(i) Proposed refundable or nonrefundable connection charge, termination liability, or other facilities charge to be paid by the Government, if any, together with a description of the proposed supplier facilities and estimated construction costs entering into the determination of the proposed facilities charge.

(ii) A statement by the supplier that such proposed facilities charge is not in excess of the charge that other customers would be required to pay for like facilities under similar circumstances.

(iii) Description of the proposed Government-owned facilities and estimated construction costs, if any, needed to procure the required services.

(5) Identification of any unusual factors affecting the procurement.

(b) Approval of a proposed procurement specified in § 1-4.411-1(a), after prior review by GSA or the procuring agency, shall be based on written determinations and supporting findings meeting all the following criteria as a minimum in each case:

(1) The proposed supplier is either the sole source of the required service or has been selected after consideration of more than one source of supply as provided in § 1-4.406-1;

(2) The service to be provided is adequate in terms of quantity, quality, and time schedule to meet the procuring agency's needs;

(3) The selected rate schedule is the most advantageous of the rate schedules available to the agency in terms of economy, efficiency, or service;

(4) The proposed facilities charge, if any, is necessary to secure the required service, is based on current cost or pricing data, is reasonable in total amount, and may be certified for payment by the agency; and

(5) The proposed procurement fulfills the requirements of this FPR Subpart 1-4.4.

§ 1-4.412 Capital credits from REA-financed cooperatives.

See § 101-36.3 for methods of processing capital credits issued by Rural Electrification Administration-fi

nanced cooperatives.

[36 FR 13686, July 23, 1971]

Public Law 85-765, as amended, commonly known as the Humane Slaughter Act of 1958 (7 U.S.C. 1901-1906), provides certain restrictions on the procurement of livestock products by Federal agencies and instrumentalities. The Act states the policy of the United States to be that the slaughtering of livestock, and the handling of livestock in connection with slaughter, shall be carried out only by humane methods. In essence, the Act prohibits the purchase by the Federal Government of livestock products produced or processed by any slaughterer or processor which in any of its plants (or in the plants of an affiliated slaughterer or processor) slaughters, or handles in connection with slaughter, livestock by any method other than humane. Further, the Act requires a supplier to make a statement concerning his eligibility under the Act to supply livestock products, the statement to be such that the maker will be subject to prosecution if the statement is false.

§ 1-4.602 Definition of livestock products. "Livestock products" means any article of food, or any article intended for or capable of being used as food, for either humans or animals, which is derived or prepared, in whole or in part, from slaughtered cattle, calves, horses, mules, sheep, swine, or goats. Livestock products do not include (a) supplies, the animal product portion of which is less than 5 percent by weight of the net unit weight, and (b) poultry. § 1-4.603 Exception.

The requirements of this Subpart 14.6 do not supply to contracts for livestock products, executed and to be

performed outside the United States, its possessions, and Puerto Rico.

§ 1-4.604 Procedures.

(a) Proposed suppliers of livestock products shall be informed of the requirements of the Humane Slaughter Act and shall be required to furnish a statement of eligibility in accordance with this § 1-4.604.

(b) Except as provided in (c) and (d) of this § 1-4.604, the Statement of Eligibility (Humane Slaughter Act) set forth in § 1-4.605 shall be included in all invitations for bids, requests for proposals, and other contractual documents for livestock products, and shall be required to be duly signed by the supplier (contractor).

(c) Where small purchases are involved (see Subpart 1-3.6), it will be sufficient if, as a part of the purchase documentation, the supplier (contractor) furnishes, over his signature, only paragraph (a) of said Statement of Eligibility (Humane Slaughter Act).

(d) When frequent purchases are made from the same supplier (contractor) or the contracting officer deems it otherwise appropriate, the Statement of Eligibility (Humane Slaughter Act) may be obtained from the supplier (contractor) at reasonable intervals, but not less often than annually. When such Statement has been obtained, the clause set forth in § 1-4.606 may be inserted, in lieu of said Statement of Eligibility (Humane Slaughter Act), in all contracts or purchase orders issued to the supplier.

§ 1-4.605 Statement of eligibility clause. The following statement of eligibility clause shall be used in accordance with § 1-4.604:

STATEMENT OF ELIGIBILITY (HUMANE
SLAUGHTER ACT).

(a) The supplier (contractor) agrees that livestock products sold to the Government, except products produced or processed from livestock slaughtered outside the United States, its possessions, and Puerto Rico, conform to the requirements of the Humane Slaughter Act of 1958 (7 U.S.C. 1901-1906).

