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[29 FR 10104, July 24, 1964, as amended at 41 FR 43538, Oct. 1, 1976]

§ 1-1.1005-2 Codes for supplies.

The two-digit code numbers to be used for supplies are as set forth below. The numbers and descriptions used are the same as the 76 assigned commodity groups of the Federal Supply Classification system as shown in the Cataloging Handbook, H 2-1, Federal Supply Classification, Part 1, Groups and Classes. This handbook, together with Cataloging Handbooks H 2-2 (Numeric Index of Classes) and H 2-3 (Alphabetic Index), will be helpful in determining the proper code to be assigned to supply items in synopses messages. These handbooks may be purchased from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402.

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Subsistence.

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Fuels, Lubricants, Oils, and Waxes.

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Nonmetallic Fabricated Materials.

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Nonmetallic Crude Materials.

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(2) Publicized as widely as practicable, consistent with the needs of the individual case, by any or all of the following means: Dissemination prospective bidders on the purchasing office's bidders lists, posting in public places, and other appropriate means.

(d) Each release shall state that the estimate is based on the best information available at the time of publication, the information is subject to modification, is in no way binding on the Government, and that more specific information relating to any individual item or class of items will not be furnished until the proposed procurement is publicized in the Synopsis (see § 1-1.1003), or the solicitation issued.

(e) Each release shall contain the name and address of the purchasing office which will process the procurement.

(f) Modifications to the original release shall be publicized as expeditiously as possible, in the same manner as the original.

(g) Each proposed release shall be coordinated with small business, public information, and public relations personnel, as appropriate.

(h) Each release shall contain, if applicable, a statement to the effect that small business or labor surplus area set-asides may be involved in some of the procurements, and that the determination of the applicability of these factors can be made only at the time that procurement action is initiated.

(i) Each release shall contain the name or description of the item, and the estimated quantity to be purchased by calendar quarter, fiscal year, or other period. It may also contain such additional information as the number of units last purchased, the unit price, and the name of the last supplier.

[35 FR 3070, Feb. 17, 1970]

§ 1-1.1006-4 Commerce Business Daily an

nouncements.

(a) General. In addition to the publication of estimates as provided in § 11.1006-3, further publication, where consistent with the needs of the individual case, shall be accomplished by announcements in the Synopsis reflecting the fact that long-range procurement estimates have been published and are obtainable, on request, from the issuing organization.

(b) Preparation and transmittal. Activities publishing long-range procurement estimates shall, in accordance with § 1-1.1006-4(a), publicize them in the Synopsis by forwarding to the address listed in § 1-1.003-7(a)(2), an announcement reflecting the fact that a long-range procurement estimate has been published and citing the address of the office from which a copy of the estimate can be obtained. Each announcement should identify the commodity and buying office concerned, designate the presumptive date of buying, and state that the estimates are subject to review and are in no way binding on the Government.

[35 FR 3071, Feb. 17, 1970; 35 FR 3284, Feb. 21, 1970]

§ 1-1.1007 Agency responsibility for conformance with synopsizing program. Each agency shall be responsible for full compliance with the synopsizing procedures of this Subpart 1-1.10. Periodic verification should be made by a central authority within the agency to ensure that procuring activities are forwarding all required synopses in a complete, timely, and uniform manner to the Commerce Business Daily. Full cooperation should be extended to Department of Commerce personnel with respect to such monitoring and review of agency synopsizing operations as the Commerce Business Daily staff may undertake.

[35 FR 3071, Feb. 17, 1970]

Subpart 1-1.11-Qualified Products

§ 1-1.1101 Procurement of qualified products.

(a) Whenever qualified products are to be procured only bids or proposals offering products which have been qualified prior to the opening of advertised bids or the award of negotiated contracts shall be considered in making an award. Manufacturers having products which have been qualified but which are not yet included on the qualified products list involved, should be given consideration and an opportunity to offer evidence of such qualification in the time interval before award must be made. (Other instructions concerning establishment of qualified products lists, qualification of products, etc., are contained in General Services Administration Regulation 1-VI, Part 2.)

