(b) Paid advertisements. Procurement by formal advertising does not require the use of paid advertisements in newspapers and trade journals. It is the policy of the Department that paid advertisements shall not be used as a method of soliciting bids unless particular circumstances make the use of this method clearly in the best interest of the Government. The fact that no free publicity is available as described in paragraph (a) of § 1-2.203-3 does not mean that paid advertisements are appropriate. If paid advertisements are deemed to be clearly in the best interest of the Government, they shall be contracted for in accordance with the following procedures:

(1) Posts shall issue Form FS-455 in advance of publication to purchase advertising space. The following special information and conditions shall be included on the face of Form FS-455, Form FS-455a or the specification sheets attached thereto:

(i) The advertisement to be published. (ii) A complete description of the advertisement, including type, size, arrangement, space, and publication dates.

(iii) A stipulation that the price charge shall not be higher than the commercial rate charged to private individuals, with the usual discounts.

NOTE: This does not preclude the responsibility of contracting officers to secure lower terms at special rates whenever obtainable.

(iv) A stipulation that (2) marked copies of each issue of the publication containing the advertising shall be submitted with the vendor's invoice. (If not obtainable gratis, the cost of furnishing copies of the publication, as distinct from the cost of the advertisement space, shall be included as a separate item on Form FS-455). On receipt of the vendor's invoice and the two copies of the publication for each date published, there shall be clipped from each copy the name of the publication, the date of publication and the advertisement. Each complete set of the clippings shall be permanently attached to plain sheets of bond paper. One set of clippings for each date of publication shall be attached to the original copy of Form FS455, and the other set shall be attached to the paying office copy.

(a) Standard Form 1036 (Statement and Certificate of Award) shall be used in connection with each contract made by formal advertising to evidence compliance with § 1-2.103. An original and at least one copy of Standard Form 1036 shall be prepared. The original Standard Form 1036 shall accompany and be distributed with the original of the contract. One confirmed copy of the Standard Form 1036 shall be retained in the contract file. Item 2(a) of Standard Form 1036 shall be filled in by inserting the number of prospective bidders to whom invitations for bids were distributed. In other respects, Standard Form 1036 shall be prepared as prescribed thereon, and in such details as to contain the information required by § 1-2.407-7 (b).

§ 6-2.407-8 Protests against award.

(a) While a case involving a protest before award is pending in the office of the Comptroller General, no award may be made under FPR 1-2.407-8(b) (3) without the prior approval of the Chief, Division of Supply and Transportation Management, or, in the case of overseas posts, the Principal Officer of the post. The request for approval will include complete documentation of the determination to make the award.

(b) The Chief, Division of Supply and Transportation Management, (or the Principal Officer) shall notify the Comptroller General of the intent to make the award and request advice as to the status of the case. A copy of such notice shall be given to the Contracting Officer. The Chief, Supply and Transportation Management (or the Principal Officer), shall notify the Contracting Officer of his approval or disapproval of the determination to make award.

(c) When a written protest is lodged with the Contracting Officer after award, the Contracting Officer will furnish the protestor a written explanation of the basis for the award.

Subpart 6-3.1-Use of Negotiation § 6-3.101

General requirements for negotiation outside the United States. (a) Procurement by negotiation may be effected under any of authorities and circumstances permitting negotiation in FPR 1-3.2.

(b) Formal advertising may be employed if its use is considered feasible and practicable under the conditions and circumstances of the procurement.

(c) Competitive solicitation shall be used to the maximum extent consistent with the procurement in accordance with FPR 1-3.101 (c) and (d).

(d) The authority to be cited on the Standard Form 1036 (Statement and Certificate of Award), or other document,

in all negotiated procurement shall be the applicable section of FPR 1-3.2 except that all such procurement not in excess of $2,500 shall cite the authority of FPR 1-3.203 and procurement under FPR 1-3.215 (otherwise authorized by law) shall cite as authority the applicable law authorizing negotiation.

Subpart 6-3.2-Circumstances
Permitting Negotiation

§ 6-3.210 Impracticable to secure competition by formal advertising.

(a) Application. (1) Section 321 of the Transportation Act of 1940 (49 U.S.C. 65) is not applicable to procurement outside the United States except to the U.S. portion of a shipment made to an oversea destination and to shipments between two points in the United States that pass through a foreign country.

(2) It is the policy of the Department not.to require formal advertising in connection with procurement outside the United States, when competition by formal advertising is contrary to the locally accepted method of doing business. Subpart 6-3.4-Types of Purchases § 6-3.405-3 Letter contract.

(a) Prior to the execution of a letter contract (FPR 1-3.405-3), the Chief, Division of Supply and Transportation Management, or, in the case of oversea posts, the Principal Officer of the post, shall determine in writing that no other type of contract is suitable. The determination shall establish the limit of effectiveness of the letter contract; i.e., the date by which the definitive contract will be entered into. This date shall not be more than 90 days from the date of the letter contract or the completion of 25 percent of the production of the supplies or the performance of the work called for under the contract, whichever occurs first.