(b) "Livestock products" means any article of food, or any article intended for or capable of being used as food, for either humans or animals, which is derived or prepared, in whole or in part, from slaughtered livestock, namely, cattle, calves, horses, mules, sheep,

swine, or goats. Livestock products do not include (1) supplies, the animal product portion of which is less than 5 percent by weight of the net unit weight, and (2) poultry.

(c) A slaughterer or processor shall be deemed to be affiliated with another slaughterer or processor if it controls, or is controlled by, or is under common control with, such other slaughterer or processor.

(d) Livestock products which conform to the requirements of the Humane Slaughter Act of 1958 are products which have been produced and processed either:

(1) By those slaughterers and processors which, in all of their plants and in all of the plants of slaughterers and processors with which they are affiliated, slaughter, and handle in connection with slaughter, livestock only by methods designated as humane by the Secretary of Agriculture; or

(2) From livestock slaughtered in accordance with the ritual requirements of the Jewish faith or any other religious faith that prescribes a method of slaughter whereby the animal suffers loss of consciousness by anemia of the brain caused by the simultaneous and instantaneous severance of the carotid arteries with a sharp instrument, which ritual requirements have been designated as humane methods of slaughter by the subject Act.

livestock slaughtered outside the United States, its possessions, and Puerto Rico, conform to the requirements of the Humane Slaughter Act of 1958 (7 U.S.C. 1901-1906).

(b) The supplier (contractor) shall have furnished the Government a Statement of Eligibility (Humane Slaughter Act) before award of this contract or issuance of this purchase order, and such Statement is hereby incorporated by reference.

§ 1-4.607 Reporting violations.

Reports of possible violation of a statement of eligibility given in accordance with § 1-4.604 shall be made to the Department of Justice by each agency in accordance with agency procedures.

Subpart 1-4.7 [Reserved]

Subpart 1-4.8-Consulting Services

SOURCE: 45 FR 56805, Aug. 26, 1980, unless otherwise noted.

§ 1-4.800 Scope of subpart.

This subpart implements Office of Management and Budget (OMB) Circular No. A-120 with respect to the responsibilities of the contracting officer when contracting for consultant services. It does not deal with the basic policy and other guidelines for the use of consulting services discussed in the Circular.

§ 1-4.801 General.

OMB Circular No. A-120 places on the contracting officer the responsibility [for determining whether a procurement is for consulting services and for ensuring that certain management controls prescribed by the Circular have been adhered to and documented in the contract file.

§ 1-4.802 Definition.

(a) "Consulting services" means those services of a purely advisory nature relating to the governmental functions of agency administration and management and agency program management. These services are normally provided by persons and/or organizations considered to have knowledge and special abilities that are not generally available within the agency.

(b) The following examples are provide to assist contracting officers in identifying when a consulting services procurement exists:

(1) Advice on or evaluation of agency administration and management, such

as:

(i) Organizational structures, (ii) Reorganization plans, (iii) Management methods, (iv) Zero-base budgeting procedures, (v) Mail-handling procedures, (vi) Records and file organization, (vii) Personnel procedures,

(viii) Discriminatory labor practices, (ix) Agency publications,

(x) Internal policies, directives, orders, manuals, and procedures, and (xi) Management information systems.

(2) Advice on or evaluation of agency program management, such as: (i) Program plans,

(ii) Acquisition strategies, (iii) Assistance strategies,

(iv) Regulations,

(v) Assistance or procurement, solicited or unsolicited technical and cost proposals,

(vi) Legal aspects,

(vii) Economic impacts,
(viii) Program impact, and

(ix) Mission and program analysis. (c) The conduct of research and development and technology assessments are not consulting services. However, contract task assignments for consulting services given to Federally Funded Research and Development Centers are included in the definition.

§ 1-4.803 Contracting requirements.

(a) The contracting officer is responsible for determining whether a requested solicitation or procurement action, regardless of dollar value, is for consulting services. The contracting officer's determination shall be final. Before processing any solicitation or procurement action for consulting services, the contracting officer shall ensure that the following requirements have been adhered to and are completely documented in the official contract file:

(1) Every requirement for consulting services shall be determined appropri

80-130 0-81--23

ate and be fully justified in writing in accordance with agency procedures implementing OMB Circular No. A120. Justifications are required to contain a statement of need and a certification that the consulting services contemplated do not unnecessarily duplicate any previously performed work or services.

(2) Work statements shall be specific and complete and shall specify a fixed period of performance for the service to be provided.

(3) Contracts for consulting services shall be competitively awarded to the maximum extent practical to ensure reasonable costs.

(4) An appropriate disclosure is required of, and warning provisions shall be given to, the prospective performer(s) to avoid conflicts of interest. For example, conflicts of interest may exist when the personal, business, or professional activities of contractors or their employees place them in positions of conflict or apparent conflict between the their private interests and the public interests of the United States with respect to their duties or responsibilities under Government contracts.