(b) Whenever procurement of qualified products is to be made by formal advertising, the following provision Ishall be inserted in invitations for bids:

QUALIFIED PRODUCTS

With respect to products described in this invitation as requiring qualification, awards will be made only for such products as have, prior to the time set for opening of bids, been tested and approved for inclusion in the qualified products list identified below. Manufacturers who wish to have a product tested for qualification are urged to communicate with the officer designated below. Manufacturers having products not yet

listed, but which have been qualified, are requested to submit evidence of such qualification with their bids, so that they may be given consideration.

[Identify the Qualified Products List involved and give the name and address of the office with which manufacturers should communicate.]

(c) The provision in § 1-1.1101(b) shall be appropriately modified and used in requests for proposals when procurement of qualified products is to be made by negotiation.

Subpart 1-1.12-Responsible Prospective Contractors

SOURCE: Subpart 1-1.12 appears at 36 FR 17419, Aug. 31, 1971, unless otherwise noted. § 1-1.1200 Scope of subpart.

This subpart prescribes policies concerning the responsibility of prospective contractors, minimum standards for responsible prospective contractors, requirements and procedures for the determination of responsibility, and policies regarding the determination of subcontractor responsibility.

§ 1-1.1201 Applicability.

(a) This subpart applies to all formally advertised or negotiated procurements made by executive agencies from contractors located in the United States, its possessions, or the Commonwealth of Puerto Rico. In addition, it applies to such procurements from contractors in other places, except where inconsistent with the laws and customs of the place where the prospective contractor is located. The subpart also applies to the procurement of automatic data processing equipment and related supplies and equipment by Federal agencies in the judicial and legislative branches, other than the Senate, the House of Representatives, and the Architect of the Capitol, as well as to the procurement of such equipment by executive agencies.

(b) This subpart does not apply to procurements from: (1) other governments, including State and local governments or their instrumentalities, (2) other U.S. Government agencies or their instrumentalities (e.g., the Fed

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eral Prison Industries, Inc.), or (3) the National Industries for the Blind.

§ 1-1.1202 General policy.

(a) Purchases shall be made only from, and contracts shall be awarded only to, responsible prospective contractors (see 41 U.S.C. 253(b) and 10 U.S.C. 2305(c)). A responsible prospective contractor is one who meets the standards set forth in §§ 1-1.1203-1 and 1-1.1203-2 and such special standards as may be prescribed in accordance with § 1-1.1203-3.

(b) The award of a contract to an offeror solely on the basis of the lowest evaluated price is a disservice to the Government if subsequently the contractor defaults, is late in his deliveries, or otherwise performs unsatisfactorily, with the result that the Government incurs additional procurement or administrative costs, and acceptable supplies or services may not be furnished within the time required. Such awards are also unfair to other offerors who are capable of satisfactory performance and tend to discourage them from submitting bids or proposals on future procurements.

(c) While it is important that purchases be made on the basis of offers which are most advantageous to the Government, price and other factors considered, this does not require an award to an offeror solely because he submits the lowest bid or offer. A prospective contractor must affirmatively demonstrate his responsibility and, when necessary, the responsibility of his proposed subcontractors.

(d) A determination of nonresponsibility shall be made by the contracting officer if, after compliance with §§ 11.1205 and 1-1.1206, the information obtained does not indicate clearly that the prospective contractor is responsible. Recent unsatisfactory performance regarding either quality or timeliness of delivery, whether or not default proceedings were instituted, is an example of a problem which the contracting officer must consider and resolve as to its impact on the current procurement prior to making an affirmative determination of responsibility. Where a contracting officer has doubts regarding the productive capacity or financial strength of a prospec

tive contractor which cannot be resolved affirmatively, the contracting officer shall determine that the prospective contractor is nonresponsible. (See § 1-1.708 if a small business concern is involved.)

§ 1-1.1203 Minimum standards for responsible prospective contractors.

§ 1-1.1203-1 General standards.

