracts of the Department of Defense are made available to AEC and its cost-type contractors. Field Offices will be notified by the Division of Contracts when such contracts and facilities are made available. Inquiries in connection with these sources may be directed to the Director, Division of Contracts. Requisitions or purchase orders shall be submitted directly to these sources, unless otherwise specified.

This section deals with orders for supplies or services placed with another Government department or agency pursuant to the authority of the Economy Act of June 30, 1932, as amended (31 U.S.C. 686), except that it does not apply to any procurement covered by the other sections or subparts of AECPR 9–5. [35 F.R. 17181, Nov. 7, 1970]

§ 9-5.5106-2 Authorization and policy relating to placing and filling orders.

(a) It is the policy of the Atomic Energy Commission not to place Government agencies in direct competition with commercial sources. Accordingly, prior to soliciting bids or proposals from commercial sources, it shall be decided whether to obtain supplies or services from Government agencies. Invitations for bids and requests for proposals shall not be sent to Government agencies. Current market prices, recent procurement prices, or prices obtained by informational bids as provided in FPR 1-1.314 may be used to ascertain whether procurement can be effected more cheaply from commercial sources.

(b) Each procuring activity, when it is in the interest of the Government to do so, may place delivery orders with any other Government department or agency for supplies or services that any such requisitioned department or agency may be in a position and willing to furnish or perform.

[35 F.R. 17181, Nov. 7, 1970]

§ 9-5.5106-3

Form of interagency

agreement. Interagency agreements may take any form which will adequately reflect the interest of the parties. The following provisions provide guidelines for the preparation of such agreements.

(a) The parties to the interagency agreement.

(b) Contract number, and modification number, if any.

(c) Scope of work.

NOTE: This may be identified by reference to the specific proposal.

(d) Period of interagency agreement and/or duration of the work.

(e) Cost estimate of the project and the amount of funds to be provided by the AEC. Include (1) the total estimated cost of the work for the period of time specified in the agreement; (2) the capital equipment, if any, approved for acquisition under the agreement; and (3) limitations, if any, on the reimbursement of costs by the AEC which are not set forth in the agreement. If the AEC participates with another agency or agencies in sponsoring a work project, the amount of the contribution to be made by each agency and the basis for distributing the costs incurred shall be specified.

(f) Method of financing to be used. (g) Standard clauses should be used as appropriate.

[35 F.R. 17182, Nov. 7, 1970]

§ 9-5.5106-4 Methods of financing employed by AEC.

(a) Reimbursement basis. AEC requires except as specified in paragraphs (b) and (c) of this section, that work to be done by other agencies shall be financed by reimbursement on the basis of current billings or progress payments. This approach avoids much of the accounting and reporting work required when other methods of financing are used.

(b) Consolidated working fund advance. A consolidated working fund advance shall be used to finance construction projects or the acquisition of goods or services to be furnished by the servicing agency within the same fiscal year in which the advance is made, only after a determination has been made in accordance with paragraph (a) of this section that the reimbursement basis is not to be used.

(c) Appropriation transfer. An appropriation transfer shall be used to finance larger construction projects or the acquisition of significant goods or services to be furnished by the servicing agency where the work will extend beyond the fiscal year in which the transfer is made, only after a determination has been made in accordance with paragraph (a) of this section that the reimbursement basis is not to be used.

[35 F.R. 17182, Nov. 7, 1970]