547.305-71 Shipping points.

When f.o.b. origin prices are solicited, offerors shall be required to specify their shipping point(s) by providing street address, city, county, and state applicable to each item on which an offer is submitted. Spaces shall be provided in the solicitation for inserting this information.

547.305-72 Contracting for agencies located in Alaska.

(a) Solicitations for requirements of Federal agencies located in Alaska shall solicit offers on the basis of alternate delivery terms including f.o.b. Alaskan destination basis. When the requiring agency specifically requests delivery on other than an f.o.b. Alaskan destination basis, contracting officers shall verify the validity of such requests and document the case file.

(b) When feasible, offers involving delivery in Alaska shall be solicited f.o.b. origin, f.o.b. port of exit (Seattle), and f.o.b. Alaskan destination. All offers shall be evaluated on the basis of the lowest delivered cost to the ultimate destination.

(c) Federal supply schedules should include a delivery zone providing for delivery f.o.b. named Alaska destination to the extent that these destinations are served by regularly scheduled surface transportation. Contracting officers shall request assistance from the Region 10 Transportation Office in determining Alaska destination with regularly scheduled surface transportation.

547.370 Use of appropriate delivery terms.

If the contracting officer uses only one delivery term in the solicitation, the reasons for so doing shall be documented in the contract file.

547.371 Restrictions on transportation to military installations.

(a) DOD publications entitled "Terminal Facilities Guide" list the shipping and receiving capabilities and delivery restrictions at all military installations and are updated as changes occur. Copies of the guides are distributed to the GSA regional Transportation Division.

(b) For solicitations specifying direct delivery to military installations, contracts shall include a provision specifying any applicable delivery restrictions. The contracting officer shall verify receiving capabilities or restrictions with the appropriate Transportation Division before issuing the solicitation.

PART 548-VALUE ENGINEERING

AUTHORITY: 40 U.S.C. 486(c). 548.000 Scope of Part.

Pending revision of FAR coverage on value engineering all previously prescribed GSA policies, procedures, and forms shall remain in effect with the following modifications to the GSA Form 2894 (Rev. 6-76), Value Incentive Clause (Fixed Price Supply Contract).

(a) Paragraph 1.4 references the Patent Indemnity clause shall ensure that the most recent version of the clause is used; and

(b) Paragraph 1.5 references the Federal Procurement Regulations, 41 CFR Part 1-15 shall be changed to

(a) "Administrative costs", for the purpose of this part, means those costs, other than excess costs, incurred by the Government as a result of the contractor's default. Administrative costs include but are not limited to:

(1) Salaries and fringe benefits paid to Government employees which are assigned to a work activity (e.g., reprocurement activities) as a result of the default.

(2) Preaward survey expenses incurred in qualifying reprocurement contractors;

(3) Costs incurred in printing and distributing the reprocurement solicitation.

(b) "Excess costs", for the purposes of this part, means any costs, other than administrative costs, incurred by the Government as a consequence of the contractor's default in the reprocurement of similar supplies or services or in the resulting performance of such services by the Government.

[49 FR 34019, Aug. 28, 1984]

549.402-6 Repurchase against contractor's account.

(a) After termination but prior to repurchase the contracting officer shall revalidate the original need for the supplies or services. The file shall be appropriately documented.

(b) Repurchase against a contractor's account usually shall be made on the basis of the original contract terms and conditions, including the specification, under which the contractor defaulted. If acceptable bids or offers cannot be obtained on this basis, similar supplies or services may be bought under specifications which will substantially satisfy the original requirement. Advice of counsel should be obtained before issuing a solicitation for similar supplies or services.

(c) In order to assist in protecting the Government's rights to recover excess costs, the contracting officer shall document the file to explain the circumstances surrounding any delay in repurchasing the terminated supplies or services.

549.402-7 Other damages.

(a) Under the default clause, the contracting officer may recover admin

istrative costs when deemed in the best interest of the Government.

(b) A decision to recover administrative costs must give consideration to the following:

(1) The expected cost to the Government of documenting and supporting the assessment.

(2) The amount the Government expects to recover.

(c) Documents used to support an assessment of administrative costs must be detailed and must demonstrate that the added costs incurred by the Government were a direct result of the default.

(1) To support administrative labor costs, the contracting officer should keep a log or other record of:

(i) Name, position, and organization of each employee performing work activities as a consequence of the default.

(ii) Date(s) of work and time(s) spent by each employee on the repurchase.

(iii) Description of specific tasks performed (i.e., solicitation preparation, clerical).

(iv) Hourly rate of pay (straight time or overtime).

(v) Applicable fringe benefits.

(vi) Explanation of how the time spent by the employees during the reprocurement would have been used on other projects but for the default.

(2) Documents supporting other administrative costs (i.e., travel, per diem, printing and distribution of the repurchase contract) documentation of the costs incurred may be demonstrated by travel vouchers, invoices, printing requisitions, and other appropriate evidence of expenditures.

(d) After deciding that the assessment of administrative costs is appropriate, and obtaining legal assistance under 501.670-5, the contracting officer must make a written demand on the contractor for the administrative costs incurred by the Government. The basis of calculating the costs being assessed shall be furnished to the contractor. A single demand letter may be used to recover excess costs and administrative costs. If the contractor fails to make payment, the contracting officer shall follow the

procedures in FAR Subpart 32.6 to collect the debt owed the Government.

(e) The recovery of excess and/or administrative costs does not preclude the Government from exercising other rights or remedies which it may have under the terminated contract, by statute, or at common law.

[49 FR 34019, Aug. 28 1984]

Subpart 549.5-Contract Termination Clauses

SOURCE: 51 FR 195, Jan. 3, 1986, unless otherwise noted.

549.502 Termination for convenience of the Government.

(a) The contracting officer shall insert the clause at GSAR 552.249-70, Termination for Convenience of the Government (Fixed-Price) (Short Form), in all solicitations and contracts for the acquisition and maintenance of telephone systems to be funded through the Federal Telecommunications Fund (FT) when the supply portion of the contract does not exceed $100,000. This clause should be used together with the FAR clauses at 52.249-1 and 52.249-4.

(b) The contracting officer shall insert the clause at GSAR 552.249-71, Termination for Convenience of the Government (Fixed Price), in all solicitations and contracts for the acquisition and maintenance of telephone systems to be funded through the Federal Telecommunications Fund (FT) when the supply portion of the contract exceeds $100,000. This clause should be used together with the FAR clauses at 52.249-2 and 52.249-4.

549.570 Submission of termination liability schedule.

The contracting officer shall insert the provision at GSAR 552.249-72, Submission of Termination Liability Schedule, in all solicitations for the acquisition and maintenance of telephone systems to be funded through the Federal Telecommunications Fund (FT). This provision is to be used when either the clause at GSAR 552.249-70 or the clause at GSAR 552.249-71 is used.