A prospective contractor must meet the following requirements, unless otherwise provided in this section:

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(a) Have adequate financial sources, or the ability to obtain such resources as required during performance of the contract;

(b) Be able to comply with the required or proposed delivery or performance schedule, taking into consideration all existing business commitments, commercial as well as governmental;

(c) Have a satisfactory record of performance. Contractors who are or have been seriously deficient in current or recent contract performance, when the number of contracts and the extent of deficiency of each are considered (in the absence of evidence to the contrary or circumstances properly beyond the control of the contractor) shall be presumed to be unable to meet this requirement. Past unsatisfactory performance will ordinarily be sufficient to justify a finding of nonresponsibility;

(d) Have a satisfactory record of integrity and business ethics;

(e) Have a certificate of competency and/or a determination of eligibility from SBA if the prospective contractor is a small business concern and is determined to be nonresponsible and/ or ineligible by the contracting officer (see §§ 1-1.701-7 and 1-1.708); and

(f) Be otherwise qualified and eligible to receive an award under applicable laws and regulations; e.g., see Subpart 1-12.8.

[36 FR 17419, Aug. 31, 1971, as amended at 43 FR 26010, June 16, 1978]

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struction (see § 1-18.106), or research and development work (and in other procurements as appropriate), a prospective contractor must:

(1) Have the necessary organization, experience, operational controls, and technical skills, or the ability to obtain them. This standard includes, where appropriate, such elements as adequacy of production control procedures and quality assurance measures, including those applicable to materials produced or services performed by subcontractors (see § 1-1.1203-4); and

(2) Have the necessary production construction, and technical equipment and facilities, or the ability to obtain them. Where a prospective contractor proposes to use the facilities or equipment of another concern, not a subcontractor, or of his affiliate (see § 11.701-2), all existing business arrangements, firm or contingent, for the use of such facilities or equipment shall be considered in determining the ability of the prospective contractor to perform the contract (see also § 1-1.12034).

(b) Procurement of subsistence shall be made only from those sources which in addition to meeting the standards in § 1-1.1203-1, are approved with respect to agency standards and procedures.

§ 1-1.1203-3 Special standards.

When the situation warrants, contracting officers shall develop with the assistance of technical personnel or other specialists, special standards of responsibility to be applicable to a particular procurement or class of procurements. Such special standards may be particularly desirable where a history of unsatisfactory performance has demonstrated the need for insuring the existence of unusual expertise or specialized facilities necessary for adequate contract performance. The resulting standards shall form a part of the solicitation and shall be applicable to all bidders or offerors.

§ 1-1.1203-4 Ability to meet certain minimum standards.

Except to the extent that a prospective contractor proposes to perform the contract by subcontracting (see § 1-1.1206), acceptable evidence of his

"ability to obtain" equipment, facilities, and personnel (see §§ 1-1.12031(a) and 1-1.1203-2) shall be required. If these are not represented in the contractor's current operations, they should normally be supported by a commitment or explicit arrangement, which is in existence at the time the contract is to be awarded, for the rental, purchase, or other acquisition of such resources, equipment, facilities, or personnel.

§ 1-1.1204 Determination of responsibility or nonresponsibility.

§ 1-1.1204-1 Requirement.

(a) No purchase shall be made from, and no contract shall be awarded to, any person or firm unless the contracting officer first makes an affirmative determination that the prospective contractor is responsible within the meaning of § 1-1.1202. Such affirmative determinations shall be documented in accordance with agency procedures. In this regard, however, the signing of a contract may be deemed to be an affirmative determination by the contracting officer that the prospective contractor is responsible with respect to that contract. Supporting documents and reports, including any preaward survey reports (see § 1-1.1205-4) and any applicable SBA certificate of competency (see § 11.708), shall be made a part of the contract file.

(b) Where a bid or offer on which an award would otherwise be made is rejected because the prospective contractor is found to be nonresponsible, a determination of nonresponsibility shall be made, signed, and placed in the file. (See § 1-1.708 if a small business concern is involved.) The determination of nonresponsibility shall set forth the basis of the determination. § 1-1.1204-2 Affiliated concerns.

(a) Affiliated concerns generally shall be considered as separate entities in determining whether the concern which is to perform the contract meets the applicable standards for a responsible prospective contractor. (See § 1-1.701 regarding the use of the term "affiliates" in the definition of a small business concern; see also the

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