(5)(i) All consulting service contracts shall be approved at a level above the organization sponsoring the activity in accordance with agency procedures implementing the approval requirements of OMB Circular No. A-120.

(ii) All consulting service contracts awarded during the fourth quarter of the fiscal year shall be approved in writing at the second level above the organization sponsoring the activity.

(b)(1) Proper administration and monitoring of consultant service contracts shall be emphasized to ensure satisfactory performance.

(2) Contracting officers shall maintain records of surveillance activities and contract administration actions in the official contract files.

§ 1-4.804 Contract data reporting.

Contracting officers shall ensure that awards over $10,000 are identified as consulting service contracts on either the agency's data collection form (which conforms to the requirements of the Federal Procurement Data System) or Standard Form 279,

The unsolicited proposal is a valuable means by which unique or innovative methods or approaches which have originated or developed outside the Government can be made available to Government agencies for use in the accomplishment of their missions. It is offered in the hope that the Government will enter into a contract with the offeror for: (a) research on or development of the methods, approaches, or ideas it contains, or (b) the conduct of the activity or services or the delivery of the items it proposes. It should not be merely an advance proposal for a specific agency requirement which would normally be procured by competitive methods. An unsolicited proposal should be prepared independent of Government supervision. It often represents a substantial investment of time and effort by the offeror. It should present the proposed work in sufficient detail to allow a determination that Government support could be worthwhile and that the proposed work could enhance, benefit, and/or provide valuable input to an agency's research and development mission or to some other area of agency responsibility.

§ 1-4.903 Agency program direction and operation.

Each agency shall adopt and publish policies and procedures which will encourage the submission of unsolicited proposals relating to the agency's mission. Such policies and procedures shall be consistent with the requirements of this Subpart 1-4.9. They shall be developed with an objective to eliminate restraints which discourage the generation and acceptance of innovative ideas through unsolicited proposals.

§ 1-4.904 Definitions.

As used in this Subpart 1-4.9, the following terms have the meanings stated:

(a) "Unsolicited proposal" means a written offer to perform a proposed task or effort, initiated and submitted to the Government by a prospective contractor (offeror) without a solicitation by the Government, with the objective of obtaining a contract. Advertising material, commercial product offerings, contributions, or technical correspondence as defined in paragraphs (b) through (e) of this § 1-4.904 which are submitted to an agency shall not be considered to constitute unsolicited proposals within the intent of this Subpart 1-4.9.

(b) “Advertising material" means material designed to acquaint the Government with a prospective contractor's present off-the-shelf products or potential capabilities, or designed to determine the Government's interest in buying such products.

(c) "Commercial product offerings" means offers of standard commercial products usually sold in substantial quantities to the general public and which the vendor wishes to see introduced in the Government's supply system as an alternate or replacement for an existing supply item.

(d) "Contributions" means concepts, suggestions, or merely ideas presented to the Government for its use, with no indication on the part of the offeror that he will devote any further effort in relation to such concepts, suggestions, or ideas on behalf of the Government.

(e) "Technical correspondence" includes written inquiries regarding

Government interest in research areas, pre-proposal explorations, technical inquiries, and research descriptions.

§ 1-4.905 Advance guidance.

Organizations or individuals who are interested in submitting an unsolicited proposal should be encouraged, before expending extensive effort in preparing a detailed unsolicited proposal or submitting any proprietary information to the Government, to make preliminary inquiries as to the general need for the type of effort contemplated.

(a) Prior contact with agency technical personnel is permissible and should be encouraged with the limited objectives of conveying to the prospective offeror an understanding of the agency mission and needs relative to the type of effort contemplated.

(b) Agencies shall make free written information available to potential offerors regarding policies and procedures for unsolicited proposals. As a minimum, the following information shall be made available to potential offerors.

(1) Definition of an unsolicited proposal, consistent with that set forth in § 1-4.904.

(2) Characteristics of a suitable proposal acceptable for formal evaluation. Also see §§ 1-4.906 and 1-4.910.

(3) Requirements concerning (i) responsible prospective contractors (see Subpart 1-1.12), (ii) organizational conflicts of interest, and (iii) where applicable, cost sharing.

(4) Role of technical correspondence prior to proposal preparation.

(5) Agency points of contact for information regarding advertising, contributions, bidders mailing lists, and other types of transactions frequently misconstrued as unsolicited proposals.

(6) Information regarding unsolicited proposal submission procedures. (7) Information regarding evaluation procedures of the agency.

(8) Sources of information on agency objectives and areas of potential interest suitable for unsolicited proposal submissions.

(9) Instructions to the offeror that he identify proprietary information