(b) The maximum liability under a letter contract shall not exceed 50 percent of the total estimated contract price. Subpart 6-3.6-Small Purchases

§ 6-3.604 Imprest funds (petty cash) method.

§ 6-3.604-3 Agency responsibilities.

Regulations of the Department regarding accounting for imprest funds (operating cash advances) by posts abroad are contained in 4 FAM.

Standard Form 147 (Order-InvoiceVoucher) and Standard Form 148 (Order-Invoice-Voucher, Continuation

Sheet) shall not be used for procurement by the posts.

§ 6-3.605-50 Foreign Service Forms 455 and 455a.

(a) Prescribed forms.

Foreign Service Form 455 (Purchase Order, Receiving Report and Voucher) and Foreign Service Form 455a (Purchase Order, Receiving Report and Voucher, Continuation Sheet), provide in one set of forms a purchase or delivery order, receiving report, and public voucher, with requisite space for purchase data, and budget, accounting, and voucher payment data. These forms are prescribed for use by posts outside the United States:

(1) As a purchase order for small purchases.

(2) As a purchase order or delivery order against an established contract.

(3) As a delivery order against a blanket purchase order in accordance with section 1-3.606.

(4) As a voucher for small purchases from imprest funds when a voucher is required under regulations of the Department.

(b) Proceduure. Foreign Service Forms 455 and 455a shall be prepared as prescribed thereon whenever applicable to the procurement involved. The description of the articles of services shall comply with section 1-1.307. Regulations of the Department regarding the receiving report and public voucher portions are contained in 4 FAM 400. § 6-3.606 Blanket purchase arrange

ments.

§ 6-3.606-5 Agency implementation under FPR 1-3.606-5.

(a) Blanket purchase arrangements for open market transactions shall not exceed 6 months and the total amount shall not exceed $2,500.

(b) Blanket purchase arrangements made under existing contracts may be made for the period of the contract and are not restricted as to dollar amount except that they may not exceed any dollar limitations contained in the contract.

(c) Contracting Officers may delegate authority to subordinates and to other individuals and offices to obtain supplies and services under blanket purchase arrangements. Such delegations will be in writing and will define the scope and limitations of the authority. The designated individual or office will be instructed on the use of the blanket purchase arrangement including the method and procedures to be following in obtaining, paying and accounting for supplies. The vendor shall be informed of the individuals or offices authorized to obtain

supplies or services.

Motorized transportation equipment such as, but not limited to, automobiles, trucks, jeeps, motorcycles, and boats shall not be procured without the prior approval of the Department. Requests for approval along with justification shall be submitted to OPR/ST.

§ 6-5.5002 Mandatory source items.

Regional supply center catalogs and Departmental directives specify certain mandatory sources for such items as calendars, office machines, Foreign Service specialty items, high value items, technical and complex equipment, medical supplies and items stocked by GSA regional stores depots.

§ 6-5.5003 Procurement for other posts.

Central and constituent supply posts are authorized to procure supplies and services requested by other posts. The requesting post may obtain availability and price information from the procuring post. The procurement request must be obligated and cite the appropriate obligation, appropriation and allotment

Federal Supply Schedule contracts are indefinite quantity type contracts for numerous types of supplies and services which do not lend themselves to definite quantity consolidated buying or distribution from GSA stores stock. The contractors are obligated, with certain exceptions, to deliver for a definite period stated in the Schedule all supplies and services ordered under the contracts. Most contracts have stated minimum and maximum order limitations and provide for delivery only within the 48 contiguous States and the District of Columbia. § 6-5.5004-2 Applicability.

Purchasing activities of the Department are required to procure supplies and services covered by Mandatory Federal Supply Schedules except that use of these schedules is not mandatory for overseas posts nor is it required for any procurements inside the United States for use outside the United States. (See § 6-1.302-1.)

§ 6-5.5004-3 Availability.

The Federal Supply Schedule Checklist and Guide and needed Federal Supply Schedules and contractors' catalogs and price lists may be obtained by submitting GSA Form 457, Request for Federal Supply Schedules and Contractors' catalogs to General Services Administration, Federal Supply Service, National Buying Division, Washington, D.C. § 6-5.5004-4 Procedure for central supply posts.

(a) Procurement period. Purchases may be made at any time during the period of the contract. Purchase orders must, however, reach the contractor before the expiration date of the contract.

(b) Prescribed forms. Foreign Service Form 455 (Purchase Order, Receiving Report and Voucher) and Foreign Service Form 455a (Purchase Order, Receiving Report and Voucher, Continuation Sheet) shall be used to make purchases under Federal Supply Schedules. These forms are illustrated in Subpart 6-16.9.